Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2018
[Japanese GAAP] (Consolidated)
Name of Listed Company:
UCHIYAMA HOLDINGS INC.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Fumiharu Uchiyama, President and Representative Director
Contact Point: Takehiro Yamamoto, Senior Managing Director and Manager of Business Planning Office
Phone: (093) 551-0002
Scheduled Date of Dividend Payment Start:−
Scheduled Date of Financial Statements Filing:
February 14, 2018
Supplementary materials for Financial Results: None
Investor conference for Financial Results: None

February 13, 2018
Stock Listing: TSE(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, 2018 (April 1, 2017 – December 31, 2017)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen

FY 2018 3Q
FY 2017 3Q(Note) Comprehensive income%

Millions of yen

19,7444.9
995
18,816
5.0
602
FY 2018 3Q: ¥714 million (37.9 %)Net income
per share

FY 2018 3Q
FY 2017 3Q

Millions of yen

Millions of yen

%

1,107
44.1
710
768
132.4
512
FY 2017 3Q: 518 million (-28.9 %)%38.8(34.2)

Diluted net income per
share
Yen

Yen

36.77
26.42

－
26.38

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2018 3Q
FY 2017(Reference) Equity capital:

%

65.1
161.8

Equity ratio

Millions of yen

31,68830,355FY 2018 3Q: ¥15,316 million%

15,31648.3
14,79448.7
FY 2017: ¥14,794 million

2. Dividends
End of the 1Q

End of the 2Q

Dividends per share
Year-end

End of the 3Q

Yen

FY 2017－
FY 2018－
FY 2018 (forecast)(Note) Changes from the latest dividend forecast: None

Annual

Yen

Yen

Yen

Yen

5.00
5.00

－
－
－

5.00

10.00

5.00

10.00

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)

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
26,810
5.9
1,120
44.2
1,081
7.2
702
36.32
－
(Note) 1 Changes from the latest financial forecast: None
2 Since the year-on-year growth rate of annual profit attributable to owners of parent for the term ending March 2018exceeds 1000%, “－” is used.

*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 outstanding shares (including treasury
stock) at end of term2) Number of treasury stock at end of term3) Average number of shares

None
None
None
None

FY 2018 3Q

21,618,800 shares

FY 2017

21,618,800 shares

FY 2018 3Q

2,287,776 shares

FY 2017

2,287,776 shares

FY 2018 3Q

19,331,024 shares

FY 2017 3Q

19,382,843 shares* Summary of financial results is out of scope of quarterly review.
* 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.
 The Company holds sessions for briefing business and results for individual investors, when necessary. For the schedule ofbriefing sessions, etc., please see the website of the Company.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ........................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................... 4(1) Consolidated Balance Sheets .................................................................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 6(3) Notes Regarding Consolidated Financial Statements.............................................................................................................. 8(Notes regarding premise of a going concern) .......................................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ...................................................................................... 8(Segment information, etc.) ...................................................................................................................................................... 8

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
In the third quarter of this consolidated term, the Japanese economy is gently recovering due to the improvement in thebusiness income and employment environment, but there are many uncertainties in sluggish consumer spending and the tension
in North Korea, and so the future outlook remains unclear.
Amid this business environment, our corporate group has actively carried out sales activities, etc. 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 third quarter of the current consolidated fiscal year were 19,744,037 thousand yen (up 4.9% Yearon-Year (YoY)), operating income was 995,039 thousand yen (up 65.1% YoY), ordinary income was 1,107,111 thousand yen(up 44.1% YoY), and profit attributable to owners of patent was 710,841 thousand yen (up 38.8% YoY).
The results of each segment were as follows.
1) Nursing Care Business
For the Nursing Care Business segment, we opened 3 fee-charging nursing homes and 5 facilities of “Sawayaka Ai-no-ie,”a day service center for after-school support for children with disabilities, and acquired 18 units of a group home in Midoriku, Chiba-shi, Chiba Prefecture. Like this, the Company actively carried out the nursing care business. As a result, the numberof sales footholds as of the end of the third quarter is 89 (161 offices). At existing facilities, we aimed to stabilize occupancy
ratio and reduce the number of vacant rooms by promoting the cementing of cooperation with nearby hospitals and home care
support offices by visiting them. Consequently, the average occupancy ratio of existing facilities in the third quarter of thisconsolidated term was 93.9% (91.8% in the same term last year). As a result, sales were 11,954,926 thousand yen (up 11.6%
YoY) and segment income was 988,533 thousand yen (up 26.6% YoY).
2) Karaoke Business
For the Karaoke Business segment, we tried to increase customers by utilizing an online portal site actively, and promoted
customers to subscribe to smartphone services, to increase repeat customers. We also strived to reduce cost through appropriate
staffing and the streamlining of business operation. As a result, sales were 5,755,394 thousand yen (down 6.1% YoY) andsegment income was 675,598 thousand yen (up 22.0% YoY). In the third quarter of the current consolidated fiscal year, weclosed three stores without opening any new stores. Accordingly, the number of stores is 93 as of the end of this quarter.
3) Restaurant Business
For the Restaurant Business segment, one existing store changed its business type, one karaoke shop changed its businesstype to a restaurant, and closed three stores. Accordingly, the number of stores as of the end of this third quarter is 21 inside
Japan, and 3 outside Japan. The number of customers at existing stores was stable. As a new type of store, we opened the
highball-specialized store “Highball Bar Gintengai 1923” in Kokurakita-ku, Kitakyushu-shi, to create new demand. As a result,sales were 1,339,941 thousand yen (down 3.8% YoY) and segment income was 15,438 thousand yen (segment loss was 21,623
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. Mainly because the sale of real estate for sale progressed, sales
were 499,768 thousand yen (up 23.0% YoY) and segment income was 106,993 thousand yen (up 11.3% YoY).
5) Other businesses
In the Other businesses segment, we strived to increase hotel guests by utilizing the advertisement media, with the aim of2

