Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013
(Japanese GAAP)
February 28, 2013
Listed on: Tokyo Stock Exchange
Name of Listed Company: IKK, Inc.
Securities code: 2198
URL: http://www.ikk-grp.jp/
Representative:
Katsushi Kaneko, President and Representative Director
Contact:
Akira Toda, Managing Director, Division COO, Management Div.
Scheduled date of filing quarterly financial report:
March 14, 2013
Scheduled date of start dividends distribution:—
Supplementary quarterly materials prepared:
Yes
Quarterly results information meeting held:
No

TEL +81-92-937-7030(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the first quarter of the FY ending October 31, 2013 (Nov. 1, 2012-Jan. 31, 2013)(1) Consolidated operating results (cumulative)(Percentage figures show changes from the same period in the previous year.)

Net Sales
Millions of yen
3,265
3,028

1Q of FY ending Oct. 31, 2013
1Q of FY ended Oct. 31, 2012

%
7.8
11.9

Operating Income
Millions of yen
%
411
16.6
352 147.7

Ordinary Income
Millions of yen
%
401
28.5
312 144.6

Net Income
Millions of yen%
231 153.2
91 148.0

Note: Comprehensive income: 1Q of FY ending Oct. 31, 2013: 231 million yen (153.2%); 1Q of FY ended Oct. 31, 2012: 91 million yen (148.0%)

Net Income per Share

Diluted Net Income per Share
Yen
32.55
12.60

Yen
32.70
12.64

1Q of FY ending Oct. 31, 2013
1Q of FY ended Oct. 31, 2012

Note: On April 1, 2012 common stock was split according to a ratio of 1:2. However, net income/diluted net income per share was calculated assuming stock
division at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total Assets
Millions of yen
11,577
12,905

1Q of FY ending Oct. 31, 2013
FY ended Oct. 31, 2012

Net Assets
Millions of yen
5,980
5,840

Equity Ratio
%
51.7
45.3

Reference: Equity capital: 1Q of FY ending Oct. 31, 2013: 5,980 million yen; FY ended Oct. 31, 2012: 5,840 million yen

2. Dividends
1Q EndYen――

FY ended Oct. 31, 2012
FY ending Oct. 31, 2013
FY ending Oct. 31, 2013 (forecast)

Yen
0.00

Yearly Dividends
3Q End
Yen
―

0.00

―

2Q EndFY EndAnnual

Yen
15.00

Yen
15.00

20.00

20.00

Note: Revisions to the latest projected dividends: Yes
Breakdown of the FY ending October 31, 2013 dividends (forecast): Regular dividends: 10.00 yen; Commemorative dividends: 10.00 yen
In a board meeting held on Feb.12, 2013, the board of directors resolved to split common stock as of Apr. 1, 2013 according to a ratio of 1:2. Included figures forOct. 31, 2013 end-of-year dividends (forecast) were calculated taking into account the effects of this split. For details, please see “Explanation of appropriate use offinancial forecasts, other special remarks.”

3. Consolidated financial forecast for the FY ending October 31, 2013 (Nov. 1, 2012-Oct. 31, 2013)(Percentage figures show changes from the previous term (full year) or previous corresponding quarter.)Net Sales
2Q (cumulative)
Full year

Millions of yen
6,585
13,765

Operating Income
%
2.9
1.3

Millions of yen
860
1,925

%
2.2
0.2

Ordinary Income
Millions of yen
835
1,880

%
5.7
1.9

Net Income
Millions of yen
480
1,085

%
41.4
16.7

Net Income per
ShareMillions of yen
33.80
76.25

Note: Revisions to the latest projected financial results: No
In a board meeting held on Feb. 12, 2013, the board of directors resolved to split common stock as of Apr. 1, 2013 according to a ratio of 1:2. Included figures fornet income per share for Oct. 31, 2013 end-of-year consolidated financial forecast were calculated taking into account the effects of this split.

*Notes(1) Significant changes to subsidiaries during the consolidated quarter (transfer of specific subsidiaries accompanying changes inscope of consolidation): Yes
Newly added: 1 company, Company name: I Care, Inc.
Excluded: ― Company name:Note: For details, see “2. Summary (Notes) Information: (1) Significant Changes to Subsidiaries during the Period” (attachments, page 3).

