DAIICHIKOSHO

CO.,

LTD.

FY2015, the year ending March 31, 2016

Flash Report on the Consolidated Results for the Third Quarter EndedDecember 31, 2015 [JGAAP]
February 8, 2016

Company Name:
DAIICHIKOSHO CO., LTD.
Stock Exchange Listing: Tokyo Stock Exchange
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: February 12, 2016
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 Third Quarter Ended December 31, 2015 (From April 1, 2015,
to December 31, 2015)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
106,645

Operating income
Ordinary income% Millions of yen% Millions of yen%
7.6
15,6293.0
16,7190.0

99,1490.3

Millions of yen

Nine months ended
December 31, 2015Nine months ended
December 31, 2014

15,173

Net income attributable toowner of parent
Millions of yen%
10,201
1.4

Nine months ended
December 31, 2015
Nine months ended
10,060December 31, 2014
(Note) Comprehensive income:Nine months ended December 31, 2015:
Nine months ended December 31, 2014:(3.3)

Basic earnings per shareYen
176.62

1.6

173.258,569million yen
10,294million yen(16.7) %18.5 %

Total assets

Net assets
Millions of yen

As of December 31, 2015
177,995
111,163
As of March 31, 2015
180,312110,264(Reference) Shareholders’ equity:
As of December 31, 2015: 109,862million yen
As of March 31, 2015:
109,049million yen

1Equity ratio%
61.7
60.5

(3.0)

Fully diluted net income
per share
Yen
176.56―(2) Consolidated financial position
Millions of yen

16,713

DAIICHIKOSHO

2.

CO.,

LTD.

Dividend

Year ended March 31, 2015
Year ending March 31, 2016

First Quarter
Yen——

Second Quarter
Yen
50.00
54.00

Annual dividend
Third Quarter
Yen——

Year-end
Yen
50.00

Year ending March 31,
2016 (forecast)(Note) Changes in dividends forecast from most recently announced figures: None

Annual54.00

Yen
100.00108.003. Forecast Consolidated Performance for FY2015, the Year Ending March 31, 2016
(From April 1, 2015, to March 31, 2016)
Net sales
Millions of yen

Year ending March 31,
2016 (full year)

142,500(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income% Millions of yen% Millions of yen%
7.1

20,700Net income attributable toowner of parent
Millions of yen%

8.7

22,500

6.7

Basic earnings per shareper share
Yen

Year ending March 31,
13,300(2.6)
230.782016 (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 resultingfrom 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
(4) Number of common shares issued
1) Number of shares issued
As of57,634,200 As of
58,025,000(including treasury stock)
December 31, 2015
shares March 31, 2015
shares2) Number of shares ofAs of
3,030 As of
2,879
treasury stock
December 31, 2015
shares March 31, 2015
shares3) Average number of shares
Nine months ended
57,761,082 Nine months ended
58,069,872
during the period
shares December 31, 2014
shares
December 31, 2015
* 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, 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)

FY2014(As of March 31, 2015)
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

Current Third quarter(As of December 31,2015)

59,747
7,016
6,933
6,363
(139)
79,92051,879
6,489
6,564
7,678
(136)
72,475

9,262
17,23626,3395,554
58,393

11,545
19,73827,516
5,912
64,712

1,235
6,350
7,585

1,992
5,809
7,80113,263
14,392
6,844(87)
34,413
100,392
180,312

10,743
14,4247,922(84)
33,006
105,520
177,995

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2014(As of March 31, 2015)
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 assetsShareholders' 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 benefits plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

4

Current Third quarter(As of December 31,2015)

4,723
3,949
5,007
1,063
12,70227,446

5,563
4,439
1,745
1,029
11,05523,833

10,00023,161
2,426
4,780
2,233
42,60270,04810,00023,479
1,235
5,142
3,140
42,99866,831

12,3504,001
93,439(8)
109,782

12,350
4,001
95,931(13)
112,270

318
(733)
210
(528)
(733)
－
1,215
110,264
180,312(1,370)
(733)
154
(458)
(2,408)54
1,246
111,163
177,995

DAIICHIKOSHO

CO.,

LTD.

