Financial Results for the Fiscal Year Ended March 31, 2020
[Japanese GAAP] (Consolidated)
May 12, 2020
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 24, 2020
Scheduled Date of Dividend Payment Start:
June 25, 2020
Scheduled Date of Financial Statements Filing:
June 25, 2020
Supplementary Materials for Financial Results: Yes
Investor Conference for Financial Results: No(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(% 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 2020
30,29511.3
1,075
FY 2019
27,2093.1
1,025(Note) Comprehensive income
FY 2020: ¥42 million (-95.9%)

Millions of yen%

4.9(13.9)Net income
per share

Diluted net
income per share
Yen

Millions of yen

Millions of yen

%

1,321
(0.4)
2
1,326
(1.9)
1,102
FY 2019: ¥1,026 million (29.0 %)%(99.8)
36.3

Return on equity

Ordinary income
to total assets%

Yen

Operating income
to net sales%%

FY 2020
0.14－
FY 2019
57.02－(Reference) Equity in earnings of affiliated companies: FY 2020: ¥ - million

0.0
4.4
7.0
4.4
FY 2019: ¥ - million

3.6
3.8

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets

Millions of yen

FY 2020
FY 2019(Reference) Equity capital:

Net assets per share

Millions of yen

29,62230,072
FY 2020: ¥16,078 million%

Yen

16,07854.3
16,22954.0
FY 2019: ¥16,229 million

831.73
839.58(3) Consolidated Cash Flows
Cash flow fromoperating activities
FY 2020
FY 2019

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

3,072
(317)

(1,672)
1,366

113(1,227)

10,3718,856

2. Dividends
End ofthe 1Q
Yen

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

Yen

Yen

AnnualYen

Total
dividends(annual)Millions of Yen

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

193
17.5
FY 2019
―
5.00
―
5.00
10.00
FY 2020
―
5.00
―
5.00
10.00
194
7,288.9
FY 2021 (forecast)
―
―
―
―
―
―
Note: Dividends for FY 2021 are still to be determined. We will announce them as soon as estimations become possible.

%

1.2
1.2

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)
It is difficult to reasonably calculate the impact on our business performance from the novel coronavirus at the present stage.
Therefore, we have set our business forecast for the fiscal year ending March 31, 2021 to “pending.” We will promptly announce
our business forecast when it becomes possible to do so in the future. Please refer to “(4) Future Outlook” on page 5 of theappendix for the reasons for this.

*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 2020

21,618,800 shares

FY 2019

21,618,800 shares

FY 2020

2,287,777 shares

FY 2019

2,287,777 shares

FY 2020

19,331,023 shares

FY 2019

19,331,023 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, 2020: 72,150 shares/fiscal year ended March 31, 2019: 72,150 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, 2020: 72,150 shares/fiscal year ended March 31, 2019: 23,523 shares).
(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(% of change from previous year)(1) Non-Consolidated Financial Results
Net sales
Operating income
Ordinary income
Net income
FY 2020
FY 2019

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

1,055
992

6.4
0.3

499
439

13.6
(5.3)

534
507

5.4
(5.5)

523
506

3.5
(4.0)

Net income
per share
FY 2020
FY 2019

Diluted net income
per share
Yen

Yen

27.09
26.18

－
－

(2) Non-Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2020
FY 2019(Reference) Equity capital:

7,110
6,337
FY 2020: ¥5,495 million

Equity ratio

Millions of yen

5,495
5,166
FY 2019: ¥5,166 million

Net assets per share
%

Yen

77.3
81.5

284.29267.24*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.

○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 ............................................................................................................... 11(4) Consolidated Statements of Cash Flows ................................................................................................................................13(5) Notes to Consolidated Financial Statements ..........................................................................................................................16(Notes regarding premise of a going concern) .........................................................................................................................16(Change in presentation method) .............................................................................................................................................16(Additional information) .........................................................................................................................................................17(Segment information, etc.) .....................................................................................................................................................18(Per share information) ............................................................................................................................................................24(Significant subsequent event).................................................................................................................................................24

