DAIICHIKOSHO

CO.,

LTD.

FY2010, the year ending March 31, 2011

Flash Report on the Consolidated Results for the Interim Period Ended
June 30, 2010
August 9, 2010

Company Name: DAIICHIKOSHO CO., LTD.
Code Number: 7458
(URL http://www.dkkaraoke.co.jp)
Stock Exchange Listing: JASDAQ
Representative: Tadahiko Hoshi, Chairman and CEO
Contact: Shigeki Kobayashi, General Manager, Accounting Department, Administration Headquarters
Phone: (03) 3280-2151
Scheduled Date to Submit the Quarterly Securities Report: August 11, 2010
Start Date for Dividend Payment: ―(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Interim Period Ended June 2010 (from April 1, 2010, to June 30,2010)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales¥ Million
Interim Period ended
June 2010
Interim Period ended
June 2009

Operating income¥ Million%%

30,538

1.3

4,941

27.9

5,162

24.9

30,137

(2.4)

3,862

1.5

4,134

2.8

Net income
Interim Period ended
June 2010
Interim Period ended
June 2009%Ordinary income¥ Million

Net income per share¥Fully diluted net income
per share¥¥ Million%

3,054

10.2

46.37

―2,772

15.0

41.09

―(2) Consolidated financial position
Total assets¥ Million

Net assets¥ Million

Interim Period ended
123,961
85,235June 2010
Year ended March 2010
125,776
84,054(Reference) Shareholders’ equity
Interim Period ended June 2010: ¥84,385 million
Year ended March 2010: ¥83,226 million

1Equity ratio%

Net assets per share¥

68.1

1,281.13

66.2

1,263.54

DAIICHIKOSHO

CO.,

LTD.

2. Dividend
First Quarter

Second Quarter
Yen
20.00

Dividend per share
Third Quarter

Year ended March 2010
—Year ending March 2011―
Year ending March 2011
25.00
(forecast)
Note: Revision of dividend forecast during the period under review: No—Year-end
Yen
30.00

―

30.00

AnnualYen
50.00
55.00

3. Forecast Consolidated Performance for FY2010, the Year Ending March 31, 2011 (from April 1,2010, to March 31, 2011)(Percentage figures indicate increase/decrease from a year earlier: The percentages for full-year forecasts mean theincrease/decrease from the end of the previous year, and the half-year forecast percentages represent theincrease/decrease from the end of the previous interim term.)
Net salesOperating income
Ordinary income¥ Million%¥ Million%¥ Million%
Six months ending
63,100
1.0
9,200
8.2
9,700
7.1
September 30, 2010
Year ending March 31,127,700
1.9
17,200(1.4)
18,100(1.7)
2011 (full year)
Net income¥ Million

Net income per share¥%

Six months ending
5,250(7.6)
79.71
September 30, 2010
Year ending March 31,10,100(5.8)
153.342011 (full year)
Note: Revision of forecast consolidated performance during the period under review: No

4. Other(1) Change in important subsidiaries during the period under review (Change in specific subsidiaries causing achange in the scope of consolidation): No(2) Adoption of simplified accounting methods and special accounting methods for quarterly consolidated financial
statements: Yes(3) Change in accounting principals, procedure and presentation methods for preparation of quarterly consolidated
financial statements
1) Changes following a revision of accounting standards: Yes
2) Other changes: No(4) Number of common shares issued
1) Number of shares issued (including treasury stock):
Interim period ended June 2010: 66,670,596 sharesYear ended March 2010: 66,670,596 shares
2) Number of shares of treasury stock:
Interim period ended June 2010: 802,735 sharesYear ended March 2010: 802,735 shares
3) Average number of shares during the period:
Interim period ended June 2010: 65,867,861 sharesInterim period ended June 2009: 67,468,010 shares* Explanation for the appropriate use of performance forecasts and other special notes:
These projected performance figures are based on information available to the Company’s management at the timeof preparing this report. There are many uncertain factors inherent in forecasting, and there might be cases in which
actual results differ from forecast values.

