Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2020
[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 3, 2019
Scheduled Date of Financial Statements Filing: November 13, 2019
Supplementary materials for Financial Results: Yes
Investor conference for Financial Results: Yes (For institutional investors and security analysts)

November 12, 2019
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, 2020 (April 1, 2019 – September 30, 2019)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

FY 2020 2Q
16,573
23.5
1,017
104.8
FY 2019 2Q
13,421
2.4
497(13.8)(Note) Comprehensive income
FY 2020 2Q: ¥795 million (72.6%)
Net income
per share
FY 2020 2Q
FY 2019 2Q%

Millions of yen

%

1,134
84.4
735
615
(8.1)
452
FY 2019 2Q: ¥461 million (2.8 %)

62.5
2.1

Diluted net income per
share
Yen

Yen

38.03
23.40

-

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2020 2Q
FY 2019(Reference) Equity capital:

Millions of yen

Equity ratio

Millions of yen

29,68930,072
FY 2020 2Q: ¥16,928 million%

16,92857.0
16,22954.0
FY 2019: ¥16,229 million

2. Dividends
End of the 1Q

Dividends per share
End of the 3Q

End of the 2Q

Yen

FY 2019
FY 2020
FY 2020 (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, 2020 (April 1, 2019 - March 31, 2020)(% of change from previous year for full year)

Net sales
Millions of yen

Operating income%

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Full year
30,87313.5
1,909(Note) Changes from the latest financial forecast: None

86.1

Millions of yen

1,899

%

43.2

Millions of yen

1,244

Net income
per share

%

Yen

12.9

64.38

*Notes(1) Changes in significant subsidiaries (changes of specified subsidiaries resulting in changes in scope of consolidation) during
the current term: None
(2) 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 2020 2Q

21,618,800 shares

FY 2019

21,618,800 shares

FY 2020 2Q

2,287,777 shares

FY 2019

2,287,777 shares

FY 2020 2Q

19,331,023 shares

FY 2019 2Q

19,331,024 shares

Note: The shares in the Company possessed by Trust & Custody Services Bank, Ltd. (Trust E) as a trust asset of the “stock
benefit trust (J-ESOP)” (fiscal year ending March 31, 2020 2Q: 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 theaverage number of shares during the fiscal year (fiscal year ending March 31, 2020 2Q: 72,150 shares / fiscal year ended
March 31, 2019 2Q: 0 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 4 of the Appendix.
 We plan to hold a financial results briefing for institutional investors and analysts on November 25, 2019. We plan to
publish an overview of the briefing and its contents (audio) on our website promptly after we hold it together with thefinancial results explanatory documents we will use on the 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(Additional information) ......................................................................................................................................................... 11(Segment information, etc.) .....................................................................................................................................................121

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
The Japanese economy during the current consolidated cumulative second quarter was rebounding slowly in general
thanks to the improved corporate earnings and employment environment; however, uncertain factors, such as the prolonged
trade war between the United States and China and the consumption tax increase, continue to make it difficult to foresee thefuture.
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 16,573,677 thousand yen (up 23.5%
Year-on-Year (YoY)), operating income was 1,017,761 thousand yen (up 104.8% YoY), ordinary income was 1,134,415
thousand yen (up 84.4% YoY), and profit attributable to owners of parent was 735,177 thousand yen (up 62.5% YoY).
The results of each segment were as follows.
a. Nursing Care BusinessIn the Nursing Care Business, we opened a new home-visit nursing station called Sawayaka Home-visit Nursing Station
Beppu (Beppu City, Oita Prefecture) in July. As a result, we have 180 sales bases in 102 locations as of the end of thissecond quarter. Regarding the existing facilities, we promoted the cementing of cooperation with nearby hospitals and homecare support offices by visiting them in an effort to reduce the number of vacant rooms at its facilities. Furthermore, we
strived to improve its service level through employee education and training.
In addition, we continued to promote industry-academia-government collaboration in this consolidated fiscal year. We
strived to train in-house qualified oral care certified persons in cooperation with Kyushu Dental University. Improving oral
care promotes the prevention of diseases such as aspiration pneumonia.
We conducted nursing care staff behavior analysis verification tests using IoT technology in cooperation with Kyushu
Institute of Technology. We would also like to utilize AI to contribute to the reform in the work styles of personnel based on
the results of these experiments.
We have developed 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.
Currently, we are stepping up activities in order to make the life map available in a wider area.
The average occupancy ratio of existing facilities was 94.2% for this second quarter (which was 96.4% in the same periodof a year earlier). As a result, sales were 9,434,782 thousand yen (up 7.1% YoY) and segment income was 680,506 thousandyen (down 1.9% YoY).
b. Karaoke BusinessWe strived to increase the unit price by enhancing our food menu and lunch menu in the Karaoke Business, and theaverage spend per customer rose 4.2% from the same period of the previous year. In addition, we continued to look toincrease repeat customers by strengthening acquisition of SNS members and by distributing coupons. Nevertheless,customer traffic was slow. This was due to the impact of natural disasters. There was severe rainfall in the northern part of
Kyushu in August and then there was a large typhoon that directly hit the Tokyo metropolitan area in September. As a result,sales were 3,484,623 thousand yen (down 3.3% YoY) and segment income was 381,755 thousand yen (up 3.8% YoY).
We newly opened a store and closed three stores in the current second quarter. As a result, the number of stores is 89 as ofthe end of the second quarter of this consolidated fiscal year.
c. Restaurant Business
For the Restaurant Business segment, there was not any opening of new stores, and we have closed one store. Accordingly,

