Financial Results for the Fiscal Year Ended March 31, 2017
[Japanese GAAP] (Consolidated)
May 12, 2017
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 Annual Meeting of Shareholders:June 27, 2017
Scheduled Date of Dividend Payment Start:
June 28, 2017
Scheduled Date of Financial Statements Filing:
June 28, 2017
Supplementary materials for Financial Results: Yes
Investor conference for Financial Results: Yes (For institutional investors and security analysts)(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 – March 31, 2017)(% of change from previous year)(1) Consolidated Financial Results
Net sales
Operating income
Ordinary income
Net income
Millions of yen%

FY 201725,3185.9
777
FY 2016
23,8971.1
128(Note) Comprehensive income
FY 2017: ¥ 66 million (-92.9%)

Millions of yen

%

504.0
(91.0)Net income
per share

Diluted net
income per share
Yen

Millions of yen%

Millions of yen

1,008
210.4
324
(79.1)FY 2016: ¥931 million (-28.6%)

Return on equity

Ordinary income
to total assets

%

Yen

%

(93.9)(23.8)

59
983

Operating income
to net sales%%

FY 2017
3.10
3.09
FY 2016
46.11
46.03(Reference) Equity in earnings of affiliated companies: FY 2017: ¥ - million

0.4
3.3
6.4
1.0
FY 2016: ¥ - million

3.1
0.5

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets

Millions of yen

FY 2017
FY 2016(Reference) Equity capital:

Net assets per share

Millions of yen

30,35530,912
FY 2017: ¥14,794 million%%

14,79448.7
15,28549.4
FY 2016: ¥15,284 million

765.34765.54(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents
at end of year

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,795
888

(1,878)
1,901

(246)
(4,491)

8,969
9,301

FY 2017
FY 2016
2. Dividends
End ofthe 1QFY 2016
FY 2017
FY 2018 (forecast)

Dividends per share
End of
End ofYear-end
the 2Qthe 3Q

AnnualTotal
dividends(annual)Dividends
Dividends on
payout ratio
net assets(consolidated) (consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of Yen

%

%

―
―
―

5.00
5.00
5.00

―
―
―

5.00
5.00
5.00

10.00
10.00
10.00

207
193

21.7
322.9
27.5

1.4
1.3

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)(% 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

Ordinary income%

Millions of yen

Net income
per share

Net income%

Millions of yen

%

Yen

2Q
13,120
8.1
586
171.5
570
62.9
380
81.7
19.69
(cumulative)
Full year
26,810
5.9
1,120
44.2
1,081
7.2
702
―
36.32
Note: Since the year-over-year growth rate of profit attributable to owners of parent for the term ending Mar. 2018 exceeds
1000%, it has been indicated as –.

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) 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 refer to Appendix on Page 14, “3. Consolidated Financial Statements and Major Notes (5) Notes toConsolidated Financial Statements.”(3) 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

21,618,800 shares

FY 2016

21,618,800 shares

FY 2017

2,287,776 shares

FY 2016

1,652,676 shares

FY 2017

19,370,066 shares

FY 2016

21,322,764 shares(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 – March 31, 2017)(% of change from previous year)(1) Non-Consolidated Financial Results
Net sales
Operating income
Ordinary income
Net income
FY 2017
FY 2016

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

881
676

30.4
0.8

358
166

115.5
(1.5)

425
224

89.9
(6.4)

418
221

89.4
(2.8)

Net income
per share
FY 2017
FY 2016

Diluted net income
per share
Yen

Yen

21.61
10.37

21.57
10.35

(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2017
FY 2016(Reference) Equity capital:

Equity ratio

Net assets per share

Millions of yen

4,753
4,876
FY 2017: ¥4,519 million

4,519
4,648
FY 2016: ¥4,648 million

%

Yen

95.1
95.3

233.80232.802. Forecasts of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)(% of change from previous year for full year, same quarter of the previous year for 2Q)

Net sales
Millions of yen

2Q (cumulative)
Full year494
989

Ordinary income
%

26.9
12.3

Millions of yen

259
524

Net income pershare

Net income
%

65.4
23.3

Millions of yen

256
515

%

Yen

64.0
23.1

13.29
26.64

* Summary of financial results is out of scope of audit.
* 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 5, “1. Business Performance Overview(4) Future Outlook.” The Company is planning to host a financial settlement reporting meeting for investors and analysts on June 7, 2017. The
contents (recorded sound) will be posted together with the handouts on the Company’s Web page immediately after the
meeting.

