Outline of Accounts Settlement Ended March 2010

ROUND ONE Corporation
C.E.O and President Masahiko Sugino
Tokyo Stock Exchange First Section,
Code Number: 4680

May 14. 2010

Summary of Consolidated Operating Results
Code Number: 4680
Unit

08.4-09.3

09.4-10.3

Act

Act

Differshops
Revenue & Expenditures

Total shops

Shops

94

105

+11

No of months total shops
operation

Month

1,012

1,201

+189

Bowling revenue

¥bn

28.3

30.7

+2.4

Amusement revenue

¥bn

32.2

33.4

+1.1

Karaoke revenue

¥bn

5.6

6.0

+0.3

Spo-cha revenue

¥bn

9.2

8.9

(3.0)

Other revenue

¥bn

2.4

2.9

+0.4

Total sales

¥bn

77.9

82.1

+4.1

Operating profit

¥bn

13.6

12.0

(1.5)

Ordinary profit

¥bn

9.7

7.8

(1.9)

Ordinary income margin

％

12.6%

9.6%

(3.0)%Net income

¥bn

3.9

3.3

(0.5)

# Figures less than indicated measurement unit are ignored.

-1-Consolidated plan for year ending March 2011
(1) New shops and P/L

Code Number: 4680

# Figures less than indicated measurement unit are ignored.

Unit

Term 2010.3

Term 2011.3

Previous term (ACT)Current term (PLAN)

Differshops
Revenue & Expenditures

New shops opened

Shop

11

※2

(9)

No. of total shops

Shop

105

107

+2

No. of months total shops operating

Month

1,201

1,268

+67

Bowling¥billion

30.7

32.8

+2.0

Amusement¥billion

33.4

35.4

+2.0

Karaoke¥billion

6.0

6.1

+0.0

Spo-cha¥billion

8.9

8.8

(0.1)

Others¥billion

2.9

2.9

(0.0)

Total sales¥billion

82.1

86.0

+3.8

Operating income¥billion

12.0

14.0

+1.9

Ordinary income¥billion

7.8

9.0

+1.1

Ordinary income margin¥billion

9.6%

10.5%

+0.9%

Net income¥billion

3.3

2.5

(0.8)

Note: The company posts extraordinary losses under the plan for the year ending March 31, 2011 as follows:
3.1 billion yen ・・・ Asset retirement obligation expenses for previous fiscal years (due to the introduction of “Accounting Standards for Asset Retirement
Obligations [ASBJ Statement No. 18],” which is applied to fiscal years beginning on or after April 1, 2010)
1.0 billion yen ・・・ Impairment loss on shops (Although this matter has not yet been decided, the amount is calculated based on the results for the previous fiscal
year.)
0.4 billion yen ・・・ Disposal loss on kits (substrates) for amusement machines (This is posted every fiscal year. The amount iscalculated based on the results for the previous fiscal year.)※ Matsuyama Shop and Puente Hills Mall Shop (California, US) are planned to open in year ending March 2011.
Puente Hills Mall Shop is not included in the P/L plan because its profit and loss are expected to balance for the first fiscal year.

-2-Consolidated plan for year ending March 2011
(2) Cash flow

Unit

Code Number: 4680
Term 2010.3

Term 2011.3

Previous term (ACT)Current term (Plan)

cash

Net income¥billion

3.3

2.5

Dividend¥billion

1.2

1.7

Depreciation¥billion

9.4

10.6

Simplified cash flow

¥billion

14.1

14.8

Investment on alleys¥billion

35.7

※ 8.0

Simplified free cash flow

¥billion(21.5)