2the number of stores as of the end of the second quarter of this consolidated fiscal year is 16 inside Japan, and 2 outside
Japan. As for existing restaurants, customers were decreasing, and so we strived to increase them with a limited offer.
However, the number of customers we attracted greatly decreased. This was due to the impact of natural disasters in Augustand September in the same way as with the Karaoke Business. As a result, sales were 677,635 thousand yen (down 14.5%
YoY) and segment income was 15,450 thousand yen (down 20.1% YoY).
d. Real Estate BusinessIn 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 2,872,262 thousand yen (107,945 thousand yen at the same period of
the previous year) and segment income was 537,756 thousand yen (19,424 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 in the same way as with the Karaoke Business and Restaurant Business. As a result, sales
were 104,373 thousand yen (down 3.8% YoY) and segment loss was 37,749 thousand yen (segment loss was 25,085
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 29,689,544 thousand yen, down
382,490 thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 15,287,039 thousand yen, down 262,491 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because real estate for sale decreased and cash and deposit increased.
Noncurrent assets came to 14,402,505 thousand yen, down 119,999 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because buildings and structures and investments and other assets (other) decreased and property,
plant and equipment (other) increased.
Liabilities as of the end of the second quarter of this consolidated fiscal year came to 12,760,725 thousand yen, down
1,081,410 thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 5,971,866 thousand yen, down 784,982 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because current portion of long-term loans payable and current liabilities (other) decreased andshort-term loans payable increased.
Noncurrent liabilities came to 6,788,859 thousand yen, down 296,427 thousand yen from the end of the previous
consolidated fiscal year. This is mainly because long-term loans payable and noncurrent liabilities (other) decreased.
Net assets as of the end of the second quarter of this consolidated fiscal year came to 16,928,819 thousand yen, up 698,919
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 due to cash dividends paid.
2) Situation of cash flow
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the second quarter of this consolidated fiscal
year stood at 10,778,396 thousand yen, up 1,922,310 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 provided by operating activities were 2,796,724 thousand yen (funds used in the previous year were 1,448,813
thousand yen). The major breakdown of income was 1,123,415 thousand yen of income before income taxes, 366,552

3thousand yen of depreciation and amortization, and 2,272,634 thousand yen of decrease in inventories. The major
breakdown of expenditure was 295,265 thousand yen of decrease in other current liabilities and 435,727 thousand yen ofincome taxes paid.
(Cash flow from investing activities)
Funds used by investing activities were 347,831 thousand yen (funds used in the previous year were 1,056,570
thousand yen). The major breakdown of expenditure was 568,065 thousand yen of purchase of property, plant andequipment and 104,163 thousand yen of purchase of insurance funds. The major breakdown of income was 354,176
thousand yen of proceeds from sales of investment securities.
(Cash flow from financing activities)
Funds used in financing activities were 527,844 thousand yen (funds used in the previous year were 50,429 thousandyen). The major breakdown of expenditure was 1,471,332 thousand yen of repayment of long-term loans payable and141,034 thousand yen of repayments of installment payables. The major breakdown of income was 331,600 thousand yenof increase in short-term loans payable and 880,000 thousand yen of proceeds from long-term loans payable.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2020, there are no changes to the estimated values
announced on May 10, 2019.

