Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2021
[Japanese GAAP] (Consolidated)
February 10, 2021
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: Tetsuo Kawakami, Director of General Affairs Department
Phone: (093) 551-0002
Scheduled Date of Financial Statements Filing: February 12, 2021
Scheduled Date of Dividend Payment Start: Supplementary materials for Financial Results: No
Investor conference for Financial Results: No(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the First three quarters of the Fiscal Year Ending March 31, 2021 (Apr. 1, 2020 – Dec. 31, 2020)(% 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%

First three quarters ended Dec. 2020
17,972(23.7)(658)
First three quarters ended Dec. 201923,566
15.7
1,211
40.7
(Note) Comprehensive income
First three quarters of FY 2021: ¥(1,609) million [-%]First three quarters of FY 2020: ¥964 million [5.8%]
Net income
per shareFirst three quarters ended Dec. 2020
First three quarters ended Dec. 2019

Millions of yen%

Millions of yen

%

(399)
1,397

25.9

(1,632)902(7.9)

Diluted net income
per share
Yen

Yen(84.44)46.68-(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of December 31, 2020
As of March 31, 2020
(Reference) Equity capital:

Equity ratio

Millions of yen

29,84914,274
29,622
16,078
As of December 31, 2020: ¥14,274 million

%

47.8
54.3
As of March 31, 2020: ¥16,078 million

2. Dividends
End of the 1Q

Dividends per share
End of the 3Q

End of the 2Q

Yen

Yen

Year-end

Yen

AnnualYen

Yen

FY 2020
5.00
5.00
10.00
FY 2021
5.00
FY 2021 (forecast)(Note) 1. Changes from the latest dividend forecast: None
2. Year-end dividends for FY 2021 are still to be determined. We will announce them as soon as estimations become
possible.
3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)(% of change from previous year for full year)

Net sales
Millions of yen%

Operating income

Ordinary income

Millions of yen

Millions of yen%

Profit attributable toowners of parent%

Millions of yen%

Net income
per share
Yen

Full year
23,913 (21.1)(1,200)(938)(Note) Changes from the latest financial forecast: Yes
For more information about the changes in forecast of consolidated results of operations, please see the press release
dated today (February 10, 2021) titled “Notice of Reversal of Deferred Tax Assets and Announcement of Forecast of
Financial Results.”

*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:
2) Changes in accounting policies due to reasons other than above 1):3) Changes in accounting estimates:
4) Restatements:(4) Number of outstanding shares (common stock)1) Number of shares outstanding
As of Dec. 31, 2020
(including treasury stock)2) Number of treasury shares
As of Dec. 31, 2020
3) Average number of shares

Period ended
Dec. 31, 2020

None
None
None
None

21,618,800 shares

As of Mar. 31, 2020

21,618,800 shares

2,287,777 shares

As of Mar. 31, 2020

2,287,777 shares

19,331,023 shares

Period ended
Dec. 31, 201919,331,023 shares

Note: The shares in the Company possessed by Custody Bank of Japan, Ltd. (Trust E) as a trust asset of the “stock benefit trust(J-ESOP)” (as of Dec. 31, 2020: 72,150 shares / as of Mar. 31, 2020: 72,150 shares) are included in the number of treasury
shares at the end of the term. In addition, the shares in the Company possessed by Custody Bank of Japan, Ltd. (Trust E) are
included in the treasury shares to be deducted in the calculation of the average number of shares during the period (period
ended Dec. 31, 2020: 72,150 shares / period ended Dec. 31, 2019: 72,150 shares).
*Summary of financial results is out of scope of quarterly review by certified public accountant or audit corporation.
*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.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1)

Analysis of Results of Operations .................................................................................................................................. 2(2)

Analysis of Financial Condition..................................................................................................................................... 3(3)

Analysis Concerning Future Forecasts Including Consolidated Financial Projections .................................................. 3

2. Quarterly Consolidated Financial Statements and Important Notes ............................................................................................. 4(1)

