DAIICHIKOSHO

CO.,

LTD.

Translation
This report is a translation of excerpts from original Japanese Flash Report and for reference purpose only. In case of discrepancy between this reportand original Japanese Flash Report, the latter shall prevail.

FY2018, the year ended March 31, 2019

Flash Report on the Consolidated Results for the Year Ended March 31, 2019
[JGAAP]May 24, 2019

Company Name:
Stock Exchange Listing:Code Number:
URL:
Representative:
Contact:

DAIICHIKOSHO CO., LTD.
Tokyo Stock Exchange
7458
https://www.dkkaraoke.co.jp/
Tadahiro Hoshi, President
Yasuhisa Nishihara,
Corporate Officer and General Manager, Accounting Department
Phone:+81-3-3280-2151
Date of the Ordinary General Meeting of Shareholders: June 21, 2019
Start Date for Dividend Payment:
June 24, 2019
Scheduled Date to Submit the Securities Report:
June 25, 2019
Availability of Supplementary Briefing Material on Financial Results: Available
Schedule of Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Year Ended March 31, 2019 (From April 1, 2018, to March 31,
2019)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Year ended March 31, 2019Year ended March 31, 2018

143,833
141,370

Operating income
%
1.7
0.5

Millions of yen

19,672
21,103

Ordinary income
%
(6.8)
2.0

Net income attributable to
Basic earnings per shareowners of parent
Millions of yen%
Yen
Year ended March 31, 201915,60018.9
274.43
Year ended March 31, 201813,11518.0
229.97(Note) Comprehensive income:Year ended March 31, 2019: 15,251 million yen 13.1 %Year ended March 31, 2018: 13,489 million yen (6.2) %Millions of yen

20,881
21,857

%
(4.5)
(3.0)

Fully diluted net income
per shareYen
274.08229.75

Ordinary income to total
Operating income to net
assetssales%%%
Year ended March 31, 2019
12.2
11.3
13.7
Year ended March 31, 2018
10.9
11.9
14.9
(Reference) Equity in net income of unconsolidated subsidiaries and affiliates:
Year ended March 31, 2019: ― million yen
Year ended March 31, 2018: ― million yen(Note) The company has applied “Partial Amendments to Accounting Standard for Tax Effect Accounting”(Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 2018) and such, starting fromthe beginning of the consolidated fiscal year ended March 31, 2019. Accordingly, the accounting standard has
been retroactively applied to ordinary income to total assets for the year ended March 31, 2018.
Return on equity

1

DAIICHIKOSHO

CO.,

LTD.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

%
69.3
68.7

Net assets per shareYen
2,310.79
2,173.02

As of March 31, 2019
188,814132,636
As of March 31, 2018180,190
125,356(Reference) Shareholders’ equity:
As of March 31, 2019:
130,915 million yen
As of March 31, 2018:
123,792 million yen(Note) The company has applied “Partial Amendments to Accounting Standard for Tax Effect Accounting”(Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 2018) and such, startingfrom the beginning of the consolidated fiscal year ended March 31, 2019. Accordingly, the accounting
standard has been retroactively applied to total assets and equity ratio for the year ended March 31, 2018.

(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

30,22133,303(14,192)(22,841)(9,547)(21,951)

56,43949,736

2. DividendYear ended March 31, 2018Year ended March 31, 2019Year ending March 31,
2020 (forecast)First Quarter
Yen――

Second Quarter
Yen
55.00
56.00

Annual dividend
Third Quarter
Yen――

Year-end
Yen
56.00
56.00

AnnualYen
111.00112.00

―

56.00

―

57.00

113.00Aggregate amount ofdividend (total)

Payout ratio (consolidated)
%
48.3
40.8

Millions of yen

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31,
2020 (forecast)

6,323
6,362

Ratio of dividends to net
assets (consolidated)
%
5.2
5.0

48.9

3. Forecast Consolidated Performance for FY2019, the Year Ending March 31, 2020 (From April 1,
2019, to March 31, 2020)(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
Millions of yen
Millions of yen
Millions of yen%%%
Net sales

Six months ending
September 30, 2019Year ending March 31,
2020 (full year)

70,5001.0

9,300(11.2)

9,800(12.7)

145,900

1.4

20,2002.7

21,2001.5

Net income attributable toowners of parent
Millions of yen%
Six months ending
September 30, 2019Year ending March 31,
2020 (full year)

Basic earnings per share
Yen

6,200

(14.5)

109.44

13,100(16.0)

231.23

2

DAIICHIKOSHO

CO.,

LTD.

