DAIICHIKOSHO

CO.,

LTD.

FY2016, the year ending March 31, 2017

Flash Report on the Consolidated Results for the First Quarter Ended
June 30, 2016 [JGAAP]
August 8, 2016

Company Name:
DAIICHIKOSHO CO., LTD.
Stock Exchange Listing: Tokyo Stock Exchange
Code Number:
7458
URL:
http://www.dkkaraoke.co.jp
Representative:
Saburo Hayashi, President
Contact:
Shigeki Kobayashi,
Corporate Officer; and General Manager, Accounting Department
Phone:+81-3-3280-2151
Scheduled Date to Submit the Quarterly Securities Report: August 12, 2016
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 First Quarter Ended June 30, 2016 (From April 1, 2016,
to June 30, 2016)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
33,628Operating income
Ordinary income% Millions of yen% Millions of yen%
(4.7)
4,396
(12.5)
4,679(14.4)

35,282

9.6

Millions of yen

Three months ended
June 30, 2016
Three months endedJune 30, 2015

5,021

Net income attributable to

Basic earnings per shareowners of parent
Millions of yen

Three months ended
618
June 30, 2016
Three months ended
3,206
June 30, 2015
(Note) Comprehensive income:Three months ended June 30, 2016:
Three months ended June 30, 2015:

1.0%(80.7)

Yen
10.74

(0.8)

55.33

2,948 million yen
3,731 million yen

Total assets

Net assets
Millions of yen

As of June 30, 2016
180,213
112,835
As of March 31, 2016
179,641
112,754(Reference) Shareholders’ equity:
As of June 30, 2016:
111,447million yen
As of March 31, 2016:
111,402million yen

1(0.3)

Fully diluted net income
per shareYen
10.73―(21.0) %7.3 %(2) Consolidated financial position
Millions of yen

5,465

Equity ratio%
61.8
62.0

DAIICHIKOSHO

2.

CO.,

LTD.

Dividend
First Quarter

Second Quarter
Yen
54.00

Annual dividend
Third Quarter

Year ended March 31, 2016——
Year ending March 31,―2017
Year ending March 31,
54.00―
2017 (forecast)(Note) Changes in dividends forecast from most recently announced figures: None

Year-endYen
54.00

Annual54.00

Yen
108.00108.00

3. Forecast Consolidated Performance for FY2016, the Year Ending March 31, 2017
(From April 1, 2016, to March 31, 2017)
Net sales
Millions of yen

Six months ending
September 30, 2016
Year ending March 31,2017 (full year)(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income% Millions of yen% Millions of yen%

69,700(0.9)

8,300(16.3)

9,000(16.1)

142,200

0.6

19,000(4.5)

20,400(3.4)

Net income attributable toowners of parent
Millions of yen%

Basic earnings per shareYen
Six months ending
3,100(52.1)
53.79
September 30, 2016
Year ending March 31,10,100(19.8)
175.252017 (full year)(Note) Changes in forecast of consolidated operating results from most recently announced figures: Yes*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting
from changes in scope of consolidation): None
(2) Adoption of special accounting policies for quarterly financial statements: None
(3) Changes in accounting standard, accounting estimation change and error correction
1) Changes due to changes in accounting standard: Yes
2) Changes due to changes in accounting standard except (3) 1): None
3) Changes due to accounting estimation change: None
4) Error correction: None
(4) Number of common shares issued
1) Number of shares issued
As of57,634,200 As of
57,634,200(including treasury stock)June 30, 2016
shares March 31, 2016
shares2) Number of shares ofAs of3,102 As of
3,070
treasury stock
June 30, 2016
shares March 31, 2016
shares3) Average number of shares
Three months ended
57,631,115 Three months ended
57,958,289
during the periodJune 30, 2016
shares June30, 2015
shares* Presentation regarding the implementation status of the quarterly review:
This flash report on the consolidated results for the Three months 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 quarterlyreview 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 are 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)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Karaoke equipment for rental, netKaraoke cabin and restaurant facilities, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3FY2015(As of March 31, 2016)

Current First quarter(As of June 30, 2016)

51,478
7,113
6,243
7,271
(149)
71,956

51,222
5,207
6,959
8,873
(140)
72,122

10,943
19,112
31,595
5,995
67,646

11,28819,21131,595
6,012
68,109

1,882
5,971
7,853

1,773
5,770
7,543

9,997
14,2507,972(36)
32,184
107,684
179,641

10,101
14,2018,170(35)
32,438108,090
180,213DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total non-current liabilitiesTotal liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefits plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