4

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2019
(As of March 31, 2019)

2Q of FY ending March 31, 2020
(As of September 30, 2019)

AssetsCurrent assets
Cash and deposits

9,159,666

11,089,433

Notes and accounts receivable-trade
Merchandise

2,088,868
53,6672,245,573
50,599Real estate for sale
Supplies

3,255,629
262

986,074407

997,447(6,010)923,459(8,508)15,549,530

15,287,039

5,484,524
2,776,844

5,422,178
2,805,165

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

566,688734,948

8,828,058

8,962,292

62,00355,175

Other
Allowance for doubtful accounts

5,655,066(22,624)

5,407,104(22,066)

Total investments and other assets

5,632,442

5,385,037

14,522,504

14,402,505

30,072,034

29,689,544

632,235

567,915

357,000
60,000688,600
60,0002,673,723
445,158

2,268,390
349,443

Provision for bonuses
Provision for point card certificates

241,764
89,429245,830
95,879Provision for shareholder benefit program
Asset retirement obligation

13,095
16,411-Other

2,228,031

1,695,807

Total current liabilities

6,756,849

5,971,866

240,000

210,000

Long-term loans payable
Asset retirement obligation

5,612,131
212,532

5,426,132
214,014

Provision for stock benefit
Other1,020,622

2,503
936,209

Total noncurrent liabilities

7,085,286

6,788,859

13,842,135

12,760,725

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

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

Total liabilities

5

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

2Q of FY ending March 31, 2020
(As of September 30, 2019)

Net assets
Shareholders’ equity
Capital stock
Capital surplus

2,222,935
2,664,695

2,222,935
2,664,695

Retained earnings
Treasury stock

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

13,238,910(1,164,420)

Total shareholders’ equity

16,323,959

16,962,121

Accumulated other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Foreign currency translation adjustment(94,272)(32,753)

212

(548)

Total accumulated other comprehensive income(94,059)(33,302)

Total net assets

16,229,899

16,928,819

Liabilities and net assets

30,072,034

29,689,544

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, 2019

2Q of FY ending March 31, 2020

(April 1, 2018 - September 30, 2018)(April 1, 2019 - September 30, 2019)

Net sales

13,421,284

16,573,677

Cost of sales

12,049,013

14,689,000

Gross profit

1,372,270

1,884,676

Provision for bonuses
Taxes and dues

7,170
298,687

8,565
257,301

Other569,398

601,048

Total selling, general and administrative expenses

Selling, general and administrative expenses

875,255

866,915

Operating income (loss)

497,0141,017,761

Non-operating income
Interest income

2,641

3,786

Dividends income
Commission fee

2,324
78,375

15,68353,263

Subsidy income
Other

22,41764,06644,685
48,123

Total non-operating income

169,825

165,542

33,287
18,21931,13817,749Non-operating expenses
Interest expenses
Other
Total non-operating expenses

51,506

48,887615,333

1,134,415

Insurance income

73,001-

Total extraordinary income

73,001-

Loss on retirement of noncurrent assets
Impairment loss

10,351

11,000-Loss on disaster

12,146-

Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary loss

22,497

11,000

Income before income taxes

665,837

1,123,415

Income taxes-current
Income taxes-deferred

146,858
66,647

298,61489,622

Total income taxes

213,505

388,237

Net income

452,331

735,177

Net profit attributable to owners of parent

452,331

735,1777

Consolidated Statements of Comprehensive Income
The second quarter of this consolidated fiscal year
(Thousands of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

2Q of FY ended March 31, 2019

2Q of FY ending March 31, 2020

(April 1, 2018 - September 30, 2018)(April 1, 2019 - September 30, 2019)452,331

735,177

8,276

61,518

601

(760)

8,877

60,757

Comprehensive income

461,208

795,935

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

461,208

795,935--8

(3) Consolidated Statements of Cash Flows(Thousands of yen)
2Q of FY ended March 31, 2019
2Q of FY ending March 31, 2020
(April 1, 2018 - September 30, 2018) (April 1, 2019 - September 30, 2019)

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization

665,837
453,168

1,123,415
366,552

Impairment loss
Increase (decrease) in allowance for doubtful accounts

10,351(2,621)

1,940

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in allowance for shareholders’benefits
Increase (decrease) in allowance for stock benefit
Loss on retirement of noncurrent assets

2,837

4,065

(23,350)

6,450(12,397)(13,095)-

2,503
11,000Insurance income
Loss on disaster(73,001)
12,146-

Interest and dividends income
Interest expenses paid
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories(4,965)33,287(19,470)
31,138(172,899)(156,704)(2,044,334)

2,272,634

Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts(110,689)(46,341)(163,940)(64,589)

Increase (decrease) in other current liabilities
Other

65,112(71,255)(295,265)
31,438(1,319,116)

3,138,074

Interest and dividends income received
Interest expenses paid

3,094
(32,797)

16,498(31,454)

Amount of insurance income
Income taxes paid

73,001(275,355)(435,727)

Income taxes refund

102,360

109,333(1,448,813)

2,796,724(1,024,203)(568,065)(313)-

354,176(22,233)(16,900)(130,215)
130,210(130,226)
130,221

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments of loans receivableCollection of loans receivable(32,873)(48,344)

77,90594,297(7,092)
21,353(83,203)
24,376

Purchase of insurance funds
Proceeds from cancellation of insurance funds(101,156)
44,246(104,163)-

