Kyoritsu Maintenance Co., Ltd.

(Securities Code: 9616)

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal YearEnding March 31, 2024
[JGAAP]
February 2024

1

Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending
March 31, 2024 [based on Japanese GAAP]
February 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 filing date of Quarterly Report:
February 13, 2024
Scheduled date of start of dividend payment: Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: None

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

1.

Consolidated financial results for the first nine months of the fiscal year ending March 31, 2024
(April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results(Percentage figures represent year-over-year changes)

Net sales

Operating income

Ordinary income

Income (loss)
attributable toowners of parent

Million yen%

Million yen%

Million yen%

Million yen%

Nine months ended December 31, 2023

151,09617.0

13,58399.0

13,320

102.6

7,930

91.4

Nine months ended December 31, 2022

129,131

22.9

6,825

–

6,575

–

4,143

–

(Note) Comprehensive income:The nine months ended December 31, 2023: 8,120 million yen (58.9%)
The nine months ended December 31, 2022: 5,110 million yen (–%)

Income (loss)
per share

Diluted net income
per share

Yen

Yen

Nine months ended December 31, 2023

203.30174.44

Nine months ended December 31, 2022

106.2791.01(2) Consolidated financial position
Total assets

Total net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of December 31, 2023

262,831

81,68831.1

2,093.76

As of March 31, 2023

272,308

74,57927.4

1,912.28(Reference) Shareholders’ equity: As of December 31, 2023: 81,688 million yen As of March 31, 2023: 74,579 million yen

2.

Dividends
Annual dividends
Q3 end
Yen
Yen
10.00
–

Q1 endQ2 endYear ended March 31, 2023

Yen–

Year ending March 31, 2024

–

16.00

Year end
Yen
12.00

Total
Yen
22.00

–

Year ending March 31, 2024 (Forecast)

28.00

44.00

(Note) Revision from most recently announced dividends forecasts: Yes
See “Notice of revised forecasts of consolidated financial results and year-end dividends” released today (February 9, 2024) for revisions ofyear-end dividend forecasts.

3.

Forecasted consolidated results for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)(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

203,000

15.6

15,000104.7

14,000

96.8

8,500

100.4

217.86(Note) Revision from most recently announced earnings forecasts: Yes
See “Notice of revised forecasts of consolidated financial results and year-end dividends” released today (February 9, 2024) for revised
consolidated earnings forecasts.

2*Notes(1) Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in thescope of consolidation): 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, (Application of 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.:(ii) Changes in accounting policies other than those under (i) above:(iii) Changes in accounting estimates:(iv) Retrospective restatements:

None
None
None
None

(4) Number of issued shares (common stock)(i) Number of issued shares at the end of
the period (including treasury shares)

As of December 31,
2023

39,219,818
sharesYear ended
March 31, 2023

39,219,818
shares(ii) Number of treasury shares at the endof the period

As of December 31,
2023

204,812sharesYear ended
March 31, 2023

219,668
shares(iii) Average number of shares
during the period

As of December 31,
2023

39,009,041
shares

As of December 31,
2022

38,996,022
shares*Summaries of quarterly financial results are not subject to auditing by a certified public accountant or auditing firm.
*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 basedon information available to the Company at the time of preparation and on certain assumptions deemed reasonable by theCompany. 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.
Qualitative Information on Quarterly Results” on page 6 for the assumptions used for the forecast of financial results and notes
concerning the use of the forecast of financial results.
(How to obtain supplementary materials on quarterly financial results)
Supplementary materials on quarterly financial results are posted to TDnet on the same date and to the Company website.

3

Table of contents for attached materials
1. Qualitative Information on Quarterly Results........................................................................................................................................ 5(1) Explanation of Operating Results .................................................................................................................................................... 5(2) Explanation of Financial Position .................................................................................................................................................... 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)(Nine Months Ended December 31, 2023) ................................................................................................................................. 9(Quarterly Consolidated Statement of Comprehensive Income)(Nine Months Ended December 31, 2023) ............................................................................................................................... 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(Application of special accounting procedures in the preparation of quarterly consolidated financial statements) ....................... 11(Changes in accounting policies) ................................................................................................................................................... 11(Additional information) ............................................................................................................................................................... 11(Segment Information etc.) ............................................................................................................................................................ 124

