Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022
[Japanese GAAP] (Consolidated)
November 11, 2021
Stock Listing: TSE

Name of Listed Company:
UCHIYAMA HOLDINGS Co., Ltd.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Takehiro Yamamoto, President and Representative Director
Contact Point: Tetsuo Kawakami, Director of General Affairs Department
Phone: (093) 551-0002
Scheduled Date of Financial Statements Filing: November 12, 2021
Scheduled Date of Dividend Payment Start: Supplementary materials for Financial Results: Yes
Investor conference for Financial Results: None

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

1. Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2022 (April 1, 2021 – September 30, 2021)(% 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 2022 1H
11,456
(2.0)
(272)
(47)
FY 2021 1H
11,695(29.4)(553)(363)(Note) Comprehensive income FY 2022 1H: ¥(482) million (-%) FY 2021 1H: ¥(306) million (-%)
Net income
per share

%

(514)
(316)

-

Diluted net income per
share
Yen

FY 2022 1H
FY 2021 1H

Millions of yen

Yen(26.61)(16.35)-(Note) Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) has been applied beginning with the firstquarter of the fiscal year ending in March 2022. All figures for the first half of the current fiscal year incorporate this standard.

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2022 1H
FY 2021(Reference) Equity capital:

Equity ratio

Millions of yen

29,64029,750FY 2022 1H: ¥13,082 million%

13,082
44.1
13,67446.0
FY 2021: ¥13,674 million(Note) Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) has been applied beginning with the firstquarter of the fiscal year ending in March 2022. All figures for the first half of the current fiscal year incorporate this standard.

2. Dividends
End of the 1Q
Yen

End of the 2Q

Dividends per share
End of the 3Q

Year-end

Annual

Yen

Yen

Yen

Yen

FY 2021
5.00
FY 20220.00
FY 2022 (forecast)(Note) Changes from the latest forecast announcement: Yes

-

5.00

10.00

-

10.00

10.00

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
It is difficult to reasonably calculate the impact on our business performance from the COVID-19 pandemic at the present
stage. Therefore, we have set our business forecast for the fiscal year ending March 31, 2022 to pending. We will promptly
announce our business forecast when it becomes possible to do so in the future.

*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:

Yes
None
None
None

(Note) For more details, please refer 2. Quarterly Consolidated Financial Statements and Important Notes (4) Notes to the Quarterly
Consolidated Financial Statements (Changes in accounting policies) on page 11 of the Appendix.

(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 term

FY 2022 2Q

21,618,800 shares

FY 2021

21,618,800 shares

FY 2022 2Q

2,287,777 shares

FY 20212,287,777 shares

3) Average number of shares during period

FY 2022 1H

19,331,023 shares

FY 2021 1H

19,331,023 shares

Note: The shares in the Company possessed by Custody Bank of Japan, Ltd. (Trust E) as a trust asset of the “stock benefit trust(J-ESOP)” (as of September 30, 2021: 72,150 shares / March 31, 2021: 72,150 shares) are included in the number oftreasury stock at end of term. In addition, the shares in the Company possessed by Custody Bank of Japan, Ltd. (Trust E) are
included in the treasury stocks to be deducted in the calculation of the average number of shares during period (1H ended
September 30, 2021: 72,150 shares / 1H ended September 30, 2020: 72,150 shares).
*Summary of financial results is out of scope of quarterly review by certified public accountant or audit corporation.
*Statement regarding the proper use of financial forecasts and other remarks
 Descriptions regarding the future, including the financial projections contained in this report, are based on certain
assumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable. Actual
financial results may significantly vary due to various factors. For assumptions used in forecasting financial results andprecautions in using the financial projections, please refer to “Analysis Concerning Future Forecasts Including
Consolidated Financial Projections” on page 4 of the Appendix.
 Please see our website for the schedule of information meeting for individual investors.

○Table of contents of the appendix

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

2.

