Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2020
[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 13, 2020
Supplementary materials for Financial Results: No
Investor conference for Financial Results: No

February 12, 2020
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, 2020 (April 1, 2019 – December 31, 2019)(% 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 2020 3Q
23,566
15.7
1,211
40.7
1,397
25.9
FY 2019 3Q
20,3773.2
861(13.5)
1,109
0.2(Note) Comprehensive income
FY 2020 3Q: ¥964 million (5.8%) FY 2019 3Q: ¥911 million (27.5 %)

902
979

(7.9)
37.8

Net income
per share
FY 2020 3Q
FY 2019 3Q

Millions of yen

Millions of yen

Diluted net income per
share
Yen

Yen

46.68
50.67

-

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2020 3Q
FY 2019(Reference) Equity capital:%

Equity ratio

Millions of yen

30,14430,072
FY 2020 3Q: ¥16,999 million%

16,99956.4
16,22954.0
FY 2019: ¥16,229 million

2. Dividends
End of the 1Q

Dividends per share
End of the 3Q

End of the 2Q

Yen

FY 2019
FY 2020
FY 2020 (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, 2020 (April 1, 2019 - March 31, 2020)(% 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
30,87313.5
1,909(Note) Changes from the latest financial forecast: None

86.1

Millions of yen

1,899

%

43.2

Millions of yen

1,244

Net income
per share

%

Yen

12.9

64.38

*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 2020 3Q

21,618,800 shares

FY 2019

21,618,800 shares

FY 2020 3Q

2,287,777 shares

FY 2019

2,287,777 shares

FY 2020 3Q

19,331,023 shares

FY 2019 3Q

19,331,024 shares

Note: The shares in the Company possessed by Trust & Custody Services Bank, Ltd. (Trust E) as a trust asset of the “stock
benefit trust (J-ESOP)” (fiscal year ending March 31, 2020 3Q: 72,150 shares / fiscal year ended March 31, 2019: 72,150
shares) are included in the number of treasury stock at end of term. In addition, the shares in the Company possessed by
Trust & Custody Services Bank, Ltd. (Trust E) are included in the treasury stocks to be deducted in the calculation of theaverage number of shares during the fiscal year (fiscal year ending March 31, 2020 3Q: 72,150 shares / fiscal year ended
March 31, 2019 3Q: 7,608 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 remarks
 Descriptions regarding the future, including the financial projections contained in this report, are based on certain
assumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable. Actual
financial results may significantly vary due to various factors. For assumptions used in forecasting financial results andprecautions in using the financial projections, please refer to “Analysis Concerning Future Forecasts Including
Consolidated Financial Projections” on page 4 of the Appendix.
 A meeting for explaining the businesses and results to individual investors will be held when necessary. For the schedule ofthe meeting, etc., please see the website of the Company.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ........................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................... 4(1) Consolidated Balance Sheets .................................................................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 6(3) Notes Regarding Consolidated Financial Statements .............................................................................................................. 8(Notes regarding premise of a going concern) .......................................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ...................................................................................... 8(Additional information) .......................................................................................................................................................... 8(Segment information, etc.) ...................................................................................................................................................... 9

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
The Japanese economy during the current consolidated cumulative third quarter was rebounding slowly in general thanks
to the improved corporate earnings and employment environment; however, there is a risk of a downturn in the economy
due to US-China trade friction and the unstable situation in the Middle East. Therefore, the outlook for the future remains
uncertain.
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 23,566,841 thousand yen (up 15.7%
Year-on-Year (YoY)), operating income was 1,211,904 thousand yen (up 40.7% YoY), ordinary income was 1,397,097
thousand yen (up 25.9% YoY), and profit attributable to owners of parent was 902,458 thousand yen (down 7.9% YoY).
The results of each segment were as follows.
a. Nursing Care BusinessIn the Nursing Care Business, we opened a new fee-charging retirement home with nursing care and a new home-visit
nursing station. As a result, we have 181 sales bases in 103 locations as of the end of this third quarter. Regarding theexisting facilities, we promoted the cementing of cooperation with nearby hospitals and home care support offices byvisiting them in an effort to reduce the number of vacant rooms at its facilities. Furthermore, we strived to improve its
service level through employee education and training.
In addition, we continued to promote industry-academia-government collaboration in this consolidated fiscal year. We
strived to train in-house qualified oral care certified persons in cooperation with Kyushu Dental University. Improving oral
care promotes the prevention of diseases such as aspiration pneumonia.
We conducted nursing care staff behavior analysis verification tests using IoT technology in cooperation with Kyushu
Institute of Technology. We would also like to utilize AI to contribute to the reform in the work styles of personnel based on
the results of these experiments.
We have developed a resident information collection tool called a life map under the theme of making life worthwhile incooperation with Kyushu University. We are working to utilize that to further enrich lives after entering facilities.
Currently, we are stepping up activities in order to make the life map available in a wider area.
The average occupancy ratio of existing facilities was 94.2% for this third quarter (which was 96.1% in the same periodof a year earlier). As a result, sales were 14,241,310 thousand yen (up 6.6% YoY) and segment income was 973,883
thousand yen (up 0.9% YoY).
b. Karaoke BusinessIn the Karaoke Business, we newly opened three stores and closed three stores in the current third quarter. As a result, thenumber of stores is 91 as of the end of the third quarter of this consolidated fiscal year (91 stores in the same period of a year
earlier). We increased repeat customers in our existing facilities. We did this by proactively sending customers coupons
utilizing social networking services. However, successive natural disasters occurred. Heavy rains fell on the northern part of
Kyushu in August and a large typhoon directly hit the Tokyo metropolitan area in September. In addition to this, the Rugby
World Cup 2019 was held in Japan from September to November. This attracted a great deal of attention from people.
Furthermore, this period overlapped with the consumption tax hike in October. Accordingly, customer traffic slowed down.
As a result, sales were 5,234,861 thousand yen (down 4.3% YoY) and segment income was 522,970 thousand yen (down
16.9% YoY).

