Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement

Kyoritsu Maintenance Co., Ltd.
(Securities Code: 9616)

Fiscal Year Ended March 2015
Consolidated Earnings Results Update
May 2015

1

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement

Fiscal Year Ended March 2015 Consolidated Earnings Announcement
May 15, 2015

Company Name: Kyoritsu Maintenance Co., Ltd.
Tokyo Stock Exchange
Stock Code: 9616, URL: http://www.kyoritsugroup.co.jp/
Director: Mitsutaka Sato, President
Contact: Takumi Ueda, Vice President, Tel: +81-3-5295-7778
General Shareholders Meeting (Anticipated): June 25, 2015; Dividend Payment Date (Anticipated): June 26, 2015
Financial Accounts Filing Date (Anticipated): June 25, 2015
Earnings Presentation Document: Available
Earnings Presentation Meeting: Available (for institutional investors)(All figures of less than one million yen are rounded down to the nearest digit)
1. Fiscal Year Ended March 2015 Consolidated Earnings (April 1, 2014 to March 31, 2015)(1) Consolidated Earnings (Aggregated)
Net Sales

Operating Income％

Million yen

FY3/15110,212

Ordinary Income％

Million yen

4.7

8,217

Net Income％

Million yen

9.7

7,663

12.7

FY3/14105,216
5.8
7,490
14.9
6,796
21.4
(Note) Comprehensive income: ¥5,200 million (28.1% YoY) in FY3/15; ¥4,059 million (7.1% YoY) in FY3/14
EPS

FY3/15

Fully Diluted EPS

ROE％Million yen

4,387

14.6

3,829

19.4

Ordinary Income toTotal Asset Ratio

Operating Margin

Yen

Yen

％

％

％

275.29224.78

10.8

5.6

7.5

11.0

5.3

Equity Ratio

Book Value Per Share

7.1
241.86225.95
FY3/14(Reference) Equity accounting method profit: ¥0 in FY3/15; ¥0 in FY3/14(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, EPS and fully
diluted EPS have been calculated presuming that this stock split was carried out at the start of the previous consolidated fiscal year.
(2) Consolidated Financial Position
Total Assets
FY3/15Net Assets

Million yen

Million yen％

Yen

139,750

46,91333.6

2,658.90

131,995
34,590FY3/1426.2
2,210.94(Note) Capital: ¥46,913 million in FY3/15; ¥34,590 million in FY3/14(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, book value pershare has been calculated presuming that this stock split was carried out at the start of the previous consolidated fiscal year.
(3) Consolidated Cash Flow Conditions
Operating Cash Flow

Investing Cash Flow

Cash and Equivalents at
Term End

Financing Cash FlowMillion yen

Million yen

Million yen

Million yen

FY3/15

7,679(12,018)(3,760)15,758

FY3/14

7,692(6,333)

5,535

23,7502. Dividend Conditions
Dividend Per Share
1Q-End2Q-EndYen

3Q-EndYen

4Q-EndYen

Total Dividend

Dividend

Payment

Payout Ratio

Asset Ratio(Annual)(Consolidated)(Consolidated)

Total

Dividend to Net

Yen

Yen

Million yen％％

FY3/14

-

21.00

-

27.00

48.00

625

16.5

1.9

FY3/15

-

24.00

-

26.00

50.00

695

15.1

1.7

FY3/16 (Forecast)
25.00
25.00
50.00
19.6
(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. The actual dividend amountprior to the stock split is noted here for the fiscal years ended in March 2014 and March 2015. The interim dividends and year-end
dividends for the fiscal year ending in March 2016 (forecast) take into account the impact of this stock split.
3. Fiscal Year Ending March 2016 Consolidated Earnings Estimates (April 1, 2015 to March 31, 2016)
Net Sales

Operating Income

Million yen％

First Half

60,800

Full Year

121,700

Net Income Attributable toParent Company
Shareholders

Ordinary Income

Million yen％

Million yen

％

13.5

4,750

10.4

8,700

5.1

4,240

5.9

7,850

2

EPS

Million yen

％

Yen

0.4

2,740

0.5

155.29

2.4

4,500

2.6

255.04

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, EPS in theConsolidated Earnings Estimates has been calculated from shares issued (excluding treasury share) after the stock split.
Notes(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(2) Changes in the accounting policies, procedures, and changes or revisions in the display of accounting estimates:
1. Changes accompanying revisions in accounting standards:
Applicable
2. Other changes:
None
3. Changes in accounting estimates:
None
4. Redisplay of revisions:
None(3) Shares Issued (Common Stocks)
1. Shares issued as of term-end (including treasury shares)
FY3/15
18,150,698
FY3/14
2. Treasury Shares as of term-end
FY3/15
506,662
FY3/14
3. Average during the term
FY3/15

15,938,943

18,150,698
2,505,740
15,832,508

FY3/14(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, shares issued(common stocks) has been calculated presuming that this stock split was carried out at the start of the previous consolidated fiscal year.
(Reference) Outline of non-consolidated business results
1. Fiscal Year Ended March 2015 Parent Earnings (From April 1, 2014 to March 31, 2015)(1) Parent Earnings
Net Sales
For the fiscal year ended

Operating Income(% figures show year-on-year change)

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2015

94,766

7.0

8,131

16.5

8,124

16.1

5,152

21.0

March 31, 2014

88,559

8.5

6,982

19.5

6,995

34.1

4,258

58.6

Book Value Per ShareNet Income Per Share–Diluted

For the fiscal year ended

Yen

Yen

March 31, 2015

323.29263.97

March 31, 2014

268.96251.26(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, book value pershare and net income per share–diluted have been calculated presuming that this stock split was carried out at the start of the previous
consolidated fiscal year.
(2) Parent Financial Position
Total Assets

Net Assets

Equity Ratio

Book Value Per Share

Millions of yen

Millions of yen%

Yen

As of March 31, 2015

123,747

44,87636.3

2,543.46

As of March 31, 2014

121,753

31,88726.2

2,038.21(Reference) Shareholders’ equity:

As of March 31, 2015: ¥44,876 million
As of March 31, 2014: ¥31,887 million(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, book value pershare has been calculated presuming that this stock split was carried out at the start of the previous consolidated fiscal year.

