Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2018
[Japanese GAAP] (Consolidated)
Name of Listed Company:
UCHIYAMA HOLDINGS INC.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Fumiharu Uchiyama, President and Representative Director
Contact Point: Takehiro Yamamoto, Senior Managing Director and Manager of Business Planning Office
Phone: (093) 551-0002
Scheduled Date of Dividend Payment Start:
December 4, 2017
Scheduled Date of Financial Statements Filing:
November 14, 2017
Supplementary materials for Financial Results: Yes
Investor conference for Financial Results: Yes (For institutional investors and security analysts)

November 13, 2017
Stock Listing: TSE(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2018 (April 1, 2017 – September 30, 2017)(% 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 2018 2Q
FY 2017 2Q(Note) Comprehensive income%

Millions of yen

Net income
per share
FY 2018 2Q
FY 2017 2Q

Millions of yen

Millions of yen

%

669
91.3
442
350
118.3
209
FY 2017 2Q: 203 million (-47.2 %)

%

111.4
(53.0)

Diluted net income per
share
Yen

Yen

22.91
10.79

－
10.77

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2018 2Q
FY 2017(Reference) Equity capital:%

13,100
7.9
576
166.8
12,135
3.5
216
182.1
FY 2018 2Q: ¥448 million (120.8 %)Equity ratio

Millions of yen

31,48630,355FY 2018 2Q: ¥15,147 million%

15,14748.1
14,79448.7
FY 2017: ¥14,794 million

2. Dividends
End of the 1Q

Dividends per share
End of the 3Q

End of the 2Q

Yen

FY 2017－
FY 2018－
FY 2018 (forecast)(Note) Changes from the latest dividend forecast: None

Year-end

Annual

Yen

Yen

Yen

Yen

5.00
5.00

－

5.00

10.00

－

5.00

10.00

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)(% of change from previous year for full year)

Net sales
Millions of yen%

Operating income

Ordinary income

Millions of yen

Millions of yen%

Profit attributable toowners of parent%

Millions of yen%

Net income
per share
Yen

Full year
26,810
5.9
1,120
44.2
1,081
7.2
702
36.32
－
(Note) 1 Changes from the latest financial forecast: None
2 Since the year-on-year growth rate of annual profit attributable to owners of parent for the term ending March 2018exceeds 1000%, “－” is used.

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) Application of the accounting procedures for producing quarterly consolidated financial statements: None
(3) 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:(4) 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 2Q

21,618,800 shares

FY 2017

21,618,800 shares

FY 2018 2Q

2,287,776 shares

FY 2017

2,287,776 shares

FY 2018 2Q

19,331,024 shares

FY 2017 2Q

19,408,894 shares* Summary of financial results is out of scope of quarterly review.
* 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 “Analysis Concerning Future Forecasts Including
Consolidated Financial Projections” on page 3 of the Appendix.
 The Company plans to hold a session for briefing financial results for institutional investors and security analysts on Nov.
22, 2017. The details and explained contents (voice) at the session will be included in the website of the Company
immediately after the session, together with the reference materials used for briefing on that day.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1) Analysis Concerning Results of Operations ............................................................................................................................ 2(2) Analysis Concerning Financial Situation ................................................................................................................................ 3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections ........................................................... 4
2. Consolidated Financial Statements ............................................................................................................................................... 5(1) Consolidated Balance Sheets .................................................................................................................................................. 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 7(3) Consolidated Statements of Cash Flows ................................................................................................................................. 9(4) Notes Regarding Consolidated Financial Statements ............................................................................................................. 11(Notes regarding premise of a going concern) ......................................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ..................................................................................... 11(Segment information, etc.) ..................................................................................................................................................... 11(Significant subsequent events) ...............................................................................................................................................13