2

c. Restaurant Business
For the Restaurant Business, we closed one store. Accordingly, the number of stores as of the end of the third quarter ofthis consolidated fiscal year is 16 inside Japan, and 2 outside Japan. In terms of sales, we saw a slowdown in the attractionof customers due to the impact of the Rugby World Cup and the natural disasters in the same way as in our Karaoke
Business. As a result, sales were 1,014,853 thousand yen (down 16.7% YoY) and segment income was 31,763 thousand yen(down 39.8% YoY).
d. Real Estate BusinessIn the Real Estate Business, both sales and profit significantly grew owing to the large-scale real estate for sale that thecompany sold and other factors. As a result, sales were 2,912,859 thousand yen (156,160 thousand yen at the same period of
the previous year) and segment income was 546,481 thousand yen (35,570 thousand yen at the same period of the previousyear).
e. Other businesses
In the other businesses segment, the company made efforts to increase guests, secure bookings for parties, promote day
trips for bathing, etc. in the hotel business. Nevertheless, the number of customers we attracted decreased. This was due tothe impact of the natural disasters in the same way as with the Karaoke Business and Restaurant Business. As a result, sales
were 162,956 thousand yen (down 4.6% YoY) and segment loss was 55,653 thousand yen (segment loss was 40,084
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 30,144,770 thousand yen, up 72,735
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 15,570,624 thousand yen, up 21,093 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because cash and deposit, notes and accounts receivable-trade and current assets (other) increased andreal estate for sale decreased.
Noncurrent assets came to 14,574,146 thousand yen, up 51,641 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because land and property, plant and equipment (other) increased, and buildings and structures andinvestments and other assets (other) decreased.
Liabilities as of the end of the third quarter of this consolidated fiscal year came to 13,144,844 thousand yen, down 697,290
thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 6,422,968 thousand yen, down 333,880 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because current portion of long-term loans payable, income taxes payable and provision forbonuses decreased and short-term loans payable increased.
Noncurrent liabilities came to 6,721,876 thousand yen, down 363,409 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because long-term loans payable and noncurrent liabilities (other) decreased.
Net assets as of the end of the third quarter of this consolidated fiscal year came to 16,999,925 thousand yen, up 770,026
thousand yen from the end of the previous consolidated fiscal year. This is mainly because of an increase in retained earnings
arising from profit attributable to owners of parent and a decrease due to cash dividends paid.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2020, there are no changes to the estimated values
announced on May 10, 2019.

3

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2019
(As of March 31, 2019)

3Q of FY ending March 31, 2020
(As of December 31, 2019)

AssetsCurrent assets
Cash and deposits

9,159,666

11,007,960

Notes and accounts receivable-trade
Merchandise

2,088,868
53,6672,284,034
86,363

Real estate for sale
Supplies

3,255,629
262

1,040,569
407

997,447(6,010)1,159,907(8,618)15,549,530

15,570,624

5,484,524
2,776,844

5,398,421
2,837,232

Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

566,688791,967

8,828,058

9,027,621

62,003

51,836

Other
Allowance for doubtful accounts

5,655,066(22,624)

5,516,443(21,755)

Total investments and other assets

5,632,442

5,494,688

14,522,504

14,574,146

30,072,034

30,144,770

632,235

701,596

357,000
60,000940,000
90,0002,673,723
445,158

2,254,818
73,727

Provision for bonuses
Provision for point card certificates

241,764
89,429119,703
105,154

Provision for shareholder benefit program
Asset retirement obligation

13,095
16,411-Other

2,228,031

2,137,969

Total current liabilities

6,756,849

6,422,968

240,000

180,000

Long-term loans payable
Asset retirement obligation

5,612,131
212,532

5,441,865
216,856

Provision for stock benefit
Other1,020,622

2,503
880,652

Total noncurrent liabilities

7,085,286

6,721,876

13,842,135

13,144,844

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 bonds
Current portion of long-term loans payable
Income taxes payableNoncurrent liabilities
Bonds payable

Total liabilities

4

(Thousands of yen)
FY ended March 31, 2019
(As of March 31, 2019)

