Kyoritsu Maintenance Co., Ltd.

(Securities Code: 9616)

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal YearEnding March 31, 2025
[JGAAP]
August 2024

1

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending
March 31, 2025 [based on Japanese GAAP]
August 9, 2024
Listed exchange: Tokyo

Name of listed company:
Kyoritsu Maintenance Co., Ltd.
Code:
9616
URL https://www.kyoritsugroup.co.jp/
Representative:(Title) President(Name) Koji Nakamura
Contact:(Title) Executive Director(Name) Manabu Takaku
Scheduled date of start of dividend payment: Supplementary materials for the financial results: Yes
Investor conference for the financial results: None

Tel. +81-3-5295-7778(Rounded down to the nearest million yen)

1.
Consolidated financial results for the first three months of the fiscal year ending March 31, 2025 (April 1, 2024 to June 30, 2024)(1) Consolidated operating results(Percentage figures represent year-over-year changes)

Operating income

Ordinary income

Income (loss)
attributable toowners of parent%

Million yen

Million yen%

Million yen

Net sales
Million yen%%

Three months ended June 30, 2024

52,080

11.5

3,821

31.2

4,117

47.1

2,695

54.1

Three months ended June 30, 2023

46,699

19.0

2,912

170.4

2,798

160.3

1,749

153.0

(Note) Comprehensive income:The three months ended June 30, 2024: 3,123 million yen (86.9%)
The three months ended June 30, 2023: 1,670 million yen (82.6%)

Income (loss)
per share

Diluted net income
per share

Yen

Yen

Three months ended June 30, 2024

34.55

29.64

Three months ended June 30, 2023

22.44

19.23

(Note) The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Net income per share and diluted net income
per share have been calculated assuming this stock split had taken place at the start of the previous consolidated fiscal year.

(2) Consolidated financial position
Total assets

Total net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of June 30, 2024

269,533

88,43932.8

1,133.42

As of March 31, 2024

270,92186,60432.0

1,109.91(Reference) Shareholders’ equity: As of June 30, 2024: 88,439 million yen As of March 31, 2024: 88,604 million yen(Note) The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Net assets per share have been calculated
assuming this stock split had taken place at the start of the previous consolidated fiscal year.

2.

Dividends
Annual dividends
Q3 end
Yen
Yen
16.00
‒

Q1 endQ2 endYear ended March 31, 2024

Yen‒

Year ending March 31, 2025‒

Year ending March 31, 2025 (Forecast)

16.00

‒

Year end
Yen
33.00

16.00

Total
Yen
49.00

32.00

(Note) Revision from most recently announced dividends forecasts: None
(Note) The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Figures above for the year ended March 31,
2024 indicate actual dividend amounts prior to this stock split. Second-quarter and year-end dividends for the year ending March 31, 2025
(forecasts) reflect the impact of this stock split.

23.

Forecasted consolidated results for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)(Percentage figures represent year-over-year changes)

Net sales

Full Year

Operating income

Net income
attributable to ownersof parent

Ordinary income

Net income pershare

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

226,000

10.7

18,50010.7

19,000-10.0

12,5000.7

160.20(Note) Revision from most recently announced earnings forecasts: None
(Note) The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Income per share in the Forecast Consolidated
Results has been calculated using the number of shares issued and outstanding (not including treasury stock) after this stock split.

*Notes(1) Significant changes in the scope of consolidation during the period: None
(2) Application of special accounting treatment in the preparation of the quarterly consolidated financial statements: Yes(Note) For details, please see “(3) Notes on Quarterly Consolidated Financial Statements, (Notes on Special Accounting
Procedures in The Preparation of Quarterly Consolidated Financial Statements)” under “2. Quarterly Financial
Statements and Major Notes” on page 11(3) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards, etc.:

Yes(ii) Changes in accounting policies other than those under (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:

None(4) Number of issued shares (common stock)(i) Number of issued shares at theend of the period (including
treasury shares)(ii) Number of treasury shares atthe end of the period(iii) Average number of shares
during the period

