DAIICHIKOSHO

CO.,

LTD.

Translation
This report is a translation of excerpts from original Japanese Flash Report and for reference purpose only. In case of discrepancy between this reportand original Japanese Flash Report, the latter shall prevail.

FY2020, the year ended March 31, 2021

Flash Report on the Consolidated Results for the Year Ended March 31, 2021
[JGAAP]May 28, 2021

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

DAIICHIKOSHO CO., LTD.
Tokyo Stock Exchange
7458
https://www.dkkaraoke.co.jp/
Tadahiro Hoshi, President
Yasuhisa Nishihara,
Corporate Officer and General Manager, Accounting Department
Phone:+81-3-3280-2151
Date of the Ordinary General Meeting of Shareholders: June 25, 2021
Start Date for Dividend Payment:
June 28, 2021
Scheduled Date to Submit the Securities Report:
June 29, 2021
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, 2021 (From April 1, 2020, to March 31,
2021)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Year ended March 31, 2021
Year ended March 31, 2020

93,316146,297

Operating income%(36.2)
1.7

Millions of yen(2,693)19,058

Ordinary income
%
―
(3.1)

Millions of yen(1,194)
20,133%―(3.6)

Net income attributable to
Basic earnings per shareowners of parent
Millions of yen%
Yen
Year ended March 31, 2021
(18,782)―(338.54)
Year ended March 31, 2020
12,555(19.5)
221.87(Note) Comprehensive income:Year ended March 31, 2021: (17,514) million yen ― %Year ended March 31, 2020: 11,553 million yen (24.2) %Fully diluted net income
per shareYen―
221.56

Ordinary income to total
assets%%Year ended March 31, 2021
(15.7)(0.6)
Year ended March 31, 2020
9.5
10.9
(Reference) Equity in net income of unconsolidated subsidiaries and affiliates:
Year ended March 31, 2021: ― million yen
Year ended March 31, 2020: ― million yen

Operating income to net
sales
%
(2.9)
13.0

Return on equity

1

DAIICHIKOSHO

CO.,

LTD.

(2) Consolidated financial position
Total assets

106,030
136,205

%
55.8
74.0

Net assets per share
Yen
1,912.19
2,386.30

Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

7,755
28,155(9,539)(21,430)

22,174(15,872)

67,68047,232As of March 31, 2021
As of March 31, 2020
(Reference) Shareholders’ equity:
As of March 31, 2021:
As of March 31, 2020:

Net assets

Equity ratio

Millions of yen

Millions of yen

186,795
181,567
104,258 million yen
134,419 million yen(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

2. DividendYear ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(forecast)First Quarter
Second Quarter
Yen
Yen
―
56.00
―
56.00
―

Annual dividend
Third Quarter
Yen――

Year-end
Yen
57.00
57.00

―

57.00

56.00

Aggregate amount ofdividend (total)

Payout ratio (consolidated)
%
50.9
―

Millions of yen

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31,
2022 (forecast)

6,384
6,222

AnnualYen
113.00113.00113.00

Ratio of dividends to net
assets (consolidated)
%
4.8
5.3

undecided

3. Forecast Consolidated Performance for FY2021, the Year Ending March 31, 2022 (From April 1,
2021, to March 31, 2022)(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
Millions of yen
Millions of yen
Millions of yen%%%
Net sales

Six months ending
September 30, 2021
Year ending March 31,
2022 (full year)

49,80016.4(3,700)―(3,300)―113,800

22.0

1,600

―

2,500

―

Net income attributable toowners of parent
Millions of yen%
Six months ending
September 30, 2021
Year ending March 31,
2022 (full year)

Basic earnings per share
Yen

undecided―

undecided

undecided―

undecided

2

DAIICHIKOSHO

CO.,

LTD.