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. However, in addition to the increase in the consumption tax rate, novel
coronavirus infections spread around the world. Therefore, the impact on personal consumption and corporate activities
expanded. This means that the situation at the end of the fiscal year was extremely severe. Moreover, the outlook for the
future is increasingly unclear and it is difficult to forecast when we will recover from this situation.
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 30,295,077 thousand yen (up 11.3% Year-on-Year (YoY)),
operating income was 1,075,874 thousand yen (up 4.9% YoY), and ordinary income was 1,321,019 thousand yen (down
0.4% YoY). We examined the future recoverability of noncurrent assets, and decided to impair the book value to therecoverable value. Accordingly, we recorded an impairment loss of 1,078,457 thousand yen mainly in our Karaoke Business.
As a result, profit attributable to owners of parent decreased by 1,099,557 thousand yen to 2,652 thousand yen (down 99.8%
YoY).
The results of each segment were as follows.
a. Nursing Care Business
For the Nursing Care Business segment, we opened two new fee-charging retirement homes with nursing care and a new
home-visit nursing station. As a result of these efforts, we now have 182 offices in 104 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 totrain in-house qualified oral care certified persons in cooperation with Kyushu Dental University. We now have 1,117 such
persons at the end of the current consolidated fiscal year. 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, etc. to improve operational efficiency of personnel.
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 94.4% (average in the previous term: 95.7%). On the other hand, wewere not able to secure the number of caregivers we sought for in our initial plans. Therefore, we had to supplement themwith temporary workers. As a result, temporary worker costs exceeded our estimate in terms of expenses. As a result, sales
were 19,050,915 thousand yen (up 6.5% YoY) and segment income was 1,106,496 thousand yen (down 10.7% YoY).
b. Karaoke Business
For the Karaoke Business, we newly opened three stores and closed three stores. As a result, the number of stores is 91
at the end of the current consolidated fiscal year (91 stores in the same period of a year earlier). We increased repeat
customers in our existing facilities. We did this by proactively sending customers coupons utilizing social networking
services. Also, we changed the menu and ran campaigns in which we gave 10 times the number of membership points toenhance our product appeal. However, successive natural disasters occurred. Heavy rains fell on the northern part of
Kyushu in August and a large typhoon directly hit the Tokyo metropolitan area in September. In addition to this, the Rugby
World Cup 2019 was held in Japan from September to November. This attracted a great deal of attention from people.

2

Furthermore, this period overlapped with the consumption tax hike in October. Accordingly, the number of customers we
attracted fell below our expectations. In addition, customer traffic has slowed down. This is due to the spread of restraint on
going out and events at the end of the current consolidated fiscal year, which resulted from the impact of novel coronavirus
infections that permeates the world. As a result, sales were 6,832,737 thousand yen (down 6.4% YoY) and segment income
was 569,271 thousand yen (down 35.4% YoY).
c. Restaurant Business
For the Restaurant Business segment, one store was closed. Accordingly, the number of stores at the end of the current
consolidated fiscal year is 16 inside Japan, and 2 outside Japan. In terms of sales, we saw a slowdown in the attraction ofcustomers due to the impact of the Rugby World Cup and the natural disasters as well as the restraint on going out due tothe spread of novel coronavirus infections in the same way as in our Karaoke Business. As a result, sales were 1,249,241
thousand yen (down 21.3% YoY) and segment loss was 5,119 thousand yen (segment income of 51,848 thousand yen at thesame period of the previous year).
d. Real Estate Business
For the Real Estate Business, both sales and profit significantly grew owing to the large-scale real estate for sale that theCompany sold and other factors. As a result, sales were 2,955,853 thousand yen (197,478 thousand yen at the same period of
the previous year) and segment income was 556,820 thousand yen (20,046 thousand yen at the same period of the previousyear).
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. Nevertheless, the number of customers we attracted decreased. This was due tothe impact of the natural disasters and novel coronavirus infections in the same way as with the Karaoke Business andRestaurant Business. As a result, sales were 206,328 thousand yen (down 9.8% YoY) and segment loss was 76,881 thousandyen (segment loss was 53,660 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 29,622,290 thousand yen, down 449,744 thousand
yen from the end of the previous consolidated fiscal year.
Current assets were 15,075,227 thousand yen, down 474,302 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the decrease of 2,215,059 thousand yen in real estate for sale, theincrease of 1,519,071 thousand yen in cash and deposit and the increase of 116,728 thousand yen in notes and accounts
receivable-trade.
Noncurrent assets were 14,547,062 thousand yen, up 24,558 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the increase of 918,199 thousand yen in construction in progress and244,312 thousand yen in other (investments and other assets), and the decrease of 846,110 thousand yen in buildings andstructures and 270,973 thousand yen in land.
Liabilities at the end of the current consolidated fiscal year were 13,544,085 thousand yen, down 298,050 thousand yen
from the end of the previous consolidated fiscal year.
Current liabilities were 6,298,234 thousand yen, down 458,615 thousand yen from the end of the previous consolidated
fiscal year. The major factors for the change were the decrease of 399,517 thousand yen in current portion of long-termloans payable, 245,400 thousand yen in income taxes payable and 553,617 thousand yen in other (current liabilities), andthe increase of 722,600 thousand yen in short-term loans payable.
Noncurrent liabilities were 7,245,851 thousand yen, up 160,564 thousand yen from the end of the previous
consolidated fiscal year. The major factors for the change were the increase of 315,478 thousand yen in long-term loans

