Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2016
[Japanese GAAP] (Consolidated)
February 10, 2016
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 Financial Statements Filing:
February 12, 2016
Scheduled Date of Dividend Payment Start:
Supplementary materials for Financial Results: None
Investor conference for Financial Results: None

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

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

Millions of yen%

Millions of yen

FY 2016 3Q
17,9131.5
230(81.0)FY 2015 3Q
17,6519.2
1,210(30.4)(Note) Comprehensive income
FY 2016 3Q: ¥ 728 million (-10.2%)
Net income
per share
FY 2016 3Q
FY 2015 3Q%

Millions of yen%

330(75.6)
778
(3.1)
1,357
(27.3)
803(56.8)FY 2015 3Q: 811 million (-56.7%)

Diluted net income per
share
Yen

Yen

36.07
37.15

36.02
37.09

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2016 3Q
FY 2015(Reference) Equity capital:

Equity ratio

Millions of yen

32,26732,693
FY 2016 3Q: ¥15,689 million%

15,691
15,386
FY 2015: ¥15,378 million

48.6
47.0

2. Dividends
Dividends per share
End of the 1Q

End of the 2Q

Yen

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

Year-end

End of the 3Q

Annual

Yen

Yen

Yen

Yen

6.00
5.00

―
―

5.00

11.00

5.00

10.00

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

Net sales
Millions of yen

Full year

24,436

Operating income%

3.4

Millions of yen

422%(70.5)(Note) Changes from the latest financial forecast: Revised: None

Profit attributable toowners of parent

Ordinary income
Millions of yen

540%(65.2)

Millions of yen

659

Net income
per share%Yen(48.9)

30.51

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

FY 2016 3Q

21,618,800 shares

FY 2015

21,618,800 shares

FY 2016 3Q

423,776 shares

FY 2015376 shares

FY 2016 3Q

21,584,544 shares

FY 2015 3Q

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

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

○Table of contents of the appendix

1. Qualitative Information Concerning Financial Results ................................................................................................................. 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ............................................................ 3
2. Notes on Summary Information (Notes) ....................................................................................................................................... 4(1) Important Transfers in Subsidiaries during the Consolidated Cumulative Third Quarter of This Fiscal Year ......................... 4(2) Special Accounting Policies Applied in Preparation of the Quarterly Consolidated Financial Statements ............................. 4(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement ........................................................... 4
3. Consolidated Financial Statements ............................................................................................................................................... 5(1) Consolidated Balance Sheets................................................................................................................................................... 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 7(3) Notes Regarding Consolidated Financial Statements .............................................................................................................. 9(Notes Regarding Premise of a Going Concern) ....................................................................................................................... 9(Notes on Significant Changes in the Amount of Shareholders’ Equity) .................................................................................. 9(Segment Information, etc.) .................................................................................................................................................... 10

