Kyoritsu Maintenance Co., Ltd.

(Securities Code: 9616)

Summary of Consolidated Financial Results for the
Fiscal Year Ended March 31, 2024
［JGAAP］
May 20241

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2024 [based on Japanese GAAP]May 15, 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 for ordinary general meeting of shareholders:June 26, 2024
Scheduled filing date of Annual Securities Report:
Scheduled date of start of dividend payment:
June 26, 2024
Supplementary materials for the financial results: Yes
Investor conference for the financial results: Yes (For Institutional Investors)

Tel +81-3-5295-7778
June 27, 2024

(Rounded down to the nearest million yen)

1.
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(Percentage figures represent year-over-year changes)

Net salesYear ended March 31, 2024
Year ended March 31, 2023
Note: Comprehensive income:Operating income

Income attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

204,126
175,630

16.2
1.1

16,708
7,326

128.0
411.8

21,116
7,115

196.8
292.2

12,414
4,241

192.7
686.8

Year ended March 31, 2024: 13,041 million yen (176.3%)
Year ended March 31, 2023: 4,719 million yen (496.0%)

Diluted net income
per share

Income per share

Return on equity

Ordinary income
to total assets

Operating income
to net sales

Yen

Yen

%

%

%

Year ended March 31, 2024

159.12136.57

15.4

7.8

8.2

Year ended March 31, 2023

54.38

46.52

5.8

2.8

4.2

Reference: Gain/loss on equity-method investments

Year ended March 31, 2024: 5,025 million yen (–%)
Year ended March 31, 2023:– million yen (–%)
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 pershare 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

270,921272,308

86,60474,57932.0
27.4

1,109.91
956.14As of March 31, 2024
As of March 31, 2023

Reference: Shareholders' Equity:
As of March 31, 2024: 86,604 million yen As of March 31, 2023: 74,579 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.

(3) Consolidated Cash Flows
Cash flows fromoperating activities
Year ended March 31, 2024
Year ended March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

24,083
7,753-31,533-6,651-16,792
16,982

31,431
55,651

2. Dividend Payments
First(Record date)quarterYear ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)

Dividend per share
SecondThird
Year-endquarterquarter

AnnualTotal dividend
amount(annual)Dividend
payout ratio(consolidated)

Dividend to net
assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–
–

10.00
16.00

–
–

12.00
33.00

22.00
49.00

858
1,911

20.2
15.4

1.2
2.4

–

16.00

–

16.00

32.00

20.0

Note: The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Figures above for the years ended March 31,
2023 and 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

Income attributableto owners of parent

Ordinary income

Income pershare

Million yen%

Million yen%

Million yen%

Million yen%

Yen

226,000

10.7

18,50010.7

19,000-10.0

12,5000.7

160.20Note: 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) Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in thescope of consolidation): None
(2) 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:(3) Number of issued shares (common stock)(i) Number of issued shares at the end of
the period (including treasury shares)(ii) Number of treasury shares at the endof the period(iii) Average number of sharesduring theperiod

None
None
None
None

Year ended
March 31, 2024

78,439,636
sharesYear ended
March 31, 2023

78,439,636
sharesYear ended
March 31, 2024

410,902
sharesYear ended
March 31, 2023

439,336
sharesYear ended
March 31, 2024

78,020,925
sharesYear ended
March 31, 2023

77,994,113
sharesNote: 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.

(Reference) Summary of Non-Consolidated Financial Results
Results of the Non-Consolidated Fiscal Year Ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Non-Consolidated Results of Operations(Figures in percentages denote the year-on-year change.)
Net sales
Operating income
Ordinary income
IncomeYear ended March 31, 2024
Year ended March 31, 2023

Million yen%

Million yen%

Million yen%

Million yen%

178,696
160,469

11.4
13.9

15,092
5,773

161.4
–

14,865
8,011

85.6
–

6,602
5,631

17.3
–

Income per share

Diluted net
income per share

Yen

Yen

84.63
72.20

72.53
61.84

Year ended March 31, 2024
Year ended March 31, 2023

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

(2) Non-Consolidated Financial Position
Total assets
As of March 31, 2024
As of March 31, 2023

Total net assets

Shareholders'equity ratio

Net assets per share

Million yen

Million yen%

Yen

242,961
255,059

73,54367,54630.3
26.5

942.52865.97

Reference: Shareholders' equity:
As of March 31, 2024: 73,543 million yen As of March 31, 2023: 67,546 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.

