Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022
[Japanese GAAP] (Consolidated)
February 10, 2022
Stock Listing: TSE

Name of Listed Company:
UCHIYAMA HOLDINGS Co.,Ltd.
Code Number: 6059
URL: http://www.uchiyama-gr.jp
Representative: Takehiro Yamamoto, President and Representative Director
Contact Point: Tetsuo Kawakami, Director of General Affairs Department
Phone: (093) 551-0002
Scheduled Date of Financial Statements Filing: February 14, 2022
Scheduled Date of Dividend Payment Start: Supplementary materials for Financial Results: No
Investor conference for Financial Results: No(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the First three quarters of the Fiscal Year Ending March 31, 2022 (Apr. 1, 2021 – Dec. 31, 2021)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions ofyen%Millions of yen%

First three quarters ended Dec. 2021
18,880
5.1
6First three quarters ended Dec. 2020
17,972(23.7)(658)(Note) Comprehensive income
First three quarters of FY 2022: ¥68 million [-%]First three quarters of FY 2021: ¥(1,609) million [-%]Net income
per share%

Millions of yen

%

276
(399)

-

22
(1,632)-

Diluted net income
per share
YenFirst three quarters ended Dec. 2021
First three quarters ended Dec. 2020

Millions of yen

Yen

1.19
(84.44)-(Note) Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) has been applied beginning with the firstquarter of the fiscal year ending in March 2022. All figures for the first three quarters of the current fiscal year incorporate thisstandard.

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of December 31, 2021
As of March 31, 2021
(Reference) Equity capital:

Equity ratio

Millions of yen

31,604
13,63329,75013,674As of December 31, 2021: ¥13,633 million

%

43.1
46.0
As of March 31, 2021: ¥13,674 million(Note) Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) has been applied beginning with the firstquarter of the fiscal year ending in March 2022. All figures for the first three quarters of the current fiscal year incorporate thisstandard.

2. Dividends
End of the 1Q

End of the 2Q

Yen

FY 2021
FY 2022
FY 2022 (forecast)(Note) Changes from the latest dividend forecast: None

Dividends per share
End of the 3Q

Year-end

Annual

Yen

Yen

Yen

Yen

5.00
0.00

-

5.00

10.00

10.00

10.00

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 COVID-19 pandemic at the present
stage. Therefore, we have set our business forecast for the fiscal year ending March 31, 2022 to pending. We will promptly
announce our business forecast when it becomes possible to do so in the future.

*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: Yes
2) Changes in accounting policies due to reasons other than above 1):
None3) Changes in accounting estimates:
Yes
4) Restatements:
None
Note: For more details, please refer 2. Quarterly Consolidated Financial Statements and Important Notes (3) Notes to the
Quarterly Consolidated Financial Statements (Changes in accounting policies) and (Changes in accounting estimates)on page 9 of the Appendix.
(4) Number of outstanding shares (common stock)1) Number of shares outstanding
As of Dec. 31, 2021
(including treasury shares)
2) Number of treasury shares
As of Dec. 31, 2021
3) Average number of shares

Period ended
Dec. 31, 2021

21,618,800 shares

As of Mar. 31, 2021

21,618,800 shares

2,287,777 shares

As of Mar. 31, 2021

2,287,777 shares

19,331,023 shares

Period ended
Dec. 31, 2020

19,331,023 shares

Note: The shares in the Company possessed by Custody Bank of Japan, Ltd. (Trust E) as a trust asset of the “stock benefit trust(J-ESOP)” (as of Dec. 31, 2021: 72,150 shares / as of Mar. 31, 2021: 72,150 shares) are included in the number of treasury
shares at the end of the term. In addition, the shares in the Company possessed by Custody Bank of Japan, Ltd. (Trust E) are
included in the treasury shares to be deducted in the calculation of the average number of shares during the period (period
ended Dec. 31, 2021: 72,150 shares / period ended Dec. 31, 2020: 72,150 shares).
*Summary of financial results is out of scope of quarterly review by certified public accountant or audit corporation.
*Statement regarding the proper use of financial forecasts and other remarks
 Descriptions regarding the future, including the financial projections contained in this report, are based on certain
assumptions currently available to the Company, which are, at the discretion of the Company, deemed reasonable. Actual
financial results may significantly vary due to various factors. For assumptions used in forecasting financial results andprecautions in using the financial projections, please refer to “Analysis Concerning Future Forecasts Including
Consolidated Financial Projections” on page 3 of the Appendix.
 Please see our website for the schedule of information meeting for individual investors.