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
In the second quarter of this consolidated term, the Japanese economy saw the growth of the favorable cycle due to theimprovement in the employment and income environments, etc. In addition, the global economy is gently recovering, thanks
to the thriving U.S. economy, but there are many uncertainties in overseas circumstances, including the trends of governmental
policies in Europe and the U.S. and the risk of a military clash in North Korea and Syria, and so the future outlook remains
unclear.
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 second quarter of the current consolidated fiscal year were 13,100,349 thousand yen (up 7.9% Yearon-Year (YoY)), operating income was 576,755 thousand yen (up 166.8% YoY), ordinary income was 669,821 thousand yen(up 91.3% YoY), and profit attributable to owners of patent was 442,858 thousand yen (up 111.4% YoY).
The results of each segment were as follows.
1) Nursing Care Business
For the Nursing Care Business segment, we opened “Sawayaka Seaside Kukinoumi,” a fee-charging nursing home, in Juneand established 3 facilities of “Sawayaka Ai-no-ie,” a day service centers for after school support for children with disabilities.
As a result, the number of sales footholds as of the end of the second quarter is 84 (156 offices). At existing facilities, weaimed to stabilize occupancy ratio and reduce the number of vacant rooms 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 second quarter of this consolidated term was 93.4% (91.8% in the same term last year). As a result, sales were
7,879,466 thousand yen (up 11.9% YoY) and segment income was 664,093 thousand yen (up 30.3% YoY).
2) Karaoke Business
For the Karaoke Business segment, we tried to increase customers by utilizing an online portal site actively, and promoted
customers to subscribe to smartphone services, to increase repeat customers. We also strived to reduce cost through appropriate
staffing and the streamlining of business operation. As a result, sales were 3,776,694 thousand yen (down 5.6% YoY) andsegment income was 365,711 thousand yen (up 46.4% YoY). In the second quarter of the current consolidated fiscal year, weclosed two stores without opening any new stores. Accordingly, the number of stores is 94 as of the end of this quarter.
3) Restaurant Business
For the Restaurant Business segment, one existing store changed its business type, one karaoke shop changed its businesstype to a restaurant, and closed three stores. Accordingly, the number of stores as of the end of this second quarter is 21 inside
Japan, and 3 outside Japan. The number of customers at existing stores was stable. As a new type of store, we opened the
highball-specialized store “Highball Bar Gintengai 1923” in Kokurakita-ku, Kitakyushu-shi, to create new demand. As a result,sales were 870,005 thousand yen (down 1.4% YoY) and segment loss was 8,767 thousand yen (segment loss was 33,369
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. Mainly because the sale of real estate for sale progressed, sales
were 447,987 thousand yen (up 347.4% YoY) and segment income was 93,376 thousand yen (up 247.7% YoY).

25) Other businesses
In the Other businesses segment, we strived to increase hotel guests by utilizing the advertisement media, with the aim of
meeting the demand as domestic travels increased due to the yen depreciation, in the hotel business. As a result, sales were126,194 thousand yen (up 13.4% YoY) and segment loss was 18,372 thousand yen (segment loss was 14,381 thousand yen
during the same term last year).

(2) Analysis Concerning Financial Situation
1) Status of assets, liabilities and net assets
Total assets as of the end of the second quarter of this consolidated fiscal year came to 31,486,739 thousand yen, up 1,130,863
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 13,751,195 thousand yen, up 579,345 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because notes and accounts receivable-trade and current assets (other) increased.
Noncurrent assets came to 17,735,543 thousand yen, up 551,517 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because buildings and structures, land, and property, plant and equipment (other) increased andinvestments and other assets (other) decreased.
Liabilities as of the end of the second quarter of this consolidated fiscal year came to 16,339,716 thousand yen, up 778,738
thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 7,025,050 thousand yen, up 768,392 thousand yen from the end of the previous consolidated fiscal
year. This is mainly because short-term loans payable and current portion of long-term loans payable increased.
Noncurrent liabilities came to 9,314,666 thousand yen, up 10,345 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because long-term loans payable and asset retirement obligation increased and noncurrent liabilities(other) decreased.
Net assets as of the end of the second quarter of this consolidated fiscal year came to 15,147,022 thousand yen, up 352,124
thousand yen from the end of the previous consolidated fiscal year. This is mainly because of an increase in retained earnings
arising from profit attributable to owners of parent and a decrease in net assets due to cash dividends paid.
2) Situation of cash flow
Cash and cash equivalent (hereinafter referred to as “funds”) during the end of the second quarter of the current consolidated
fiscal year stood at 9,489,371 thousand yen, up 519,641 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 1,001,417 thousand yen (funds obtained in the same period of the previous year
were 575,696 thousand yen). The major breakdown of income was 687,241 thousand yen of net income before income taxes
and 488,212 thousand yen of depreciation and amortization. The major breakdown of expenditure was 123,069 thousand yenof increase in notes and accounts receivable-trade and 128,591 thousand yen of income taxes paid.
(Cash flow from investing activities)
Funds used in investing activities were 1,008,796 thousand yen (funds used in the same period of the previous year were1,267,848 thousand yen). The major breakdown of expenditure was 1,433,115 thousand yen of purchase of property, plant andequipment and 130,204 thousand yen of payments into time deposits. The major breakdown of income was 509,739 thousand
yen of proceeds from sales of investment securities.
(Cash flow from financing activities)
Funds obtained in financing activities were 526,540 thousand yen (funds used in the same period of the previous year were
61,021 thousand yen). The major breakdown of income was 430,842 thousand yen of increase in short-term loans payable and1,600,000 thousand yen of proceeds from long-term loans payable. The major breakdown of expenditure was 1,128,299
thousand yen of repayment of long-term loans payable, 278,668 thousand yen of repayments of installment payables.

3(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2018, there are no changes to the estimated values
announced on May 12, 2017.

