DAIICHIKOSHO

CO.,

LTD.

FY2014, the year ending March 31, 2015

Flash Report on the Consolidated Results for the Interim Period Ended
September 30, 2014 [JGAAP]
November 7, 2014

Company Name:
DAIICHIKOSHO CO., LTD.
Stock Exchange Listing: Tokyo (JASDAQ)
Code Number:
7458
URL:
http://www.dkkaraoke.co.jp
Representative:
Saburo Hayashi, President
Contact:
Shigeki Kobayashi,
Corporate Officer; and General Manager, Accounting Department
Phone:+81-3-3280-2151
Scheduled Date to Submit the Quarterly Securities Report: November 14, 2014
Start Date for Dividend Payment: December 5, 2014
Availability of Supplementary Briefing Material on Quarterly Financial Results: Available
Schedule of Quarterly Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Interim Period Ended September 30, 2014 (From April 1, 2014,
to September 30, 2014)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Interim Period ended
September 30, 2014
Interim Period ended
September 30, 2013

Operating income

65,046%0.2

9,688%(4.0)

Millions of yen

10,791%(0.6)

64,924

3.5

10,0896.6

10,8597.1

Net income
Millions of yen

Interim Period ended
September 30, 2014
Interim Period ended
September 30, 2013

Ordinary income

Millions of yen

Net income per share

6,491%
5.3

Yen
111.756,167

4.3

103.27―(Note) Comprehensive income:Interim Period ended September 30, 2014: 6,251 million yen
9.5 %Interim Period ended September 30, 2013: 5,706 million yen (10.3) %(2) Consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

As of September 30, 2014
173,013106,321As of March 31, 2014
161,587
102,268(Reference) Shareholders’ equity:
As of September 30, 2014: 105,142 million yen
As of March 31, 2014: 101,114 million yen

1

Fully diluted net income
per shareYen―Equity ratio%
60.8
62.6

DAIICHIKOSHO

2.

CO.,

LTD.

Dividend
First Quarter

Second Quarter
Yen
30.00
50.00

Annual dividend
Third Quarter

Year ended March 31, 2014——Year ending March 31,―2015
Year ending March 31,―2015 (forecast)(Note) Changes in dividends forecast from most recently announced figures: None

Year-endYen
35.00

Annual35.00

Yen
65.00

85.00

3. Forecast Consolidated Performance for FY2014, the Year Ending March 31, 2015
(From April 1, 2014, to March 31, 2015)
Net sales
Millions of yen

Year ending March 31,
2015 (full year)

134,000(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
Millionsofyen
Millionsof yen%%%2.6

19,500Net income
Millions of yen

1.9

21,3000.3

Net income per share
Yen%

Year ending March 31,12,200(6.8)
210.262015 (full year)(Note) Changes in forecast of consolidated operating results from most recently announced figures: None*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting
from changes in scope of consolidation): None
(2) Adoption of special accounting policies for quarterly financial statements: None
(3) Changes in accounting standard, accounting estimation change and error correction
1) Changes due to changes in accounting standard: Yes
2) Changes due to changes in accounting standard except (3) 1): None
3) Changes due to accounting estimation change: None
4) Error correction: None
1) Number of shares issued
As of
58,025,000 As of
58,225,000(including treasury stock)
September 30, 2014
shares March 31, 2014
shares2) Number of shares of
As of
2,766 As of
2,714
treasury stock
September 30, 2014
shares March 31, 2014
shares3) Average number of sharesInterim Period ended
58,093,822 Interim Period ended
59,722,286
during the period
September 30, 2014
shares September30, 2013
shares* Presentation regarding the implementation status of the quarterly review:
This flash report on the consolidated results for the Three months is not covered by the quarterly review procedure
stipulated in the Financial Instruments and Exchange Act. At the time of the publication of this report, the quarterly
review procedure for quarterly consolidated financial statements is being implemented.
* Explanation for the appropriate use of performance forecasts and other special notes:
The statements regarding forecast of financial results in this report are based on the information that is available, as
well as estimates, assumptions and projections that are believed to be reasonable at the time of publication.
Therefore, there might be cases in which actual results greatly differ from forecast values.

2

DAIICHIKOSHO

CO.,

LTD.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)

FY2013(As of March 31, 2014)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

Current Interim Period(As of September 30,2014)

44,223
6,403
7,000
6,233
(131)
63,72952,367
5,899
6,592
7,469
(138)
72,1898,289
15,70526,095
5,588
55,6799,526
16,302
26,158
6,786
58,774

1,675
6,016
7,691

1,455
6,065
7,521

14,621
13,752
6,234(121)
34,48697,857
161,587

14,033
14,1346,464(104)
34,528100,823
173,013DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2013(As of March 31, 2014)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Provision for directors' retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

4

Current Interim Period(As of September 30,2014)

4,492
4,501
5,375
1,103
11,174
26,647

4,053
4,164
4,590
1,494
10,00024,303

10,00013,367
2,296
5,075
1,932
32,67059,31810,00023,433
2,306
4,587
2,061
42,38866,692

12,3504,001
84,926(7)
101,270

12,3504,001
89,225(8)
105,568

1,172
(777)
51(602)(156)
1,153
102,268
161,587810(777)
93(552)(426)
1,178
106,321173,013DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of yen)Interim Period ended
September 30, 2013
(From April 1, 2013, toSeptember 30, 2013)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Cooperative monetary aid receivedOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

5Interim Period ended
September 30, 2014(From April 1, 2014, toSeptember 30, 2014)

64,92437,522
27,402
17,312
10,08965,04638,53526,511
16,823
9,688

386
231
585
1,203

526
242
544
1,312

147
173
112
433
10,859138－
71
209
10,791

3－
3

14
173
187

135
66
202
10,6604,765(325)
4,440
6,220
52
6,167

159
0
159
10,819
4,685
(387)
4,298
6,521
29
6,491

DAIICHIKOSHO

CO.,

LTD.