meeting the demand as domestic travels increased due to the yen depreciation, in the hotel business. As a result, sales were
194,006 thousand yen (up 7.6% YoY) and segment loss was 26,723 thousand yen (segment loss was 19,652 thousand yen
during the same term last year).

(2) Analysis Concerning Financial Situation
Total assets as of the end of the third quarter of this consolidated fiscal year came to 31,688,316 thousand yen, up 1,332,441
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 13,922,651 thousand yen, up 750,800 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because cash and deposits, notes and accounts receivable-trade increased.
Noncurrent assets came to 17,765,665 thousand yen, up 581,640 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because property, plant and equipment (other) increased.
Liabilities as of the end of the third quarter of this consolidated fiscal year came to 16,372,020 thousand yen, up 811,042
thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 7,988,918 thousand yen, up 1,732,260 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because short-term loans payable and current liabilities (other) increased.
Noncurrent liabilities came to 8,383,102 thousand yen, down 921,218 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 15,316,296 thousand yen, up 521,398
thousand yen from the end of the previous consolidated fiscal year. This is mainly because of an increase in retained earnings
arising from profit attributable to owners of parent.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2018, there are no changes to the estimated values
announced on May 12, 2017.

3

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2017
(As of March 31, 2017)

3Q of FY ending March 31, 2018
(As of December 31, 2017)

AssetsCurrent assets
Cash and deposits

9,249,929

9,723,705

Notes and accounts receivable-trade
Securities

1,731,381
5,003

1,932,938-

Merchandise
Real estate for sale

68,073
1,049,738

107,356
1,044,250

Supplies
Other

174
1,080,688

304
1,127,497

Allowance for doubtful accounts(13,138)(13,371)

13,171,850

13,922,651

7,721,059

7,333,447

Land
Other, net

3,629,089
1,011,502

3,523,980
2,112,264

Total property, plant and equipment

12,361,651

12,969,691

45,80048,9904,849,802

4,817,192(73,229)(70,208)

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

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

4,776,572

4,746,984

17,184,025

17,765,665

30,355,875

31,688,316

347,593844,600

372,469
2,186,000

2,225,201
162,427

2,467,644
166,071

Provision for bonuses
Provision for point card certificates

235,260
229,762

135,482
156,300

Provision for shareholder benefit program
Asset retirement obligation

11,815
6,833

-

Other

2,193,162

2,504,950

Total current liabilities

6,256,657

7,988,918

Noncurrent liabilities
Long-term loans payable

7,516,797

6,700,392

214,653
1,572,869

225,059
1,457,650

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

Asset retirement obligation
Other
Total noncurrent liabilities
Total liabilities

4

9,304,320

8,383,102

15,560,977

16,372,020

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

3Q of FY ending March 31, 2018
(As of December 31, 2017)

Net assets
Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,666,282
11,076,529

2,666,282
11,594,061

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

Total shareholders' equity

14,799,740

15,317,271(5,814)(1,579)972

603(4,842)(975)

14,794,897

15,316,296

30,355,875

31,688,316

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeTotal net assets
Liabilities and net assets5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
The third quarter of this consolidated fiscal year
(Thousands of yen)
3Q of FY ended March 31, 2017
(April 1, 2016- December 31, 2016)

3Q of FY ending March 31, 2018
(April 1, 2017- December 31, 2017)