2. Fiscal Year Ending March 2016 Parent Earnings Estimates (April 1, 2015 to March 31, 2016)
Net Sales

Operating Income

Ordinary Income

EPS

Million yen%

Million yen%

Million yen%

Yen

First Half

51,400

8.4

4,210

(7.0)

2,860

(8.4)

162.09Full Year103,300

9.0

7,710

(5.1)

4,880

(5.3)

276.58(Note) The Company carried out a stock split on April 1, 2015 at a ratio of 1.2 shares per one common share. Accordingly, EPS in theConsolidated Earnings Estimates has been calculated from shares issued (excluding treasury share) after the stock split.
*Regarding the implementation of audit procedure in the display of this document:This earnings announcement is exempted from the financial instruments and exchange act founded in the audit procedures, and at the time of the release ofthis earnings announcement, the auditing procedures for the financial statements in this document have not been completed.
Notes and explanation of appropriate usage of earnings estimates:
All earnings estimates and forward-looking statements in this document are based on the best information available and rational decisions of management
at the time of its creation, and actual earnings may diverge largely from those estimates and forward-looking statements put forward in this document due
to various unforeseen factors. Moreover, for information regarding earnings estimates and the assumptions upon which they are based, and the usages ofthese earnings estimates, please refer to the section “Analysis of Business Results” on page 5.
(Method for obtaining supplementary explanatory information on financial results and the briefing on financial results)
The Company will post supplementary explanatory information on financial results on its website.

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Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
Index
1. Analysis of Business Results, Financial Conditions

5(1) Analysis of Business Results

5(2) Analysis of Financial Conditions

8(3) Our Basic Policy Regarding the Distribution of Profits in the Current and Next Terms

9(4) Business Risks

9

2. Corporate Structure

10

3. Management Policy

12(1) Our Basic Management Policy

12(2) Benchmarks of Our Intermediate to Long-Term Management Strategy

12(3) Key Management Issues

12

4. Basic approach to selecting accounting standards

12

5. Consolidated Financial Statements

13(1) Consolidated Balance Sheets

13(2) Consolidated Income Statement and Comprehensive Income Statement

15

Consolidated Income Statement

15

Consolidated Comprehensive Income Statements

17(3) Consolidated Shareholders’ Equity Statements(4) Consolidated Cash Flow Statements

1820(5) Consolidated Financial Statement Notes(Notes Regarding Going Concern Assumptions)22
22(Important articles in the assumption used to create consolidated financial statements)

22(Segment Information)

22

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Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
1. Analysis of Business Results, Financial Conditions(1) Analysis of Business Results
1. Overview of Overall Earnings in Current Term
(Consolidated Earnings)(Unit: Million Yen)
Previous Term
Current Term
% YoY Change
FY3/14
FY3/15Net Sales
105,216
110,212
4.7
Operating Income
7,490
8,217
9.7
Ordinary Income
6,796
7,663
12.7
Net Income
3,829
4,387
14.6
During the current fiscal year, the Japanese economy continued to recover gradually on the back of the effect of thegovernment’s monetary and financial policies. However, the outlook remains uncertain as a result of the natural pullbackin demand following the rush to buy ahead of the consumption tax rate hike and weakness in overseas economies.
Against this backdrop, our dormitory business got off to a solid start with occupancy rates rising by 0.2 points over theprevious year to 97.2% at the start of the fiscal year, and remained solid throughout the year, partly because the employee
dormitory business benefited from growing needs in the corporate sector. In the hotel business, both the Dormy Inn(business hotels) and resort hotel operations recorded higher occupancy rates than in the previous year on the back of anincrease in the number of inbound travelers, as well as growth in domestic travelers. These sub-segments remained major
drivers of growth for the Company. As in the previous fiscal year, Kyoritsu Maintenance undertook public and investor
relations activities aimed at deepening understanding of its services. This included the sponsorship of the “Hakone
Ekiden” long distance university relay race, which has a close relationship with our business.
As a result of these various efforts, sales, and operating, ordinary and net incomes all managed to rise above the previous
year’s levels by large margins of 4.7% (¥4,996 million), 9.7%, 12.7% and 14.6% year over year to ¥110,212, ¥8,217,¥7,663, and ¥4,387 million, respectively. Furthermore, this performance set the record for highest earnings, having
surpassed the results of previous fiscal year.
2. Our Main Business Segment Performance
Dormitory Business (Student, Corporate, Domeal, Consigned Dormitories)(Unit: Million Yen)
Previous Term
Current Term
% YoY Change
FY3/13
FY3/14Contracted Residents
32,56733,489
2.8
Sales (Million Yen)
41,452
42,665
2.9
Operating Income (Million
6,119
6,371
4.1
yen)
The environment surrounding the student dormitory business continues to be plagued by the decline in the number ofchildren. However, needs for dormitories are rising due to growing demand resulting from the rise in university attendance
rates and the use of dormitories by universities to encourage students from abroad to enroll.
Against this backdrop, this fiscal year we succeeded in forming new alliances with Atomi University, Tohoku Institute ofTechnology and Kobe Women’s University, among others. As a result of these efforts, the number of contracted residents
in the student dormitories rose by 1.1% year over year to 19,741 residents and sales rose by 0.9% year over year to ¥24,966
million.
The environment surrounding the corporate dormitory business was positive with increases in the number of employers andthe number of job offers for new graduates compared with the previous term. With these conditions in place, conditions
were favorable as large corporations reintroduced dormitories or introduced them for the first time. As a result, the numberof contracted residents rose by 4.9% year over year at the end of the fiscal year to 9,113, and sales rose by 8.2% year overyear to ¥10,464 million.
In our Domeal business, we met demand from people looking to move from dormitories providing meals by providing
studio-type dormitory facilities. We also received support from client schools and companies through their introductions of
new residents seeking dormitories with commissary facilities. Consequently, the number of contracted residents rose by
6.2% year over year to 4,635, and sales grew by 4.6% year over year to ¥3,890 million.
In our consigned dormitory business, we manage corporate and school dormitory facilities on a consigned basis, and we
endeavor to differentiate our services by promoting our status as “Japan’s best dormitory operator.” Consequently, sales

5Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcementrose by 0.9% year over year to ¥3,344 million.
As a result, the number of dormitory facilities increased by nine over the previous year to 436 (excluding consigned
facilities), contracted residents grew by 698 to 34,379, and sales increased by 2.9% over the previous year to ¥42,665
million. On the expense side, the Company continued to strictly manage costs on a facility-by-facility basis, which allowed
operating income to increase by 4.1% over the previous year to ¥6,371 million.
Hotel Business (Dormy Inn, Resort Hotels)(Unit: Million Yen)
Previous Term
Current Term
% YoY Change
FY3/14
FY3/15
Sales
43,47546,9297.9
Operating Income
3,830
4,736
23.6
The Dormy Inn business hotel business provides significant satisfaction to customers, and we not only meet the needs ofbusiness travelers needing accommodation, but also attract a wide range of other customers, including families travelling
together. Moreover, owing to the weaker yen and the strengthening of inbound marketing functions to cultivate customers
from South Korea and other parts of Asia, the number of foreign users is increasing at a rapid pace. Against this backdrop,“Natural Hot Springs Chagetsu no Yu Dormy Inn Express Kakegawa” and “Natural Hot Spring Yugiri no Yu Dormy Inn
PREMIUM Namba,” which opened in the previous fiscal year, were strong performers. This, coupled with strong usage atexisting facilities, contributed to a high occupancy rate. In addition, we opened our first overseas facility called “Dormy Inn
PREMIUM SEOUL GAROSUGIL” in Seoul, South Korea, in March. As a result, sales were up 7.7% year over year to¥23,422 million.
In the resort hotel business, occupancy rates increased over the previous term due to an increase in domestic travelers andrepeat customers at the “Inishie no yado Ikyu” resort hotel facility, opened in the previous fiscal year, and existing facilities.
Consequently, sales rose by 8.2% year over year to ¥23,506 million.
As a result, the total number of facilities in operation rose to 72 and the number of rooms to 10,824 (up 212 from theprevious fiscal year) in the hotel business overall. Sales and operating income rose 7.9% and 23.6% year over year to¥46,929 million and ¥4,736 million, respectively. These sharp gains in sales and income epitomized our robust growth.
Contracted Services Business(Unit: Million Yen)
Previous Term
FY3/14Current Term
FY3/15% YoY Change

Sales
13,025
12,626(3.1)
Operating Income
175
376
114.0
In the contracted services business, property sales in the previous fiscal year reduced sales, but income increased on greater
efficiency in the construction sector. As a result, sales decreased 3.1% to ¥12,626 million and operating income increasedby 114.0% year over year to ¥376 million.
Food Services Business(Unit: Million Yen)
Previous Term
FY3/14Current Term
FY3/15% YoY Change

Sales
5,180
5,330
2.9
―
Operating Income(43)(1)
The environment remained difficult for the food services business due to a delayed recovery in spending attributable to theconsumption tax rate hike and a surge in raw material prices. However, strict cost controls allowed sales to increase 2.9% to¥5,330 million, with an operating loss of ¥1 million.

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Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
Construction Business(Unit: Million Yen)
Previous Term
FY3/14Current Term
FY3/15% YoY Change

Sales
7,577
9,456
24.8
Operating Income
305
277
(9.2)
In the construction business, development costs remained high, but orders for hotel development increased. Consequently,
sales rose by 24.8% to ¥9,456 million and operating income decreased by 9.2% to ¥277 million.
Other Business(Unit: Million Yen)
Previous Term
FY3/14Current Term
FY3/15% YoY Change

Sales
6,955
8,871
27.6
―
Operating Income
(472)
(748)
Our other business is comprised of the wellness life business (management of senior citizen housing), the PKP business(consigned services business provided to regional government bodies), single life support business and insurance agency
business, comprehensive human resource service business, and financing services and administrative outsourcing services.
Sales of this business rose 27.6% from the previous year to ¥8,871 million, while an operating loss of ¥748 million wasincurred. The main factor behind lower operating income was the cost of opening new offices in the wellness life business.
3. Earnings Estimates for the Coming Term
(Consolidated)
Current Term
FY3/15Net Sales
110,212
Operating Income
8,217
Ordinary Income
7,663
Net Income
4,387―
Net Income Attributable toParent Company
Shareholders(Unit: Million Yen)
Coming Term
FY3/16
121,700
8,700
7,850
―

4,500

% YoY Change
10.4
5.9
2.4
2.6

(Parent Earnings)(Unit: Million Yen)
Coming Term
% YoY Change
FY3/16Net Sales
94,766
103,300
9.0
Ordinary Income
8,124
7,710
(5.1)
Net Income
5,152
4,880
(5.3)
The dormitory business occupancy rate in April, which is a key indicator to how our earnings are likely to trend during thecoming fiscal year, got off to a good start at 97.3%, up 0.1 point over the previous year.
Current Term
FY3/15In the dormitory business, Kyoritsu is taking steps to accurately respond to the diverse needs of residents, which increase
every year, by rebuilding and developing our structure. At the same time, we are improving revenue through strict controlof capacity utilization and costs for each facility.
In the hotel business, we plan to open four new facilities in the Dormy Inn business (business hotels), with the “Natural
Springs Kinko no Yu Dormy Inn PREMIUM Nagoya Sakae” opening in April 2015 and the “Kachi no Yu Dormy Inn
Ueno Okachimachi” opening in May, as well as the “Natural Springs Shirasuna no Yu Onyado Nono Sakai Minato” and the“Dormy Inn Muroran (tentative name).” We will expand into regions in Japan and overseas that enable us to maximize thepotential of Dormy Inn and respond to customer needs, and ramp up growth by firmly establishing our brand and expanding
our earnings. In the resort hotel business, Kyoritsu plans to open three hotels, namely the “Akangawa Onsen Kamui no Yu
La Vista Akangawa,” “Kawaguchiko Onsen La Vista Fuji Kawaguchiko” and “Hakone-Yumoto Onsen Tsuki no Yado
Sara.” Kyoritsu also endeavors to fortify services for customers and rigorously manage revenue as part of its efforts to
expand its “comfortable accommodations,” earning high customer satisfaction to become the leading hotel operator inoperating regions. Furthermore, Kyoritsu will accelerate its strategic development of facilities with a view to future growth
and reinforce its marketing structure to maintain repeat customers and cultivate new customers.
Kyoritsu will implement measures to increase our credibility with customers through improvements in our specialized
technologies and product lineup. These measures will also allow us to aggressively provide customers with high-quality

