Financial Results for the Fiscal Year Ended March 31, 2018
[Japanese GAAP] (Consolidated)
May 14, 2018
Stock Listing: TSE

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 26, 2018
Scheduled Date of Dividend Payment Start:
June 27, 2018
Scheduled Date of Financial Statements Filing:
June 27, 2018
Supplementary materials for Financial Results: Yes
Investor conference for Financial Results: Yes (For institutional investors and security analysts)(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 – March 31, 2018)(% of change from previous year)(1) Consolidated Financial Results
Net sales
Operating income
Ordinary income
Net income
Millions of yen%

FY 2018
26,402
4.3
1,191
FY 201725,3185.9777(Note) Comprehensive income
FY 2018: ¥ 795 million ( - %)Millions of yen

%

53.3
504.0

Net income
per share

Diluted net
income per share
Yen

Millions of yen%

Millions of yen

1,352
34.1
1,008
210.4
FY 2017: 66 million (-92.9%)%－(93.9)

808
59

Return on equity

Ordinary income
to total assets

%

%

%

5.4
4.5
0.4
3.3
FY 2017: ¥ - million

4.5
3.1

Yen

FY 2018
41.83
－
3.10
3.09
FY 2017(Reference) Equity in earnings of affiliated companies: FY 2018: ¥ - million

Operating income
to net sales(Note)1. The change in net income and comprehensive income attributable to the shareholders of the parent company in the fiscal year ended
March 31, 2018 is greater than 1000%. Therefore, it is stated as "-".
2. Diluted net income per share for the fiscal year ended March 31, 2018 is not stated because there were no dilutive shares.

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

30,09330,355FY 2018: ¥15,397 million

FY 2018
FY 2017(Reference) Equity capital:

Equity ratio

Net assets per share

Millions of yen%%

15,39751.2
14,79448.7
FY 2017: ¥14,794 million

796.49765.34(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents
at end of year

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2,070
1,795

(321)
(1,878)(1,686)
(246)

9,034
8,969

FY 2018
FY 2017
2. Dividends
End ofthe 1QFY 2017
FY 2018
FY 2019 (forecast)

Dividends per share
End of
End ofYear-end
the 2Qthe 3Q

AnnualTotal
dividends(annual)Dividends
Dividends on
payout ratio
net assets(consolidated) (consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of Yen

%

%

―
―
―

5.00
5.00
5.00

―
―
―

5.00
5.00
5.00

10.00
10.00
10.00

193
193

322.9
23.9
21.9

1.3
1.3

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)(% of change from previous year for full year, same quarter of the previous year for 2Q)

Net sales
2Q(cumulative)
Full year

Operating income
Millions of yen

Ordinary income%

Millions of yen

Net income
per share

Net income

Millions of yen%%

13,5373.3

439(23.9)

513(23.4)

27,781

5.2

1,318

10.6

1,371

1.4

Millions of yen

%

Yen

334

(24.5)

17.29

881

9.1

45.62

*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 2018

21,618,800 shares

FY 2017

21,618,800 shares

FY 2018

2,287,776 shares

FY 2017

2,287,776 shares

FY 2018

19,331,024 shares

FY 2017

19,370,066 shares(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 – March 31, 2018)(% of change from previous year)(1) Non-Consolidated Financial Results
Net sales
Operating income
Ordinary income
Net income
FY 2018
FY 2017

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

989
881

12.2
30.4

464
358

29.5
115.5

536
425

26.2
89.9

526
418

25.9
89.4

Net income
per share

Diluted net income
per shareYen

Yen

FY 2018
27.26－
FY 2017
21.61
21.57(Note) Diluted net income per share for the fiscal year ended March 31, 2018 is not stated because there were no diluted shares.
(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2018
FY 2017(Reference) Equity capital:

Equity ratio

Net assets per share

Millions of yen

5,039
4,753
FY 2018: ¥4,853 million

4,853
4,519
FY 2017: ¥4,519 million

%

Yen

96.3
95.1

251.06233.802. Forecasts of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)(% 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