○Table of contents of the appendix

1. Analysis Concerning Results of Operations and Financial Condition .......................................................................................... 2(1)

Analysis of Results of Operations .................................................................................................................................. 2(2)

Analysis of Financial Condition..................................................................................................................................... 3(3)

Analysis Concerning Future Forecasts Including Consolidated Financial Projections .................................................. 3

2. Quarterly Consolidated Financial Statements and Important Notes ............................................................................................. 4(1)

Quarterly Consolidated Balance Sheets ......................................................................................................................... 4(2)

Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........................ 6(3)

Notes to the Quarterly Consolidated Financial Statements ............................................................................................ 8(Notes on going concern assumptions) ..................................................................................................................................... 8(Notes on significant change in shareholders’ equity) .............................................................................................................. 8(Changes in accounting policies) .............................................................................................................................................. 9(Changes in accounting estimates) ........................................................................................................................................... 9(Additional information) .........................................................................................................................................................10(Notes on Consolidated Statement of Income) ........................................................................................................................10(Segment information, etc.) ..................................................................................................................................................... 11
3. Other Information ........................................................................................................................................................................13
Significant Event Concerning the Going Concern Assumption ...................................................................................................13

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis of Results of Operations
In the first three quarters of the current fiscal year, the Japanese economy showed signs of recovery due to the gradualresumption of economic activity, but the rapid spread of the mutant Omicron strain of the COVID-19 in 2022, and theenforcement of priority measures to curb its spread and other measures to combat it, have made the outlook for the economic
activity extremely uncertain.
In this environment, all business segments of the Uchiyama Group took actions that reflected their impacts on business
operations while taking measures to stop the spread of infections the highest priority.
On the cost side, the Group has also sought to stabilize its performance by implementing of cost-cutting measures to improve
management efficiency.
As a result, sales for the first three quarters of the current fiscal year were 18,880,965 thousand yen, up 5.1% from one year
earlier. Operating income was 6,989 thousand yen (operating loss of 658,358 thousand yen for the same period a year earlier),
ordinary income was 276,289 thousand yen (ordinary loss of 399,825 thousand yen for the same period a year earlier), andprofit attributable to owners of parent was 22,920 thousand yen (loss attributable to owners of parent of 1,632,291 thousand
yen for the same period a year earlier). Furthermore, application of the Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29, March 31, 2020) reduced net sales by 19,211 thousand yen and operating income and ordinary income by
583 thousand yen respectively.
Business segment performance were as follows.
a. Nursing Care BusinessIn the nursing care business, three new fee-based, assisted-living nursing homes were opened, bringing the total number ofoperating business sites to 192 at 113 locations at the end of the third quarter of the year under review.
This business has been in collaboration with academic institutions and governments for many years. Although we havebeen holding down activities involving these collaborations because of the COVID-19 pandemic, we will continue to conduct
effective activities as much as possible.
We are actively accepting new residents of nursing care facilities while using thorough communications with individuals
and their families, hospitals and other parties in order to ensure the safety of everyone who relocates to one of our facilities.
As a result, the occupancy rate remained stable. The average occupancy rate at existing facilities in the first three quarters was
92.5% compared with 95.1% during the same period of the previous fiscal year.
To lower expenses, we hired more full-time employees, reduced the percentage of personnel from temporary staffing
companies and took other actions. Segment sales increased 2.8% to 15,435,036 thousand yen and segment income increased
0.6% to 1,246,279 thousand yen.
b. Karaoke Business
The business climate for the karaoke business remained challenging due to the repeated declarations of a state of emergency
and priority measures to curb the spread of the COVID-19, and restrictions on activities such as closure of stores or shorteningof business hours. Even after the lifting of these measures, the appearances of mutant strains of COVID-19 have delayed therecovery of customer traffic. Karaoke stores are implementing rigorous measures to improve the hygienic environment of
stores to prevent the spread of COVID-19 infections. Due to these challenges, segment sales fell 16.7% to 2,046,964 thousand
yen and segment loss decreased from 925,158 thousand yen to 619,582 thousand yen. The application of the new accounting
standard for revenue recognition reduced sales by 6,093 thousand yen and increased segment loss by 583 thousand yen.
During the first three quarters, the karaoke business closed five stores, resulting in 83 stores at the end of the third quarter.
c. Restaurant BusinessIn the restaurant business, as in the karaoke business, the business environment remained challenging because of the impactof the COVID-19 pandemic. As a result, net sales were down 28.2% to 199,798 thousand yen, and segment loss decreased
from 176,549 thousand yen to 108,866 thousand yen.
Two restaurants were closed in the first three quarters, resulting in 11 restaurants at the end of the third quarter.
d. Real Estate BusinessIn the real estate business, sales and profits increased in the first three quarters of the current fiscal year due to the sale oflarge properties for sale, in addition to brokerage services for rental properties. As a result, sales increased 822.0% to 1,108,415
thousand yen and segment income increased from 20,512 thousand yen to 265,916 thousand yen. Application of the revenue
recognition standard reduced segment sales by 13,117 thousand yen and had no effect on segment income.

