Interim report
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October 9, 2026 Consolidated Financial Results for the Fiscal Year Ended August 31, 2026 [Japanese GAAP] Company name: KOSHIDAKA HOLDINGS Co., LTD. Listing: Tokyo Stock Exchange Stock code: 2157 URL: https://www.koshidakaholdings.co.jp/en/ Representative: Hiroshi Koshidaka, Representative Director and President Contact: Yoshihito Doi, Senior Executive Director Tel: +81-570-666-425 Scheduled date of Annual General Meeting of Shareholders: November 27, 2026 Scheduled date of filing of Annual Securities Report: November 26, 2026 Scheduled date of payment of dividend: November 30, 2026 Preparation of supplementary materials for financial results: Yes Holding of financial results meeting: Yes (for securities analysts and institutional investors) (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Fiscal Year Ended August 31, 2026 (Sep. 1, 2025 – Aug. 31, 2026) (1) Consolidated results of operations (Percentages are year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % Fiscal year ended Aug. 31, 2026 80,401 15.9 10,771 (5.5) 11,003 (5.2) 6,346 20.7 Fiscal year ended Aug. 31, 2025 69,387 9.7 11,392 12.1 11,598 6.1 5,258 (21.9) Note: Comprehensive income (million yen) Fiscal year ended Aug. 31, 2026: 6,373 (up 12.8%) Fiscal year ended Aug. 31, 2025: 5,651 (down 15.3%) Net income per share Diluted net income per share Return on equity Ordinary profit on total assets Operating profit to net sales Yen Yen % % % Fiscal year ended Aug. 31, 2026 76.31 71.64 16.4 14.9 13.4 Fiscal year ended Aug. 31, 2025 64.01 59.42 16.1 17.8 16.4 Reference: Equity in earnings of affiliates (million yen) Fiscal year ended Aug. 31, 2026: - Fiscal year ended Aug. 31, 2025: - (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of Aug. 31, 2026 78,982 42,506 53.8 489.08 As of Aug. 31, 2025 68,588 35,105 51.2 425.81 Reference: Shareholders’ equity (million yen) As of Aug. 31, 2026: 42,485 As of Aug. 31, 2025: 35,096 (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Million yen Million yen Million yen Million yen Fiscal year ended Aug. 31, 2026 10,626 (12,564) (2,207) 6,466 Fiscal year ended Aug. 31, 2025 12,774 (8,292) (791) 10,439 2. Dividends Dividend per share Total dividends Payout ratio (consolidated) Dividend on equity (consolidated) 1Q-end 2Q-end 3Q-end Year-end Total Yen Yen Yen Yen Yen Million yen % % Fiscal year ended Aug. 31, 2025 - 12.00 - 12.00 24.00 2,010 37.5 6.0 Fiscal year ended Aug. 31, 2026 - 13.00 - 15.00 28.00 2,412 36.7 6.1 Fiscal year ending Aug. 31, 2027 (forecast) - 15.00 - 15.00 30.00 - 3. Consolidated Earnings Forecast for the Fiscal Year Ending August 31, 2027 (Sep. 1, 2026 – Aug. 31, 2027) (Percentages are year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Net income per share Million yen % Million yen % Million yen % Million yen % Yen First half 43,395 11.5 6,002 19.9 5,861 12.2 3,868 (0.4) 43.84 Full year 90,358 12.4 12,604 17.0 12,322 12.0 7,142 12.5 80.95
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* Notes (1) Significant changes in the scope of consolidation during the period : Yes Newly added: 2 (KOSHIDAKA MALAYSIA SDN. BHD.; Standard Corp.: renamed from Koshidaka SP Co., LTD.) Excluded: - (2) Changes in accounting policies and accounting -based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting-based estimates: Yes 4) Restatements: None (3) Number of issued shares (common stock) 1) Number of shares issued at the end of the period (including treasury shares) As of Aug. 31, 2026: 88,225,920 shares As of Aug. 31, 2025: 83,781,480 shares 2) Number of treasury shares at the end of the period As of Aug. 31, 2026: 1,358,763 shares As of Aug. 31, 2025: 1,357,908 shares 3) Average number of shares outstanding during the period Fiscal year ended Aug. 31, 2026: 83,164,164 shares Fiscal year ended Aug. 31, 2025: 82,150,153 shares * The current financial report is not subject to audit by certified public accountants or auditing firms. * Explanation of appropriate use of earnings forecasts, and other special items Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to t he Company’s management at the time the materials were prepared. These materials are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to page 4 of the attachments “1. Overview of Results of Operations, (4) Outlook” for forecast assumptions and notes of caution for usage.