(Quarterly Consolidated Statements of Comprehensive Income)(Millions of yen)Interim Period ended
September 30, 2013
(From April 1, 2013, toSeptember 30, 2013)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparent
Comprehensive income attributable to minority interests

6Interim Period ended
September 30, 2014
(From April 1, 2014, toSeptember 30, 2014)

6,220

6,521

(611)
98－(513)
5,706(361)4149(269)
6,251

5,654

6,221

5229DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Previous interim period(From April 1, 2013, toSeptember 30, 2013)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividends income
Interest expenses
Loss(gain) on sales of investment securities
Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Transfer of cost of sales on karaoke equipment for rental
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Increase in time and saving deposits
Proceeds from decrease in time and saving deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of video licenses
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

7

Current interim period(From April 1, 2014, toSeptember 30, 2014)

10,660
6,293
444
63

10,8196,554
390
10(473)
147－
105
132

(617)
138
(173)
(41)
144

1,867

503

(96)
210
273
(1,907)(775)
16,945491(146)(4,544)
12,746413
135(446)(16)(1,430)16,386610(135)(5,418)
11,442(39)
148(6,214)7(1,689)(1,000)－0(354)
343
(553)
247
(4)
(9,109)(140)
198(7,693)20(2,052)(985)(5,044)
5,224
(175)
345
(665)
219
(54)
(10,804)

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)Previous interim period(From April 1, 2012, toSeptember 30, 2012)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Purchase of treasury stock
Other, net
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

875
1,260
(1,726)(2,090)－(20)(2,503)(24)
1,108
41,96343,071

Current interim period(From April 1, 2014, toSeptember 30, 2014)
207
11,430(1,907)(2,037)
(603)
(18)
7,071
66
7,775
44,381
52,156DAIICHIKOSHO

CO.,

LTD.

(4) Segment Information
Interim Period ended September 30, 2013 (From April 1, 2013, to September 30, 2013)
Reportable segments(Millions of yen)
Postedamount to the
Adjusted
consolidated
amountquarterly(Note)
statements ofincome

Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal

Other

Total

Sales

33,73622,782

4,772

61,291

3,632

64,924－64,924

Segment income(Operating income)

7,327

3,103

403

10,834691

11,526(1,436)

10,089(Note) The (1,436) million yen adjustment posted to Segment income is primarily composed of General and
Administrative Expenses incurred from the administrative department at the head office that are not attributable toany particular segment.

Interim Period ended September 30, 2014 (From April 1, 2014, to September 30, 2014)
Reportable segments

Sales
Segment income(Operating income)(Millions of yen)
Postedamount to theAdjusted
consolidated
amountquarterly(Note)statements ofincome

Commercial
karaokeKaraokecabin and
restaurant

Musicsoftware

Subtotal

OtherTotal

32,05625,2784,484

61,8193,227

65,046－65,046

7,244

3,229

33

10,507568

11,075(1,387)

9,688(Note) The (1,387) million yen adjustment posted to Segment income is primarily composed of General andAdministrative Expenses incurred from the administrative department at the head office that are not attributable toany particular segment.

(5) Issues Related to Summary Information (Notes)
Changes to Accounting Policies, Changes to Accounting Estimates, and Revision Restatements(Changes to Accounting Policies)
Following the adoption, from the period under review, of provisions specified in the main clause of Paragraph 35 of“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement No.26, May 17,
2012, hereinafter referred to as “Retirement Benefits Accounting Standard”) and the main clause of Paragraph 67 of“Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012 hereinafter referred toas “Retirement Benefits Guidance”) , methods for calculating retirement benefit obligations and service cost have beenreviewed, and methods for attributing expected retirement benefits payment have been changed from straight-line basis tobenefit formula basis, while discount rate based on the average remaining service period has been replaced by single
weighted average discount rate.
In adopting the Retirement benefits Accounting Standard etc., the effected amount associated with the aforementioned
change in the methods for calculating retirement benefit obligation and service cost has been adjusted to retained earnings
at the beginning of the period under review, according to the transitional handing prescribed in Paragraph 37 of theRetirement Benefits Accounting Standard.
As a result, Liabilities for retirement benefits at the beginning of the period under review decreased by 693 million yen,while retained earnings increased by 447 million yen, which, however, had minimal impact on operating income, ordinary
income, and income before income taxes and minority interest for the three months ended June 30,2014.
The effect those have on our profits and losses in consolidated cumulative this period is negligible.

9