4

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2017
(As of March 31, 2017)

2Q of FY ending March 31, 2018
(As of September 30, 2017)

AssetsCurrent assets
Cash and deposits

9,249,929

9,259,836

Notes and accounts receivable-trade
Securities

1,731,381
5,003

1,854,450-

Merchandise
Real estate for sale

68,073
1,049,738

70,137
1,042,689

Supplies
Other

174
1,080,688

304
1,536,985

Allowance for doubtful accounts(13,138)(13,208)

13,171,850

13,751,195

7,721,059

8,282,421

Land
Other, net

3,629,089
1,011,502

3,760,181
1,217,066

Total property, plant and equipment

12,361,651

13,259,668

45,80050,9594,849,802

4,495,657(73,229)(70,742)

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

Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets

4,776,572

4,424,914

17,184,025

17,735,543

30,355,875

31,486,739

347,593844,600

279,1811,275,442

2,225,201
162,427

2,429,601
238,184

Provision for bonuses
Provision for point card certificates

235,260
229,762

254,609180,133

Provision for shareholder benefit program
Asset retirement obligation

11,815
6,833

-

Other

2,193,162

2,367,898

Total current liabilities

6,256,657

7,025,050

Noncurrent liabilities
Long-term loans payable

7,516,797

7,784,099

214,653
1,572,869

224,835
1,305,731

Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable

Asset retirement obligation
Other
Total noncurrent liabilities
Total liabilities

59,304,320

9,314,666

15,560,977

16,339,716

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

2Q of FY ending March 31, 2018
(As of September 30, 2017)

Net assets
Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,666,282
11,076,529

2,666,282
11,422,733

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

Total shareholders' equity

14,799,740

15,145,944(5,814)

350

972

727

(4,842)

1,078

14,794,897

15,147,022

30,355,875

31,486,739

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

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
The second quarter of this consolidated fiscal year
(Thousands of yen)
2Q of FY ended March 31, 2017
(April 1, 2016- September 30, 2016)

2Q of FY ending March 31, 2018
(April 1, 2017- September 30, 2017)

Net sales

12,135,802

13,100,349

Cost of sales

11,067,197

11,670,463

Gross profit

1,068,605

1,429,885

6,731
250,998

7,814
273,054115
594,565439
571,822852,410853,130

216,194

576,755

Interest income
Dividends income

3,354
28

2,898
24

Commission fee
Other40,404
159,71164,56464,404

Total non-operating income

203,499

131,892

45,81536,301

15,357
8,436

2,524

Selling, general and administrative expenses
Provision for bonuses
Taxes and dues
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative
expenses
Operating income
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

69,60838,825350,085

669,821

Gain on sales of noncurrent assets
Gain on sales of investment securities-

12,2409,739

Total extraordinary income-

21,98012,639759
3,800

Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets
Impairment loss
Total extraordinary loss

12,6394,560

Income before income taxes

337,445687,241

Income taxes-current

117,903

194,073

Income taxes-deferred

11,95250,309Total income taxes

129,855

244,382

Net income
Net profit (loss) attributable to non-controllinginterests
Net profit attributable to owners of parent

207,590442,858(1,858)-

209,449442,8587

Consolidated Statements of Comprehensive Income
The second quarter of this consolidated fiscal year
(Thousands of yen)
2Q of FY ended March 31, 2017
(April 1, 2016- September 30, 2016)

2Q of FY ending March 31, 2018
(April 1, 2017- September 30, 2017)

Net income

207,590442,858

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(6,102)

6,165

1,788

(244)

Total other comprehensive income(4,313)

5,921

Comprehensive income

203,277

448,780

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

204,223

448,780

(946)

-

8

(3) Consolidated Statements of Cash Flows(Thousands of yen)
2Q of FY ended March 31, 2017
(April 1, 2016- September 30, 2016)

2Q of FY ending March 31, 2018
(April 1, 2017- September 30, 2017)

337,445687,241575,071
12,639488,2123,800(11,467)(2,416)

12,71919,348(39,569)(49,629)(10,175)(11,815)-(12,240)-759(9,739)(3,382)45,815(2,922)36,301(108,231)(123,069)(271,461)
67,772

4,916(15,008)(51,534)(65,139)

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
Loss (gain) on sales of noncurrent assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Interest and dividends income
Interest expenses
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

36,555

161,068

Subtotal

592,198

1,109,667

Interest and dividends income received
Interest expenses paid

1,128
(45,898)863(34,066)(88,079)
116,347(128,591)
53,544575,696

1,001,417(1,018,019)(1,433,115)

-

(759)

-

100,000(848)-(10,000)(95,184)-

509,739

2,890

5,000

(42)

(130,204)(26,563)130,199(42,748)

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investing 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 of loans receivable

26,77327,451(172,662)(5,999)Collection of loans receivable
Purchase of insurance funds

19,142(74,745)