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 1 Contents of Attachments 1. Overview of Results of Operations 2 (1) Results of Operations 2 (2) Financial Position 3 (3) Cash Flows 4 (4) Outlook 4 2. Basic Approach to the Selection of Accounting Standards 4 3. Consolidated Financial Statements and Notes 5 (1) Consolidated Balance Sheet 5 (2) Consolidated Statements of Income and Comprehensive Income 7 (3) Consolidated Statement of Changes in Equity 9 (4) Consolidated Statement of Cash Flows 11 (5) Notes to Consolidated Financial Statements 12 Going Concern Assumption 12 Significant Changes in Shareholders’ Equity 12 Changes in the Scope of Consolidation or Application of the Equity Method 12 Changes in Accounting -Based Estimates 12 Segment and Other Information 13 Business Combinations 15 Revenue Recognition 17 Per-Share Information 17 Material Subsequent Events 17 4. Others 18 (1) Changes in Directors 18
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 2 1. Overview of Results of Operations (1) Results of Operations In the fiscal year that ended in August 2026 (September 1, 2025 to August 31, 2026), the Japanese economy continued to recover gradually as social and economic activities returned to normal, supported by an increase in foreign tourists visiting Japan and improving employment and wage conditions. However, the outlook remains uncertain due t o rising raw material prices and energy costs associated with prolonged geopolitical risks, higher personnel expenses, and the effects of trade policies in major countries. In the karaoke industry, in which Koshidaka Holdings operates, customer needs are becoming increasingly diverse. At the same time, rising recruiting costs and personnel expenses due to intensifying competition for workers, along with higher utility costs and food purchase prices, are putting downward pressur e on earnings. Revising prices and improving operating efficiency have therefore become challenges throughout the industry. In this business environment, the Koshidaka Group continued to pursue its medium -term corporate vision, the Entertainment Infrastructure Plan (EIP), under the slogan “Entertainment as Infrastructure,” to increase corporate value over the medium to long ter m. Business segment performance is as follows. Karaoke The core Karaoke segment continu ed to actively open new stores. During the current fiscal year, there were 38 new store s. Despite efforts to use flexible pricing adjusted to the market conditions of individual stores and offer menus and pricing that match customer preferences, existing store sales were about the same as one year earlier. One reason was the absence of the subs tantial sales generated by major collaboration programs in the previous fiscal year. Earnings were down from one year earlier. Although we continued to optimize operating expenses to limit the impact of higher personnel and utility costs, expenses increased due to investments in upgrading existing stores, rent revisions, digital transformation investments including a new POS system and “E -bo” entertainment boxes, and new initiatives. On November 1, 2025, consolidated subsidiary KOSHIDAKA SP Co., Ltd. (currently Standard Corp.) used an absorption -type split to acquire the karaoke stores and other operations of the former Standard Corp. As a result, 70 karaoke stores operated by this company have been added to the Karaoke segment. One of these stores was opened and four stores were closed after the absorption -type split , resulting in 6 7 karaoke stores operated by the current Standard Corp. at the end of August 2026. Many activities are under way to accomplish the medium -term corporate vision of “Entertainment as Infrastructure.” Major initiatives are provision of additional forms of entertainment to meet a diverse range of needs other than for karaoke , many types of content collaboration, and measures to upgrade and expand recruiting and training activities. In addition, we have been develop ing and making progress in introducing digital transformation to enhance operating efficiency and offer new types of entertainment . One step is the addition of “E -bo” entertainment boxes, a new type of entertainment platform, at all store s in Japan. Regarding our international expansion, we continued to open new stores in Southeast Asia. Four Karaoke Manekineko store s were opened in Malaysia and one was opened in Indonesia during the current fiscal year , and KOSHIDAKA MALAYSIA SDN. BHD. is newly included in the consolidated financial statements . Preparations are under way for opening stores in the U.S and the Philippines. At the end of August 2026, the number of karaoke store s in Japan was 794, 91 more than at the end of the previous fiscal year. The number of overseas karaoke stores was 29 in four countries, consisting of three in South Korea, 19 in Malaysia, four in Thailand and three in Indonesia, five more than at the end of the previous fiscal year. Sales in the Karaoke segment were 78,076 million yen, up 16.3% year on year, and the segment profit was 12,030 million yen, a decrease of 375 million yen, down 3.0% year on year. Real Estate Management The performance of existing and new properties in the Real Estate Management segment, including the major properties such as the AQERU Maebashi commerce and business complex, Shibata 2 -chome Building, MANEKI