(1)

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

Analysis Concerning Financial Condition ..................................................................................................................... 3(3)

Analysis Concerning Future Forecasts Including Consolidated Financial Projections .................................................. 4

Quarterly Consolidated Financial Statements and Important Notes ......................................................................................... 5(1)

Quarterly consolidated balance sheet ............................................................................................................................. 5(2)

Quarterly consolidated statements of income and comprehensive income .................................................................... 7(3)

Quarterly consolidated statement of cash flows ............................................................................................................. 9(4)

Notes to the quarterly consolidated financial statements .............................................................................................. 11(Notes to going concern assumptions) ..................................................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ..................................................................................... 11(Changes in accounting policies) ............................................................................................................................................. 11(Additional information) .........................................................................................................................................................12(Consolidated Statements of Income) ......................................................................................................................................12(Segment information, etc.) .....................................................................................................................................................13
3.

Other Information ....................................................................................................................................................................15
Significant Event Concerning the Going Concern Assumption ...................................................................................................15

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
Consumer spending fell sharply in the first half of the current fiscal year as the public was asked from time to time to stay homeas states of emergency were declared due to the pandemic. The outlook for the economy remained uncertain as a result. At the
Uchiyama Group, all business segments took actions that reflected the pandemic’s impact on business operations while making
measures to stop the spread of infections the highest priority. There were also measures to cut costs in order to improve
efficiency and stabilize sales and earnings.
First half sales were 11,456,205 thousand yen, down 2.0% from one year earlier. The operating loss decreased from 553,526
thousand yen to 272,271 thousand yen, the ordinary loss decreased from 363,525 thousand yen to 47,404 thousand yen, andthe loss attributable to owners of parent increased from 316,148 thousand yen to 514,383 thousand yen. The application of the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) beginning with the current fiscal
year reduced sales by 11,859 thousand yen and increased the operating and ordinary losses each by 295 thousand yen.
The results of each segment were as follows.
a. Nursing Care Business
During the first half, three fee-based nursing care facilities for seniors opened, resulting in 192 business sites at 113
locations at the end of September 2021.
This business has been using collaboration with academic institutions and governments for many years. Although we havebeen holding down activities involving these collaborations because of COVID-19, we will continue to conduct effective
activities as much as possible.
We are actively accepting new residents of nursing care facilities while using thorough communications with individuals
and their families, hospitals and other parties in order to ensure the safety of everyone who relocates to one of our facilities.
As a result, the occupancy rate remained stable. The average occupancy rate at existing facilities during the first half was
92.5% compared with 95.2% during the first half of the previous fiscal year.
To lower expenses, we hired more full-time employees, reduced the percentage of personnel from temporary staffing
companies and took other actions. Segment sales increased 2.6% to 10,208,033 thousand yen and segment income increased
8.3% to 801,306 thousand yen.
b. Karaoke Business
The business climate for karaoke business was extremely challenging because of government requests to stay home and to
reduce operating hours because of the pandemic. Karaoke stores are using rigorous measures to prevent COVID-19
infections in order to provide customers with a safe environment. Due to these challenges, segment sales fell 28.3% to1,047,870 thousand yen and there was a loss of 481,066 thousand yen compared with a loss of 621,986 thousand yen one
year earlier. This business will recognize subsidies and other government payments for cooperating with requests to suspendor reduce operations once the amount of these payments has been confirmed. Application of the new revenue recognition
standard reduced segment sales by 3,084 thousand yen and increased the segment loss by 295 thousand yen.
During the first half, the karaoke business closed three stores, resulting in 85 stores at the end of the first half.
c. Restaurant BusinessTwo restaurants were closed during the first half, resulting in 11 restaurants in Japan at the end of September 2021. As in
the karaoke business, the operating environment for restaurants business continues to be very difficult because of thepandemic. As a result, sales were down 48.7% to 79,570 thousand yen and the segment loss decreased from 127,400
thousand yen to 84,910 thousand yen. This business will recognize subsidies and other government payments forcooperating with requests to suspend or reduce operations once the amount of these payments has been confirmed.
d. Real Estate Business
The main activities of this business are brokerage services for buying and selling real estate and for rental properties. First
half sales were down 10.6% to 70,453 thousand yen and segment income increased 73.9% to 20,588 thousand yen.
Application of the new revenue recognition standard reduced segment sales by 8,775 thousand yen and had no effect on
segment income.
e. Other businesses
The business climate for the hotel business continues to be challenging because of the pandemic as in the karaoke andrestaurant businesses. Hotels are taking many actions for safety so that people can stay hotels with confidence. Segment
sales was 50,276 thousand yen, up 4.4% from one year earlier, and the segment loss decreased from 56,819 thousand yen
to 55,468 thousand yen.

