DAIICHIKOSHO

CO.,

LTD.

FY2012, the year ended March 31, 2013

Flash Report on the Consolidated Results for the Year Ended March 31, 2013
[JGAAP]May 15, 2013

Company Name:
DAIICHIKOSHO CO., LTD.
Stock Exchange Listing: Osaka (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
Date of the Ordinary General Meeting of Shareholders: June 21, 2013
Start Date for Dividend Payment:
June 24, 2013
Scheduled Date to Submit the Securities Report:
June 25, 2013
Availability of Supplementary Briefing Material on Financial Results: Available
Schedule of Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Year Ended March 31, 2013 (From April 1, 2012, to March 31,
2013)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Year ended March 31, 2013
Year ended March 31, 2012

128,901
127,246

Operating income
Ordinary income% Millions of yen% Millions of yen%
1.3
18,395(2.0)
22,2808.5(0.5)
18,774
13.7
20,54417.7

Net income

Net income per share

Millions of yen%
Year ended March 31, 201312,81919.9
Year ended March 31, 2012
10,68911.5
Note: Comprehensive income
Year ended March 31, 2013: 15,839 million yen 38.3%
Year ended March 31, 2012: 11,454 million yen 15.6%

Return on equity

Yen
209.06167.70Ordinary income to total
assets%%Year ended March 31, 2013
13.3
14.8
Year ended March 31, 2012
11.9
14.7
(Reference) Equity in net income of unconsolidated subsidiaries and affiliates:
Year ended March 31, 2013: 0 million yen
Year ended March 31, 2012: (10) million yen

1

Fully diluted net income
per share
Yen――

Operating income to net
sales
%
14.3
14.8

DAIICHIKOSHO

CO.,

LTD.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Year ended March 31, 2013
159,479
100,315
Year ended March 31, 2012
142,238
93,804(Reference) Shareholders’ equity:Year ended March 31, 2013: 99,258 million yen
Year ended March 31, 2012: 92,826 million yen

Equity ratio
%
62.2
65.3

Net assets per share
Yen
1,662.00
1,477.71(3) Consolidated cash flows

Year ended March 31, 2013
Year ended March 31, 2012

Net cash providedby (used in)operatingactivities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at theend of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

24,48232,808(18,553)(17,619)(989)(7,404)

41,96334,367First Quarter――

Second Quarter
Yen
25.00
25.00

―

30.00

2. DividendYear ended March 31, 2012
Year ended March 31, 2013
Year ending March 31,
2014 (forecast)Aggregate amount ofdividend (total)

Annual dividend
Third Quarter

―

30.00

Payout ratio (consolidated)

Millions of yen

Year ended March 31, 2012
Year ended March 31, 2013
Year ending March 31,
2014 (forecast)――Year-end
Yen
30.00
35.00

%
32.8
28.7

3,470
3,635

Total
Yen
55.00
60.00
60.00

Ratio of dividends to net
assets (consolidated)
%
3.9
3.8

29.9

3. Forecast Consolidated Performance for FY2013, the Year Ending March 31, 2014 (From April 1,
2013, to March 31, 2014)
Net sales
Millions of yen

Six months ending
September 30, 2013
Year ending March 31,
2014 (full year)(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
MillionsofyenMillionsof yen%%%63,700

1.5

9,000

(4.9)

9,700

(4.3)

130,000

0.9

19,0003.3

20,400(8.4)

Net income
Six months ending
September 30, 2013
Year ending March 31,
2014 (full year)

Net income per share
Yen

Millions of yen

%

5,730

(3.1)

95.94

12,000(6.4)

200.93

2

DAIICHIKOSHO

CO.,

LTD.