* Summaries of 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
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.
3

Please see "(4) Future outlook" under "1. Overview of Operating Results, etc." on page "10" for the assumptions used forthe forecast of financial results and notes concerning the use of the forecast of financial results.
(How to obtain supplementary materials of financial results)
Supplementary materials on financial results are released on TDnet on the same day and posted to the Company website.
In addition, a video of the financial results briefing will be posted to the Company website at a later date.

4

Table of contents for attached materials
1. Overview of Operating Results, etc. ...................................................................................................................................................... 6(1) Overview of operating results .......................................................................................................................................................... 6(2) Overview of financial position ......................................................................................................................................................... 8(3) Cash flow position ........................................................................................................................................................................... 8(4) Future outlook................................................................................................................................................................................ 10(5) Basic policy on distribution of surplus and dividends for the current and next period .................................................................. 11
2. Basic Policy on Selection of Accounting Standards ............................................................................................................................ 11
3. Consolidated Financial Statements and Major Notes .......................................................................................................................... 12(1) Consolidated balance sheets .......................................................................................................................................................... 12(2) Consolidated income statement and consolidated statement of comprehensive income ................................................................ 14
Consolidated income statement ....................................................................................................................................................... 14
Consolidated statement of comprehensive income .......................................................................................................................... 16(3) Consolidated statement of changes in equity ................................................................................................................................. 17(4) Consolidated statement of cash flows ............................................................................................................................................ 19(5) Notes on consolidated financial statement ..................................................................................................................................... 21(Notes on the going concern assumption)........................................................................................................................................ 21(Change in accounting policies) ...................................................................................................................................................... 21(Additional information) ................................................................................................................................................................. 21(Segment Information etc.) .............................................................................................................................................................. 21(Per-share information) ................................................................................................................................................................... 26(Significant subsequent events) ....................................................................................................................................................... 27
4. Other.................................................................................................................................................................................................... 29

5

1. Overview of Operating Results, etc.
(1) Overview of operating results1). Overview of general financial position(Consolidated Financial Results)(in million yen)
Fiscal Year ended March 31,
2023

Fiscal Year ended March 31,
2024

Change(%)

Net sales

175,630

204,126

16.2

Operating income

7,326

16,708128.0

Ordinary income

7,115

21,116

196.8

Net income attributable toowners of parent

4,241

12,414

192.7

Despite the waning effects of COVID-19 on economic activity, the outlook for the Japanese economy during the consolidated fiscal
year remained uncertain for various reasons, including exchange-rate fluctuations, inflation, and rising geopolitical risks.
However, despite the impact of rising food, labor, and other costs, the Group’s income exceeded the previous record high set in theyear ended March 31, 2019. In the Dormitory Business, dormitory leases for students returned to levels exceeding pre-COVID. This
contributed to favorable business performance, as did booming inbound tourism demand in the Hotel Business as the numbers ofvisitors to Japan surpassed three million in the year ended March 31, 2024 for the first time ever (according to the Japan National
Tourism Organization [JNTO]).
As a result, the Company’s consolidated operating results for the fiscal year under review recovered after COVID-19, with net salesof 204,126 million yen (up 16.2% YoY), operating income of 16,708 million yen (up 128.0% YoY), ordinary income of 21,116
million yen (up 196.8% YoY), and net income attributable to owners of the parent of 12,414 million yen (up 192.7% YoY).
Key reasons for the differences between actual figures and consolidated earnings forecasts announced in the Notice of Revised
Forecasts of Consolidated Financial Results and Year-End Dividends released February 9, 2024 were growth of net sales andoperating income due to continued growth in the Hotel Business resulting from faster-than-expected recovery in the number ofvisitors to Japan and related sustained improvements in the business environment, in addition to lower than expected utilities costs.
Another reason was the boost to ordinary income of 5,025 million yen in non-operating income (gain on equity-method
investments), as announced in the Notice of Rerecording of Non-operating Income, released May 9, 2024. Net income attributableto owners of the parent, meanwhile, was affected by the recording of 2,015 million yen in impairment loss as announced in “Noticeof Recording of Extraordinary Loss and Income Taxes-Deferred (Loss)” issued today. For more information, see the NoticeConcerning Differences between Consolidated Earnings Forecasts for the Fiscal Year Ended March 31, 2024, and Actual Figures,
released today.
2) Overview of financial position by major business segment<Dormitory Business (student dormitories, employee dormitories, Domeal and contracted dormitories)
Fiscal Year ended March 31,
2023

