DAIICHIKOSHO

CO.,

LTD.

FY2009, the year ending March 31, 2010

Flash Report on the Consolidated Results for the Interim Period Ended
September 30, 2009
November 9, 2009

Company Name: DAIICHIKOSHO CO., LTD.
Code Number: 7458
(URL http://www.dkkaraoke.co.jp)
Stock Exchange Listing: JASDAQ
Representative: Tadahiko Hoshi, Chairman and CEO
Contact: Shigeki Kobayashi, General Manager, Accounting Department, Administration Headquarters
Phone: (03) 3280-2151
Scheduled Date to Submit the Quarterly Securities Report: November 13, 2009
Start Date for Dividend Payment: December 7, 2009
(Amounts below one million yen are truncated.)
1. Consolidated Performance for the Interim Period Ended September 2009 (from April 1, 2009, to September 30,2009)(1) Consolidated operating results (cumulative) (Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Operating income
Ordinary income¥ Million%¥ Million%¥ Million%
Interim Period ended
62,464
0.9
8,502
8.1
9,054
9.1
September 2009
Interim Period ended
61,902―7,863―
8,300―
September 2008
Net income¥ Million
Interim Period ended
September 2009
Interim Period ended
September 2008

Net income per share

Fully diluted net income
per share%

¥

¥

5,683

12.4

84.36

―

5,058

―

73.33

―

(2) Consolidated financial position
Total assets

Net assets

Equity ratio¥ Million¥ Million
Interim Period ended
124,985
81,249September 2009
Year ended March 2009
124,295
79,331(Reference) Shareholders’ equity
Interim Period ended September 2009: ¥80,510 million
Year ended March 2009: ¥78,640 million

Net assets pershare%¥64.4

1,207.63

63.3

1,165.60

2. DividendYear ended March 2009
Year ending March 2010
Year ending March 2010
(forecast)First Quarter
Yen――Dividend per share
Second Quarter
Third Quarter
Yen
Yen
0.00
―
20.00

Year-end
Yen
45.00

Total
Yen
45.00

―

20.00

40.00

1

DAIICHIKOSHO

CO.,

LTD.

Note: Revision of dividend forecast during the period under review: Yes
3. Forecast Consolidated Performance for FY2009, the Year Ending March 31, 2010 (from April 1, 2009, to March31, 2010)(Percentage figures indicate increase/decrease from a year earlier)
Net sales
Operating income
Ordinary income¥ Million%¥ Million%¥ Million%
Year ending March 31,125,000(0.1)
16,8000.8
17,6000.8
2010 (full year)
Net income¥ Million
10,300Net income per share%(5.4)¥Year ending March 31,154.50
2010 (full year)
Note: Revision of forecast consolidated performance during the period under review: Yes
4. Other(1) Change in important subsidiaries during the period under review (Change in specific subsidiaries causing achange in the scope of consolidation): No(2) Adoption of simplified accounting methods and special accounting methods for quarterly consolidated financial
statements: Yes(3) Change in accounting principals, procedure and presentation methods for preparation of quarterly consolidated
financial statements (Items set forth in “Changes in important matters in preparing the quarterly consolidated
financial statements”)
1) Changes following a revision of accounting standards: No2) Other changes: No(4) Number of common shares issued
1) Number of shares issued (including treasury stock):
Interim period ended September 2009: 67,470,596 sharesYear ended March 2009: 69,600,596 shares
2) Number of shares of treasury stock:
Interim period ended September 2009: 802,586 sharesYear ended March 2009: 2,132,586 shares
3) Average number of shares during the period:
Interim period ended September 2009: 67,372,711 sharesInterim period ended September 2008: 68,980,104 shares* Explanation for the appropriate use of performance forecasts and other special notes:
1. The Company has revised its projections in the “Forecast Consolidated Performance” above for the year ending
March 31, 2010, which were released on May 15, 2009.
2. The projections shown in this document are estimated based on information available as of the issue date of thisreport, and therefore the actual results for future periods could differ greatly from these forecast figures due tovarious unknown factors.