2

e. Other businesses
The business climate for the hotel business continues to be challenging because of the pandemic, as in the karaoke andrestaurant businesses. Hotels are taking many actions to limit the impact of the COVID-19 pandemic and prevent the spreadof infection so that people can stay in our hotels with confidence. Segment sales fell 5.2% to 90,751 thousand yen, and thesegment loss decreased from 75,043 thousand yen to 74,414 thousand yen.

(2) Analysis of Financial Condition
Total assets at the end of the third quarter were 31,604,133 thousand yen, 1,853,967 thousand yen more than at the end of
the previous fiscal year.
Current assets increased 1,157,255 thousand yen to 16,732,259 thousand yen. The major reasons for this change were an
increase in cash and deposits, and decreases in real estate for sale and current assets (other).
Non-current assets increased 696,711 thousand yen to 14,871,874 thousand yen. The major reasons for this change wereincreases in buildings and structures, net, and land, and a decrease in property, plant, and equipment (other).
Liabilities at the end of the third quarter increased 1,894,492 thousand yen from the end of previous fiscal year to 17,970,192
thousand yen.
Current liabilities increased 1,623,774 thousand yen to 9,148,291 thousand yen mainly because of increases in short-termborrowings, current portion of long-term borrowings, and current liabilities (other), and a decrease in the provision for bonuses.
Non-current liabilities increased by 270,718 thousand yen to 8,821,900 thousand yen mainly because of increases in longterm borrowings and asset retirement obligations, and a decrease in bonds payable.
Net assets at the end of the third quarter decreased 40,525 thousand yen from the end of previous fiscal year to 13,633,941
thousand yen. The major reasons for this change were net profit attributable to owners of parent offset by a decrease due to thepayment of dividends. Application of the new revenue recognition standard reduced retained earnings at the beginning of the
fiscal year by 12,303 thousand yen.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
There is no forecast for consolidated results of operations for the fiscal year ending in March 2022 because it is impossibleat this time to determine the effects of the COVID-19 crisis. An announcement will be made promptly when it becomes possible
to determine a forecast.

