Financial Results for the Fiscal Year Ended March 31, 2019
[Japanese GAAP] (Consolidated)
Name of Listed Company:
UCHIYAMA HOLDINGS INC.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Fumiharu Uchiyama, President and Representative Director
Contact Point: Takehiro Yamamoto, Senior Managing Director and Manager of Business Planning Office
Phone: (093) 551-0002
Scheduled Date of Annual Meeting of Shareholders:June 25, 2019
Scheduled Date of Dividend Payment Start:
June 26, 2019
Scheduled Date of Financial Statements Filing:
June 26, 2019
Supplementary Materials for Financial Results: Yes
Investor Conference for Financial Results: Yes (For institutional investors and security analysts)

May 10, 2019
Stock Listing: TSE(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen

FY 2019
FY 2018(Note) Comprehensive income

Millions of yen%

27,2093.1
1,025
26,402
4.3
1,191
FY 2019: ¥1,026 million (29.0%)%(13.9)
53.3

Net income
per share

Diluted net
income per share
Yen

Millions of yen%

Millions of yen

%

1,102
808

36.3
－

1,326
(1.9)
1,352
34.1
FY 2018: ¥795 million (- %)Return on equity

Ordinary income
to total assets

%

%

%

7.0
4.4
5.4
4.5
FY 2018: ¥ - million

3.8
4.5

Yen

FY 2019
57.02－
FY 2018
41.83－(Reference) Equity in earnings of affiliated companies: FY 2019: ¥ - million

Operating income
to net sales(Note) The change in profit attributable to owners of parent and comprehensive income in the fiscal year ended March 31, 2018 is greater than
1,000%. Therefore, it is stated as "-."

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

FY 2019
30,072
16,22954.0
839.5829,986
15,39751.3
796.49FY 2018(Reference) Equity capital:
FY 2019: ¥16,229 million
FY 2018: ¥15,397 million
Note: The partial revision to the “Accounting Standards for Tax Effect Accounting” (Corporate Accounting Standards No. 28 of
February 16, 2018) will apply from the beginning of the current consolidated fiscal year. Therefore, the figures for the
fiscal year ended March 31, 2018 are those after this standard has been applied retroactively.
(3) Consolidated Cash Flows
Cash flow fromoperating activities
FY 2019
FY 2018

Cash flow frominvesting activities

Cash flow fromfinancing activities

Cash and cash
equivalents
at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

(317)
2,070

1,366
(321)

(1,227)(1,686)

8,856
9,034

2. Dividends
End ofthe 1QFY 2018
FY 2019
FY 2020 (forecast)

Dividends per share
End of
End ofYearthe 2Q
the 3Q
end

Yen

Yen

Yen

―
―
―

5.00
5.00
5.00

―
―
―

AnnualTotal
dividends(annual)Yen

YenMillions of
Yen

5.00
5.00
5.00

10.00
10.00
10.00

193
193

Dividends
Dividends on
payout ratio
net assets(consolidated) (consolidated)
%

%

23.9
17.5
15.5

1.3
1.2

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020 (April 1, 2019 - March 31, 2020)(% of change from previous year for full year, same quarter of the previous year for 2Q)

Net sales
Millions of yen

2Q(cumulative)
Full year

Operating income%

Millions of yen

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen

Net income
per share%Yen

16,426

22.4

1,073

116.1

1,069

73.7

702

55.3

36.34

30,873

13.5

1,909

86.1

1,899

43.2

1,244

12.9

64.38

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) Changes in accounting policies, accounting estimates and restatements:
1) Changes in accounting policies due to revisions of accounting standards:
2) Changes in accounting policies due to reasons other than above 1):3) Changes in accounting estimates:
4) Restatements:(3) Number of outstanding shares (common stock)1) Number of outstanding shares (including treasury
stock) at end of term2) Number of treasury stock at end of term3) Average number of shares

None
None
None
None

FY 2019

21,618,800 shares

FY 2018

21,618,800 shares

FY 2019

2,287,777 shares

FY 2018

2,287,776 shares

FY 2019

19,331,023 shares

FY 2018

19,331,024 shares

Note: The shares in the Company possessed by Trust & Custody Services Bank, Ltd. (Trust E) as a trust asset of the “stock
benefit trust (J-ESOP)” (fiscal year ended March 31, 2019: 72,150 shares/fiscal year ended March 31, 2018: 0 shares) are
included in the number of treasury stock at end of term. In addition, the shares in the Company possessed by Trust &Custody Services Bank, Ltd. (Trust E) are included in the treasury stocks to be deducted in the calculation of the average
number of shares (fiscal year ended March 31, 2019: 23,523 shares/fiscal year ended March 31, 2018: 0 shares).
(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(% of change from previous year)(1) Non-Consolidated Financial Results
Net sales
Operating income
Ordinary income
Net income
FY 2019
FY 2018

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

992
989

0.3
12.2

439
464

(5.3)
29.5

507
536

(5.5)
26.2

506
526

(4.0)
25.9

Net income
per share
FY 2019
FY 2018

Diluted net income
per share
Yen

Yen

26.18
27.26

－
－

(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2019
FY 2018(Reference) Equity capital:

Equity ratio

Millions of yen

6,337
5,039
FY 2019: ¥5,166 million

Net assets per share
%

Yen

5,166
81.5
4,853
96.3
FY 2018: ¥4,853 million

267.24251.06

2. Forecasts of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)(% of change from previous year for full year, same quarter of the previous year for 2Q)

Net sales
Millions of yen

2Q (cumulative)
Full year

534
1,056

Ordinary income
%

7.7
6.5

Millions of yen

263
512

Net income pershare

Net income
%

0.3
1.0

Millions of yen

258
503

%

Yen

(1.0)
(0.5)

13.39
26.05

*Summary of financial results is out of scope of quarterly review by certified public accountant or audit corporation.
*Statement regarding the proper use of financial forecasts and other remarks
Descriptions regarding the future, including the financial projections contained in this report, are based on certainassumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable. Actual
financial results may significantly vary due to various factors. For assumptions used in forecasting financial results andprecautions in using the financial projections, please refer to Appendix on Page 5, “1. Business Performance Overview(4) Future Outlook.” The Company is planning to host a financial settlement reporting meeting for institutional investors and analysts on May
31, 2019. The contents (recorded sound) will be posted on the Company’s Web page immediately after the meeting.

○Table of contents of the appendix

1. Business Performance Overview .................................................................................................................................................. 2(1) Business Performance Overview for Current Term ................................................................................................................ 2(2) Financial Standing Overview for Current Term ...................................................................................................................... 3(3) Cash Flow Overview for Current Term ................................................................................................................................... 4(4) Future Outlook ........................................................................................................................................................................ 5
2. Basic Principles of Selecting Accounting Standards .................................................................................................................... 5
3. Consolidated Financial Statements and Major Notes ................................................................................................................... 6(1) Consolidated Balance Sheets .................................................................................................................................................. 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 8(3) Consolidated Statements of Changes in Net Assets ...............................................................................................................10(4) Consolidated Statements of Cash Flows ................................................................................................................................12(5) Notes to Consolidated Financial Statements ..........................................................................................................................14(Notes regarding premise of a going concern) .........................................................................................................................14(Change in presentation method) .............................................................................................................................................14(Additional information) .........................................................................................................................................................15(Segment information, etc.) .....................................................................................................................................................15(Per share information) ............................................................................................................................................................20(Significant subsequent event).................................................................................................................................................20

1

1. Business Performance Overview(1) Business Performance Overview for Current Term
In the current consolidated fiscal year, the Japanese economy gradually recovered overall due to an improvement incorporate earnings and the employment environment, but there are also concerns, including the prolonged trade friction
between the U.S. and China and the Brexit problem. Therefore, there continues to be uncertainty over the future.
Amid this business environment, our corporate group has carried out sales activities, etc. actively based on our businessstrategies in each segment. In addition, we made efforts to improve the added values of our services, by planning andimplementing various measures for boosting synergetic effects among Nursing Care, Karaoke, and Restaurant Businesses.
As for expenditures, we streamlined our business administration by reducing costs, to stabilize our business performance.
As a result, sales of the current consolidated fiscal year were 27,209,311 thousand yen (up 3.1% Year-on-Year (YoY)),
operating income was 1,025,942 thousand yen (down 13.9% YoY), and ordinary income was 1,326,222 thousand yen (down
1.9% YoY). An extraordinary income of 670,292 thousand yen was posted due to gain on sales of noncurrent assets
accompanying sale and leaseback transactions of four paid nursing homes with nursing care services. On the other hand, as aresult of examining future collectability of noncurrent assets in the Nursing Care Business, Karaoke Business, Restaurant
Business and Hotel Business, we decided to impair the book value up to the recoverable value and an impairment loss of
334,496 thousand yen was posted. As a result, profit attributable to owners of parent increased by 293,579 thousand yen to
1,102,209 thousand yen (up 36.3% YoY).
The results of each segment were as follows.
a. Nursing Care Business
For the Nursing Care Business segment, we aimed at aggressive expansion, and established five paid nursing homes withnursing care services, one group home, one new business office for short-stays, and three new day-care facilities in a projectfor supporting disabled children in commuting to facilities after school, etc. As a result of these efforts we now have 179
offices in 102 locations as of the end of the current consolidated fiscal year.
We further promoted industry-academia-government collaboration in the current consolidated fiscal year.
We strived to train in-house qualified oral care certified persons in cooperation with Kyushu Dental University. We now
have 754 such persons. Improving oral care promotes the prevention of diseases such as aspiration pneumonia.
We conducted nursing care staff behavior analysis verification tests using IoT technology in cooperation with Kyushu
Institute of Technology. We would also like to utilize AI to contribute to the reform in the work styles of personnel based on
the results of these experiments.
We are developing a resident information collection tool called a life map under the theme of making life worthwhile incooperation with Kyushu University. We are working to utilize that to further enrich lives after entering facilities.
In addition, at existing facilities, we aimed to stabilize occupancy ratio by promoting the cementing of cooperation withnearby hospitals and home care support offices by visiting them. Consequently, the average occupancy ratio of existing
facilities in the current consolidated fiscal year was 95.7% (average in the previous term: 94.6%). As a result, sales were
17,894,145 thousand yen (up 10.9% YoY) and segment income was 1,238,951 thousand yen (up 5.3% YoY).
b. Karaoke Business
For the Karaoke Business segment, we strived to increase the unit price by enhancing our food menu and lunch menu. At
the same time, we looked to increase repeat customers by strengthening acquisition of SNS members and by distributing
coupons. However, although we opened two new stores, we also closed three stores in the current consolidated fiscal year.
Therefore, we have 91 stores at the end of the current consolidated fiscal year. That is one store less than the previous fiscal
year. As a result, sales were 7,302,477 thousand yen (down 4.3% YoY) and segment income was 880,618 thousand yen (down
2.6% YoY).