2

DAIICHIKOSHO

CO.,

LTD.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)

Current interim period(As of September 30, 2009)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities, netLand
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

3FY2008(As of March 31, 2009)
Condensed

29,139
9,033
4,523
6,391
(431)
48,65730,003
8,925
4,778
5,062
(446)
48,321

7,452
14,117
18,3497,947
47,867
7,114

7,537
13,571
18,463
8,104
47,677
7,026

13,2809,000(934)
21,34676,328
124,985

13,332
8,916(979)
21,26975,973
124,295

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Current interim period(As of September 30, 2009)
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
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Revaluation reserve for land
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Liabilities and net assets

4FY2008(As of March 31, 2009)
Condensed

4,603
8,188
3,907
1,561
9,513
27,775

4,214
11,018
1,397
1,167
10,19027,988

9,364
2,930
1,905
308
1,452
15,96043,736

10,178
2,891
2,105
335
1,464
16,97544,964

12,35018,26951,855(987)
81,48812,35020,362
49,207(2,094)79,825

(115)

(317)

(777)
(84)
(977)
73981,249
124,985(777)(90)(1,184)690
79,331
124,295

DAIICHIKOSHO

CO.,

LTD.

(2) Quarterly Consolidated Statements of Income
Current interim period(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Cooperative monetary aid received
Amortization of negative goodwill
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
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
Indemnity of cancellation of leases
Reversal of loss on cancellation of a new business
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income

5Previous interim period(From April 1, 2008, toSeptember 30, 2008)

Current interim period(From April 1, 2009, toSeptember 30, 2009)

61,90235,61926,283
18,4197,863

62,46436,057
26,406
17,904
8,502

127
38
180
27
427
802

92
37
234
27
453
845

176
100
89
366
8,300

139
58
95
293
9,054

16
7
128
119
148－
420

90
22
248－
11291

216－
6305
528
8,192
3,087
(45)
3,041
92
5,058

202
300
－－
503
8,843
3,865(757)
3,107
51
5,683

DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

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 bonuses
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividends income
Interest expenses
Loss (gain) on disposal of noncurrent assets
Loss (gain) on valuation of investment securities
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
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
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) investment activities
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
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

6

Previous interim period(From April 1, 2008, toSeptember 30, 2008)

Current interim period(From April 1, 2009, toSeptember 30, 2009)

8,192
6,583
－
(27)
(213)
405

8,843
6,548
300
(27)
(60)
394

79

(200)

(166)
176
199
305
94
(584)
362
(20)
506
15,891
165(176)(3,644)
12,236

(130)
139
193－
(95)
295
217
386
(1,155)
15,649131(137)(1,445)
14,198(211)
162(5,782)113(1,896)
(593)
136
(165)
234
(993)
403
(35)
(8,630)(59)
110(5,133)22(1,819)
(534)
0(93)
212
(311)
234
11(7,360)

394
1,840
(5,311)(1,730)(972)(4)(5,783)(134)(2,312)28,30025,988(45)
2,560(6,158)(3,026)(984)(6)(7,661)
11(812)
29,584
28,771DAIICHIKOSHO

CO.,

LTD.

(Segment Information)
a. Business segments
Previous interim period (From April 1, 2008, to September 30, 2008)
Item(Millions of yen)
Eliminations Consolidated
and corporate

Commercialkaraoke

Karaokecabin andrestaurantMusic
software30,578129

19,518
―

6,499
85

5,306
416

61,902
632

―
(632)

61,902―30,707
5,242

19,518
2,384

6,585
1,011

5,723
815

62,534
9,453(632)(1,589)61,902
7,863

Sales(1) Sales to third parties(2) Intersegment sales
and transfers
Total
Operating income

Other

Total

Current interim period (From April 1, 2009, to September 30, 2009)
Item

Karaokecabin andrestaurantMusic
software30,452
148

19,815
―

6,935
96

5,260
429

62,464
674

―
(674)

62,464―30,601
5,873

19,815
2,520

7,031
955

5,689
759

63,138
10,108(674)(1,605)62,464
8,502

Sales(1) Sales to third parties(2) Intersegment sales
and transfers
Total
Operating income

OtherTotal(Millions of yen)
Eliminations Consolidated
and corporate

Commercial
karaokeb. Geographical segments
Previous interim period (From April 1, 2008, to September 30, 2008) andCurrent interim period (From April 1, 2009, to September 30, 2009)
As sales in Japan account for more than 90% of the sum of sales in each region of the respective geographicalsegments, the segment information by geographical region is omitted.
c. Overseas sales
Previous interim period (From April 1, 2008, to September 30, 2008) andCurrent interim period (From April 1, 2009, to September 30, 2009)
As sales overseas account for less than 10% of consolidated net sales, overseas sales-related information isomitted.

7