○Table of contents of the appendix

1. Business Performance Overview .................................................................................................................................................. 2(1) Business Performance Overview for Current Term ................................................................................................................ 2(2) Financial Standing Overview for Current Term ...................................................................................................................... 3(3) Cash Flow Overview for Current Term ................................................................................................................................... 4(4) Future Outlook ........................................................................................................................................................................ 5
2. Basic Principles of Selecting Accounting Standards .................................................................................................................... 5
3. Consolidated Financial Statements and Major Notes ................................................................................................................... 6(1) Consolidated Balance Sheets .................................................................................................................................................. 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 8(3) Consolidated Statements of Changes in Net Assets ...............................................................................................................10(4) Consolidated Statements of Cash Flows ................................................................................................................................12(5) Notes to Consolidated Financial Statements ..........................................................................................................................14(Notes regarding premise of a going concern) .........................................................................................................................14(Changes in accounting policies) .............................................................................................................................................14(Additional information) .........................................................................................................................................................14(Segment information, etc.) .....................................................................................................................................................15(Per share information) ............................................................................................................................................................20(Significant subsequent event).................................................................................................................................................20

1

1. Business Performance Overview(1) Business Performance Overview for Current Term
In this consolidated fiscal year, the Japanese economy, amid the backdrop of the government's economic policies, saw amild upswing, but due to many uncertain factors such as the new administration in the U.S. and the trend of their policies aswell as the outcome of the issue of the U.K. leaving the EU, the future remains unclear.
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 current consolidated fiscal year were 25,318,306 thousand yen (up 5.9% Year-on-Year (YoY)),
operating income was 777,564 thousand yen (up 504.0% YoY), ordinary income was 1,008,436 thousand yen (up 210.4%
YoY). In the previous consolidated fiscal year, there was an extraordinary income of 1,469,963 thousand yen from the saleand leaseback of four paid elderly nursing home, and proceeds on sale of noncurrent assets, including karaoke equipment
and land. However, due to extraordinary income recorded as only 48,166 thousand yen from sales and lease backtransactions not being conducted in this consolidated fiscal year along with the result of looking into the future
recoverability of non-current assets in the karaoke, restaurant and real estate business, we declared impairment of the bookvalue up to the recoverable amount, and reported an impairment loss of 896,281 thousand yen, leading to profit attributableto owners of patent decreasing by 923,108 thousand yen to 59,987 thousand yen (down 93.9% YoY).
The results of each segment were as follows.
(1) Nursing Care BusinessIn the Nursing Care Business, we have actively expanded our business by opening 2 paid nursing homes that offer
nursing-care services as well as setting up 1 group home, 2 short-stay offices, 2 stations for visiting nurses, and 7 day service
centers for after school support for children with disabilities. Furthermore, we have purchased 1 group home and 1 day
service center. As a result, the number of sales footholds as of the end of this consolidated fiscal year is 81 (151 offices). At
existing facilities, in order to reduce the number of vacant rooms, we aimed to stabilize occupancy ratio by promoting thecementing of cooperation with nearby hospitals and home care support offices by visiting them. As a result, the averageoccupancy ratio for existing facilities in this consolidated fiscal year was 92.3% (average in the previous term: 89.6%). We
also announced that we would welcome elderly victims of the Kumamoto Earthquake, which occurred in mid April, free ofcharge, and a total of 38 victims moved into our facilities. As a result, sales were 14,431,417 thousand yen (up 12.4% YoY)
and segment income was 993,540 thousand yen (up 124.9% YoY).
(2) Karaoke Business
For the Karaoke Business segment, we strived to acquire customers for all-you-can-drink courses, etc. and mobile-service
members for smartphones, to increase repeat customers, and utilized the informative websites for restaurants actively, toattract customers. However, in the wake of the Kumamoto Earthquake in April, 3 restaurants in Kumamoto Prefecture wereclosed for about 1 week, and customers in the entire Kyushu region decreased. As a result, sales were 8,138,687 thousandyen (down 4.9% YoY) and segment income was 770,146 thousand yen (up 23.5% YoY). In this consolidated fiscal year, we
opened one new stores in Fukuoka prefecture and closed two store. Accordingly, the number of stores is 96 as of the end of
this consolidated fiscal year.
(3) Restaurant Business
For the Restaurant Business segment, 2 restaurants were opened, 2 restaurants changed its business type, and 4 restaurants
were closed down. Consequently, the number of restaurants as of the end of this consolidated fiscal year is 23 in Japan, and3 outside Japan. As for existing restaurants, customers were decreasing, and so we strived to increase them with a limited
offer, and made efforts to meet the demand for banquets, etc. by visiting each enterprise, to increase corporate customers.

