DAIICHIKOSHO

CO.,

LTD.

FY2013, the year ending March 31, 2014

Flash Report on the Consolidated Results for the Interim Period Ended
September 30, 2013 [JGAAP]
November 11, 2013

Company Name:
DAIICHIKOSHO CO., LTD.
Stock Exchange Listing: Tokyo Stock Exchange, JASDAQ
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: November 14, 2013
Start Date for Dividend Payment: December 5, 2013
Availability of Supplementary Briefing Material on Quarterly Financial Results: Available
Schedule of Quarterly Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Interim Period Ended September 30, 2013 (From April 1, 2013,
to September 30, 2013)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Interim Period ended
September 30, 2013
Interim Period ended
September 30, 2012

Operating income

Ordinary income

10,089%
6.6

Millions of yen

64,924%
3.5

Millions of yen

10,859%7.1

62,747

1.0

9,464

3.9

10,135

1.9

Net income

Net income per share

Millions of yen%
Yen
Interim Period ended
6,167
4.3
103.27
September 30, 2013
Interim Period ended
5,911
12.5
94.77
September 30, 2012
(Note) Comprehensive income:Interim Period ended September 30, 2013: 5,706 million yen (10.3) %Interim Period ended September 30, 2012: 6,360 million yen 32.7 %(2) Consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

As of September 30, 2013
160,771
103,928
As of March 31, 2013
159,479
100,315(Reference) Shareholders’ equity:
As of September 30, 2013: 102,822 million yen
As of March 31, 2013: 99,258 million yen

1Equity ratio
%
64.0
62.2

Fully diluted net income
per shareYen――

DAIICHIKOSHO

2.

CO.,

LTD.

Dividend
First Quarter

Second Quarter
Yen
25.00

Annual dividend
Third Quarter

Year-end
Yen
35.00

Year ended March 31, 2013――
Year ending March 31,―30.00
2014
Year ending March 31,―
2014 (forecast)(Note) Changes in dividends forecast from most recently announced figures: Yes35.00

Total
Yen
60.00

65.00

3. Forecast Consolidated Performance for FY2013, the Year Ending March 31, 2014
(From April 1, 2013, to March 31, 2014)
Net sales
Millions of yen

Year ending March 31,
2014 (full year)

130,000(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income% Millions of yen% Millions of yen%
0.9

19,000Net income
Millions of yen

3.3

20,400(8.4)

Net income per share
Yen%

Year ending March 31,
12,000(6.4)
200.932014 (full year)(Note) Changes in forecast of consolidated operating results from most recently announced figures: None*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: None
2) Changes due to changes in accounting standard except (3) 1): None
3) Changes due to accounting estimation change: None
4) Error correction: None
1) Number of shares issued
As of59,725,000 As of59,725,000(including treasury stock)
September 30, 2013
shares March 31, 2013
shares2) Number of shares ofAs of
2,714 As of
2,714
treasury stock
September 30, 2013
shares March 31, 2013
shares3) Average number of sharesInterim Period ended
59,722,286 Interim Period ended
62,379,823
during the period
September 30, 2013
shares September 30, 2012
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 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 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)

FY2012(As of March 31, 2013)
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 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 noncurrent assets
Total assets

3

Current Interim Period(As of September 30,2013)

41,248
8,337
6,718
6,735
(134)
62,36542,074
6,494
6,281
7,879
(123)
62,606

7,598
15,251
24,497
7,135
54,484

8,620
15,488
26,107
5,490
55,706

405
5,956
6,361

327
5,834
6,162

18,99813,0604,355(146)
36,268
97,113
159,479

18,014
13,407
5,019(144)
36,29598,164
160,771DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2012(As of March 31, 2013)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equityAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

4

Current Interim Period(As of September 30,2013)

4,540
4,836
4,524
1,063
12,41927,384

4,836
5,048
4,655
1,508
9,209
25,25810,00014,151
3,683
2,088
1,856
31,78059,16410,00013,546
3,902
2,151
1,982
31,58456,842