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 3 Shimbashi Building and the Fleuret Hanasaki Building, was stable. In October 2025, we sold Hotel Vista Atsugi and recorded a gain on sale of non -current assets under extraordinary income for the current fiscal year. Sales in the Real Estate Management segment were 1,910 million yen, up 2.9% year on year, and the segment profit was 219 million yen, down 1.2% year on year. Other The performance of the five existing food and beverage stores (Gindaco Highball, CAFÉ ECLA) increased steadily . Two food and beverage store s (CAFÉ ECLA) were opened . Earnings were down due to an increase in expenses for opening new stores. Sales in the Other segment were 923 million yen, up 5.1% year on year, and the segment loss was 55 million ye n, a decrease of 92 million yen from the profit in the previous fiscal year . Koshidaka Holdings wrote down the value of certain stores and facilities which had been recording consecutive losses for the fiscal years ended in August 202 5 and 202 6, including those opened during the fiscal year ended in August 202 5. These assets were impaired because their carrying value exceeded the present value of expected future earnings. The impairment loss recorded totaled 2,973 million yen. Overall, the Koshidaka Group (KOSHIDAKA HOLDINGS Co., LTD. and its consolidated subsidiaries) had sales of 80,401 million yen, up 1 5.9% year on year. The operating profit was 10,771 million yen, down 5.5% year on year, the ordinary profit was 11,003 million yen, down 5.1% year on year, and the profit attributable to owners of parent was 6,346 million yen, up 20.7% year on year. (2) Financial Position Financial position at the end of the current fiscal year is as follows. Assets Total assets at the end of the current fiscal year increased 10,393 million yen (1 5.2%) from the end of the previous fiscal year to 78,982 million yen. Current assets decreased 2,066 million yen ( 13.1%) to 13,724 million yen. This was mainly due to a decrease of 3,949 million yen in cash and deposits. Property, plant and equipment increased 4,065 million yen ( 11.8%) to 38,658 million yen. This was mainly due to increases of 2,159 million yen in buildings and structures, net , and 1,678 million yen in vehicles, tools, furniture and fixtures, net . Intangible assets increased 2,720 million yen ( 221.7 %) to 3,948 million yen. This was mainly due to an increase of 2,692 million yen in goodwill . Investments and other assets increased 5,674 million yen ( 33.4%) to 22,650 million yen. This was mainly due to increases of 4,148 million yen in deferred tax assets and 1, 975 million yen in lease and guarantee deposits, while there was a decrease of 619 million yen in long -term loans receivable. Total non -current assets increased 12,460 million yen ( 23.6%) to 65,257 million yen. Liabilities Current liabilities increased 1,637 million yen ( 11.0%) to 16,561 million yen. This was mainly due to increases of 622 million yen in contract liabilities and 402 million yen in income taxes payable . Non-current liabilities increased 1,354 million yen ( 7.3%) to 19,913 million yen. This was mainly due to increase s of 1,003 million yen in lease liabilities , 2, 488 million yen in asset retirement obligations , and 380 million yen in retirement benefit liability , while there was a decrease of 3,000 million yen in c onvertible -bond-type bonds with share acquisition rights . Total liabilities increased 2,992 million yen ( 8.9%) to 36,475 million yen. Net assets
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 4 Net assets increased 7,401 million yen ( 21.1%) to 42,506 million yen. This was mainly due to an increase of 4,370 million yen in retained earnings and an increase of 1,500 million yen each in s hare capital and capital surplus following conversion of bonds with share acquisition rights . (3) Cash Flows Cash and cash equivalents (hereinafter “net cash”) at the end of the current fiscal year decreased 3,973 million yen from the end of the previous fiscal year to 6,466 million yen. The cash flow components during the current fiscal year and the main reasons for changes are as described below. Cash flows from operating activities Net cash provided by operating activities totaled 10,626 million yen, compared with 12,774 million yen provided in the previous fiscal year. Main factors include profit before income taxes of 8,759 million yen, depreciation of 5,451 million yen, impairment losses of 2,973 million yen , income taxes paid of 3,800 million yen and a gain on sales of property, plant and equipment of 1,007 million yen . Cash flows from investing activities Net cash used in investing activities totaled 12,564 million yen, compared with 8,292 million yen used in the previous fiscal year. Main factors include proceeds from sale of property, plant and equipment of 2,267 million yen, purchase of property, plant and equipment of 9,039 million yen, payments for acquisition of businesses of 3,315 million yen, payments of leasehold and guarantee deposits of 1,287 million yen , and p urchase of intangible assets of 741 million yen. Cash flows from financing activities Net cash used in financing activities totaled 2,207 million yen, compared with 791 million yen used in the previous fiscal year. Main factors include proceeds from long -term borrowings of 2,500 million yen, repayments of long - term borrowings of 2,440 million yen , and dividends paid of 2,060 million yen. (4) Outlook Looking ahead, we expect the global business environment to remain highly uncertain due to prolonged geopolitical risks, fluctuations in resource and raw material prices, and exchange rate movements. In this business environment, the Koshidaka Group has been pursuing many initiatives to accomplish the final goal of its medium -term corporate vision, the Entertainment Infrastructure Plan (EIP), in the fiscal year ending in August 2027. For the period aft er the final stage of EIP, which began in the fiscal year ended in August 2025, we have outlined a blueprint for sales of 300 billion yen based on three pillars: further development of the domestic karaoke business (150 billion yen), substantial expansion of overseas operations (100 billion yen), and development of new private entertainment room (PER) formats and related businesses (50 billion yen). We view the fiscal year ending in August 2027 as a year to establish firm confidence in these initiatives and turn this blueprint into a concrete roadmap for our next medium -term business plan. Overall, we forecast consolidated net sales of 90,358 million yen, up 12.4%, operating profit of 12, 604 million yen, up 17.0%, ordinary profit of 12,322 million yen, up 12.0%, and profit attributable to owners of parent of 7,142 million yen, up 12.5%, for the fiscal year ending August 31, 202 7. The consolidated earnings forecast is based on information available to Koshidaka Holdings as of the date of the release of this document . Actual results may differ from these forecasts due to various future factors . 