*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting inchanges in scope of consolidation): None
(2) 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 (2) 1): None
3) Changes due to accounting estimation change: None
4) Error correction: None
(3) Number of common shares issued
1) Number of shares issued
As of57,234,200 As of
57,234,200(including treasury shares)
March 31, 2021
shares March 31, 2020
shares2) Number of shares of treasury
As of
2,711,167 As of
904,712sharesMarch 31, 2021
shares March 31, 2020
shares3) Average number of sharesYear ended
55,479,828 Year ended
56,590,367
during the period
March 31, 2021
shares March 31, 2020
shares(Reference) Outline of Nonconsolidated Financial Results
1. Nonconsolidated Performance for the Year Ended March 31, 2021 (From April 1, 2020, to March
31, 2021)(1) Nonconsolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Operating income
Ordinary income
Millions of yen
Millions of yen
Millions of yen%%%
61,450(40.4)(2,463)―(1,299)―103,057
2.9
13,323(6.9)
15,605(4.4)
Net salesYear ended March 31, 2021
Year ended March 31, 2020

Net income
Millions of yen

Year ended March 31, 2021
Year ended March 31, 2020

(14,957)
10,689Fully diluted net income
per shareYen―
188.62

Basic earnings per share%―(14.3)

Yen(269.60)
188.89(2) Nonconsolidated financial position
Total assets
As of March 31, 2021
As of March 31, 2020
(Reference) Shareholders’ equity:
As of March 31, 2021:
As of March 31, 2020:

Net assets

Millions of yen

Millions of yen

137,559
132,050

58,182
84,725Equity ratio
%
42.0
63.9

Net assets per shareYen
1,060.01
1,498.59

57,794 million yen
84,414 million yen* These consolidated financial results are outside the scope of audit by Certified Public Accountants or auditing
corporations.
* 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.

Consolidated Financial Statements and Primary Notes(1) 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
Non-current 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
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

FY2019(As of March 31, 2020)

FY2020(As of March 31, 2021)

47,992
4,758
7,777
5,331
(122)
65,73768,508
3,546
8,946
6,722
(944)
86,78014,866(9,098)
5,768
50,961(41,148)
9,813
54,221(34,102)
20,11840,600
6,583(4,949)1,634
77,935

14,521(9,223)
5,297
49,627(42,922)
6,705
46,570(34,884)
11,68540,681
6,673(5,360)1,313
65,6832,900
7,299
10,199

92
6,140
6,232

3,157
745
6,485
15,2492,127(71)
27,693
115,829
181,567

4,811
760
6,912
14,224
1,521(131)
28,098100,014
186,795

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
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 benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

FY2019(As of March 31, 2020)

FY2020(As of March 31, 2021)

4,929
2,786
7,986
2,117
1,184
3,429
22,4332,591
17,996
10,003
1,736
1,168
3,216
36,712

11,04529

32,085
89

943

899

7,270
3,638
22,92745,361

7,556
3,422
44,05280,765

12,350
4,003
123,891(4,589)135,656

12,3504,114
98,783(10,958)
104,289

(221)
(733)
(26)
(254)
(1,236)310
1,475
136,205
181,567

810
(733)
32
(140)
(31)
388
1,383
106,030
186,795

DAIICHIKOSHO

CO.,

LTD.

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Packing and freight expenses
Remuneration for directors (and other officers)
Provision for retirement benefits for directors (and otherofficers)
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Commission income
Insurance claim income
Cooperative monetary aid received
Compensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Provision of allowance for doubtful accounts
Commission expenses
Cancellation penalty
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidies income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on COVID-19
Total extraordinary losses
Income (loss) before income taxes
Income taxes - current
Income taxes - deferred

6

FY2019(From April 1, 2019, to
March 31, 2020)

FY2020(From April 1, 2020, to
March 31, 2021)

146,297
92,36253,93593,316
67,073
26,242

2,306
2,039
833
1,355

920
870
657
1,296

137

144

13,585
900
589
1,057
792
11,27834,876
19,05812,281
882
567
1,040
792
9,480
28,935(2,693)

31
150
113
366
30
726
1,419

45
126
419
275
570
619
2,057

114
19
－
20
59
130
344
20,133

207
23
64
97
62
104
559
(1,194)

28
39
－
68

530
0
3,781
4,313

179
1,250
96
130
－
1,658
18,543
6,041
(125)

231
12,6060
1
8,883
21,722(18,604)
813(698)

DAIICHIKOSHO

Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of parent

7

CO.,

LTD.