6.8

Cash reserve¥billion

30.8

44.3

Interest-bearing liabilities¥billion

138.8

159.8

Net interest-bearing liabilities¥billion

108.0

115.5

# Figures less than indicated measurement unit are ignored.
※ Breakdown of capital investment estimation for year ending March 2011
・Approx. 1.7 billion yen ・・・ Saitama-Konosu Shop (opened in March 2010, but investment occurred in April 2010)
・Approx. 1.1 billion yen ・・・ New shop (Matsuyama Shop) planned for year ending March 2011
・Approx. 0.7 billion yen ・・・ Puente Hills Mall Shop (California, U.S.A.)・Approx. 4.5 billion yen ・・・ Existing shops (Substrates [kits] for amusement machines and others)-3-Number of shops, P/L status, and trend in sales for existing
shops compared to previous year (consolidated)◆Number of shops, P/L
term 2006.3

New shops
openedExisting shops
closedterm 2007.3

term 2008.3

term 2009.3

Code Number: 4680

term 2010.3

term 2011.3 (Plan)

11

15

11

13

11

2

0

0

1

2

0

0

58

73

83

94

105

107

Sales

¥50.2bn¥65.8bn¥77.9bn¥77.9bn¥82.1bn¥86.0bn

Operating income¥12.7bn¥17.9bn¥18.2bn¥13.6bn¥12.0bn¥14.0bn

Ordinary income¥13.4bn¥16.3bn¥15.9bn¥9.7bn¥7.8bn¥9.0bnOrdinary income
margin

26.7%

24.9%

20.5%

12.6%

9.6%

10.5%

¥11.9bn¥9.7bn¥9.1bn¥3.9bn¥3.3bn¥2.5bnNo. of total shops

Net income

Note: Figures for the year ending March 2006 are non-consolidated because consolidated financial statements were not prepared at the time.
(For the year ending March 2007 and thereafter, all figures are consolidated.)◆Sales for existing shops compared to previous year
term 2006.3

Bowling
Amusement
KaraokeSpo-chaOthersTotal sales+19.4%+11.5%(4.5)%(11.3)%+11.6%

term 2007.3

+7.1%
+0.1%
+4.0%
(9.2)%+2.0%

term 2008.3+1.4%(6.8)%(1.2)%(16.1)%+13.2%(4.0)%-4-term 2009.3(6.5)%(10.8)%(7.3)%(9.8)%+11.4%(8.5)%

term 2010.3(4.0)%(9.8)%(13.1)%(9.2)%(3.9)%(7.7)%

term 2011.3 (Plan)

+1.7%
+0.8%
(5.1)%(4.6)%(3.7)%±0.0%

Loan refinancing and trend in assets, etc. (consolidated)
Code Number: 4680

◆Loan refinancing
Term 2009.3(ACT)

Term 2010.3(ACT)

Term 2011.3(Plan)

Term 2012.3(Plan)

Term 2013.3(Plan)

Amount of loan
refinancing during FY

About ¥11.0bn

About ¥12.8bn

About ¥17.7bn

About ¥29.2bn

About 10.5bn

Details

All outstandingloans refinanced

All outstandingloans refinanced

Under negotiation,
mainly with existing
lenders

Negotiation
scheduled, mainlywith existing lenders

Negotiation
scheduled, mainlywith existing lenders

Note: The amounts of loan refinancing described above are calculated on an entire-group basis (i.e., loans to consolidated subsidiaries are included).

◆Assets
Term 2007.3(ACT)

Term 2008.3(ACT)

Term 2009.3(ACT)

Term 2010.3(ACT)

Term 2013.3(Plan)¥166.3bn¥61.8bn
37.2%¥28.8bn¥176.3bn¥69.6bn
39.5%¥22.9bn¥216.0bn¥72.3bn
33.5%¥21.5bn¥251.2bn¥85.6bn
34.1%¥30.8bn¥287.2bn¥97.3bn
33.9%¥44.3bn¥93.9bn¥98.5bn¥117.9bn¥138.8bn¥159.8bn¥65.1bn¥75.5bn¥96.3bn¥108.0bn¥115.5bn

Lease obligation¥25.8bn¥26.8bn¥27.1bn¥24.4bn¥23.1bn

Guarantee debts¥3.1bn¥40.9bn¥41.9bn¥31.8bn¥9.3bnTotal assets
Net assets
Net assets ratio
Cash reserve
Interest-bearing
liabilities
Net interest-bearing
liabilities

Note: Guaranteed debts ・・・Loans made by consolidated subsidiaries during development periods for which ROUND ONE Corporation
assumes joint and several liability. These loans will be repaid after shop openings, etc. and, therefore,guaranteed debts will be eliminated. However, such loans are classified as interest-bearing debt because they
are switched to long-term loans.