*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting inchanges in scope of consolidation): None
(2) 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 (2) 1): None
3) Changes due to accounting estimation change: None
4) Error correction: None
(3) Number of common shares issued
1) Number of shares issued
As of57,234,200 As of
57,234,200(including treasury shares)
March 31, 2019
shares March 31, 2018
shares2) Number of shares of treasury
As of580,290 As of
266,228
sharesMarch 31, 2019
shares March 31, 2018
shares3) Average number of sharesYear ended
56,847,498 Year ended
57,031,005
during the period
March 31, 2019
shares March 31, 2018
shares(Reference) Outline of Nonconsolidated Financial Results
1. Nonconsolidated Performance for the Year Ended March 31, 2019 (From April 1, 2018, to March 31, 2019)(1) Nonconsolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Operating income
Ordinary income
Millions of yen
Millions of yen
Millions of yen%%%
Year ended March 31, 2019
100,1910.5
14,318(8.0)
16,319(5.3)
Year ended March 31, 2018
99,709(1.6)
15,563
0.4
17,229(6.2)
Net income
Millions of yen

Year ended March 31, 2019Year ended March 31, 201812,466
10,857

Fully diluted net income
per shareYen
219.03190.19Basic earnings per share
%
14.8
12.9

Yen
219.31
190.37(2) Nonconsolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

As of March 31, 2019
140,538
As of March 31, 2018
129,389(Reference) Shareholders’ equity:
As of March 31, 2019: 82,738 million yen
As of March 31, 2018: 78,776 million yen

83,041
78,979Equity ratio

Net assets per share
%
Yen
58.9
1,460.42
60.9
1,382.82* These consolidated financial results are outside the scope of audit by Certified Public Accountants or auditing
corporations.
* 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.

3

DAIICHIKOSHO

CO.,

LTD.

Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Karaoke equipment for rental
Accumulated depreciation
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities
Accumulated depreciation
Karaoke cabin and restaurant facilities, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

FY2017(As of March 31, 2018)

FY2018(As of March 31, 2019)45,538
5,132
4,969
6,252
5,660
(175)
67,37857,182
5,205
－
5,464
6,762
(133)
74,482

15,767(9,065)
6,702
45,957(36,163)
9,794
49,809(30,509)
19,29938,053
5,952(4,395)
1,556
75,405

14,645(8,741)
5,903
47,462(38,353)
9,108
52,002(32,540)
19,462
39,794
5,796(4,451)
1,345
75,614

4,065
6,198
10,263

3,407
6,944
10,351

5,288
506
5,468
14,2631,682(65)
27,142
112,812180,190

4,849
546
6,110
14,976
1,956(71)
28,366
114,332
188,814DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of bonds
Accounts payable - other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
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 benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

FY2017(As of March 31, 2018)

FY2018(As of March 31, 2019)

3,421
4,015
－
8,656
4,652
1,128
3,489
25,365

3,469
3,264
6,500
8,979
6,030
1,156
3,710
33,111

6,500
12,58755－
11,890
45

1,047

909

6,176
3,101
29,46954,8346,670
3,550
23,06656,17812,350
4,003
108,489(1,309)123,534

12,350
4,003
117,709(2,986)
131,077

1,261
(733)
87
(356)
258
203
1,359
125,356
180,190

814
(733)
47
(289)
(161)
302
1,417
132,636
188,814DAIICHIKOSHO

CO.,

LTD.

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Packing and freight expenses
Remuneration for directors (and other officers)
Provision for retirement benefits for directors (and otherofficers)
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Commission income
Cooperative monetary aid received
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Cancellation penalty
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on acquisition of non-current assets
Gain on sales of investment securities
Compensation income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of investments in capital
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

6

FY2017(From April 1, 2017, to
March 31, 2018)

FY2018(From April 1, 2018, to
March 31, 2019)

141,370
86,527
54,842

143,833
89,55554,277

2,177
1,355
817
1,452

2,284
1,548
807
1,424

221

153

13,630
860
601
1,045
734
10,84133,73921,103

13,707
879
596
1,058
802
11,34434,605
19,672

63
173
335
－
840
1,413

53
156
378
214
855
1,658

302
31
41
284
658
21,857

159
－
133
156
449
20,881

103
24
0
193
320

5,952
－
61
－
6,013

261
1,112
－
1,374
20,804
7,638
(3)
7,634
13,16954
13,115

366
1,828
97
2,292
24,602
9,465
(533)
8,931
15,67170
15,600DAIICHIKOSHO

CO.,

LTD.

(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

7

FY2017(From April 1, 2017, to
March 31, 2018)

FY2018(From April 1, 2018, to
March 31, 2019)13,16915,671

228
7
83
319
13,489

(446)
(40)
67
(420)
15,251

13,434

15,1805470

DAIICHIKOSHO

CO.,

LTD.

(3) Consolidated Statements of Changes in Net Assets
FY2017 (from April 1, 2017, to March 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

12,350

Balance at beginning of current period

Retainedearnings

4,003

Treasury shares

102,649(1,368)

Total
shareholders’equity117,634

Changes of items during period
Dividends of surplus
Net income attributable to ownersof parent
Purchase of treasury shares(6,275)(6,275)

13,115

13,115(1,001)
77
983

(16)
(983)

Disposal of treasury shares
Retirement of treasury shares
Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity
Total changes of items during period(1,001)
61－－－
12,350

Balance at end of current period

5,840
108,489

－
4,003

59
(1,309)5,899
123,534

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Net income attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
shares
Reversal of revaluation
reserve for land
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodValuationdifference on
available-for-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

1,033

(733)

80

Remeasurementsof defined benefit
plans

(440)

Total
accumulated
othercomprehensive
income(60)

ShareacquisitionrightsNon-controllinginterests

Total net
assets178

1,316

119,069(6,275)
13,115(1,001)
61
－
－
228

－

7

83

319

25

42

387

228

－

7

83

319

25

42

6,286

1,261

(733)

87

(356)

258

203

1,359

125,3568

DAIICHIKOSHO

CO.,

LTD.