Quarterly Consolidated Balance Sheets ......................................................................................................................... 4(2)

Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ..................... 6(3)

Notes to the Quarterly Consolidated Financial Statements ............................................................................................ 8(Notes on going concern assumptions) ..................................................................................................................................... 8(Notes on significant change in shareholders’ equity) .............................................................................................................. 8(Additional information) .......................................................................................................................................................... 8(Notes on consolidated statements of income) ......................................................................................................................... 8(Segment information, etc.) ...................................................................................................................................................... 9

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis of Results of Operations
In the first three quarters of the current fiscal year, there was a rapid downturn of the Japanese economy because of the
impact of the global COVID-19 pandemic on economic activity. The economy briefly showed signs of a recovery after theend of the state of emergency in May. However, a new wave of infections started late in 2020 and it is still impossible topredict when this crisis will end. As a result, the outlook remains uncertain.
In all business segments, the Uchiyama Group is placing the highest priority on measures to prevent COVID-19 infections
while taking actions that take into account the effects of this crisis on business operations. There were also measures to improve
efficiency by cutting costs in order to stabilize sales and earnings.
In the fiscal year’s first three quarters, sales were down 23.7% from one year earlier to 17,972,126 thousand yen. There wasan operating loss of 658,358 thousand yen compared with an operating income of 1,211,904 thousand yen one year earlier, anordinary loss of 399,825 thousand yen compared with an ordinary income of 1,397,097 thousand yen one year earlier, and aloss attributable to owners of parent of 1,632,291 thousand yen compared with a profit attributable to owners of parent of
902,458 thousand yen one year earlier.
Business segment performance was as follows.
a. Nursing Care Business
During the first three quarters, one new location was opened in April for daycare services of after-school assistance forchildren with disabilities, and two fee-based nursing care facilities for seniors opened in May. As a result, there were 185
business sites at 107 locations as of the end of the third quarter.
This business has been using collaboration with academic institutions and governments for many years. Although we haverefrained from vigorous business activities because of COVID-19, we will continue to conduct effective activities as much as
possible.
Nursing care facilities are conducting activities to attract new residents while using thorough communications withindividuals and their families, hospitals and other parties in order to ensure the safety of everyone who relocates to one of ourfacilities. As a result, the occupancy ratio remained stable. The average occupancy ratio at existing facilities during the first
three quarters was 95.1% compared with 94.2% one year earlier.
To lower expenses, we hired more full-time employees while reducing the percentage of personnel from temporary staffing
companies and took other actions. Segment sales increased 5.5% from one year earlier to 15,021,608 thousand yen andsegment income increased 27.2% to 1,239,191 thousand yen.
b. Karaoke Business
The business climate for this business was extremely challenging because of government requests for people to stay homeand for businesses to reduce operating hours due to COVID-19. Even after the end of these requests, the recovery in thenumber of customers was slow because people were afraid of a third wave of infections and for other reasons. Karaoke
locations are continuing to use rigorous measures to prevent COVID-19 infections in order to provide customers with a safe
environment. Due to these challenges, segment sales fell 53.1% from one year earlier to 2,456,377 thousand yen and there
was a segment loss of 925,158 thousand yen compared with segment income of 522,970 thousand yen one year earlier. During
the first three quarters, the Karaoke business opened two stores and closed five, resulting in 88 stores at the end of the third
quarter.
c. Restaurant Business
Three restaurants were closed during the first three quarters, resulting in 13 restaurants in Japan and two outside Japan at
the end of the third quarter. As in the Karaoke business, the operating environment for restaurants continues to be very difficult
because of COVID-19. As a result, sales were down 72.6% from one year earlier to 278,168 thousand yen and there was aloss of 176,549 thousand yen compared with income of 31,763 thousand yen one year earlier.
d. Real Estate Business
There was a large sale of real estate for sale in the first three quarters of the previous fiscal year but no large transaction ofproperties during the first three quarters of the current fiscal year. As a result, brokerage services for rental properties were theprimary component of operations as usual in this business. Consequently, sales were down 95.9% from one year earlier to120,215 thousand yen and the segment income fell 96.2% to 20,512 thousand yen.
e. Other businesses
In the hotel business, there was a downturn in hotel demand because the Japanese government temporarily suspended the
Go To Travel campaign on December 28, 2020, which had started in July 2020, because of increasing COVID-19 infections.
The number of people using hotels for daytime banquets also decreased. As a result, segment sales decreased 41.2% to 95,755

2thousand yen and the segment loss increased to 75,043 thousand yen from 55,653 thousand yen one year earlier.