*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting fromchanges in scope of consolidation): None
(2) 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 (2) 1): None
3) Changes due to accounting estimation change: Yes
4) Error correction: None
(3) Number of common shares issued
1) Number of shares issued
As of59,725,000 As of
63,420,596(including treasury stock)
March 31, 2013
shares March 31, 2012
shares2) Number of shares of treasury
As of
2,714 As of
602,863
stock
March 31, 2013
shares March 31, 2012
shares3) Average number of sharesYear ended
61,318,793 Year ended
63,742,957
during the period
March 31, 2013
shares March 31, 2012
shares(Reference) Outline of Nonconsolidated Financial Results
1. Nonconsolidated Performance for the Year Ended March 31, 2013 (From April 1, 2012, to March
31, 2013)(1) Nonconsolidated operating results
Net sales
Millions of yen

Year ended March 31, 2013
Year ended March 31, 2012

90,93486,276(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income% Millions of yen% Millions of yen%
5.4
12,266
7.1
16,67230.5(0.7)
11,451
9.3
12,774
7.8

Net income
Millions of yen

Year ended March 31, 2013
Year ended March 31, 2012

10,1306,440

Net income per share
%
57.3
(2.8)

Yen
165.20101.04

Fully diluted net income
per shareYen——(2) Nonconsolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

Year ended March 31, 2013
116,095
Year ended March 31, 2012
99,274(Reference) Shareholders’ equity:Year ended March 31, 2013: 64,886 million yen
Year ended March 31, 2012: 61,230 million yen

64,886
61,230Equity ratio
%
55.9
61.7

Net assets per share
Yen
1,086.46
974.74* Presentation regarding the implementation status of the audit procedure:This flash report on the consolidated results is not covered by the audit procedure stipulated in the Financial
Instruments and Exchange Act. At the time of the publication of this report, the audit procedure for 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.

3

DAIICHIKOSHO

CO.,

LTD.

(Attachment)

Corporate GroupThe Daiichikosho Group (“DKG”) consists of Daiichikosho Co., Ltd. (“DK” or “the company”), 37
consolidated subsidiaries and 1 affiliate. The major group companies engage in sales and rental ofcommercial-use karaoke equipment, supply of sound source and video content for communication
karaoke, operation of karaoke cabins and restaurants, and production and sales of music and video
software products.
Business segment

Business line

Commercial
karaoke

Sales and rental of commercial-use
karaoke equipment and supply ofsound source and video content forcommunication karaoke

Karaoke cabin
and restaurant

Operation of karaoke cabins andrestaurants

Music software

Production and sales of music andvideo software products

Other

Satellite broadcasting, supply ofcontent services via mobile phone andreal estate lease and rental, etc.

4

Domestic

Overseas

Daiichikosho Co., Ltd.,
Hokkaido Daiichikosho Co., Ltd.,
Tohoku Daiichikosho Co., Ltd.,
Taito Daiichikosho Co., Ltd.,
Niigata Daiichikosho Co., Ltd.,
Tokai Daiichikosho Co., Ltd.,
Daiichikosho Kinki Co., Ltd.,
Kyushu Daiichikosho Co., Ltd.,and 17 other subsidiaries
Daiichikosho Co., Ltd.,
Nippon Crown Co., Ltd.,
Tokuma Japan Communications Co.,Ltd.,
CROWN TOKUMA music
distribution Co., Ltd.,
Union Eiga Co., Ltd.,and 4 other subsidiaries
Daiichikosho Co., Ltd.,DK Finance Co., Ltd.,and Maruhagi Yoshu Kogyo Co., Ltd.

DK KOREA
Co., Ltd.,
Daiichikosho(Shanghai), Ltd.,and 1 othersubsidiary

DAIICHIKOSHO

CO.,

LTD.

The following diagram schematically shows the relationships of the respective group companies and businesses.

(Overseas subsidiaries)(Domestic sales subsidiaries)

DK KOREA Co., Ltd.
Daiichikosho (Shanghai), Ltd.
DAIICHI KOSHO (SHANGHAI)
TRADE CO., LTD.

(Intermediary services related to
installment sales and loans for
DK and group companies)
DK Finance Co., Ltd.

(Production and sales of music
software products)
Nippon Crown Co., Ltd.
Tokuma Japan Communications
Co., Ltd.
CROWN TOKUMA music
distribution Co., Ltd.
Tri-M, Inc.
DK Music Publishing Co., Ltd.
Union Eiga Co., Ltd.
Crown Music Enterprise Co.
Zoom RepublicOverseas users

DAIICHIKOSHO CO., LTD. (Reporting company)

Domestic users

Hokkaido Daiichikosho Co., Ltd.
Tohoku Daiichikosho Co., Ltd.
Niigata Daiichikosho Co., Ltd.
Kyushu Daiichikosho Co., Ltd.
Taito Daiichikosho Co., Ltd.
Tokai Daiichikosho Co., Ltd.
Daiichikosho Kinki Co., Ltd.
17 other companies(Equity method affiliate)
Bono Music(Production and sale of fruitwines)
Maruhagi Yoshu Kogyo Co., Ltd.

