Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2016
[Japanese GAAP] (Consolidated)
August 12, 2015
Stock Listing: TSE

Name of Listed Company:
UCHIYAMA HOLDINGS INC.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Fumiharu Uchiyama, President and Representative Director
Contact Point: Takehiro Yamamoto, Senior Managing Director and Manager of Business Planning Office
Phone: (093) 551-0002
Scheduled Date of Dividend Payment Start:―
Scheduled Date of Financial Statements Filing:
August 13, 2015
Supplementary materials for Financial Results: None
Investor conference for Financial Results: None

(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2016 (April 1, 2015 – June 30, 2015)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

Millions of yen

5,619
(1.8)
(17)
－
5,720
12.0
367
(22.6)FY 2016 1Q: ¥ 94 million (-55.5%)

FY 2016 1Q
FY 2015 1Q(Note) Comprehensive income

Net income
per share
FY 2016 1Q
FY 2015 1Q%

Millions of yen%

29(92.0)
92(55.2)
371(21.9)
206(27.1)FY 20151Q: 211 million (-27.4%)

Diluted net income per
share
Yen

Yen

4.29
9.56

4.28
9.55

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2016 1Q
FY 2015(Reference) Equity capital:

Equity ratio

Millions of yen

32,76332,693
FY 20161Q: ¥15,364 million%

15,371
46.9
15,38647.0
FY 2015: ¥15,378 million

2. Dividends
Dividends per share
End of the 1Q

End of the 2Q

Yen

FY 2015－
FY 2016－
FY 2016 (forecast)(Note) Changes from the latest dividend forecast: None

Year-end

End of the 3Q

Annual

Yen

Yen

Yen

Yen

6.00

－

5.00

11.00

5.00

－

5.00

10.00

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2016 (April 1, 2015 – March 31, 2016)(% of change from previous year for full year, same quarter of the previous year for 2Q)

Net sales
Millions of yen

Operating income%

Millions of yen

2Q
12,3586.4
697(cumulative)
Full year
25,6708.6
1,673(Note) Changes from the latest financial forecast: None

Profit attributable toowners of parent

Ordinary income

Net income
per share%

Millions of yen%

Millions of yen

%

Yen

(7.0)

730

(11.9)

433

(9.4)

20.07

16.8

1,696

9.1

1,054

(18.2)

48.78

*Notes(1) Important transfers in subsidiaries during the consolidated cumulative first quarter of this fiscal year: None
(2) Special accounting policies applied in preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement:
1) Changes in accounting policies due to revisions of accounting standards: Yes
2) Changes in accounting policies due to reasons other than above 1):
None3) Changes in accounting estimates:
None4) Restatements:
None
For further details, please refer to appendix on Page 5, “2. Notes on Summary Information (Notes), (3) Changes in
Accounting Policies, Changes in Accounting Estimates, and Restatement.”(4) Number of outstanding shares (common stock)1) Number of outstanding shares (including treasury
stock) at end of term2) Number of treasury stock at end of term3) Average number of shares

FY 2016 1Q

21,618,800 shares

FY 2015

21,618,800 shares

FY 2016 1Q

376 shares

FY 2015376 shares

FY 2016 1Q

21,618,424 shares

FY 2015 1Q

21,618,424 shares* Information Regarding Implementation of Quarterly Review ProceduresThe quarterly auditing procedures of the Financial Instruments and Exchange Act do not apply to the financial results, andat the time of release the review procedures of financial statements have not been completed in accordance with the
Financial Instruments and Exchange Act.

* Statement regarding the proper use of financial forecasts and other remarks
 Descriptions regarding the future, including the financial projections contained in this report, are based on certain
assumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable. Actual
financial results may significantly vary due to various factors. For assumptions used in forecasting financial results andprecautions in using the financial projections, please refer to appendix on Page 4, “1. Qualitative Information Concerning
Financial Results (3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections.” We hold a meeting for explaining our businesses and results to individual investors when necessary. For the schedule of themeeting, etc., please see the website of our company.