2DAIICHIKOSHO

CO.,

LTD.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)

Current interim period(As of June 30, 2010)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities, net
Land
Other, net
Total property, plant and equipment
Intangible assetsGoodwill
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Negative goodwill
Other
Total noncurrent liabilities
Total liabilities

3FY2009(As of March 31, 2010)
Condensed

28,955
6,993
4,588
7,246(439)47,34334,170
7,367
4,371
5,477
(461)
50,926

7,155
13,59418,185
7,470
46,406

6,859
13,393
18,213
7,520
45,986

679
7,544
8,223

－
7,420
7,420

13,141
9,254(409)
21,986
76,617
123,961

13,116
8,778(453)
21,441
74,849125,776

4,157
6,513
2,178
488
10,69524,033

3,714
6,792
5,379
1,192
9,787
26,866

7,597
3,165
2,034
269
1,625
14,692
38,725

7,976
3,068
2,088
281
1,439
14,85441,721

DAIICHIKOSHO

CO.,

LTD.

Current interim period(As of June 30, 2010)
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

4FY2009(As of March 31, 2010)
Condensed

12,35017,28556,642(973)
85,305

12,35017,28555,563(973)84,226

(15)
(777)
(126)
(919)
849
85,235
123,961

(153)
(777)
(68)
(1,000)828
84,054
125,776

DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income(Millions of yen)Previous interim period

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Cooperative monetary aid received
Amortization of negative goodwill
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
Reversal of provision for directors' retirement benefits
Indemnity of cancellation of leases
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

5(From April 1, 2009, toJune 30, 2009)

Current interim period(From April 1, 2010, toJune 30, 2010)

30,137
17,283
12,854
8,991
3,862

30,538
17,101
13,437
8,495
4,941

45
35
97
13
185
377

34
35
108
11
151
341

71
34
106
4,134

51
69
121
5,162

9
0
19－
128
11
168

74
60
44－
10
127

52

54－

440－
52
4,250
2,159(700)1,459－
18
2,772

31
526
4,763
2,198(514)
1,683
3,079
25
3,054

DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Previous interim periodNet cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividends income
Interest expenses
Loss (gain) on disposal of noncurrent assets
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Transfer of cost of sales on karaoke equipment for rental
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Increase in time and saving deposits
Proceeds from decrease in time and saving deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of video licensesPurchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

6(From April 1, 2009, toJune 30, 2009)

Current interim period(From April 1, 2010, toJune 30, 2010)

4,250
3,149

4,763
3,061

－

440

(13)
－
(641)

(11)
(65)
(711)

(240)

(53)

(81)
71
43

(70)
51
47

1,080

34518187(150)
(157)
7,581
80
(76)
(1,413)
6,172

(217)
151
458
(176)
8,013
70(52)(5,283)2,747(22)81(2,856)
20(1,005)
(243)
－0－
(35)
104
(140)
135
(1)
(3,963)(129)
75(2,334)37(1,261)
(254)
(0)
30
(1,038)
(72)
107
(564)
135
(73)
(5,340)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)Previous interim period

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7(From April 1, 2009, toJune 30, 2009)

Current interim period(From April 1, 2010, toJune 30, 2010)

79
1,900
(4,132)(3,036)(5)(5,195)24(2,961)
29,584
26,622368
950(1,976)(1,977)(5)(2,641)(34)(5,268)33,87728,608DAIICHIKOSHO

CO.,

LTD.

(Segment Information)
Previous first quarter consolidated financial statements are prepared in conformity with new accounting standards
for comparison.
(Commercial karaoke)

S a l e s
Operating income

Previous interim
periodended June 2009

Current interim
periodended June 2010

14,6692,822

15,494
3,807(Millions of yen)
Year – over – Year – basis
ChangeChange(¥ Million)
(%)
824
5.6
985
34.9

(Karaoke cabin and restaurant)

S a l e s
Operating income

Previous interim
periodended June 2009

Current interim
periodended June 2010

9,950
1,544

9,661
1,374

Previous interim
periodended June 2009

Current interim
periodended June 2010

2,921
261

2,954
338

Previous interim
periodended June 2009

Current interim
periodended June 2010

2,596
151

2,428
256

(Millions of yen)
Year – over – Year – basis
ChangeChange(¥ Million)
(%)
(289)
(2.9)
(169)
(11.0)(Music software)

S a l e s
Operating income(Millions of yen)
Year – over – Year – basis
ChangeChange(¥ Million)
(%)
33
1.1
76
29.2

(Other)S a l e s
Operating income

8(Millions of yen)
Year – over – Year – basis
ChangeChange(¥ Million)
(%)
(167)
(6.4)
105
69.8