As of June 30, 2024

78,439,636 Year ended
shares March 31, 2024

78,439,636
shares

As of June 30, 2024

411,262 Year ended
shares March 31, 2024

410,902
shares

As of June 30, 2024

78,028,470
As of June 30, 2023
shares77,999,998
shares(Note) The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Number of issued shares has
been calculated assuming this stock split had taken place at the start of the previous consolidated fiscal year.
* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants
or an audit firm: None
*Explanation of the appropriate use of earnings forecasts and other special notes(Note concerning forward-looking statements)
The forward-looking statements, including earnings forecasts and other future projections contained in this document are based on
information available to the Company at the time of preparation and on certain assumptions deemed reasonable by the Company. As
such, they do not constitute an assurance that the Company promises to achieve these projected results. Actual business results may
differ materially from the forecasts due to various factors.
Please see “(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information” under “1. Overview ofOperating Results, etc.” on page 6 for the assumptions used for the forecast of financial results and notes concerning the use of theforecast of financial results.
(How to obtain supplementary materials on financial results)
Supplementary materials on financial results are posted to TDnet on the same date and to the Company website.

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Table of contents for attached materials
1. Overview of Operating Results, etc. ...................................................................................................................................................... 5(1) Overview of Operating Results During The Period Under Review ........................................................................................... 5(2) Overview of Financial Position During The Period Under Review ........................................................................................... 6(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information ............................................... 6
2. Quarterly Financial Statements and Major Notes .................................................................................................................................. 7(1) Quarterly Consolidated Balance Sheet ........................................................................................................................................ 7(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income .................. 9(Quarterly Consolidated Income Statement) ................................................................................................................................... 9(Three Months Ended June 30, 2024) ......................................................................................................................................... 9(Quarterly Consolidated Statement of Comprehensive Income) ................................................................................................... 10(Three Months Ended June 30, 2024) ....................................................................................................................................... 10(3) Notes on Quarterly Consolidated Financial Statements ........................................................................................................... 11(Notes on The Going Concern Assumption) ................................................................................................................................. 11(Notes Concerning Any Notable Changes in Shareholders’ Equity) ............................................................................................. 11(Notes on Special Accounting Procedures in The Preparation of Quarterly Consolidated Financial Statements) ......................... 11(Notes on Changes in Accounting Policies) .................................................................................................................................. 11(Other Matters) .............................................................................................................................................................................. 11(Notes on Quarterly Consolidated Cash Flow Statement) ............................................................................................................. 11(Notes on Segment Information) ................................................................................................................................................... 124