2

c. Restaurant Business
For the Restaurant Business segment, one existing store changed its business type and four stores were closed. Accordingly,
the number of stores at the end of the current consolidated fiscal year is 17 inside Japan, and 2 outside Japan. As for existing
restaurants, customers were decreasing, and so we strived to increase them with a limited offer, and made effort to increase
the average amount from one customer by incorporating an all-you-can-eat plan into our banquet course to acquire banquet
demand. However, due to decrease in customers associated with closing of restaurants, sales were 1,586,380 thousand yen(down 9.7% YoY) and segment income was 51,848 thousand yen (up 274.7% YoY).
d. Real Estate Business
For the Real Estate Business segment, our corporate group’s core business activities are sales/purchase of real estate
properties for sale and intermediary work for rental properties. Revenue from the disposal of real estate for sale was around
420,000 thousand yen in the previous fiscal year. However, this was around 15,000 thousand yen in this fiscal year, so sales
were 197,478 thousand yen (down 68.3% YoY) and segment income was 20,046 thousand yen (down 85.7% YoY).
e. Other businesses
In the other businesses segment, the Company made efforts to increase guests, secure bookings for parties, promote day
trips for bathing, etc. in the Hotel Business. As a result, sales were 228,830 thousand yen (down 10.1% YoY) and segment
loss was 53,660 thousand yen (segment loss was 32,250 thousand yen during the same term last year).

(2) Financial Standing Overview for Current Term
Total assets at the end of the current consolidated fiscal year were 30,072,034 thousand yen, up 85,726 thousand yen
from the end of the previous consolidated fiscal year.
Current assets were 15,549,530 thousand yen, up 2,340,620 thousand yen from the end of the previous consolidated fiscal
year. The major factors for the change were the increase of 2,266,055 thousand yen in real estate for sale and 170,756
thousand yen in notes and accounts receivable-trade, and the decrease of 155,357 thousand yen in cash and deposits.
Noncurrent assets were 14,522,504 thousand yen, down 2,254,893 thousand yen from the end of the previous
consolidated fiscal year. The major factors for the change were the decrease of 1,797,278 thousand yen in buildings andstructures, 613,355 thousand yen in land, and 290,302 thousand yen in other (property, plant and equipment) and theincrease of 457,116 thousand yen in investment securities.
Liabilities at the end of the current consolidated fiscal year were 13,842,135 thousand yen, down 747,154 thousand yen
from the end of the previous consolidated fiscal year.
Current liabilities were 6,756,849 thousand yen, up 286,591 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the increase of 372,945 thousand yen in current portion of long-termloans payable, 175,219 thousand yen in income taxes payable and 105,076 thousand yen in other (current liabilities), andthe decrease of 394,004 thousand yen in short-term loans payable.
Noncurrent liabilities were 7,085,286 thousand yen, down 1,033,746 thousand yen from the end of the previous
consolidated fiscal year. The major factors for the change were the decrease of 937,166 thousand yen in long-term loans
payable, 209,799 thousand yen in other (noncurrent liabilities) and 117,992 thousand yen in deferred tax liabilities, and theincrease of 240,000 thousand yen in bonds payable.
Net assets at the end of the current consolidated fiscal year were 16,229,899 thousand yen, up 832,881 thousand yen
from the end of the previous consolidated fiscal year. The major factor for the change was the increase of 908,899 thousand
yen in retained earnings as a result of recording profit attributable to owners of parent and payment of dividends of surplus.

3(3) Cash Flow Overview for Current Term
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the current consolidated fiscal year stood at
8,856,086 thousand yen, down 178,726 thousand yen from the end of the previous consolidated fiscal year.
The status of each cash flow is as follows:(Cash flow from operating activities)
Funds used in operating activities were 317,132 thousand yen (funds obtained in the previous year were 2,070,559
thousand yen). The major breakdown of income was 1,573,106 thousand yen of income before income taxes, 939,934
thousand yen of depreciation and amortization, and 334,496 thousand yen of impairment loss. The major breakdown ofexpenditure was 2,252,114 thousand yen of increase in inventories, 460,221 thousand yen of gain on sales of noncurrent
assets, and 495,815 thousand yen of income taxes paid.
(Cash flow from investing activities)
Funds obtained by investing activities were 1,366,683 thousand yen (funds used in the previous year were 321,230
thousand yen). The major breakdown of income was 3,583,111 thousand yen of proceeds from sales of property, plant andequipment, and 400,426 thousand yen of proceeds from withdrawal of time deposits. The major breakdown of expenditure
was 1,515,878 thousand yen of purchase of property, plant and equipment, 567,015 thousand yen of purchase of investment
securities and 425,397 thousand yen of payments into time deposits.
(Cash flow from financing activities)
Funds used in financing activities were 1,227,551 thousand yen (funds used in the previous year were 1,686,346 thousandyen). The major breakdown of income was 4,831,600 thousand yen of proceeds from long-term loans payable and 293,209
thousand yen of proceeds from issuance of bonds. The major breakdown of expenditure was 5,395,820 thousand yen of
repayment of long-term loans payable, 394,004 thousand yen of decrease in short-term loans payable, and 369,130 thousand
yen of repayments of installment payables.
(Reference) Trend of Cash Flow Related Indicators
FY ended