2(2) Analysis Concerning Financial Condition
1) Status of assets, liabilities and net assets
Total assets at the end of the first half were 29,640,469 thousand yen, 109,697 thousand yen less than at the end of previous
fiscal year. Current assets decreased 531,138 thousand yen to 15,043,864 thousand yen. The major reasons for this change
are decreases in cash and deposits and other current assets and an increase in real estate for sale. Noncurrent assets increased
421,441 thousand yen to 14,596,604 thousand yen. The major reasons for this change are increases in buildings and structuresand land and a decrease in other property, plant and equipment.
Liabilities at the end of first half were 16,558,061 thousand yen, 482,362 thousand yen higher than at the end of previous
fiscal year. Current liabilities increased 809,862 thousand yen to 8,334,379 thousand yen mainly because of an increase in
short-term borrowings. Noncurrent liabilities decreased 327,499 thousand yen to 8,223,682 thousand yen mainly because of
decreases in bonds payable and long-term borrowings.
Net assets at the end of the first half decreased 592,059 thousand yen to 13,082,407 thousand yen. The major reason for thischange is a decrease in retained earnings as a result of the loss attributable to owners of parent and the payment of dividendsof surplus. Application of the new revenue recognition standard reduced retained earnings at the beginning of the fiscal yearby 12,303 thousand yen.

2) Situation of cash flows
Cash and cash equivalents at the end of first half were 10,092,548 thousand yen, down 416,814 thousand yen from the endof previous fiscal year.
(Cash flows from operating activities)
Net cash used in operating activities was 77,117 thousand yen compared with 493,429 thousand yen one year earlier. Major
uses of cash were the loss before income taxes of 312,303 thousand yen, a subsidy income deduction of 340,605 thousand
yen and payments related to temporary closures of 512,436 thousand yen. Major sources of cash were the deduction of542,460 thousand yen of loss on temporary closures and subsidy income of 340,605 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities was 710,936 thousand yen compared with 675,959 thousand yen one year earlier. Major
uses of cash were 698,248 thousand yen for purchase of property, plant and equipment and 210,000 thousand yen for thepurchase of investment securities. The major source of cash was proceeds of 202,000 thousand yen from sale of investment
securities.
(Cash flows from financing activities)
Net cash provided by financing activities was 371,221 thousand yen compared with 1,460,990 thousand yen one year earlier.
Major sources of cash were 848,200 thousand yen net increase in short-term borrowings and proceeds of 1,080,000 thousand
yen from long-term borrowings. The major use of cash was 1,378,320 thousand yen for the repayment of long-termborrowings.

3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
There is no forecast for consolidated results of operations for the fiscal year ending in March 2022 because it is impossibleat this time to determine the effects of the COVID-19 crisis. An announcement will be made promptly when it becomes
possible to determine a forecast.

4

2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly consolidated balance sheet(Thousands of yen)
FY ended March 31, 2021
(As of March 31, 2021)

1H of FY ending March 31, 2022
(As of September 30, 2021)

AssetsCurrent assets
Cash and deposits

10,869,891

10,461,254

Accounts receivable - trade
Merchandise

2,195,411
40,691

2,269,856
32,688

Real estate for sale
Supplies

1,041,185
330

1,257,022
277

Other
Allowance for doubtful accounts

1,427,500(6)

1,022,769(3)

Total current assets

15,575,003

15,043,864

5,726,289
2,605,881

6,144,607
2,880,445

Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

605,173

327,952

8,937,345

9,353,005

54,91648,197

Other
Allowance for doubtful accounts

5,212,764(29,863)

5,223,010(27,608)

Total investments and other assets

5,182,901

5,195,402

14,175,163

14,596,604

29,750,166

29,640,469

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

Total noncurrent assets
Total assets5

(Thousands of yen)
FY ended March 31, 2021
(As of March 31, 2021)

1H of FY ending March 31, 2022
(As of September 30, 2021)

Liabilities
Current liabilities
Accounts payable - trade529,977

452,931

Short-term borrowings
Current portion of bonds payable

2,032,800
60,0002,881,000
60,000Current portion of long-term borrowings
Income taxes payable

