Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2017
[Japanese GAAP] (Consolidated)
August 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 Dividend Payment Start:―
Scheduled Date of Financial Statements Filing:
August 12, 2016
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 First Quarter of the Fiscal Year Ending March 31, 2017 (April 1, 2016 – June 30, 2016)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of patentMillions of yen

FY 2017 1Q
FY 2016 1Q(Note) Comprehensive income%

Millions of yen

5,885
4.7
(23)
5,619
(1.8)
(17)
FY 2017 1Q: -¥4 million (－%)
Net income
per share

FY 2017 1Q
FY 2016 1Q%

Millions of yen%

Millions of yen%

23(21.4)－
29(92.0)－FY 2016 1Q: 94 million (-55.5%)

2
92(97.0)(55.2)

Diluted net income per
share
Yen

Yen

0.14
4.29

0.14
4.28

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2017 1Q
FY 2016(Reference) Equity capital:

Equity ratio

Millions of yen

30,90430,912
FY 2017 1Q: ¥14,830 million%

14,83248.0
15,28549.4
FY 2016: ¥15,284 million

2. Dividends
Dividends per share
End of the 1Q

End of the 2Q

Yen

FY 2016－
FY 2017－
FY 2017 (forecast)(Note) Changes from the latest dividend forecast: None

Year-end

End of the 3Q

Annual

Yen

Yen

Yen

Yen

5.00

－

5.00

10.00

5.00

－

5.00

10.00

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)(% of change from previous year for full year, same quarter of the previous year for 2Q)

Net sales
Millions of yen

Operating income%

Millions of yen

2Q
12,3985.7
234(cumulative)
Full year
25,6187.2
898(Note) Changes from the latest financial forecast: None

Profit attributable toowners of patent

Ordinary income

Net income
per share%

Millions of yen%

Millions of yen

%

Yen

205.3

271

69.6

166

(62.5)

8.36

597.8

907

179.5

614

(37.5)

30.77

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) Application of the accounting procedures for producing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements:
1) Changes in accounting policies due to revisions of accounting standards:
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

Yes
None
None
None

FY 2017 1Q

21,618,800 shares

FY 2016

21,618,800 shares

FY 2017 1Q

2,287,776 shares

FY 2016

1,652,676 shares

FY 2017 1Q

19,487,621 shares

FY 2016 1Q

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

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

* Statement regarding the proper use of financial forecasts and other remarks
 Descriptions regarding the future, including the financial projections contained in this report, are based on certain
assumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable. Actual
financial results may significantly vary due to various factors. For assumptions used in forecasting financial results andprecautions in using the financial projections, please refer to Appendix on Page 3, “1. Analysis concerning results ofoperations and financial condition (1) Analysis concerning results of operations.”
 A meeting for explaining the businesses and results to individual investors will be held when necessary. For the schedule ofthe meeting, etc., please see the website of the company.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ........................................................... 3
2. Notes on Summary Information (Notes) ...................................................................................................................................... 4(1) Important Transfers in Subsidiaries during the Consolidated Cumulative First 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(4) Additional Information ........................................................................................................................................................... 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.) ........................................................................... 9