2. Basic Approach to the Selection of Accounting Standards The Koshidaka Group will continue to prepare consolidated financial statements in accordance with generally accepted accounting principles in Japan for the time being to permit comparisons with prior years and with the financial data of other companies. We will consider the use of International Financial Reporting Standards (IFRS)
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 5 in the future based on changes in foreign ownership of our stock, the growth of our overseas operations and other factors. 3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet (Thousands of yen) FY8/25 (As of Aug. 31, 202 5) FY8/26 (As of Aug. 31, 202 6) Assets Current assets Cash and deposits 10,487,331 6,538, 290 Notes and accounts receivable -trade 1,402,172 2,282,819 Merchandise 158,590 172,692 Raw materials and supplies 573,707 912,140 Other 3,172,526 3,835,019 Allowance for doubtful accounts (2,574) (16,096 ) Total current assets 15,791,753 13,724,865 Non-current assets Property, plant and equipment Buildings and structures 48,319,441 54,398,722 Accumulated depreciation (23,711,806) (27,631,144 ) Buildings and structures, net 24,607,634 26,767,578 Vehicles, tools, furniture and fixtures 18,050,994 21,524,302 Accumulated depreciation (15,224,255) (17,019,145) Vehicles, tools, furniture and fixtures, net 2,826,738 4,505,157 Land 6,957,299 7,368,145 Construction in progress 201,332 17,413 Total property, plant and equipment 34,593,004 38,658,294 Intangible assets Goodwill 62 2,692,971 Software 944,485 872,600 Other 282,911 382,590 Total intangible assets 1,227,459 3,948, 162 Investments and other assets Investment securities 910,306 976,246 Long-term loans receivable 2,574,932 1,955,737 Long-term prepaid expenses 603,308 601,738 Leasehold and guarantee deposits 8,686,056 10,661,845 Deferred tax assets 4,202,547 8,351,153 Other 433,911 440,673 Allowance for doubtful accounts (434,514) (336,683 ) Total investments and other assets 16,976,548 22,650,711 Total non -current assets 52,797,011 65,257,168 Total assets 68,588,765 78,982,033
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 6 (Thousands of yen) FY8/25 (As of Aug. 31, 202 5) FY8/26 (As of Aug. 31, 202 6) Liabilities Current liabilities Notes and accounts payable -trade 603,553 690,679 Current portion of long -term borrowings 1,336,240 1,214,876 Accounts payable -other 3,214,723 3,214, 070 Accrued expenses 2,109,040 2,343,169 Income taxes payable 2,023,058 2,425,507 Provision for bonuses 438,284 449,468 Deposits received 581,627 431,712 Contract liabilities 3,739,870 4,362,019 Other 877,535 1,429,982 Total current liabilities 14,923,933 16,561,484 Non-current liabilities Convertible -bond-type bonds with share acquisition rights 3,000,000 - Long-term borrowings 7,188,820 7,369,779 Retirement benefit liability - 380,025 Lease liabilities - 1,003,023 Deferred tax liabilities 428,178 499,138 Asset retirement obligations 6,775,082 9,263,451 Other 1,167,194 1,398,372 Total non -current liabilities 18,559,275 19,913,789 Total liabilities 33,483,209 36,475,274 Net assets Shareholders’ equity Share capital 2,570,257 4,070,257 Capital surplus 3,802,786 5,302,786 Retained earnings 29,407,342 33,778,235 Treasury shares (676,177) (677,058) Total shareholders’ equity 35,104,209 42,474,220 Accumulated other comprehensive income Valuation difference on available -for-sale securities 95,924 151,005 Foreign currency translation adjustment (103,199) (139,806 ) Total accumulated other comprehensive income (7,274) 11,199 Share acquisition rights 8,622 8,622 Non-controlling interests - 12,716 Total net assets 35,105,556 42,506,752 Total liabilities and net assets 68,588,765 78,982,033
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 7 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income (Thousands of yen) FY8/25 (Sep. 1, 202 4 – Aug. 31, 2025) FY8/26 (Sep. 1, 202 5 – Aug. 31, 2026) Net sales 69,387,151 80,401,539 Cost of sales 51,014,093 61,151,106 Gross profit 18,373,057 19,250,432 Selling, general and administrative expenses 6,980,113 8,478,960 Operating profit 11,392,944 10,771,472 Non-operating income Interest and dividend income 38,374 55,519 Foreign exchange gains - 307,640 Cancellation income 100,137 65,000 Reversal of allowance for doubtful accounts 120,862 - Other 118,079 163,980 Total non -operating income 377,453 592,140 Non-operating expenses Interest expenses 80,610 155,033 Commission expenses 500 515 Foreign exchange losses 18,495 - Provision of allowance for doubtful accounts - 59,837 Store removal costs 5,225 75,649 Other 67,446 69,415 Total non -operating expenses 172,278 360,450 Ordinary profit 11,598,119 11,003,161 Extraordinary income Gain on sale of non -current assets 1,715 1,007,287 Total extraordinary income 1,715 1,007,287 Extraordinary losses Loss on retirement of non -current assets 65,780 34,457 Impairment losses 3,389,550 2,973,845 Litigation settlement - 185,000 Loss on valuation of investment securities 424,924 57,802 Loss on liquidation of subsidiaries 463,890 - Total extraordinary losses 4,344,146 3,251,104 Profit before income taxes 7,255,688 8,759,345 Income taxes -current 3,626,960 4,187,513 Income taxes for prior periods - 835,949 Income taxes -deferred (1,630,089) (2,619,276 ) Total income taxes 1,996,871 2,404,187 Profit 5,258,817 6,355,157 Profit attributable to non -controlling interests - 8,796 Profit attributable to owners of parent 5,258,817 6,346,361