(2) Application of specific accounting policies for preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, accounting estimates and restatement
1) Changes in accounting policies due to revision of accounting standards, etc.:
2) Changes in accounting polices other than 1):
3) Changes in accounting estimates:
4) Restatement:

Yes
No
Yes
No

Note: Corresponds to article 10-5 of “Regulations Concerning Terminology, Forms and Preparation Methods of Consolidated Financial
Statements.” For details, see “2. Summary (Notes) Information: (3) Changes in Accounting Policies, Accounting Estimates and Restatement”(attachments, page 3).

(4) Number of shares issued (common
stock):
1) Number of shares issued as of endof term (including treasury stock)2) Number of treasury stock as ofend of term3) Average number of shares overperiod (quarterly cumulative)

1Q of FY ending
Oct. 31, 2013

7,437,000 shares

FY ended Oct. 31,
2012

7,437,000 shares

1Q of FY ending
Oct. 31, 2013

333,036 shares

FY ended Oct. 31,
2012

349,836 shares

1Q of FY ending
Oct. 31, 2013

7,095,313 shares

1Q of FY ended
Oct. 31, 2012

7,246,365 shares

Note: Common stock was split on April 1, 2012 according to a ratio of 2:1. However, average number of shares over period for the 1Q of
FY ended October 31, 2012 was calculated assuming stock division at the beginning of the previous consolidated fiscal year. Furthermore,
figures for treasury stock include 332,600 shares held in employee stock holdings trust at the end of this quarterly consolidated period.

* Implementation status of quarterly review procedures:
Quarterly review procedures based on the Financial Instruments and Exchange Act do not apply to this quarterly statement, and quarterly review
of consolidated financial statements was not completed at the time of disclosure.

* Explanation of appropriate use of financial forecasts, other special remarks:(Cautionary statement with respect to forward-looking statements, etc.)
Forecasts and other forward-looking statements included in this document are based on currently available information and assumptions deemed
rational, and do not serve as a guarantee of results on the part of the company. Actual results may vary substantially due to a variety of reasons.
For notes and other cautionary statements related to assumptions behind and use of forecasted results, please see “1. Qualitative Information on
Quarterly Financial Results: (3) Qualitative information on Consolidated Financial Forecasts” (attachments, page 2).
(Concerning stock split)
In a board meeting held on February 12, 2013, the board of directors resolved to split common stock as of April 1, 2013 according to a ratio of 1:2.
Taking into account the effects of this split, dividends assuming split at the beginning of previous consolidated fiscal year are as follows:
Record date: FY ended Oct. 31, 2012

2Q end0.00 yen

FY end7.50 yen

Yearly7.50 yen

Record date: FY ending Oct. 31, 2013

2Q end(forecast)

0.00 yen

FY end(forecast)

20.00 yen

Yearly(forecast)

20.00 yen

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

Attachments (TOC)

1. Qualitative Information on Quarterly Financial Results ··············································································· 2(1) Qualitative Information on Consolidated Financial Results ···································································· 2(2) Qualitative Information on Consolidated Financial Position ·································································· 2(3) Qualitative Information on Consolidated Financial Forecasts································································· 2
2. Summary (Notes) Information ···················································································································· 3(1) Significant Changes to Subsidiaries during the Period ··········································································· 3(2) Application of Specific Accounting for Preparation of Quarterly Consolidated Financial Statements ······ 3(3) Changes in Accounting Policies, Accounting Estimates and Restatement ··············································· 3
3. Quarterly Consolidated Financial Statements ······························································································ 4(1) Quarterly Consolidated Balance Sheets ································································································· 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ··········································· 6(Quarterly Consolidated Statements of Income) ····················································································· 6(Quarterly Consolidated Statements of Comprehensive Income) ···························································· 7(3) Notes on Premise of Going Concern······································································································ 8(4) Notes on Significant Fluctuation in Amounts of Shareholders’ Equity···················································· 8(5) Segment Information, etc. ····················································································································· 8(6) Material Subsequent Events ·················································································································· 8―1―IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

