Supplementary Explanatory Materials for the Financial Results for the Fiscal Year Ending March 2026 | DAIICHIKOSHO CO.,LTD. (7458) timely disclosure

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

6.5

Year-on-year change in revenue (%)

Wording

Conditional

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Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 202611 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥162,950 million+6.5%

Operating profit¥17,917 million-0.2%

Ordinary income¥18,265 million-0.7%

Net income¥15,889 million-12.6%

Selling, general and administrative expenses¥38,261 million

Operating profit margin

Rate11.0%

Results for the three months of the current quarter

Net Sales

First quarter of the fiscal year ending March 202640,553

Second quarter of the fiscal year ending March 202639,723

Third quarter of the fiscal year ending March 202640,117

Fourth quarter of the fiscal year ended March 202640,534

Full-year earnings forecast

Fiscal year ending March 2027

Net Sales

¥168,700 million

Operating profit

¥18,500 million

Ordinary income

¥18,900 million

Net income

¥12,200 million

Operating profit margin

11 %

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Broadly in line with the earnings forecast

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Revenue for the fiscal year ended March 2026

Increase in product sales

15 Hundreds of millions of yen

Increase in recurring revenue

14 Hundreds of millions of yen

Increase in same-store sales in the karaoke and food-service store business

19 Hundreds of millions of yen

Increase in parking business revenue

22 Hundreds of millions of yen

Operating profit, fiscal year ended March 2026

Increase in gross profit from higher sales

13 Hundreds of millions of yen

Increase in SG&A expenses, including personnel expenses and new-product promotion costs

-11 Hundreds of millions of yen

Increase in gross profit from the parking business

6 Hundreds of millions of yen

Higher personnel expenses

-2 Hundreds of millions of yen

Head Office Relocation Costs

-3 Hundreds of millions of yen

Revenue forecast for the fiscal year ending March 2027

Decrease in product sales

-18 Hundreds of millions of yen

Increase in recurring revenue

23 Hundreds of millions of yen

Existing stores and stores acquired through M&A, etc.

46 Hundreds of millions of yen

Increase in parking business revenue

12 Hundreds of millions of yen

Operating income forecast for the fiscal year ending March 2027

Business karaoke business

Revenue up

5 Hundreds of millions of yen

Cost reduction from a higher recurring-revenue ratio

4 Hundreds of millions of yen

Increase in SG&A expenses, including personnel expenses and goodwill amortization

-8 Hundreds of millions of yen

Karaoke and food-service businesses

Revenue up

35 Hundreds of millions of yen

Increase in cost of sales

-30 Hundreds of millions of yen

Increase in SG&A expenses

-4 Hundreds of millions of yen

Other Businesses

Increase in parking gross profit

4 Hundreds of millions of yen

Increase in SG&A expenses

-2 Hundreds of millions of yen

New initiatives

Shift to a sales policy focused on improving profitability per DAM unit
Expand sales of FREE DAM LIFE, a karaoke machine dedicated to the senior market
Develop the new brands Mushi to Sake Michiru and Sumibi Italian ROBACE
Development of new parking facilities, including through M&A
Open stores in prime locations and areas with concentrated populations
Consolidate head office functions at a single location

Key KPIsA metric the company considers important as a management benchmark.

Operating DAM units22.2 10,000 units
Year on year against the same period last year+0.5%
Equipment rental contracts11.9 10,000 units
Year on year against the same period last year+4.7%
Karaoke locations521 Location
Year on year against the same period last year+18 stores
Food and beverage locations167 Location
Year on year against the same period last year+8 stores
Number of parking facilities4,400 Facility
Year on year against the same period last year+500 facilities
Number of parking spaces51,000 parking spaces
Year on year against the same period last year+7000 spaces

Segment results

Operating margin for the fiscal year ended March 2026

Business karaoke business18.3%

Karaoke and food-service businesses9.3%

Music software business2.6%

Other Businesses13.3%

Earnings forecast for the fiscal year ending March 2027

Business karaoke business

Net Sales

¥65,800 million

Operating profit

¥12,000 million

Karaoke and food-service businesses

Net Sales

¥74,600 million

Operating profit

¥6,800 million

Music software business

Net Sales

¥5,400 million

Operating profit

¥250 million

Other Businesses

Net Sales

¥22,900 million

Operating profit

¥2,850 million

Medium-term management plan targets

ROE12.0% or more

Financial targets

ROE

Actual results for the fiscal year ending March 202613.2%

Medium- to Long-Term Targets12.0% or more

Equity ratio

Actual results for the fiscal year ending March 202656.1%

Number of stores and locations

Karaoke locations

End of period521 Location

Store Openings10 Location

Store closures8 Location

Food service outlets

End of period167 Location

Store Openings20 Location

Store closures12 Location

Parking

End of period4,400 Facility

Annual Dividend

Fiscal year ending March 2026

Annual dividend per share¥67

Forecast for the fiscal year ending March 2027

Annual dividend per share¥68

Payout ratio

PolicyApproximately 50%

Fiscal year ending March 202658%

Acquisition of treasury shares

Policy of conducting purchases as appropriate. The purchase amount, number of shares and period are not disclosed