(2) Analysis of Financial Condition
Total assets were 29,849,624 thousand yen at the end of the third quarter, 227,333 thousand yen more than at the end of theprevious fiscal year. Current assets increased 124,790 thousand yen to 15,200,018 thousand yen. Accounts receivable-trade andother current assets increased and cash and deposits decreased.
Noncurrent assets increased 102,543 thousand yen to 14,649,606 thousand yen. There were increases in buildings andstructures and other property, plant and equipment and a decrease in other investments and other assets.
Liabilities increased 2,030,630 thousand yen to 15,574,716 thousand yen.
Current liabilities increased 95,925 thousand yen to 6,394,159 thousand yen. The current portion of long-term borrowings
and other current liabilities increased and short-term borrowings and the provision for bonuses decreased.
Noncurrent liabilities increased 1,934,705 thousand yen to 9,180,557 thousand yen, which included an increase in long-termborrowings and a decrease in bonds payable.
Net assets decreased 1,803,297 thousand yen to 14,274,908 thousand yen at the end of the third quarter mainly because of adecrease in retained earnings caused by dividend payments and the loss attributable to owners of parent.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
A forecast for consolidated results of operations for the fiscal year ending in March 2021 has been announced. Prior to thisannouncement, there was no forecast because it was impossible to determine the effects of the COVID-19 crisis. For
information about the forecast and its reasons, please see the press release dated today titled “Notice of Reversal of Deferred
Tax Assets and Announcement of Forecast of Financial Results.”3

2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2020
(As of March 31, 2020)

3Q of FY ending March 31, 2021
(As of December 31, 2020)

AssetsCurrent assets
Cash and deposits

10,678,737

10,433,267

Accounts receivable - trade
Merchandise

2,205,597
48,6572,280,588
55,916

Real estate for sale
Supplies

1,040,569
317

1,041,185
305

Other
Allowance for doubtful accounts

1,111,685(10,337)

1,388,784(29)

Total current assets

15,075,227

15,200,018

Buildings and structures, net
Land4,638,414
2,505,871

5,145,653
2,581,266

Other, net

1,340,803

1,531,755

Total property, plant and equipment

8,485,089

9,258,675

56,25847,376

Other
Allowance for doubtful accounts

6,027,151(21,435)

5,371,310(27,755)

Total investments and other assets

6,005,715

5,343,554

14,547,062

14,649,606

29,622,290

29,849,624

Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

Total noncurrent assets
Total assets4

(Thousands of yen)
FY ended March 31, 2020
(As of March 31, 2020)

3Q of FY ending March 31, 2021
(As of December 31, 2020)

Liabilities
Current liabilities
Accounts payable - trade587,223558,636

Short-term borrowings
Current portion of bonds payable

1,079,600
60,000758,700
60,000Current portion of long-term borrowings
Income taxes payable

2,274,206
199,758

2,687,006
156,153

Provision for bonuses
Provision for point card certificates

300,658
106,564

151,552
114,575

Provision for shareholder benefit program
Asset retirement obligations

15,810-29,569Other

1,674,413

1,877,966

Total current liabilities

6,298,234

6,394,159

180,000

150,000

5,927,609
222,0317,906,276
209,505

2,503
913,707

3,511
911,265

7,245,851

9,180,557

13,544,085

15,574,716

Shareholders’ equity
Share capital

2,222,935

2,222,935

Capital surplus
Retained earnings

2,664,695
12,409,369

2,664,695
10,583,045

Treasury shares(1,164,420)(1,164,420)

