DAIICHIKOSHO

CO.,

LTD.

FY2010, the year ending March 31, 2011

Flash Report on the Consolidated Results for the Nine Months EndedDecember 31, 2010 [JGAAP]
February 10, 2011

Company Name: DAIICHIKOSHO CO., LTD.
Code Number: 7458
(URL http://www.dkkaraoke.co.jp)
Stock Exchange Listing: Osaka（JASDAQ）
Representative: Tadahiko Hoshi, Chairman and CEO
Contact: Shigeki Kobayashi, General Manager, Accounting Department, Administration Headquarters
Phone:+81-3- 3280-2151
Scheduled Date to Submit the Quarterly Securities Report: February 14, 2011
Start Date for Dividend Payment: －Availability of Supplementary Briefing Material on Quarterly Financial Results: None
Schedule of Quarterly Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Nine Months Ended December 31, 2010 (From April 1, 2010, toDecember 31, 2010)(1) Consolidated operating results (cumulative) (Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Operating income
Ordinary income
Millions of yen% Millions of yen% Millions of yen%Nine months ended
96,105
0.6
14,0240.2
14,698(0.3)
December 31, 2010
Nine months ended
95,5390.8
13,9944.0
14,742
5.2
December 31, 2009
Net income
8,031%(8.5)

Yen
122.77

Fully diluted net income
per share
Yen
―

8,779

13.7

130.77―

Millions of yen

Nine months ended
December 31, 2010
Nine months ended
December 31, 2009

Net income per share(2) Consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

As of128,300
86,459December 31, 2010
As of
125,776
84,054
March 31, 2010
(Reference) Shareholders’ equity
As of December 31, 2010: 85,515 millions of yenAs of March 31, 2010:
83,226 millions of yen

1Equity ratio%
66.7

Net assets per shareYen
1,331.66

66.2

1,263.54

DAIICHIKOSHO

CO.,

LTD.

2. Dividend
First Quarter

Second Quarter
Yen
20.00

Annual dividend
Third Quarter

Year ended March 31,—2010
Year ending March 31,
―
25.00
2011
Year ending March 31,
2011 (forecast)
Note: Revision of dividend forecast during the period under review: No—

Year-end
Yen
30.00

―

30.00

Total
Yen
50.00

55.00

3. Forecast Consolidated Performance for FY2010, the Year Ending March 31, 2011 (From April 1,2010, to March 31, 2011)
Net sales
Millions of yen

Year ending March 31,
2011 (full year)

127,700(Percentage figures indicate increase/decrease from a year earlier)Operating income
Ordinary income% Millions of yen% Millions of yen%
1.9
17,200(1.4)
18,100(1.7)

Net income

Net income per shareYen
157.28Millions of yen%
Year ending March 31,10,100(5.8)
2011 (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: No(Note) This refers to whether or not there were changes in specific subsidiaries causing a change in the scope ofconsolidation during the period under review.
(2) Adoption of simplified accounting methods and special accounting methods: Yes(Note) This refers to whether or not simplified accounting methods and special accounting methods for
preparing quarterly consolidated financial statements are adopted.
(3) Change in accounting principles, procedure and presentation methods
1) Changes following a revision of accounting standards: Yes
2) Other changes: No(4) Number of common shares issued
1) Number of shares issued
As of65,020,596 As of66,670,596(including treasury stock)
December 31, 2010
shares March 31, 2010
shares2) Number of shares of treasury
As of802,813 As of802,735
stock
December 31, 2010
shares March 31, 2010
shares3) Average number of shares
Nine months ended
65,420,229 Nine months ended
67,136,950
during the period
December 31, 2010
shares December 31, 2009
shares* Presentation regarding the implementation status of the quarterly review
This flash report on the consolidated results for the interim period is not covered by the quarterly review procedure
stipulated in the Financial Instruments and Exchange Act. At the time of the publication of this report, the quarterly
review procedure for quarterly consolidated financial statements is being implemented.
* Explanation for the appropriate use of performance forecasts and other special notes:
The statements regarding forecast of financial results in this report is based on the information that is available, as
well as estimates, assumptions and projections that are believed to be reasonable at the time of publication.
Therefore, there might be cases in which actual results greatly differ from forecast values.

2

DAIICHIKOSHO

CO.,

LTD.