496
994

Ordinary income
%

0.4
0.5

Millions of yen

260
519

Net income pershare

Net income
%

(1.0)
(3.3)

Millions of yen

257
509

%

Yen

(1.8)
(3.3)

13.31
26.37

* Financial report is not subject to audits by certified public accountants or auditing corporations.
* 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 investors and analysts on June 6, 2018. 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(Segment information, etc.) .....................................................................................................................................................14(Per share information) ............................................................................................................................................................19(Significant subsequent event).................................................................................................................................................19

1

1. Business Performance Overview(1) Business Performance Overview for Current Term
In this consolidated fiscal year, although the Japanese economy is on a gradual recovery trend due to improvements incorporate earnings as well as employment and income environments, there are many uncertain factors such as stock price,foreign exchange trends and geopolitical risks, and the situation is still uncertain.
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 26,402,628 thousand yen (up 4.3% Year-on-Year (YoY)),
operating income was 1,191,912 thousand yen (up 53.3% YoY), ordinary income was 1,352,098 thousand yen (up 34.1%
YoY). An extraordinary income of 441,654 thousand yen was posted due to gain on sales of noncurrent assets
accompanying sale and leaseback transactions of 2 fee-charging nursing homes for the elderly. On the other hand, as a resultof examining future collectability of fixed assets in the Nursing Care Business, Karaoke Business and Restaurant Business,
we decided to impair the book value up to the recoverable value and an impairment loss of 469,784 thousand yen was
posted. As a result, profit attributable to owners of patent increasing by 748,642 thousand yen to 808,629 thousand yen(59,987 thousand yen during the same term last year).
The results of each segment were as follows.
(1) Nursing Care BusinessIn the Nursing Care Business, we have actively developed the businesses by establishing 8 fee-charging nursing homes
for the elderly, 2 business offices for short-stays, 7 business offices for day-services such as after-school support for children
with disabilities (of which 1 business office for assisted living※１), and 1 new business office for support and consultation※2.
In addition, we acquired one group home. As a result, the number of sales footholds as of the end of this consolidated fiscal
year is 95 (169 offices). At existing facilities, in order to reduce the number of vacant rooms, we aimed to stabilize
occupancy ratio by promoting the cementing of cooperation with nearby hospitals and home care support offices by visiting
them. Consequently, the average occupancy ratio for existing facilities in this consolidated fiscal year was 94.6% (average inthe previous term: 92.3%). As a result, sales were 16,139,137 thousand yen (up 11.8% YoY) and segment income was
1,176,921 thousand yen (up 18.5% YoY).
※1 It is a place to provide disabled welfare services based on the Comprehensive Services and Supports for Persons with Disabilities

Act for people of 18 years old or older who have a disability and need daily care. The services, which are provided mostly during
daytime, include nursing care such as support for bathing, bathroom and eating, household works such as cooking, laundry, andcleaning, consultation and advices concerning daily lives, other support necessary for daily lives, providing opportunities forcreative activities and production activities, and support for improving physical functions and life skills.
※2 It is a place that provides support for persons with disabilities, such as consultation before using disabled welfare service (i.e.
consultation and preparation concerning service usage plan).

(2) Karaoke Business
For the Karaoke Business segment, we strived to acquire customers for all-you-can-drink courses, etc. and mobile-service
members for smartphones, to increase repeat customers, and utilized the informative websites for restaurants actively, toattract customers. As a result, sales were 7,628,476 thousand yen (down 6.3% YoY) and segment income was 904,217
thousand yen (up 17.4% YoY). In this consolidated fiscal year, we closed 4 stores. Accordingly, the number of stores is 92 asof the end of this consolidated fiscal year.
(3) Restaurant Business
For the Restaurant Business segment, 1 restaurant was opened, two restaurants changed its business type, and 4
restaurants were closed down. Consequently, the number of restaurants as of the end of this consolidated fiscal year is 20 in2