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 8 Consolidated Statement of Comprehensive Income (Thousands of yen) FY8/25 (Sep. 1, 202 4 – Aug. 31, 2025) FY8/26 (Sep. 1, 202 5 – Aug. 31, 2026) Profit 5,258,817 6,355,157 Other comprehensive income Valuation difference on available -for-sale securities (532) 55,081 Foreign currency translation adjustment 393,674 (36,607 ) Total other comprehensive income 393,142 18,474 Comprehensive income 5,651,959 6,373,632 Comprehensive income attributable to Comprehensive income attributable to owners of parent 5,651,959 6,363,883 Comprehensive income attributable to non -controlling interests - 9,748
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 9 (3) Consolidated Statement of Changes in Equity FY8/2 5 (Sep. 1, 202 4 – Aug. 31, 202 5) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 2,070,257 3,302,786 26,049,100 (675,710) 30,746,433 Changes during period Issuance of shares due to conversion of convertible - bond-type bonds with share acquisition rights 500,000 500,000 1,000,000 Dividends of surplus (1,879,450) (1,879,450) Profit attributable to owners of parent 5,258,817 5,258,817 Purchase of treasury shares (466) (466) Change in scope of consolidation (21,124) (21,124) Net changes in items other than shareholders’ equity Total changes during period 500,000 500,000 3,358,242 (466) 4,357,775 Balance at end of period 2,570,257 3,802,786 29,407,342 (676,177) 35,104,209 (Thousands of yen) Accumulated other comprehensive income Share acquisition rights Non- controlling interests Total net assets Valuation difference on available - for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Balance at beginning of period 96,456 (496,873) (400,416) 8,622 - 30,354,638 Changes during period Issuance of shares due to conversion of convertible - bond-type bonds with share acquisition rights 1,000,000 Dividends of surplus (1,879,450) Profit attributable to owners of parent 5,258,817 Purchase of treasury shares (466) Change in scope of consolidation (21,124) Net changes in items other than shareholders’ equity (532) 393,674 393,142 - - 393,142 Total changes during period (532) 393,674 393,142 - - 4,750,917 Balance at end of period 95,924 (103,199) (7,274) 8,622 - 35,105,556
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 10 FY8/2 6 (Sep. 1, 202 5 – Aug. 31, 202 6) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 2,570,257 3,802,786 29,407,342 (676,177) 35,104,209 Changes during period Issuance of shares due to conversion of convertible - bond-type bonds with share acquisition rights 1,500,000 1,500,000 3,000,000 Dividends of surplus (2,060,589) (2,060,589) Profit attributable to owners of parent 6,346,361 6,346,361 Purchase of treasury shares (880) (880) Change in scope of consolidation 85,120 85,120 Net changes in items other than shareholders’ equity Total changes during period 1,500,000 1,500,000 4,370,892 (880) 7,370,011 Balance at end of period 4,070,257 5,302,786 33,778,235 (677,058) 42,474,220 (Thousands of yen) Accumulated other comprehensive income Share acquisition rights Non- controlling interests Total net assets Valuation difference on available - for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Balance at beginning of period 95,924 (103,199) (7,274) 8,622 - 35,105,556 Changes during period Issuance of shares due to conversion of convertible - bond-type bonds with share acquisition rights 3,000,000 Dividends of surplus (2,060,589) Profit attributable to owners of parent 6,346,361 Purchase of treasury shares (880) Change in scope of consolidation 85,120 Net changes in items other than shareholders’ equity 55,081 (36,607 ) 18,474 - 12,716 31,190 Total changes during period 55,081 (36,607 ) 18,474 - 12,716 7,401,202 Balance at end of period 151,005 (139,806 ) 11,199 8,622 12,716 42,506,758
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 11 (4) Consolidated Statement of Cash Flows (Thousands of yen) FY8/25 (Sep. 1, 202 4 – Aug. 31, 202 5) FY8/26 (Sep. 1, 202 5 – Aug. 31, 202 6) Cash flows from operating activities Profit before income taxes 7,255,688 8,759,345 Depreciation 4,665,908 5,451, 847 Impairment losses 3,389,550 2,973,845 Amortization of goodwill 383 184,512 Increase (decrease) in provision for bonuses 82,488 (85,031) Increase (decrease) in allowance for doubtful accounts (150,843) 31,218 Interest and dividend income (38,374) (55,519) Interest expenses 80,610 155,033 Loss (gain) on sale of property, plant and equipment (1,715) (1,007,287) Decrease (increase) in trade receivables (254,620) (641,414) Decrease (increase) in inventories (199,990) (287,410 ) Decrease (increase) in accounts receivable -other 67,526 (155,059) Increase (decrease) in trade payables 55,958 (7,580) Litigation settlement - 185,000 Increase (decrease) in accounts payable -other, and accrued expenses 422,337 46,908 Other, net 1,191,963 (10,708) Subtotal 16,566,872 15,537,697 Interest and dividends received 38,374 55,519 Interest paid (70,098) (145,453) Litigation settlement paid - (185,000) Income taxes refund (paid) (3,760,771) (3,800,600 ) Income taxes refund (paid) for prior periods - (835,949 ) Net cash provided by (used in) operating activities 12,774,376 10,626,214 Cash flows from investing activities Purchase of property, plant and equipment (6,304,579) (9,039,683) Proceeds from sale of property, plant and equipment 1,344 2,267, 377 Purchase of intangible assets (589,819) (741,384) Purchase of investment securities (444,124) (70,955) Proceeds from sale of investment securities 13,000 19,460 Payments of leasehold and guarantee deposits (729,210) (1,287,874) Proceeds from refund of leasehold and guarantee deposits 238,866 193,969 Loan advances (411,568) (614,108) Proceeds from collection of loans receivable 48,465 24,732 Payments for acquisition of businesses - (3,315,975) Purchase of shares of non -consolidated subsidiaries (115,157) - Other, net (89) (10) Net cash provided by (used in) investing activities (8,292,873) (12,564, 451) Cash flows from financing activities Proceeds from long -term borrowings 3,000,000 2,500,000 Repayments of long -term borrowings (1,911,240) (2,440,405) Repayments of lease liabilities - (205,297) Purchase of treasury shares (466) (880) Dividends paid (1,879,450) (2,060,589) Net cash provided by (used in) financing activities (791,157) (2,207,172) Effect of exchange rate change on cash and cash equivalents (4,542) 78,420 Net increase (decrease) in cash and cash equivalents 3,685,804 (4,066, 989) Cash and cash equivalents at beginning of period 6,750,659 10,439,415 Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation 2,951 93,611 Cash and cash equivalents at end of period 10,439,415 6,466, 037