20,033(81,157)

Other
Net cash provided by (used in) investing activities

9(23,771)(2,050)(1,267,848)(1,008,796)

(Thousands of yen)
2Q of FY ended March 31, 2017
(April 1, 2016- September 30, 2016)

2Q of FY ending March 31, 2018
(April 1, 2017- September 30, 2017)(194,400)

430,842

1,620,000

1,600,000(1,293,447)(17,500)(1,128,299)-

Repayments of lease obligations
Repayments of installment payables
Payments made to trust account for acquisitionof treasury stock
Cash dividends paid
Other
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(433)(304,727)(433)(278,668)

229,251-(99,764)-(96,845)(55)(61,021)526,540(5,608)479(758,782)

519,641

Cash and cash equivalents at beginning of year

9,301,340

8,969,729

Cash and cash equivalents at end of year

8,542,558

9,489,371

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds

10

(4) Notes Regarding Consolidated Financial Statements(Notes regarding premise of a going concern)
Nothing is applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Nothing is applicable.
(Segment information, etc.)
I. Cumulative period through the consolidated second quarter of the previous fiscal year (April 1 – September 30, 2016)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

OthersNursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

7,039,309

4,002,710

882,344

100,138

12,024,503―

196

21,156100

21,4527,039,309

4,002,906

903,501

100,238

12,045,955

509,545249,870(33,369)

26,857752,903

Total(Note) *1

Total

Adjustment
Amount*2

Consolidatedbalance sheet
amount*3

Sales
Sales to externalcustomers

111,299 12,135,802―

12,135,802(21,452)―

Internal sales ortransferred
amount among―

21,452the segments
Total
Segment income(loss)

111,299 12,157,255(21,452) 12,135,802(14,381)(522,327)

738,522

216,194(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, and includes
hotel business.
2. The segment income (loss) adjustments amount, -522,327 thousand yen, includes 236,232 thousand yen in eliminationof intersegment transactions and -758,560 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly selling, general and administrative expenses that are not allocatedto reporting segments.
3. Segment income (loss) is adjusted with operating losses calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Important impairment loss related to noncurrent assets)
Regarding stores that closed down and stores scheduled for relocation or closing in the second quarter of the current
consolidated fiscal year, there was an impairment loss of 268 thousand yen in the “Karaoke Business,” and 12,371 thousand
yen in the “Restaurant Business.”11II. Cumulative period through the consolidated second quarter of current fiscal year (April 1 – September 30, 2017)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Others

Total

Adjustment

Consolidatedbalance sheet

Nursing-care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

7,879,466

3,776,694

870,005

447,987

12,974,155

－

5,606

24,2081,724

31,5397,879,466

3,782,300

894,214449,71213,005,694

126,194 13,131,888(31,539) 13,100,349

664,093

365,711(8,767)

93,376

1,114,414(18,372)(519,287)

Total(Note) *1

Amount*2

amount*3

Sales
Sales to externalcustomers

126,194 13,100,349－

13,100,349(31,539)－

Internal sales ortransferred
amount among－

31,539the segments
Total
Segment income(loss)

1,096,042

576,755(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, and includes
hotel business.
2. The segment income (loss) adjustments amount, -519,287 thousand yen, includes 241,572 thousand yen in eliminationof intersegment transactions and -760,860 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly selling, general and administrative expenses that are not allocatedto reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment(Important impairment loss related to noncurrent assets)
Description is omitted because of lack of materiality.

12(Significant subsequent events)
Sawayaka Club Co., Ltd., which is a consolidated subsidiary of the Company, concluded a contract for the transfer of thegroup home business of Kurashi-no-sato, Ltd. on August 24, 2017, based on the resolution at the meeting of the board of
directors held on August 21, 2017, and took over part of the business on October 1, 2017.
1. Outline of business combination(1) Name and business content of the other party
Name of the other party: Kurashi-no-sato, Ltd.
Business content: Business regarding the operation of a group home
(2) Primary reason for business combination
Sawayaka Club Co., Ltd., which is a consolidated subsidiary of the Company, thinks that it is important toincrease the number of new nursing care facilities for its sales strategy, and the business combination is expected toincrease the number of facilities and expand business in the Kanto region (Chiba Prefecture).
(3) Date of business combination
October 1, 2017(4) Legal format of business combination
To take over the business by paying cash(5) Name of the enterprise that acquired the business
Sawayaka Club Co., Ltd., which is a 100% consolidated subsidiary of the Company
2. Cost of acquisition of the businessPrice: 20,000 thousand yen (in cash)
3. Breakdown and amount of major acquisition-related costs
Advisory fee, etc.: 3,000 thousand yen
4. Goodwill amount, the reason for its emergence, amortization method, and amortization period
To be determined
5. Assets and liabilities taken over on the date of business combination, and their breakdowns
To be determined13