1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
During the first nine months of this consolidated fiscal year, despite the receding impact of COVID-19, an uncertain outlook for
the Japanese economy remained due to factors including the soaring cost of energy and raw materials and continuing geopoliticalinstability.
Under these conditions, despite the impact of rising food and labor costs, the Group entered a new growth phase. Results for the
Hotel Business exceeded those in the corresponding period before COVID (April to December 2019), while the Dormitory
Business made solid contributions to business results. This was due in part to strong recovery in inbound demand as dormitory
leases for international students returned to and exceeded previous levels, nationwide tourism support measures were extended,and numbers of visitors to Japan in October to December 2023 surpassed 2019 pre-COVID figures (source: the Japan National
Tourism Organization [JNTO]).
As a result, Group income grew significantly in the first nine months of this consolidated fiscal year, with net sales of
151,096 million yen (up 17.0% YoY), operating income of 13,583 million yen (up 99.0% YoY), ordinary income of
13,320 million yen (up 102.6% YoY), and net income attributable to owners of parent of 7,930 million yen (up 91.4% YoY).
Segment business performance is reviewed below.
(i) Dormitory BusinessIn its Dormitory Business, the Group opened 12 facilities nationwide in April, a total of 1,037 new rooms. Due in part to thesecurity measures implemented at our dormitory facilities and their reputation for safety, the number of leases to Japanese
students increased. Leases to foreign students also rose sharply, thanks to the lifting of border restrictions. The period beganwith an initial occupancy rate of 98.2% (up 4.7 percentage points from the previous year).
Net sales were 38,351 million yen (up 4.5% YoY). Operating income was 3,834 million yen (up 35.2% YoY).
(ii) Hotel BusinessIn the Hotel Business segment, the Company opened the Natural Hot Springs Awayuki no Yu Dormy Inn Aomori in its DormyInn Business and La Vista Kannonzaki Terrace in its Resorts Business.
Backed by the weak yen and lifting of border restrictions, as well as resumption of international flights, inbound tourism grew,
while the extension of nationwide tourism promotion measures boosted demand for domestic business and leisure travel. Our
proactive promotion activities at overseas travel exhibitions and domestic travel promotional campaigns also contributed tohigh occupancy rates and high unit prices. Another contributing factor was the strength of our reputation for attentive service
focusing on customer satisfaction. Our Dormy Inn business ranked first in the 2023 Japanese Customer Satisfaction Index(JCSI) among limited service hotels for the fourth consecutive year, which testified to our reputation and satisfaction among
numerous guests.
The resulting net sales amounted to 94,371 million yen (up 26.5% YoY). Operating income was 12,590 million yen (up 114.5%
YoY).
As of the publication date (February 9, 2024), one resort hotel had suspended operations due to the January 1, 2024 Noto
Peninsula earthquake. It is preparing to reopen after completing rigorous evaluations to confirm safety.
(iii) Comprehensive Building Management BusinessIn the Comprehensive Building Management Business, growth in remodeling projects and other factors resulted in net salesof 16,098 million yen (up 30.2% YoY) and operating income of 519 million yen (up 133.2% YoY).
(iv) Food Service BusinessIn the Food Service Business, despite growing numbers of contracted hotel restaurants, the higher expenses, including due tofood and labor costs, resulted in operating income of 156 million yen (down 12.0% YoY), while net sales rose to 8,281 million
yen (up 18.4% YoY).
(v) Development BusinessIn the Development Business, despite growth in real estate sales, declining numbers of new construction projects and otherfactors resulted in net sales of 1,275 million yen (up 36.2% YoY) and operating income of 59 million yen (down 39.2% YoY).
(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 administrative5

outsourcing business. In total, these businesses recorded net sales of 12,021 million yen (up 2.8% YoY) and operating loss of
236 million yen (vs. operating income of 70 million yen in the same period of the previous fiscal year). Contributing factors
included the effects of new business development in the Senior Life Business.

(2) Explanation of Financial Position(Assets)
Total assets at the end of the third quarter of this consolidated fiscal year stood at 262,831 million yen, down by 9,476 million
yen from the end of the previous consolidated fiscal year. Main factors for this decrease included declines in cash and deposits
and in construction in progress.
(Liabilities)
Liabilities at the end of the third quarter of this consolidated fiscal year stood at 181,143 million yen, down by 16,585 million
yen from the end of the previous consolidated fiscal year. This was due mainly to declines in accounts payable-other and longterm loans payable.
(Net assets)
Net assets at the end of the third quarter of this consolidated fiscal year stood at 81,688 million yen, up 7,108 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 31.1%, an increase of 3.7 points from the end of the previous consolidated fiscal year.

(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information
Although forecasts of consolidated financial results announced on November 9, 2023 had reflected expectations of large-scale
improvements in business performance during the third quarter, average daily rates in the Hotel Business leapt past these
forecasts as a result of the weak yen and other factors, which boosted numbers of visitors to Japan past the pre-COVID figures
recorded during the same period (October to December 2019).
Accordingly, we have revised upward our forecasts of consolidated financial results for the fiscal year ending March 31, 2024.
These revisions reflect the fact that projected income for the first nine months of the year was achieved earlier than previously
forecast, as well as expectations for continually improving business performance in the fourth quarter.
For more information, see “Notice of revised forecasts of consolidated financial results and year-end dividends,” released today(February 9, 2024).
“KYORITSU Growth Vision / Rise Up Plan 2028,” the Medium-term Management Plan, for which the fiscal year ending March
31, 2024 is the first fiscal year, remains unchanged.