2However, one restaurant was closed for about 1 week due to the Kumamoto Earthquake, like the Karaoke Business, and thenumber of customers was on a decline. As a result, sales were 1,849,813 thousand yen (down 4.1% YoY) and segment loss
was 45,142 thousand yen (segment loss was 35,016 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 651,134 thousand yen (up 109.2%
YoY) and segment income was 111,434 thousand yen (up 28.8% YoY).
(5) Other businesses
In the Other businesses segment, the company made efforts to increase guests, secure bookings for parties, promote day
trips for bathing, etc. in the hotel business. However, in April the business was greatly affected by the Kumamoto
Earthquake, and the number of guests decreased. As a result, sales were 247,252 thousand yen (down 5.6% YoY) andsegment loss was 25,595 thousand yen (segment loss was 12,999 thousand yen during the same term last year).

(2) Financial Standing Overview for Current Term
(1) Status of assets, liabilities and net assets
Total assets at the end of the current consolidated fiscal year were 30,355,875 thousand yen, down 556,533 thousand
yen from the previous consolidated fiscal year.
Current assets were 13,171,850 thousand yen, down 927,065 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the decrease of 522,041 thousand yen in cash and deposits and 647,548
thousand yen in others (current assets) and increase of 180,315 thousand yen in notes and accounts receivable-trade and100,743 thousand yen in real estate for sale.
Noncurrent assets were 17,184,025 thousand yen, up 370,532 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the increase of 226,831 thousand yen in buildings and structures,
282,494 thousand yen in land, 197,779 thousand yen in construction in progress and 234,517 thousand yen in deferred tax
assets and decrease of 300,907 thousand yen in others (property, plant and equipment) and 228,345 thousand yen in others(investments and other assets).
Liabilities at the end of the current consolidated fiscal year were 15,560,977 thousand yen, down 65,675 thousand yen
from the previous consolidated fiscal year.
Current liabilities were 6,256,657 thousand yen, down 175,870 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the decrease of 146,641 thousand yen in current portion of long-term
debt payable and 158,095 thousand yen in provision for point card certificates and the increase of 54,607 thousand yen inincome taxes payable and 62,766 thousand yen in others (current liabilities).
Noncurrent liabilities were 9,304,320 thousand yen, up 110,194 thousand yen from the end of the previous consolidated
fiscal year. The major factor for the change was the increase of 484,118 thousand yen in long-term loans payable and thedecrease of 405,096 thousand yen in others (noncurrent liabilities).
Net assets at the end of the current consolidated fiscal year were 14,794,897 thousand yen, down 490,857 thousand yen
from the previous consolidated fiscal year. The major factor for the change was the decrease of 136,498 thousand yen inretained earnings as a result of dividends of surplus, etc. and 350,496 thousand yen for purchase of treasury stock.
As for liquidity of assets, the current ratio during the current consolidated fiscal year is 210.5%. The Corporate Groupwill make efforts to increase the current ratio in order to secure enough liquidity in the future.

3(3) Cash Flow Overview for Current Term
Cash and cash equivalent (hereinafter referred to as “funds”) at the end of the current consolidated fiscal year stood at
8,969,729 thousand yen, down 331,610 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 1,795,944 thousand yen (funds obtained in the previous year were 888,908
thousand yen). The major breakdown of income was 139,508 thousand yen of net income before income taxes, 1,198,858
thousand yen of depreciation and amortization, and 896,281 thousand yen of impairment loss. The major breakdown ofexpenditure was 168,379 thousand yen of increase in notes and accounts receivable - trade, 158,095 thousand yen of
decrease in provision for point card certificates and 169,325 thousand yen of income taxes paid.
(Cash flow from investing activities)
Funds used in investing activities were 1,878,598 thousand yen (funds obtained in the previous year were 1,901,391
thousand yen). The major breakdown of income was 117,237 thousand yen of gain on sales of investment securities,
197,886 thousand yen of proceeds from withdrawal of time deposits and 380,872 thousand yen of proceeds fromcancellation of insurance funds. The major breakdown of expenditure was 2,146,915 thousand yen of purchase ofproperty, plant and equipment, 152,679 thousand yen of payments resulting from merger of subsidiaries and 193,920
thousand yen of purchase of insurance funds.
(Cash flow from financing activities)
Funds used in financing activities were 246,424 thousand yen (funds used in the previous year were 4,491,739
thousand yen). The major breakdown of income was 2,936,000 thousand yen of proceeds from long-term loans payable
and 229,251 thousand yen of proceeds from withdrawal of trust account for acquisition of treasury stock. The major
breakdown of expenditure was 2,598,523 thousand yen of repayment of long-term loans payable and 595,616 thousand
yen of repayments of installment payables.
(Reference) Trend of Cash Flow Related Indicators
FY ended