Total shareholders’ equity

16,132,579

14,306,255

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(53,206)(1,168)(32,158)
810

Total accumulated other comprehensive income(54,374)(31,347)

Total net assets

16,078,205

14,274,908

Liabilities and net assets

29,622,290

29,849,624

Noncurrent liabilities
Bonds payable
Long-term borrowings
Asset retirement obligations
Provision for share-based remuneration
Other
Total noncurrent liabilities
Total liabilities
Net assets

Accumulated other comprehensive income5(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
For the first three quarters(Thousands of yen)First Three quarters ended March
31, 2020(April 1, 2019 - December 31, 2019

First Three quarters ended March
31, 2021(April 1, 2020 - December 31, 2020)

Net sales

23,566,841

17,972,126

Cost of sales

21,080,012

17,402,724

Gross profit

2,486,828

569,401

Selling, general and administrative expenses

1,274,924

1,227,760

Operating income (loss)

1,211,904(658,358)

Interest income
Dividend income

5,491
23,293

7,971
34,176

Insurance claim income
Subsidy income

60,99567,746

90,12899,052

Other

118,841

111,399

Total non-operating income

276,367

342,727

Interest expenses
Loss on disaster

46,062
22,39643,89031,716

Other

22,715

8,588

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets

91,17484,194

1,397,097(399,825)-

89,177

Gain on sales of investment securities
Gain on insurance claims-

942
39,350Subsidy income*1-

60,671

Total extraordinary income-

190,140

11,000-144,762-

289,166

Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss resulting from temporary closure, etc.*2
Total extraordinary loss

11,000433,929

1,386,097(643,614)

Income taxes-current
Income taxes-deferred

322,971
160,667

259,846
728,831

Total income taxes

483,638

988,677

Net income (loss)

902,458(1,632,291)

Net profit (loss) attributable to owners of parent

902,458(1,632,291)

Income (loss) before income taxes

6Quarterly Consolidated Statements of Comprehensive Income
For the first three quarters(Thousands of yen)First Three quarters ended March
31, 2020(April 1, 2019 - December 31, 2019

First Three quarters ended March
31, 2021(April 1, 2020 - December 31, 2020)

Net income (loss)

902,458(1,632,291)

Other comprehensive income
Valuation difference on available-for-sale securities

62,41521,047

(816)

1,979

Foreign currency translation adjustment

61,59923,026Comprehensive income

Total other comprehensive income

964,058(1,609,265)

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

964,058(1,609,265)

-

-

7

(3) Notes to the Quarterly Consolidated Financial Statements(Notes on going concern assumptions)
Nothing is applicable.
(Notes on significant change in shareholders’ equity)
Nothing is applicable.
(Additional information)(Accounting estimates concerning the COVID-19 pandemic)
Amid the COVID-19 pandemic, sales have decreased in the Karaoke business and Restaurant business due to decline incustomer traffic mainly because of temporary closings and reduced operating hours of stores and restaurants. Consequently, foraccounting estimates (recognition and measurement of impairment loss of noncurrent assets and determination of therecoverability of deferred tax assets), future profits and losses and cash flows are estimated by using assumptions concerning
the outlook for the end of requests to stay home, prospects for the end of consumers’ fear of the pandemic and for an
improvement in consumer sentiment, and other aspects of the COVID-19 pandemic.
In the additional information section of the Securities Report for the fiscal year ended March 2020, the Uchiyama Group
stated that estimates concerning future operations include the assumption that the Karaoke business and Restaurant businesswould be affected by the COVID-19 pandemic as consumers remain wary of infections until the end of September 2020.
Furthermore, the recovery of consumer sentiment which was expected to begin in October was expected to progress slowly.
These assumptions were reflected in the outlook for the period up to the end of March 2021. Due to the subsequent increase ininfections, however, we now believe that more time will be needed for a recovery in consumer sentiment. We have therefore
revised our assumption and currently expect the effects of the pandemic to continue for some time into the fiscal year ending inMarch 2022.
The Uchiyama Group prepares the best possible estimates by using information that is currently available. If actual events
differ from the assumptions used for accounting estimates, there may be an effect on the group’s financial condition, results ofoperations and cash flows.