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

Nine months ended
December 31, 2014
(From April 1, 2014, toDecember 31, 2014)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
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 losses
Income before income taxes and minority interests
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

5

Nine months ended
December 31, 2015
(From April 1, 2015, toDecember 31, 2015)

99,14958,72340,42525,252
15,173

106,645
65,151
41,49325,864
15,629

767
1,100
1,868

595
1,033
1,629

225
103
329
16,713255
283
539
16,719

14
173
187

22－
22

234
0
234
16,666
6,583
(19)
6,564
10,101
41
10,060192
248
441
16,300
6,041
14
6,056
10,24443
10,201DAIICHIKOSHO

CO.,

LTD.

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

Nine months ended
December 31, 2014
(From April 1, 2014, toDecember 31, 2014)
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 theparent
Comprehensive income attributable to non-controllinginterests

6

Nine months ended
December 31, 2015
(From April 1, 2015, toDecember 31, 2015)

10,101

10,244

(6)
124
74
192
10,294(1,688)(55)
69(1,674)
8,569

10,252

8,526

41

43

DAIICHIKOSHO

CO.,

LTD.

(3) Segment Information
Nine months ended December 31, 2014 (From April 1, 2014, to December 31, 2014)
Reportable segments
OtherTotal(Millions of yen)
Postedamount to the
Adjusted
consolidated
amountquarterly(Note)
statements ofincome

Commercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Sales

47,95939,6906,560

94,211

4,938

99,149－99,149

Segment income(Operating income)

10,541

5,767

49

16,358909

17,268(2,095)

15,173(Note) The (2,095) 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.

Nine months ended December 31, 2015 (From April 1, 2015, to December 31, 2015)
Reportable segments

Sales
Segment income(Operating income)

Other

Total

(Millions of yen)
Postedamount to theconsolidated
Adjustedquarterly
amountstatements of(Note)
incomeCommercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal51,958

43,070

6,398

101,426

5,218

106,645－106.645

11,0775,757

18

16,853

1,132

17,985(2,356)15.629(Note) The (2,356) 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.

7

DAIICHIKOSHO

CO.,

LTD.

(4) Issues Related to Summary Information (Notes)
Changes to Accounting Policies, Changes to Accounting Estimates, and Revision Restatements(Changes to Accounting Policies)
Following the adoption of revised standards, from the period under review, the Company has applied the “AccountingStandards for Business Combination” (Accounting Standards Board of Japan (ASBJ) Accounting Standards Statement
No.21 dated September 13,2013; hereinafter the “Accounting Standards for Business Combination”), the “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22 dated September 13,2013; hereinafter the“Consolidated Financial Statements Accounting Standards”), and the “Accounting Standards for Business Divestitures”(ASBJ Statement No. 7 dated September 13,2013; hereinafter the “Business Divestitures Accounting Standards”),As aresult, the method of recording the amount of difference caused by changes in the Company’s ownership interests in
subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one in which it is recorded ascapital surplus, and the method of recording acquisition-related costs was changed to one in which they are recognized as
expenses for the fiscal year in which they are incurred. Furthermore, for business combinations carried out on or after thebeginning of the period under review, the accounting method was changed to one in which the reviewed acquisition costallocation resulting from the finalization of the provisional accounting treatment is reflected in the quarterly consolidated
financial statements for the quarterly period to which the date of business combination belongs. In addition, thepresentation method for “net income” and other related items was changed, and the presentation of “minority interests” waschanged to “non-controlling interests.” To reflect these changes, the Company has reclassified its quarterly and full-year
consolidated financial statements for the nine months ended December 31, 2014 and the previous fiscal year.
The Accounting Standard for Business Combinations has been applied prospectively since the beginning of the period
under review, according to the transitional handling prescribed in Article 58-2(4) of “Accounting Standard for BusinessCombinations”, Article 44-5(4) of “Consolidated Financial Statements Accounting Standards”, and Article 57-4(4) of“Accounting Standards for Business Combination”.
These changes in accounting policies have minimal impact on profit and loss for the period under review.

Additional Information(Provision for directors' retirement benefits)
Resolution was made at the Board of Directors meeting on May 18, 2015, to abolish the Provision for Directors’ Retirement
Benefits Policy. In connection with that, at the general meeting of shareholders on June 19, 2015, it was passed byagreement to pay for every director the retirement benefits that correspond to their administration when they retire, about
the directors in office on or after this general meeting.

8