FY ended

FY ended

FY ended

FY ended

March 2013

March 2014

March 2015

March 2016

March 2017

41.3

46.7

47.0

49.4

48.7

42.1

43.3

36.7

33.1

28.2

Debt repayment period (years)

5.2

16.6

6.9

13.3

6.5

Interest coverage ratio (times)

11.1

5.0

14.2

7.4

21.2

Equity ratio (%)
Equity ratio on market pricebasis (%)

Equity ratio: equity capital/total assets
Equity ratio on market price basis: total market value of stock/total assets
Debt repayment period: interest-bearing debt/operating cash flow
Interest coverage ratio: operating cash flow/interest payments(Notes)1.

All are calculated using financial figures on consolidated base.

2.

Cash flow is using cash flow from operating activities.

3.

Market value of stock is calculated as end-of-the-term share value multiplied by the number of shares issued at
the end of the term (after excluding treasury shares).

4.

Interest-bearing debt includes all debts that are included in the consolidated balance sheet, for which interests are
paid.

4

(4) Future Outlook
The world economy is expected to continue its mild growth due to the strong U.S. economy. Nevertheless, there are many
uncertain factors – the direction of the policy management of the U.S. Trump Administration, a sign of a slowdown in the
Chinese economy, the U.K. leaving the EU and its impact on each European country, financial policies in Japan reaching
their limit – and so the future outlook remains unclear.
Under these circumstances, the Corporate Group will make efforts to enhance customers’ satisfaction and improve its
business performance by clarifying business strategies for each segment, conducting effective and efficient sales andensuring to provide services based on its basic philosophy of “Loving-kindness, Respect for dignity, and Customer firstspirit”.
Moreover, we plan to make efforts to expand target areas and increase our operation bases primarily in the nursing carebusiness. In addition, we will establish features unique to our corporate group and gain the support of customers and tenants
by streamlining business through joint procurement and improving and optimizing service capabilities through personnel
exchange to maximize synergy between different businesses.
As for the forecast of the consolidated business performance throughout the year, sales are expected to be 26,810,288
thousand yen (up 5.9%, from the current consolidated fiscal year), operating income is expected to be 1,120,997 thousandyen (up 44.2%, same), ordinary income is expected to be 1,081,520 thousand yen (up 7.2%, same), and profit attributable toowners of the parent is expected to be 702,104 thousand yen (59,987 thousand yen for the current consolidated fiscal year).

2. Basic Principles of Selecting Accounting Standards
Currently, the activities of the Corporate Group are mainly conducted in Japan. Therefore the Japanese accounting standards
will be used for the time being. In the future, however, as the Corporate Group expands its business overseas, the needs ofusing the accounting based on the IFRS will increase as important information for decision making by investors, financial
institutions and other stakeholders in Japan and overseas. The Company is planning to deliberate on the application of the
IFRS including the appropriate timing of introduction.

