Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2017
[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:
Scheduled Date of Financial Statements Filing:
February 14, 2017
Supplementary materials for Financial Results: None
Investor conference for Financial Results: None

February 10, 2017
Stock Listing: TSE(Amounts are rounded down to the nearest one million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2017 (April 1, 2016 – December 31, 2016)(% of change from previous year)(1) Consolidated Financial Results
Profit attributable to
Net sales
Operating income
Ordinary income
owners of patentMillions of yen%

Millions of yen%

FY 2017 3Q
18,816
5.0
602
161.8
FY 2016 3Q
17,9131.5
230(81.0)(Note) Comprehensive income
FY 2017 3Q: ¥518 million (-28.9%)
Net income
per share
FY 2017 3Q
FY 2016 3Q

Millions of yen%

Millions of yen

%

768
132.4
512
330
(75.6)
778
FY 2016 3Q: 728 million (-10.2%)(34.2)(3.1)

Diluted net income per
share
Yen

Yen

26.42
36.07

26.38
36.02

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

FY 2017 3Q
FY 2016(Reference) Equity capital:

Equity ratio

Millions of yen

31,35530,912
FY 2017 3Q: ¥15,257 million%

15,25748.7
15,28549.4
FY 2016: ¥15,284 million

2. Dividends
Dividends per share
End of the 1Q

End of the 2Q

Yen

FY 2016－
FY 2017－
FY 2017 (forecast)(Note) Changes from the latest dividend forecast: None

Year-end

End of the 3Q

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, 2017 (April 1, 2016 – March 31, 2017)(% of change from previous year for full year)

Net sales
Millions of yen

Operating income%

Millions of yen

Full year
25,6187.2
898(Note) Changes from the latest financial forecast: None

Profit attributable toowners of patent

Ordinary income
%

597.8

Millions of yen

907

%

179.5

Millions of yen

614

Net income
per share%Yen(37.5)

30.77

*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:
None4) Restatements:
None
Note: For details, please see the section “2. Notes on Summary Information (Notes) (3) Changes in Accounting Policies,
Changes in Accounting Estimates, and Restatement” on page 4 of the Appendix.
(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

FY 2017 3Q

21,618,800 shares

FY 2016

21,618,800 shares

FY 2017 3Q

2,287,776 shares

FY 2016

1,652,676 shares

FY 2017 3Q

19,382,843 shares

FY 2016 3Q

21,584,544 shares* Information Regarding Implementation of Auditing Procedures

The auditing procedures of the Financial Instruments and Exchange Act do not apply to this financial notice, and at thetime of release it is being audited using procedures for financial statements.

* 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.
 A meeting for explaining the businesses and results to individual investors will be held when necessary. For the schedule ofthe meeting, etc., please see the website of the company.

○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 ........................................................... 3
2. Notes on Summary Information (Notes) ...................................................................................................................................... 4(1) Important Transfers in Subsidiaries during the Consolidated Cumulative Third Quarter of This Fiscal Year ......................... 4(2) Special Accounting Policies Applied in Preparation of the Quarterly Consolidated Financial Statements ............................. 4(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement .......................................................... 4(4) Additional Information ........................................................................................................................................................... 4
3. Consolidated Financial Statements ............................................................................................................................................... 5(1) Consolidated Balance Sheets .................................................................................................................................................. 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .............................................. 7(3) Notes Regarding Consolidated Financial Statements .............................................................................................................. 9(Notes regarding premise of a going concern) .......................................................................................................................... 9(Notes on significant changes in the amount of shareholders’ equity) ...................................................................................... 9(Segment information, etc.) .....................................................................................................................................................10