7

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcementbuilding maintenance and other services that are highly competitive within the market.
In the food services business, Kyoritsu will develop products and services with high levels of customer satisfaction, andimplement strict management of variable costs as part of its earnings reform strategy.
In our construction business, we will continue to support the Kyoritsu Group development and new facility opening plans,in addition to cultivating external clients and strictly managing costs.
In our other business segment, we will focus on quickly establishing a business model to make the Wellness Life businessand the Public Kyoritsu Partnership (PKP) next-generation businesses and realize higher levels of profitability.
Based on the measures mentioned above, in the hotel business, which became a strong growth driver during the current
term, a total of seven hotels will be opened, and the cost of preparing for these openings will be concentrated in this fiscal
year. Accordingly, growth will be modest temporarily compared to the previous fiscal year, but we anticipate steady
growth, with consolidated net sales expected to increase 10.4% to ¥121,700 million, operating income to rise 5.9% to¥8,700 million, ordinary income to grow 2.4% to ¥7,850 million and net income attributable to the parent company
shareholders to increase 2.6% to ¥4,500 million. On a non-consolidated basis, we forecast a 9.0% increase in net sales to¥103,300 million, a 5.1% decrease in ordinary income to ¥7,710 million and a 5.3% decrease in net income to ¥4,880
million. The seven hotels to be opened in the next fiscal year are expected to record positive income within two fiscal years.
(2) Analysis of Financial Conditions
1. Conditions of Assets, Liabilities, and Net Assets(Assets)
During the current fiscal year, total consolidated assets increased by ¥7,755 million from the end of the previous fiscal yearto ¥139,750 million. The main factors behind this increase included rises in cash and deposits, and tangible fixed assets.
(Liabilities)
Over the same period, total liabilities decreased by ¥4,568 million to ¥92,836 million due primarily to decrease inconvertible bond-type bonds with subscription rights to shares.
(Net Assets)
Net assets increased by ¥12,323 million to ¥46,913 million over the same period due primarily to disposal of treasury sharesand increase in retained earnings. Consequently, equity ratio rose by 7.4 points from the end of the previous fiscal year to33.6%.
2. Cash Flow Conditions
Consolidated cash and equivalents decreased by ¥7,991 million from the end of the previous term to ¥15,758 million at theend of the current term.
(Cash Flow from Operating Activities)
The net cash inflow from operating activities decreased by ¥12 million from the previous term to ¥7,679 million in the current
term, due in part to the increase in notes and accounts receivable - trade and inventories.
(Cash Flow from Investing Activities)
Purchase of property, plant and equipment was amongst factors of an ¥5,685 million increase in the net cash inflow to¥12,018 million in investing activities.
(Cash Flow from Financing Activities)
A net cash inflow in financing activities increased by ¥9,265 million from the previous term to ¥3,760 million reflecting therepayments of long-term loans payable and proceeds from issuance of bonds.
(Reference) Trends in Our Cash Flow Indicators
FY3/11

FY3/12

FY3/13Equity Ratio (%)
21.3
25.1
EquityRatio,
12.0
19.5
MarketCapital-Based (%)
Cash
Flow
to
16.0
11.3
Interest-Bearing
Liability Ratio (%)
Interest Coverage
3.8
4.1
Ratio (x)Equity Ratio: Capital / Total Assets
Equity Ratio, Market Capital-Based: Market Capitalization / Total Assets

8

FY3/14

FY3/15

28.4
30.7

26.2
34.4

33.6
72.6

11.6

8.8

7.5

4.0

7.3

8.9

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
Cash Flow to Interest-Bearing Liability Ratio: Interest-Bearing liabilities / Operating Cash Flow
Interest Coverage Ratio: Operating Cash Flow / Interest Payments
1. Each indicator is based on consolidated financial data.
2. Market capitalization excludes treasury stock.
3. Cash flow is based on our operating cash flow.
4. Interest-bearing debt includes all of the liabilities that bear interest payments on our consolidated balance sheet.
5. We use interest payments from our consolidated cash flow statements.
(3) Our Basic Policy Regarding the Distribution of Profits in the Current and Next Terms
We consider the capital contributed by shareholders to be invaluable, and place a high priority on the distribution of profits toour shareholders in line with our earnings performance. One of our goals is to maintain a stable level of dividends over thelong term and we have established a target dividend payout ratio of over 20%. With regards to the current term, we anticipate
increasing our dividend by ¥2 per share to ¥26 at the term-end for a full-year dividend of ¥50 per share. In the next fiscal
year, we carried out a stock split on April 1 and expect to increase dividends by an effective 20%. In the future, we will
endeavor to maintain a stable level of dividends while also responding flexibly to reflect changes in our earnings. At the sametime, we also seek to retain a level of earnings that will give our management the flexibility to make necessary capital
investments in response to changes in the market and to develop new businesses whenever appropriate.
(4) Business Risks
Below we note the important risk factors that may be considerations when making an investment in our Company. We
consider these factors to be the main risks existing during the course of our operations as of the end of the term under review.
1. Our Sales Conditions
In our core dormitory business, we operate and manage various facilities with the goal of providing a highly relaxing
environment and experience to our residents, making them feel as if they are in their own homes. In addition to our efforts tostrengthen our relationships with various schools to provide their students with room and board, we provide flexible housing
solutions to Japanese corporations, whose employee numbers change dramatically, by supplying them with only the numberof rooms they need to match the number of employees needing housing. Because our dormitories are primarily leased fromthe owners of the facilities, however, we are able to provide flexible solutions as mentioned above. At the same time, we areat risk of being negatively impacted by cancellation of resident contracts by schools and by corporations due to restructuringof their work force.
With regards to our hotel business, we have been able to insulate our Dormy Inn Hotels from large fluctuations in occupancy
rates by providing various unique services and amenities such as extended-stay programs that help to differentiate ourfacilities from those of our competitors. Despite our best efforts, we remain vulnerable to fluctuations and volatility incorporate demand caused by changes in the economy. In our resort hotel business, we are also subject to volatility inoccupancy rates arising from weather-related calamities such as typhoons, or earthquakes, as well as from fluctuations in theeconomy. Therefore sales may fall below our expectations during peak seasonal periods and our Group earnings may also be
impacted by these events.
Regarding our food services business, restaurant business is vulnerable to changes in consumer demand. Also there could be aloss of business arising from cancellations of outsourcing contracts for management of restaurants and cafeterias at golfcourses and corporate facilities. Therefore our Group earnings could be negatively impacted by these changes.
2. Financial Conditions
The Kyoritsu Maintenance Group endeavors to maintain consistent long-term growth as outlined in our intermediate-term
management strategy, but the attainment of this growth is premised upon our ability to secure assets that can be used as
dormitories and hotels. In the development of these assets, we take our financial standing into consideration and seek to makethe most effective use of all resources by utilizing various financial methods to yield safe and maximum returns. However,
our earnings and financial position are at risk of being negatively impacted by potential stagnation in the real estate market,
volatility in asset prices, extreme declines in cash flows from our existing assets, and inability to proceed as expected with
development of assets due to volatility in the financial markets.
3. Legal Regulations and Quality Control
Our Group provides both services and goods that are subject to various rules and regulations relating to food safety andsanitation under the Food Sanitation Act, privacy security under the Act on the Protection of Personal Information, and9