Fiscal Year ended March 31,
2024(in million yen)
Change(%)

Net sales

50,35852,303

3.9

Operating income

4,558

5,881

29.0

In April, in its Dormitory Business, the Group opened 12 facilities nationwide, accounting for a total of 1,037 rooms. The number ofleases to Japanese students grew, due in part to our reputation for safety and security measures at our dormitory facilities. Leases toforeign students also rose sharply, resulting in a strong start to the period, with an initial occupancy rate of 98.2% (up 4.7 percentage
points from the previous year).
Net sales of the Dormitory Business overall totaled 52,303 million yen (up 3.9% YoY). Net sales were 29,999 million yen forstudent dormitories (up 6.9% YoY), 13,406 million yen for employee dormitories (up 0.9% YoY), 5,027 million yen for Domeal(studio) dormitories (up 1.6% YoY), and 3,869 million yen for contracted dormitories, which are dormitories owned by companies
and schools managed and operated by the Company on consignment (down 4.3% YoY). Operating income stood at 5,881 million
yen (up 29.0% YoY), as factors such as increases in the utilization rate and number of business facilities thanks to new openings
more than offset the cost of opening new facilities, rising food costs, and other costs.
As of the end of March 2024, the number of facilities totaled 519 locations (up by eight facilities YoY; not including contracted
dormitories), corresponding to a capacity for 44,057 occupants (up by 766 YoY). The number of residents totaled 42,732 (up 310
YoY).
6

< Hotel Business (Dormy Inn, Resorts) >(in million yen)

Fiscal Year ended March 31,
2023

Fiscal Year ended March 31,
2024

Change(%)

Net sales

101,053

125,570

24.3

Operating income

5,513

14,843

169.2

The Company opened five new facilities in its Hotel Business during the course of the year: Natural Hotsprings Awayuki-No-Yu
Dormy Inn Aomori, Natural Hotsprings Beppu Hatto Onyado Nono Beppu, Natural Hotsprings Tsutsuji-No-Yu Dormy Inn
EXPRESS Toyohashi, and Natural Hotsprings Ryoten-No-Yu Onyado Nono Asakusabettei (in the Dormy Inn Business), and La
Vista Kannonzaki Terrace (in the Resorts Business).
Thanks to growing demand for domestic business and leisure travel, the extension of nationwide tourism support measures, andsignificant growth in inbound tourism spurred by the weak yen and the resumption of and growth in international flights following
the easing of immigration restrictions, sales promotions and publicity efforts at overseas travel exhibitions and domestic travel
campaigns led to high occupancy rates and unit prices. Our reputation for attentive service and an emphasis on customer satisfaction
contributed, helping to win the satisfaction and support of numerous guests.
The recovery in our Hotel Business resulted in figures exceeding those pre-COVID, including net sales at 125,570 million yen (up24.3% YoY) and a record high operating income of 14,843 million yen (up 169.2% YoY).
As of the end of March, 2024, the Hotel Business as a whole operated 137 facilities (up five YoY) accounting for 21,367 rooms (up739 YoY).
<Comprehensive Building Management Business>(in million yen)

Fiscal Year ended March 31,
2023

Fiscal Year ended March 31,
2024

Change(%)

Net sales

18,59322,604

21.6

Operating income

671

824

22.9

In the Comprehensive Building Management Business, growth in remodeling projects and other factors resulted in net sales of
22,604 million yen (up 21.6% YoY) and operating income of 824 million yen (up 22.9% YoY).
<Food Service Business (Restaurants/ Contracted Food Service/ Contracted Hotel Restaurants, etc.)>
Fiscal Year ended March 31,
2023

Fiscal Year ended March 31,
2024(in million yen)
Change(%)

Net sales

9,528

11,103

16.5

Operating income

183

208

13.8

In the Food Service Business, various factors, including growing numbers of contracted hotel restaurants, lifted net sales to 11,103
million yen (up 16.5% YoY) and operating income to 208 million yen (up 13.8% YoY).