FY ended

FY ended

FY ended

FY ended

March 2015

March 2016

March 2017

March 2018

March 2019

47.0

49.4

48.7

51.3

54.0

36.7

33.1

28.2

38.3

29.6

Debt repayment period (years)

6.9

13.3

6.5

5.1

－

Interest coverage ratio (times)

14.2

7.4

21.2

30.2

－

Equity ratio (%)
Equity ratio on market pricebasis (%)

Equity ratio: equity capital/total assets
Equity ratio on market price basis: total market value of stock/total assets
Debt repayment period: interest-bearing debt/operating cash flow
Interest coverage ratio: operating cash flow/interest payments(Notes)1.

All are calculated using financial figures on consolidated base.

2.

Cash flow is using cash flow from operating activities.

3.

Total market value of stock is calculated as end-of-the-term share value multiplied by the number of outstanding
shares at end of term (after excluding treasury stocks).

4.

Interest-bearing debt includes all debts that are included in the consolidated balance sheet, for which interests are
paid.

5.

Our operating cash flow for the fiscal year ended March 31, 2019 was negative. Therefore, we have not calculated
debt repayment period and interest coverage ratio.

4(4) Future Outlook
Regarding domestic economic outlook, although it is on a moderate recovery trend, there are uncertainties such as theimpact of consumption tax increase, and it is believed that a significant recovery in personal consumption is unlikely to happen.
Thus, it is anticipated that the uncertain situation will continue.
Under these circumstances, our corporate group will make efforts to enhance customers’ satisfaction and improve ourbusiness performance by clarifying business strategies for each segment, conducting effective and efficient sales andensuring to provide services based on our basic philosophy of “Loving-kindness, Respect for dignity, and Customer firstspirit.”Moreover, we plan to make efforts to expand target areas and increase our operation bases primarily in the Nursing Carebusiness. In addition, we will establish features unique to our corporate group and gain the support of customers and tenants
by streamlining business through joint procurement and improving and optimizing service capabilities through personnel
exchange to maximize synergy between different businesses.
As for the forecast of the consolidated business performance throughout the year, sales are expected to be 30,873,733
thousand yen (up 13.5 %, from the current consolidated fiscal year), operating income is expected to be 1,909,302 thousandyen (up 86.1 %, same), ordinary income is expected to be 1,899,005 thousand yen (up 43.2 %, same), and profit attributableto owners of parent is expected to be 1,244,456 thousand yen (up 12.9 %, same).

2. Basic Principles of Selecting Accounting Standards
Currently, the activities of our corporate group are mainly conducted in Japan. Therefore, the Japanese accounting standards
will be used for the time being. In the future, however, as our corporate group expands its business overseas, the needs of using
the accounting based on the IFRS will increase as important information for decision making by investors, financial institutions
and other stakeholders in Japan and overseas. The Company is planning to deliberate on the application of the IFRS including
the appropriate timing of introduction.

5

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2018
(As of March 31, 2018)

FY ended March 31, 2019
(As of March 31, 2019)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise

9,315,023
1,918,111
67,593

9,159,666
2,088,868
53,667

Real estate for sale
Supplies

989,573372

3,255,629
262

Other
Allowance for doubtful accounts

926,367(8,132)997,447(6,010)13,208,910

15,549,530

15,016,361

13,607,014

Accumulated depreciation(7,734,558)(8,122,489)

Buildings and structures, net

7,281,803

5,484,524

Land

3,390,199

2,776,844

Other
Accumulated depreciation

3,157,526(2,300,535)

3,034,628(2,467,939)

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures

Other, net

856,990566,688

11,528,994

8,828,058

Intangible assets

77,42362,003

Investments and other assets
Investment securities

Total property, plant and equipment

565,841

1,022,958

Deferred tax assets
Lease and guarantee deposits

488,073
2,465,108

462,735
2,475,925

Other
Allowance for doubtful accounts

1,678,972(27,015)

1,693,446(22,624)

Total investments and other assets
Total noncurrent assets
Total assets

6

5,170,980

5,632,442

16,777,397

14,522,504

29,986,308

30,072,034

(Thousands of yen)
FY ended March 31, 2018
(As of March 31, 2018)

FY ended March 31, 2019
(As of March 31, 2019)

Liabilities
Current liabilities
Notes and accounts payable-trade

621,037

632,235

751,004-

357,000
60,0002,300,777
269,938

2,673,723
445,158

Provision for bonuses
Provision for point card certificates

236,941
137,972

241,764
89,429Provision for shareholder benefit program
Asset retirement obligation