1. Qualitative Information Concerning Financial Results(1) Analysis Concerning Results of Operations (Results of operations during the third quarter of current FY)
In the third quarter of the current consolidated fiscal year, the Japanese economy has been gently recovering as corporate earnings
and employment conditions have been improving, because of a weak yen and the strong performance of the Japanese stock market.
However, with low consumer spending due to the consumption tax hike threatening to drag on, as well as the price ofcommodities being forced down by the crash in crude oil prices, future market movements are uncertain with warnings of a switch
to a deflationary mindset.
Under these management conditions, our corporate group has been proactive in undertaking a number of sales activities based on
our business strategies in each segment. As a way to improve the synergy across our businesses, we have been increasing the added
value of our services, such as sending one of our chefs from our Restaurant Business to a nursing home to give a tuna dissection
show for the residents, and promoting our services for after-parties in the Karaoke and Restaurant Businesses to pull in morecustomers.
As for expenditures, we streamlined our business administration by reducing costs, to stabilize our business performance. As aresult, sales of the third quarter of the current consolidated fiscal year were 17,913,472 thousand yen (up 1.5% Year-on-Year(YoY)), operating profit was 230,209 thousand yen (down 81.0% YoY), ordinary income was 330,596 thousand yen (down 75.6%
YoY), and profit attributable to owners of patent was 778,600 thousand yen (down 3.1% YoY).
The results of each segment were as follows.
(1) Nursing Care BusinessWe strived for developing nursing care business. For instance, we established 6 charged nursing-care homes for the elderly,
and newly established 1 group home, 3 temporary care facilities called “Short Stay”, and 1 after-school day care service centeras day care supporting handicapped people project. Accordingly, we have 69 business sites and 134 offices as of the end of thethird quarter of this fiscal term. In order to decrease the vacant rooms of our existing facilities, we strived to cement thecooperative relations with nearby hospitals and in-home nursing care supporting offices by visiting them. On the other hand,
there were expenditures as the remuneration rate for nursing care decreased in Apr. 2015 and some fixed costs, including
management personnel and facilities maintenance expenses, for the charge nursing-care homes for the elderly established in
the previous term and this quarter, and this affected the income for this quarter. As a result, sales were 9,507,837 thousand yen(up 9.9% YoY) and segment income was 415,743 thousand yen (down 41.5% YoY).
(2) Karaoke Business
For the Karaoke Business segment, we made efforts to recover the number of customers by renewing 25 existing stores, etc.
We also strived to increase repeat customers by promoting all-you-can-drink courses and soliciting customers for membershipon mobile devices. In addition, we aimed to improve strategies for attracting customers by actively utilizing information
websites of restaurants. As a result, sales were 6,480,353 thousand yen (down 2.3% YoY) and segment income was 523,550
thousand yen (down 50.2% YoY). In the third quarter of the current consolidated fiscal year, we have established a new store in
Nagasaki Prefecture, converted a drinking establishment into a new store and closed another store in Fukuoka Prefecture,bringing our total number of stores to 100 at the end of the third quarter.
(3) Restaurant Business
For the Restaurant Business segment, we renewed 4 existing stores. We have seen the establishment of our second and third
overseas restaurants in Bangkok, Thailand: “Kantekiya Thong Lo”, opened in March and “Kantekiya Phrom Phong”, opened in
December. We also saw the closure of 2 restaurants in Japan, as well as the conversion of one restaurant into a karaoke parlor,
resulting in a total of 25 domestic and 3 overseas restaurants as of the end of the third quarter. At existing stores, the number ofcustomers is decreasing, and so we made efforts to increase customers with limited offers and promote drinking parties, etc. byvisiting companies, to increase corporate clients. As a result, sales were 1,464,573 thousand yen (down 3.1% YoY) and segment
loss was 23,045 thousand yen (segment income was 113,516 thousand yen during the same quarter last year).

2(4) Real Estate Business
For the Real Estate Business segment, the Company 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 260,087 thousand yen (down 55.6％
YoY) and segment income was 70,481 thousand yen (up 62.6% YoY).
(5) Other BusinessIn the Other Business segment, we are planning to capitalize on renewed domestic tourism demand resulting from the weak
yen in our hotel business by increasing advertising to bring in more guests. As a result, sales were 200,620 thousand yen (down
24.7% YoY) and segment loss was 4,939 thousand yen (segment loss was 6,190 thousand yen during the same quarter last year).

(2) Analysis Concerning Financial Situation
Total assets as of the end of the third quarter of this consolidated fiscal year came to 32,267,743 thousand yen, down 425,433
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 14,427,788 thousand yen, down 1,773,738 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because cash and deposit decreased.
Noncurrent assets came to 17,839,955 thousand yen, up 1,348,304 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because buildings and structures, investments and other assets increased.
Liabilities as of the end of the third quarter of this consolidated fiscal year came to 16,576,397 thousand yen, down 730,764 fromthe end of the previous consolidated fiscal year.
Current liabilities came to 7,223,889 thousand yen, up 143,743 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because accounts payable and current liabilities (others) increased.
Noncurrent liabilities came to 9,352,508 thousand yen, down 874,507 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because long-term loans payable decreased.
Net assets as of the end of the third quarter of this consolidated fiscal year came to 15,691,346 thousand yen, up 305,330
thousand yen from the end of the previous consolidated fiscal year. This is mainly because the retained earnings resulting fromadding up profit attributable to owners of parent increased.
Consequently, the equity ratio as of the end of the third quarter of this consolidated fiscal year was 48.6%. As for the liquidity offunds, the current ratio as of the end of the third quarter of this consolidated fiscal year was 199.7%. We will boost this ratio, inorder to secure sufficient liquidity.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
We maintain our estimates for the period ending March 2016, as announced on November 11, 2015.