Other(12,198)-(1,056,570)(347,831)

Subtotal

Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Expenditure due to performance of asset retirement
obligation
Payments into time deposits
Proceeds from withdrawal of time deposits

Net cash provided by (used in) investment activities

9(Thousands of yen)
2Q of FY ended March 31, 2019
2Q of FY ending March 31, 2020
(April 1, 2018 - September 30, 2018) (April 1, 2019 - September 30, 2019)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable(435,204)
1,945,000

331,600
880,000

Repayment of long-term loans payable
Redemption of bonds(1,267,837)-(1,471,332)(30,000)

Repayments of installment payables
Cash dividends paid

(195,524)(96,862)(141,034)(97,077)

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
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of term

10

(0)

-

(50,429)(527,844)(1,312)

1,260(2,557,126)

1,922,310

9,034,813

8,856,086

6,477,687

10,778,396

(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.
(Additional information)(Transactions to provide our own shares to employees through a trust)
We introduced a stock benefit trust (J-ESOP) system (hereinafter “this system”) incentive plan to offer our own shares to
employees (including the employees of our subsidiaries; hereinafter the same) at a Board of Directors’ meeting held on August
10, 2018. This aims to further enhance the interrelation between our stock price and performance and the treatment of ouremployees while improving their motivation to improve our performance.
(1) Overview of transactions
This system is a mechanism to offer our own shares to employees who satisfy certain requirements based on the stock benefit
regulations we have established in advance. We have acquired the shares to be offered to our employees, including those for the
future, through a trust (hereinafter “this 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 are 35,137 thousand yen
and 35,137 thousand yen as of the end of the previous consolidated fiscal year and as of the end of the second quarter of thisconsolidated fiscal year, respectively, and the number of shares is 72,150 and 72,150 as of the end of the previous consolidated
fiscal year and as of the end of the second quarter of this consolidated fiscal year, respectively.

11

(Segment information, etc.)[Segment information]
I. Cumulative period through the consolidated second quarter of the previous fiscal year (April 1 - September 30, 2018)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Consolidated

Other
businesses

Nursing Care

Karaoke

Restaurant

Real EstateBusiness

Business

Business

Business

8,809,339

3,603,390

792,099

-

5,221

Total

8,809,339

Segment income (loss)

693,910

Total

Adjustment statements ofamount*2

incomeTotal(Note) *1

107,945

13,312,775

108,508

13,421,284-

13,421,284

23,282600

29,103-

29,103(29,103)-3,608,611

815,381108,545

13,341,878

108,508

13,450,387(29,103)

13,421,284

367,682

19,336

19,424

1,100,353(25,085)

1,075,267(578,252)

497,014amount*3

Sales
Sales to externalcustomers
Internal sales ortransferred amountamong the segments(Note) 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 amount, -578,252 thousand yen, includes 242,603 thousand yen inelimination of intersegment transactions and -820,856 thousand yen in company-wide expenses that are not allocatedto reporting segments. The company-wide expenses are mainly selling, general and administrative expenses that are
not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in the consolidated statements of income.
2. Information on impairment of noncurrent assets, goodwill, etc. for each reporting segment(Significant impairment of noncurrent assets)
In the current consolidated cumulative second quarter, the company recorded impairment loss of 3,917 thousand yen in
the “Karaoke Business” segment and that of 6,433 thousand yen in the “Restaurant Business” segment as for stores that it
closed and ones that it planned to close.

12II. Cumulative period through the consolidated second quarter of current fiscal year (April 1 - September 30, 2019)
1. Information on sales, profits or losses, assets, liabilities, and other items for each segment(Thousands of yen)
Reporting segments

Consolidated

Other
businesses

Nursing Care

Karaoke

Restaurant

Real Estate

Total(Note) *1

Total

Adjustment statements ofamount*2

incomeamount*3

Business

Business

Business

Business

9,434,782

3,484,623

677,635

2,872,262

16,469,303

104,373

16,573,677-

16,573,677

-

5,655

22,468600

28,724

3

28,727(28,727)-

Total

9,434,782

3,490,278

700,104

2,872,862

16,498,028

104,376

16,602,404(28,727)

16,573,677

Segment income (loss)

680,506

381,755

15,450537,756

1,615,467(37,749)

1,577,718(559,957)

1,017,761

Sales
Sales to externalcustomers
Internal sales ortransferred amountamong the segments(Note) 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 amount, -559,957 thousand yen, includes 273,769 thousand yen inelimination of intersegment transactions and -833,726 thousand yen in company-wide expenses that are not allocatedto reporting segments. The company-wide expenses are mainly selling, general and administrative expenses that are
not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating income calculated in the consolidated statements of income.
2. Information on impairment of noncurrent assets, goodwill, etc. for each reporting segment
Nothing is applicable.

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