2,659,081
262,558

2,652,600
266,263

Contract liabilities
Provision for bonuses

294,874

131,529
273,667

Provision for point card certificates
Provision for shareholder benefit program

116,140
16,365-

Asset retirement obligations
Other

32,7081,520,011

3,444
1,612,942

Total current liabilities

7,524,517

8,334,379

Noncurrent liabilities
Bonds payable

120,000

90,000Long-term borrowings
Asset retirement obligations

7,279,808
298,573

6,987,968
295,517

Provision for share awards
Other

3,511
849,289

3,511
846,684

Total noncurrent liabilities

8,551,181

8,223,682

16,075,699

16,558,061

Shareholders’ equity
Share capital

2,222,935

2,222,935

Capital surplus
Retained earnings

2,664,695
9,983,960

2,664,695
9,360,257

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

Total shareholders’ equity

13,707,171

13,083,468

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(32,210)(492)(1,305)244

Total accumulated other comprehensive income(32,703)(1,060)Total net assets

13,674,467

13,082,407

Liabilities and net assets

29,750,166

29,640,469

Total liabilities
Net assets

Accumulated other comprehensive income6(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
For the first half
(Thousands of yen)
1H of FY ended Mar. 31, 2021
(Apr. 1, 2020 - Sep. 30, 2020)

1H of FY ending Mar. 31, 2022
(Apr. 1, 2021 - Sep. 30, 2021)

Net sales

11,695,405

11,456,205

Cost of sales

11,428,822

10,922,629

Gross profit

266,582

533,576

Provision for bonuses
Taxes and dues

8,824
271,372

6,834
266,268

Other

539,912532,744

Selling, general and administrative expenses

820,109805,847

Operating income (loss)

Total selling, general and administrative expenses(553,526)(272,271)

Non-operating income
Interest income

4,524

6,663

Dividend income
Commission income

23,99842,202

7,326
67,047

Insurance claim income
Subsidy income

44,42490,20278,70091,035

Other28,54753,204

Total non-operating income

233,898

303,979

29,29130,370

8,253
6,352

44,194
4,546

Non-operating expenses
Interest expenses
Loss on disaster
Other
Total non-operating expenses

43,897

79,112(363,525)(47,404)

Gain on sale of non-current assets
Gain on sale of investment securities

86,627-2,000

Gain on insurance claims
Subsidy income*1

39,35060,671

340,605

Total extraordinary income

186,649

342,605

Ordinary income (loss)
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

-

2,166

4,368
-

56,833
6,045

Loss on temporary closure*2

289,166

542,460

Total extraordinary losses

293,535

607,504

Income (loss) before income taxes(470,411)(312,303)

Income taxes-current
Income taxes-deferred

195,993(350,256)

210,424(8,344)

Total income taxes(154,263)

202,079

Net income (loss)(316,148)(514,383)

Net profit (loss) attributable to owners of parent(316,148)(514,383)

Impairment losses
Loss on sale of shares of subsidiaries and associates

7Quarterly consolidated statement of comprehensive income
For the first half
(Thousands of yen)
1H of FY ended Mar. 31, 2021
(Apr. 1, 2020 - Sep. 30, 2020)

1H of FY ending Mar. 31, 2022
(Apr. 1, 2021 - Sep. 30, 2021)(316,148)(514,383)

9,094

30,905457

737

Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

8

9,552

31,642(306,596)(482,740)(306,596)(482,740)--

(3) Quarterly consolidated statement of cash flows
1H of FY ended Mar. 31, 2021
(Apr. 1, 2020 - Sep. 30, 2020)(Thousands of yen)
1H of FY ending Mar. 31, 2022
(Apr. 1, 2021 - Sep. 30, 2021)

Income (loss) before income taxes(470,411)(312,303)

Depreciation

295,607283,822

4,368

56,833

Cash flows from operating activities

Impairment losses
Increase (decrease) in allowance for doubtful accounts(2,681)(2,257)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in contract liabilities
Increase (decrease) in provision for shareholder benefit
programIncrease (decrease) in provision for share awards

10,020(21,206)

5,787(116,140)-

119,225(15,810)(16,365)