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2. Notes on Summary Information (Notes)(1) Important Transfers in Subsidiaries during the Consolidated Cumulative Third 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(Changes in Accounting Policies)(Application of the Accounting Standard for Business Combination)
The “Accounting Standard for Business Combination” (ASBJ Statement No. 21, September 13, 2013, hereinafter referred to as
the “Business Combination Accounting Standard.”), the “Accounting Standard for Consolidated Financial Statements” (ASBJ
Statement No. 22, September 13, 2013, hereinafter referred to as the “Consolidated Accounting Standard.”) and the “Revised
Accounting Standard for Business Divestitures,” (ASBJ Statement No. 7, September 13, 2013, hereinafter referred to as the“Business Divestitures Accounting Standard.”) shall be applied from the consolidated first quarter of this fiscal year. In the casethat ownership was to be continued, our company shall post the change in our equity on the subsidiary as capital surplus, andrecord acquisition-related cost as the expense for the fiscal year in which it emerged. As for the business combination after the
beginning of the first quarter of this consolidated fiscal year, we shifted to the method of reflecting the revision to the allocatedamount of acquisition cost based on provisional accounting settlement in the quarterly consolidated financial statements for theperiod including the business combination. In addition, we changed the indication of quarterly net profit, etc. and shifted fromminority interest to non-controlling interest. In order to reflect these revisions, quarterly and annual consolidated financial
statements for the previous third quarter and the previous consolidated financial year have been reproduced.
As for the application of the Business Combination Accounting Standard, etc., we follow the provisions for transitional
handling specified in the Business Combination Accounting Standard No. 58, Section 2 (4), the Consolidated Accounting Standard
No. 44, Section 5 (4) and the Business Divestiture Accounting Standard No. 57, Section 4 (4), from the beginning of this first
consolidated accounting quarter to the future.
Its effect on quarterly consolidated financial statements is minor.

(Changes in Accounting Estimates)
Changes to the estimate of asset retirement obligation
In regards to asset retirement obligation calculated as obligation of recovery arising from real estate lease contracts of tenants,changes were made to the cost of restoring a tenant to its original condition when leaving and the estimated period of leasing due
to the newly gained information for leaving and moving. As a result, 35,772 yen was added to the accounting estimates of theconsolidated cumulative third quarter.

4

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

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

11,925,172
1,418,113

9,734,305
1,542,323

72,350720,149

105,469
720,92639
2,086,535

39
2,347,357(20,833)(22,633)

16,201,527

14,427,788

Buildings and structures, net
Land7,129,636
3,729,127

7,689,290
3,659,434

Other, net

1,447,276

1,732,500

Total property, plant and equipment

12,306,040

13,081,225

61,182

56,6804,212,393

4,790,387(87,966)(88,338)

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

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

4,124,427

4,702,048

16,491,650

17,839,955

32,693,177

32,267,743

Liabilities
Current liabilities
Notes and accounts payable-trade

331,926

447,613

Short-term loans payable
Current portion of bonds

1,489,000
35,0001,595,500
35,000Current portion of long-term loans payable
Income taxes payable

2,589,297
140,465

2,368,740
11,779Provision for bonuses
Provision for point card certificates

197,316
271,571

109,111379,362

Provision for shareholder benefit program
Asset retirement obligation

12,050-41,054Other

2,013,518

2,235,727

Total current liabilities

7,080,146

7,223,889

Bonds payable
Long-term loans payable

35,0008,281,439

17,5007,257,026

Asset retirement obligation
Other

199,9091,710,666

196,494
1,881,486

Total noncurrent liabilities

10,227,016

9,352,508

17,307,162

16,576,397

Noncurrent liabilities

Total liabilities

5

FY ended March 31, 2015
(As of March 31, 2015)(Thousands of yen)
3Q of FY ending March 31,
2016(As of December 31, 2015)

Net assets
Shareholders' equity
Capital stock
Capital surplus

2,222,935
2,676,892

2,222,935
2,676,892

Retained earnings
Treasury stock

10,446,116(237)

11,008,532(207,136)

Total shareholders' equity

15,345,707

15,701,224

31,897(12,365)705

678

32,602(11,687)

7,705

1,809

Total net assets

15,386,015

15,691,346

Liabilities and net assets

32,693,177

32,267,743

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeNon-controlling interests in income6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Cumulative period through the consolidated third quarter of current fiscal year

Net sales
Cost of sales

3Q of FY ended March 31,
2015(April 1,2014- December 31,
2014)
17,651,959
15,364,743(Thousands of yen)
3Q of FY ending March 31,
2016(April 1,2015- December 31,
2015)
17,913,472
16,520,955

