Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2019
[Japanese GAAP] (Consolidated)
Name of Listed Company:
UCHIYAMA HOLDINGS INC.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Fumiharu Uchiyama, President and Representative Director
Contact Point: Takehiro Yamamoto, Senior Managing Director and Manager of Business Planning Office
Phone: (093) 551-0002
Scheduled Date of Dividend Payment Start:
Scheduled Date of Financial Statements Filing:
February 14, 2019
Supplementary materials for Financial Results: None
Investor conference for Financial Results: None

February 13, 2019
Stock Listing: TSE(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2019 (April 1, 2018 - December 31, 2018)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

FY 2019 3Q
20,3773.2
861(13.5)FY 2018 3Q
19,7444.9
995
65.1(Note) Comprehensive income
FY 2019 3Q: ¥911 million (27.5%)
Net income
per share
FY 2019 3Q
FY 2018 3Q%

Millions of yen

%

1,109
0.2
979
1,107
44.1
710
FY 2018 3Q: ¥714 million (37.9 %)

37.8
38.8

Diluted net income per
share
Yen

Yen

50.67
36.77

-

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2019 3Q
FY 2018(Reference) Equity capital:

Millions of yen

Equity ratio

Millions of yen

31,80529,986
FY 2019 3Q: ¥16,115 million%

16,11550.7
15,39751.3
FY 2018: ¥15,397 million

2. Dividends
End of the 1Q

Dividends per share
End of the 3Q

End of the 2Q

Yen

FY 2018
FY 2019
FY 2019 (forecast)(Note) Changes from the latest dividend forecast: None

Year-end

Annual

Yen

Yen

Yen

Yen

5.00
5.00

-

5.00

10.00

5.00

10.00

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2019 (April 1, 2018 - March 31, 2019)(% of change from previous year for full year)

Net sales
Millions of yen

Operating income%

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Full year
27,7815.2
1,318(Note) Changes from the latest financial forecast: None

10.6

1

Millions of yen

1,371

%

1.4

Millions of yen

881

Net income
per share

%

Yen

9.1

45.62

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) Application of the accounting procedures for producing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements:
1) Changes in accounting policies due to revisions of accounting standards:
2) Changes in accounting policies due to reasons other than above 1):3) Changes in accounting estimates:
4) Restatements:(4) Number of outstanding shares (common stock)1) Number of outstanding shares (including treasury
stock) at end of term2) Number of treasury stock at end of term3) Average number of shares

None
None
None
None

FY 2019 3Q

21,618,800 shares

FY 2018

21,618,800 shares

FY 2019 3Q

2,287,777 shares

FY 2018

2,287,776 shares

FY 2019 3Q

19,331,024 shares

FY 2018 3Q

19,331,024 shares*Summary of financial results is out of scope of quarterly review by certified public accountant or audit corporation.
*Statement regarding the proper use of financial forecasts and other remarks2

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 4(1) Analysis Concerning Results of Operations ............................................................................................................................ 4(2) Analysis Concerning Financial Situation ................................................................................................................................ 5(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ........................................................... 5
2. Consolidated Financial Statements ............................................................................................................................................... 6(1) Consolidated Balance Sheets .................................................................................................................................................. 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 8(3) Notes Regarding Consolidated Financial Statements.............................................................................................................10(Notes regarding premise of a going concern) .........................................................................................................................10(Notes on significant changes in the amount of shareholders’ equity) .....................................................................................10(Additional information) .........................................................................................................................................................10(Segment information, etc.) ..................................................................................................................................................... 113