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	¥162,950 million (YoY +6.5%)
Operating profit	¥17,917 million (YoY -0.2%)
Ordinary income	¥18,265 million (YoY -0.7%)
Net income	¥15,889 million (YoY -12.6%)
Operating profit margin	Rate 11.0% / Year-on-year change (points) Not disclosed
Selling, general and administrative expenses	¥38,261 million
Results for the three months of the current quarter	Net Sales First quarter of the fiscal year ending March 2026 40,553 / Second quarter of the fiscal year ending March 2026 39,723 / Third quarter of the fiscal year ending March 2026 40,117 / Fourth quarter of the fiscal year ended March 2026 40,534
Full-year earnings forecast	Fiscal year ending March 2027 Net Sales ¥168,700 million / Operating profit ¥18,500 million / Ordinary income ¥18,900 million / Net income ¥12,200 million / Operating profit margin 11 %
Self-assessment against the plan	Broadly in line with the earnings forecast
Segment results	Operating margin for the fiscal year ended March 2026 Business karaoke business 18.3% / Karaoke and food-service businesses 9.3% / Music software business 2.6% / Other Businesses 13.3% / Earnings forecast for the fiscal year ending March 2027 Business karaoke business Net Sales ¥65,800 million / Operating profit ¥12,000 million / Karaoke and food-service businesses Net Sales ¥74,600 million / Operating profit ¥6,800 million / Music software business Net Sales ¥5,400 million / Operating profit ¥250 million / Other Businesses Net Sales ¥22,900 million / Operating profit ¥2,850 million
Breakdown of Factors Affecting the Change	Revenue for the fiscal year ended March 2026 Increase in product sales 15 Hundreds of millions of yen / Increase in recurring revenue 14 Hundreds of millions of yen / Increase in same-store sales in the karaoke and food-service store business 19 Hundreds of millions of yen / Increase in parking business revenue 22 Hundreds of millions of yen / Operating profit, fiscal year ended March 2026 Increase in gross profit from higher sales 13 Hundreds of millions of yen / Increase in SG&A expenses, including personnel expenses and new-product promotion costs -11 Hundreds of millions of yen / Increase in gross profit from the parking business 6 Hundreds of millions of yen / Higher personnel expenses -2 Hundreds of millions of yen / Head Office Relocation Costs -3 Hundreds of millions of yen / Revenue forecast for the fiscal year ending March 2027 Decrease in product sales -18 Hundreds of millions of yen / Increase in recurring revenue 23 Hundreds of millions of yen / Existing stores and stores acquired through M&A, etc. 46 Hundreds of millions of yen / Increase in parking business revenue 12 Hundreds of millions of yen / Operating income forecast for the fiscal year ending March 2027 Business karaoke business Revenue up 5 Hundreds of millions of yen / Cost reduction from a higher recurring-revenue ratio 4 Hundreds of millions of yen / Increase in SG&A expenses, including personnel expenses and goodwill amortization -8 Hundreds of millions of yen / Karaoke and food-service businesses Revenue up 35 Hundreds of millions of yen / Increase in cost of sales -30 Hundreds of millions of yen / Increase in SG&A expenses -4 Hundreds of millions of yen / Other Businesses Increase in parking gross profit 4 Hundreds of millions of yen / Increase in SG&A expenses -2 Hundreds of millions of yen
Key KPIs	Indicator name Operating DAM units / Value 22.2 10,000 units / Year on year against the same period last year +0.5%, Indicator name Equipment rental contracts / Value 11.9 10,000 units / Year on year against the same period last year +4.7%, Indicator name Karaoke locations / Value 521 Location / Year on year against the same period last year +18 stores, Indicator name Food and beverage locations / Value 167 Location / Year on year against the same period last year +8 stores, Indicator name Number of parking facilities / Value 4,400 Facility / Year on year against the same period last year +500 facilities, Indicator name Number of parking spaces / Value 51,000 parking spaces / Year on year against the same period last year +7000 spaces
Number of stores and locations	Karaoke locations End of period 521 Location / Store Openings 10 Location / Store closures 8 Location / Food service outlets End of period 167 Location / Store Openings 20 Location / Store closures 12 Location / Parking End of period 4,400 Facility
Medium-term management plan targets	ROE 12.0% or more
Financial targets	ROE Actual results for the fiscal year ending March 2026 13.2% / Medium- to Long-Term Targets 12.0% or more / Equity ratio Actual results for the fiscal year ending March 2026 56.1%
Annual Dividend	Fiscal year ending March 2026 Annual dividend per share ¥67 / Forecast for the fiscal year ending March 2027 Annual dividend per share ¥68 / Interim and Year-End Breakdown Not disclosed
Payout ratio	Policy Approximately 50% / Fiscal year ending March 2026 58%
Acquisition of treasury shares	Policy of conducting purchases as appropriate. The purchase amount, number of shares and period are not disclosed
New initiatives	Shift to a sales policy focused on improving profitability per DAM unit, Expand sales of FREE DAM LIFE, a karaoke machine dedicated to the senior market, Develop the new brands Mushi to Sake Michiru and Sumibi Italian ROBACE, Development of new parking facilities, including through M&A, Open stores in prime locations and areas with concentrated populations, Consolidate head office functions at a single location

Items this document does not state (10)

Gross Profit MarginProgress against full-year forecastUnit price and quantity metricsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue increased due to the launch of the new LIVE DAM WAO! product, strong performance at karaoke stores, increases in the number of equipment rental contracts and operational DAM units, and growth in the parking business. Operating profit was broadly in line with the previous year due to higher costs for new-product promotions, personnel, the head office relocation, depreciation and amortization, and food ingredients. Net income declined because the increase in deferred tax assets and corporate tax adjustments recorded in the previous fiscal year fell away.

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