(Notes on consolidated statements of income)*1 Subsidy income
We have temporarily closed or shortened business hours of stores in response to requests from the government and local
governments to contain the spread of the COVID-19 pandemic.
The government has provided subsidies under its Employment Adjustment program for leave allowances to cover wages for
shortened business hours and temporary closures of our stores. The company received 60,671 thousand yen in subsidy. It is
accounted as extraordinary income.

*2 Loss resulting from temporary closure, etc.
We have temporarily closed or shortened business hours of stores in response to requests from the government and local
governments to contain the spread of the COVID-19 pandemic.
The fixed costs incurred during the temporary closure (personnel costs, rents, depreciation, etc.) of 289,166 thousand yen
are posted as loss resulting from temporary closure, etc. in extraordinary loss.

8

(Segment information, etc.)[Segment information]
I. First three quarters of the previous fiscal year (April 1 - December 31, 2019)
1. Information on sales and income or loss for each reporting segment(Thousands of yen)
Reporting segments

Otherbusinesses(Note 1)

Total

Consolidated
statements ofincomeamount(Note 3)Adjustment
amount(Note 2)

Nursing
Care
Business

KaraokeBusiness

Restaurant
Business

Real EstateBusiness

14,241,310

5,234,861

1,014,853

2,912,859

23,403,884

162,956

23,566,841-

23,566,841

-

8,214

38,523900

47,6383

47,641(47,641)-

14,241,310

5,243,075

1,053,376

2,913,759

23,451,523

162,959

23,614,482(47,641)

23,566,841

973,883

522,970

31,763

546,4812,075,098(55,653)

2,019,445(807,540)

1,211,904

Total

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Notes) 1.The classification “other businesses” refers to business segments that are not included in reporting segments andincludes hotel business.
2. The segment income (loss) adjustments amount, -807,540 thousand yen includes 402,291 thousand yen in eliminationof intersegment transactions and -1,209,832 thousand yen in company-wide expenses that are not allocated toreporting segments. The company-wide expenses are mainly general and administrative expenses that are notallocated to reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in the consolidated statements of income.
2. Information on impairment loss of noncurrent assets, goodwill, etc. for each reporting segment
Nothing is applicable.

9II. First three quarters of the current fiscal year (April 1 - December 31, 2020)
1. Information on sales and income or loss for each reporting segment(Thousands of yen)
Reporting segments
Nursing
Care
Business

KaraokeBusiness

15,021,608

Otherbusinesses(Note 1)

Total

Consolidated
statements ofincomeamount(Note 3)Adjustment
amount(Note 2)

Restaurant
Business

Real EstateBusiness

2,456,377

278,168

120,215

17,876,370

95,755

17,972,126-

17,972,126-

422

33,860900

35,182-35,182(35,182)-

15,021,608

2,456,799

312,029

121,115

17,911,553

95,75518,007,308(35,182)

17,972,126

1,239,191(925,158)(176,549)

20,512

157,996(75,043)

82,953(741,312)(658,358)

Total

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Notes) 1.The classification “other businesses” refers to business segments that are not included in reporting segments andincludes hotel business.
2. The segment income (loss) adjustments amount, -741,312 thousand yen includes 377,752 thousand yen in eliminationof intersegment transactions and -1,119,065 thousand yen in company-wide expenses that are not allocated toreporting segments. The company-wide expenses are mainly general and administrative expenses that are notallocated to reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in the consolidated statements of income.
2. Information on impairment loss of noncurrent assets, goodwill, etc. for each reporting segment(Significant impairment loss in noncurrent assets)
We booked a 104,319 thousand yen of impairment loss in the Karaoke business and a 40,443 thousand yen of impairment loss in
the Restaurant business in the first three quarters of the current fiscal year.

10