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
In the third quarter of this consolidated term, the Japanese economy gradually recovered overall due to an improvement incorporate earnings and the employment environment. On the other hand, there are also concerns about the impact on the
global economy due to trade problems between the U.S. and China and trends in the financial capital market. Therefore,
there continues to be uncertainty over the future.
Amid this business environment, our corporate group has carried out sales activities, etc. actively based on our businessstrategies in each segment. In addition, we made efforts to improve the added values of our services, by planning andimplementing various measures for boosting synergetic effects among Nursing Care, Karaoke, and Restaurant Businesses.
As for expenditures, we streamlined our business administration by reducing costs, to stabilize our business performance.
As a result, sales of the third quarter of the current consolidated fiscal year were 20,377,629 thousand yen (up 3.2% Yearon-Year (YoY)), operating income was 861,143 thousand yen (down 13.5% YoY), ordinary income was 1,109,356 thousandyen (up 0.2% YoY), and profit attributable to owners of parent was 979,577 thousand yen (up 37.8% YoY).
The results of each segment were as follows.
a. Nursing Care Business
For the Nursing Care Business segment, we aimed at aggressive expansion, and established four new paid nursing homewith nursing care services and three new day-care facilities in a project for supporting disabled children in commuting tofacilities after school, etc. “Sawayaka Ai-no-ie.” As a result of these efforts we now have 177 offices in 100 locations as ofthe end of this third quarter. At existing facilities, we aimed to stabilize occupancy ratio and reduce the number of vacantrooms by promoting the cementing of cooperation with nearby hospitals and home care support offices by visiting them.
Consequently, the average occupancy ratio of existing facilities in the third quarter of this consolidated term was 96.1%(93.9% in the same term last year). As a result, sales were 13,363,777 thousand yen (up 11.8% YoY) and segment income
was 965,313 thousand yen (down 2.3% YoY).
b. Karaoke Business
For the Karaoke Business segment, we opened one new store and closed two others in December. Accordingly, we have
91 stores as of the end of this third quarter. (93 stores in the same period of the previous year). At existing facilities, we
strived to attract more customers by distributing coupons, etc. via SNS, but there is a drop-off in customers because of 2018
FIFA World Cup Russia, which started on June 14 and garnered much attention, and the effects of natural disaster including
the July 2018 Heavy Rainfall, the typhoons that landed one after another, etc. As a result, sales were 5,468,636 thousand yen(down 5.0% YoY) and segment income was 629,605 thousand yen (down 6.8% YoY).
c. Restaurant Business
For the Restaurant Business segment, one existing store changed its business type and one store in Japan and one store
in Thailand were closed. Accordingly, the number of stores as of the end of this third quarter is 19 inside Japan, and 2
outside Japan. As for sales activities, the number of customers declined due to the FIFA World Cup and natural disasters
like the Karaoke Business. As a result, sales were 1,218,214 thousand yen (down 9.1% YoY) and segment income was
52,729 thousand yen (up 241.6% YoY).
d. Real Estate Business
For the Real Estate Business segment, our corporate group’s core businesses activities are sales/purchase of real estate
properties for sale and intermediary work for rental properties. As a result, sales were 156,160 thousand yen (down 68.8%
YoY) and segment income was 35,570 thousand yen (down 66.8% YoY).
e. Other businesses4In the other businesses segment, we strived to increase hotel guests by utilizing the advertisement media, with the aim of
meeting the demand as domestic travels increased due to the yen depreciation, in the hotel business. However, the number ofcustomers declined due to the effects of natural disasters like the Karaoke Business and Restaurant Business. As a result,sales were 170,840 thousand yen (down 11.9% YoY) and segment loss was 40,084 thousand yen (segment loss was 26,723
thousand yen during the same term last year).

(2) Analysis Concerning Financial Situation
Total assets as of the end of the third quarter of this consolidated fiscal year came to 31,805,775 thousand yen, up
1,819,467 thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 15,136,065 thousand yen, up 1,927,154 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because notes and accounts receivable-trade and real estate for sale increased and cash anddeposit decreased.
Noncurrent assets came to 16,669,710 thousand yen, down 107,686 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because buildings and structures, land and property, plant and equipment (other)decreased and investments and other assets (other) increased.
Liabilities as of the end of the third quarter of this consolidated fiscal year came to 15,690,773 thousand yen, up
1,101,482 thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 6,611,901 thousand yen, up 141,644 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because current portion of long-term loans payable increased and short-term loans payable
decreased.
Noncurrent liabilities came to 9,078,871 thousand yen, up 959,838 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because long-term loans payable increased and noncurrent liabilities (other)decreased.
Net assets as of the end of the third quarter of this consolidated fiscal year came to 16,115,002 thousand yen, up
717,985 thousand yen from the end of the previous consolidated fiscal year. This is mainly because retained earnings
arising from profit attributable to owners of parent increased.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2019, there are no changes to the estimated values
announced on May 14, 2018.