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
personal safety under the Inns and Hotels Act and the Fire Service Act, among other safety-related regulations and laws.
Therefore, our Group maintains compliance structures, risk committees and internal control structures to perform routinely
scheduled checks to ensure that we are in strict compliance with the various laws and regulations that are part of our business.
Despite our best efforts to prevent accidents, however, we still are at risk of losing our customers’ trust in the highly unlikely
event that an incident such as food poisoning or leakage of personal information were to occur and our earnings could also be
profoundly impacted.
4. Regarding the Implementation of “Asset Impairment Accounting”
On August 9, 2002, the Business Accounting Council announced a report entitled “Opinion Statement on the AccountingStandards for Fixed Asset Impairment Accounting.” Taking account of this Opinion Statement, the Financial AccountingStandards Foundation, Accounting Standards Board of Japan released on October 31, 2003 the policy paper entitled “Policy
Statement for the Implementation of Accounting Standards for Fixed Asset Impairment Accounting” (Implementation Policy
Number 6). In response to these moves by the accounting industry, we are now required to implement asset impairment
accounting with regards to our Group’s tangible and intangible fixed assets, including investments, other assets and leases.
And we recognize the risk of an extreme contraction in our cash flow by the implementation of asset impairment accounting
at times when there are dramatic fluctuations in the economy and financial markets.
5. Important Contracts
The dormitories and hotels we operate are leased by our company from the owners of the assets under blanket long-term leaseagreements ranging from 10 to 20 years. Some of these facilities have stipulations in their lease contracts that prohibit thecancellation of an agreement prior to the end of the lease term. Therefore, weak trends in occupancy rates of these managed
assets could negatively impact their profitability, which in turn could negatively impact our overall earnings and financial
position.
6. Our Dependence upon Interest-Bearing Liabilities and the Influence of Interest Rate Trends
In our business, we use bank debt in addition to our own capital, and our interest-bearing liabilities ratio as a percentage ofour total assets stood at 41.0% at end of fiscal year 2015. As for our Group, we are pursuing a strategy of reducing ourdependence upon interest-bearing liabilities, which includes the sale of some of our self-owned facilities to investors while
retaining the management and operational contracts for these facilities. At the end of fiscal year 2015, 85.5% of ourinterest-bearing liabilities had fixed interest rates and we therefore are insulated from near-term increases in interest rates.
However, our earnings still remain at risk of higher funding costs arising from increases in interest rates over the longer term.
2. Corporate Structure
The Kyoritsu Maintenance Group consists of the parent company, 13 subsidiaries, and 3 affiliated companies. Our main
businesses consist of dormitories, hotels, contracted services, food service, construction, and other business. The details of ourbusinesses and the services provided by our various subsidiaries and affiliates are listed below.
Business Segment
Business Description
Participating Companies
Dormitories
Student and corporate and outsourced dormitory management
Kyoritsu Maintenance Co., Ltd.
HotelsDormy Inn (Business hotels)
Resort hotels

Contracted Services

Office building management businessResidential property management business

Food Services BusinessRestaurant businessOutsourced catering business

Kyoritsu Maintenance Co., Ltd.
Kyoritsu Maintenance Korea Co., Ltd.
3 other companies
Builnet Corporation
Central BuilWork Co., Ltd.
Kyoritsu Foods Service Co., Ltd.
1 other company

Hotel restaurant outsourcing business
Construction Business

Construction, planning, design, brokerage, condominium sales,

Kyoritsu Estate Co., Ltd.

other related real estate development business
Other Businesses

Wellness Life Business (senior citizen residence management
and operations)
PKP business (consigned services business provided to regional
government bodies)
Single resident insurance and other lifestyle support services
Comprehensive human resources business
Financing business

10

Kyoritsu Maintenance Co., Ltd.
Kyoritsu Trust Co., Ltd.
Japan Placement Center Co., Ltd.
Kyoritsu Financial Service Co., Ltd.
4 other companies

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
Schematic Diagram of Our Operations

Clients

Domestic

Building rental,
maintenanceCorporate benefit
facilities maintenanceReal estate brokerage,
related services

Dormy Inn, resort
maintenance outsourcing
Dormitory renovation,
Consigned maintenanceservices
Domeal facility
management

Builnet Co., Ltd.
Central BuilWork Co., Ltd.

Contracted services
business

Office building
management businessResidential building
management business

Consignment＜Dormitory Business＞
Student, corporate dormitories, Domeal, outsourced
dormitory management

Outsourced cafeteria andhotel restaurant management

Kyoritsu Foods Service Co., Ltd.
Restaurant, cafeteria
outsourcing andrestaurant management
services

Kyoritsu Maintenance Co., Ltd.

Restaurant business
Cafeteria outsourcing

Food business

Hotel restaurant
outsourcing
Consignment＜Hotel Business＞
Dormy Inn (business hotels)
Resort hotels

Kyoritsu Estate Co., Ltd.
Construction, planning,
design, brokerage
Real estate construction,
sales, brokerage

Construction businessCondominium business
Other related business

Other business

Lifestyle product sales andother support services for
single residents in dormitories

Single resident lifestylesupport services, insurance
sales

Other business

Consignment

Labor dispatch,
headhunting services

Japan Placement Center Co., Ltd.
Labor dispatch,
headhunting＜Other Business＞
Consignment

Kyoritsu Trust Co., Ltd.
Lifestyle product sales,
insurance business

Construction, planning anddesign of dormitories

Comprehensive personnel
services
ConsignmentCollection andoperational services

Kyoritsu Financial Service Co., Ltd.
Other business
Loan business

Loan business,
administrative support
services
Consignment

Overseas
Kyoritsu Maintenance Korea Co., Ltd.
Hotel Business

Dormy Inn
(Business Hotel) Business

Hotel Business

11

Wellness Life Business(senior citizen attended care residence)
PKP business(Consigned services business provided to regional
government bodies)Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
3. Management Policy(1) Our Basic Management Policy(2) Benchmarks of Our Intermediate to Long-Term Management Strategy(3) Key Management Issues
We do not make any comments in this section because there have been no important changes from the information disclosed
in our earnings announcement for the fiscal year ended March 2013 (Published on May 15, 2013).
For further information regarding the above-mentioned earnings announcement, please refer to the following URL.
(Kyoritsu Maintenance home page)
http://www.kyoritsugroup.co.jp/ir/library.html(Tokyo Stock Exchange home page: Search page for listed companies)
http://www.tse.or.jp/listing/compsearch/index.html
4. Basic approach to selecting accounting standards
The Group prepares its consolidated financial statements using Japanese standards, in consideration of the ability tocompare periods in consolidated financial statements and make comparisons between companies.
The Group will respond appropriately to the adoption of IFRS in light of conditions in Japan and overseas.