3payable and the decrease of 100,506 thousand yen in noncurrent liabilities (other).
Net assets at the end of the current consolidated fiscal year were 16,078,205 thousand yen, down 151,694 thousand yen
from the end of the previous consolidated fiscal year. The major factor for the change was the decrease of 191,379
thousand yen in retained earnings as a result of recording profit attributable to owners of parent and payment of dividendsof surplus.

(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
10,371,661 thousand yen, up 1,515,574 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 obtained in operating activities were 3,072,233 thousand yen (funds used in the previous year were 317,132
thousand yen). The major breakdown of income was 774,095 thousand yen in depreciation and amortization, 1,078,457
thousand yen in impairment loss and the decrease of 2,220,175 thousand yen in inventories. The major breakdown ofexpenditure was the decrease of 303,308 thousand yen in other current liabilities and 769,105 thousand yen in income
taxes paid.
(Cash flow from investing activities)
Funds used by investing activities were 1,672,948 thousand yen (funds obtained in the previous year were 1,366,683
thousand yen). The major breakdown of income was 354,176 thousand yen in proceeds from sales of investment
securities and 283,806 thousand yen in proceeds from withdrawal of time deposits. The major breakdown of expenditure
was 1,621,825 thousand yen in purchase of property, plant and equipment, 200,000 thousand yen in purchase ofinvestment securities and 285,036 thousand yen in payments into time deposits.
(Cash flow from financing activities)
Funds obtained in financing activities were 113,655 thousand yen (funds used in the previous year were 1,227,551
thousand yen). The major breakdown of income was the increase of 722,600 thousand yen in short-term loans payable
and 2,680,000 thousand yen in proceeds from long-term loans payable. The major breakdown of expenditure was
2,764,039 thousand yen in repayment of long-term loans payable, 270,767 thousand yen in repayments of installment
payables and 194,137 thousand yen in cash dividends paid.
(Reference) Trend of Cash Flow Related Indicators
FY ended

FY ended

FY ended

FY ended

FY ended

March 2016

March 2017

March 2018

March 2019

March 2020

49.4

48.7

51.3

54.0

54.3

33.1

28.2

38.3

29.6

20.9

Debt repayment period (years)

13.3

6.5

5.1

－

3.2

Interest coverage ratio (times)

7.4

21.2

30.2

－

49.8

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.

4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 notcalculated debt repayment period and interest coverage ratio.

(4) Future Outlook
We have set our consolidated business performance forecast for the next fiscal year to “pending.” This is because it isdifficult to reasonably calculate the impact from the novel coronavirus at the present stage.
We have closed 43 karaoke stores and 11 izakaya bars since April 8, 2020 in the seven prefectures where a state of
emergency has been declared in our group’s Karaoke Business and Restaurant Business. Furthermore, we temporarily closed
as necessary karaoke stores in areas where their closure was requested by prefectural governors with the expansion of thearea covered under the state of emergency declaration to the entire country by the government from April 16, 2020. We
resumed some operations upon shortening business hours in the areas where the request for their closure has been canceledsince May 7, 2020. Nevertheless, 67 of our karaoke stores and 5 of our izakaya bars are closed as of today. Even if the stateof emergency declaration is completely lifted in the future and we resume operations, it may take some time for customers
to return as before the crisis depending on the progress in terms of how the infections come to an end and the degree ofrecovery in consumer confidence. We will promptly announce our business forecast when it becomes possible to do so in the
future.