7

<Development Business>(in million yen)
Fiscal Year ended March 31,
2023

Fiscal Year ended March 31,
2024

Change(%)

Net sales

1,807

3,623

100.5

Operating income

133

340

155.0

In the Development Business, an increase in new construction projects and other factors resulted in net sales of 3,623 million yen(up 100.5% YoY) and operating income of 340 million yen (up 155.0% YoY).
<Other Businesses>(in million yen)
Fiscal Year ended March 31,
2023

Net sales
Operating income

Fiscal Year ended March 31,
2024

Change(%)

15,684

16,190

3.2

-55

-310

–

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); the support business for people who live
alone; the insurance agency business; comprehensive human-resource services; the financial business; and the administrative
outsourcing business. Total net sales recorded by these businesses rose to 16,190 million yen (up 3.2% YoY), with an operating lossof 310 million yen (vs. an operating loss of 55 million yen in the previous fiscal year) due mainly to costs associated with opening
new facilities in the Senior Life Business.

(2) Overview of financial position(Assets)
The total assets as of the end of current fiscal year under review were 270,921 million yen, a decrease of 1,386 million yen fromthe end of the previous fiscal year. This was mainly due to a decrease in cash and deposits.
(Liabilities)
Liabilities at the end of this consolidated fiscal year stood at 184,317 million yen, a decrease of 13,411 million yen from the endof the previous consolidated fiscal year, due mainly to a decrease in bonds and long-term loans payable.
(Net Assets)
The net assets as of the end of current fiscal year under review were 86,604 million yen, an increase of 12,025 million yen fromthe end of the previous fiscal year. This was mainly due to an increase of retained earnings.
As a result, the equity ratio became 32.0%, an increase of 4.6 points from the end of the previous fiscal year.

(3) Cash flow position
Cash and cash equivalent balance as of the end of current fiscal year under review were 31,431 million yen, a decrease of
24,219 million yen from the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities was 24,083 million yen, increased by 16,329 million yen compared to the previous
fiscal year due to the effect of net income before income taxes.
(Cash Flows from Investment Activities)
Net cash used in investing activities was 31,533 million yen, increased by 24,881 million yen compared to the previous fiscal
year due to the impact of payments for acquisition of property, plant, and equipment.
(Cash Flows from Financing Activities)
Net cash provided by financing activities was 16,792 million yen, increased by 33,774 million yen compared to the previous
fiscal year due to the impact of repayments of long-term loans payable.

8

(Reference) Trends in Cash Flow-related Indicators
Fiscal Year ended
March 31, 2020

Fiscal Year ended
March 31, 2021

Fiscal Year ended
March 31, 2022

Fiscal Year ended
March 31, 2023

Fiscal Year ended
March 31, 2024

Equity ratio (%)

38.7

29.6

29.2

27.4

32.0

Equity ratio on a market value basis
(%)

42.8

59.8

74.5

76.6

100.9

Cash flow to interest-bearing debt
ratio (annual):

5.7

-7.3

5.3

19.9

5.8

Interest coverage ratio (times):

47.2

-39.1

43.4

13.2

35.8

Equity ratio: Equity capital / total assets
Equity ratio on a market value basis: Market capitalization / total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / cash flow
Interest coverage ratio: Cash flow / interest payments
Notes:
1. Each indicator is calculated based on the consolidated financial figures.
2. Market capitalization is calculated based on the number of outstanding shares not including treasury shares.
3. Cash flow used to calculate this indicator is operating cash flow.
4. Interest-bearing debts used to calculate this indicator are all debts recorded on the consolidated balance sheet that are
subject to interest payments.
5. Interest payments used to calculate this indicator are the interest expenses paid that are stated on the consolidated statementof cash flows.

