DAIICHIKOSHO

CO.,

LTD.

FY2014, the year ending March 31, 2015

Flash Report on the Consolidated Results for the First Quarter Ended
June 30, 2014 [JGAAP]
August 4, 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: August 13, 2014
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 First Quarter Ended June 30, 2014 (From April 1, 2014,
to June 30, 2014)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
32,206

Operating income
Ordinary income% Millions of yen% Millions of yen%
(0.6)
4,969
(8.0)
5,481
(5.2)

32,400

4.0

Millions of yen

Three months ended
June 30, 2014
Three months ended
June 30, 2013

5,404

Net income

15.9

Net income per share

Millions of yen%
Yen
Three months ended
3,233
(1.3)
55.58
June 30, 2014
Three months ended
3,277
10.0
54.88
June 30, 2013
(Note) Comprehensive income:Three months ended June 30, 2014: 3,476 million yen 17.4 %Three months ended June 30, 2013: 2,960 million yen (2.8) %Total assets

Net assets
Millions of yen

As of June 30, 2014
159,155
As of March 31, 2014
161,587(Reference) Shareholders’ equity:
As of June 30, 2014: 102,378 million yen
As of March 31, 2014: 101,114 million yen

103,546
102,2681

16.1

Fully diluted net income
per shareYen――(2) Consolidated financial position
Millions of yen

5,782

Equity ratio%
64.3
62.6

DAIICHIKOSHO

2.

CO.,

LTD.

Dividend
First Quarter

Second Quarter
Yen
30.00

Annual dividend
Third Quarter

Year ended March 31, 2014——
Year ending March 31,―
2015
Year ending March 31,
30.00―2015 (forecast)(Note) Changes in dividends forecast from most recently announced figures: None

Year-endYen
35.00

Annual35.00

Yen
65.00

65.00

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

Six months ending
September 30, 2014
Year ending March 31,
2015 (full year)(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
Millionsofyen
Millionsof yen%%%65,4000.7

9,200(8.8)

10,100(7.0)

134,000

2.6

19,5001.9

21,3000.3

Net income
Millions of yen

Net income per share
Yen%

Six months ending
5,900(4.3)
101.69September 30, 2014
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)June 30, 2014
shares March 31, 2014
shares2) Number of shares of
As of
2,766 As of
2,714
treasury stock
June 30, 2014
shares March 31, 2014
shares3) Average number of shares
Three months ended
58,166,196 Three months ended
59,722,286
during the period
June 30, 2014
shares June30, 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
Noncurrent assets
Property, plant and equipment
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities, netLand
Other, net
Total property, plant and equipmentIntangible 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

3

Current First quarter(As of June 30, 2014)

44,223
6,403
7,000
6,233
(131)
63,72933,629
5,947
7,706
8,462
(117)
55,627

8,289
15,70526,095
5,588
55,6798,971
15,872
26,095
5,658
56,597

1,675
6,016
7,691

1,565
5,916
7,482

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

19,932
13,7085,910(104)
39,448103,528
159,155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
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for directors' retirement benefits
Liabilities for retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplusRetained 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 benefits plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

4

Current First quarter(As of June 30, 2014)

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

4,657
4,071
2,377
527
11,607
23,241

10,00013,367
2,296
5,075
1,932
32,67059,31810,00013,657
2,217
4,478
2,013
32,36855,60912,3504,001
84,926(7)
101,270

12,3504,001
85,966(8)
102,310

1,172
(777)
51(602)(156)
1,153
102,268
161,587

1,347
(777)
76(577)68
1,167
103,546
159,155DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of yen)Three months ended
June 30, 2013
(From April 1, 2013, toJune 30, 2013)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Compensation income
Other
Total 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
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent 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

5Three months ended
June 30, 2014(From April 1, 2014, toJune 30, 2014)

32,40018,416
13,9848,580
5,404

32,206
18,747
13,459
8,489
4,969

196
133
314
645

263－
377
640

73
193
267
5,782

69
59
128
5,481

3－
3

11
36
48

96
3
100
5,685
2,752
(368)
2,384
3,301
23
3,277

84
0
84
5,445
2,504
(310)
2,193
3,251
18
3,233

DAIICHIKOSHO

CO.,

LTD.

(Quarterly Consolidated Statements of Comprehensive Income)(Millions of yen)Three months ended
June 30, 2013
(From April 1, 2013, toJune 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

6

Three months ended
June 30, 2014
(From April 1, 2014, toJune 30, 2014)

3,301

3,251

(383)
43－(340)
2,960

175
24
24
224
3,476

2,937

3,457

2318

DAIICHIKOSHO

CO.,

LTD.

(4) Segment Information
Three months ended June 30, 2013 (From April 1, 2013, to June 30, 2013)
Reportable segments(Millions of yen)
Postedamount to theAdjustedconsolidated
amountquarterly(Note)statements ofincome

Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal

Other

Total

Sales

17,13011,284

2,168

30,583

1,816

32,400－32,400

Segment income(Operating income)

4,108

1,647

110

5,866

337

6,203

(799)

5,404

(Note) The (799) million yen adjustment posted to Segment income is primarily composed of General and AdministrativeExpenses incurred from the administrative department at the head office that are not attributable to any particularsegment.

Three months ended June 30, 2014 (From April 1, 2014, to June 30, 2014)
Reportable segments

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

Commercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Other

Total

16,171

12,372

2,076

30,6191,586

32,206－32,206

3,899

1,627

(32)

5,494

240

5,734(765)4,969(Note) The (765) 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 particularsegment.

(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.

7