Sales and rentals of merchandise and products

Operation of karaoke cabins and restaurants

Provision of services

Note: Daiichikosho Co., Ltd. sold all of its shares held in Inarajan Garden House, Inc., formerly known as D.K.Enterprises (Guam),Inc., in August 2012. Therefore, Inarajan Garden House, Inc. is excluded from the scope of consolidation.

5

DAIICHIKOSHO

CO.,

LTD.

Consolidated Financial Statements(1) Consolidated Balance Sheets
FY2011(As of March 31, 2012)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Karaoke equipment for rental
Accumulated depreciation
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities
Accumulated depreciation
Karaoke cabin and restaurant facilities, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

6(Millions of yen)
FY2012(As of March 31, 2013)

34,219
7,007
463
5,155
1,601
4,190
(130)
52,50841,248
8,337
1,072
6,178
1,422
4,240
(134)
62,36514,000(8,814)
5,185
30,648(24,467)
6,180
34,343(19,864)
14,47924,316
7,171(6,260)911
51,074

13,097(8,270)4,826
32,811(25,212)
7,598
36,125(20,874)
15,251
24,497
7,880(5,571)
2,308
54,484

472
6,081
6,553

405
5,956
6,361

13,892
1,161
3,410
12,805
1,083(251)
32,10289,730142,238

18,998813
2,148
13,0601,394(146)
36,268
97,113
159,479DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2011(As of March 31, 2012)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
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

7

FY2012(As of March 31, 2013)

3,328
5,554
7,146
5,353
1,062
3,714
26,159

4,540
4,836
8,815
4,524
1,063
3,603
27,384－15,004
43
3,299
2,220
190
1,516
22,274
48,433

10,00014,151
62
3,683
2,088
146
1,647
31,78059,164

12,35012,90568,730(989)
92,996

12,3506,026
78,119(5)
96,490

793
(777)
(186)
(170)
978
93,804142,238

3,646
(777)
(100)
2,768
1,056
100,315
159,479DAIICHIKOSHO

CO.,

LTD.

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

FY2011(From April 1, 2011, to
March 31, 2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Packing and freight expenses
Directors' compensations
Provision for directors' retirement benefits
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Cooperative monetary aid received
Amortization of negative goodwill
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income

8

FY2012(From April 1, 2012, toMarch 31, 2013)

127,246
74,872
52,373

128,901
75,88453,016

2,645
1,572
1,047
1,735
258
13,148
853
527
1,319
863
9,626
33,59818,774

2,617
2,150
1,040
1,648
369
13,473
842
494
1,261
794
9,926
34,62018,395

702
578
72
－
914
2,267

717
490
43
2,471
709
4,433

285
213
498
20,544295
252
548
22,280DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2011(From April 1, 2011, to
March 31, 2012)
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
Impairment loss
Loss on liquidation of related business
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

9

FY2012(From April 1, 2012, toMarch 31, 2013)

24
20
45

50
92
142

267
438
634
31
1,371
19,218
8,309
135
8,444
10,77484
10,689

569
359
－
－
928
21,495
8,604
(9)
8,594
12,90081
12,819DAIICHIKOSHO

CO.,

LTD.

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

FY2011(From April 1, 2011, to
March 31, 2012)
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 theparentComprehensive income attributable to minority interests

10

FY2012(From April 1, 2012, toMarch 31, 2013)

10,774

12,900

702
(21)
680
11,454

2,852
86
2,939
15,83911,37015,75884

81

DAIICHIKOSHO

CO.,

LTD.