12,397
17,23313,095
16,411Other

2,122,955

2,228,031

Total current liabilities

6,470,257

6,756,849

Bonds payable
Long-term loans payable

6,549,297

240,000
5,612,131

Deferred tax liabilities
Asset retirement obligation

495,962
221,321377,970
212,532

Other

852,451642,652

Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payableNoncurrent liabilities

Total noncurrent liabilities

8,119,032

7,085,286

14,589,290

13,842,135

Capital stock
Capital surplus

2,222,935
2,666,282

2,222,935
2,664,695

Retained earnings
Treasury stock

11,691,849(1,166,007)

12,600,748(1,164,420)

Total shareholders’ equity

15,415,060

16,323,959(17,799)(94,272)

(243)

212

(18,042)(94,059)

15,397,017

16,229,899

29,986,308

30,072,034

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeTotal net assets
Liabilities and net assets

7

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations
Salaries and allowances
Taxes and dues
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for allowance for shareholders’ benefits
Other
Total selling, general and administrative expenses(Thousands of yen)
FY ended March 31, 2018
FY ended March 31, 2019
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
26,402,628
27,209,311
23,517,229
24,490,195
2,885,398
2,719,115

Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Subsidy income
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
Insurance income
Gain on negative goodwill
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss
Loss on disaster
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Profit attributable to owners of parent

8

206,700
279,003530,923
1,852
6,820
12,290655,894

209,825
278,455
523,805
8,274
13,035
659,778

1,693,485
1,191,912

1,693,173
1,025,942

5,669
3,666
97,463
16,073
144,629

5,219
4,124
148,871
106,328
136,542

267,502

401,086

72,616
34,70066,072
34,732

107,316
1,352,098

100,805
1,326,222

370,676
9,739
61,238441,654504,390
165,902670,292

72,85910,123
469,784-

44,16854334,496
44,688552,768
1,240,984

423,408
1,573,106

369,011
63,343

530,126(59,229)432,354808,629

470,896
1,102,209

808,629

1,102,209

Consolidated Statements of Comprehensive Income(Thousands of yen)
FY ended March 31, 2018
FY ended March 31, 2019
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
Net income

808,629

1,102,209

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(11,984)(76,473)(1,215)455

Total other comprehensive income(13,199)(76,017)Comprehensive income

795,430

1,026,192

Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

795,430

1,026,192--

9

(3) Consolidated Statements of Changes in Net Assets
FY ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period2,222,935

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity2,666,282

11,076,529(1,166,007)

14,799,740

Dividends from surplus
Profit attributable toowners of parent
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period(193,310)(193,310)

808,629808,629－－615,319－615,319

2,222,935

2,666,282

11,691,849(1,166,007)

15,415,060

Accumulated other comprehensive income
Valuation difference Foreign currency
on available-for-saletranslation
securities
adjustment
Balance at beginning ofcurrent period
Changes of items during
period(5,814)

Total accumulated
othercomprehensive
income972(4,842)

Dividends from surplus
Profit attributable toowners of parent
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Total net assets

14,794,897(193,310)
808,629(11,984)(1,215)(13,199)(13,199)(11,984)(1,215)(13,199)

602,119(17,799)(243)(18,042)

15,397,017

10FY ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period2,222,935

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity2,666,282

11,691,849(1,166,007)

15,415,060

Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
stock
Purchase of treasury
stock by J-ESOP
Disposal of treasury
stock for J-ESOP
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period(193,310)(193,310)

1,102,209

1,102,209(1,587)(0)(0)(35,137)(35,137)

36,72435,137－(1,587)

908,899

1,586

908,898

2,222,935

2,664,695

12,600,748(1,164,420)

16,323,959

Accumulated other comprehensive income
Valuation difference Foreign currency
on available-for-saletranslation
securities
adjustment
Balance at beginning ofcurrent period
Changes of items during
period(17,799)

Total accumulated
othercomprehensive
income(243)(18,042)Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasury
stock
Purchase of treasury
stock by J-ESOP
Disposal of treasury
stock for J-ESOP
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Total net assets

15,397,017(193,310)
1,102,209(0)(35,137)
35,137(76,473)455(76,017)(76,017)(76,473)455(76,017)

832,881(94,272)212(94,059)

16,229,899

11

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY ended March 31, 2018
FY ended March 31, 2019
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in allowance for shareholders’benefits
Interest and dividends income
Interest expenses
Loss on retirement of noncurrent assets
Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of investment securities
Insurance income
Loss on disaster
Gain on negative goodwill
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts
payable-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Amount of insurance income
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Payments for retirement of property, plant andequipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Expenditure due to fulfillment of asset retirement
obligations
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities

Payments into time deposits
Proceeds from withdrawal of time deposits
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments for transfer of business
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investment activities

12

1,240,984
1,025,253
469,784(51,219)
1,680

1,573,106
939,934
334,496(6,513)
4,823(91,790)(48,543)582

697(9,336)
72,616
10,123(297,816)(9,739)(61,238)(9,343)66,07254(460,221)(165,902)
44,688-(186,730)(170,756)

60,71945,772(2,252,114)
63,0395,759

11,379164,725
2,390,131
5,311(68,633)(363,552)
107,30244,307(30,793)
5,696(64,482)
165,902(495,815)
102,360