1

1. Analysis Concerning Results of Operations and Financial Condition(1) Analysis Concerning Results of Operations
Future-related items mentioned in this document are based on the information available at our corporate group as of thelast day of the current quarter of the consolidated accounting period, and include uncertain contents. Please keep in mind thatthey may be different from actual results.
(1) Performance situation
In the third quarter of the current consolidated fiscal year, the Japanese economy saw the signs of recovery in productionand export as the yen got weaker and the stock market was healthy, and business confidence is improving.
On the other hand, consumer spending is sluggish and there are the fluctuation risks of the financial markets due to theeffects of the U.S. presidential election, and so the economic outlook remains uncertain.
Amid this business environment, our corporate group has carried out sales activities, etc. actively based on our businessstrategies in each segment. In addition, we made efforts to improve the added values of our services, by planning andimplementing various measures for boosting synergetic effects among Nursing Care, Karaoke, and Restaurant Businesses.
As for expenditures, we streamlined our business administration by reducing costs, to stabilize our business performance.
As a result, sales of the third quarter of the current consolidated fiscal year were 18,816,837 thousand yen (up 5.0% Yearon-Year (YoY)), operating income was 602,585 thousand yen (up 161.8% YoY), and ordinary income was 768,299 thousandyen (up 132.4% YoY). In the third quarter of the previous consolidated fiscal year, there was an extraordinary income of
905,725 thousand yen from the sale and leaseback of two paid elderly nursing home, and proceeds on sale of noncurrent
assets, including karaoke equipment and land. However, in the third quarter of the current consolidated fiscal year, as there
was an extraordinary income of 48,166 thousand yen, profit attributable to owners of patent decreased by 266,499 thousand
yen to 512,100 thousand yen (down 34.2% YoY).
The results of each segment were as follows.
1) Nursing Care Business
For the Nursing Care Business segment, our corporate group established 2 paid nursing homes that offer nursing-careservices, 1 group home, 2 short-stay offices, and 6 day service centers for after school support for children with disabilities,
and also its first office, “Home Nursing Station Yahata” in September. We also carried out our business actively, by
acquiring the company that operates a group home and day services in Okayama-shi, Okayama Prefecture. As a result, thenumber of sales footholds as of the end of the third quarter is 81 (149 offices). At existing facilities, we aimed to stabilize
occupancy ratio and reduce the number of vacant rooms by promoting the cementing of cooperation with nearby hospitals
and home care support offices by visiting them. We also announced that we would welcome elderly victims of the
Kumamoto Earthquake, which occurred in mid April, free of charge, and a total of 38 victims moved into our facilities. As aresult, sales were 10,710,524 thousand yen (up 12.6% YoY) and segment income was 780,638 thousand yen (up 87.8%
YoY).
2) Karaoke Business
For the Karaoke Business segment, we strived to acquire customers for all-you-can-drink courses, etc. and mobile-service
members for smartphones, to increase repeat customers, and utilized the informative websites for restaurants actively, toattract customers. However, in the wake of the Kumamoto Earthquake in April, 3 restaurants in Kumamoto Prefecture wereclosed for about 1 week, and customers in the entire Kyushu region decreased. As a result, sales were 6,126,417 thousandyen (down 5.5% YoY) and segment income was 553,976 thousand yen (up 5.8% YoY). In the third quarter of the current
consolidated fiscal year, we opened one new stores in Fukuoka prefecture and closed two store. Accordingly, the number ofstores is 96 as of the end of this quarter.
3) Restaurant Business
For the Restaurant Business segment, 2 restaurants were opened, 2 restaurants changed its business type, and 3 restaurants2were closed down. Consequently, the number of restaurants as of the end of the third quarter is 24 in Japan, and 3 outside
Japan. As for existing restaurants, customers were decreasing, and so we strived to increase them with a limited offer, andmade efforts to meet the demand for banquets, etc. by visiting each enterprise, to increase corporate customers. However,
one restaurant was closed for about 1 week due to the Kumamoto Earthquake, like the Karaoke Business, and the number ofcustomers was on a decline. As a result, sales were 1,393,287 thousand yen (down 4.9% YoY) and segment loss was 21,623
thousand yen (segment loss was 23,045 thousand yen during the same term last year).
4) Real Estate Business
For the Real Estate Business segment, our corporate group’s core businesses activities are sales/purchase of real estate
properties for sale and intermediary work for rental properties. As a result, sales were 406,343 thousand yen (up 56.2%
YoY) and segment income was 96,093 thousand yen (up 36.3% YoY).
5) Other businesses
In the Other businesses segment, the company made efforts to increase guests, secure bookings for parties, promote day
trips for bathing, etc. in the hotel business. However, in April the business was greatly affected by the Kumamoto
Earthquake, and the number of guests decreased. As a result, sales were 180,263 thousand yen (down 10.1% YoY) andsegment loss was 19,652 thousand yen (segment loss was 4,939 thousand yen during the same term last year).