1,008-

Loss (gain) on sale of non-current assets(86,627)-

Loss on retirement of non-current assets

-

2,166

Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Gain on insurance claims-(2,000)-

6,045(39,350)-

Subsidy income(60,671)(340,605)

Loss on temporary closure

289,166

542,460

Interest and dividend income(28,523)(13,990)

Interest expenses

29,29130,370Decrease (increase) in trade receivables(77,524)(74,444)4,430(207,766)

Increase (decrease) in accrued consumption taxes(75,593)247,204

Increase (decrease) in trade payables(87,270)(76,561)

Other, net

116,469(19,808)

Subtotal(188,313)

84,677

Decrease (increase) in inventories

Interest and dividends received

25,326

12,841

Interest paid

(28,561)(30,158)

60,671

340,605

Payment for temporary closure(265,889)(512,436)

Income taxes paid

(194,749)(234,531)

98,087

261,883(493,429)(77,117)

Subsidies received

Income taxes refund
Net cash provided by (used in) operating activities

91H of FY ended Mar. 31, 2021
(Apr. 1, 2020 - Sep. 30, 2020)(Thousands of yen)
1H of FY ending Mar. 31, 2022
(Apr. 1, 2021 - Sep. 30, 2021)(715,846)(698,248)-(1,900)220,617-

Cash flows from investing activities
Purchase of property, plant and equipment
Payments for retirement of property, plant andequipment
Proceeds from sale of property, plant and equipment(9,363)(907)(120,450)(210,000)-

202,000-(1,980)(6,000)(62,200)

Payments into time deposits(175,716)(132,240)

Proceeds from withdrawal of time deposits

130,232

130,239

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Loan advances(21,121)(29,711)

5,729

65,205(22,100)(3,148)Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation
Payments for asset retirement obligations

Proceeds from collection of loans receivable

26,96225,935Purchase of insurance funds(75,534)(57,562)

Proceeds from cancellation of insurance funds

86,63061,411Other, net

-

2,170

(675,959)(710,936)

Net increase (decrease) in short-term borrowings(369,600)

848,200

Proceeds from long-term borrowings

3,496,100

1,080,000

Repayments of long-term borrowings

Net cash provided by (used in) investing activities
Cash flows from financing activities(1,436,542)(1,378,320)

Redemption of bonds(30,000)(30,000)

Repayments of installment payables(101,992)(51,667)

Dividends paid

(96,975)(96,990)

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

1,460,990

371,221(1,911)

18289,690(416,814)