12

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
5. Consolidated Financial Statements(1) Consolidated Balance Sheets

Previous Term
(March 31, 2014)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Real estate for sale
Real estate for sale in process
Costs on uncompleted construction contracts
Deferred tax assets
OthersAllowance for loan losses
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Others
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Lease deposits
Net defined benefit asset
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance cost
Total deferred assets
Total assets

13(Unit: Million Yen)
Current Term
(March 31, 2015)

24,707
4,986
257
372
314
948
5,913
(26)
37,473

16,115
6,841
1,007
706
514
791
5,504
(24)
31,457

48,413(18,570)
29,84324,891
4,484
8,333(6,911)
1,421
61,005
1,890

53,760(20,760)
32,99928,704
8,943
8,948(7,329)1,618
72,265
1,818

5,888
631
11,481
8,574
3
1,600
3,554
(195)
31,53894,434

6,142
1,056
11,874
9,240
11
1,115
4,854
(189)
34,105
108,190

87
87
131,995

103
103
139,750

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(Unit: Million Yen)
Current Term
(March 31, 2015)

Previous Term
(March 31, 2014)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of bonds
Income taxes payable
Advances received
Provision for bonuses
Provision for directors' bonuses
Provision for warranties for completed construction
Provision for point card certificates
OthersTotal current liabilities
Non-current liabilities
Bonds payable
Convertible bond-type bonds with subscription
rights to shares
Long-term loans payable
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Director retirement benefit reserve
Provision for point card certificates
Asset retirement obligations
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

14

3,908
15,3281,150
1,940
11,091
1,148
294
11
5,945
40,8195,238
15,7601,350
1,648
12,031
1,270
327
8
9
9,946
47,590

6,300

6,950

15,0007,253

29,772
2,583
551
1,178
311
16
204
666
56,586
97,40525,512
2,904
510
1,042
307
24
233
507
45,246
92,836

5,136
5,943
28,892(5,471)
34,5005,136
9,313
32,670(1,109)46,011

(29)
99
20
89
34,590131,995

747
120
34
902
46,913
139,750

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(2) Consolidated Income Statement and Comprehensive Income Statement(Consolidated Income Statement)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Welfare expenses
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Director retirement reserve provisions
Promotion expenses
Commission fee
Provision of allowance for doubtful accounts
Provision for point card certificates
Business consignment expenses
Rent expenses
Depreciation
Amortization of goodwill
OthersTotal selling, general and administrative expense
Operating income
Non-operating income
Interest income
Deposit redemption income
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
OthersTotal non-operating expenses
Ordinary income

15

Previous Term(April 1, 2013 toMarch 31, 2014)
105,216
83,692
21,524(Unit: Million Yen)
Current Term(April 1, 2014 toMarch 31, 2015)
110,21286,87423,338

3,817
730
307
294
55
2
1,798
3,821
17
1,106
308
190
4
1,578
14,033
7,490

3,973
764
344
327
42
2
1,852
4,335
1
20
1,263
313
183
1,694
15,120
8,217

111
106
230
274
722

131
110
302
176
721

1,046
370
1,416
6,796

865
409
1,275
7,663

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
Previous Term(April 1, 2013 toMarch 31, 2013)
Extraordinary income
Compensation income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on insurance cancellation
Loss on store closing
Loss on sales of non-current assets
Impairment loss
OthersTotal extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferredCorporate tax adjustment
Income before minority interests
Net income

16(Unit: Million Yen)
Current Term(April 1, 2014 toMarch 31, 2015)

31
246
277

93
33
127

21
123
15
160
6,914
3,245
(160)
3,085
3,829
3,829

12
17
75
105
7,685
3,109
188
3,297
4,387
4,387

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(Consolidated Comprehensive Income Statements)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

17

Previous Term(April 1, 2013 toMarch 31, 2014)
3,829(Unit: Million Yen)
Current Term(April 1, 2014 toMarch 31, 2015)
4,387

168
61
230
4,059

776
21
14
812
5,200

4,059
-

5,200
-

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(3) Consolidated Shareholders’ Equity Statements
Consolidated Figures for Fiscal Year Ended March 2014 (April 1, 2013 to March 31, 2015)(Unit: Million Yen)
Shareholders’ equity
Common stock
Balance as of start of current fiscal
year
Cumulative impact of changes
in the accounting policy
Balance at the beginning of thecurrent fiscal year reflectingchanges in the accounting policy
Increase (decrease) due to change
Dividends from surplus
Net income
Acquisition of treasury stock
Sales of treasury stock
Items other than changes inshareholders’ equity, due tochange (net)Total change during fiscal year
Balance as of end of current fiscal
year

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity

5,136

5,943

25,675(1,811)

34,943

5,136

5,943

25,675(1,811)

34,943(3,660)
0

(612)
3,829
(3,660)
0

(612)
3,829
0

-

0

3,216

(3,660)

(443)

5,136

5,943

28,892(5,471)

34,500

Accumulated other comprehensive income
Net unrealized
gains on othersecurities
Balance as of start of current fiscal
year
Cumulative impact of changes
in the accounting policy
Balance at the beginning of thecurrent fiscal year reflectingchanges in the accounting policy
Increase (decrease) due to change
Dividends from surplus
Net income
Acquisition of treasury stock
Sales of treasury stock
Items other than changes inshareholders’ equity, due tochange (net)Total change during fiscal year
Balance as of end of current fiscal
year

Retirement
benefit-related
adjustments

Translation
adjustments

Total accumulated
other comprehensive
incomeTotal net assets

(198)

37

-

(160)

34,782

(198)

37

-

(160)

34,782(612)
3,829(3,660)
0
168

61

20

250

250

168

61

20

250

(192)

(29)

99

20

(89)

34,59018

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
Consolidated Figures for Fiscal Year Ended March 2015 (April 1, 2014 to March 31, 2015)(Unit: Million Yen)
Shareholders’ equity
Common stock
Balance as of start of current fiscal
year
Cumulative impact of changes
in the accounting policy
Balance at the beginning of thecurrent fiscal year reflectingchanges in the accounting policy
Increase (decrease) due to change
Dividends from surplus
Net income
Acquisition of treasury stock
Sales of treasury stock
Items other than changes inshareholders’ equity, due tochange (net)Total change during fiscal year
Balance as of end of current fiscal
year

Capital surplus

5,136

Retained earnings

5,943

Treasury stock

28,892(5,471)

Total shareholders’equity34,500

55
5,136

5,943

28,94755(5,471)

34,556

(14)
4,377

(664)
4,387
(14)
7,747

(664)
4,387
3,369

-

3,369

3,722

4,362

11,455

5,136

9,313

32,670(1,109)46,011

Accumulated other comprehensive income
Net unrealized
gains on othersecurities
Balance as of start of current fiscal
year
Cumulative impact of changes
in the accounting policy
Balance at the beginning of thecurrent fiscal year reflectingchanges in the accounting policy
Increase (decrease) due to change
Dividends from surplus
Net income
Acquisition of treasury stock
Sales of treasury stock
Items other than changes inshareholders’ equity, due tochange (net)Total change during fiscal year
Balance as of end of current fiscal
year