4FY2015(As of March 31, 2016)

Current First quarter(As of June 30, 2016)

4,048
4,201
3,2371,086
11,14523,718

4,634
4,518
1,977
554
12,33524,02010,00023,362
1,263
5,398
3,143
43,16866,886

10,00023,718
935
5,519
3,185
43,357
67,37812,350
4,001
98,329(13)
114,668

12,3504,001
96,064(13)
112,403(2,074)
(733)
108
(566)
(3,265)
81
1,270
112,754
179,641301(733)
16(540)
(955)
109
1,278
112,835
180,213DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxesNet income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

5

Three months ended
June 30, 2015
(From April 1, 2015, toJune 30, 2015)

Three months ended
June 30, 2016
(From April 1, 2016, toJune 30, 2016)

35,282
21,53913,742
8,721
5,021

33,62820,764
12,864
8,467
4,396

218
384
603

165
299
465

84
568
158
5,465

83
65
34
182
4,679

2－
2

4
0
4

21
137
－
－
158
5,309
2,067
16
2,083
3,226
19
3,206

56
－
3,304
5
3,365
1,318
2,022
(1,343)67863920618

DAIICHIKOSHO

CO.,

LTD.

(Quarterly Consolidated Statements of Comprehensive Income)(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Three months ended
June 30, 2015
(From April 1, 2015, toJune 30, 2015)

Three months endedJune 30, 2016
(From April 1, 2016, toJune 30, 2016)

3,226

639

477
423504
3,731

2,375
(92)
26
2,309
2,948

3,711

2,928

1920

DAIICHIKOSHO

CO.,

LTD.

(4) Segment Information
Three months ended June 30, 2015 (From April 1, 2015, to June 30, 2015)
Reportable segments(Millions of yen)Amount on
consolidated
Adjustedquarterly
amountstatements of(Note)
incomeCommercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Other

Total

Sales

17,952

13,5182,082

33,552

1,729

35,282－35,282

Segment income(Operating income)4,088

1,413(25)

5,476

352

5,829(807)5,021(Note) The (807) million yen adjustment posted to Segment income is primarily composed of General and Administrative
Expenses incurred from the administrative department at the head office that are not attributable to any particularsegment.

Three months ended June 30, 2016 (From April 1, 2016, to June 30, 2016)
Reportable segments

Sales
Segment income(Operating income)(Millions of yen)Amount on
consolidated
quarterly
Adjustedstatements ofamount(Note)
incomeCommercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotalOtherTotal

16,407

13,2702,115

31,792

1,835

33,628－33,628

3,638

1,294

7

4,941

373

5,314(918)4,396(Note) The (918) million yen adjustment posted to Segment income is primarily composed of General and Administrative
Expenses incurred from the administrative department at the head office that are not attributable to any particularsegment.

7

DAIICHIKOSHO

CO.,

LTD.

(5) Issues Related to Summary Information (Notes)
Changes to Accounting Policies, Changes to Accounting Estimates, and Revision Restatements(Revised Implementation Guidance on Recoverability of Deferred Tax Assets)
From the period under review, the Company has applied the “Revised Implementation Guidance on Recoverability ofDeferred Tax Assets” (Accounting Standards Board of Japan (ASBJ) Accounting Statement No.26 of March 28, 2016;
hereinafter called the “Revised Implementation Guidance on Recoverability”), and has revised the part of accounting
method regard to the recoverability of deferred tax assets.
For an application Revised Implementation Guidance on Recoverability, adhere to the transitional handling prescribed inthe paragraph 49(4) of the Implementation Guidance on Recoverability, and the difference between the amount of deferredtax assets in case where has applied the paragraph 49(3)1to3 of the Implementation Guidance on Recoverability as of thebeginning of the period under review and the amount of deferred tax assets at the previous fiscal year-end has added toretained earnings at the beginning of the period under review.
As a result, deferred tax assets included in Investments and other assets, and Retained earnings at the beginning of theperiod under review increased by 228 million yen respectively.

(The change in depreciation method due to Tax Reform 2016)
Accompanying revised in Corporate Tax Law, has applied the "Practical Solution on a change in depreciation method due
to Tax Reform 2016" (Practical Issues Task Force No.32 of June 17, 2016) from the period under review.
Depreciation method pertaining to facilities attached to buildings and structures, which acquire on or after April 1, 2016,
have changed to the straight - line method from the declining - balance method.
This change in accounting policy has minimal impact on profit and loss for the period under review.

8