3

2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2021
(As of March 31, 2021)

3Q of FY ending March 31, 2022
(As of December 31, 2021)

AssetsCurrent assets
Cash and deposits

10,869,891

12,863,851

Accounts receivable - trade
Merchandise

2,195,411
40,691

2,371,385
51,770Real estate for sale
Supplies

1,041,185
330

446,058
277

Other
Allowance for doubtful accounts

1,427,500(6)

998,959(43)

Total current assets

15,575,003

16,732,259

5,726,289
2,605,881

6,112,451
2,969,900

Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

605,173

333,878

8,937,345

9,416,229

54,91646,086

Other
Allowance for doubtful accounts

5,212,764(29,863)5,437,079(27,521)

Total investments and other assets

5,182,901

5,409,557

14,175,163

14,871,874

29,750,166

31,604,133

Total property, plant and equipment
Intangible assets
Investments and other assets

Total noncurrent assets
Total assets4

(Thousands of yen)
FY ended March 31, 2021
(As of March 31, 2021)

3Q of FY ending March 31, 2022
(As of December 31, 2021)

Liabilities
Current liabilities
Accounts payable - trade529,977

587,598

Short-term borrowings
Current portion of bonds payable

2,032,800
60,0003,075,000
60,000Current portion of long-term borrowings
Income taxes payable

2,659,081
262,558

2,991,679
194,850

Contract liabilities
Provision for bonuses

294,874

134,538
145,333

Provision for point card certificates
Provision for shareholder benefit program

116,140
16,365-

Asset retirement obligations
Other

32,7081,520,011

29,0001,930,290

Total current liabilities

7,524,517

9,148,291

Noncurrent liabilities
Bonds payable

120,000

90,000Long-term borrowings
Asset retirement obligations

7,279,808
298,573

7,360,929
467,064

Provision for share awards
Other

3,511
849,289

3,511
900,394

Total noncurrent liabilities

8,551,181

8,821,900

16,075,699

17,970,192

Shareholders’ equity
Share capital

2,222,935

2,222,935

Capital surplus
Retained earnings

2,664,695
9,983,960

2,664,695
9,897,562

Total liabilities
Net assets

Treasury shares(1,164,420)(1,164,420)

Total shareholders’ equity

13,707,171

13,620,772

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(32,210)(492)

13,186(17)

Total accumulated other comprehensive income(32,703)

13,169Total net assets

13,674,467

13,633,941

Total liabilities and net assets

29,750,166

31,604,133

Accumulated other comprehensive income5(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Income
For the first three quarters(Thousands of yen)First Three quarters of FY ended
First Three quarters of FY ending
March 31, 2021
March 31, 2022
(April 1, 2020 - December 31, 2020) (April 1, 2021 - December 31, 2021)

Net sales

17,972,126

18,880,965

Cost of sales

17,402,724

17,666,992

Gross profit

569,401

1,213,973

Selling, general and administrative expenses

1,227,760

1,206,983

Operating income (loss)(658,358)

6,989Interest income
Dividend income

7,971
34,176

8,965
13,205

Commission income
Insurance claim income

63,72990,12881,20895,150Subsidy income
Other

99,052
47,669108,248
65,052

Total non-operating income

342,727

371,831

Non-operating income

Non-operating expenses
Interest expenses

43,89045,118Loss on disaster
Other

31,716
8,588

51,578
5,834

Total non-operating expenses

84,194

102,531(399,825)

276,289

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

89,177942

2,000

Gain on insurance claims

Ordinary income (loss)
Extraordinary income

39,350-Subsidy income*1

60,671

898,997

Total extraordinary income

190,140

900,997

Extraordinary loss
Loss on retirement of noncurrent assets

-

2,941

Impairment losses
Loss on sale of shares of subsidiaries and associates

144,762-

189,607
5,873

Loss on temporary closure*2

289,166

556,075

433,929754,498

Income (loss) before income taxes

Total extraordinary loss

(643,614)

422,788

Income taxes-current
Income taxes-deferred

259,846
728,831

329,996
69,871

Total income taxes

988,677

399,867

Net income (loss)(1,632,291)