2,070,559(317,132)(2,446,945)(1,515,878)

(759)

-

2,464,033

3,583,111(41,860)(1,429)(2,100)(33,337)(594,593)
514,9115,000(260,415)
260,404(129,056)(567,015)(425,397)
400,426(131,229)

29,179120,245(20,000)(210,776)
84,479(12,414)
39,63350(321,230)(218,490)
223,723(112,359)
44,928(613)
1,366,683

(Thousands of yen)
FY ended March 31, 2018
FY ended March 31, 2019
(April 1, 2017 - March 31, 2018) (April 1, 2018 - March 31, 2019)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable(93,596)(394,004)

3,445,000

4,831,600

Repayment of long-term loans payable
Proceeds from issuance of bonds(4,336,924)-(5,395,820)
293,209

Repayments of lease obligations
Repayments of installment payables(794)(506,388)(369,130)

Cash dividends paid
Other
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(193,556)(85)(193,406)(0)(1,686,346)(1,227,551)

2,100

(726)

65,083(178,726)

Cash and cash equivalents at beginning of year

8,969,729

9,034,813

Cash and cash equivalents at end of year

9,034,813

8,856,086

13

(5) Notes to Consolidated Financial Statements(Notes regarding premise of a going concern)
Nothing is applicable.
(Change in presentation method)(Related to consolidated balance sheet)“Construction in progress” which was listed separately under “Property, plant and equipment” in the previous consolidated
fiscal year is included in “Other” from the current consolidated fiscal year, because it became less important in terms ofmonetary value. In order to reflect this change, we have reclassified consolidated financial statements for the previous
consolidated fiscal year.
As a result, 238,450 thousand yen in “Construction in progress” under “Property, plant and equipment” and 2,919,076
thousand yen in “Other” in the consolidated balance sheet of the previous consolidated fiscal year was reclassified as 3,157,526
thousand yen in “Other.”(Related to consolidated statements of income)1. “Insurance income” which was listed separately under “Non-operating income” in the previous consolidated fiscal year
is included in “Other” from the current consolidated fiscal year, because it became less than 10% of the total amount of
non-operating income. In order to reflect this change, we have reclassified consolidated financial statements for theprevious consolidated fiscal year.
As a result, 74,575 thousand yen in “Insurance income” and 70,053 thousand yen in “Other” under “Non-operating
income” in the consolidated statements of income of the previous consolidated fiscal year was reclassified as 144,629
thousand yen in “Other.”
2. “Rent expenses” which was listed separately under “Non-operating expenses” in the previous consolidated fiscal year isincluded in “Other” from the current consolidated fiscal year, because it became less than 10% of the total amount of
non-operating expenses. In order to reflect this change, we have reclassified consolidated financial statements for theprevious consolidated fiscal year.
As a result, 18,801 thousand yen in “Rent expenses” and 15,899 thousand yen in “Other” under “Non-operating
expenses” in the consolidated statements of income of the previous consolidated fiscal year was reclassified as 34,700
thousand yen in “Other.”(Related to consolidated statements of cash flows)“Expenditure due to fulfillment of asset retirement obligations” which was listed under “Other” in “Net cash provided by(used in) investment activities” in the previous consolidated fiscal year increased in importance. Therefore, we havedecided to give this separately from the current consolidated fiscal year. In order to reflect this change, we havereclassified consolidated financial statements for the previous consolidated fiscal year.
As a result, -2,050 thousand yen in “Other” under “Net cash provided by (used in) investment activities” in the consolidated
statements of cash flows of the previous consolidated fiscal year has been reclassified into -2,100 thousand yen in “Expenditure
due to fulfillment of asset retirement obligations” and 50 thousand yen for “Other.”(Changes accompanying the application of the partial revision to the “Accounting Standards for Tax Effect Accounting”)
The partial revision to the “Accounting Standards for Tax Effect Accounting” (Corporate Accounting Standards No. 28 of
February 16, 2018; hereinafter “Partial Revision of the Tax Effect Accounting Standards”) will apply from the beginning of
the current consolidated fiscal year. Accordingly, we have changed to a method in which “Deferred tax assets” is given in the“Investments and other assets” category while “Deferred tax liabilities” is given in the “Noncurrent liabilities” category.
As a result, “Deferred tax assets” in “Current assets” decreased by 184,469 thousand yen while “Deferred tax assets” in“Investments and other assets” increased by 77,601 thousand yen in the consolidated balance sheet for the previous
consolidated fiscal year. In addition, “Deferred tax liabilities” in “Noncurrent liabilities” decreased by 106,867 thousand yen.
The deferred tax assets and deferred tax liabilities of the same tax paying entity are offset and indicated. This means that
total assets decreased by 106,867 thousand yen after the change.