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations(Results of operations during the first quarter of current FY)
In the first quarter of this consolidated fiscal year, the Japanese economy was affected by the unstable trends of theexchange and share markets, corporate earnings and consumer spending were stagnant, and the Kumamoto Earthquake,
which occurred in mid-April, became a factor in the economic downturn.
In addition, the global economy remains uncertain, because there are some concerns over the British exit from theEuropean Union, the economic slowdown of China, etc.
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 first quarter of the current consolidated fiscal year were 5,885,369 thousand yen (up 4.7% Yearon-Year (YoY)), operating loss was 23,356 thousand yen (operating loss was 17,448 thousand yen during the same term lastyear), ordinary income was 23,234 thousand yen (down 21.4% YoY), and profit attributable to owners of patent was 2,770
thousand yen (down 97.0% YoY).
The results of each segment were as follows.
(1) Nursing Care Business
For the Nursing Care Business segment, we established “Sawayaka Ai-no-ie Moji Kan,” an after-school day-care centerfor disabled children, in April. Accordingly, the number of sales footholds as of the end of the first quarter is 72 (137 offices).
At existing facilities, we aimed to stabilize occupancy ratio and reduce the number of vacant rooms by promoting thecementing of cooperation with nearby hospitals and home care support offices by visiting them. We also announced that wewould welcome elderly victims of the Kumamoto Earthquake, which occurred in mid April, free of charge, and a total of 38
victims moved into our facilities. As a result, sales were 3,464,008 thousand yen (up 14.1% YoY) and segment income was
231,028 thousand yen (up 105.3% YoY).
(2) Karaoke Business
For the Karaoke Business segment, we strived to increase customers for all-you-can-drink courses, etc. and mobileservice members for smartphones, to increase repeat customers, and utilized the informative websites for restaurants actively,
to attract customers. However, in the wake of the Kumamoto Earthquake in April, 3 restaurants in Kumamoto Prefecture
were closed for about 1 week, and customers in the entire Kyushu region decreased. As a result, sales were 1,889,249
thousand yen (down 5.3% YoY) and segment income was 21,571 thousand yen (down 82.7% YoY). In this quarter, we did
not open any new stores, but closed one store. Accordingly, the number of stores is 96 as of the end of this quarter.
(3) Restaurant Business
For the Restaurant Business segment, one restaurant changed its business type, and 2 restaurants were closed down.
Consequently, the number of restaurants as of the end of the first quarter is 23 in Japan, and 3 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 thedemand for banquets, etc. by visiting each enterprise, to increase corporate customers. However, one restaurant was closed
for about 1 week due to the Kumamoto Earthquake, like the Karaoke Business, and the number of customers was on adecline. As a result, sales were 432,122 thousand yen (down 8.9% YoY) and segment loss was 14,181 thousand yen(segment loss was 19,651 thousand yen during the same term 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 51,721 thousand yen (up 16.9% YoY)
and segment income was 13,319 thousand yen (up 76.0% YoY).
(5) Other businesses
In the Other businesses segment, for the hotel business, customers decreased as many reservations were cancelled after
the Kumamoto Earthquake. As a result, sales were 48,267 thousand yen (down 30.2% YoY) and segment loss was 11,558
thousand yen (segment loss was 321 thousand yen during the same term last year).

(2) Analysis Concerning Financial Situation
Total assets as of the end of the first quarter of this consolidated fiscal year came to 30,904,017 thousand yen, down 8,391
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 13,758,982 thousand yen, down 339,933 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because cash and deposit and current assets (other) decreased and notes and accounts receivabletrade increased.
Noncurrent assets came to 17,145,034 thousand yen, up 331,541 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because land and property, plant and equipment (other) increased and buildings and structures
decreased.
Liabilities as of the end of the first quarter of this consolidated fiscal year came to 16,071,484 thousand yen, up 444,830
from the end of the previous consolidated fiscal year.
Current liabilities came to 6,937,654 thousand yen, up 505,127 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because short-term loans payable, provision for bonuses, and current liabilities (other) augmented.
Noncurrent liabilities came to 9,133,829 thousand yen, down 60,296 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because long-term loans payable increased and noncurrent liabilities (other) decreased.
Net assets as of the end of the first quarter of this consolidated fiscal year came to 14,832,533 thousand yen, down 453,222
thousand yen from the end of the previous consolidated fiscal year. This is mainly because treasury stock increased and thepayment of dividends decreased.
Consequently, the equity ratio as of the end of the first quarter of this consolidated fiscal year was 48.0%. As for theliquidity of funds, the current ratio as of the end of the first quarter of this consolidated fiscal year was 198.3%. We will boost
this ratio, in order to secure sufficient liquidity.

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

3

2. Notes on Summary Information (Notes)(1) Important Transfers in Subsidiaries during the Consolidated Cumulative First Quarter of This Fiscal Year
None(2) Special Accounting Policies Applied in Preparation of the Quarterly Consolidated Financial Statements
None(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement(Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
In line with a revision of corporation tax law, “Practical Solution on a Change in Depreciation Method due to Tax Reform
2016” (Practical Solution Report No.32 of June 17, 2016) has been applied since the current first quarter. Along with this, thedepreciation method for facilities attached to buildings and structures that were acquired after April 1, 2016 has been changed
from the declining balance method to the straight-line method.
The impact of this change on consolidated financial statements for the current first quarter is minor.

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

43. Consolidated Financial Statements(1) Consolidated Balance Sheets
FY ended March 31, 2016
(As of March 31, 2016)(Thousands of yen)
1Q of FY ending March 31,
2017(As of June 30, 2016)

AssetsCurrent assets
Cash and deposits

9,771,970

9,661,036

1,551,065
64,795

1,620,067
66,831

948,99439

952,624
39

Other
Allowance for doubtful accounts

1,773,223(11,173)

1,469,363(10,979)

Total current assets

14,098,916

13,758,982

Buildings and structures, net

7,494,227

7,441,106Land

3,346,595

3,514,386

Other, net

1,114,630

1,357,182

Total property, plant and equipment

11,955,453

12,312,675

55,20253,3894,890,712

4,866,609(87,875)(87,639)

Notes and accounts receivable-trade
Merchandise
Real estate for sale
Supplies

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

4,802,837

4,778,969

16,813,493

17,145,034

30,912,409

30,904,017

Liabilities
Current liabilities
Notes and accounts payable-trade343,831281,770819,81335,0001,172,513
35,0002,371,843
107,819