22,920Net profit (loss) attributable to owners of parent(1,632,291)

22,9206

Quarterly Consolidated Statement of Comprehensive Income
For the first three quarters(Thousands of yen)First Three quarters of FY ended
First Three quarters of FY ending
March 31, 2021
March 31, 2022
(April 1, 2020 - December 31, 2020) (April 1, 2021 - December 31, 2021)

Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income(1,632,291)

22,92021,04745,397

1,979

475

23,02645,872Comprehensive income(1,609,265)

68,793Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests(1,609,265)

68,793--7

(3) Notes to the Quarterly Consolidated Financial Statements(Notes on going concern assumptions)
Nothing is applicable.
(Notes on significant change in shareholders’ equity)
Nothing is applicable.

8(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition)
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020, referred to as “the revenue
recognition accounting standard” hereinafter) has been applied beginning with the first quarter of the fiscal year ending inMarch 2022. In accordance with this standard, the payment expected to be received in exchange for a product or service isrecognized as revenue when the control of the product or service is transferred to the customer.
In the Karaoke Business, members receive points based on the amount they spend and they can use their points at the rateof one point for one yen. In prior years, an allowance was maintained for expenses incurred in the future when members
use their points. Beginning with this fiscal year, points distributed to members are classified as a performance obligationand transaction prices are allocated based on the calculation of an independent sales price that takes into account expected
points that will not be used and other factors.
In the Real Estate Business, the entire amount of sales received from customers was recognized as revenue in prior years.
Beginning with this fiscal year, for transactions where Uchiyama acts as an agent for the provision of an asset or service toa customer, net revenue is recognized by deducting from gross revenue received from the customer the amount paid to theprovider of the asset or service.
Application of the revenue recognition accounting standard is performed in accordance with the transitional measures
stipulated in the proviso to paragraph 84 of this standard. The cumulative effect of the retroactive application of this new
standard in prior fiscal years, assuming the new accounting policy had been applied prior to the beginning of the firstquarter of the current fiscal year, was added to or subtracted from retained earnings at beginning of the first quarter of thecurrent fiscal year in order to apply the new accounting method to retained earnings starting at that time. However, the new
accounting policy has not been applied retroactively to contracts in which almost all earnings are recognized in accordancewith the previous method, which was used before the beginning of the first quarter of the current fiscal year by using themethod stipulated in paragraph 86 of the revenue recognition accounting standard. Moreover, for contract revisions
performed prior to the first quarter of the current fiscal year, accounting procedures are conducted in accordance with thecontractual terms after all revisions, and then the cumulative monetary effect is added to or subtracted from retained
earnings at beginning of the first quarter of the current fiscal year.
As a result, the application of the new accounting standard for revenue recognition reduced the first three quarters net sales
by 19,211 thousand yen, cost of sales by 18,627 thousand yen. At the same time, the new standard decreased the grossprofit, operating income, ordinary income and income before income taxes by 583 thousand yen each. In addition, the newstandard reduced retained earnings at beginning of the current fiscal year by 12,303 thousand yen.
Due to the application of the revenue recognition accounting standard, the provision for point card certificates in current
liabilities in the consolidated balance sheet for the previous fiscal year is included in contract liabilities beginning with thefirst quarter of the current fiscal year. In accordance with the transitional measures stipulated in paragraph 89-2 of therevenue recognition accounting standard, financial statements for the previous fiscal year have not been restated based on
this new presentation method. Furthermore, in accordance with the transitional measures stipulated in paragraph 28-15 of
the Accounting Standard for Quarterly Financial Statements (ASBJ Statement No. 12, March 31, 2020), information about
revenue derived from contracts with clients involving the first three quarters of the previous fiscal year is not shown
separately.
(Application of the Accounting Standard for Fair Value Measurement)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019) has been applied beginningwith the first quarter of the fiscal year ending in March 2022. In accordance with the transitional measures stipulated inparagraph 19 of this standard and in paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement
No. 10, July 4, 2019), the new accounting policies stipulated by the fair value measurement standard have been applied
prospectively. This accounting standard and policy have no effect on the quarterly consolidated financial statements.
(Changes in accounting estimates)
As for asset retirement obligation concerning obligation to restore site to its original condition under lease contracts, we haverevised our estimate for store restoration cost when a store is vacated based on the new information acquired on closure. The
increase due to the change in the estimate of 171,345 thousand yen is added to the asset retirement obligation balance before
the change.
Property, plant and equipment recorded as a result of this change has been treated as an impairment loss of 86,407 thousand
yen, and, as a result of this change in estimation, income before income taxes for the first three quarters of the current fiscal
year decreased 86,407 thousand yen.

