Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2017
[Japanese GAAP] (Consolidated)
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:
December 5, 2016
Scheduled Date of Financial Statements Filing:
November 14, 2016
Supplementary materials for Financial Results: Yes
Investor conference for Financial Results: Yes (For institutional investor and analysts)

November 11, 2016
Stock Listing: TSE(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2017 (April 1, 2016 – September 30, 2016)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of patentMillions of yen%

Millions of yen%

FY 2017 2Q
12,135
3.5
216
182.1
FY 2016 2Q
11,7271.0
76(89.8)(Note) Comprehensive income
FY 2017 2Q: ¥203 million (-47.2%)
Net income
per share
FY 2017 2Q
FY 2016 2Q

Millions of yen%

Millions of yen

%

350
118.3
209
160
(80.7)
445
FY 2016 2Q: 384 million (-21.0%)(53.0)(7.0)

Diluted net income per
share
Yen

Yen

10.79
20.60

10.77
20.57

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2017 2Q
FY 2016(Reference) Equity capital:

Equity ratio

Millions of yen

30,48030,912
FY 2017 2Q: ¥15,038 million%

15,03849.3
15,28549.4
FY 2016: ¥15,284 million

2. Dividends
Dividends per share
End of the 1Q

End of the 2Q

Yen

Year-end

End of the 3Q

Yen

Yen

AnnualYen

Yen

FY 2016
5.00
5.00
10.00
－
－
FY 2017
5.00－
FY 2017 (forecast)
5.00
10.00
－
(Note) Changes from the latest dividend forecast: None
The company will factor in the profit earned between April 1, 2016 and September 30, 2016 to the possible amountfor distribution, and will prepare provisional financial statements with September 30, 2016 being the settlement date.
At the board meeting held today a vote has been taken on the aforementioned financial statements, and regarding theallotment of surplus (interim dividends) with September 30, 2016 as the reference date.
3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)(% 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

Full year
25,6187.2
898(Note) Changes from the latest financial forecast: None

Profit attributable toowners of patent

Ordinary income
%

597.8

Millions of yen

907

%

179.5

Millions of yen

614

Net income
per share%Yen(37.5)

30.77

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) Application of the accounting procedures for producing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements:
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
Note: For details, please see the section “2. Notes on Summary Information (Notes) (3) Changes in Accounting Policies,
Changes in Accounting Estimates, and Restatement” on page 4 of the Appendix.
(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 2017 2Q

21,618,800 shares

FY 2016

21,618,800 shares

FY 2017 2Q

2,287,776 shares

FY 2016

1,652,676 shares

FY 2017 2Q

19,408,894 shares

FY 2016 2Q

21,618,424 shares* Information Regarding Implementation of Auditing Procedures

The auditing procedures of the Financial Instruments and Exchange Act do not apply to this financial notice, and at thetime of release it is being audited using procedures for financial statements.

* 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 “Analysis Concerning Future Forecasts Including
Consolidated Financial Projections” on page 3 of the Appendix.
 A meeting for explaining the businesses and results to individual investors will be held when necessary. For the schedule ofthe meeting, etc., please see the website of the company.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 3(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 Second 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(4) Additional Information ........................................................................................................................................................... 5
3. Consolidated Financial Statements ............................................................................................................................................... 6(1) Consolidated Balance Sheets .................................................................................................................................................. 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 8(3) Consolidated Statements of Cash Flows ................................................................................................................................10(4) Notes Regarding Consolidated Financial Statements.............................................................................................................12(Notes regarding premise of a going concern) .........................................................................................................................12(Notes on significant changes in the amount of shareholders’ equity) .....................................................................................12(Segment information, etc.) .....................................................................................................................................................121