FY2019(From April 1, 2019, to
March 31, 2020)

FY2020(From April 1, 2020, to
March 31, 2021)

5,915
12,62872
12,555

115(18,719)62(18,782)DAIICHIKOSHO

CO.,

LTD.

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

Net income (loss)
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 parent
Comprehensive income attributable to non-controllinginterests

8

FY2019(From April 1, 2019, to
March 31, 2020)

FY2020(From April 1, 2020, to
March 31, 2021)

12,628(18,719)(1,036)(73)
35(1,075)
11,553

1,032
59
113
1,205
(17,514)

11,480(17,577)

72

62

DAIICHIKOSHO

CO.,

LTD.

(3) Consolidated Statements of Changes in Net Assets
FY2019 (from April 1, 2019, to March 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

12,350

Balance at beginning of period

Retainedearnings

4,003

Treasury shares

117,709(2,986)

Total
shareholders’equity131,077

Changes during period
Dividends of surplus
Net income (loss) attributable toowners of parent
Purchase of treasury shares(6,346)(6,346)

12,555

12,555(27)

Disposal of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period(1,719)116(1,719)88－－
12,350

Balance at end of period

6,181
123,891－
4,003(1,603)(4,589)4,578
135,656

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

814

(733)

47

Remeasurementsof defined benefit
plans

(289)

Total
accumulated
othercomprehensive
incomeShare
acquisitionrightsNon-controllinginterests

Total net
assets

(161)

302

1,417

132,636

Changes during period
Dividends of surplus
Net income (loss)
attributable to owners ofparentPurchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period(6,346)
12,555(1,719)88－(1,036)

－

(73)

35

(1,075)7

57(1,009)(1,036)
(221)

－
(733)

(73)
(26)

35
(254)

(1,075)(1,236)

7
310

57
1,475

3,569
136,205

9

DAIICHIKOSHO

CO.,

LTD.

FY2020 (from April 1, 2020, to March 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

12,350

Balance at beginning of period

Retainedearnings

4,003

Treasury shares

123,891(4,589)Total
shareholders’equity135,656

Changes during period(6,325)

Dividends of surplus
Net income (loss) attributable toowners of parent
Purchase of treasury shares(6,325)(18,782)(18,782)(6,368)

Disposal of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period(6,368)
－

111

111
4,114

－
12,350

Balance at end of period

111(25,108)
98,783(6,368)(10,958)(31,366)
104,289

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

(221)

(733)

(26)

Remeasurementsof defined benefit
plans

(254)

Total
accumulated
othercomprehensive
income(1,236)

ShareacquisitionrightsNon-controllinginterests

Total net
assets310

1,475

136,205

Changes during period
Dividends of surplus
Net income (loss)
attributable to owners ofparentPurchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period(6,325)(18,782)(6,368)
－
111
1,032

－

59

113

1,205

77

(91)

1,191

1,032
810

－
(733)

59
32

113
(140)

1,205
(31)

77
388

(91)
1,383

(30,174)
106,030

10DAIICHIKOSHO

CO.,

LTD.

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

FY2019(From April 1, 2019, to
March 31, 2020)
Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Subsidy income
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Transfer of cost of sales on karaoke equipment for rental
Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables
Increase (decrease) in accounts payable – other
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of video licenses
Proceeds from sale of investment securities
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Loan advances
Proceeds from collection of loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

11

FY2020(From April 1, 2020, to
March 31, 2021)

18,543
15,604606
1,250(18,604)
15,057646
12,606

33

(44)

(171)
114
60
56
130
151
－
434
(2,316)
75
1,099
1,467
(816)
1,610
37,935171(115)－(9,835)28,155