9(Additional information)(Accounting estimates concerning the effect of COVID-19 pandemic)
There are no significant changes in the information concerning important accounting estimates in the Securities Report forthe previous fiscal year with regard to assumptions about changes in the severity of the pandemic, the end of the pandemic
and other items concerning this crisis.
(Notes on Consolidated Statement of Income)*1 Subsidy income
First three quarters of the previous fiscal year (April 1 to December 31, 2020)
Stores in the Uchiyama Group temporarily closed or reduced operating hours in response to requests from the Japanese
government and local governments due to the pandemic. Employment adjustment subsidies and other payments werereceived for payments made to employees who were furloughed due to the temporary closings and reduced operating
hours. These subsidies totaled 60,671 thousand yen and were classified as extraordinary income.
First three quarters of the current fiscal year (April 1 to December 31, 2021)
Stores in the Uchiyama Group temporarily closed or reduced operating hours in response to requests from the Japanese
government and local governments due to the pandemic. Subsidies have been received for cooperating with thesepandemic safety measures. In addition, employment adjustment subsidies and other payments were received for payments
made to employees who were furloughed due to the temporary closings and reduced operating hours. These subsidies
totaled 898,997thousand yen and were classified as extraordinary income.
*2 Loss on temporary closureFirst three quarters of the previous fiscal year (April 1 to December 31, 2020)
In response to requests from the national and local governments due to the pandemic, Uchiyama stores were temporarilyclosed or reduced operating hours. Fixed expenses (personnel expenses, rents, depreciation expenses and other expenses)
incurred during the temporary closure were classified as loss on temporary closure in extraordinary loss of 289,166
thousand yen.
First three quarters of the current fiscal year (April 1 to December 31, 2021)
In response to requests from the national and local governments due to the pandemic, Uchiyama stores were temporarilyclosed or reduced operating hours. Fixed expenses (personnel expenses, rents, depreciation expenses and other expenses)
incurred during the temporary closure were classified as loss on temporary closure in extraordinary loss of 556,075
thousand yen.

10

(Segment information, etc.)[Segment information]
I. First three quarters of the previous fiscal year (April 1 - December 31, 2020)
1. Information on sales and income or loss for each reporting segment(Thousands of yen)
Reporting segments
Nursing
Care
Business

KaraokeBusiness

15,021,608

Otherbusinesses(Note 1)

Total

Consolidated
statements ofincomeamount(Note 3)Adjustment
amount(Note 2)

Restaurant
Business

Real EstateBusiness

2,456,377

278,168

120,215

17,876,370

95,755

17,972,126-

17,972,126-

422

33,860900

35,182-35,182(35,182)-

15,021,608

2,456,799

312,029

121,115

17,911,553

95,75518,007,308(35,182)

17,972,126

1,239,191(925,158)(176,549)

20,512

157,996(75,043)

82,953(741,312)(658,358)

Total

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Notes) 1.The classification “other businesses” refers to business segments that are not included in reporting segments andincludes hotel business.
2. The segment income (loss) adjustments of -741,312 thousand yen includes 377,752 thousand yen in elimination ofintersegment transactions and -1,119,065 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly general and administrative expenses that are not allocated toreporting segments.
3. Segment income (loss) is adjusted with operating income in the consolidated statements of income.
2. Information on impairment loss of noncurrent assets, goodwill, etc. for each reporting segment(Significant impairment loss in noncurrent assets)
We booked a 104,319 thousand yen of impairment loss in the Karaoke business and a 40,443 thousand yen of impairment loss in
the Restaurant business in the first three quarters of the previous fiscal year.