14(Additional information)(Transactions to provide our own shares to employees through a trust)
We introduced a stock benefit trust (J-ESOP) system (hereinafter “this system”) incentive plan to offer our own shares to
employees (including the employees of our subsidiaries; hereinafter the same) at a Board of Directors’ meeting held on August
10, 2018. This aims to further enhance the interrelation between our stock price and performance and the treatment of ouremployees while improving their motivation to improve our performance.
(1) Overview of transactions
This system is a mechanism to offer our own shares to employees who satisfy certain requirements based on the stock benefit
regulations we have established in advance. We have acquired the shares to be offered to our employees, including those for the
future, through a trust (hereinafter “the trust”) we established in advance. We are managing these shares separately as trust
assets.
(2) Our own shares remaining in the trust
We have recorded our own shares remaining in the trust as treasury stock under net assets according to their book value(excluding the amount of incidental expenses) in the trust. The applicable treasury stock book value is 35,137 thousand yen andthe number of shares is 72,150 as of the end of the current consolidated fiscal year.(Segment information, etc.)(Segment information)
1. Overview of the reporting segments(1) How to determine the reporting segments
The reporting segments of our corporate group are the constituent units of business for which segregated financial
information is available and that are the subject of regular examination by the Board of Directors to decide management
resources and assess business performance.
Our corporate group has business departments for each service at head office, and each business department develops
comprehensive strategies for the services, etc. that they handle. Therefore, the Company is consisted of segments per
service based on each business department. There are 4 reporting segments including “Nursing Care Business,” “Karaoke
Business,” “Restaurant Business” and “Real Estate Business.”(2) Types of products and services that belong to each reporting segment
The “Nursing Care Business” operates fee-based nursing homes for elderly, day-service centers, group homes and careplanning centers. It also conducts sales and lease of social-welfare tools and provides day-services such as afterschool
assistance for children with disabilities. The “Karaoke Business” operates karaoke stores, and the “Restaurant Business”
operates izakaya. The “Real Estate Business” undertakes sale and purchase of real estate for sale and lease, management
and brokerage of buildings, residences, and other properties.
2. Method to calculate the amount of sales, profits, loss, assets and other items per reporting segment
The accounting of reporting business segments is handled in the almost same way as the accounting method used in creating
consolidated financial statements.
The profit in the reporting segment is based on the figures of operating income.
Internal profit and transferred amount among the segments are based on the prevailing market values.
The partial revision to the “Accounting Standards for Tax Effect Accounting” (Corporate Accounting Standards No. 28 of
February 16, 2018) will apply from the beginning of the current consolidated fiscal year. Therefore, the figures for the previous
consolidated fiscal year are those after this standard has been applied retroactively.

15

3. Information concerning the amount of sales, profits, loss, assets and other items per reporting segment
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Thousands of yen)
Reporting segments

Otherbusinesses

Total

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

16,139,137

7,628,476

1,757,235

623,329

26,148,178

254,450

26,402,628－

11,03048,494

3,007

62,532

11

62,543

16,139,137

7,639,506

1,805,730

626,336

26,210,710

254,461

26,465,172

Segment income (loss)

1,176,921

904,217

13,838139,804

2,234,781(32,250)

2,202,531

Segment assets

11,460,275

4,784,651

825,151

1,837,332

18,907,410

216,935

19,124,345

387,240

499,833

87,233

12,152986,459

7,926

994,386

2,402,907

351,599

62,273―2,816,780

211

2,816,992

Total(Note)*

Sales
Sales to external customers
Internal sales or transferred amountamong the segments
Total

Other items
Depreciation and amortization
Increased amount for property, plant andequipment and intangible assets(Note) The classification “Other businesses” refers to business segments that are not included in reporting segments, andincludes Hotel Business.
Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Thousands of yen)
Reporting segments
Nursing Care

Karaoke

Restaurant

Other
Real EstateBusinessbusinesses
Total

Total

(Note)*

Business

Business

Business

17,894,145

7,302,477

1,586,380

197,478

26,980,481

228,830

27,209,311

－

9,400

48,3281,200

58,928－58,92817,894,145

7,311,877

1,634,708

198,678

27,039,409

228,830

27,268,239

Segment income (loss)

1,238,951

880,618

51,84820,0462,191,465(53,660)

2,137,805

Segment assets

9,379,9784,556,543

720,191

4,086,819

18,743,532

146,879

18,890,412

401,810

413,867

61,393

11,749888,821

9,636

898,458

1,142,594

469,924

30,483－

1,643,002

1,819

1,644,821

Sales
Sales to external customers
Internal sales or transferred amountamong the segments
Total

Other items
Depreciation and amortization
Increased amount for property, plant andequipment and intangible assets(Note) The classification “Other businesses” refers to business segments that are not included in reporting segments, andincludes Hotel Business.

16

4. Balance between the total amount of reporting segments and the amount on the consolidated balance sheet and the breakdownof the balance (Items concerning balance adjustment)(Thousands of yen)
Sales

Previous consolidated fiscal year Current consolidated fiscal year

Reporting segments, total amount

26,210,710

27,039,409

Sales for “Other businesses” segment

254,461

228,830

Offsetting between segments(62,543)(58,928)

26,402,628

27,209,311

Sales on the consolidated balance sheet(Thousands of yen)
ProfitPrevious consolidated fiscal year Current consolidated fiscal year

Reporting segments, total amount

2,234,781

2,191,465

Profit (loss) for the “Other businesses” segment(32,250)(53,660)

Offsetting between segments

483,257

485,761

Expenses for all companies (Note)(1,493,876)(1,597,624)