12,3506,026
78,119(5)
96,49012,3506,026
82,196(5)
100,567

3,646(777)
(100)
2,768
1,056
100,315
159,479

3,034(777)
(1)
2,254
1,106
103,928
160,771DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of yen)Previous Interim Period(From April 1, 2012, toSeptember 30, 2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Cooperative monetary aid received
Compensation income
OtherTotal non-operating incomeNon-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Impairment loss
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

5Current interim period(From April 1, 2013, toSeptember 30, 2013)

62,74736,62026,127
16,6639,464

64,92437,522
27,402
17,312
10,089

330
229
－
414
973

386
231
148
436
1,203

142
18142
302
10,135

147
173
112
433
10,859

31
31

3
3102
60－
162
10,004
4,073
(22)
4,051
5,952
40
5,911

135
63
2
202
10,660
4,765
(325)
4,440
6,220
52
6,167

DAIICHIKOSHO

CO.,

LTD.

(Quarterly Consolidated Statements of Comprehensive Income)(Millions of yen)Previous Interim Period(From April 1, 2012, toSeptember 30, 2012)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparent
Comprehensive income attributable to minority interests

6

Current interim period(From April 1, 2013, toSeptember 30, 2013)

5,952

6,220

444(36)408
6,360(611)
98(513)
5,706

6,319

5,654

4052

DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Previous interim period(From April 1, 2012, toSeptember 30, 2012)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
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
Foreign exchange losses (gains)
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
Increase (decrease) in accounts payable-other
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 licenses
Purchase of investment securities
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

7

Current interim period(From April 1, 2013, toSeptember 30, 2013)

10,004
6,441
60
(21)
10
306
(293)

10,6606,293
63(16)
(11)
444
63

(380)
142
18
70

(473)
147
105
132

438

1,867

(72)
155
1,853
(771)
(840)
17,121392(146)(5,402)
11,965

(96)
210
273
(1,907)(811)
16,945491(146)(4,544)
12,746(47)
64(5,051)
32(1,816)
(806)
(521)
(112)
509
(486)
266
(343)
(8,311)(39)
148(6,214)7(1,689)(1,000)－(354)
343
(553)
247
(4)
(9,109)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)Previous interim period(From April 1, 2012, toSeptember 30, 2012)
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
Proceeds from issuance of bonds
Cash dividends paid
Purchase 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

877
1,850
(2,481)9,946(1,882)(1,667)
(21)
5,821
(27)
9,447
34,36743,814Current interim period(From April 1, 2013, toSeptember 30, 2013)75
1,260(1,726)－(2,090)－(20)(2,503)(24)
1,108
41,96343,071DAIICHIKOSHO

CO.,

LTD.

(4) SEGMENT INFORMATION
Previous interim period (From April 1, 2012, to September 30, 2012)
Reportable segments(Millions of yen)
Postedamount to theAdjusted
consolidated
amountquarterly(Note)
statements ofincomeCommercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Other

Total

Sales

31,89522,016

4,895

58,8073,940

62,747－62,747

Segment income(Operating income)

6,586

3,288

399

10,273652

10,925(1,461)

9,464(Note) The (1,461) million yen adjustment posted to Segment income is primarily composed of General andAdministrative Expenses incurred from the administrative department at the head office that are not attributable toany particular segment.

Current interim period (From April 1, 2013, to September 30, 2013)
Reportable segments

Sales
Segment income(Operating income)(Millions of yen)
Postedamount to theAdjusted
consolidated
amountquarterly(Note)
statements ofincome

Commercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

OtherTotal

33,73622,782

4,772

61,291

3,632

64,924－64,924

7,327

3,103

403

10,834691

11,526(1,436)

10,089(Note) The (1,436) million yen adjustment posted to Segment income is primarily composed of General andAdministrative Expenses incurred from the administrative department at the head office that are not attributable toany particular segment.

9