5

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2018
(As of March 31, 2018)

3Q of FY ending March 31, 2019
(As of December 31, 2018)

AssetsCurrent assets
Cash and deposits

9,315,023

8,724,213

Notes and accounts receivable-trade
Merchandise

1,918,111
67,593

2,149,383
90,425

Real estate for sale
Supplies

989,573372

3,169,893
250

Other
Allowance for doubtful accounts

926,367

1,008,535(8,132)(6,634)

13,208,910

15,136,065

7,281,803
3,390,199

6,964,016
3,276,037

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

856,990774,576

11,528,994

11,014,631

77,42364,463

Other
Allowance for doubtful accounts

5,197,995

5,616,629(27,015)(26,013)

Total investments and other assets

5,170,980

5,590,616

16,777,397

16,669,710

29,986,308

31,805,775

621,037

706,488751,004
2,300,777

496,000
2,666,927

Income taxes payable
Provision for bonuses

269,938
236,941

249,923
137,038

Provision for point card certificates
Provision for shareholder benefit program

137,972
12,397100,198-

Asset retirement obligation
Other

17,233
2,122,955

19,7952,235,531

Total current liabilities

6,470,257

6,611,901

Long-term loans payable
Asset retirement obligation

6,549,297
221,321

7,774,833
210,581

Other

1,348,414

1,093,457

Total noncurrent liabilities

8,119,032

9,078,871

14,589,290

15,690,773

Total property, plant and equipment
Intangible assets
Investments and other assets

Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payableNoncurrent liabilities

Total liabilities

6

(Thousands of yen)
FY ended March 31, 2018
(As of March 31, 2018)

3Q of FY ending March 31, 2019
(As of December 31, 2018)

Net assets
Shareholders’ equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,666,282
11,691,849

2,664,695
12,478,116

Treasury stock(1,166,007)(1,164,420)

Total shareholders’ equity

15,415,060

16,201,326(17,799)(85,852)

(243)

(471)

Accumulated other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Foreign currency translation adjustment(18,042)(86,324)

Total net assets

15,397,017

16,115,002

Liabilities and net assets

29,986,308

31,805,775

Total accumulated other comprehensive income7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
The third quarter of this consolidated fiscal year

(Thousands of yen)
3Q of FY ended March 31, 2018
3Q of FY ending March 31, 2019
(April 1, 2017 - December 31, 2017) (April 1, 2018 - December 31, 2018)

Net sales

19,744,037

20,377,629

Cost of sales

17,474,448

18,246,002

Gross profit

2,269,589

2,131,626

Selling, general and administrative expenses

1,274,549

1,270,483

995,039

861,143

Interest income
Dividend income

4,231
1,824

3,853
4,124

Commission fee
Subsidy income

70,16814,144

98,831
105,946

Other

97,811

106,837

Total non-operating income

188,179

319,592

Interest expenses
Other

55,37020,73649,803
21,575

Total non-operating expenses

76,107

71,3791,107,111

1,109,356

Gain on sales of non-current assets
Gain on sales of investment securities

258,357
9,739

306,517-

Insurance income
Gain on negative goodwill

61,238160,332-

Total extraordinary income

329,335

466,850

72,85944,168769
273,843

7
53,511-

31,053Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on disaster
Total extraordinary loss

347,472

128,739

Income before income taxes

1,088,973

1,447,467

Income taxes-current
Income taxes-deferred

255,349
122,783

366,663
101,225

Total income taxes

378,132

467,889

Net profit

710,841

979,577

Net profit attributable to owners of parent

710,841

979,5778

Consolidated Statements of Comprehensive Income
The third quarter of this consolidated fiscal year
(Thousands of yen)
3Q of FY ended March 31, 2018
3Q of FY ending March 31, 2019
(April 1, 2017 - December 31, 2017) (April 1, 2018 - December 31, 2018)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

710,841

979,577

4,235(68,053)

(368)

(228)