11II. First three quarters of the current fiscal year (April 1 - December 31, 2021)
1. Information on sales and income or loss for each reporting segment(Thousands of yen)
Reporting segments
Nursing
Care
Business

KaraokeBusiness

15,435,036

Otherbusinesses(Note 1)

Total

Consolidated
statements ofincomeamount(Note 3)Adjustment
amount(Note 2)

Restaurant
Business

Real EstateBusiness

2,046,964

199,798

1,108,415

18,790,214

90,751

18,880,965-

18,880,965-

133

31,006900

32,039-32,039(32,039)-

15,435,036

2,047,097

230,805

1,109,315

18,822,254

90,751

18,913,005(32,039)

18,880,965

1,246,279(619,582)(108,866)

265,916

783,746(74,414)709,332(702,342)

6,989

Total

Sales
Sales to externalcustomers
Internal sales ortransferred
amount among
the segments
Total
Segment income(loss)(Notes) 1.The classification “other businesses” refers to business segments that are not included in reporting segments andincludes hotel business.
2. The segment income (loss) adjustments of -702,342 thousand yen includes 380,056 thousand yen in elimination ofintersegment transactions and -1,082,399 thousand yen in company-wide expenses that are not allocated to reporting
segments. The company-wide expenses are mainly general and administrative expenses that are not allocated toreporting segments.
3. Segment income (loss) is adjusted with operating income in the consolidated statements of income.
2. Item concerning change in reportable segments
As was explained in the section concerning the changes in accounting policies, the Accounting Standard for Revenue
Recognition has been applied beginning with the first quarter of the fiscal year ending in March 2022. Due to the resulting
revision in the accounting method used for the recognition of revenue, the method for calculating segment income or loss haschanged in the same way.
Compared with the previous method, this change reduced sales by 6,093 thousand yen and increased the segment loss by 583
thousand yen in the Karaoke Business segment and reduced sales by 13,117 thousand yen in the Real Estate Business segment
but had no effect on segment income in this segment.

3. Information on impairment loss of noncurrent assets, goodwill, etc. for each reporting segment(Significant impairment loss in noncurrent assets)
We booked a 160,970 thousand yen of impairment loss in the Karaoke business and a 28,636 thousand yen of impairment loss
in the Restaurant business in the first three quarters of the current fiscal year.

123. Other Information
Significant Event Concerning the Going Concern Assumption
In response to states of emergency declared by the national and local governments, Uchiyama Group stores were temporarilyclosed or reduced operating hours and there were other effects of the pandemic. Although the Group recorded operating income,ordinary income, and net profit attributable to owners of the parent in the first three quarters of the current fiscal year, net sales
continued to decline significantly, as in the previous fiscal year. Restrictions on economic activity are expected to be graduallyeased along with progress in vaccinations but the COVID-19 pandemic is not yet under control and the future remains uncertain.
Consequently, there are events or circumstances that may raise significant doubts about the going concern assumption.
In business operations, there are numerous cost-cutting measures, including the closing of some stores and reducing all categories
of fixed expenses. In addition, as consumers and companies are expected to remain cautious about expenditures and investments
during the pandemic and for a while after the pandemic ends, we are working to create new formats for business activities,business models and products that reflect new life styles.
There are no significant concerns about liquidity because we have sufficient funds for the time being due to cash and deposits of
12,863,851 thousand yen at the end of the third quarter and an overdraft facility with 8,135,000 thousand yen of available credit.
For these reasons, we believe there is no significant uncertainty about the going concern assumption.

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