6

2. Quarterly Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2023

As of December 31, 2023

AssetsCurrent assets
Cash and deposits

56,02738,931

Notes and accounts receivable - trade

15,211

16,361

Real estate for sale

11,750

11,589Real estate for sale in process

6,873

8,027

95

705

8,918

8,851

Costs on uncompleted construction contracts
Other
Allowance for doubtful accounts

-74

-73

98,802

84,392

Buildings and structures, net

47,64349,078Land

39,862

42,038Construction in progress

14,811

18,245

Other, net

4,637

4,703

106,954

114,066

4,154

4,265

Investment securities

3,525

3,930

Guarantee deposits

18,581

19,059Lease deposits

19,915

20,391Other

20,082

16,499Allowance for doubtful accounts

-113

-109

Total investments and other assets

61,991

59,771

173,100

178,103

405

335

272,308

262,831

Total current assets
Non-current assets
Property, plant and equipment

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

Total non-current assets
Deferred assets
Total assets

7

(Unit: million yen)
As of March 31, 2023

As of December 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

7,249

7,107

Short-term borrowings

23,947

25,682Current portion of bonds payable

4,880

4,880

Income taxes payable

865

2,512

Provision for bonuses

1,935

1,783

289

362

–

870

Other

28,21520,655

Total current liabilities

67,38363,854

Bonds payable

18,58015,740Convertible bonds with share acquisition rights

30,08230,060Long-term loans payable

75,74365,443

Provision for directors’ retirement benefits

1,029

1,163

255

257

4,653

4,624

Provision for directors’ bonuses
Provision for loss on business withdrawal

Non-current liabilities

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

130,345

117,289

197,728

181,143

Net assets
Shareholders’ equity
Share capital

7,964

7,964

Capital surplus

12,862

12,920Retained earnings

53,84560,683

Treasury shares

-349

-327

74,322

81,242160

431

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

648

587

Foreign currency translation adjustment

-589

-602

Remeasurements of defined benefit plans

36

30

Total accumulated other comprehensive income

256

445

74,57981,688272,308

262,831

Total net assets
Total liabilities and net assets8(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Income Statement)(Nine Months Ended December 31, 2023)(Unit: million yen)
Nine Months Ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)

Nine Months Ended
December 31, 2023
(From April 1, 2023
to December 31, 2023)

Net sales

129,131

151,096

Cost of sales

104,130

114,046

Gross income

25,00137,050

Selling, general and administrative expenses

18,176

23,467

Operating income

6,825

13,583

Interest income

81

87

Dividend income

67

99

Other

388

264

Total non-operating income

538

450

434

512

Non-operating income

Non-operating expenses
Interest expenses
Expenses for measures for COVID-19

85

–

Other

268

201

Total non-operating expenses

788

713

6,575

13,320Gain on sales of investment securities

18–

Total extraordinary income

18

–

–

768

Other

247

157

Total extraordinary losses

247

925

Net income before taxes

6,345

12,394

Income taxes

2,201

4,463

Net income

4,143

7,930

Net income attributable to owners of parent

4,143

7,930

Ordinary income
Extraordinary income

Extraordinary losses
Loss on business withdrawal

9

(Quarterly Consolidated Statement of Comprehensive Income)(Nine Months Ended December 31, 2023)(Unit: million yen)
Nine Months Ended
December 31, 2022
(From April 1, 2022
to December 31, 2022)
Net income

Nine Months Ended
December 31, 2023
(From April 1, 2023
to December 31, 2023)

4,143

7,930

Valuation difference on available-for-sale securities

21

271

Deferred gains or losses on hedges

963

-61

Foreign currency translation adjustment

-10

-13

Remeasurements of defined benefit plans-7-6

Total other comprehensive income

966

189

5,110

8,120

5,110

8,120

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(Application of 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 third quarter of the fiscal year, and multiplying income(loss) before income taxes for the first nine 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.

(Changes in accounting policies)
Not applicable(Additional information)
Not applicable11

(Segment Information etc.)[Segment Information]
I For the nine months ended December 31, 2022 (April 1, 2022 – December 31, 2022)
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

36,45674,529

5,604

947

369

117,907

11,223

129,131–

129,131

Inter-segmental sales
or transfers

249

94

6,756

6,044

567

13,713464

14,177-14,177–

Total

36,706

74,624

12,361

6,992

936

131,620

11,688143,309-14,177

129,131

2,835

5,870

222

177

97

9,204

70

9,274

-2,4496,825

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 -2,449 million yen includes the amount of elimination of inter-segment
transactions of 105 million yen and corporate expenses of -2,554 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 loss 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 nine months ended December 31, 2023 (April 1, 2023 – December 31, 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

Note 1

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

Net sales
Net sales to externalcustomers

38,175

94,272

5,370

1,265

477

139,561

11,535151,096–

151,096

Inter-segmental sales
or transfers

176

98

10,728

7,015

798

18,817486

19,304-19,304–

Total

38,351

94,371

16,098

8,281

1,275

158,379

12,021

170,401-19,304

151,096

3,834

12,590

519

156

59

17,159-236

16,923-3,33913,583

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 -3,339 million yen includes the amount of elimination of inter-segment
transactions of -322 million yen and corporate expenses of -3,017 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 loss on the quarterly consolidated statement of income.
2. Information on impairment loss of non-current assets or goodwill, etc. by reporting segment
Not applicable13