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 12 (5) Notes to Consolidated Financial Statements Going Concern Assumption Not applicable. Significant Changes in Shareholders’ Equity Due to the issuance of new shares following the conversion of convertible -bond-type bonds with share acquisition rights, share capital and legal capital surplus increased 1 ,500,000 thousand yen each during the fiscal year end ed August 31, 2026. As a result, share capital and capital surplus were 4,070,257 thousand yen and 5,302,786 thousand yen, respectively, as of August 31, 2026. Changes in the Scope of Consolidation or Application of the Equity Method Important changes in the scope of consolidation KOSHIDAKA MALAYSIA SDN.BHD. , which was a non -consolidated subsidiary in the previous fiscal year, was included in the scope of consolidation in the first quarter of the current fiscal year because of the increas ed significance of this company. In the first quarter of the current fiscal year, newly established KOSHIDAKA SP Co., Ltd. was included in the scope of consolidation. This new company received the karaoke store and other operations of former Standard Corp. on November 1, 2025 by using an absorption -type split and was subsequently renamed as the new Standard Corp. Changes in Accounting -Based Estimates Change in estimates of asset retirement obligations At the end of the current fiscal year, changes were made to estimates for costs related to the restoration of real estate to its original state under asset retirement obligations associated with real estate lease agreements, based on new information obtained, including recent actual restoration costs. As a result of these changes in estimates, the balance of asset retirement obligations increased by 1, 487,135 thousand yen from the amount before the changes. These changes in estimates increased gross profit, operating profit, ordinary profit and profit before income taxes for the current fiscal year by 498,556 thousand yen each.
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 13 Segment and Other Information Segment information 1. Overview of reportable segments (1) Method of determining the reportable segments Segments used for financial reporting are the Koshidaka Group’s constituent units for which separate financial information is available and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of resourc es and evaluating performance. The Koshidaka Group uses a holding company structure. Under Koshidaka Holdings, a holding company, each subsidiary determines comprehensive strategies for services they provide and develops business operations. Consequently, business operations are divided into segments based on services provided by each subsidiary, resulting in the following three reportable segments. (2) Services by each reportable segment 1) Karaoke is the operations of the network of karaoke facilities. 2) Real Estate Management is the leasing and management of real estate. 3) Other is the operation s of food and beverage stores and other format stores . 2. Calculation methods for net sales, profit/loss, assets, liabilities and other items for each reportable segment The accounting methods for reportable segments are generally the same as accounting policies used in the preparation of consolidated financial statements. Profits for reportable segments are operating profit and inter -segment sales and transfers are based on market prices. 3. Information related to net sales, profit/loss, assets, liabilities and other items for each reportable segment and breakdown of revenue FY8/2 5 (Sep. 1, 202 4 – Aug. 31, 202 5) (Thousands of yen) Reportable segment Total Adjustment (Notes 1 and 2) Amounts shown on consolidated financial statements (Note 3) Karaoke Real Estate Management Other Net sales Revenue from contracts with customers 67,162,793 293,289 879,122 68,335,206 - 68,335,206 Other revenue - 1,051,945 - 1,051,945 - 1,051,945 External sales 67,162,793 1,345,234 879,122 69,387,151 - 69,387,151 Inter-segment sales and transfers - 511,929 - 511,929 (511,929) - Total 67,162,793 1,857,164 879,122 69,899,081 (511,929) 69,387,151 Segment profit 12,405,661 222,416 37,442 12,665,520 (1,272,576) 11,392,944 Segment assets 46,559,520 12,562,572 219,601 59,341,694 9,247,070 68,588,765 Other items Depreciation 4,070,940 493,545 36,121 4,600,606 65,301 4,665,908 Amortization of goodwill 383 - - 383 - 383 Impairment loss es 3,013,532 353,218 22,799 3,389,550 - 3,389,550 Increase in property, plant and equipment and intangible assets 8,550,836 45,429 12,265 8,608,532 - 8,608,532 Notes: 1. The -1,272,576 thousand yen adjustment to segment profit mainly includes general and administrative expenses that cannot be attributed to reportable segments. 2. The 9,2 47,070 thousand yen adjustment to segment assets includes corporate assets that are not allocated to any of the reportable segments. Corporate assets mainly include excess working capital (bank deposits) and assets related to the administrative division. 3. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income.