-5-Measures taken for existing shops (1)Code Number: 4680
Bowling◆Network bowling match
・Number of cardholders: 2 million (approx.)(The number is increasing by 70 to 80 thousand per month)・An upgraded version with improved features is in the pipeline.
◆My Ball campaign
・My Ball for kids, improved ball cases◆Variety of bowling competitions◆Birthday bowling, bowling workshops, etc.

-6-

Measures taken for existing shops (2)Code Number: 4680
Amusement◆Aggressive introduction of new types of amusement machines
・Fortune Trinity (KONAMI)⇒ Large medal game machine that is extremely popular
・・・Introduced in all shops
・Super Million Jackpot⇒Event in which players can win up to 99,999 medals dispensed
by a machine that is connected online with the same type ofmachines installed at 100 ROUND ONE shops.
Held randomly a few times each day.
◆Medal King・Features a ranking system based on the number of medals that are
deposited, won daily, or won during a certain period.
Players can also enjoy nurturing avatars or holding titles.
The ranking is announced via PC or cell phone.
◆Medal Point
・A system whereby players can climb the ladder of member names
according to number of visits.
Member ⇒ Silver ⇒ Gold ⇒ Platinum
Players with higher rankings can buy medals at the lower unit price.
・Accumulated points can be redeemed for various coupons:
Playing a bowling game for free/Enjoying a karaoke session with notime restriction until 8.00 p.m.
Enjoying various activities at Spo-cha for three hours, free of charge/Playing a 100 yen game of their choice at Amusement, free of charge, etc.

-7-

Measures taken for existing shops (3)Code Number: 4680
Karaoke, Spo-cha【Karaoke】◆Aggressive introduction of the latest types of karaoke systems
・JOYSOUND CROSSO (XING Inc.)
・New systems to be released by other suppliers will also be
introduced.
◆Redecoration of karaoke rooms
・Before the summer vacation season, 70 to 80 percent of the
karaoke rooms will be redecorated to make them brighterin order to attract a wider range of age groups.
・Making smoke-free rooms available◆Other・Improvement of drink bars
・Higher sound quality (by setting central woofers)【Spo-cha】◆A wider variety of “free play” game machines
・Sequential relocation of such game machines from theAmusement area
◆Other・Roller-skating workshops
・Floor renovation, etc.

-8-

Measures taken for existing shops (4)Code Number: 4680

Sales promotion / Advertising【Sales promotion】◆Offering a cell phone strap featuring a popular character as a
giveaway for anyone who visits us (for bowling, karaoke, or
Spo-cha activities) in a party of four or more
◆Offering such items as prizes for Moon Light Strike Game
◆Email membership system: “Raupoke”
・By registering for this service, members qualify to receive
various coupons and other giveaways.
・Members enjoy many other special benefits.
⇒Number of actual registrants: Approx. 800 thousand as ofthe end of April 2010
(The number is increasing by 50 thousand per month)【Advertising】◆Setting the annual advertising budget at 2.2 percent of overall sales.
◆Shifting to TV commercials
・Instead of newspaper inserts and billboards along streets◆Selecting specific time slots for TV advertising so that it will reachour target groups effectively.
・Concentrating TV commercials during weekday prime timeand Sunday lunchtime(Fifteen or so 30-second ads a week)-9-

Standard facilities and P/L by shop type
Code Number: 4680
（Unit ：¥mn）
Standard【Automatic reduction of lease payment】

Stadium

Approx. 3,000 ㎡

Approx. 6,000 ㎡

36 lanes

38 lanes

208 machines

263 machines

Karaoke business

18 rooms

24 rooms

Spo-cha businessNo floor

2 floors

Ground area
Bowling business
Amusement business

Other businessBilliards, Darts, Batting
Cage, etc.