Japan, and 3 outside Japan. As for existing restaurants, customers were decreasing, and so we strived to increase them with alimited offer, and made efforts to meet the demand for banquets, etc. by visiting each enterprise, to increase corporate
customers. However, due to decrease in customers associated with closing of restaurants, sales were 1,757,235 thousand yen(down 5.0% YoY) and segment income was 13,838 thousand yen (segment loss was 45,142 thousand yen during the same
term last year).
(4) Real Estate Business
For the Real Estate Business segment, our corporate group’s core businesses activities are sales/purchase of real estate
properties for sale and intermediary work for rental properties. As a result, sales were 623,329 thousand yen (down 4.3%
YoY) and segment income was 139,804 thousand yen (up 25.5% YoY).
(5) 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 254,450 thousand yen (up 2.9% YoY) and segment loss
was 32,250 thousand yen (segment loss was 25,595 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 30,093,176 thousand yen, down 262,699 thousand
yen from the end of the previous consolidated fiscal year.
Current assets were 13,393,379 thousand yen, up 221,529 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the increase of 65,094 thousand yen in cash and deposits, 186,730
thousand yen in notes and accounts receivable-trade and 53,021 thousand yen in others (current assets) and the decreaseof 60,164 thousand yen in real estate for sale.
Noncurrent assets were 16,699,796 thousand yen, down 484,228 thousand yen from the end of the previous
consolidated fiscal year. The major factors for the change were the decrease of 439,255 thousand yen in buildings andstructures and 238,890 thousand yen in land and the increase of 72,229 thousand yen in investment securities and 100,431
thousand yen in lease and guarantee deposits.
Liabilities at the end of the current consolidated fiscal year were 14,696,158 thousand yen, down 864,819 thousand yen
from the end of the previous consolidated fiscal year.
Current liabilities were 6,470,257 thousand yen, up 213,600 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the increase of 273,444 thousand yen in notes and accounts payabletrade and 107,511 thousand yen in income taxes payable and the decrease of 93,596 thousand yen in short-term loans
payable and 91,790 thousand yen in provision for point card certificates.
Noncurrent liabilities were 8,225,900 thousand yen, down 1,078,419 thousand yen from the end of the previous
consolidated fiscal year. The major factor for the change was the decrease of 967,500 thousand yen in long-term loans
payable and 180,140 thousand yen in others (noncurrent liabilities) and the increase of 62,554 thousand yen in deferred
tax liabilities.
Net assets at the end of the current consolidated fiscal year were 15,397,017 thousand yen, up 602,119 thousand yen
from the previous consolidated fiscal year. The major factor for the change was the increase of 615,319 thousand yen inretained earnings as a result of recording profit attributable to owners of the parent and payment of dividends of surplus.
As for liquidity of funds, the current ratio during the current consolidated fiscal year is 207.0%. The Corporate Groupwill make efforts to increase the current ratio in order to secure enough liquidity in the future.

3(3) Cash Flow Overview for Current Term
Cash and cash equivalent (hereinafter referred to as “funds”) at the end of the current consolidated fiscal year stood at
9,034,813 thousand yen, up 65,083 thousand yen from the previous consolidated fiscal year.
The status of each cash flow is as follows:(Cash flow from operating activities)
Funds obtained by operating activities were 2,070,559 thousand yen (funds obtained in the previous year were1,795,944 thousand yen). The major breakdown of income was 1,240,984 thousand yen of net income before income
taxes, 1,025,253 thousand yen of depreciation and amortization, and 469,784 thousand yen of impairment loss. The major
breakdown of expenditure was 186,730 thousand yen of increase in notes and accounts receivable - trade, 297,816
thousand yen of proceeds on sale of noncurrent assets and 363,552 thousand yen of income taxes paid.
(Cash flow from investing activities)
Funds used in investing activities were 321,230 thousand yen (funds used in the previous year were 1,878,598 thousandyen). The major breakdown of income was 2,464,033 thousand yen of proceeds from sales of property, plant andequipment, 514,911 thousand yen of proceeds from sales of investment securities and 260,404 thousand yen of proceedsfrom withdrawal of time deposits. The major breakdown of expenditure was 2,446,945 thousand yen of purchase ofproperty, plant and equipment, 594,593 thousand yen of purchase of investment securities and 260,415 thousand yen of
payments into time deposits.
(Cash flow from financing activities)
Funds used in financing activities were 1,686,346 thousand yen (funds used in the previous year were 246,424
thousand yen). The income was 3,445,000 thousand yen of proceeds from long-term loans payable. The major breakdownof expenditure was 4,336,924 thousand yen of repayment of long-term loans payable and 506,388 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 2014