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

FY2009Current third quarter(As of December 31, 2010) (As of March 31, 2010)(Condensed)
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

3

28,952
8,808
7,105
6,308
(455)
50,71934,170
7,367
4,371
5,477
(461)
50,926

6,873
15,05618,1397,151
47,2206,859
13,393
18,213
7,520
45,986

676
7,728
8,404

－
7,420
7,420

13,258
9,098(400)
21,956
77,581
128,300

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

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2009Current third quarter(As of December 31, 2010) (As of March 31, 2010)(Condensed)
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
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

4

8,294
5,945
2,180
873
10,51127,805

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

7,011
2,922
2,213
246
1,641
14,03541,840

7,976
3,068
2,088
281
1,439
14,854
41,721

12,35015,21959,993(1,187)86,375

12,35017,28555,563(973)
84,22696(777)
(178)
(859)
943
86,459128,300

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

DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income
Nine months ended December 31(Millions of yen)

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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary incomeExtraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on redemption of investment securities
Reversal of allowance for doubtful accounts
Reversal of provision for retirement benefits
Indemnity of cancellation of leases
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Impairment loss
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Loss on sales of investment securities
Loss on sales of stocks of subsidiaries and affiliates
Loss on valuation of investment securities
Loss on abolishment of qualified pension plan
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

Nine months ended
December 31, 2009
(From April 1, 2009, toDecember 31, 2009)

Nine months ended
December 31, 2010
(From April 1, 2010, toDecember 31, 2010)

95,53954,77740,762
26,76813,994

96,10555,721
40,38426,36014,024

134
82
337
40
610
1,205

120
83
376
35
436
1,052

198102156
457
14,742

144
82
151
377
14,698

100－
25－
248
11
297

13
7
148
31
107－
54
362

260
377

226
29－

440－
57
60－
756
14,282
5,908(483)
5,424－
78
8,779

2－
16
901
1,617
13,444
5,622
(328)
5,293
8,150
119
8,031

DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Million of yen)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Loss on adjustment for changes of accounting standard forasset 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
Loss (gain) on valuation of investment securities
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, netSubtotal
Interest 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 licenses
Purchase 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

Nine months ended
December 31, 2009
(From April 1, 2009, toDecember 31, 2009)

Nine months ended
December 31, 2010
(From April 1, 2010, toDecember 31, 2010)

14,282
10,113377

13,444
9,725
29

－

440

(40)
(65)
(248)

(35)
(58)
(325)

(111)

125

(216)
198
250
60(303)
307
346
819
(139)
25,631
217(196)(3,077)
22,574(203)14421316(1,454)(2,733)
379
4,589
1,369
25,668203(139)(8,755)
16,976(178)
230(7,343)25(2,907)
(881)
－8－
(154)
313
(405)
235
35(11,093)

(187)
105
(7,537)63(3,507)(1,292)(46)
44(1,083)
(883)
340
(900)
179
215
(14,489)

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

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 paidPurchase of treasury stock
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

Nine months ended
December 31, 2009
(From April 1, 2009, toDecember 31, 2009)

Nine months ended
December 31, 2010
(From April 1, 2010, toDecember 31, 2010)

(71)
2,860
(8,426)(4,362)(984)(9)(10,994)3489
29,58430,073443
2,300(4,554)(3,599)(2,280)(16)(7,708)(80)(5,300)33,87728,577DAIICHIKOSHO

CO.,

LTD.

(4) Segment Information
1. Information regarding sales and income/loss by the reportable segments
Nine months ended December 31, 2010 (From April 1, 2010, to December 31, 2010)

48,90731,3188,614

88,841

7,264

96,105(Millions of yen)
Adjusted
Postedamount amount to theconsolidated
quarterlystatements ofincome—
96,105

9,742

4,835

909

15,487740

16,228(2,203)

Commercial
karaoke

SalesSegment income[Operating income]

Reportable segments
KaraokeMusiccabin andsoftware
restaurant

Other

Total

Subtotal

14,024(Reference information)
For reference, “Information regarding sales and income/loss by the reportable segments” for the nine months
ended December 31, 2009, which was prepared in a similar method as for the nine months ended December 31,
2010, is set out below.
Nine months ended December 31, 2009 (From April 1, 2009, to December 31, 2009)

47,11931.033

9,499

87,653

7,886

95,539(Millions of yen)
Adjusted
Postedamount amount to theconsolidated
quarterlystatements ofincome—
95,5399,182

5,632916

15,731561

16,293(2,299)Commercial
karaoke

Sales
Segment income[Operating income]

Reportable segments
KaraokeMusiccabin andsoftware
restaurant

Other

Total

Subtotal

8

13,994