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
Future-related items mentioned in this document are based on the information available at our corporate group as of thelast day of the current quarter of the consolidated accounting period, and include uncertain contents. Please keep in mind thatthey may be different from actual results.
(1) Performance situation
In the second quarter of the current consolidated fiscal year, the Japanese economy saw the deceleration of businessresults and a slump in the stock market due to the advancing appreciation of the yen, and both corporate profits and consumer
spending were weak. In addition, despite the fact that the situation is gradually returning to normal after the Kumamoto
Earthquake in mid-April, there are worries for the future of the global economy due to the UK’s withdrawal from the EU andthe deceleration of emerging nations’ economies, including China, and the uncertain situation is still continuing.
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 second quarter of the current consolidated fiscal year were 12,135,802 thousand yen (up 3.5% Yearon-Year (YoY)), operating income was 216,194 thousand yen (up 182.1% YoY), and ordinary income was 350,085 thousandyen (up 118.3% YoY). In the second quarter of the previous consolidated fiscal year, there was an extraordinary income of
557,283 thousand yen from the sale and leaseback of one paid elderly nursing home, and proceeds on sale of noncurrent
assets, including karaoke equipment and land. However, as there was no extraordinary income in the second quarter of thecurrent consolidated fiscal year, profit attributable to owners of patent decreased by 235,882 thousand yen to 209,449
thousand yen (down 53.0% YoY).
The results of each segment were as follows.
1) Nursing Care Business
For the Nursing Care Business segment, three new “Sawayaka Ai-no-ie” day service centers for after school support forchildren with disabilities were established, and our corporate group established its first office, “Home Nursing Station
Yahata” in September. Accordingly, the number of sales footholds as of the end of the second quarter is 75 (141 offices). At
existing facilities, we aimed to stabilize occupancy ratio and reduce the number of vacant rooms by promoting thecementing of cooperation with nearby hospitals and home care support offices by visiting them. We also announced that wewould welcome elderly victims of the Kumamoto Earthquake, which occurred in mid April, free of charge, and a total of 38
victims moved into our facilities. As a result, sales were 7,039,309 thousand yen (up 13.2% YoY) and segment income was509,545 thousand yen (up 91.0% YoY).
2) Karaoke Business
For the Karaoke Business segment, we strived to increase customers for all-you-can-drink courses, etc. and mobileservice members for smartphones, to increase repeat customers, and utilized the informative websites for restaurants actively,
to attract customers. However, in the wake of the Kumamoto Earthquake in April, 3 restaurants in Kumamoto Prefecture
were closed for about 1 week, and customers in the entire Kyushu region decreased. As a result, sales were 4,002,710
thousand yen (down 5.1% YoY) and segment income was 249,870 thousand yen (down 17.5% YoY). In the second quarterof the current consolidated fiscal year, we did not open any new stores, but closed one store. Accordingly, the number ofstores is 96 as of the end of this quarter.
3) Restaurant Business
For the Restaurant Business segment, 2 restaurants changed its business type. Also, 1 restaurant was opened and 3
restaurants were closed down. Consequently, the number of restaurants as of the end of the second quarter is 23 in Japan,2and 3 outside Japan. As for existing restaurants, customers were decreasing, and so we strived to increase them with alimited offer, and made efforts to meet the demand for banquets, etc. by visiting each enterprise, to increase corporate
customers. However, one restaurant was closed for about 1 week due to the Kumamoto Earthquake, like the Karaoke
Business, and the number of customers was on a decline. As a result, sales were 882,344 thousand yen (down 6.7% YoY)
and segment loss was 33,369 thousand yen (segment loss was 46,873 thousand yen during the same term last year).
4) Real Estate Business
For the Real Estate Business segment, our corporate group’s core businesses activities are sales/purchase of real estate
properties for sale and intermediary work for rental properties. As a result, sales were 100,138 thousand yen (down 53.3%
YoY) and segment income was 26,857 thousand yen (down 56.8% YoY).
5) Other businesses
In the Other businesses segment, mainly in the hotel business, the company made efforts to increase guests, securebookings for parties, promote day trips for bathing, etc. However, in April the business was greatly affected by the
Kumamoto Earthquake, and the number of guests decreased. As a result, sales were 111,299 thousand yen (down 16.2%
YoY) and segment loss was 14,381 thousand yen (segment loss was 1,125 thousand yen during the same term last year).