Gross profit

2,287,216

1,392,516

Selling, general and administrative expenses

1,077,198

1,162,306

Operating profit

1,210,018

230,209

Non-operating income
Interest income

6,478

8,986

Dividends income
Commission fee

1,904
103,039

1,277
66,721

Subsidy income
Other

3,258
157,767

49,02088,520Total non-operating income

272,448

214,526

107,482

96,255Non-operating expenses
Interest expenses
Other

17,461

17,883

Total non-operating expenses

124,943

114,139

1,357,522

330,596

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets-

688,953

Gain on sales of investment securities
Gain on negative goodwill-

127,467
20,605

Insurance proceeds-

68,699Total extraordinary income-

905,725

12,534-Extraordinary loss
Loss on retirement of fixed assets
Impairment loss-

46,202

Total extraordinary loss

12,534

46,202

Income before income taxes

1,344,987

1,190,120

Income taxes-current
Income taxes-deferred

450,118
91,715

232,152
185,234

Total income taxes

541,834

417,387

Net income

803,153

772,733

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

7-(5,867)803,153778,600

Consolidated Statements of comprehensive income
Cumulative period through the consolidated third quarter of current fiscal year

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

3Q of FY ended March 31,
2015(April 1,2014- December 31,
2014)
803,153(Thousands of yen)
3Q of FY ending March 31,
2016(April 1,2015- December 31,
2015)772,733

8,123(44,263)-(55)

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

8

8,123

(44,319)

811,276

728,413

811,276

734,309-(5,895)

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

(Notes on Significant Changes in the Amount of Shareholders’ Equity)
In the third quarter of the current consolidated fiscal year, we have bought back 423,400 shares in accordance with theresolution at the Board of Directors’ Meeting on November 19, 2015. As a result, treasury share value has increased by 206,899
thousand yen year-to-date, giving a third quarter end value of 207,136 thousand yen.

9

(Segment Information, etc.)
I. Cumulative period through the consolidated third quarter of the previous fiscal year (April 1 – December 31, 2014)
1. Information on sales, profits or losses for each segment(Thousands of yen)
Reporting segments

Others (Note)

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

8,652,606

6,635,517

1,511,857

―

1,139

8,652,606
710,605

Total

Adjustment
Amount*2

Consolidatedbalance sheet

Total

*1

585,493

17,385,475

266,484

17,651,959―

17,651,959

37,191

2,826

41,157

102

41,259(41,259)―

6,636,657

1,549,048

588,319

17,426,632

266,586

17,693,218(41,259)

17,651,959

1,050,421

113,516

43,354

1,917,898(6,190)1,911,707(701,689)

1,210,018

amount*3

Sales
Sales to externalcustomers
Internal sales
or transferred
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, and includes
Hotel Business and Communication Business.
2. The segment income (loss) adjustments amount, -701,689 thousand yen, includes -1,043,227 thousand yen in company-wide
expenses that are not allocated to reporting segments and 341,538 thousand yen in inter-segment eliminations. The companywide expenses are mainly selling, general and administrative expenses that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.

10I. Cumulative period through the consolidated third quarter of current fiscal year (April 1 – December 31, 2015)
1. Information on sales, profits or losses for each segment(Thousands of yen)
Reporting segments

Others (Note)

Total

Adjustment

Consolidatedbalance sheet

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

9,507,837

6,480,353

1,464,573

260,087

17,712,851

200,620

17,913,472―

17,913,472―

750

34,675

6,361

41,787―

41,787(41,787)―

9,507,837

6,481,104

1,499,248

266,448

17,754,639

200,620

17,955,259(41,787)

17,913,472

415,743

523,550(23,045)

70,481

986,728(4,939)981,789(751,579)

230,209Total*1

Amount*2

amount*3

Sales
Sales to externalcustomers
Internal sales
or transferred
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, and includes
Hotel Business and Communication Business.
2. The segment income (loss) adjustments amount, -751,579 thousand yen, includes -1,090,582 thousand yen in company-wide
expenses that are not allocated to reporting segments and 339,002 thousand yen in inter-segment eliminations. The companywide expenses are mainly selling, general and administrative expenses that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Significant impairment loss relating to non-current assets)
In this quarter, regarding stores which were closed and are scheduled to transfer and close, impairment loss of the Karaoke
Business segment was 24,422 thousand yen, and impairment loss of the Restaurant Business was 21,779 thousand yen.
(Significant gain on negative goodwill)In this quarter, for the Nursing-care Business segment, the gain on negative goodwill was 20,605 thousand yen, as we took over
one nursing-care facility operated by Yorozuya Co., Ltd. in Oita city, Oita prefecture on September 30, 2015.

11