March 2015

March 2016

March 2017

March 2018

46.7

47.0

49.4

48.7

51.2

43.3

36.7

33.1

28.2

38.2

Debt repayment period (years)

16.6

6.9

13.3

6.5

5.1

Interest coverage ratio (times)

5.0

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.

Market value of stock is calculated as end-of-the-term share value multiplied by the number of shares issued at
the end of the term (after excluding treasury shares).

4.

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

4

(4) Future Outlook
Regarding domestic economic outlook, although it is on a moderate recovery trend, there are uncertainties such as thesense of the limit of monetary policy, and it is believed that a significant recovery in personal consumption is unlikely tohappen. Thus, it is anticipated that the uncertain situation will continue.
Under these circumstances, the Corporate Group will make efforts to enhance customers’ satisfaction and improve its
business performance by clarifying business strategies for each segment, conducting effective and efficient sales andensuring to provide services based on its 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 27,781,224
thousand yen (up 5.2%, from the current consolidated fiscal year), operating income is expected to be 1,318,123 thousandyen (up 10.6%, same), ordinary income is expected to be 1,371,471 thousand yen (up 1.4%, same), and profit attributable toowners of the parent is expected to be 881,831 thousand yen (up 9.1%, same).

2. Basic Principles of Selecting Accounting Standards
Currently, the activities of the Corporate Group are mainly conducted in Japan. Therefore the Japanese accounting standards
will be used for the time being. In the future, however, as the Corporate Group expands its business overseas, the needs ofusing 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, 2017
(As of March 31, 2017)

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

AssetsCurrent assets
Cash and deposits

9,249,929

9,315,023

Notes and accounts receivable-trade
Securities

1,731,381
5,003

1,918,111-

Merchandise
Real estate for sale

68,073
1,049,738

67,593
989,573

Supplies
Deferred tax assets

174
207,341372
184,469

Other
Allowance for doubtful accounts

873,346(13,138)

926,367(8,132)

13,171,850

13,393,379

14,817,344(7,096,285)

15,016,361(7,734,558)

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

7,721,059

7,281,803

Land

Buildings and structures, net

3,629,089

3,390,199

Construction in progress
Other279,688
3,124,813

238,450
2,919,076(2,392,999)(2,300,535)

Accumulated depreciation
Other, net

731,813618,540

12,361,651

11,528,994

Intangible assets
Investments and other assets

45,80077,423

Investment securities
Deferred tax assets

493,611
383,178565,841
410,472

Lease and guarantee deposits
Other2,364,676
1,608,334

2,465,108
1,678,972

Allowance for doubtful accounts(73,229)(27,015)

Total property, plant and equipment

Total investments and other assets
Total noncurrent assets
Total assets

6

4,776,572

5,093,379

17,184,025

16,699,796

30,355,875

30,093,176

(Thousands of yen)
FY ended March 31, 2017
(As of March 31, 2017)