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 14 FY8/2 6 (Sep. 1, 202 5 – Aug. 31, 202 6) (Thousands of yen) Reportable segment Total Adjustment (Notes 1 and 2) Amounts shown on consolidated financial statements (Note 3) Karaoke Real Estate Management Other Net sales Revenue from contracts with customers 78,076,887 286,887 923,773 79,287,548 - 79,287,548 Other revenue - 1,113,990 - 1,113,990 - 1,113,990 External sales 78,076,887 1,400,878 923,773 80,401,539 - 80,401,539 Inter-segment sales and transfers - 509,753 - 509,753 (509,753) - Total 78,076,887 1,910,631 923,773 80,911,292 (509,753) 80,401,539 Segment profit (loss) 12,030,297 219,706 (55,529) 12,194,474 (1,423, 002) 10,771,472 Segment assets 60,020,198 11,037,519 348,427 71,406,144 7,575,888 78,982,033 Other items Depreciation 4,921, 004 421,119 48,106 5,390,230 61,616 5,451, 847 Amortization of goodwill 184,512 - - 184,512 - 184,512 Impairment loss es 2,944,185 - 29,659 2,973,845 - 2,973,845 Increase in property, plant and equipment and intangible assets 12,229,016 1,263,235 222,527 13,714,778 21,181 13,735,960 Notes: 1. The -1,423, 002 thousand yen adjustment to segment profit (loss) mainly includes general and administrative expenses that cannot be attributed to reportable segments. 2. The 7,575,888 thousand yen adjustment to segment assets includes corporate assets that are not allocated to any of the reportable segments. Corporate assets mainly include excess working capital (bank deposits) and assets related to the administrative division. 3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the consolidated statement of income. Related information FY8/2 5 (Sep. 1, 202 4 – Aug. 31, 202 5) 1. Information by product or service This information is omitted because the same information is presented in segment information. 2. Information by region (1) Net sales This information is omitted because external sales in Japan exceeded 90% of net sales on the consolidated statement of income . (2) Property, plant and equipment This information is omitted because property, plant and equipment in Japan exceeded 90% of property, plant and equipment on the consolidated balance sheet. 3. Information by major client This information is omitted because no specific external client accounts for 10% or more of net sales on the consolidated statement of income. FY8/2 6 (Sep. 1, 202 5 – Aug. 31, 202 6) 1. Information by product or service This information is omitted because the same information is presented in segment information. 2. Information by region (1) Net sales This information is omitted because external sales in Japan exceeded 90% of net sales on the consolidated statement of income . (2) Property, plant and equipment This information is omitted because property, plant and equipment in Japan exceeded 90% of property, plant and equipment on the consolidated balance sheet.
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 15 3. Information by major client This information is omitted because no specific external client accounts for 10% or more of net sales on the consolidated statement of income. Information related to impairment losses on non -current assets for each reportable segment FY8/2 5 (Sep. 1, 202 4 – Aug. 31, 202 5) This information is omitted because the same information is presented in segment information. FY8/2 6 (Sep. 1, 202 5 – Aug. 31, 202 6) This information is omitted because the same information is presented in segment information. Information related to goodwill amortization and the unamortized balance for each reportable segment FY8/2 5 (Sep. 1, 202 4 – Aug. 31, 202 5) (Thousands of yen) Karaoke Real Estate Management Other Elimination or corporate Total Goodwill amortization 383 - - - 383 Balance at end of period 62 - - - 62 FY8/2 6 (Sep. 1, 202 5 – Aug. 31, 202 6) (Thousands of yen) Karaoke Real Estate Management Other Elimination or corporate Total Goodwill amortization 184,512 - - - 184,512 Balance at end of period 2,692,971 - - - 2,692,971 Information related to gain on bargain purchase for each reportable segment FY8/2 5 (Sep. 1, 202 4 – Aug. 31, 202 5) Not applicable. FY8/2 6 (Sep. 1, 202 5 – Aug. 31, 202 6) Not applicable. Business Combinations Business acquisition by using an absorption -type split The Board of Directors of Koshidaka Holdings and consolidated subsidiary KOSHIDAKA SP Co., LTD. approved resolutions on September 12, 2025 to use an absorption -type split for the acquisition of the karaoke stores and other businesses of Standard Corp. The acquisition took place on November 1, 2025. KOSHIDAKA SP signed a contract with Standard on September 12, 2025 for the absorption -type split. 1. Summary of business combination (1) Company and business activities Name: Standard Corp. Acquired businesses: Karaoke stores, complex cafés and restaurants (73 store s) (2) Main reasons for acquisition The medium -term corporate vision of Koshidaka Holdings is “Entertainment as Infrastructure,” which has the goal of positioning entertainment as part of the social infrastructure with the goal of being a source of enjoyment and well-being in the lives of pe ople worldwide. Key initiatives for accomplishing this goal include the operation and expansion of a nationwide network of Karaoke Manekineko stores. There were 50 new stores during the previous fiscal year, raising the total in Japan to 703. Koshidaka Holdings is currently in the final stage of the Entertainment as Infrastructure Plan, which has the goal of sales of 100 billion yen in the fiscal year ending in August 31, 2027 as the speed of adding new stores increases. The acquisition of the JOYSOUND brand of Standard by using an