1. Qualitative Information on Quarterly Financial Results(1) Qualitative Information on Consolidated Financial Results
Against slackening and other negative trends in the world economy, the Japanese economy in the first quarter ofthe current consolidated fiscal year (November 1, 2012-January 31, 2013) showed only weak movement. Signs ofbottoming out in certain areas, however, were also apparent, with changes such as correction of the overly high yen
pointing towards improvement in the management environment for Japanese companies.
In the wedding industry, the number of weddings in 2012 remained largely unchanged over the previous year at
660,000 (Ministry of Health, Labor and Welfare, “2012 Annual Estimate of Vital Statistics”), and demand forguesthouse-style wedding services has stabilized. On the other hand, competition within the industry remains fierce,with ceremonial hall and hotel renovations, intensification of price competition, diversification of customer needs
and so on.
In response to these conditions, the IKK Group (the Group) has adopted a management philosophy, “To touch
our customers’ hearts!” In order to offer more touching wedding services we have been working to meet
diversifying customer needs, expand sales and increase our earnings power through in-house and external staff
training geared towards improving customer service, practical use of business databases, investments in renovationand so on.
As a result of these efforts, sales in the first quarter of the current consolidated period reached 3,265 million yen(a 7.8% increase over the same quarter of the previous year), operating income reached 411 million yen (a 16.6%
increase), ordinary income reached 401 million yen (a 28.5% increase), and quarterly net income reached 231
million yen (a 153.2% increase).
Results by segment are as follows:
1) Wedding Operations
Together with full operation of “La La Chance Taiyo no Oka” (Kanazawa branch), which increased its
number of venues in the previous consolidated fiscal year, conditions at existing branches turned favorable
thanks to increased orders due to practical use of business databases, the effect of renovations and so on,leading to sales of 3,202 million yen (an 8.8% increase over the same quarter of the previous year). Also,
efforts to restrain costs also led to an operating income of 415 million yen (a 20.9% increase).
2) Funeral Operations
Sales were 63 million yen (a 25.3% decrease over the same quarter of the previous fiscal year), with a 2
million yen operating loss (operating income for the same quarter of the previous fiscal year was 8 million
yen).
3) Nursing-care Operations
In the first quarter of the current consolidated period, consolidated subsidiary offering nursing-careservices was newly established. As preparations for launch are still underway, sales have not been calculated.
Operating loss was 2 million yen.
(2) Qualitative Information on Consolidated Financial Position
Compared to the end of the previous consolidated fiscal year, total assets decreased by 1,328 million yen, at
11,577 million yen. The main causes were a 1,071 million yen decrease in cash and deposits, a 107 million yen
decrease in accounts receivable—trade and a 118 million yen decrease in property, plant and equipment.
Compared to the end of the previous consolidated fiscal year, liabilities decreased by 1,468 million yen, at 5,596
million yen. The main causes were a 337 million yen decrease in accounts payable—trade, a 486 million yen
decrease in income taxes payable and a 284 million yen decrease in long-term loans payable.
Compared to the end of the previous consolidated fiscal year, net assets increased by 140 million yen, reaching
5,980 million yen. The main causes were an increase due to net income of 231 million yen and a decrease due todividends from surplus of 106 million yen. As a result, compared to the end of the previous fiscal year, equity ratiorose by 6.4 points, to 51.7%.
(3) Qualitative Information on Consolidated Financial Forecasts
The 2Q (cumulative) and full-year consolidated forecasts published on December 10, 2012 remain unchanged.

―2―

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

2. Summary (Notes) Information(1) Significant Changes to Subsidiaries during the Period
In the first quarter of the current consolidated period, newly established I Care, Inc. was added into the scope of
consolidation.
(2) Application of Specific Accounting for Preparation of Quarterly Consolidated Financial Statements
No related information.
(3) Changes in Accounting Policies, Accounting Estimates and Restatement(Changes in accounting polices which are difficult to distinguish from changes in accounting estimates)
As of the first quarter of the current consolidated period, our company and consolidated subsidiaries adopted thedepreciation method pursuant to revisions to the Corporation Tax Law for property, plant and equipment acquiredon or after November 1, 2012.
Effects on profit and loss due to this change were insignificant.