5

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

FY ended March 31, 2017
(As of March 31, 2017)

AssetsCurrent assets
Cash and deposits

9,771,970

9,249,929

1,551,065-

1,731,381
5,003

Merchandise
Real estate for sale64,795
948,994

68,073
1,049,738

Supplies
Deferred tax assets

39
252,328174
207,341

Other
Allowance for doubtful accounts

1,520,895(11,173)873,346(13,138)

Total current assets

14,098,916

13,171,850

13,464,336(5,970,108)

14,817,344(7,096,285)

Notes and accounts receivable-trade
Securities

Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

7,494,227

7,721,059

Land

Buildings and structures, net

3,346,595

3,629,089

Construction in progress
Other

81,9093,035,474

279,688
3,124,813(2,002,753)(2,392,999)

Accumulated depreciation
Other, net

1,032,721

731,813

11,955,453

12,361,651

55,20245,800Investment securities
Long-term loans receivable

490,925
247,260

493,611
246,684

Deferred tax assets
Lease and guarantee deposits

148,661
2,413,868

383,178
2,364,676

Other
Allowance for doubtful accounts

1,589,996(87,875)

1,361,650(73,229)

Total property, plant and equipment
Intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets

64,802,837

4,776,572

16,813,493

17,184,025

30,912,409

30,355,875

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

FY ended March 31, 2017
(As of March 31, 2017)

Liabilities
Current liabilities
Notes and accounts payable-trade343,831

347,593

819,813
2,371,843

844,600
2,225,201

Current portion of bonds
Lease obligations

35,000866

794Income taxes payable
Provision for bonuses

107,819
217,384

162,427
235,260

Provision for point card certificates
Provision for shareholder benefit program

387,858
10,175

229,762
11,815

Asset retirement obligations
Other

8,333
2,129,601

6,833
2,192,368

Total current liabilities

6,432,527

6,256,657

Noncurrent liabilities
Long-term loans payable

7,032,679

7,516,797

Lease obligations
Deferred tax liabilities

794
523,622

540,276

199,340
1,437,688

214,653
1,032,592

Short-term loans payable
Current portion of long-term loans payable

Asset retirement obligation
Other
Total noncurrent liabilities

9,194,125

9,304,320

15,626,653

15,560,977

Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,676,892
11,213,028

2,666,282
11,076,529

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

Total shareholders' equity

15,297,345

14,799,740(13,186)(5,814)

650

972(12,536)(4,842)

Total liabilities
Net assets

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

946-

Total net assets

15,285,755

14,794,897

Liabilities and net assets

30,912,409

30,355,875

7

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

Net sales
Cost of sales(Thousands of yen)
FY ended March 31, 2016
FY ended March 31, 2017
(April 1, 2015- March 31, 2016) (April 1, 2016- March 31, 2017)
23,897,098
25,318,306
22,197,604
22,838,345

Gross profit
Selling, general and administrative expenses
Directors' compensations
Salaries and allowances
Taxes and dues
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for allowance for shareholders' benefits
Other
Total selling, general and administrative expenses

1,699,494

2,479,960

169,418
288,765
448,327
5,176
10,032649,046
1,570,767

170,813333,227
502,812
3,104
7,510
11,755673,173
1,702,395

Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Insurance income
Subsidy income
Other

128,726

777,564

11,985
1,277
101,044
39,501
112,12775,0248,707
28
95,75058,373
88,133
97,511

Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of store lease contract
Other

340,959

348,504

123,654
21,13085,07917,493
15,059Total non-operating expenses
Ordinary income

144,784
324,901

117,632
1,008,436

1,253,176
127,480
68,6995,785
18,437-

20,605
1,469,963

23,94348,166

272,780
272,780

3,817
16,995896,281
917,094

1,522,084
282,940
262,750545,690

139,508
256,551(176,084)
80,467

Net income
Profit (loss) attributable to non-controlling interests

976,393(6,702)

59,040(946)

Profit attributable to owners of the parent

983,096

59,987Extraordinary income
Gain on sales of noncurrent assets
Gain on donation of non-current assets
Gain on sales of investment securities
Insurance income
Gain on negative goodwill
Total extraordinary income
Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of noncurrent assets
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes

8Consolidated Statements of comprehensive income(Thousands of yen)
FY ended March 31, 2016
FY ended March 31, 2017
(April 1, 2015- March 31, 2016) (April 1, 2016- March 31, 2017)
Net income

976,393

59,040

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(45,084)

7,371

(111)

(355)

Total other comprehensive income(45,195)

7,016

Comprehensive income

931,197

66,057

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

937,957

67,003(6,759)(946)

9(3) Consolidated Statements of Changes in Net Assets
FY ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period2,222,935

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity2,676,892

10,446,116(237)

15,345,707

Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period(216,184)(216,184)

983,096

983,096(815,273)(815,273)――

766,911(815,273)(48,361)

2,222,935

2,676,892

11,213,028(815,511)