1. Overview of Operating Results, etc.
(1) Overview of Operating Results During The Period Under Review
Despite gradual improvements in the conditions of employment and income in the Japanese economy during the three months
ended June 30, 2024, the recovery in personal consumption stalled due to rising prices, reflecting factors such as the depreciationof the yen. Rising costs due to high prices and labor shortages, affected corporate revenues.
Rising costs also affected Group performance. Nevertheless, our hotel business fared well due to growing numbers of inboundtourists. The number of foreign visitors to Japan since March 2024 has exceeded three million (Source: “Number of Foreign
Visitors to Japan,” Japan National Tourism Organization (JNTO)).
As a result, the Group saw substantial earnings growth in the first three months of the current consolidated fiscal year, recording
net sales of 52,080 million yen (up 11.5% YoY), operating income of 3,821 million yen (up 31.2% YoY), ordinary income of
4,117 million yen (up 47.1% YoY), and net income attributable to owners of parent of 2,695 million yen (up 54.1% YoY).
Segment business performance is reviewed below.
(i) Dormitory BusinessIn its Dormitory Business, the Company opened eight new facilities nationwide in April, adding 907 rooms. The occupancy
rate at the start of the quarter for all dormitories, including the rooms newly added, was 97.0%, down 1.2 points YoY. In
addition to publicizing its strengths of safety and security to a wider market, the Company has implemented thoroughgoingcost controls and worked to optimize sales prices in response to rising costs.
As a result, net sales increased 5.3% year on year to 14,202 million yen, and operating income increased 20.4% year on year
to 1,961 million yen, offsetting the decline in occupancy rates at the beginning of the period.
(ii) Hotel Business
The Hotel Business saw solid domestic demand and continuing growth in inbound tourism. Aggressive sales activities andrigorous revenue management (to optimize selling prices) helped maintain high occupancy rates and unit prices. During theperiod under review, the Company actively implemented wide-ranging renovation work to improve customer satisfaction.
However, significant growth in both sales and income offset the impact of construction costs, losses due to facility closures,and inflation.
Net sales amounted to 31,409 million yen (up 14.9% YoY). Operating income was 2,945 million yen (up 31.6% YoY).
(iii) Comprehensive Building Management BusinessIn the Comprehensive Building Management Business, despite growth in the numbers of facility management and cleaning
projects, sales recoiled slightly from the previous fiscal year due to the absence this year of a large construction order. Sales
were 4,300 million yen (down 0.9% YoY); operating loss was 73 million yen (vs. 3 million yen during the same period of theprevious fiscal year).
(iv) Food Service BusinessIn the Food Service Business, despite growing numbers of contracted hotel restaurants, various factors, including the higher
cost of food and labor, resulted in net sales of 2,853 million yen (up 18.1% YoY) and operating income of 35 million yen(down 22.5% YoY).
(v) Development Business
Due to an increase in dormitory and hotel development projects and other factors, the Development Business reported net
sales of 364 million yen (up 154.2% YoY) and an operating loss of 14 million yen (vs. operating loss of 41 million yen in thesame period of the previous fiscal year).
(vi) Other Businesses
Other Businesses consist of the Senior Life Business (management and operation of senior residences), the Public Kyoritsu
Partnership (PKP) Business (services provided under contract to local governments), support business for people who live
alone, the insurance agency business, comprehensive human-resource services, the financial business, and the administrative
outsourcing business. The total of these businesses resulted in net sales of 4,378 million yen (up 9.1% YoY) and operating
income of 24 million yen (down 28.6% YoY) due to the impact of operating deficits in the Senior Life Business, which opened
the previous fiscal year.

5(2) Overview of Financial Position During The Period Under Review(Assets)
Total assets at the end of the first quarter of this consolidated fiscal year stood at 269,533 million yen, down by 1,388 million
yen from the end of the previous consolidated fiscal year. Main factors for this decrease included declines in cash and deposits.
(Liabilities)
Liabilities at the end of the third quarter of this consolidated fiscal year stood at 181,094 million yen, down by 3,222 million
yen from the end of the previous consolidated fiscal year. The main factors for this decrease included declines in notes andaccounts payable—trade, income taxes payable, etc.
(Net assets)
Net assets at the end of the first quarter of this consolidated fiscal year stood at 88,439 million yen, up 1,834 million yen fromthe end of the previous consolidated fiscal year. This was mainly due to an increase in retained earnings.
As a result, the equity ratio was 32.8 %, an increase of 0.8 points from the end of the previous consolidated fiscal year.

(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information
We have left our forecasts of consolidated financial results, announced on May 15, 2024, unchanged for the time being.

62. Quarterly Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)Previous fiscal year
As of March 31, 2024

First quarter under review
As of June 30, 2024

AssetsCurrent assets
Cash and deposits

31,80721,451

Notes and accounts receivable - trade

17,915

15,874

Real estate for sale

11,451

11,312

Real estate for sale in process

9,643

10,688

265

334

9,367

9,189

-64

-64

80,38568,786

Buildings and structures, net

48,682

48,305

Land

42,64644,333

Construction in progress

18,85026,907

Other, net

5,123

5,342

115,303

124,889

4,487

4,603

Investment securities

15,01815,622

Guarantee deposits

18,893

18,885

Lease deposits

20,551

20,674

Other

Costs on uncompleted construction contracts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

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

16,07815,889Allowance for doubtful accounts

-106

-106

Total investments and other assets

70,43370,965

190,224

200,458

311

288

270,921269,533

Total non-current assets
Deferred assets
Total assets

7

(Unit: million yen)Previous fiscal year
As of March 31, 2024

First quarter under review
As of June 30, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade

9,394

6,408

Short-term borrowings

26,86027,421

Current portion of bonds payable

4,880

4,880

Income taxes payable

2,640

792

Provision for bonuses

2,928

892

486

157

Other

23,936

24,638

Total current liabilities

71,12765,189Bonds payable

13,70013,300Convertible bonds with share acquisition rights

30,05230,045Long-term loans payable

62,45365,402

Net defined benefit liability

986

1,072

Provision for directors' retirement benefits

258

259

Provision for losses on withdrawal from business

1,160

1,160

Other

4,578

4,665

Provision for directors’ bonuses

Non-current liabilities

Total non-current liabilities

113,189

115,905

184,317

181,094

Share capital

7,964

7,964

Capital surplus

12,92012,921Retained earnings

65,167

66,575

Total liabilities
Net assets
Shareholders’ equity

Treasury shares
Total shareholders’ equity

-331

-332

85,721

87,128675

874

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

692

911

Foreign currency translation adjustment

-601

-585

Remeasurements of defined benefit plans

117

110

Total accumulated other comprehensive income

882

1,310

86,60488,439270,921269,533

Total net assets
Total liabilities and net assets8(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Income Statement)(Three Months Ended June 30, 2024)(Unit: million yen)Three Months Ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)

Three Months Ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)

Net sales

46,69952,080

Cost of sales

36,50939,932Gross income

10,19012,148Selling, general and administrative expenses

7,277

8,326

Operating income

2,912

3,821

Interest income

2730

Dividend income

30

39

Share of income of investment accounted for using
equity method−436

Non-operating income

Other

104

69

Total non-operating income

162

574

Interest expenses

175

167

Other

101

110

Total non-operating expenses

276

278

2,798

4,117

21

−

Loss on disaster

11

97

Demolition and removal costs

44−

Total extraordinary losses

78

97

Non-operating expenses

Ordinary income
Extraordinary losses
Loss on store closings

Net income before taxes

2,720

4,020

Income taxes

970

1,324

Net income

1,749

2,695

Net income attributable to owners of parent

1,749

2,695

9

(Quarterly Consolidated Statement of Comprehensive Income)(Three Months Ended June 30, 2024)(Unit: million yen)Three Months Ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
Net income

Three Months Ended
June 30, 2024
(From April 1, 2024
to June 30, 2024)
1,749

2,695

Valuation difference on available-for-sale securities

141

198

Deferred gains or losses on hedges

Other comprehensive income
-209

218

Foreign currency translation adjustment-97Remeasurements of defined benefit plans-2-6

Share of other comprehensive income of affiliates
accounted for by the equity method

−

8

-79

427

1,670

3,123

1,670

3,123

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent10

(3) Notes on Quarterly Consolidated Financial Statements(Notes on The Going Concern Assumption)
Not applicable(Notes Concerning Any Notable Changes in Shareholders’ Equity)
Not applicable(Notes on Special Accounting Procedures in The Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
The Company calculates tax expenses by rationally assuming an effective tax rate after applying tax effect accounting to income(loss) before income taxes for the consolidated fiscal year, including the first quarter of the fiscal year, and multiplying income(loss) before income taxes for the first three months of the fiscal year by the estimated effective tax rate. However, if the resultof calculation of tax expenses using the estimated effective tax rate is significantly unreasonable, the statutory effective tax rateis used.

(Notes on Changes in Accounting Policies)(Application of the Accounting Standard for Income Taxes - Current)
We applied the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27; “Revised Accounting Standard 2022”
hereinafter) from the beginning of the first quarter under review.
Revisions of income categories for tax purposes (taxation of other comprehensive income) are in accordance with the transitional
treatment specified by the provisions of paragraph 20-3 of Revised Accounting Standard 2022 and with the transitional treatment
specified by the provisions of paragraph 65-2(2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ
Guidance No. 28, October 28, 2022; “Revised Implementation Guidance 2022” hereinafter). This has no impact on quarterly
consolidated financial statements.
In addition, we applied the provisions of Revised Implementation Guidance 2022 from the start of the first quarter under review.
This entailed the revised treatment of consolidated financial statements for cases involving deferred tax on gains or losses arisingfrom the sale of shares of subsidiaries and of other securities held by consolidated companies. These changes in accounting
policies have been applied retrospectively. Quarterly consolidated financial statements for the same quarter of the previous year
and consolidated financial statements for the previous fiscal year have been restated to reflect this retrospective application.
This change does not affect quarterly consolidated financial statements for the same quarter of the previous year or consolidated
financial statements for the previous fiscal year.

