DAIICHIKOSHO

CO.,

LTD.

FY2011, the year ending March 31, 2012

Flash Report on the Consolidated Results for the First Quarter Ended
June 30, 2011 [JGAAP]
August ８, 2011

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,
General Manager, Accounting Department, Administration Headquarters
Phone:+81-3-3280-2151
Scheduled Date to Submit the Quarterly Securities Report: August 11, 2011
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, 2011 (From April 1, 2011,
to June 30, 2011)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
30,685

Operating income
Ordinary income% Millions of yen% Millions of yen
%
0.5
4,770
(3.5)
5,275
2.2

30,538

1.3

Millions of yen

Three months ended
June 30, 2011
Three months endedJune 30, 2010

4,941

Net income

27.9

Net income per share

Millions of yen%
Yen
Three months ended
3,126
2.4
48.68
June 30, 2011
Three months ended
3,054
10.2
46.37
June 30, 2010
(Note) Comprehensive income:Three months ended June 30, 2011: 3,332 million yen 5.5%
Three months ended June 30, 2010: 3,160 million yen ―%Total assets

Net assets
Millions of yen

As of June 30, 2011
137,506
As of March 31, 2011
137,447(Reference) Shareholders’ equity:
As of June 30, 2011: 88,475 million yen
As of March 31, 2011: 87,083 million yen

89,43588,0341

24.9

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

5,162

Equity ratio%
64.3
63.4

DAIICHIKOSHO

CO.,

LTD.

2. Dividend
First Quarter

Second Quarter
Yen
25.00

Annual dividend
Third Quarter

Year ended March 31, 2011―
Year ending March 31,―2012
Year ending March 31,
25.00
2012 (forecast)(Note) Changes in dividends forecast for FY2011 as of June 30, 2011: None

―Year-end
Yen
30.00

―

25.00

TotalYen
55.00

50.00

3. Forecast Consolidated Performance for FY2011, the Year Ending March 31, 2012
(From April 1, 2011, to March 31, 2012)(Percentage figures indicate increase/decrease from a year earlier: The percentages for full-year forecasts mean theincrease/decrease from the end of the previous year, and the half-year forecast percentages represent theincrease/decrease from the end of the previous interim term.)
Net sales
Operating income
Ordinary income¥ Million%¥ Million%¥ Million%
Six months ending
62,3002.4
7,600(16.7)
8,100(15.4)
September 30, 2011
Year ending March 31,126,200(1.3)
15,100(8.5)
16,300(6.6)
2012 (full year)
Net income¥ Million

Net income per share¥%

Six months ending
4,700(12.8)
73.19
September 30, 2011
Year ending March 31,9,300(3.0)
144.82
2012 (full year)(Note) Changes in forecast of consolidated operating results for FY2011 as of June 30, 2011: None

4. Other(1) Significant 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 of(including treasury stock)June 30, 2011
shares March 31, 2011
2) Number of shares of treasury
As of2,863 As ofstock
June 30, 2011
Shares March 31, 2011
3) Average number of shares
Three months ended 64,217,756 Three months ended
during the period
June 30, 2011
shares June 30, 2010

264,220,596shares
2,813
shares65,867,861
sharesDAIICHIKOSHO

CO.,

LTD.

* 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 quarterlyreview 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, 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(1) Quarterly Consolidated Balance Sheets(Millions of yen)

FY2010(As of March 31, 2011)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
OtherAllowance 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

4

Current first quarter(As of June 30, 2011)

26,955
10,597
7,354
5,936(397)
50,446

28,8447,069
8,207
7,450(256)51,3156,300
14,735
19,143
6,90647,085

6,352
14,37019,007
6,722
46,452

641
7,421
8,063

605
6,981
7,586

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

13,216
13,285
5,931(282)
32,151
86,190137,506

DAIICHIKOSHO

CO.,

LTD.

FY2010(As of March 31, 2011)
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

5Current first quarter(As of June 30, 2011)

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

5,087
5,556
2,648
462
10,977
24,731

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

16,471
3,075
2,045
223
1,522
23,33948,07012,35014,03561,552(4)
87,934

12,35014,03562,752(4)
89,134

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

285
(777)
(166)
(659)
960
89,435
137,506

DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income and Comprehensive Income（Quarterly Consolidated Statements of Income)Three months ended June 30, 2011
(Millions of yen)Three months endedJune 30, 2010
(From April 1, 2010,
to June 30, 2010)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Reversal of allowance for doubtful accounts
Amortization of negative goodwill
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
Reversal of allowance for doubtful accounts
Reversal of provision for directors' retirement benefits
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on adjustment for changes of accounting standard
for asset retirement obligations
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

6

Three months ended
June 30, 2011
(From April 1, 2011,to June 30, 2011)

30,538
17,101
13,437
8,495
4,941

30,685
17,585
13,100
8,329
4,770

34
35－11259
341

177
36
135
10285
646

51
69
121
5,162

74
66
1415,275

7460
44
10127

12－－－－
1254

50440－

31
526
4,763
2,198(514)
1,683
3,079
25
3,054

2
52
5,236
2,344(248)
2,095
3,140
133,126

DAIICHIKOSHO

CO.,

LTD.

(Quarterly Consolidated Statements of Comprehensive Income)Three months ended June 30, 2011
(Millions of yen)Three months ended
June 30, 2010
(From April 1, 2010,to June 30, 2010)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive incomeComprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparent
Comprehensive income attributable to minority interests

7

Three months ended
June 30, 2011
(From April 1, 2011,to June 30, 2011)

3,079

3,140

138
(57)
80
3,160

194
(1)
192
3,332

3,134

3,318

25

13

DAIICHIKOSHO

CO.,

LTD.

Segment Information
Three months ended June 30, 2010 (From April 1, 2010, to June 30, 2010)
Reportable segments(Millions of yen)
Postedamount to the
Adjusted
consolidated
amountquarterlystatements ofincome

Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal

Other

Total

Sales

15,494

9,661

2,954

28,1092,428

30,538—30,538Segment income(Operating income)

3,807

1,374

338

5,520

256

5,777(835)4,941Three months ended June 30, 2011 (From April 1, 2011, to June 30, 2011)
Reportable segments(Millions of yen)
Postedamount to the
Adjusted
consolidated
amountquarterlystatements ofincome

Commercial
karaokeKaraokecabin andrestaurantMusic
softwareSubtotal

Other

Total

Sales

15,693

10,2872,481

28,462

2,223

30,685—30,685

Segment income(Operating income)3,562

1,572

176

5,311

201

5,512(741)

4,7708