DAIICHIKOSHO

CO.,

LTD.

FY2011, the year ending March 31, 2012

Flash Report on the Consolidated Results for the Interim Period Ended
September 30, 2011 [JGAAP]
November 7, 2011

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

DAIICHIKOSHO CO., LTD.
Osaka (JASDAQ)
7458
http://www.dkkaraoke.co.jp/
Saburo Hayashi, President
Shigeki Kobayashi,
General Manager, Accounting Department, Administration Headquarters
Phone:+81-3-3280-2151
Scheduled Date to Submit the Quarterly Securities Report: November 14, 2011
Start Date for Dividend Payment: December 5, 2011
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, 2011 (from April 1, 2011,
to September 30, 2011)(1) Consolidated operating results
Interim Period ended
September 30, 2011
Interim Period ended
September 30, 2010

Net sales
Millions of yen
62,15060,833(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income% Millions of yen% Millions of yen%
2.2
9,111
(0.1)
9,944
3.8(2.6)

9,124

Net income

7.3

Net income per share

Millions of yen%
Yen
Interim Period ended
5,256(2.4)
81.99
September 30, 2011
Interim Period ended
5,388
(5.2)
81.95
September 30, 2010
(Note) Comprehensive income:Interim Period ended September 30, 2011: 4,792 million yen (11.9)%
Interim Period ended September 30, 2010: 5,442 million yen―%(2) Consolidated financial position
Total assets
Millions of yen
137,343
137,447

Net assets
Millions of yen
89,791
88,034As of September 30, 2011
As of March 31, 2011
(Reference) Equity
As of September 30, 2011: 88,809 million yen
As of March 31, 2011:87,083 million yen

1Equity ratio
%
64.7
63.4

9,575

5.8

Fully diluted net income
per share
Yen――

DAIICHIKOSHO

CO.,

LTD.

2. Dividend
First Quarter

Second Quarter
Yen
25.00
25.00

Annual dividend
Third Quarter

Year ended March 31, 2011——Year ending March 31, 2012―
Year ending March 31, 2012―(forecast)
Note: Changes in dividends forecast from most recently announced figures: Yes

Year-endYen
30.00
30.00

TotalYen55.00
55.00

3. Forecast Consolidated Performance for FY2011, the Year Ending March 31, 2012
(From April 1, 2011, to March 31, 2012)

Year ending March 31, 2012
(full year)(Percentage figures indicate increase/decrease from the end of the previous term.)
Net sales
Operating income
Ordinary income
Millions of yen% Millions of yen% Millions of yen%
127,000(0.7)
18,0009.0
19,40011.1
Net income
Millions of yen
10,500Net income per share
Yen
165.52%
Year ending March 31, 2012
9.5
(full year)
Note: Changes in forecast of consolidated operating results from most recently announced figures: Yes

4. Other(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: 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 of64,220,596 As of64,220,596(including treasury stock)
September 30, 2011
shares March 31, 2011
shares2) Number of shares of treasury
As of785,563 As of2,813
stock
September 30, 2011
shares March 31, 2011
shares3) Average number of sharesInterim period ended
64,113,999 Interim period ended 65,747,015
during the period
September 30, 2011
shares September 30, 2010
shares* Presentation regarding the implementation status of the quarterly review
This flash report on the consolidated results for the interim period 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 is based on the information that is available, aswell 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)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

3FY2010(As of March 31, 2011)

Current interim period(As of September 30,2011)

26,955
10,597
7,354
5,936
(397)
50,44627,229
6,956
6,515
7,290
(251)
47,7406,300
14,735
19,143
6,906
47,085

6,515
14,64923,397
6,805
51,367

641
7,421
8,063

545
6,604
7,150

12,91913,1986,018(283)
31,85287,001
137,447

12,254
12,6986,415(283)
31,08589,602
137,343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
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Negative goodwill
Other
Total noncurrent 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
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

4FY2010(As of March 31, 2011)

Current interim period(As of September 30,2011)