15,297,345

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

32,602

7,705

15,386,015

Accumulated other comprehensive income
Valuation difference Foreign currency
on available-for-saletranslation
securities
adjustment
Balance at beginning ofcurrent period
Changes of items during
period31,897705

Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period(216,184)
983,096(815,273)(45,084)(54)(45,138)(6,759)(51,898)(45,084)(54)(45,138)(6,759)(100,259)(13,186)650(12,536)

946

15,285,755

10FY ended March 31, 2017 (From April 1, 2016 to March 31, 2017)(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period2,222,935

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity2,676,892

11,213,028(815,511)

15,297,345

Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasury
stock
Purchase of shares of
consolidated
subsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period(196,485)(196,485)

59,98759,987(350,496)(10,609)(350,496)(10,609)―(10,609)(136,498)(350,496)(497,604)

2,222,935

2,666,282

11,076,529(1,166,007)

14,799,740

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets(12,536)

946

15,285,755

Accumulated other comprehensive income
Valuation difference Foreign currency
on available-for-saletranslation
securities
adjustment
Balance at beginning ofcurrent period
Changes of items during
period(13,186)

650

Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasury
stock
Purchase of shares of
consolidated
subsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period(196,485)
59,987(350,496)(10,609)

7,371

321

7,693

(946)

6,747

7,371

321

7,693

(946)

(490,857)(5,814)972(4,842)-

14,794,897

11

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY ended March 31, 2016
FY ended March 31, 2017
(April 1, 2015- March 31, 2016) (April 1, 2016- March 31, 2017)
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
Interest and dividends income
Interest expenses
Loss on retirement of noncurrent assets
Loss (gain) on sales of noncurrent assets
Gain on donation of non-current assets
Loss (gain) on sales of investment securities
Insurance income
Gain on negative goodwill
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-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Insurance income
Income taxes paid
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment
securities
Payments into time deposits
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 resulting from merger of subsidiaries
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investment
activities

12

1,522,084
1,284,040
272,780

139,508
1,198,858
896,281(9,751)(12,690)

20,068

16,213

116,286(158,095)(1,875)1,640(13,263)
123,654(1,253,176)(127,480)(68,699)(20,605)(8,736)85,07916,995
3,817(5,785)(18,437)(23,943)(132,952)(168,379)(221,587)(93,524)(79,983)
92,511

43,94840,070(193,168)
1,246,7778,434(119,700)
92,951(339,553)

30,591
2,045,517
4,331(84,578)(169,325)

888,908

1,795,944(3,092,519)(2,146,915)

4,379,052

13,923(1,386)(899,650)
587,741(1,049)(98,800)
117,237-

2,890(507,861)
1,956,270(157,845)(7,455)
197,886(56,034)

32,28953,402(215,000)(195,268)
12,577(9,896)38,874(25,985)(152,679)(193,920)
380,872(36,356)
38,455
9,944

1,901,391(1,878,598)

(Thousands of yen)
FY ended March 31, 2016
FY ended March 31, 2017
(April 1, 2015- March 31, 2016) (April 1, 2016- March 31, 2017)
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
Proceeds from withdrawal of trust account for
acquisition of treasury stock
Cash dividends paid
Payments from changes in ownership interestsin subsidiaries that do not result in change inscope of consolidation
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 equivalents(669,187)

24,787

3,887,100

2,936,000(5,353,314)(35,000)(2,598,523)(35,000)(1,120)(702,042)(866)(595,616)(1,401,728)--

229,251(216,341)(196,423)-(9,932)

(105)

(100)

(4,491,739)(246,424)(4,338)(2,532)(1,705,777)(331,610)

Cash and cash equivalents at beginning of year

11,007,118

9,301,340

Cash and cash equivalents at end of year

9,301,340

8,969,729

13

(5) Notes to Consolidated Financial Statements(Notes regarding premise of a going concern)
Nothing is applicable.
(Changes in accounting policies)(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 current consolidated fiscal year. Alongwith this, the depreciation 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.
As a result, the operating income, ordinary income, and income before income taxes for this consolidated fiscal year
increased by 26,347 thousand yen.
(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 current consolidated fiscal year.