Food & drink tenants, etc.

Bowling

320

300

Amusement

290

380

Karaoke60

65

Spo-cha

-

200

40

25

Total sales

710

970

Lease payment (facilities and equipment)

170

200

Rent

120

180

Personnel expenses

130

170

50

65

Other

160

285

Total cost

630

900

80

70

Others ( billiard, Darts)

Depreciation (Interior decoration, etc.
Depreciation of lease assets is notincluded.)

Ordinary income

11.3%

7.2%

Net income (58% of ordinary income)48

42

Cash flow (Net income plus depreciation)

98

107

Initial investment

1,200

2,500

ROIC (Cash flow divided by capital
investment)

8.2%

4.3%

Ordinary income ratio-10-

The company leases bowling lanes,
amusement machines, karaoke systems, etc.
The lease terms are about three years(that for bowling lanes alone is seven years).
After the original leases expire, lease payment
for extended terms is reduced to about one-twelfth.
Even taking into consideration additional leases
for the introduction of new types of machines orfor other purposes during the original lease terms,
lease payments for the fourth year and thereafter
are substantially reduced as described below.
As a result, profit increases.
<Lease payment>●Standard 170 million yen ⇒ 90 million yen●Stadium 200 million yen ⇒ 100 million yen<Ordinary income>●Standard 80 million yen ⇒ 160 million yen●Stadium 70 million yen ⇒ 170 million yen

After three years out from the opening ofa shop, profit increases automatically.

New shops in the pipeline
Code Number: 4680

◆Planned new shops for the year ending March 2011
Opening date

Shop nameShop type

Slated to open in mid-July

Matsuyama Shop

Standard/Roadside

Slated to open in mid- to lateAugustPuente Hills Mall Shop
(California, U.S.A.)

Standard/Roadside※Puente Hills Mall Shop, about 45 kilometers east of the L.A. downtown area, is located in a
shopping mall that faces Route 60, one of the main highways in the U.S.A.
◆Planned new shops for the year ending March 2012 and thereafter
Planned location【Financing for shop openings in downtown areas】

Shop typeNamba (Sennichimae)

Standard/Downtown

IkebukuroStandard/Downtown

Umeda

Standard/Downtown①Bank loans using land/buildings of the shop as collateral②Corporate bond issuance③Other financing methods including equity finance※The order of priority should be ①⇒②⇒③.
Note: If the planned opening is cancelled, there may be
a capital loss or penalty payment.

Notes: ・Opening dates and shop names may be subject to change for various reasons.
・New shop openings planned for the year ending March 2012 and thereafter may be cancelled without prior notice.
・In order to put the company on a firm financial footing, openings of new shops other than those described above will be suspended,in principle. However, if a developer bears most of the initial investment costs including those for interior decoration, a new shop may
open, provided that it is located in a large-scale metropolitan area shopping mall.

-11-

Term 2011.3 Sales plan
Code Number: 4680

◆All units# Figures less than indicated measurement unit are ignored.
1Q

2Q

Bowling¥7.76bn¥8.31bn

Amusement¥8.50bn

Karaoke

1Q-2Q

3Q

4Q

3Q-4Q

Term

¥16.08bn¥7.33bn¥9.38bn¥16.72bn¥32.80bn¥9.14bn¥17.65bn¥8.76bn¥8.98bn¥17.75bn¥35.40bn¥1.48bn¥1.55bn¥3.04bn¥1.46bn¥1.59bn¥3.06bn¥6.10bn