Cash and cash equivalents at beginning of period

10,371,661

10,509,363

Cash and cash equivalents at end of period

10,661,351

10,092,548

10

(4) Notes to the quarterly consolidated financial statements(Notes on going concern assumptions)
Nothing is applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Nothing is applicable.
(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition)
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020, referred to as “the revenue
recognition accounting standard” hereinafter) has been applied beginning with the first quarter of the fiscal year ending inMarch 2022. In accordance with this standard, the payment expected to be received in exchange for a product or service isrecognized as revenue when the control of the product or service is transferred to the customer.
In the Karaoke Business, members receive points based on the amount they spend and they can use their points at the rateof one point for one yen. In prior years, an allowance was maintained for expenses incurred in the future when members
use their points. Beginning with this fiscal year, points distributed to members are classified as a performance obligationand transaction prices are allocated based on the calculation of an independent sales price that takes into account expected
points that will not be used and other factors.
In the Real Estate Business, the entire amount of sales received from customers was recognized as revenue in prior years.
Beginning with this fiscal year, for transactions where Uchiyama acts as an agent for the provision of an asset or service toa customer, net revenue is recognized by deducting from gross revenue the amount that the customer pays to the providerof the asset or service received.
Application of the revenue recognition accounting standard is performed in accordance with the transitional measures
stipulated in the proviso to paragraph 84 of this standard. The cumulative effect of the retroactive application of this new
standard in prior fiscal years, assuming the new accounting policy had been applied prior to the beginning of the firstquarter of the current fiscal year, was added to or subtracted from retained earnings at beginning of the first quarter of thecurrent fiscal year in order to apply the new accounting method to retained earnings starting at that time. However, the new
accounting policy has not been applied retroactively to contracts in which almost all earnings are recognized in accordancewith the previous method, which was used before the beginning of the first quarter of the current fiscal year by using themethod stipulated in paragraph 86 of the revenue recognition accounting standard. Moreover, for contract revisions
performed prior to the first quarter of the current fiscal year, accounting procedures are conducted in accordance with thecontractual terms after all revisions and then the cumulative monetary effect is added to or subtracted from retained earnings
at beginning of the first quarter of the current fiscal year.
As a result, the application of the new accounting standard for revenue recognition reduced first half sales by 11,859
thousand yen, cost of sales by 11,564 thousand yen and gross profit by 295 thousand yen. At the same time, the newstandard increased the operating loss, ordinary loss and loss before income taxes by 295 thousand yen each. In addition,
the new standard reduced retained earnings at beginning of the current fiscal year by 12,303 thousand yen.
Due to the application of the revenue recognition accounting standard, the provision for point card certificates in current
liabilities in the consolidated balance sheet for the previous fiscal year is included in contract liabilities beginning with thefirst quarter of the current fiscal year. In accordance with the transitional measures stipulated in paragraph 89-2 of therevenue recognition accounting standard, financial statements for the previous fiscal year have not been restated based on
this new presentation method. Furthermore, in accordance with the transitional measures stipulated in paragraph 28-15 of
the Accounting Standard for Quarterly Financial Statements (ASBJ Statement No. 12, March 31, 2020), information about
revenue derived from contracts with clients involving the first half of the previous fiscal year is not shown separately.
(Application of the Accounting Standard for Fair Value Measurement)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019) has been applied beginningwith the first quarter of the fiscal year ending in March 2022. In accordance with the transitional measures stipulated inparagraph 19 of this standard and in paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement
No. 10, July 4, 2019), the new accounting policies stipulated by the fair value measurement standard have been applied
prospectively. This accounting standard and policy have no effect on the quarterly consolidated financial statements.

11(Additional information)(Accounting estimates concerning the effect of COVID-19 pandemic)
There are no significant changes in the information concerning important accounting estimates in the Securities Report forthe previous fiscal year with regard to assumptions about changes in the severity of the pandemic, the end of the pandemic
and other items concerning this crisis.
(Notes on Consolidated Statements of Income)*1 Subsidy income
First half of the previous fiscal year (April 1 to September 30, 2020)
Stores in the Uchiyama Group temporarily closed or reduced operating hours in response to requests from the Japanese
government and local governments due to the pandemic. Employment adjustment subsidies and other payments werereceived for payments made to employees who were furloughed due to the temporary closings and reduced operating
hours. These subsidies totaled 60,671 thousand yen and were classified as extraordinary income.
First half of the current fiscal year (April 1 to September 30, 2021)
Stores in the Uchiyama Group temporarily closed or reduced operating hours in response to requests from the Japanese
government and local governments due to the pandemic. Subsidies have been received for cooperating with thesepandemic safety measures. In addition, employment adjustment subsidies and other payments were received for payments
made to employees who were furloughed due to the temporary closings and reduced operating hours. These subsidies
totaled 340,605 thousand yen and were classified as extraordinary income.
*2 Loss on temporary closureFirst half of the previous fiscal year (April 1 to September 30, 2020)
In response to requests from the national and local governments due to the pandemic, Uchiyama stores were temporarilyclosed or reduced operating hours. Fixed expenses (personnel expenses, rents, depreciation expenses and other expenses)
incurred during the temporary closure were classified as loss on temporary closure in extraordinary loss of 289,166
thousand yen.
First half of the current fiscal year (April 1 to September 30, 2021)
In response to requests from the national and local governments due to the pandemic, Uchiyama stores were temporarilyclosed or reduced operating hours. Fixed expenses (personnel expenses, rents, depreciation expenses and other expenses)
incurred during the temporary closure were classified as loss on temporary closure in extraordinary loss of 542,460
thousand yen.