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

Liabilities
Current liabilities
Notes and accounts payable-trade347,593621,037

844,600
2,225,201

751,004
2,300,777

Lease obligations
Income taxes payable794
162,427

269,938

Provision for bonuses
Provision for point card certificates

235,260
229,762

236,941
137,972

Provision for shareholder benefit program
Asset retirement obligations

11,815
6,833

12,397
17,233

Other

2,192,368

2,122,955

Total current liabilities

6,256,657

6,470,257

Long-term loans payable
Deferred tax liabilities

7,516,797
540,276

6,549,297
602,830

Asset retirement obligation
Other

214,653
1,032,592

221,321852,451

Total noncurrent liabilities

9,304,320

8,225,900

15,560,977

14,696,158

Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,666,282
11,076,529

2,666,282
11,691,849

Treasury stock(1,166,007)(1,166,007)

Total shareholders' equity

14,799,740

15,415,060(5,814)(17,799)

972

(243)

(4,842)(18,042)

14,794,897

15,397,017

30,355,875

30,093,176

Short-term loans payable
Current portion of long-term loans payableNoncurrent liabilities

Total liabilities
Net assets

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, 2017
FY ended March 31, 2018
(April 1, 2016- March 31, 2017) (April 1, 2017- March 31, 2018)25,318,306
26,402,628
22,838,345
23,517,229
2,479,960
2,885,398

Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Insurance income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Loss on cancellation of store lease contract
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on donation of non-current assets
Gain on sales of investment securities
Gain on negative goodwill
Total extraordinary income
Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of noncurrent assets
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of the parent

8

170,813333,227
502,812
3,104
7,510
11,755673,173

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

1,702,395
777,564

1,693,485
1,191,912

8,707
28
95,75058,373
88,133
97,511
348,504

5,669
3,666
97,46374,575
16,07370,053
267,50285,07917,493
15,05972,61618,801
15,899117,632
1,008,436

107,316
1,352,098

5,785
18,43723,943

370,676
9,739
61,238

48,166441,654

3,817
16,995896,281

72,85910,123
469,784

917,094
139,508

552,768
1,240,984

256,551(176,084)
80,467369,011
63,343432,354

59,040(946)

808,629-

59,987

808,629

Consolidated Statements of comprehensive income(Thousands of yen)
FY ended March 31, 2017
FY ended March 31, 2018
(April 1, 2016- March 31, 2017) (April 1, 2017- March 31, 2018)
Net income

59,040808,629

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

7,371(11,984)(355)(1,215)

7,016(13,199)

Comprehensive income

Total other comprehensive income

66,057795,430

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

67,003

795,430

(946)

-

9

(3) Consolidated Statements of Changes in Net Assets
FY ended March 31, 2017 (From April 1, 2016 to March 31, 2017)(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'equity2,676,892

11,213,028(815,511)

15,297,345

Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasury
stock
Purchase of shares of
consolidated
subsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period(196,485)(196,485)

59,98759,987(350,496)(10,609)(350,496)(10,609)―(10,609)(136,498)(350,496)(497,604)

2,222,935

2,666,282

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

14,799,740

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets(12,536)

946

15,285,755

Accumulated other comprehensive income
Valuation difference Foreign currency
on available-for-saletranslation
securities
adjustment
Balance at beginning ofcurrent period
Changes of items during
period(13,186)

650

Dividends from surplus
Profit attributable toowners of the parent
Purchase of treasury
stock
Purchase of shares of
consolidated
subsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period(196,485)
59,987(350,496)(10,609)

7,371

321

7,693

(946)

6,747

7,371

321

7,693

(946)

(490,857)(5,814)972(4,842)-

14,794,897

10

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 the 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 the 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

11

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY ended March 31, 2017
FY ended March 31, 2018
(April 1, 2016- March 31, 2017) (April 1, 2017- March 31, 2018)
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
Gain on donation of non-current assets
Loss (gain) on sales of investment securities
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
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
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
Payments resulting from merger of subsidiaries
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

139,508
1,198,858
896,2811,240,984
1,025,253
469,784(12,690)(51,219)

16,213

1,680(158,095)(91,790)