Spo-cha¥2.18bn¥2.45bn¥4.64bn¥1.71bn¥2.44bn¥4.16bn¥8.80bn

Others¥0.72bn¥0.76bn¥1.49bn¥0.66bn¥0.74bn¥1.41bn¥2.90bn

Total sales¥20.66bn¥22.23bn¥42.90bn¥19.93bn¥23.16bn¥43.10bn¥86.00bn

3Q

4Q

3Q-4Q

◆Existing units ( VS previous year)
1Q

2Q

1Q-2Q

Term

Bowling(0.4)%+0.2%(0.1)%

+3.7%

+3.2%

+3.4%

+1.7%

Amusement(1.8)%(1.8)%(1.8)%

+3.4%

+3.3%

+3.3%

+0.8%

Karaoke(8.6)%(7.8)%(8.2)%(2.6)%(1.5)%(2.0)%(5.1)%

Spo-cha(7.2)%(7.1)%(7.2)%(2.3)%(1.3)%(1.7)%(4.6)%

Others(8.1)%(3.9)%(6.0)%(2.1)%(0.3)%(1.2)%(3.7)%

Total sales(2.7)%(2.2)%(2.4)%

+2.3%

+2.3%

+2.3%

±0.0%

-12-

Statistical snapshot of shops (as of end of April 2010)
Code Number: 4680

◆ Trend in number of shops
No. ofshop
openings

Breakdown of total number of shops at end of term

Total No. ofshops atthe end of
the term

No. ofshop
closings

Standard
Downtown

Stadium

Roadside

Downtown

Roadside- Year ending March 2004

45

4

41

7

34

-

-

Year ending March 2005

6

0

47

8

34

-

5

Year ending March 2006

11

0

58

8

34

-

16

Year ending March 2007

15

0

73

8

34

-

31

Year ending March 2008

11

※ 1

83

8

34

-

41

13

2

94

7

45

-

42

11

0

105

7

55

-

43

※

Year ending March 2009
Year ending March 2010

※Fuji Shop closed in the year ending March 2008, and reopened at the same location in the next fiscal year after undergoing complete reconstruction.

◆ Number of shops by geographical area
Area
No. of shops
Share

Hokkaido/
TohokuHokuriku/
Koshinetsu

Chubu/
Tokai

Kanto

Kansai

Chugoku/
Shikoku

Kyushu/Okinawa

Total

10

4

31

13

29

7

11

105

9.5%

3.8%

29.5%

12.4%

27.6%

6.7%

10.5%

100.0%-13-

Notices and contact for inquiries regarding IR
Code Number: 4680
Notes regarding this material
This material is not provided for the purpose of soliciting investors. No responsibility is accepted by the company or its information
providers for any loss or damage that may occur as a result of use of this material. Information contained in this material is current as of the dateof preparation. While utmost care has been taken in the preparation of this material, no warranty is given as to the realization of its
contents. Should it contain any errors, no responsibility is accepted by the company or its information providers. (If incorrect figures orother misinformation should come to our attention, we will announce the corrections through our website.)
ROUND ONE Corporation reserves all rights to all content in this material, and it cannot be reproduced, transmitted, etc. for any
purpose without the permission of the company.

IR policies (Silent period)
In order to ensure fairness to investors, the company will, in principle, withhold answers to any questions regarding IR for about two
weeks before the announcement of financial results (including quarterly results).
Even during this period, however, the company will respond to inquiries and questions regarding fundamental facts about its operations,information that has already been disclosed, and ongoing events or projects.
Thank you for your cooperation and understanding.

Website addresses◎【Website for PC】
Searchround 1
http://www.round1.co.jp or◎【Website for cell phone】(For customers/IR information, etc. are not available)・docomohttp://www.round1.co.jp/mobile/

・Soft Bank http://www.round1.co.jp/mobile/・au※

http://www.round1.co.jp/mobile/

Please note that you are responsible for connection fees and communication fees (packet fees) when accessing
our website for cell phone, and that you may not be able to access it with some types of cell phone.

For inquiries, please contact Administrative Division of ROUND ONE Corporation. Tel: +72-224-5115(Japanese only)-14-