3Q of FY ending March 31, 2020
(As of December 31, 2019)

Net assets
Shareholders’ equity
Capital stock
Capital surplus

2,222,935
2,664,695

2,222,935
2,664,695

Retained earnings
Treasury stock

12,600,748(1,164,420)

13,309,175(1,164,420)

Total shareholders’ equity

16,323,959

17,032,386

Accumulated other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Foreign currency translation adjustment(94,272)(31,856)

212

(603)

Total accumulated other comprehensive income(94,059)(32,460)

Total net assets

16,229,899

16,999,925

Liabilities and net assets

30,072,034

30,144,770

5

(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, 2019
3Q of FY ending March 31, 2020
(April 1, 2018 - December 31, 2018) (April 1, 2019 - December 31, 2019)

Net sales

20,377,629

23,566,841

Cost of sales

18,246,002

21,080,012

Gross profit

2,131,626

2,486,828

Selling, general and administrative expenses

1,270,483

1,274,924

861,143

1,211,904

Interest income
Dividends income

3,853
4,124

5,491
23,293

Commission fee
Insurance income

98,831
31,41280,64860,995

Subsidy income
Other

105,946
75,42567,74638,193

Total non-operating income

Operating income (loss)
Non-operating income

319,592

276,367

Non-operating expenses
Interest expenses

49,80346,062

Loss on disaster
Other

21,57522,39622,715

Total non-operating expenses

71,37991,174

1,109,356

1,397,097

Gain on sales of noncurrent assets
Insurance income

306,517160,332-

Total extraordinary income

466,850-Extraordinary loss
Loss from the sale of noncurrent assets

44,168-Loss on retirement of noncurrent assets
Impairment loss

753,511

11,000-Loss on disaster

31,053-

Ordinary income
Extraordinary income

Total extraordinary loss

128,739

11,000

Income before income taxes

1,447,467

1,386,097

Income taxes-current
Income taxes-deferred

366,663
101,225

322,971
160,667

Total income taxes

467,889483,638

Net income

979,577

902,458

Net profit attributable to owners of parent

979,577

902,4586

Consolidated Statements of Comprehensive Income
The third quarter of this consolidated fiscal year
(Thousands of yen)
3Q of FY ended March 31, 2019
3Q of FY ending March 31, 2020
(April 1, 2018 - December 31, 2018) (April 1, 2019 - December 31, 2019)

Net income

979,577

902,458

Other comprehensive income
Valuation difference on available-for-sale securities(68,053)

62,415

(228)

(816)

Foreign currency translation adjustment(68,281)

61,599Comprehensive income

Total other comprehensive income

911,295

964,058

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

911,295

964,058--7

(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)(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 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 are 35,137 thousand yen
and 35,137 thousand yen as of the end of the previous consolidated fiscal year and as of the end of the third quarter of thisconsolidated fiscal year, respectively, and the number of shares is 72,150 and 72,150 as of the end of the previous consolidated
fiscal year and as of the end of the third quarter of this consolidated fiscal year, respectively.

8

(Segment information, etc.)[Segment information]
I. Cumulative period through the consolidated third quarter of the previous 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)
Reporting segments

Consolidated

Other
businesses

Nursing

Karaoke

Care

Restaurant

Real EstateBusiness

Total

Total

(Note)*1

Adjustment

statements ofamount*2

incomeamount*3

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)-

13,363,777

5,476,498

1,257,072

157,060

20,254,408

170,840

20,425,248(47,619)

20,377,629

965,313629,605

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

1,643,135(781,991)

861,143

Business
Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Note) 1. The classification “other businesses” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income (loss) adjustments amount, -781,991 thousand yen, includes 362,971 thousand yen inelimination of intersegment transactions and -1,144,962 thousand yen in company-wide expenses that are notallocated 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(Significant impairment of noncurrent assets)
In the current consolidated cumulative third quarter, the company recorded impairment loss of 34,902 thousand yen in the“Karaoke Business” segment and that of 18,608 thousand yen in the “Restaurant Business” segment.

9II. Cumulative period through the consolidated third quarter of current fiscal year (April 1 - December 31, 2019)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Consolidated

Other
businesses

Nursing

Total

Adjustment

statements ofamount*2

incomeKaraoke

Restaurant

Business

Business

14,241,310

5,234,861

1,014,853

2,912,859

23,403,884

162,956

23,566,841-

23,566,841

-

8,214

38,523900

47,6383

47,641(47,641)-

14,241,310

5,243,075

1,053,376

2,913,759

23,451,523

162,959

23,614,482(47,641)

23,566,841

973,883

522,970

31,763

546,4812,075,098(55,653)

2,019,445(807,540)

1,211,904

Care
Business

Real EstateBusiness

Total(Note)*1

amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Note) 1. The classification “other businesses” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income (loss) adjustments amount, -807,540 thousand yen, includes 402,291 thousand yen inelimination of intersegment transactions and -1,209,832 thousand yen in company-wide expenses that are notallocated 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
Nothing is applicable.

10