1,640

582

(8,736)85,07916,995
3,817(5,785)(18,437)(23,943)(9,336)
72,616
10,123(297,816)(9,739)(61,238)(168,379)(186,730)(79,983)
92,51160,71945,77240,0705,759

30,591
2,045,517
4,331(84,578)(324,354)
155,028

164,725
2,390,131
5,311(68,633)(363,552)
107,302

1,795,944

2,070,559(2,146,915)(2,446,945)

-

(759)

13,9232,464,033(1,049)(98,800)
117,237(41,860)(594,593)
514,911

2,890

5,000

(7,455)
197,886(56,034)(260,415)
260,404(129,056)

53,402

29,179(152,679)(193,920)
380,872(36,356)
38,455
9,944(20,000)(210,776)
84,479(12,414)
39,633(2,050)(1,878,598)(321,230)

(Thousands of yen)
FY ended March 31, 2017
FY ended March 31, 2018
(April 1, 2016- March 31, 2017) (April 1, 2017- March 31, 2018)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable

24,787(93,596)

2,936,000

3,445,000(2,598,523)(35,000)(4,336,924)-

Repayments of lease obligations
Repayments of installment payables
Proceeds from withdrawal of trust account for
acquisition of treasury stock
Cash dividends paid
Payments from changes in ownership interestsin subsidiaries that do not result in change inscope of consolidation
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(866)(595,616)(794)(506,388)

229,251-(196,423)(193,556)(9,932)

-

(100)

(85)

(246,424)(1,686,346)(2,532)

2,100(331,610)

65,083

Cash and cash equivalents at beginning of year

9,301,340

8,969,729

Cash and cash equivalents at end of year

8,969,729

9,034,813

Repayment of long-term loans payable
Redemption of bonds

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)“Long-term loans receivable” which was listed separately under “Investments and other assets” in the previous
consolidated fiscal year is included in “Other” from the current consolidated fiscal year, because it became less important interms of monetary value. In order to reflect this change, we have reclassified consolidated financial statements for theprevious consolidated fiscal year.
As a result, 246,684 thousand yen in the “Long-term loans receivable” under “Investments and other assets” and1,361,650 thousand yen in “Other” in the consolidated balance sheet of the previous consolidated fiscal year werereclassified as 1,608,334 thousand yen in “Other”.
(Segment information, etc.)【Segment information】
1. Overview of the reporting segments(1) How to determine the reporting segments
The reporting segments of the 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.
The Company has business departments for each service, and each business department develops comprehensive
strategies for the services, etc. that they handle. Therefore, the Company is consisted of segments per service based oneach 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 andcare planning 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 saleand 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 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.

14

3. Information concerning the amount of sales, profits, loss, assets and other items per reporting segment
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Thousands of yen)
Reporting segments
Others (Note)

Total

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

14,431,417

8,138,687

1,849,813

651,134

25,071,053

247,252

25,318,306―

545

44,071

700

45,317―45,317

14,431,417

8,139,232

1,893,885

651,834

25,116,370

247,252

25,363,623

993,540

770,146(45,142)

111,434

1,829,978(25,595)

1,804,382

10,911,340

5,268,632

1,046,276

2,020,760

19,247,009

215,813

19,462,823

315,617727,245

102,898

12,788

1,158,550

8,120

1,166,670

1,575,505

699,052

274,8298,100

2,557,487

1,543

2,559,031

Total

Sales
Sales to external customers
Internal sales or transferred amountamong the segments
Total
Segment income (loss)
Segment assets
Other items
Depreciation and amortization
Increased amount for property, plant andequipment and intangible assets(Note) “Others” is the business segment that is not included in the reporting segment. “Others” include hotel business.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Thousands of yen)
Reporting segments

Others (Note)

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

11,537,582

4,784,651

825,151

1,848,241

18,995,626

218,450

19,214,076

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

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) “Others” is the business segment that is not included in the reporting segment. “Others” include hotel business.