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(Segment information, etc.)[Segment information]
I. First half of the previous fiscal year (April 1 - September 30, 2020)
1. Information on sales and income or loss for each reporting segment(Thousands of yen)
Reporting segments

Consolidated

Other
businesses

Total

Adjustment statements ofamount*2

incomeNursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

9,952,186

1,461,142

155,10778,816

11,647,253

48,151

11,695,405-

11,695,405-

337

23,575600

24,512-

24,512(24,512)-

Total

9,952,186

1,461,479

178,682

79,416

11,671,766

48,151

11,719,918(24,512)

11,695,405

Segment income (loss)

740,152(621,986)(127,400)

11,841

2,607(56,819)(54,211)(499,315)(553,526)

Total(Note) *1

amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred amountamong the segments(Note) 1. The classification “other businesses” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income (loss) adjustments amount, -499,315 thousand yen, includes 251,170 thousand yen in eliminationof intersegment transactions and -750,485 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly general and administrative expenses that are not allocated toreporting segments.
3. Segment income (loss) is adjusted with operating income (loss) calculated in the consolidated statements of income.
2. Information on impairment loss of noncurrent assets, goodwill, etc. for each reporting segment(Significant impairment loss in noncurrent assets)
In the first half of the previous fiscal year, there was an impairment loss of 4,368 thousand yen in the Restaurant Business.

13II. First half of the current fiscal year (April 1 - September 30, 2021)
1. Information on sales and income or loss for each reporting segment(Thousands of yen)
Reporting segments

Consolidated

Other
businesses

Nursing Care

Karaoke

Restaurant

Real Estate

Total

Total

(Note) *1

Adjustment statements ofamount*2

incomeamount*3

Business

Business

Business

Business

10,208,033

1,047,870

79,57070,453

11,405,928

50,276

11,456,205-

11,456,205-

75

20,691600

21,366-

21,366(21,366)-

Total

10,208,033

1,047,945

100,261

71,053

11,427,294

50,276

11,477,571(21,366)

11,456,205

Segment income (loss)

801,306(481,066)(84,910)

20,588

255,917(55,468)

200,449(472,720)(272,271)

Sales
Sales to externalcustomers
Internal sales ortransferred amountamong the segments(Note) 1. The classification “other businesses” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income (loss) adjustments amount, -472,720 thousand yen, includes 250,062 thousand yen in eliminationof intersegment transactions and -722,783 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly general and administrative expenses that are not allocated toreporting segments.
3. Segment income (loss) is adjusted with operating income (loss) calculated in the consolidated statements of income.

2. Item concerning change in reportable segments
As was explained in the section concerning the changes in accounting policies, the Accounting Standard for Revenue
Recognition has been applied beginning with the first quarter of the fiscal year ending in March 2022. Due to the resulting
revision in the accounting method used for the recognition of revenue, the method for calculating segment income or loss haschanged in the same way.
Compared with the previous method, this change reduced sales by 3,084 thousand yen and increased the segment loss by 295
thousand yen in the Karaoke Business segment and reduced sales by 8,775 thousand yen in the Real Estate Business segment
but had no effect on segment income in this segment.
3. Information on impairment loss of noncurrent assets, goodwill, etc. for each reporting segment(Significant impairment loss in noncurrent assets)
In the first half of the current fiscal year, there were impairment losses of 38,643 thousand yen in the Karaoke Businesssegment and 18,189 thousand yen in Restaurant Business segment.

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3. Other Information
Significant Event Concerning the Going Concern Assumption
In response to states of emergency declared by the national and local governments, Uchiyama Group stores were temporarilyclosed or reduced operating hours and there were other effects of the pandemic. As in the previous fiscal year, sales in the firsthalf decreased remarkably and there were an operating loss, ordinary loss and loss attributable to owners of parent. Consequently,
an event has occurred or a situation exists that creates significant doubts about the going concern assumption.
In business operations, there are numerous cost-cutting measures, including the closing of some stores and reducing all categories
of fixed expenses. In addition, as consumers and companies are expected to remain cautious about expenditures and investments
during the pandemic and for a while after the pandemic ends, we are working to create new formats for business activities,business models and products that reflect new life styles.
There are no significant concerns about liquidity because we have sufficient funds for the time being due to cash and deposits of
10,461,254 thousand yen at the end of the first half and an overdraft facility with 8,619,000 thousand yen of available credit.
For these reasons, we believe there is no significant uncertainty about the going concern assumption.
Forward-looking statements are based on the judgments of the Uchiyama Group as of the end of the first half of the current fiscalyear.

15