FY2018 (from April 1, 2018, to March 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

12,350

Balance at beginning of current period

Retainedearnings

4,003

Treasury shares

108,489(1,309)Total
shareholders’equity123,534

Changes of items during period(6,380)

Dividends of surplus
Net income attributable to ownersof parent
Purchase of treasury shares(6,380)15,60015,600(1,677)(1,677)－－

Disposal of treasury shares
Retirement of treasury shares
Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity
Total changes of items during period(0)－12,350

Balance at end of current period

(0)

9,220
117,709－
4,003(1,677)(2,986)

7,543
131,077

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Net income attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
shares
Reversal of revaluation
reserve for land
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodValuationdifference on
available-for-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

1,261

(733)

87

Remeasurementsof defined benefit
plans

(356)

Total
accumulated
othercomprehensive
incomeShare
acquisitionrightsNon-controllinginterests

Total net
assets

258

203

1,359

125,356(6,380)15,600(1,677)
－
－
(0)
(446)

0

(40)

67

(420)

99

58

(262)

(446)

0

(40)

67

(420)

99

58

7,280

814

(733)

47

(289)

(161)

302

1,417

132,6369DAIICHIKOSHO

CO.,

LTD.

(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2017(From April 1, 2017, to
March 31, 2018)
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Gain on acquisition of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on disposal of non-current assets
Loss on valuation of investments in capital
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 dividend income received
Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time 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
Proceeds from sales of investment securities
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments of loans receivableCollection of loans receivable
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

10

FY2018(From April 1, 2018, to
March 31, 2019)

20,804
15,692711
1,112

24,602
15,108
658
1,828

(6)

(137)

(170)
302
28
(24)
(0)
157
－
1,693
(69)
37
18
(1,529)772
39,532
168(321)(6,113)38
33,303

(199)
159
(221)
－
(61)
(5,585)
97
(77)
784
76
48
423
784
38,289199(160)(8,107)－30,221(571)
565(12,589)
94(3,884)(1,537)
5
－

(54)
81
(15,263)8,889(4,467)(1,766)61(181)(5,142)

－

(422)
503
(588)
631
95
(22,841)(440)
484(2,094)547
10(14,192)

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2017(From April 1, 2017, to
March 31, 2018)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Cash dividends paid
Purchase of treasury shares
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

(39)
1,400
(12,505)(3,500)(6,278)(1,001)(26)(21,951)(28)(11,518)
61,25449,73611

FY2018(From April 1, 2018, to
March 31, 2019)
(273)
820
(2,016)－(6,381)(1,677)(18)(9,547)
221
6,702
49,73656,439DAIICHIKOSHO

CO.,

LTD.

Notes to the Quarterly Consolidated Financial Statements(Segment Information)
FY2017 (From April 1, 2017, to March 31, 2018)(Millions of yen)
Commercial
karaoke

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Subtotal

Other

Total

Adjusted
amount(Note)

Postedamount to theconsolidated
statements ofincomeSales
Sales to third parties
Intersegment sales
and transfers
Total
Segment income or
Segment loss
(Operating income or
Operating loss)
Other items
Depreciation andamortization
Amortization of
goodwill

64,43061,0097,799

133,2398,130

141,370－

141,370

－

－

－

－

－

－

－

－

64,43061,0097,799

133,2398,130

141,370－

141,370

14,333

7,956

(33)

22,256

1,659

23,915(2,812)

21,103

9,699

3,295

34

13,029577

13,607

177

13,784

2

709

－

711

－

711

－

711

Note: The (2,812) million yen adjustment posted to segment income or segment loss is primarily composed of generaland administrative expenses incurred by the administrative department at the head office that are not attributable toany particular reportable segment.

FY2018 (From April 1, 2018, to March 31, 2019)(Millions of yen)
Commercial
karaoke

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Subtotal

Other

Total

Adjusted
amount(Note)

Postedamount to theconsolidated
statements ofincomeSales
Sales to third parties
Intersegment sales
and transfers
Total
Segment income or
Segment loss
(Operating income or
Operating loss)
Other items
Depreciation andamortization
Amortization of
goodwill

63,444

63,7997,788

135,0318,801

143,833－

143,833

－

－

－

－

－

－

－

－

63,444

63,7997,788

135,0318,801

143,833－

143,833

12,926

8,001

(84)

20,844

1,581

22,425(2,752)

19,672

9,227

3,172

36

12,436594

13,031

182

13,213

2

655

－

658

－

658

－

658

Note: The (2,752) million yen adjustment posted to segment income or segment loss is primarily composed of generaland administrative expenses incurred by the administrative department at the head office that are not attributable toany particular reportable segment.

12