9(4) Future outlook(Consolidated Financial Results)(in million yen)
Results for the Fiscal Year
ended March 31, 2024

Outlook for the Fiscal Yearending March 31, 2025

Change(%)

Net sales

204,126

226,000

10.7

Operating income

16,70818,50010.7

Ordinary income

21,11619,000-10.0

Net income attributable toowners of parent

12,414

12,5000.7

In addition to growing demand for domestic business and leisure travel, inbound tourism demand appears likely to grow as the
fiscal year ending March 31, 2025 will mark the first full year entirely free of travel restrictions since 2019. However, with the
protracted Russia-Ukraine conflict and the growing dispute over Gaza in the Middle East, geopolitical instability continues to growas well. Current European and American monetary policies add to this instability.
As part of its strategy to assure future growth, the Group plans to open new facilities, undertake large-scale remodeling while
enhancing the features of the Dormy’s-KYORITSU HOTELS&DORMITORIES (“Dormy’s”) membership program andimplementing sustainability, human resource, and digital transformation (DX) strategies to establish solid business foundations inorder to adapt to changing societal conditions.
The Dormitory Business opened a total of eight facilities, accounting for 907 rooms nationwide, reporting an initial occupancy rateof 97.0% (down 1.2 points YoY) in April 2024. In addition to efforts to promote the Company’s strengths in safety and security toprospectives customers, an approach demonstrated during the COVID-19 pandemic, this business will continue to optimize selling
prices and to respond to rising energy and other costs through rigorous cost controls.
In the Hotel Business, the number of travelers to Japan from overseas showed an increasing trend along with continued booming
domestic demand. Both the Dormy Inn Business and the Resorts Business began the year with revenue per available room
(RevPAR) significantly above figures for the previous year. As part of new business development efforts, the Hotel Business plansto reopen Global Cabin Yokohama Chukagai, which has been closed since April 2020 due to COVID-19, after remodeling thefacility. While only one new facility is planned to open in the year ending March 2025 as a result of restraint in new openings underdevelopment adjustments related to COVID-19, in the year ending March 2026 the Dormy Inn business plans to open six facilities
and the Resorts Business one facility. Progress will be made on further new openings in accordance with the medium-term
management plan thereafter. The business also will enhance measures to grow the customer base and increase customer satisfaction
through means including updates to the reservation site in February 2024 and adoption of a status system for Dormy’s members.
The Comprehensive Building Management Business plans remodeling work and other projects for the Hotel Business, which is
expected to lead to increased earnings. It also will enhance its market competitiveness by strengthening its sales structure andimproving its technological capability and product value including specialized functions for gaining further trust from customers aswell as providing quality building-related services.
The Food Service Business expects increased earnings from the businesses of operating hotel restaurants under contract and therestaurant business thanks to the market recovery. It will continue to develop products and services that achieve higher levels ofcustomer satisfaction and improve its earning structure by implementing strict cost controls.
The Development Business will continue to support Kyoritsu Group with its development and expansion plans as well as
thoroughly developing new clients and strengthening its cost management system. It also expects to earn increased revenues fromsale of condominiums.
Among Other Businesses, the Company considers the Senior Life Business to be a target for business development and will work toquickly achieve profitability for its existing certified premium senior residences. It also plans to launch a new business to offer a
new style of senior residence.
Based on the above, for the fiscal year ending March 31, 2025 the Group forecasts net sales of 226,000 million yen (up 10.7%
YoY), operating income of 18,500 million yen (up 10.7% YoY), ordinary income of 19,000 million yen (down 10.0% YoY), and net
income attributable to owners of the parent of 12,500 million yen (up 0.7% YOY).
While ordinary income is forecast to decrease and net income attributable to owners of the parent to increase only slightly, each is
projected to increase by more than 10% YoY after excluding the extraordinary factors of gain on equity-method investments andimpairment losses both recorded in the fiscal year under review.
The above forecasts are based on information available as of the date of publication of this document. Actual results may differ forvarious reasons.