14

(Segment information, etc.)【Segment information】
1. Overview of the reporting segments(1) How to determine the reporting segments
The reporting segments of the Corporate Group are the constituent units of business for which segregated financial
information is available and that are the subject of regular examination by the Board of Directors to decide management
resources and assess business performance.
The Company has business departments for each service, and each business department develops comprehensive
strategies for the services, etc. that they handle. Therefore, the Company is consisted of segments per service based oneach business department. There are 4 reporting segments including “Nursing-Care Business”, “Karaoke Business”,“Restaurant Business” and “Real Estate Business”.
(2) Types of products and services that belong to each reporting segment
The “Nursing Care Business” operates fee-based nursing homes for elderly, day-service centers, group homes andcare planning centers. It also conducts sales and lease of social-welfare tools and provides day-services such as
afterschool assistance for children with disabilities. The “Karaoke Business” operates karaoke stores, and the“Restaurant Business” operates restaurants such as izakaya and udon noodle restaurant. The “Real Estate Business”
undertakes sale and purchase of real estate for sale and lease, management and brokerage of buildings, residences, andother properties.
2. Method to calculate the amount of sales, profits, loss, assets and other items per reporting segment per reporting segment
The accounting of reporting business segments is handled in the almost same way as the accounting method used in creating
consolidated financial statements.
The profit in the reporting segment is based on the figures of operating income.
Internal profit and transferred amount among the segments are based on the prevailing market values.

15

3. Information concerning the amount of sales, profits, loss, assets and other items per reporting segment
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)(Thousands of yen)
Reporting segments
Others (Note)

Total

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

12,836,667

8,558,664

1,928,555

311,243

23,635,130

261,968

23,897,098―

817

46,4258,611

55,853―55,853

12,836,667

8,559,482

1,974,980

319,854

23,690,984

261,968

23,952,952

441,794

623,649(35,016)

86,5381,116,966(12,999)

1,103,966

9,125,961

6,172,120

1,128,209

2,066,918

18,493,209

221,954

18,715,164

322,517

816,750

95,386

13,4791,248,133

8,546

1,256,679

2,668,411

1,424,543

196,270

3,079

4,292,305

809

4,293,115

Total

Sales
Sales to external customers
Internal sales or transferred amountamong the segments
Total
Segment income (loss)
Segment assets
Other items
Depreciation and amortization
Increased amount for property, plant andequipment and intangible assets(Note) “Others” is the business segment that is not included in the reporting segment. “Others” include hotel business andcommunication business.
Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Thousands of yen)
Reporting segments

Others (Note)

Total

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

14,431,417

8,138,687

1,849,813

651,134

25,071,053

247,252

25,318,306―

545

44,071

700

45,317―45,317

14,431,417

8,139,232

1,893,885

651,834

25,116,370

247,252

25,363,623

993,540

770,146(45,142)

111,434

1,829,978(25,595)

1,804,382

10,911,340

5,268,632

1,046,276

2,020,760

19,247,009

215,813

19,462,823

315,617727,245

102,898

12,788

1,158,550

8,120

1,166,670

1,575,505

699,052

274,8298,100

2,557,487

1,543

2,559,031

Total

Sales
Sales to external customers
Internal sales or transferred amountamong the segments
Total
Segment income (loss)
Segment assets
Other items
Depreciation and amortization
Increased amount for property, plant andequipment and intangible assets(Note) “Others” is the business segment that is not included in the reporting segment. “Others” include hotel business.

16

4. Balance between the total amount of reporting segments and the amount on the consolidated balance sheet and the breakdownof the balance (Items concerning balance adjustment)(Thousands of yen)
Sales

Previous consolidated fiscal year Current consolidated fiscal year

Reporting segments, total amount

23,690,984

25,116,370

Sales for “Others” segment

261,968

247,252

Offsetting between segments(55,853)(45,317)

23,897,098

25,318,306

Sales on the consolidated balance sheet(Thousands of yen)
ProfitPrevious consolidated fiscal year Current consolidated fiscal year

Reporting segments, total amount

1,116,966

1,829,978

Profit (loss) for the “Others” segment(12,999)(25,595)

Offsetting between segments

454,711475,092(1,429,951)(1,501,910)

128,726

777,564

Expenses for all companies (Note)
Operating income on the consolidated balance sheet(Note) Expenses for all companies are mainly general administrative expenses that do not belong to the reporting segments.
(Thousands of yen)
AssetsPrevious consolidated fiscal year Current consolidated fiscal year

Reporting segments, total amount

18,493,209

19,247,009

Assets for the “Others” segments

221,954

215,813

Offsetting of debt

(2,949,345)(3,523,492)

Assets of all companies (Note)

