DAIICHIKOSHO

CO.,

LTD.

Translation
This report is a translation of excerpts from original Japanese Flash Report and for reference purpose only. In case of discrepancy between this reportand original Japanese Flash Report, the latter shall prevail.

FY2018, the year ending March 31, 2019

Flash Report on the Consolidated Results for the First Quarter Ended June 30,2018 [JGAAP]
August 20, 2018

Company Name:
Stock Exchange Listing:Code Number:
URL:
Representative:
Contact:

DAIICHIKOSHO CO., LTD.
Tokyo Stock Exchange7458
http://www.dkkaraoke.co.jp
Tadahiro Hoshi, President
Yasuhisa Nishihara,
Corporate Officer and General Manager, Accounting Department
Phone:+81-3-3280-2151
Scheduled Date to Submit the Quarterly Securities Report: August 10, 2018
Start Date for Dividend Payment: ―Availability of Supplementary Briefing Material on Quarterly Financial Results: None
Schedule of Quarterly Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Three Months Ended June 30, 2018 (From April 1, 2018, to June30, 2018)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Three months ended
June 30, 2018
Three months ended
June 30, 2017

Operating income
Ordinary income% Millions of yen% Millions of yen%

34,839

2.6

5,349

(3.7)

5,817

(0.0)

33,948

1.0

5,553

26.3

5,820

24.4

Net income attributable toowners of parent
Millions of yen%
Three months ended
3,808
June 30, 2018
Three months ended
3,758
June 30, 2017
(Note) Comprehensive income:Three months ended June 30, 2018:
Three months ended June 30, 2017:

Basic earnings per share
Yen

1.3

66.86

66.79

507.2

65.78

65.72

3,886 million yen 2.7 %
3,785 million yen 28.4 %(2) Consolidated financial position
Total assets
Millions of yen

Fully diluted net income
per shareYenNet assets
Millions of yen

As of June 30, 2018
178,219
126,060
As of March 31, 2018180,190
125,356(Reference) Shareholders’ equity:
As of June 30, 2018:
124,468 million yen
As of March 31, 2018:
123,792 million yen

1Equity ratio
%
69.8
68.7

DAIICHIKOSHO

CO.,

LTD.

2. Dividend
First Quarter
Yen―

Second Quarter
Yen
55.00

Annual dividend
Third Quarter
Yen―

Year ended March 31, 2018Year ending March 31,―
2019Year ending March 31,56.00―
2019 (forecast)(Note) Changes in dividends forecast from most recently announced figures: None

Year-endYen
56.00

AnnualYen
111.0056.00

112.003. Forecast Consolidated Performance for FY2018, the Year Ending March 31, 2019 (From April 1,2018, to March 31, 2019)(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
Millions of yen
Millions of yen
Millions of yen%%%
Net sales

Six months ending
September 30, 2018Year ending March 31,
2019 (full year)

70,4002.010,000(7.2)

10,300(10.2)

142,500

0.8

21,2000.5

22,0000.7

Net income attributable toowners of parent
Millions of yen%

Basic earnings per share

Yen
Six months ending
6,500(11.9)
114.10
September 30, 2018Year ending March 31,
2.9
236.9813,5002019 (full year)(Note) Changes in forecast of consolidated operating results from most recently announced figures: None2

DAIICHIKOSHO

CO.,

LTD.

*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting inchanges 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: None
2) Changes due to changes in accounting standard except (3) 1): None
3) Changes due to accounting estimation change: None
4) Error correction: None
(4) Number of common shares issued
1) Number of shares issued
As of57,234,200 As of57,234,200(including treasury shares)June 30, 2018
shares March 31, 2018shares
2) Number of shares of treasury
As of266,262 As of266,228
sharesshares March 31, 2018
sharesJune 30, 2018
3) Average number of shares
Three months ended 56,967,953 Three months ended 57,131,596
during the period
June 30, 2018
shares June 30, 2017
shares* These consolidated financial results are outside the scope of quarterly review by Certified Public Accountants orauditing corporations.
* 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.