―3―

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous Consolidated FY(Oct. 31, 2012)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Current portion of bonds
Current portion of long-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
Provision for point card certificates
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities―4―

Current Consolidated FY, 1Q(Jan. 31, 2013)

2,630,545
209,691
91,552
66,071
221,579(2,140)3,217,300

1,558,954
102,095
92,26867,250179,547(957)
1,999,159

6,795,727
1,643,983
302,814
8,742,525
92,669852,600
9,687,796
12,905,097

6,656,859
1,643,983
323,240
8,624,084
89,342
864,5099,577,936
11,577,095

632,91180,0001,026,125
608,149
173,487
1,093,104
3,613,777

295,01480,000917,181
121,568
91,430796,537
2,301,731

2,605,378
78,015
233,695
51,480276,117
206,382
3,451,068
7,064,846

2,430,040
79,536
247,468
53,140277,470
207,138
3,294,793
5,596,524

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

(Thousands of yen)Previous Consolidated FY(Oct. 31, 2012)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Total net assets
Total liabilities and net assets

342,342354,9095,309,674(166,675)
5,840,250
5,840,250
12,905,097―5―Current Consolidated FY, 1Q(Jan. 31, 2013)

342,342
361,5425,435,357(158,671)
5,980,570
5,980,570
11,577,095

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated 1Q)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Commission fee
Other
Total non-operating income
Non-operating expenses
Interest expenses
Going public expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Net income

1Q of Previous
Consolidated Period(Nov. 1, 2011-Jan. 31, 2012)
3,028,126
1,379,021
1,649,104
1,296,496
352,607

1Q of Current
Consolidated Period(Nov. 1, 2012-Jan. 31, 2013)
3,265,554
1,460,118
1,805,436
1,394,275
411,161

1,655
1,245
2,901

1,778
915
2,694

12,10622,187
8,515
42,810312,698

9,357
－
2,546
11,903401,951

3,221
3,221
309,477
112,896
104,957
217,853
91,623
91,623731
731
401,220
116,91352,317
169,230
231,990
231,990―6―

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated 1Q)(Thousands of yen)

Income before minority interests
Other comprehensive income
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of the parent
Comprehensive income attributable tominority interests

1Q of Previous
Consolidated Period(Nov. 1, 2011-Jan. 31, 2012)
91,623

1Q of Current
Consolidated Period(Nov. 1, 2012-Jan. 31, 2013)
231,990－
91,623－
231,990

91,623

231,990－－―7―

IKK, Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2013

(3) Notes on Premise of Going Concern
No related information.
(4) Notes on Significant Fluctuation in Amounts of Shareholders’ Equity
No related information.
(5) Segment Information, etc.
(Segment Information)
1Q of Previous Consolidated Period (Nov. 1, 2011-Jan. 31, 2012)
The Group’s reporting segments included wedding and funeral operations. However, as funeral operations
constitute a very small proportion of total business segments its importance in terms of disclosure is limited.
Accordingly, listing of segment information is abridged.
1Q of Current Consolidated Period (Nov. 1, 2012-Jan. 31, 2013)
The Group’s reporting segments include Wedding, Funeral and Nursing-care Operations. However, as Funeraland Nursing-care Operations constitute a very small proportion of total business segments their importance in termsof disclosure is limited. Accordingly, listing of segment information is abridged.
(6) Material Subsequent Events(Stock Split)
In a board meeting held on February 12, 2013, the board of directors resolved to split stock.
1. Purpose of split
The purpose of the split is to increase liquidity of stock while further expanding our investor base.
2. Ratio of split
Using a record date of March 31, 2013, all stocks listed in the stock registry at the close of the same date as wellas common stock held by shareholders will be split according to a ratio of 1:2.
3. Increase in stock numbers due to split
Aggregate issued before split:
7,437,000 shares
Increase due to split:
7,437,000 shares
Aggregate issued after split:
14,874,000 shares
Total number of authorized after split:
48,000,000 shares
4. Timing
Effective date: April 1, 2013
5. Effect per share
Information per share assuming split occurred at the beginning of the previous consolidated fiscal year is asfollows:
1Q of Previous Consolidated Period
1Q of Current Consolidated Period(Nov. 1, 2011-Jan. 31, 2012)(Nov. 1, 2012-Jan. 31, 2013)
Net income per share
Diluted net income per share

6.32 yen
6.30 yen―8―

Net income per share
Diluted net income per share

16.35 yen
16.28 yen