(Other Matters)
Not applicable(Notes on Quarterly Consolidated Cash Flow Statement)
Quarterly consolidated statements of cash flows have not been prepared for the three months ended June 30, 2024. Depreciation
and amortization expenses (including amortization of intangible assets excluding goodwill) for the three months ended June 30
were as follows:
Three Months Ended June 30, 2023
(From April 1, 2023
to June 30, 2023)
Depreciation and amortization

1,580 million yen

11

Three Months Ended June 30, 2024
(From April 1, 2024
to June 30, 2024)
1,763 million yen

(Notes on Segment Information)[Segment information]
I For the three months ended June 30, 2023 (April 1, 2023 – June 30, 2023)
1. Information on net sales, income or loss by each reporting segment
Reporting segment

Dormitory

Hotel

Comprehensive
Building
Management

Other
Food
Service

Development

Total

Total

Note 1(Unit: million yen)Amountrecorded on
Adjustment consolidated
amountquarterly
Note 2incomestatement
Note 3

Net sales
Net sales to externalcustomers

13,42527,300

1,660

399

84

42,871

3,828

46,699‒46,699Inter-segmental sales
or transfers

57

34

2,680

2,015

58

4,846

186

5,033

-5,033‒

13,48327,334

4,340

2,415

143

47,717

4,015

51,732-5,033

46,699

1,629

2,237

-3

46

-41

3,869

34

3,903

-991

2,912

Total
Segment income(loss)

Notes: 1. The Other segment consists of the following businesses which are not included in the reporting segments: the SeniorLife Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business(services provided under contract to local governments), support business for people who live alone, the insurance
agency business, comprehensive human-resource services, the financial business, the administrative outsourcing
business, and other additional businesses.
2. Adjustment of segment income (loss) of -991 million yen includes the amount of elimination of inter-segment
transactions of 26 million yen and corporate expenses of -1,017 million yen that are not allocated to each reportablesegment. Corporate expenses mainly consist of expenses related to the Accounting Department and otheradministrative departments of the head office.
3. Segment income (loss) is adjusted with operating income on the quarterly consolidated statement of income.
2. Information on impairment loss on non-current assets or goodwill, etc. by reporting segment
Not applicable12II For the three months ended June 30, 2024 (April 1, 2024 – June 30, 2024)
1. Information on net sales, income or loss by each reporting segment
Reporting segment

Dormitory

Hotel

Comprehensive
Building
Management

Other
Food
Service

Development

Total

Total

Note 1(Unit: million yen)Amountrecorded on
Adjustment consolidated
amountquarterly
Note 2incomestatement
Note 3

Net sales
Net sales to externalcustomers

14,11531,330

1,685

473

274

47,8794,201

52,080‒52,080Inter-segmental sales
or transfers

87

79

2,615

2,379

90

5,251

177

5,428

-5,428‒

14,202

31,409

4,300

2,853

364

53,1304,378

57,509-5,42852,080

1,961

2,945

-73

35

-14

4,855

24

4,879

-1,058

3,821

Total
Segment income(loss)

Notes: 1. The Other segment consists of the following businesses which are not included in the reporting segments: the SeniorLife Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business(services provided under contract to local governments), support business for people who live alone, the insurance
agency business, comprehensive human-resource services, the financial business, the administrative outsourcing
business, and other additional businesses.
2. Adjustment of segment income (loss) of -1,058 million yen includes the amount of elimination of inter-segment
transactions of 25 million yen and corporate expenses of -1,084 million yen that are not allocated to each reportablesegment. Corporate expenses mainly consist of expenses related to the Accounting Department and otheradministrative departments of the head office.
3. Segment income (loss) is adjusted with operating income on the quarterly consolidated statement of income.
2. Information on impairment loss of non-current assets or goodwill, etc. by reporting segment
Not applicable13