(2) Analysis Concerning Financial Situation
Total assets as of the end of the third quarter of this consolidated fiscal year came to 31,355,559 thousand yen, up 443,150
thousand yen from the end of the previous consolidated fiscal year.
Current assets came to 13,199,095 thousand yen, down 899,820 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because cash and deposit and current assets (other) decreased.
Noncurrent assets came to 18,156,464 thousand yen, up 1,342,971 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because buildings and structures and land increased.
Liabilities as of the end of the third quarter of this consolidated fiscal year came to 16,098,533 thousand yen, up 471,880
thousand yen from the end of the previous consolidated fiscal year.
Current liabilities came to 6,590,107 thousand yen, up 157,579 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because notes and accounts payable-trade and current liabilities (other) increased.
Noncurrent liabilities came to 9,508,426 thousand yen, up 314,300 thousand yen from the end of the previous consolidated
fiscal year. This is mainly because long-term loans payable increased.
Net assets as of the end of the third quarter of this consolidated fiscal year came to 15,257,026 thousand yen, down 28,729
thousand yen from the end of the previous consolidated fiscal year. This is mainly because retained earnings arising fromprofit attributable to owners of parent and treasury stock increased.
Consequently, the equity ratio as of the end of the third quarter of this consolidated fiscal year was 48.7%.
As for the liquidity of funds, the current ratio as of the end of the third quarter of this consolidated fiscal year was 200.3%.
We will boost this ratio, in order to secure sufficient liquidity.

(3) Analysis Concerning Future Forecasts Including Consolidated Financial Projections
As for the consolidated financial projections for the term ending March 2017, there are no changes to the estimated values
announced on May 10, 2016.

3

2. Notes on Summary Information (Notes)(1) Important Transfers in Subsidiaries during the Consolidated Cumulative Third Quarter of This Fiscal Year
None(2) Special Accounting Policies Applied in Preparation of the Quarterly Consolidated Financial Statements
None(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement(Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
In line with a revision of corporation tax law, “Practical Solution on a Change in Depreciation Method due to Tax Reform
2016” (Practical Solution Report No.32 of June 17, 2016) has been applied since the first quarter. Along with this, thedepreciation method for facilities attached to buildings and structures that were acquired after April 1, 2016 has been changed
from the declining balance method to the straight-line method.
The impact of this change on consolidated financial statements for the current third quarter is minor.

(4) Additional Information(Application of the Implementation Guidance on Recoverability of Deferred Tax Assets)“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26 of March 28, 2016)” hasbeen applied since the first quarter of this consolidated fiscal year.

43. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY ended March 31, 2016
(As of March 31, 2016)

3Q of FY ending March 31, 2017
(As of December 31, 2016)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise
Real estate for sale
Supplies
Other
Allowance for doubtful accounts

9,771,970

9,146,381

1,551,065-

1,737,974
5,007

64,795
948,994

98,514
1,022,092

39
1,773,223

174
1,199,866(11,173)(10,915)

14,098,916

13,199,095

7,494,227

8,456,932

Land
Other, net

3,346,595
1,114,630

3,636,084
1,154,341

Total property, plant and equipment

11,955,453

13,247,358

55,202

49,6954,890,712(87,875)

4,935,997(76,586)

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

4,802,837

4,859,410

16,813,493

18,156,464

30,912,409

31,355,559

343,831
819,813414,109844,600

35,0002,371,843

17,5002,417,535

Income taxes payable
Provision for bonuses

107,819
217,384

92,666
118,398

Provision for point card certificates
Provision for shareholder benefit program

387,858
10,175

282,053-

Asset retirement obligation
Other

8,333
2,130,468

12,2682,390,975

Total current liabilities

6,432,527

6,590,107

Noncurrent liabilities
Long-term loans payable

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

7,032,679

7,663,728

Asset retirement obligation
Other

199,340
1,962,105

213,890
1,630,806

Total noncurrent liabilities

9,194,125

9,508,426

15,626,653

16,098,533

Total liabilities

5

(Thousands of yen)
FY ended March 31, 2016
(As of March 31, 2016)

3Q of FY ending March 31, 2017
(As of December 31, 2016)

Net assets
Shareholders' equity
Capital stock

2,222,935

2,222,935

Capital surplus
Retained earnings

2,676,892
11,213,028

2,676,892
11,528,643

Treasury stock(815,511)(1,166,007)

Total shareholders' equity

15,297,345

15,262,464(13,186)(5,714)650

276(12,536)(5,438)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeNon-controlling interests in income

946-

Total net assets

15,285,755

15,257,026

Liabilities and net assets

30,912,409

31,355,559

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
The third quarter of this consolidated fiscal year
(Thousands of yen)
3Q of FY ended March 31, 2016
(April 1, 2015- December 31, 2015)

3Q of FY ending March 31, 2017
(April 1, 2016- December 31, 2016)