(2) Analysis Concerning Financial Situation
1) Status of assets, liabilities and net assets
Total assets as of the end of the second quarter of this consolidated fiscal year came to 30,480,988 thousand yen, down
431,420 thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 13,161,856 thousand yen, down 937,059 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because cash and deposit and current assets (other) decreased.
Noncurrent assets came to 17,319,131 thousand yen, up 505,638 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because buildings and structures, land, and property, plant and equipment (other) increased.
Liabilities as of the end of the second quarter of this consolidated fiscal year came to 15,442,282 thousand yen, down
184,371 thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 6,091,040 thousand yen, down 341,487 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because notes and accounts payable-trade, short-term loans payable, and current portion of longterm loans payable decreased.
Noncurrent liabilities came to 9,351,242 thousand yen, down 157,116 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because long-term loans payable increased and noncurrent liabilities (other) decreased.
Net assets as of the end of the second quarter of this consolidated fiscal year came to 15,038,705 thousand yen, down
247,049 thousand yen from the end of the previous consolidated fiscal year. This is mainly because retained earnings arisingfrom profit attributable to owners of parent and treasury stock increased.
Consequently, the equity ratio as of the end of the second quarter of this consolidated fiscal year was 49.3%.
As for the liquidity of funds, the current ratio as of the end of the second quarter of this consolidated fiscal year was
216.1%. We will boost this ratio, in order to secure sufficient liquidity.
2) Situation of cash flow
Cash and cash equivalent (hereinafter referred to as “funds”) during the end of the second quarter of the current
consolidated fiscal year stood at 8,542,558 thousand yen, down 758,782 thousand yen from the previous consolidated fiscal
year.
The status of each cash flow is as follows:(Cash flow from operating activities)
Funds obtained by operating activities were 575,696 thousand yen (funds obtained in the same period of the previous year3

were 641,725 thousand yen). The major breakdown of income was 337,445 thousand yen of net income before income taxes,
575,071 thousand yen of depreciation and amortization. The major breakdown of expenditure was 271,461 thousand yen ofincrease in inventories and 108,231 thousand yen of increase in notes and accounts receivable-trade.
(Cash flow from investing activities)
Funds used in investing activities were 1,267,848 thousand yen (funds obtained in the same period of the previous year
were 123,345 thousand yen). The major breakdown of expenditure was 1,018,019 thousand yen of purchase of property, plantand equipment and 172,662 thousand yen of payments of loans receivable.
(Cash flow from financing activities)
Funds used in financing activities were 61,021 thousand yen (funds used in the same period of the previous year were
1,206,037 thousand yen). The major breakdown of income was 1,620,000 thousand yen of proceeds from long-term loans
payable and 229,251 thousand yen of proceeds from trust account for purchase of treasury stock. The major breakdown ofexpenditure was 1,293,447 thousand yen of repayment of long-term loans payable, 304,727 thousand yen of repayments of
installment payables and 194,400 thousand yen of decrease in short-term loans payable.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2017, there are no changes to the estimated values
announced on May 10, 2016.

4

2. Notes on Summary Information (Notes)(1) Important Transfers in Subsidiaries during the Consolidated Cumulative Second 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(Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
In line with a revision of corporation tax law, “Practical Solution on a Change in Depreciation Method due to Tax Reform
2016” (Practical Solution Report No.32 of June 17, 2016) has been applied since the first quarter. Along with this, thedepreciation method for facilities attached to buildings and structures that were acquired after April 1, 2016 has been changed
from the declining balance method to the straight-line method.
The impact of this change on consolidated financial statements for the current second quarter is minor.

(4) Additional Information(Application of the Implementation Guidance on Recoverability of Deferred Tax Assets)“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26 of March 28, 2016)” hasbeen applied since the first quarter of this consolidated fiscal year.

53. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2016
(As of March 31, 2016)

2Q of FY ending March 31, 2017
(As of September 30, 2016)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise
Real estate for sale
Supplies
Other
Allowance for doubtful accounts

9,771,970

9,013,230

1,551,065-

1,659,297
5,013

64,795
948,994

63,6701,220,918

39
1,773,223

174
1,209,904(11,173)(10,351)

14,098,916

13,161,856

7,494,227

7,724,809

Land
Other, net

3,346,595
1,114,630

3,521,632
1,206,445

Total property, plant and equipment

11,955,453

12,452,887

55,202

52,5254,890,712(87,875)

4,890,947(77,229)