6,091
5,465
3,120
1,121
9,599
25,398

3,592
5,879
4,315
1,398
9,710
24,896

16,831
3,011
2,318
234
1,618
24,01449,413

15,629
3,147
2,140
212
1,525
22,65547,552

12,35014,03561,552(4)
87,934

12,35014,03564,883(1,108)90,160

91
(777)
(164)
(851)
951
88,034137,447

(337)
(777)
(236)
(1,351)
982
89,791
137,343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
Dividends income
Cooperative monetary aid received
Reversal of allowance for doubtful accounts
Amortization of negative goodwill
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on redemption of investment securities
Reversal of allowance for doubtful accounts
Reversal of provision for retirement benefits
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on cancellation of a new business
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Loss on abolishment of qualified pension plan
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

5Previous interim period(From April 1, 2010, toSeptember 30, 2010)

Current interim period(From April 1, 2011, toSeptember 30, 2011)

60,83334,82826,005
16,881
9,124

62,15036,33625,813
16,701
9,111

81
39
245
－23
318
707

354
43
252
119
21
359
1,151

100
156
256
9,575

147
170
318
9,944

13
7
148
56
107
54
387

1919－－－－
39

149－

107
680

440－

531
47
1,168
8,794
3,863(547)
3,315
5,478
90
5,388－
24812
9,171
4,241(362)
3,878
5,292
35
5,256

DAIICHIKOSHO

CO.,

LTD.

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

Income before minority interests
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 theparent
Comprehensive income attributable to minority interests

6

Previous interim period(From April 1, 2010, toSeptember 30, 2010)

Current interim period(From April 1, 2011, toSeptember 30, 2011)

5,478

5,292

45
(81)
(36)
5,442

(428)
(71)
(499)
4,792

5,352

4,757

9035

DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ retirement
benefits
Interest and dividends income
Interest expenses
Loss (gain) on disposal of noncurrent 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
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) 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
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
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

Previous interim period(From April 1, 2010, toSeptember 30, 2010)

Current interim period(From April 1, 2011, toSeptember 30, 2011)

8,794
6,005

9,171
6,691

440

－

(23)
(77)
294

(21)
(146)
276

35

(178)

(120)
100
135
204
(201)
256
470
(974)
15,340119(97)(5,293)
10,069

(397)
147
87
3,635
833
156
(2,487)(383)
17,386307(145)(3,060)14,488(157)
80(4,334)
41(2,127)
(661)
(51)
43(68)
103(8,468)141(1,437)(664)－
39(1,083)－(285)
222
(705)
190
213
(8,614)

(250)
290
(351)
620
(63)
(10,109)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Net cash provided by (used in) 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

8

Previous interim period(From April 1, 2010, toSeptember 30, 2010)

Current interim period(From April 1, 2011, toSeptember 30, 2011)

362
1,250
(3,258)(1,971)(1,096)(9)(4,722)(55)(3,323)33,87730,554132
1,300(2,220)(1,925)(1,104)(21)(3,840)(26)
511
26,57327,085DAIICHIKOSHO

CO.,

LTD.

(4) Segment Information
I Previous interim period (From April 1, 2010, to September 30, 2010)
Reportable segments

Sales

Commercial
karaokeKaraokecabin andrestaurant

Musicsoftware

Subtotal

OtherTotal

30,50919,553

5,964

56,027

4,806

60,833(Millions of yen)
Postedamount to theAdjusted consolidated
amountquarterlystatements ofincome—

60,833

Segment income
6,867
2,591
691
10,150463
10,613(1,488)
9,124(Operating income)(Note) The (1,488) 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 to any particular segment.

II Current interim period (From April 1, 2011, to September 30, 2011)
Reportable segments

Sales

Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal

Other

Total

31,402

21,3694,996

57,767

4,382

62,150(Millions of yen)
Postedamount to theAdjusted consolidated
amountquarterlystatements ofincome—

62,150

Segment income
6,653
3,123
376
10,152393
10,546(1,434)
9,111(Operating income)(Note) The (1,434) 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 to any particular segment.

9