(164)
207
(56)
(0)
1
(299)
(3,781)
1,498(1,072)109(51)(2,519)
2,314
889
6,736
164
(198)
3,061
(2,007)
7,755

(61)
44
(14,347)
66(4,224)(2,383)
189
－

(602)
534
(5,797)
1,047(3,139)
(924)
1
(400)

(33)

－

－

28

(547)
470
(910)
240
66
(21,430)

(503)
344
(901)
624
151
(9,539)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2019(From April 1, 2019, to
March 31, 2020)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Dividends paid
Purchase of treasury shares
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

(38)
170
(1,455)(6,500)(6,308)(1,719)(20)(15,872)(60)(9,207)56,43947,23212

FY2020(From April 1, 2020, to
March 31, 2021)
4,842
31,850(1,600)(160)(6,363)(6,368)(24)
22,17456
20,44747,232
67,680DAIICHIKOSHO

CO.,

LTD.

Notes to the Consolidated Financial Statements(Segment Information)
FY2019 (From April 1, 2019, to March 31, 2020)(Millions of yen)
Commercial
karaoke

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Subtotal

Other

Total

Adjusted
amount(Note)

Postedamount to theconsolidated
statements ofincomeSales
Sales to third parties
Intersegment sales
and transfers
Total
Segment income(Operating income)
Other items
Depreciation andamortization
Amortization of
goodwill

65,366

63,7107,651

136,7299,568

146,297－

146,297

－

－

－

－

－

－

－

－

65,366

63,7107,651

136,7299,568

146,297－

146,297

13,742

6,255

174

20,172

1,547

21,720(2,661)

19,058

9,623

3,150

40

12,813604

13,418173

13,591

2

600

－

603

3

606

－

606

Note: The (2,661) 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.

FY2020 (From April 1, 2020, to March 31, 2021)(Millions of yen)
Commercial
karaoke

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Subtotal

Other

Total

Adjusted
amount(Note)

Postedamount to theconsolidated
statements ofincomeSales
Sales to third parties
Intersegment sales
and transfers
Total
Segment income or
Segment loss
(Operating income or
Operating loss)
Other items
Depreciation andamortization
Amortization of
goodwill

51,69525,722

6,548

83,9659,350

93,316－

93,316

－

－

－

－

－

－

－

－

51,69525,722

6,548

83,9659,350

93,316－

93,316

10,935(12,088)

254

(898)

553

(345)

(2,347)(2,693)

8,916

3,109

36

12,062725

12,788168

12,956

32

598

－

631

14

646

－

646

Note: The (2,347) 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.

(Additional Information)
As for the impact of COVID-19 on the impairment of non-current assets and tax-effect accounting, etc., we estimate
future cash flows, recoverability of deferred tax assets and other matters assuming that our business results will
recover to the same level as before the COVID-19 pandemic in the medium term although the negative impact on ourbusiness results will continue throughout the fiscal year ending March 2022 due to restraint from going out, various
requests from the government and other events to prevent the spread of the virus.

13

DAIICHIKOSHO

CO.,

LTD.

(Notes to the Consolidated Statements of Income)Subsidies income
Following the issuance of the declaration of state of emergency due to the spread of COVID-19, employment
adjustment subsidies, which are subsidies provided to cover salaries, etc. for the period during which employees were
furloughed, as well as subsidies, etc. received from the national government, local municipalities, etc. have beenposted to “subsidies income.”
Loss on COVID-19
Following the issuance of the declaration of state of emergency due to the spread of COVID-19, we implemented ameasure to furlough (special leave of absence) all employees in principle. In addition, karaoke cabins and restaurants
operated by the Company as well as those operated by our clients were required to close temporarily and shorten
business hours, following the requests from the national government and local municipalities.
In light of these events, fixed costs of karaoke cabins and restaurants operated by the Company during the period ofclosure and fixed costs in relation to leasing of commercial karaoke equipment, including salaries for the period
during which employees were furloughed, have been posted to “loss on COVID-19.”14