2,397,040
98,387

Provision for bonuses
Provision for point card certificates

217,384
387,858

332,228
390,741

Provision for shareholder benefit program
Asset retirement obligation

10,175
8,333

10,175
8,333

Other

2,130,468

2,211,464

Total current liabilities

6,432,527

6,937,654

Bonds payable
Long-term loans payable

7,032,679
199,340

7,127,096
215,652

Other

1,962,105

1,791,080

Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payableNoncurrent liabilities

Total noncurrent liabilities
Total liabilities

59,194,125

9,133,829

15,626,653

16,071,484FY ended March 31, 2016
(As of March 31, 2016)(Thousands of yen)
1Q of FY ending March 31,
2017(As of June 30, 2016)

Net assets
Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,676,892
11,213,028

2,676,892
11,118,049

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

Total shareholders' equity

15,297,345

14,851,870(13,186)(21,781)650

620(12,536)(21,160)

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

946

1,823

Total net assets

15,285,755

14,832,533

Liabilities and net assets

30,912,409

30,904,017

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
The first quarter of this consolidated fiscal year
1Q of FY ended March 31,
2016(April 1, 2015- June 30, 2015)
5,619,192(Thousands of yen)
1Q of FY ending March 31,
2017(April 1, 2016- June 30, 2016)
5,885,369

Cost of sales

5,249,317

5,481,570

Gross profit

369,874

403,798

Selling, general and administrative expenses

387,322427,154

Operating income (loss)(17,448)(23,356)

Interest income
Dividends income

1,934
1,027

1,575
24

Commission fee
Other17,20761,75022,04159,149Total non-operating income

81,91982,791

Net sales

Non-operating income

Non-operating expenses
Interest expenses

33,29923,962

Other

1,599

12,238

Total non-operating expenses

34,89836,200Ordinary income

29,57323,234Extraordinary income
Gain on sales of noncurrent assets

123,537-

Total extraordinary income

123,537-

Income before income taxes

153,110

23,234

Income taxes-current

62,196

81,987

Income taxes-deferred(794)(62,473)

Total income taxes

61,402

19,514

Net income

91,7083,720

Net profit (loss) before non-controlling interests

(995)

950

Net profit attributable to owners of parent

92,7042,770

7

Consolidated Statements of comprehensive income
The first quarter of this consolidated fiscal year
1Q of FY ended March 31,
2016(April 1, 2015- June 30, 2015)
91,708(Thousands of yen)
1Q of FY ending March 31,
2017(April 1, 2016- June 30, 2016)
3,720

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

1,685(8,594)

664

(103)

Total other comprehensive income

2,349(8,697)

Comprehensive income

94,058(4,976)Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

94,715(5,854)

(656)

877

Income before minority interests8(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)
Based on the resolution at the meeting of the board of directors held on November 19, 2015, we acquired 635,100
treasury shares in the first quarter of this consolidated fiscal year. As a result, the amount of treasury shares increased by
350,496 thousand yen in the first quarter of this consolidated fiscal year, and the amount of treasury shares as of the end of
the first quarter of this consolidated fiscal year is 1,166,007 thousand yen.
(Segment information, etc.)[Segment information]
I. Cumulative period through the consolidated first quarter of the previous fiscal year (April 1 – June, 30, 2015)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Others

Total

Adjustment

Consolidatedbalance sheet

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

3,035,593

1,995,920

474,260

44,2455,550,019

69,1725,619,192―

5,619,192

―

76

9,913

―

9,989

―

9,989

(9,989)―3,035,593

1,995,996

484,173

44,2455,560,009

69,172

5,629,181(9,989)5,619,192

112,507

124,689(19,651)

7,567

225,112(321)

224,790(242,238)(17,448)

Total(Note) *1

Amount*2

amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business and communication business.
2. The segment income adjustments amount, -242,238 thousand yen, includes 114,931 thousand yen in elimination ofintersegment transactions and -357,170 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
Nothing is applicable.

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

Others

Total

Adjustment

Consolidatedbalance sheet

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

3,464,008

1,889,249

432,12251,721

5,837,101

48,267

5,885,369―

5,885,369―

96

10,882―

10,978―

10,978(10,978)―

3,464,008

1,889,346

443,004

51,721

5,848,080

48,267

5,896,348(10,978)

5,885,369

231,028

21,571△14,181

13,319251,738(11,558)

240,179(263,535)(23,356)

Total(Note) *1

Amount*2

amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income adjustments amount, -263,535 thousand yen, includes 117,801 thousand yen in elimination ofintersegment transactions and -381,336 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
Nothing is applicable.

10