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, 2019
(As of March 31, 2019)

FY ended March 31, 2020
(As of March 31, 2020)

AssetsCurrent assets
Cash and deposits

9,159,666

10,678,737

Notes and accounts receivable-trade
Merchandise

2,088,868
53,6672,205,597
48,657

Real estate for sale
Supplies

3,255,629
262

1,040,569
317

997,447(6,010)1,111,685(10,337)

15,549,530

15,075,227

13,607,014(8,122,489)

13,498,447(8,860,033)

Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

5,484,524

4,638,414

Land

Buildings and structures, net

2,776,844

2,505,871

Construction in progress
Other

12,3983,022,230

930,597
3,114,739(2,467,939)(2,704,533)

554,290

410,205

8,828,058

8,485,089

62,00356,258Investment securities
Long-term loans receivable

1,022,958
278,852

927,797338,232

Deferred tax assets
Lease and guarantee deposits

462,735
2,475,925

637,7422,464,472

Other
Allowance for doubtful accounts

1,414,594(22,624)

1,658,906(21,435)

Total investments and other assets

5,632,442

6,005,715

14,522,504

14,547,062

30,072,034

29,622,290

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Total noncurrent assets
Total assets

6

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

FY ended March 31, 2020
(As of March 31, 2020)

Liabilities
Current liabilities
Notes and accounts payable-trade632,235

587,223

357,000
60,0001,079,600
60,0002,673,723
445,158

2,274,206
199,758

Provision for bonuses
Provision for point card certificates

241,764
89,429300,658
106,564

Provision for shareholder benefit program
Asset retirement obligation

13,095
16,411

15,810-Other

2,228,031

1,674,413

Total current liabilities

6,756,849

6,298,234

Bonds payable
Long-term loans payable

240,000
5,612,131

180,000
5,927,609

Deferred tax liabilities
Asset retirement obligation

377,970
212,532

371,561
222,031

Provision for stock benefit
Other642,6522,503
542,146

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

Total noncurrent liabilities

7,085,286

7,245,851

13,842,135

13,544,085

Shareholders’ equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,664,695
12,600,748

2,664,695
12,409,369

Treasury stock(1,164,420)(1,164,420)

Total shareholders’ equity

16,323,959

16,132,579(94,272)(53,206)

212(1,168)

Total liabilities
Net assets

Accumulated other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Foreign currency translation adjustment(94,059)(54,374)

Total net assets

Total accumulated other comprehensive income

16,229,899

16,078,205

Liabilities and net assets

30,072,034

29,622,290

7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
FY ended March 31, 2019
FY ended March 31, 2020
(April 1, 2018 - March 31, 2019) (April 1, 2019 - March 31, 2020)
Net sales

27,209,311

30,295,077

Cost of sales

24,490,195

27,493,539

Gross profit

2,719,115

2,801,537

Directors’ compensations
Salaries and allowances

209,825
278,455

194,667
303,328

Taxes and dues
Provision of allowance for doubtful accounts

523,805-

528,969
4,764

Provision for bonuses
Provision for allowance for shareholders’ benefits

8,274
13,0358,619
15,747

Stock provision expenses
Other659,778925
668,641

1,693,173

1,725,663

1,025,942

1,075,874

Interest income
Dividends income

5,219
4,124

7,257
23,293

Commission fee
Insurance income

148,871
36,839143,633
76,707

Subsidy income
Other106,328
99,703

69,46054,388

Total non-operating income

401,086

374,740

Interest expenses
Foreign exchange losses

66,072
5,914

60,102
26,512

Loss on disaster
Other

28,81826,65016,331

Total non-operating expenses

100,805

129,596

1,326,222

1,321,019

Gain on sales of noncurrent assets
Insurance income

504,390
165,902-

Total extraordinary income

670,292-

Extraordinary loss
Loss on sales of noncurrent assets

44,168-54334,496

11,209
1,078,457

Selling, general and administrative expenses

Total selling, general and administrative expenses
Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Loss on retirement of noncurrent assets
Impairment loss
Loss on disaster

44,688-

Total extraordinary loss

423,4081,089,667

Income before income taxes

1,573,106

231,351

Income taxes-current
Income taxes-deferred

530,126(59,229)

428,064(199,364)