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets

4,802,837

4,813,717

16,813,493

17,319,131

30,912,409

30,480,988

343,831
819,813293,049
625,41335,0002,371,843

17,5002,265,403

Income taxes payable
Provision for bonuses

107,819
217,384

158,730
230,104

Provision for point card certificates
Provision for shareholder benefit program

387,858
10,175348,289-

Asset retirement obligation
Other

8,333
2,130,468

12,2682,140,282

Total current liabilities

6,432,527

6,091,040

Noncurrent liabilities
Long-term loans payable

Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable

7,032,679

7,465,672

Asset retirement obligation
Other

199,340
1,962,105

212,106
1,673,463

Total noncurrent liabilities

9,194,125

9,351,242

15,626,653

15,442,282

Total liabilities

6

(Thousands of yen)
FY ended March 31, 2016
(As of March 31, 2016)

2Q of FY ending March 31, 2017
(As of September 30, 2016)

Net assets
Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,676,892
11,213,028

2,676,892
11,322,646

Treasury stock(815,511)(1,166,007)

Total shareholders' equity

15,297,345

15,056,467(13,186)(19,289)

650

1,527

(12,536)(17,761)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeNon-controlling interests in income

946-

Total net assets

15,285,755

15,038,705

Liabilities and net assets

30,912,409

30,480,988

7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
The second quarter of this consolidated fiscal year
(Thousands of yen)
2Q of FY ended March 31, 2016
(April 1, 2015- September 30, 2015)

2Q of FY ending March 31, 2017
(April 1, 2016- September 30, 2016)

Net sales

11,727,077

12,135,802

Cost of sales

10,854,483

11,067,197

Gross profit

872,594

1,068,605

7,284
228,387

6,731
250,998

2,278
557,994115
594,565

795,944852,41076,649216,194

Interest income
Dividends income

7,270
1,276

3,354
28

Subsidy income
Other48,26899,242

78,946
121,170

Total non-operating income

156,057

203,499

66,50445,815530
5,310

15,357
8,436

Selling, general and administrative expenses
Provision for bonuses
Taxes and dues
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative
expenses
Operating income
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

72,34569,608160,361

350,085

Gain on sales of noncurrent assets
Gain on sales of investment securities

476,81359,864-Gain on bargain purchase

20,605-

Total extraordinary income

557,283-

38,081

12,639Ordinary income
Extraordinary income

Extraordinary loss
Impairment loss
Total extraordinary loss

38,081

12,639

Income before income taxes

679,564

337,445

Income taxes-current

175,847

117,903

Income taxes-deferred

60,854

11,952

Total income taxes

236,702129,855

Net income
Net profit (loss) attributable to non-controllinginterests
Net profit attributable to owners of parent

442,861

207,590(2,469)(1,858)445,331

209,4498

Consolidated Statements of comprehensive income
The second quarter of this consolidated fiscal year
(Thousands of yen)
2Q of FY ended March 31, 2016
(April 1, 2015- September 30, 2015)

2Q of FY ending March 31, 2017
(April 1, 2016- September 30, 2016)

Net income

442,861

207,590

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(58,650)(6,102)

425

1,788

Total other comprehensive income(58,224)(4,313)Comprehensive income

384,637

203,277

Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

386,889

204,223(2,252)(946)

9

(3) Consolidated Statements of Cash Flows(Thousands of yen)
2Q of FY ended March 31, 2016
(April 1, 2015- September 30, 2015)

2Q of FY ending March 31, 2017
(April 1, 2016- September 30, 2016)

679,564

337,445

609,157
38,081

575,071
12,6391,357(11,467)

2,663

12,71983,086(39,569)

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase(decrease) in allowance for shareholders'
benefits
Loss (gain) on sales of noncurrent assets(12,050)(10,175)(476,813)-

Loss (gain) on sales of investment securities
Gain on bargain purchase(59,864)(20,605)-

Interest and dividends income
Interest expenses
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts
payable-tradeOther(8,546)
66,504(3,382)45,815(53,397)(108,231)

4,063(59,396)(271,461)
67,772(35,334)(51,534)(49,582)

36,555

Subtotal

708,886

592,198

Interest and dividends income received
Interest expenses paid

5,645
(64,856)

1,128(45,898)(133,754)
125,804(88,079)
116,347

641,725575,696(1,290,252)(1,018,019)

1,639,395

-

(767)

(848)

Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment
securities
Payments into time deposits(500,000)
120,408