(3) Consolidated Statements of Changes in Net Assets(Millions of yen)

FY2011(From April 1, 2011, to
March 31, 2012)
Shareholders' equity
Capital stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Retirement of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Retirement of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Retirement of treasury stock
Total changes of items during the period
Balance at the end of current period

11

FY2012(From April 1, 2012, toMarch 31, 2013)12,35012,35012,35012,35014,035

12,905(1,130)(1,130)12,905(6,879)(6,879)6,026

61,552

68,730(3,512)
10,689
7,177
68,730(3,429)12,8199,389
78,119(4)(989)(2,115)
1,130
(984)
(989)

(5,895)
6,879
983
(5)

87,934

92,996(3,512)
10,689(2,115)－
5,062
92,996(3,429)12,819(5,895)－
3,493
96,490DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2011(From April 1, 2011, to
March 31, 2012)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Revaluation reserve for land
Balance at the beginning of current period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

12

FY2012(From April 1, 2012, toMarch 31, 2013)

91

793

702
702
793

2,852
2,852
3,646

(777)
(777)

(777)
(777)

(164)

(186)

(21)
(21)
(186)

86
86
(100)

(851)

(170)

680
680
(170)

2,939
2,939
2,768

951

978

27
27
978

78
78
1,056

88,03493,804(3,512)
10,689(2,115)708
5,770
93,804(3,429)12,819(5,895)3,017
6,510
100,315DAIICHIKOSHO

CO.,

LTD.

(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2011(From April 1, 2011, to
March 31, 2012)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividends income
Interest expenses
Loss (gain) on disposal of noncurrent assets
Foreign exchange losses (gains)
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 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
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

13

FY2012(From April 1, 2012, toMarch 31, 2013)

19,218
14,113
438
(72)
(298)

21,495
13,321
359
(43)
(102)

(98)

(132)

(794)
285
242
(23)

(805)
295
518
(2,576)

3,590(1,286)2,196
317(2,761)997
1,109
38,459700(260)(6,091)32,808(1,018)
307
1,184
956
1,026
33,500796(298)(9,516)24,482(218)
283(13,386)
197(3,125)(1,258)
－
48
(885)
606
(677)
866
(71)
(17,619)(236)
194(12,158)251(3,818)(1,700)
(789)
93
(412)
828
(1,039)507(273)(18,553)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2011(From April 1, 2011, to
March 31, 2012)
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
Proceeds from issuance of bonds
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

14

106
2,513
(4,358)－(3,509)(2,115)(40)(7,404)
9
7,793
26,57334,367FY2012(From April 1, 2012, toMarch 31, 2013)
5
2,796(4,372)
9,946(3,430)(5,895)
(39)
(989)
2,656
7,596
34,36741,963

DAIICHIKOSHO

CO.,

LTD.

(5) Segment Information
FY2011 (From April 1, 2011, to March 31, 2012)
Commercial
karaoke
Sales
Sales to third parties
Intersegment sales
and transfers
Total
Segment income(Operating income)
Other items
Depreciation andamortization
Amortization of
goodwill

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Other

Total

Subtotal(Millions of yen)Amount on
Adjusted
consolidated
amountstatements of(Note)
income62,402

45,117

10,974

118,494

8,751

127,246－

127,246

－

－

－

－

－

－

－

－

62,402

45,117

10,974

118,494

8,751

127,246－

127,246

12,266

7,140

1,433

20,841

683

21,524(2,749)18,774

8,604

3,145

36

11,787728

12,51634

12,550

－

169

－

169

－

169

－

169

Note: The (2,749) 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.

FY2012 (From April 1, 2012, to March 31, 2013)
Commercial
karaoke
Sales
Sales to third parties
Intersegment sales
and transfers
Total
Segment income(Operating income)
Other items
Depreciation andamortization
Amortization of
goodwill

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Other

Total

Subtotal(Millions of yen)Amount on
Adjusted
consolidated
amountstatements of(Note)
income64,98545,641

10,654

121,280

7,620

128,901－

128,901

－

－

－

－

－

－

－

－

64,98545,641

10,654

121,280

7,620

128,901－

128,901

12,050

6,852

1,269

20,171

1,241

21,413(3,017)

18,395

8,327

2,915

42

11,285379

11,66525

11,691

0

147

－

147

－

147

－

147

Note: The (3,017) 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.

15