DAIICHIKOSHO

CO.,

LTD.

FY2010, the year ending March 31, 2011

Flash Report on the Consolidated Results for the Interim Period Ended
September 30, 2010 [JGAAP]
November 8, 2010

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: (03) 3280-2151
Scheduled Date to Submit the Quarterly Securities Report: November 12, 2010
Start Date for Dividend Payment: December 6, 2010Availability 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 2010 (from April 1, 2010, toSeptember 30, 2010)(1) Consolidated operating results (cumulative) (Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Operating income
Ordinary income¥ Million%¥ Million%¥ Million%
Interim Period ended
60,833
(2.6)
9,124
7.3
9,575
5.8
September 2010Interim Period ended
62,464
0.9
8,502
8.1
9,054
9.1
September 2009
Net income
Interim Period ended
September 2010
Interim Period ended
September 2009

Net income per share¥ Million
5,388%(5.2)¥81.95

Fully diluted net income
per share
¥
―

5,683

12.4

84.36

―

(2) Consolidated financial position
Total assets¥ Million
126,277

Net assets¥ Million
86,421

Interim Period ended
September 2010
Year ended March 2010
125,776
84,054(Reference) Shareholders’ equity
Interim Period ended September 2010: ¥85,506 million
Year ended March 2010: ¥83,226 million

1Equity ratio%
67.7

Net assets per share¥
1,315.12

66.2

1,263.54

DAIICHIKOSHO

CO.,

LTD.

2. Dividend
First Quarter

Second Quarter
Yen
20.00
25.00

Annual dividend
Third Quarter

Year ended March 2010
—Year ending March 2011―
Year ending March 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)

Year ending March 31,
2011 (full year)

Net sales¥ Million127,700(Percentage figures indicate increase/decrease from a year earlier)Operating income
Ordinary income%¥ Million%¥ Million%
1.9
17,200(1.4)
18,100(1.7)

Net income¥ Million
10,100Net income per share%¥Year ending March 31,(5.8)
155.342011 (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
Interim period ended 66,670,596 Year ended March66,670,596(including treasury stock)
September 2010
shares 2010
shares2) Number of shares of treasury
Interim period ended
1,652,813 Year ended March
802,735stock
September 2010
shares 2010
shares3) Average number of sharesInterim period ended 65,747,015 Interim period ended
67,372,711
during the period
September 2010
shares September 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)

Current interim period
FY2009(As of September 30, 2010) (As of March 31, 2010)
CondensedAssets
Current 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
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

330,924
7,152
4,575
7,077
(467)
49,26334,170
7,367
4,371
5,477
(461)
50,926

7,143
14,29518,1907,296
46,926

6,859
13,393
18,213
7,520
45,986

712
8,096
8,808

－
7,420
7,420

13,146
8,502(369)
21,27977,014
126,277

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

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Current interim period
FY2009(As of September 30, 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

4,182
6,113
3,893
1,494
10,35826,042

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

7,009
2,790
2,123
258
1,631
13,81339,855

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

12,35017,28558,976(2,069)86,542

12,35017,28555,563(973)
84,226

(108)
(777)
(150)
(1,036)915
86,421
126,277

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

DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income
Current interim period(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 income
Extraordinary 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 abolishment of qualified pension plan
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

5Previous interim period(From April 1, 2009, toSeptember 30, 2009)

Current interim period(From April 1, 2010, toSeptember 30, 2010)

62,46436,057
26,406
17,904
8,502

60,83334,82826,005
16,881
9,124

92
37
234
27
453
845

81
39
245
23
318
707

139
58
95
293
9,054

100
58
97
256
9,575

9
0－
22－
248
11
291

13
7
148
56
107－
54
387

202
300

149
29－

440－
－
503
8,843
3,865(757)
3,107－
51
5,683

531
17
1,168
8,794
3,863(547)
3,315
5,478
90
5,388DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions 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 for
asset 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
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, 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
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

Previous interim period(From April 1, 2009, toSeptember 30, 2009)

Current interim period(From April 1, 2010, toSeptember 30, 2010)

8,843
6,548
300

8,794
6,005
29－

440

(27)
(60)
394

(23)
(77)
294(200)

35(130)139
193(95)295
217
386(1,155)
15,649131(137)(1,445)
14,198

(120)
100
135
204
(201)
256
470
(1,004)
15,340119(97)(5,293)
10,069(59)
110(5,133)22(1,819)
(534)
－0－
(93)
212
(311)
234
11(7,360)(157)
80(4,334)41(2,127)
(661)
(51)
43
(1,083)
(285)
222
(705)
190
213
(8,614)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 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

7

Previous interim period(From April 1, 2009, toSeptember 30, 2009)

Current interim period(From April 1, 2010, toSeptember 30, 2010)

(45)
2,560
(6,158)(3,026)(984)(6)(7,661)11(812)29,584
28,771362
1,250(3,258)(1,971)(1,096)(9)(4,722)(55)(3,323)33,87730,554DAIICHIKOSHO

CO.,

LTD.

(4) Segment Information
1. Information regarding sales and income/loss by the reportable segments
Current interim period (From April 1, 2010, to September 30, 2010)

30,50919,553

5,964

56,027

4,806

60,833(Millions of yen)
Adjusted
Postedamount amount to theconsolidated
quarterlystatements ofincome—
60,8336,867

2,591691

10,150463

10,613(1,488)Commercial
karaoke

Sales
Segment income[Operating income]

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

OtherTotal

Subtotal

9,124(Reference information)
For reference, “Information regarding sales and income/loss by the reportable segments” for the previous interimperiod, which was prepared in a similar method as for the current interim period, is set out below.
Previous interim period (From April 1, 2009, to September 30, 2009)

30,452

19,815

6,935

57,204

5,260

62,464(Millions of yen)
AdjustedPosted
amount amount to theconsolidated
quarterlystatements ofincome—
62,464

5,940

2,946

864

9,751

357

10,108(1,605)

Commercial
karaoke

Sales
Segment income[Operating income]

Reportable segments
KaraokeMusiccabin andsoftware
restaurant

Other

Total

Subtotal

88,502