(29)

Retirement
benefit-related
adjustments

Translation
adjustments
99

Total accumulated
other comprehensive
income20

89

Total net assets

34,590
55

(29)

99

20

89

34,645

(664)
4,387
(14)
7,747
776

21

14

812

812

776

21

14

812

12,267

747

120

34

902

46,91319

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(4) Consolidated Cash Flow Statements(Unit: Million Yen)
Previous Term FY3/14(April 1, 2013 toMarch 31, 2014)
Cash flow from operating activities
Income before income taxes and minority
interests
Depreciation
Amortization of long-term prepaid expenses
Loss (gain) on sales and retirement of
non-current assets
Amortization of guarantee deposits

Current Term FY3/15(April 1, 2014 toMarch 31, 2015)

6,914

7,685

2,850

3,128

148

221

(231)

57

218

224

Increase (decrease) in provision for bonuses

119

121

Interest and dividend income

(177)

(188)

Interest expenses

1,046

865

1,494

(1,855)(54)(1,239)

(261)

1,329

(85)

260

211

939

(569)

994

(432)

340

Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable - trade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in guarantee deposits
received
Increase (decrease) in unearned revenue

(143)

(143)

Others397(854)

Subtotal

11,445

11,888Interest and dividend income received

132

135

Interest expenses paid

(1,053)(863)

Income taxes refund

0

1Income taxes paid

(2,833)(3,481)

Cash flow from operating activities

7,692

7,679

Cash flow from investing activities
Payments into time deposits(1,867)(1,176)

Proceeds from withdrawal of time deposits

1,867

1,776

Purchase of securities

(68)

(709)

Proceeds from sales of securities

414

1,566

(5,643)(12,059)

818

506

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets

(46)

(75)

Purchase of long-term prepaid expenses

(166)

(305)

Payments of loans receivable(1,716)(2,226)

Collection of loans receivable

1,349

2,694

Payments for lease and guarantee deposits(1,440)(1,289)Proceeds from collection of lease and guarantee
deposits
Purchase of insurance funds

885

99

(760)

(917)

Proceeds from cancellation of insurance funds

119

138

OthersCash flow from investing activities

20

(79)

(39)

(6,333)(12,018)

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(Unit: Million Yen)
Previous Term FY3/14(April 1, 2013 toMarch 31, 2014)

Current Term FY3/15(April 1, 2014 toMarch 31, 2015)

Cash flow from financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable

(400)

1,300

4,400

4,400

Repayments of long-term loans payable(7,949)(9,528)Proceeds from issuance of bonds

14,971

1,967

Redemption of bonds(1,150)(1,150)Purchase of treasury shares(3,660)(14)

Cash dividends paid

(610)

(664)

Others(66)(70)

Cash flow from financing activities

5,535(3,760)Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

191

106

7,085

(7,991)

Cash and cash equivalents at beginning of period

16,66523,750Cash and cash equivalents at end of period

23,75015,75821

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement(5) Consolidated Financial Statement Notes(Notes Regarding Going Concern Assumptions)Not applicable(Important articles in the assumption used to create consolidated financial statements)
1. Scope of Consolidation(1) Consolidated subsidiaries: 8 Companies
Kyoritsu Estate Co., Ltd.
Kyoritsu Trust Co., Ltd.
Kyoritsu Food Service Co., Ltd.
Japan Placement Center Co., Ltd.
Kyoritsu Financial Service Co., Ltd.
Builnet Co., Ltd.
Central BuilWork Co., Ltd.
Kyoritsu Maintenance Korea Co., Ltd.
(2) Non-Consolidated Subsidiaries: 5 Companies
Flat Co., Ltd.
Okinawa Kyoritsu Maintenance Co., Ltd.
Kyoritsu Assist Co., Ltd.
Ecofoods Co., Ltd.
Ryokan Okunobo(Reason for the exclusion from scope of consolidated accounts)
The assets, sales and net income of these non-consolidated companies only amount to a marginal amount of the total
consolidated accounts and are not considered to be important enough to be included in consolidated accounts.
(Segment Information)
1) Overview of Reported Segments
Financial information relating to the individual divisions of our business segments is readily available, and ourmanagement considers the validity of these segments on a regular basis during their board of directors’ meetings inassessing segment earnings and the allocation of business resources in accordance with these segments.
Our divisions and subsidiaries responsible for the various services within our Group are also responsible fordeveloping both strategies and business activities for their respective businesses.
Therefore, our segments are defined by the basic services provided by each of the divisions and subsidiaries and are
divided into five main segments including “dormitories,” “hotels,” “contracted services,” “food services,” and“construction.”
We provide an overview of our reported business segments as follows:
Dormitories: Dormitories provided to students and corporate employees, Domeal, management of outsourced
dormitories
Hotels: Dormy Inn business hotels, resort hotels
Contracted Services: Office building and residential property management services
Food Services: Restaurant business, management of outsourced cafeterias, hotel restaurants and other facilities
Construction: Planning, design and construction, real estate brokerage business, condominiums for sale, other related
services
2) Method of calculation for sales, income and losses, assets and other items of reported segments
Profits in the reported business segments are operating income.
Intersegment earnings and transfers are based on actual market pricing.

22

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement
3) Sales, profits, assets and other information regarding reporting segments
Consolidated Figures for Fiscal Year Ended March 2014 (April 1, 2013 to March 31, 2014)(Unit: Million Yen)
Reporting Segments

Others
(Note
1)

Total

Adjustments(Note 2)

Values Usedin
Consolidated
Financial
Statements(Note 3)

Dormitories

HotelsContracted
Services

Food
Services

Construction

Subtotal

41,27643,388

7,841

1,484

4,633

98,624

6,592

105,216－

105,216

176

86

5,183

3,696

2,944

12,086362

12,449(12,449)－

41,452

43,47513,025

5,180

7,577

110,710

6,955

117,665(12,449)

105,216

6,119

3,830

175

(43)

305

10,389

(472)

9,916

(2,425)

7,490

41,68048,613

11,680861

6,265

109,101

5,983

115,085

16,910131,995

862

1,778

86

51

29

2,808

23

2,832

17

2,850

Goodwill
amortization

－

－

4

－

－

4

－

4

－

4

Impairment
loss

24

2

－

91

－

118

4

123

－

123

3,059

3,285

12

68

6

6,432

31

6,463

(186)

6,277

Net sales
External sales
Intersegment
sales andtransfers
Total
OperatingincomeAssetsOther items
Depreciation

Change inproperty,plant
andequipment
andintangible
assets(Notes) 1. Others is not considered as a reporting business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business provided to regional government bodies), single life
support services, insurance agency business, comprehensive human resources, financing services and other related
services.
2. Details of adjustments are provided below(Unit: Million Yen)
Operating Income(116)(2,309)(2,425)Intersegment transaction cancelations
Companywide expenses (Note)
Total(Note) Companywide expenses represent the expenses associated with primarily finance and accounting, and otheroperations associated with the headquarters.
(Unit: Million Yen)
Segment Assets(8,636)25,546
16,910Intersegment transaction cancelations
Companywide assets (Note)
Total(Note) Companywide assets represent cash and equivalents, marketable securities, investment securities, deferred taxes,
and other assets associated with the headquarters
3. Segment profits or losses are derived by adjusting the operating income used in the quarterly consolidated income
statement.