○Table of contents of the appendix

1. Qualitative Information Concerning Financial Results ................................................................................................................ 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 4(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ........................................................... 4
2. Notes on Summary Information (Notes) ...................................................................................................................................... 5(1) Important Transfers in Subsidiaries during the Consolidated Cumulative First Quarter of This Fiscal Year .......................... 5(2) Special Accounting Policies Applied in Preparation of the Quarterly Consolidated Financial Statements ............................. 5(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement .......................................................... 5
3. Consolidated Financial Statements ............................................................................................................................................... 6(1) Consolidated Balance Sheets .................................................................................................................................................. 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 8(3) Notes Regarding Consolidated Financial Statements .............................................................................................................10(Notes Regarding Premise of a Going Concern) .....................................................................................................................10(Notes on Significant Changes in the Amount of Shareholders’ Equity) .................................................................................10(Segment Information, etc.) .....................................................................................................................................................10

1

1. Qualitative Information Concerning Financial Results(1) Analysis Concerning Results of Operations(Results of operations during the first quarter of current FY)
In the first quarter of this consolidated fiscal year, the Japanese economy is recovering gently, as corporate performance has
improved due to the yen depreciation and the low prices of crude oil.
The recovery of the global economy is gentle, as the U.S. economy has been recovering in a healthy manner, but there aresome uncertainties, including the risk of a downturn of the Chinese economy and the Greek debt issue.
Amid this business environment, our corporate group has carried out sales activities, etc. actively based on our businessstrategies in each segment. In addition, we made efforts to improve the added values of our services, by planning andimplementing various measures for boosting synergetic effects among Nursing Care, Karaoke, and Restaurant Businesses.
As for expenditures, we streamlined our business administration by reducing costs, to stabilize our business performance.
As a result, sales of the first quarter of the current consolidated fiscal year were 5,619,192 thousand yen (down 1.8% Year-onYear (YoY)), operating loss was 17,448 thousand yen (operating income was 367,616 thousand yen during the same term lastyear), ordinary income was 29,573 thousand yen (down 92.0% YoY), and profit attributable to owners of patent was 92,704
thousand yen (down 55.2% YoY).
The results of each segment were as follows.
(1) Nursing Care Business
For the Nursing Care Business segment, we established the group home “Sawayaka Group Home Nasumachi (18 beds)” in
April, and the charged nursing home for the elderly with a short-stay facility “Sawayaka Kanuma-kan (50 beds for the
charged nursing home for the elderly, 14 beds for short stay)” and the charged nursing home for the elderly “Sawayaka
Ohmiya-kan (50 beds)” in May. Accordingly, we have 64 business sites and 127 offices as of the end of the first quarter ofthis fiscal term. In order to decrease the vacant rooms of our existing facilities, we strived to cement the cooperative relations
with nearby hospitals and in-home nursing care supporting offices by visiting them. On the other hand, there were
expenditures as the remuneration rate for nursing care decreased in Apr. 2015 and some fixed costs, including management
personnel and facilities maintenance expenses, for the charge nursing-care homes for the elderly established in the previous
term and this quarter, and this affected the income for this quarter. As a result, sales were 3,035,593 thousand yen (up 10.3%
YoY) and segment income was 112,507 thousand yen (down 49.8% YoY).
(2) Karaoke Business
For the Karaoke Business segment, we made efforts to recover the number of customers by renewing 7 existing stores, etc.
We also strived to increase repeat customers by promoting all-you-can-drink courses and the special membership privilege
for customers aged over 65 “Sawayaka Gold Member’s Card.” As a result, sales were 1,995,920 thousand yen (down 2.7%
YoY) and segment income was 124,689 thousand yen (down 61.2% YoY). In this quarter, we did not open any new stores,
but closed one store. Accordingly, the number of stores is 98 as of the end of this quarter.
(3) Restaurant Business
For the Restaurant Business segment, we renewed one existing store. In addition, we opened the second overseas store“Kantekiya Thonglor” in Bangkok, Thailand in March. Accordingly, the number of stores as of the end of this first quarter is
30. At existing stores, the number of customers is decreasing, and so we made efforts to increase customers with limited
offers and promote drinking parties, etc. by visiting companies, to increase corporate clients. As a result, sales were 474,260
thousand yen (down 0.7% YoY) and segment loss was 19,651 thousand yen (segment income was 32,655 thousand yen
during the same term last year).
(4) Real Estate Business
For the Real Estate Business segment, the Company Group’s core businesses activities are sales/purchase of real estate2

properties for sale and intermediary work for rental properties. As a result, sales were 44,245 thousand yen (down 87.5%
YoY) and segment income was 7,567 thousand yen (down 69.0% YoY).
(5) Other businesses
In the Other businesses segment, for the hotel business, the Company Group made efforts to increase guests using
advertisement media in order to secure demand associated with increasing domestic travels influenced by depreciation of yen.
As a result, sales were 69,172 thousand yen (down 18.3% YoY) and segment loss was 321 thousand yen (segment income
was 316 thousand yen during the same term last year).