3,867

(68,281)Comprehensive income

714,709911,295

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

714,709911,295--

Total other comprehensive income9(3) Notes Regarding Consolidated Financial Statements(Notes regarding premise of a going concern)
Nothing is applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Nothing is applicable.
(Additional information)(Application of Partial Revision to ‘Accounting Standards for Tax Effect Accounting,’ etc.)
Partial Revision to ‘Accounting Standards for Tax Effect Accounting’ (Corporate Accounting Standards No. 28, Feb. 16,2018), etc. have been applied since the beginning of the first quarter of consolidated term. Accordingly, deferred tax assets areindicated in the section of “Investments and other assets,” while deferred tax liabilities are indicated in the section of “Noncurrent
liabilities.”(Transactions to provide our own shares to employees through a trust)
We introduced a stock benefit trust (J-ESOP) system (hereinafter “this system”) incentive plan to offer our own shares to
employees (including the employees of our subsidiaries; hereinafter the same) at a Board of Directors’ meeting held on August
10, 2018. This aims to further enhance the interrelation between our stock price and performance and the treatment of ouremployees while improving their motivation to improve our performance.
(1) Overview of transactions
This system is a mechanism to offer our own shares to employees who satisfy certain requirements based on the stock benefit
regulations we have established in advance. We have acquired the shares to be offered to our employees, including those for the
future, through a trust (hereinafter “this trust”) we established in advance. We are managing these shares separately as trust
assets.
(2) Our own shares remaining in the trust
We have recorded our own shares remaining in the trust as treasury stock under net assets according to their book value(excluding the amount of incidental expenses) in the trust. The applicable treasury stock book value is 35,137 thousand yen andthe number of shares is 72,150 as of the end of the third quarter of this consolidated fiscal year.

10

(Segment information, etc.)
I. Cumulative period through the consolidated third quarter of the previous fiscal year (April 1 - December 31, 2017)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Consolidated
Reporting segments

Otherbusinesses

Total

Adjustment

statements ofamount (Note)

income*2amount (Note)

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

11,954,926

5,755,394

1,339,941

499,768

19,550,031

194,006

19,744,037-

19,744,037

-

5,937

39,6681,724

47,330-47,330(47,330)-

Total

11,954,926

5,761,331

1,379,610

501,493

19,597,362

194,006

19,791,368(47,330)

19,744,037

Segment income (loss)

988,533

675,598

15,438106,993

1,786,564(26,723)

1,759,840(764,801)

995,039

Total(Note) *1

*3

Sales
Sales to externalcustomers
Internal sales ortransferred amountamong thesegments(Note)
1. The classification “other businesses” refers to business segments that are not included in reporting segments, and includes
hotel business.
2. The segment income (loss) adjustment amount, -764,801 thousand yen, includes 361,517 thousand yen in elimination ofintersegment transactions and -1,126,318 thousand yen in company-wide expenses that are not allocated to reporting segments.
The company-wide expenses are mainly selling, general and administrative expenses that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in the consolidated statements of income.
2. Information on impairment of noncurrent assets, goodwill, etc. for each reporting segment(Important impairment loss related to noncurrent assets)
We recorded an impairment loss of 215,260 thousand yen in the Karaoke Business segment and an impairment loss of
58,582 thousand yen in the Restaurant Business segment in the third quarter of this consolidated term.
(Important gain on negative goodwill)
We recorded a gain on negative goodwill of 61,238 thousand yen in the third quarter of this consolidated term, because in
the Nursing Care Business segment we acquired one nursing care facility in Chiba City, Chiba Prefecture on October 1,
2017 that had been operated by Kurashi-no-sato, Ltd.

11

II. Cumulative period through the consolidated third quarter of current fiscal year (April 1 - December 31, 2018)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Consolidated

Reporting segments

Other

Adjustment

businesses

Totalstatements ofamount (Note)

income*2amount (Note)

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

13,363,777

5,468,636

1,218,214

156,160

20,206,788

170,840

20,377,629-

20,377,629

-

7,861

38,857900

47,619-47,619(47,619)-

Total

13,363,777

5,476,498

1,257,072

157,060

20,254,408

170,840

20,425,248(47,619)

20,377,629

Segment income (loss)

965,313629,605

52,72935,5701,683,219(40,084)

1,643,135(781,991)

861,143

Total(Note) *1

*3

Sales
Sales to externalcustomers
Internal sales ortransferred amountamong the segments(Note)
1. The classification “other businesses” refers to business segments that are not included in reporting segments, and includes
hotel business.
2. The segment income (loss) adjustment amount, -781,991 thousand yen, includes 362,971 thousand yen in elimination ofintersegment transactions and -1,144,962 thousand yen in company-wide expenses that are not allocated to reporting segments.
The company-wide expenses are mainly selling, general and administrative expenses that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in the consolidated statements of income.
2. Information on impairment of noncurrent assets, goodwill, etc. for each reporting segment(Important impairment loss related to noncurrent assets)
We recorded an impairment loss of 34,902 thousand yen in the Karaoke Business segment and an impairment loss of
18,608 thousand yen in the Restaurant Business segment in the third quarter of this consolidated term.

12