Total income taxes

470,896

228,699

1,102,209

2,652

Net income8

(Thousands of yen)
FY ended March 31, 2019
FY ended March 31, 2020
(April 1, 2018 - March 31, 2019) (April 1, 2019 - March 31, 2020)
Profit attributable to owners of parent

1,102,209

9

2,652

Consolidated Statements of Comprehensive Income(Thousands of yen)
FY ended March 31, 2019
FY ended March 31, 2020
(April 1, 2018 - March 31, 2019) (April 1, 2019 - March 31, 2020)
Net income

1,102,209

2,652

Other comprehensive income
Valuation difference on available-for-sale securities(76,473)

41,066

Foreign currency translation adjustment455(1,380)(76,017)

39,685Comprehensive income

1,026,192

42,337

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

1,026,192

42,337--

Total other comprehensive income10(3) Consolidated Statements of Changes in Net Assets
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
periodCapital surplus

2,222,935

Retained earnings

2,666,282

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

11,691,849

Total shareholders’equityTreasury stock(1,166,007)(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 on
Foreign currency
Total accumulated otheravailable-for-saletranslation adjustment comprehensive income
securities
Balance at beginning ofcurrent period
Changes of items during
period(17,799)(243)(18,042)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

15,415,060

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FY ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

2,222,935

Retained earnings

2,664,695

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

12,600,748

Total shareholders’equityTreasury stock(1,164,420)(194,031)(194,031)

2,652

2,652

－

－

(191,379)－(191,379)

2,222,935

2,664,695

12,409,369(1,164,420)

16,132,579

Accumulated other comprehensive income
Valuation difference on
Foreign currency
Total accumulated otheravailable-for-saletranslation adjustment comprehensive income
securities
Balance at beginning ofcurrent period
Changes of items during
period(94,272)212(94,059)

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

16,323,959

Total net assets

16,229,899(194,031)
2,652
41,066(1,380)39,68539,68541,066(1,380)39,685(151,694)(53,206)(1,168)(54,374)

16,078,205

12

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY ended March 31, 2019
FY ended March 31, 2020
(April 1, 2018 - March 31, 2019) (April 1, 2019 - March 31, 2020)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization

1,573,106
939,934

231,351
774,095

Impairment loss
Increase (decrease) in allowance for doubtful accounts

334,496(6,513)

1,078,457
3,138

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in allowance for shareholders’benefits
Increase (decrease) in provision for stock benefit
Interest and dividends income

4,823

58,893(48,543)

17,135697

2,715(9,343)

2,503(30,550)

Interest expenses
Loss on retirement of noncurrent assets

66,072
54

60,102
11,209Loss (gain) on sales of noncurrent assets
Insurance income(460,221)(165,902)-

44,688-(170,756)(116,562)(2,252,114)
63,0392,220,175(213,926)

11,379(45,576)

90,920(303,308)

Loss on disaster
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in other current liabilities
Other(46,612)

17,309Subtotal(30,793)

3,767,163

Interest and dividends income received

5,696

26,594

Interest expenses paid
Amount of insurance income(64,482)
165,902(61,740)-

Income taxes paid
Income taxes refund(495,815)
102,360(769,105)
109,321

Net cash provided by (used in) operating activities(317,132)

3,072,233(1,515,878)(1,621,825)-(11,000)

3,583,111

77,736(1,429)(472)

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 and equipment
Purchase of intangible assets
Expenditure due to fulfillment of asset retirement
obligations
Purchase of investment securities
Proceeds from sales of investment securities(33,337)(16,900)(567,015)-(200,000)
354,176

Payments into time deposits
Proceeds from withdrawal of time deposits(425,397)
400,426(285,036)
283,806

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Purchase of insurance funds(131,229)(82,761)

120,245

94,683(218,490)(183,793)

Proceeds from cancellation of insurance funds
Payments of loans receivable

223,723(112,359)(132,332)

13

(Thousands of yen)
FY ended March 31, 2019
FY ended March 31, 2020
(April 1, 2018 - March 31, 2019) (April 1, 2019 - March 31, 2020)
Collection of loans receivable

44,92850,801

Other

(613)

(30)

1,366,683(1,672,948)