3DAIICHIKOSHO

CO.,

LTD.

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

FY2017(As of March 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Inventories
OtherAllowance for doubtful accounts
Total current assets
Non-current assetsProperty, 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

Current First quarter(As of June 30, 2018)45,538
5,132
4,969
6,252
5,660
(175)
67,37843,859
4,981
2,697
6,096
7,063
(163)
64,534

9,794
19,29938,053
8,258
75,405

9,839
19,29138,0538,150
75,334

4,065
6,198
10,263

3,899
6,234
10,133

5,288
14,2637,656(65)27,142
112,812180,190

5,534
14,9247,822(65)
28,216113,684
178,219

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

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 benefitsNet defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5FY2017(As of March 31, 2018)

Current First quarter(As of June 30, 2018)

3,421
4,015
4,652
1,128
12,14625,365

3,124
4,251
2,084
573
12,69822,731

6,500
12,587
1,047
6,176
3,157
29,46954,8346,500
12,356
778
6,294
3,497
29,42752,15812,350
4,003
108,489(1,309)123,534

12,350
4,003
109,108(1,309)124,152

1,261(733)
87(356)
258
203
1,359
125,356
180,190

1,311
(733)
71(333)
315
224
1,367
126,060
178,219

DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Cooperative monetary aid received
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
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 losses
Loss on disposal of non-current assets
Impairment loss
Total extraordinary lossesIncome before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

6

Three months ended
June 30, 2017
(From April 1, 2017, toJune 30, 2017)

Three months ended
June 30, 2018
(From April 1, 2018, toJune 30, 2018)33,94820,216
13,731
8,178
5,553

34,83921,075
13,763
8,414
5,349

9
77
42
257
387

23
85
186
242
537

81
39
120
5,820

40
29
69
5,817

63－63

061
62

36
117
154
5,729
2,056
(100)1,955
3,774
15
3,758

19
222
5,858
2,071(42)
2,028
3,829
20
3,808

DAIICHIKOSHO

CO.,

LTD.

(Quarterly Consolidated Statements of Comprehensive Income)(Millions of yen)

Net income
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 parent
Comprehensive income attributable to non-controllinginterests

7

Three months endedJune 30, 2017
(From April 1, 2017, toJune 30, 2017)

Three months ended
June 30, 2018
(From April 1, 2018, toJune 30, 2018)

3,774

3,829

11(25)
25
11
3,785

50(16)
23
56
3,886

3,769

3,865

1520

DAIICHIKOSHO

CO.,

LTD.

Notes to the Quarterly Consolidated Financial Statements(Segment Information)
Three months ended June 30, 2017 (From April 1, 2017, to June 30, 2017)(Millions of yen)
Reportable segments
Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotalSales

16,366

13,658

1,938

Segment income or
Segment loss(Operating income or
Operating loss)

4,391

1,583

(0)

Adjusted
amount(Note)

Postedamount to theconsolidated
quarterlystatements ofincome

OtherTotal

31,963

1,984

33,948－33,948

5,974

377

6,351

(798)

5,553

Note: The (798) million yen adjustment posted to segment income or segment loss is primarily composed of general andadministrative expenses incurred by the administrative department at the head office that are not attributable to any
particular reportable segment.

Three months ended June 30, 2018 (From April 1, 2018, to June 30, 2018)(Millions of yen)Reportable segments
Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal

Sales

16,224

14,7191,871

Segment income(Operating income)

4,375

1,358

3

Adjusted
amount(Note)

Postedamount to theconsolidated
quarterlystatements ofincome

Other

Total

32,816

2,023

34,839－34,8395,737

373

6,111(761)5,349

Note: The (761) million yen adjustment posted to segment income is primarily composed of general and administrative
expenses incurred by the administrative department at the head office that are not attributable to any particular
reportable segment.

8