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 16 absorption -type split is expected to further increase the effectiveness of measures by the Koshidaka Group for sales growth. Expected benefits include the ability to combine expertise of Koshidaka Holdings acquired since its inception with the knowhow of S tandard, more efficient analysis and business operations based on the characteristics of customers, and the ability to use differentiated brands and combine services. In addition to the larger scale of operations, this acquisition is expected to create a s tronger infrastructure for business operations and raise the speed of strategies for growth. Due to these expected benefits, we believe this acquisition will contribute to the consistent growth of corporate value. (3) Date of the absorption -type split November 1 , 2025 (4) Method used for the absorption -type split Business operations divested by Standard were absorbed by KOSHIDAKA SP. (5) Status after the absorption -type split There was no change in business activities, capital and fiscal year of KOSHIDAKA SP due to this absorption -type split. However, change was made in this company’ s name, location and representative on November 1, 2025 as follows. (Details after the change) Name: Standard Corp. Location: 2-5-12, Konan, M inato-ku, Tokyo Representative: Katsuaki Kobayashi 2. Period of the acquired compan y’s performance included in the consolidated statements of income From November 1, 2025 to August 31, 2026 3. Acquisition cost of the acquired compan y and breakdown by type of consideration Payment for the acquisition: Cash 3,500 million yen Acquisition cost: 3,500 million yen 4. Detail and amount of major expenses related to the acquisition Advisory fee and other expenses : 74,072 thousand yen 5. Goodwill resulting from the acquisition (1) Value of goodwill 2,877,421 thousand yen The value of goodwill was calculated tentatively because the allocation of the acquisition cost had not been finalized at the end of the first six months of FY8/26. However, the allocation of the acquisition cost was finalized at the end of the current con solidated fiscal year. As a result of the finalization of the tentatively calculated value of goodwill, compared to the end of the first six months of FY8/26, the recognized amount of goodwill decreased by 104,256 thousand yen, the "Other" item under intan gible assets increased by 159,000 thousand yen, and deferred tax assets decreased by 54,743 thousand yen. (2) Source of goodwill The source is primarily the expectation of excess earnings power resulting from business growth. (3) Amortization method and amortization period of goodwill
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 17 Goodwill is amortized using the straight -line method over 13 years. 6. Detail and amount of acquired assets and liabilities as of the date of acquisition Current assets : 777,526 thousand yen Non-current assets : 2,904,819 thousand yen Total assets : 3,682,345 thousand yen Current liabilities : 1,181,203 thousand yen Non-current liabilities : 1,982,819 thousand yen Total liabilities : 3,164,02 3 thousand yen Revenue Recogniti on Information related to breakdown of revenue from contracts with customers is described in the Segment and Other Information section. Per-Share Information (Yen) FY8/25 (Sep. 1, 202 4 – Aug. 31, 202 5) FY8/26 (Sep. 1, 202 5 – Aug. 31, 202 6) Net assets per share 425.81 Net assets per share 489.08 Net income per share 64.01 Net income per share 76.31 Diluted net income per share 59.42 Diluted net income per share 71.64 Notes: 1. The Company’s stock held by the employee stock ownership plan (J -ESOP) is included in treasury shares and is thus deducted from the number of shares issued at the end of each fiscal year that was used to calculate net assets per share (1,355,680 shares as of August 31, 202 5 and 1,355, 680 shares as of August 31, 202 6). In addition, the average number of treasury shares outstanding during the period, which was deducted from the calculation of net income per share, was 1,355,680 shares for FY8/2 5 and 1,355,680 shares for FY8/2 6. 2. The basis for calculating net income per share and diluted net income per share is as follows: (Thousands of yen) FY8/25 (Sep. 1, 202 4 – Aug. 31, 202 5) FY8/26 (Sep. 1, 202 5 – Aug. 31, 202 6) Net income per share Profit attributable to owners of parent 5,258,817 6,346,361 Amounts not available to common shareholders - - Profit attributable to owners of parent available to common stock 5,258,817 6,346,361 Average number of common shares outstanding during the period (Shares) 82,150,153 83,164,164 Diluted net income per share Adjustment to profit attributable to owners of parent 2,107 1,017 [of which, interest expenses (after deducting amount equivalent to tax)] [2,107] [1,017] Increase in the number of common shares (shares) 6,389,891 5,442,395 [of which convertible -bond-type bonds with share acquisition rights (shares) ] [4,616,515] [3,631,858 ] [of which share acquisition rights (shares)] [1,773,376] [1,810,537] Summary of dilutive shares not included in the calculation of diluted net income per share since there was no dilutive effect - Material Subsequent Events Not applicable.
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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/26 18 4. Others (1) Changes in Directors 1) Change in Representative Director Not applicable. 2) Changes in other Directors - Candidates for Director Director and Operating Officer of Group CF Hiromichi Kikuchi Director and Operating Officer of Group HR Ryo Miura Director and Operating Officer of Group Business Strategy Satoshi Koshidaka 3) Scheduled date of appointment November 27, 202 6 This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an E nglish translation. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.