3(2) Analysis Concerning Financial Situation
Total assets as of the end of the first quarter of this consolidated fiscal year came to 32,763,060 thousand yen, up 69,882
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 15,550,419 thousand yen, down 651,107 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because cash and deposit decreased.
Noncurrent assets came to 17,212,640 thousand yen, up 720,990 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because buildings and structures, investments and other assets increased.
Liabilities as of the end of the first quarter of this consolidated fiscal year came to 17,391,078 thousand yen, up 83,916
from the end of the previous consolidated fiscal year.
Current liabilities came to 7,412,531 thousand yen, up 332,385 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because short-term loans payable and provision for bonuses augmented while notes and accounts
payable-trade and current portion of long-term loans payable decreased.
Noncurrent liabilities came to 9,978,546 thousand yen, down 248,469 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because long-term loans payable decreased.
Net assets as of the end of the first quarter of this consolidated fiscal year came to 15,371,981 thousand yen, down 14,033
thousand yen from the end of the previous consolidated fiscal year. This is mainly because retained earnings increased due tothe posting of profit attributable to owners of parent, and decreased due to the payment of dividends.
Consequently, the equity ratio as of the end of the first quarter of this consolidated fiscal year was 46.9%. As for theliquidity of funds, the current ratio as of the end of the first quarter of this consolidated fiscal year was 209.8%. We will boost
this ratio, in order to secure sufficient liquidity.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2016, there are no changes to the estimated values
announced on May 11, 2015.

4

2. Notes on Summary Information (Notes)(1) Important Transfers in Subsidiaries during the Consolidated Cumulative First Quarter of This Fiscal Year
None(2) Special Accounting Policies Applied in Preparation of the Quarterly Consolidated Financial Statements
None(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement
The “Accounting Standard for Business Combination” (ASBJ Statement No. 21, September 13, 2013), the “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and the “Revised
Accounting Standard for Business Divestures,” (ASBJ Statement No. 7, September 13, 2013) shall be applied from theconsolidated first quarter of this fiscal year. We changed the indication of quarterly net profit, etc. and shifted from minority
interest to non-controlling interest.
In order to reflect these revisions, quarterly and annual consolidated financial statements for the previous consolidated
cumulative first quarter and the previous consolidated accounting period have been reproduced.

5

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
FY ended March 31, 2015
(As of March 31, 2015)(Thousands of yen)
1Q of FY ending March 31,
2016(As of June 30, 2015)

AssetsCurrent assets
Cash and deposits

11,925,172

11,178,439

1,418,113
72,3501,414,189
65,535

720,14939

779,299
39

Other
Allowance for doubtful accounts

2,086,535(20,833)

2,134,521(21,605)

Total current assets

16,201,527

15,550,419

7,129,636
3,729,127

7,401,153
3,733,018

Notes and accounts receivable-trade
Merchandise
Real estate for sale
Supplies

Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

1,447,276

1,330,189

Total property, plant and equipment

12,306,040

12,464,362

61,18260,118

Other
Allowance for doubtful accounts

4,212,393(87,966)

4,775,680(87,520)

Total investments and other assets

4,124,427

4,688,159

16,491,650

17,212,640

32,693,177

32,763,060

Intangible assets
Investments and other assets

Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade

331,926

266,287

Short-term loans payable
Current portion of bonds

1,489,000
35,0001,922,000
35,000Current portion of long-term loans payable
Income taxes payable

2,589,297
140,465

2,518,577
80,202

197,316
271,571297,573
299,448

Provision for shareholder benefit program
Other

12,0502,013,518

12,0501,981,392

Total current liabilities

7,080,146

7,412,531

Bonds payable
Long-term loans payable

35,0008,281,439

35,0008,111,973

Asset retirement obligation
Other

199,9091,710,666

208,691
1,622,882

Total noncurrent liabilities

10,227,016

9,978,546

17,307,162

17,391,078

Provision for bonuses
Provision for point card certificates

Noncurrent liabilities

Total liabilities

6

FY ended March 31, 2015
(As of March 31, 2015)(Thousands of yen)
1Q of FY ending March 31,
2016(As of June 30, 2015)

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,222,935
2,676,892

2,222,935
2,676,892

Retained earnings
Treasury stock

10,446,116(237)

10,430,729(237)

Total shareholders' equity

15,345,707

15,330,319

31,89733,582705

1,031

32,602

34,613

7,705

7,048

Total net assets

15,386,015

15,371,981

Liabilities and net assets

32,693,177

32,763,060

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeNon-controlling interests in income7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Cumulative period through the consolidated first quarter of current fiscal year
1Q of FY ended March 31,
2015(April 1,2014- June 30, 2014)
5,720,500(Thousands of yen)
1Q of FY ending March 31,
2016(April 1,2015- June 30, 2015)
5,619,192