Net cash provided by (used in) investment activities

14

(Thousands of yen)
FY ended March 31, 2019
FY ended March 31, 2020
(April 1, 2018 - March 31, 2019) (April 1, 2019 - March 31, 2020)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable(394,004)
4,831,600

722,600
2,680,000

Repayment of long-term loans payable
Proceeds from issuance of bonds(5,395,820)
293,209(2,764,039)-

Redemption of bonds
Repayments of installment payables(369,130)(60,000)(270,767)

Cash dividends paid
Others(193,406)(0)(194,137)-

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(1,227,551)

113,655

(726)

2,634

(178,726)

1,515,574

Cash and cash equivalents at beginning of year

9,034,813

8,856,086

Cash and cash equivalents at end of year

8,856,086

10,371,661

15

(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)
1. “Construction in progress” which was included in “Other” under “Property, plant and equipment” in the previous
consolidated fiscal year increased in monetary importance. Therefore, we have decided to give this separately from thecurrent consolidated fiscal year. In order to reflect this change, we have reclassified consolidated financial statements for theprevious consolidated fiscal year.
As a result, 566,688 thousand yen in “Other” under “Property, plant and equipment” in the consolidated balance sheets ofthe previous consolidated fiscal year has been reclassified into 12,398 thousand yen for “Construction in progress” and554,290 thousand yen for “Other.”
2. “Long-term loans receivable” which was included in “Other” under “Investments and other assets” in the previous
consolidated fiscal year increased in monetary importance. Therefore, we have decided to give this separately from thecurrent consolidated fiscal year. In order to reflect this change, we have reclassified consolidated financial statements for theprevious consolidated fiscal year.
As a result, 1,693,446 thousand yen in “Other” under “Investments and other assets” in the consolidated balance sheets ofthe previous consolidated fiscal year has been reclassified into 278,852 thousand yen for “Long-term loans receivable” and1,414,594 thousand yen for “Other.”(Related to consolidated statements of income)1. “Insurance income” which was included in “Other” under “Non-operating income” in the previous consolidated fiscal
year is listed separately from the current consolidated fiscal year because it became more than 10% of the total amount of
non-operating income. In order to reflect this change, we have reclassified consolidated financial statements for the previous
consolidated fiscal year.
As a result, 136,542 thousand yen in “Other” under “Non-operating income” in the consolidated statements of income ofthe previous consolidated fiscal year has been reclassified 36,839 thousand yen for “Insurance income” and 99,703 thousand
yen for “Other.”
2. “Foreign exchange losses” which was included in “Other” under “Non-operating expenses” in the previous
consolidated fiscal year is listed separately from the current consolidated fiscal year because it became more than 10% of thetotal amount of non-operating expenses. In order to reflect this change, we have reclassified consolidated financial
statements for the previous consolidated fiscal year.
As a result, 34,732 thousand yen in “Other” under “Non-operating expenses” in the consolidated statements of income ofthe previous consolidated fiscal year has been reclassified 5,914 thousand yen for “Foreign exchange losses” and 28,818
thousand yen for “Other.”(Related to consolidated statements of cash flows)
1. “Increase (decrease) in other current liabilities” which was included in “Other” under “Net cash provided by (used in)operating activities” in the previous consolidated fiscal year increased in importance. Therefore, we have decided to givethis separately from the current consolidated fiscal year. In order to reflect this change, we have reclassified consolidated
financial statements for the previous consolidated fiscal year.
As a result, 44,307 thousand yen in “Other” under “Net cash provided by (used in) operating activities” in the
consolidated statements of cash flows of the previous consolidated fiscal year has been reclassified into 90,920 thousand yen
for “Increase (decrease) in other current liabilities” and -46,612 thousand yen for “Other.”16

(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 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 previous consolidated fiscal year, and 35,137 thousand yen and 72,150
shares as of the end of the current consolidated fiscal year.

17

(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 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
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.