-

-

2,890

(457,425)(42)Proceeds from withdrawal of time deposits
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments for transfer of business
Payments of loans receivable

952,813(71,861)(26,563)

1,656

26,773(215,000)(3,640)(172,662)

Collection of loans receivable
Other

18,950(70,933)

19,142(98,516)

Net cash provided by (used in) investing activities

123,345(1,267,848)

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets

10

(Thousands of yen)
2Q of FY ended March 31, 2016
(April 1, 2015- September 30, 2015)

2Q of FY ending March 31, 2017
(April 1, 2016- September 30, 2016)

561,000(194,400)

1,181,117

1,620,000(2,428,718)(17,500)(1,293,447)(17,500)(687)(393,165)(433)(304,727)-

229,251(108,033)(50)(99,764)-(1,206,037)(61,021)22(5,608)(440,943)(758,782)

Cash and cash equivalents at beginning of year

11,007,118

9,301,340

Cash and cash equivalents at end of year

10,566,174

8,542,558

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Repayments of installment payables
Payments made to trust account for acquisitionof treasury stock
Cash dividends paid
Other
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 equivalents11(4) 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)
Based on the resolution at the meeting of the board of directors held on November 19, 2015, we acquired 635,100 treasury
shares in the second quarter of this consolidated fiscal year. As a result, the amount of treasury shares increased by 350,496
thousand yen in the second quarter of this consolidated fiscal year, and the amount of treasury shares as of the end of thesecond quarter of this consolidated fiscal year is 1,166,007 thousand yen.
(Segment information, etc.)[Segment information]
I. Cumulative period through the consolidated second quarter of the previous fiscal year (April 1 – September 30, 2015)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

OthersNursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

6,216,980

4,216,943

945,635―

134

6,216,980
266,826

Total

Adjustment
Amount*2

Consolidatedbalance sheet

Total(Note) *1

214,630

11,594,190

132,887

11,727,077―

11,727,077

20,386

5,555

26,076―

26,076(26,076)―

4,217,078

966,022

220,185

11,620,266

132,887

11,753,154(26,076)

11,727,077

302,939(46,873)

62,190585,083(1,125)583,957(507,307)

76,649amount*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 (loss) adjustments amount, -507,307 thousand yen, includes 226,581 thousand yen inelimination of intersegment transactions and -733,889 thousand yen in company-wide expenses that are not allocatedto reporting segments. 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 losses calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Important impairment loss related to noncurrent assets)
Regarding stores that closed down and stores scheduled for relocation or closing in the second quarter of the current
consolidated fiscal year, there was an impairment loss of 16,301 thousand yen in the “Karaoke Business,” and 21,779
thousand yen in the “Restaurant Business.”(Important negative goodwill profit)
In the “Nursing Care Business” segment, in the second quarter of the current consolidated fiscal year, 20,605 thousand
yen in profit was generated from negative goodwill, due to the acquisition of one nursing facility operated by Yorozuya Ltd.
in Oita City, Oita Prefecture on September 30, 2015.

12

II. Cumulative period through the consolidated second quarter of current fiscal year (April 1 – September 30, 2016)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

OthersNursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

7,039,309

4,002,710

882,344

100,138

12,024,503―

196

21,156100

21,4527,039,309

4,002,906

903,501

100,238

12,045,955

509,545249,870(33,369)

26,857752,903

Total(Note) *1

Total

Adjustment
Amount*2

Consolidatedbalance sheet
amount*3

Sales
Sales to externalcustomers―

12,135,802

21,452(21,452)―

111,299 12,157,255(21,452)

12,135,802(14,381)(522,327)

216,194111,299 12,135,802

Internal sales ortransferred
amount among―

the segments
Total
Segment income(loss)

738,522(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income (loss) adjustments amount, -522,327 thousand yen, includes 236,232 thousand yen inelimination of intersegment transactions and -758,560 thousand yen in company-wide expenses that are not allocatedto reporting segments. 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 losses calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Important impairment loss related to noncurrent assets)
Regarding stores that closed down and stores scheduled for relocation or closing in the second quarter of the current
consolidated fiscal year, there was an impairment loss of 268 thousand yen in the “Karaoke Business,” and 12,371 thousand
yen in the “Restaurant Business.”

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