23

Kyoritsu Maintenance (9616), FYE March 2015 Earnings Announcement

Consolidated Figures for Fiscal Year Ended March 2015 (April 1, 2014 to March 31, 2015)(Unit: Million Yen)
Reporting Segments

Others(Note 1)

Total

Adjustments(Note 2)

Values Usedin
Consolidated
Financial
Statements(Note 3)

Dormitories

HotelsContracted
Services

Food
Services

Construction

Subtotal

42,437

46,820

6,883

1,458

4,134

101,734

8,478

110,212-110,212

228

108

5,743

3,872

5,322

15,275393

15,668(15,668)-

42,66546,92912,626

5,330

9,456

117,0098,871

125,881(15,668)

110,212

6,371

4,736

376

(1)

277

11,760(748)

11,012(2,795)8,217

43,35057,084

11,505967

10,995

123,904

7,545

131,450

8,300

139,750

1,051

1,873

83

36

25

3,071

43

3,115

13

3,128

-

-

-

-

-

-

-

-

-

-

53

11

-

9

-

74

1

75

-

75

2,754

9,208

2,768

60

4

14,796437

15,233(206)

15,027

Sales
External sales
Intersegment
sales and transfers
Total
OperatingincomeAssetsOther items
Depreciation
Goodwill
amortization
Impairment loss
Change in property,
plant and equipment
and intangible
assets(Notes) 1. Others is not considered as a reporting business segment and is comprised of the wellness life (management of senior citizen
housing), PKP business (Consigned services business provided to regional government bodies), single life support services, insurance
agency business, comprehensive human resources, financing services and other related services.
2. Details of adjustments are provided below(Unit: Million Yen)
Operating Income(262)(2,533)(2,795)Intersegment transaction cancelations
Companywide expenses (Note)
Total(Note) Companywide expenses represent the expenses associated with primarily finance and accounting, and otheroperations associated with the headquarters.
(Unit: Million Yen)
Segment Assets(8,080)16,3808,300

Intersegment transaction cancelations
Companywide expenses (Note)
Total(Note) Companywide assets represent cash and equivalents, marketable securities, investment securities, deferred taxes,
and other assets associated with the headquarters

3. Segment operating income is derived from adjustments made to the operating income of the consolidated
financial statements.

24Consolidated Income Statement
net sales
gross income
operating income
ordinary income
net income

3/05
58,014
10,894
4,407
4,411
2,343

3/06
63,084
11,783
4,611
4,823
2,010

3/07
66,287
12,242
3,745
3,787
2,413

3/08
75,60614,183
4,492
4,167
2,740

3/09
82,303
15,507
5,349
4,510
2,133

3/10
84,513
13,957
4,033
3,012
1,254

3/11
84,983
15,408
4,610
3,308
1,052

3/12
91,17017,863
6,017
4,602
2,376

3/13
99,472
19,910
6,521
5,599
3,206

3/14
105,216
21,524
7,490
6,796
3,829

Units: million yen
3/15
3/16E
110,212 121,700
23,338
na
8,217
8,700
7,663
7,850
4,387
4,500

Consolidated Balance Sheetcurrent assets
fixed assets
total assets
current liabilities
fixed liabilities
total liabilities
net assets

23,25462,336
85,62031,58533,07764,663
20,78823,35074,681
98,04744,03928,31672,35525,512

24,901
85,562
110,50737,342
46,06883,411
27,096

19,967
95,728
115,738
44,11944,07988,19927,53821,852
103,891
125,793
41,61555,26696,882
28,911

23,104
115,980
139,20941,49967,956
109,455
29,75336,783
104,428
141,31450,54660,600111,147
30,16628,234
97,319125,649
38,961
55,13594,09731,55130,852
91,335
122,259
38,892
48,58487,47634,78237,47394,434
131,995
40,81956,586
97,40534,59031,457108,190
139,750
47,59045,246
92,836
46,913

na
na
na
na
na
na
na

yy change
net sales
gross income
operating income
ordinary income
net income

7.3%
3.3%
10.1%
8.7%
9.6%

8.7%
8.2%
4.6%
9.3%
-14.2%

5.1%
3.9%-18.8%-21.5%
20.0%

14.1%
15.9%
19.9%
10.0%
13.6%

8.9%
9.3%
19.1%
8.2%
-22.2%

2.7%-10.0%-24.6%-33.2%-41.2%

0.6%
10.4%
14.3%
9.8%
-16.1%

7.3%
15.9%
30.5%
39.1%
125.7%

9.1%
11.5%
8.4%
21.7%
34.9%

5.8%
8.1%
14.9%
21.4%
19.4%

4.7%
8.4%
9.7%
12.7%
14.6%

10.4%
na
5.9%
2.4%
2.6%

margins
gross margins
operating margins
ordinary margins
net margins

18.8%
7.6%
7.6%
4.0%

18.7%
7.3%
7.6%
3.2%

18.5%
5.7%
5.7%
3.6%

18.8%
5.9%
5.5%
3.6%

18.8%
6.5%
5.5%
2.6%

16.5%
4.8%
3.6%
1.5%

18.1%
5.4%
3.9%
1.2%

19.6%
6.6%
5.0%
2.6%

20.0%
6.6%
5.6%
3.2%

20.5%
7.1%
6.5%
3.6%

21.2%
7.5%
7.0%
4.0%

na
7.1%
6.5%
3.7%

other benchmarks
ROE
ROA
equity ratio

11.8%
2.7%
24.3%

8.7%
2.1%
26.0%

9.2%
2.2%
24.4%

10.1%
2.4%
23.6%

7.6%
1.7%
22.8%

4.3%
0.9%
21.2%

3.5%
0.7%
21.3%

7.7%
1.9%
25.1%

9.7%
2.6%
28.4%

11.0%
2.9%
26.2%

10.8%
3.1%
33.6%

na
na
na