Net sales

18,816,837

19,744,037

Cost of sales

16,925,609

17,474,448

Gross profit

1,891,228

2,269,589

Selling, general and administrative expenses

1,288,642

1,274,549

602,585995,039

Interest income
Dividends income

7,076
28

4,231
1,824

Commission fee
Insurance income

60,96955,24570,16855,748Other

148,017

56,207

Total non-operating income

271,338

188,179

Interest expenses
Other66,33539,28955,37020,736

Total non-operating expenses

105,624

76,107768,299

1,107,111

Gain on sales of noncurrent assets
Gain on donation of noncurrent assets

5,785

258,357-

Gain on sales of investment securities
Gain on negative goodwill

18,43723,943

9,739
61,238

Total extraordinary income

48,166329,335

Extraordinary loss
Loss on sales of noncurrent assets

3,817

72,859Loss on retirement of non-current assets
Impairment loss

12,639769
273,843

Total extraordinary loss

16,456

347,472

Income before income taxes

800,009

1,088,973

Income taxes-current

170,499

255,349

Income taxes-deferred

118,473

122,783

Total income taxes

288,973

378,132

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

511,035

710,841(1,065)-512,100

710,841

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

6Consolidated Statements of Comprehensive Income
The third quarter of this consolidated fiscal year
(Thousands of yen)
3Q of FY ended March 31, 2017
(April 1, 2016- December 31, 2016)

3Q of FY ending March 31, 2018
(April 1, 2017- December 31, 2017)

Net income

511,035

710,841

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

7,472

4,235

(255)

(368)

Total other comprehensive income

7,217

3,867

518,252

714,709519,198

714,709(946)-

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests7(3) Notes Regarding Consolidated Financial Statements(Notes regarding premise of a going concern)
Nothing is applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Nothing is applicable.
(Segment information, etc.)
I. Cumulative period through the consolidated third quarter of the previous fiscal year (April 1 – December 31, 2016)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

OthersNursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

10,710,524

6,126,417

1,393,287

406,343

18,636,573―

346

34,292400

35,03910,710,524

6,126,763

1,427,580

406,743

780,638

553,976(21,623)

96,093

Total(Note) *1

Total

Adjustment
Amount*2

Consolidatedbalance sheet
amount*3

Sales
Sales to externalcustomers―

18,816,837

35,039(35,039)―

18,671,613

180,263 18,851,876(35,039)

18,816,837

1,409,084(19,652)(786,846)

602,585

180,263 18,816,837

Internal sales ortransferred
amount among―

the segments
Total
Segment income(loss)

1,389,432(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, and includes
hotel business.
2. The segment income (loss) adjustments amount, -786,846 thousand yen, includes 354,984 thousand yen in eliminationof intersegment transactions and -1,141,831 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly selling, general and administrative expenses that are not allocatedto reporting segments.
3. Segment income (loss) is adjusted with operating losses calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Important impairment loss related to noncurrent assets)
Regarding stores that closed down and stores scheduled for relocation or closing in the third quarter of the current
consolidated fiscal year, there was an impairment loss of 268 thousand yen in the “Karaoke Business,” and 12,371 thousand
yen in the “Restaurant Business.”8II. Cumulative period through the consolidated third quarter of current fiscal year (April 1 – December 31, 2017)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

OthersNursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

11,954,926

5,755,394

1,339,941

499,768

19,550,031

―

5,937

39,6681,724

47,33011,954,926

5,761,331

1,379,610

501,493

988,533

675,598

15,438106,993

Total(Note) *1

Total

Adjustment
Amount*2

Consolidatedbalance sheet
amount*3

Sales
Sales to externalcustomers―

19,744,037

47,330(47,330)―

19,597,362

194,006 19,791,368(47,330)

19,744,037

1,786,564(26,723)(764,801)

995,039

194,006 19,744,037

Internal sales ortransferred
amount among―

the segments
Total
Segment income(loss)

1,759,840(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, and includes
hotel business.
2. The segment income (loss) adjustments amount, -764,801 thousand yen, includes 361,517 thousand yen in eliminationof intersegment transactions and -1,126,318 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly selling, general and administrative expenses that are not allocatedto reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Important impairment loss related to noncurrent assets)
In the third quarter of the current consolidated fiscal year, there was an impairment loss of 215,260 thousand yen in the“Karaoke Business,” and 58,582 thousand yen in the “Restaurant Business.”（Significant gain on negative goodwill）
In the “nursing care business” segment, the Company acquired a nursing-care facility, which had been operated by Kurashino-sato Ltd., in Chiba-shi, Chiba Prefecture on October 1, 2017. Accordingly, a gain on negative goodwill amounting to
61,238 thousand yen was posted in the consolidated cumulative third quarter.

9