Operating income on the consolidated balance sheet

1,191,912

1,025,942(Note) Expenses for all companies are mainly general administrative expenses that do not belong to the reporting segments.
(Thousands of yen)
AssetsPrevious consolidated fiscal year Current consolidated fiscal year

Reporting segments, total amount

18,907,410

18,743,532

216,935

146,879

Offsetting of debt

(3,523,667)(4,506,784)

Assets of all companies (Note)

14,385,630

15,688,407

Total assets on the consolidated balance sheet

29,986,308

30,072,034

Assets for the “Other businesses” segments(Note) Assets of all companies are mainly surplus funds (cash and deposits) that do not belong to the reporting segments, longterm investment funds (investment securities), and assets for operation department.
(Thousands of yen)
Reporting segments, total
Other items

Previous

Current

Other businesses
Previous

Current

Adjustment amount (Note)Previous

Current

Amount on the consolidatedbalance sheet
Previous

Current

consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated

Depreciation and amortization

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

fiscal year

986,459

888,821

7,926

9,636

30,867

41,475

1,025,253

939,934

2,816,780

1,643,002

211

1,819

45,566

63,9632,862,558

1,708,785

Increased amount for
property, plant andequipment and intangible
assets(Note) 1. The adjustment amount of depreciation and amortization (i.e. previous consolidated fiscal year: 30,867 thousand yen
and current consolidated fiscal year: 41,475 thousand yen) is for the operation department of the head office.
2. The adjustment amount of property, plant and equipment and intangible assets (i.e. previous consolidated fiscal year:
45,566 thousand yen and current consolidated fiscal year: 63,963 thousand yen) is the capital investment amount in allcompanies’ assets that do not belong to each segment.

17

[Related information]
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)
1. Information for each product and service
It is not described here because the same information is disclosed in the “Segment information” section.
2. Information per region(1) Sales
Because sales to the external customers within Japan exceed 90% of the sales on the consolidated statements of income,the description is omitted here.
(2) Property, plant and equipment
Because the amount of property, plant and equipment that exist within Japan exceeds 90% of the property, plant andequipment on the consolidated balance sheet, the description is omitted here.
3. Information per major customer(Thousands of yen)
Name of the customer

Sales
4,834,724

Fukuoka National Health Insurance Organization

Relevant segment
Nursing Care BusinessCurrent consolidated fiscal year (From April 1, 2018 to March 31, 2019)
1. Information for each product and service
It is not described here because the same information is disclosed in the “Segment information” section.
2. Information per region(1) Sales
Because sales to the external customers within Japan exceed 90% of the sales on the consolidated statements of income,the description is omitted here.
(2) Property, plant and equipment
Because the amount of property, plant and equipment that exist within Japan exceeds 90% of the property, plant andequipment on the consolidated balance sheet, the description is omitted here.
3. Information per major customer(Thousands of yen)
Name of the customer

Sales
4,964,678

Fukuoka National Health Insurance Organization

18

Relevant segment
Nursing Care Business[Information concerning impairment loss of noncurrent assets per reporting segment]
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Thousands of yen)
Reporting segment

Impairment loss

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

16,548269,176

Other

All companies/businesses

offsetTotal－

184,059－－

469,784

Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Thousands of yen)
Reporting segment

Impairment loss

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

5,416

166,882

36,993－Other

All companies/businesses

offsetTotal

125,203－

334,496[Information concerning amortization amount and unamortized balance of goodwill per reporting segment]
Nothing is applicable.
[Information concerning gain on negative goodwill per reporting segment]
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)
We recorded a gain on negative goodwill of 61,238 thousand yen in the current consolidated fiscal year, because in the
Nursing Care Business segment we acquired one nursing care facility in Chiba City, Chiba Prefecture on October 1, 2017 that
had been operated by Kurashi-no-sato, Ltd.
Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Nothing is applicable.

19(Per share information)
Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2017 to(From April 1, 2018 toMarch 31, 2018)
March 31, 2019)
Net assets per share

796 yen 49 sen

839 yen 58 sen

Net income per share

41 yen 83 sen

57 yen 02 sen(Note)

1. Diluted net income per share is not stated because there were no dilutive shares.
2. Shares in the Company possessed by Trust & Custody Services Bank, Ltd. (Trust E) as a trust asset of the “stock
benefit trust (J-ESOP)” are included in the treasury stocks to be deducted from the total number of outstanding sharesat end of term in the calculation of the amount of net assets per share (previous consolidated fiscal year: 0
shares/current consolidated fiscal year: 72,150 shares).
They are also included in the treasury stocks to be deducted in the calculation of the average number of shares in thecalculation of the net income per share (previous consolidated fiscal year: 0 shares/current consolidated fiscal year:
23,523 shares).
3. The basis of calculation for net income per share is as follows.
Item

Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2017 to(From April 1, 2018 toMarch 31, 2018)
March 31, 2019)

Profit attributable to owners of parent (thousand yen)Amount that is not attributable to common shareholders(thousand yen)
Profit attributable to owners of parent for common share(thousand yen)
Average number of common shares outstanding (shares)(Significant subsequent event)Nothing is applicable.

20

808,629

1,102,209－－

808,629

1,102,209

19,331,024

19,331,023