Net sales

17,913,472

18,816,837

Cost of sales

16,520,955

16,925,609

Gross profit

1,392,516

1,891,228

Selling, general and administrative expenses

1,162,306

1,288,642

230,209602,585

Interest income
Dividends income

8,986
1,277

7,076
28

Commission fee
Insurance fee

66,721
34,98660,96955,245

Subsidy income
Other

49,02053,533

79,661
68,355

Total non-operating income

214,526

271,338

96,25566,335

17,88339,289Operating income
Non-operating income

Non-operating expenses
Interest expenses
Other

114,139

105,624

Ordinary income

Total non-operating expenses

330,596768,299

Extraordinary income
Gain on sales of noncurrent assets

688,953-

Gain on donation of non-current assets
Gain on sales of investment securities

127,467

5,785
18,437

Gain on bargain purchase
Insurance income

20,60568,69923,943-

Total extraordinary income

905,725

48,166Extraordinary loss
Loss on sales of non-current assets
Impairment loss

-

3,817

46,202

12,639Total extraordinary loss

46,202

16,456

Income before income taxes

1,190,120

800,009

Income taxes-current
Income taxes-deferred

232,152
185,234

170,499
118,473

Total income taxes

417,387

288,973

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

772,733

511,035(5,867)(1,065)

778,600

512,100

7

Consolidated Statements of comprehensive income
The third quarter of this consolidated fiscal year
(Thousands of yen)
3Q of FY ended March 31, 2016
(April 1, 2015- December 31, 2015)

3Q of FY ending March 31, 2017
(April 1, 2016- December 31, 2016)

Net income

772,733

511,035

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(44,263)

7,472

(55)

(255)

Total other comprehensive income(44,319)

7,217

Comprehensive income

728,413518,252

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

734,309519,198(5,895)(946)

8

(3) 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)
Based on the resolution at the meeting of the board of directors held on November 19, 2015, we acquired 635,100 treasury
shares in the third quarter of this consolidated fiscal year. As a result, the amount of treasury shares increased by 350,496
thousand yen in the third quarter of this consolidated fiscal year, and the amount of treasury shares as of the end of the third
quarter of this consolidated fiscal year is 1,166,007 thousand yen.

9

(Segment information, etc.)[Segment information]
I. Cumulative period through the consolidated third quarter of the previous fiscal year (April 1 – December 31, 2015)
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

9,507,837

6,480,353

1,464,573

260,087

17,712,851―

750

34,675

6,361

41,787

9,507,837

6,481,104

1,499,248

266,448

17,754,639

415,743

523,550(23,045)

70,481

986,728

Total(Note) *1

Total

Adjustment
Amount*2

Consolidatedbalance sheet
amount*3

Sales
Sales to externalcustomers―

17,913,472

41,787(41,787)―

200,620 17,955,259(41,787)

17,913,472(4,939)(751,579)

230,209200,620 17,913,472

Internal sales ortransferred
amount among―

the segments
Total
Segment income(loss)

981,789(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business and communication business.
2. The segment income (loss) adjustments amount, -751,579 thousand yen, includes 339,002 thousand yen inelimination of intersegment transactions and -1,090,582 thousand yen in company-wide expenses that are notallocated to 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 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 third quarter of the current
consolidated fiscal year, there was an impairment loss of 24,422 thousand yen in the “Karaoke Business,” and 21,779
thousand yen in the “Restaurant Business.”(Important negative goodwill profit)
In the “Nursing Care Business” segment, in the third quarter of the current consolidated fiscal year, 20,605 thousand yen
in profit was generated from negative goodwill, due to the acquisition of one nursing facility operated by Yorozuya Ltd. in
Oita City, Oita Prefecture on September 30, 2015.

10

II. Cumulative period through the consolidated third quarter of current fiscal year (April 1 – December 31, 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

10,710,524

6,126,417

1,393,287

406,343

18,636,573―

346

34,292400

35,03910,710,524

6,126,763

1,427,580

406,743

780,638

553,976(21,623)

96,093

Total(Note) *1

Total

Adjustment
Amount*2

Consolidatedbalance sheet
amount*3

Sales
Sales to externalcustomers―

18,816,837

35,039(35,039)―

18,671,613

180,263 18,851,876(35,039)

18,816,837

1,409,084(19,652)(786,846)

602,585

180,263 18,816,837

Internal sales ortransferred
amount among―

the segments
Total
Segment income(loss)

1,389,432(Note) 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes hotel business.
2. The segment income (loss) adjustments amount, -786,846 thousand yen, includes 354,984 thousand yen inelimination of intersegment transactions and -1,141,831 thousand yen in company-wide expenses that are notallocated to 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 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 third 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