15,146,590

14,416,544

Total assets on the consolidated balance sheet

30,912,409

30,355,875(Note) Assets of all companies are mainly surplus funds (cash and deposits) that do not belong to the reporting segments, longterm investment funds (investment securities), and assets for operation department.
(Thousands of yen)
Reporting segments, total
Other items

Previous

Current

OthersPrevious

Adjustment amount (Note)
Current

Previous

Current

Amount on the consolidatedbalance sheet
Previous

Current

consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated

Depreciation and amortization

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

1,248,133

1,158,550

8,546

8,120

27,36032,187

1,284,040

1,198,858

4,292,305

2,557,487

809

1,543

30,58547,555

4,323,700

2,606,587

Increased amount for
property, plant andequipment and intangible
assets(Note) 1. The adjustment amount of depreciation and amortization (i.e. previous consolidated fiscal year: 27,360 thousand yen
and current consolidated fiscal year: 32,187 thousand yen) is for the operation department of the head office.
2. The adjustment amount of property, plant and equipment and intangible assets (i.e. previous consolidated fiscal year:
30,585 thousand yen and current consolidated fiscal year: 47,555 thousand yen) is the capital investment amount in
the all companies’ assets that do not belong to each segment.

17

【Related information】
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)
1. Information for each product and service
It is not described here because the same information is disclosed in the Segment Information section.
2. Information per region(1) Sales
Because sales to the external customers within Japan exceed 90% of the sales on the consolidated balance sheet, thedescription is omitted here.
(2) Property, plant and equipment
Because the amount of property, plant and equipment that exist within Japan exceeds 90% of the property, plant andequipment on the consolidated balance sheet, the description is omitted here.
3．Information per major customer(Thousands of yen)
Name of the customer

Sales
4,310,945

Fukuoka National Health Insurance Organization

Relevant segment
Nursing Care BusinessCurrent consolidated fiscal year (From April 1, 2016 to March 31, 2017)
1. Information for each product and service
It is not described here, because the same information is disclosed in the Segment Information section.
2. Information per region(1) Sales
Because sales to the external customers within Japan exceed 90% of the sales on the consolidated balance sheet, thedescription is omitted here.
(2) Property, plant and equipment
Because the amount of property, plant and equipment that exist within Japan exceeds 90% of the property, plant andequipment on the consolidated balance sheet, the description is omitted here.
3．Information per major customer(Thousands of yen)
Name of the customer

Sales
4,671,937

Fukuoka National Health Insurance Organization

18

Relevant segment
Nursing Care Business【Information concerning impairment loss of noncurrent assets per reporting segment】
Previous consolidated fiscal year (From April 1, 2015 to March 31, 2016)(Thousands of yen)
Reporting segment
All companies/

Impairment loss

Nursing-Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business―

97,439170,460

OthersTotal
offset―4,880―

272,780

Current consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Thousands of yen)
Reporting segment
All companies/

Impairment loss

Nursing-Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business―

761,948

117,675

16,658OthersTotal
offset――【Information concerning amortization amount and unamortized balance of goodwill per reporting segment】
Nothing is applicable.
【Information concerning gain from negative goodwill per reporting segment】
This has been omitted since it has little importance.

19896,281(Per share information)
Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2015 to(From April 1, 2016 to
March 31, 2016)
March 31, 2017)
Net assets per share

765 yen 54 sen

765 yen 34 sen

Net income per share

46 yen 11 sen

3 yen 10 sen

Diluted net income per share

46 yen 03 sen

3 yen 09 sen(Note)The basis of calculation for net income per share and diluted net income per share is as follows.
Item

Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2015 to(From April 1, 2016 to
March 31, 2016)
March 31, 2017)

Net income per share
Profit attributable to owners of the parent (thousandyen)
Amount that is not attributable to common shareholders (thousand yen)
Profit attributable to owners of the parent for commonshare (thousand yen)
Average number of common shares outstanding(shares)

983,096

59,987――

983,096

59,987

21,322,764

19,370,066――

Increased number of common shares (shares)

33,62929,408(Out of which, subscription rights to shares (shares))(33,629)(29,408)

Diluted net income per share
Adjustment amount of profit attributable to owners of
the parent (thousand yen)

Overview of the dilutive shares that are not included in thecalculation of the diluted net income per share because they
did not have dilutive effect.

―(Significant subsequent event)Nothing is applicable.

20―