18

3. Information concerning the amount of sales, profits, loss, assets and other items per reporting segment
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Thousands of yen)
Reporting segments

Otherbusinesses(Note)*

Total

Nursing Care
Business

KaraokeBusiness

Restaurant
Business

Real EstateBusiness

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

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) 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, 2019 to March 31, 2020)(Thousands of yen)
Reporting segments

Otherbusinesses(Note)*

Total

Nursing Care
Business

KaraokeBusiness

Restaurant
Business

Real EstateBusiness

Total

19,050,915

6,832,737

1,249,241

2,955,853

30,088,748

206,328

30,295,077

－

9,940

46,652

1,200

57,792

3

57,795

19,050,915

6,842,678

1,295,894

2,957,053

30,146,541

206,332

30,352,873

Segment income (loss)

1,106,496

569,271(5,119)556,820

2,227,468(76,881)2,150,587

Segment assets

9,994,835

3,596,795

573,800

1,852,464

16,017,896

146,777

16,164,674

303,286

375,404

44,606

11,448734,745

5,978

740,723

1,072,569

436,933

6,627－

1,516,129

15,705

1,531,835

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.

19

4. Balance between the total amount of reporting segments and the amount on the consolidated financial statement and thebreakdown of the balance (Items concerning balance adjustment)(Thousands of yen)Previous consolidated fiscal year

Current consolidated fiscal
year

27,039,409

30,146,541

Sales for “Other businesses” segment

228,830

206,332

Offsetting between segments(58,928)(57,795)

27,209,311

30,295,077

Previous consolidated fiscal year

Current consolidated fiscal
year

Reporting segments, total amount

2,191,465

2,227,468

Profit (loss) for the “Other businesses” segment(53,660)(76,881)

Offsetting between segments

485,761

533,161

Expenses for all companies (Note)(1,597,624)(1,607,874)

Operating income on the consolidated financial statement

1,025,942

1,075,874

Sales
Reporting segments, total amount

Sales on the consolidated financial statement(Thousands of yen)
Profit(Note) Expenses for all companies are mainly general administrative expenses that do not belong to the reporting segments.
(Thousands of yen)Previous consolidated fiscal
year

AssetsReporting segments, total amountCurrent consolidated fiscal
year

18,743,532

16,017,896

146,879

146,777

Offsetting of debt

(4,506,784)(4,927,394)

Assets of all companies (Note)

15,688,407

18,385,010

Total assets on the consolidated financial statement

30,072,034

29,622,290

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

Depreciation
andamortization
Increasedamountfor
property,plant
andequipment and intangible
assetsOther businesses

Amount on the consolidated
Adjustment amount (Note)financial statement

Previous
Current
Previous
Current
Previous
Current
Previous
Current
consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
888,821734,745

9,636

5,978

41,47533,371

939,934

774,095

1,643,002

1,516,129

1,819

15,70563,96346,306

1,708,785

1,578,14120

(Note) 1. The adjustment amount of depreciation and amortization (i.e. previous consolidated fiscal year: 41,475 thousand yen
and current consolidated fiscal year: 33,371 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:
63,963 thousand yen and current consolidated fiscal year: 46,306 thousand yen) is the capital investment amount in allcompanies’ assets that do not belong to each segment.

21

[Related information]
Previous 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 ofincome, 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

Relevant segment
Nursing Care BusinessCurrent consolidated fiscal year (From April 1, 2019 to March 31, 2020)
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 ofincome, 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
5,028,003

Fukuoka National Health Insurance Organization

22

Relevant segment
Nursing Care Business[Information concerning impairment loss of noncurrent assets per reporting segment]
Previous 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(Note) “Other businesses” is related to hotel business.
Current consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Thousands of yen)
Reporting segment

Impairment loss

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

17,178

973,753

73,604

13,719Other

All companies/businesses

offsetTotal

201(Note) “Other businesses” is related to hotel business.
[Information concerning amortization amount and unamortized balance of goodwill per reporting segment]
Nothing is applicable.
[Information concerning gain on negative goodwill per reporting segment]
Nothing is applicable.

23－

1,078,457

(Per share information)
Previous consolidated fiscal year Current consolidated fiscal year
(From April 1, 2018
(From April 1, 2019
to March 31, 2019)
to March 31, 2020)
Net assets per share

839 yen 58 sen

831 yen 73 sen

Net income per share

57 yen 02 sen

0 yen 14 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
shares at end of term in the calculation of the amount of net assets per share (previous consolidated fiscal year:
72,150 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
the calculation of the net income per share (previous consolidated fiscal year: 23,523 shares/current consolidated
fiscal year: 72,150 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, 2018
(From April 1, 2019
to March 31, 2019)
to March 31, 2020)

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

24

1,102,209

2,652

－

－

1,102,209

2,652

19,331,023

19,331,023