Cost of sales

4,999,458

5,249,317

Gross profit

721,042

369,874

Selling, general and administrative expenses

353,425

387,322

Operating income (loss)

367,616(17,448)

Interest income
Dividends income

1,785
508

1,934
1,027

Commission fee
Subsidy income

12,525
1,747

17,20745,820Other

29,735

15,930Total non-operating income

46,302

81,919Interest expenses
Other34,465
7,678

33,2991,599

Total non-operating expenses

42,14434,898371,775

29,573Gain on sales of noncurrent assets-

123,537

Total extraordinary income-

123,537

Income before income taxes

371,775

153,110

Income taxes-current
Income taxes-deferred

152,273
12,75762,196(794)

Total income taxes

165,031

61,402

Net income

206,744

91,708-(995)

206,744

92,704

Net sales

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Net profit (loss) before non-controlling interests
Profit attributable to owners of parent

8

Consolidated Statements of comprehensive income
Cumulative period through the consolidated first quarter of current fiscal year
1Q of FY ended March 31,
2015(April 1,2014- June 30, 2014)
206,744(Thousands of yen)
1Q of FY ending March 31,
2016(April 1,2015- June 30, 2015)
91,708Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

4,804

1,685

-

664

Total other comprehensive income

4,804

2,349

Comprehensive income

211,548

94,058Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

211,548

94,715-(656)

Net income9(3) Notes Regarding Consolidated Financial Statements(Notes Regarding Premise of a Going Concern)
Nothing is applicable.

(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Nothing is applicable.

(Segment Information, etc.)
I. Cumulative period through the consolidated first quarter of the previous fiscal year (April 1 – June, 30, 2014)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Others

Total

Adjustment

Consolidatedbalance sheet

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

2,752,855

2,052,190

477,375

353,391

5,635,812

84,6885,720,500―

5,720,500―

74

11,891

2,632

14,59829

14,627(14,627)―

2,752,855

2,052,265

489,266

356,0245,650,411

84,717

5,735,128(14,627)

5,720,500

224,219

320,957

32,65524,411

602,243316

602,560(234,943)

367,616

Total(Note) *1

Amount*2

amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business and communication business.
2. The segment income adjustments amount, -234,943 thousand yen, includes -349,634 thousand yen in company-wide
expenses that are not allocated to reporting segments and 114,690 thousand yen in inter-segment eliminations. The
company-wide expenses are mainly selling, general and administrative expenses that are not allocated to reporting
segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.

10I. Cumulative period through the consolidated first quarter of current fiscal year (April 1 – June, 30, 2015)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Others

Total

Adjustment

Consolidatedbalance sheet

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

3,035,593

1,995,920

474,260

44,2455,550,019

69,1725,619,192―

5,619,192

―

76

9,913

―

9,989

―

9,989

(9,989)―3,035,593

1,995,996

484,173

44,2455,560,009

69,172

5,629,181(9,989)5,619,192

112,507

124,689(19,651)

7,567

225,112(321)

224,790(242,238)(17,448)

Total(Note) *1

Amount*2

amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business and communication business.
2. The segment income adjustments amount, -242,238 thousand yen, includes -357,170 thousand yen in company-wide
expenses that are not allocated to reporting segments and 114,931 thousand yen in inter-segment eliminations. The
company-wide expenses are mainly selling, general and administrative expenses that are not allocated to reporting
segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.
(Significant subsequent event)
Sawayaka Club Co., Ltd., which is a consolidated subsidiary of our company, concluded a contract for taking over thebusiness of operating charged nursing-care homes for the elderly from Yorozuya Yugen Kaisha based on the resolution at
the meeting of the board of directors on July 3, 2015.
1. Purpose in taking over the business
Sawayaka Club Co., Ltd., which is a consolidated subsidiary of our company, considers that it is important to increase thenumber of established nursing-care facilities as a growth strategy, and taking over the business would enable us toincrease facilities and expand our businesses in Kyushu, especially Oita.
2. Outline of the transferred business(1) Name of the other company: Yorozuya Yugen Kaisha(2) Content of the transferred business: Businesses regarding the operation of charged nursing-care homes for theelderly
3. Price of the transfer
Transfer price: 215,000 thousand yen
4. Goodwill amount, the reason why goodwill emerged, amortization method and period
To be determined.

11

5. Major breakdown of assets that have increased through the business transfer
Transferred assets and liabilities are being calculated.
6. Date of business transfer (scheduled)Oct. 1, 201512