15

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 amount25,116,370

26,210,710

Sales for “Others” segment

247,252

254,461

Offsetting between segments(45,317)(62,543)

25,318,306

26,402,628

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

Reporting segments, total amount

1,829,9782,234,781

Profit (loss) for the “Others” segment(25,595)(32,250)

Offsetting between segments

475,092

483,257(1,501,910)(1,493,876)

777,564

1,191,912

Expenses for all companies (Note)
Operating income on the consolidated balance sheet(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

19,247,009

18,995,626

Assets for the “Others” segments

215,813

218,450

Offsetting of debt

(3,523,492)(3,523,667)

Assets of all companies (Note)

14,416,544

14,402,767

Total assets on the consolidated balance sheet

30,355,875

30,093,176(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

OthersPrevious

Adjustment amount (Note)
Current

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

1,158,550

986,459

8,120

7,926

32,18730,867

1,198,858

1,025,253

2,557,487

2,816,780

1,543

211

47,55545,5662,606,587

2,862,558

Increased amount for
property, plant andequipment and intangible
assets(Note) 1. The adjustment amount of depreciation and amortization (i.e. previous consolidated fiscal year: 32,187 thousand yen
and current consolidated fiscal year: 30,867 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:
47,555 thousand yen and current consolidated fiscal year: 45,566 thousand yen) is the capital investment amount in
the all companies’ assets that do not belong to each segment.

16

【Related information】
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
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 balance sheet, thedescription 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
4,671,937

Fukuoka National Health Insurance Organization

Relevant segment
Nursing Care BusinessCurrent 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 balance sheet, thedescription 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

17

Relevant segment
Nursing Care Business【Information concerning impairment loss of noncurrent assets per reporting segment】
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)(Thousands of yen)
Reporting segment
All companies/

Impairment loss

Nursing-Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business―

761,948

117,675

OthersTotal
offset―16,658―896,281

Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Thousands of yen)
Reporting segment
All companies/

Impairment loss

Nursing-Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

16,548269,176

184,059

Others―Total
offset――469,784【Information concerning amortization amount and unamortized balance of goodwill per reporting segment】
Nothing is applicable.
【Information concerning gain from negative goodwill per reporting segment】
Previous consolidated fiscal year (From April 1, 2016 to March 31, 2017)
This has been omitted since it has little importance.
Current consolidated fiscal year (From April 1, 2017 to March 31, 2018)
In the “nursing care business” segment, the Company acquired a nursing-care facility, which had been operated by
Kurashi-no-sato Ltd., in Chiba-shi, Chiba Prefecture on October 1, 2017. Accordingly, a gain on negative goodwill
amounting to 61,238 thousand yen was posted in the consolidated cumulative third quarter.

18

(Per share information)
Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2016 to(From April 1, 2017 toMarch 31, 2017)
March 31, 2018)
Net assets per share

765 yen 34 sen

796 yen 49 sen

Net income per share

3 yen 10 sen

41 yen 83 sen

Diluted net income per share

3 yen 09 sen―(Note)

1. Diluted net income per share for the fiscal year ended March 31, 2018 is not stated because there were no
dilutive shares.
2. The basis of calculation for net income per share and diluted net income per share is as follows.
Item

Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2016 to(From April 1, 2017 toMarch 31, 2017)
March 31, 2018)

Net income per share
Profit attributable to owners of the parent (thousandyen)
Amount that is not attributable to common shareholders (thousand yen)
Profit attributable to owners of the parent for commonshare (thousand yen)
Average number of common shares outstanding(shares)

59,987

808,629――

59,987

808,629

19,370,066

19,331,024――

Increased number of common shares (shares)

29,408―(Out of which, subscription rights to shares (shares))(29,408)―

Diluted net income per share
Adjustment amount of profit attributable to owners of
the parent (thousand yen)

Overview of the dilutive shares that are not included in thecalculation of the diluted net income per share because they
did not have dilutive effect.

―(Significant subsequent event)Nothing is applicable.

19―