10(5) Basic policy on distribution of surplus and dividends for the current and next period
Based on the conviction that it is entrusted the capital it raises from markets by its shareholders, the Company sees returning
earnings to shareholders through performance-linked dividends that reflect earnings as a key instrument for distributing its surplus.
We will strive to increase the dividends payout ratio based on the basic stance of assuring steady and stable rewards to shareholders
over the long term, with a target payout ratio of 20 percent.
During the fiscal year, the Company recorded a new record high in income thanks to stable growth in results for its main Dormitory
Business and significant growth, powered by strong customer satisfaction, in its Hotel Business. Accordingly, we plan to pay yearend dividends of 33 yen/share, higher than the dividends forecasts announced February 9, 2024, for total annual dividends of 49
yen/share (a 15.4% payout ratio), up 27 yen (123%) from the previous fiscal year on a full-year basis. The payout ratio is 20.3%
after excluding 5,025 million yen in gain on equity-method investments and 2,015 million yen in impairment loss, recorded as
extraordinary factors arising during the period. For more information, see “Notice of allocation of surplus,” released today.
We plan to increase full-year dividends effectively by 31% in the next fiscal year (after adjustment for the recent stock split), to 32
yen/share (64 yen/share prior to the April 1, 2024 stock split, for a 20.0% payout ratio).
Pursuing even more dynamic policies on shareholder returns in the future, we will strive to achieve stable and continuous growth individends. We will retain internal reserves in the amounts needed to make effective capital investments, develop new businesses,
and implement other forward-looking management policies, while adapting to changing business conditions.

2. Basic Policy on Selection of Accounting Standards
The Group's policy for the time being is to prepare its consolidated financial statements in accordance with Japanese GAAP, taking
into consideration the comparability of consolidated financial statements over time and across companies.
The Group will properly deal with the application of IFRS taking into account domestic and international situations.

113. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(in million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable - trade and contract assets
Real estate for sale
Real estate for sale in process
Costs on uncompleted construction contracts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Lease deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

12

As of March 31, 2024

56,027
15,211
11,750
6,873
95
8,918
-74
98,80231,807
17,915
11,451
9,643
265
9,367
-64
80,38588,893-41,250
47,64339,862
14,811
19,486-14,849
4,637
106,954
4,154

94,006-45,323
48,68242,646
18,85021,766-16,643
5,123
115,303
4,487

3,525
1,612
18,581
19,915
5,864
12,606-113
61,991
173,100

15,018526
18,893
20,551
3,525
12,026-106
70,433
190,224405
405
272,308

311
311
270,921(in million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bonds with share acquisition rights
Long-term loans payable
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Allowance for loss on business withdrawal
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net Assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred hedge gain (loss)
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

13

As of March 31, 2024

7,249
23,947
4,880
865
1,935
289
28,21567,383

9,394
26,860
4,880
2,640
2,928
486
23,936
71,127

18,58030,08275,743
3,066
23
1,029
255
–
492
1,072
130,345
197,728

13,70030,05262,453
3,305
0
986
258
1,160
499
773
113,189
184,317

7,964
12,862
53,845-349
74,322

7,964
12,92065,167-331
85,721

160
648
-589
36
256
74,579272,308

675
692
-601
117
882
86,604
270,921

(2) Consolidated income statement and consolidated statement of comprehensive income
Consolidated income statement(in million yen)
Year Ended March 31, 2023
(April 1, 2022 - March 31,
2023)
Net sales
Cost of sales
Gross income
Selling, general and administrative expenses
Salaries, allowances and bonuses
Employee benefits expenses
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Provision for directors' retirement benefits
Sales promotion expenses
Business consignment expenses
Rent expenses
Fees payable
Depreciation and amortization
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on equity-method investments
Other
Total non-operating income
Non-operating expenses
Interest expenses
Fees payable
Expenses for measures for COVID-19
Other
Total non-operating expenses
Ordinary income

14Year Ended March 31, 2024
(April 1, 2023 - March 31,
2024)

175,630
142,871
32,758204,126
155,132
48,993

5,434
1,147
606
289
131
1
2,280
2,085
1,361
10,254459
1,378
25,431
7,326

5,842
1,301
1,009
486
145
2
2,540
2,504
519
14,733551
2,649
32,285
16,708

109
129
–
577
815

119
161
5,025
497
5,804

575
35
100
314
1,026
7,115

672
482
–
240
1,395
21,116(in million yen)
Year Ended March 31, 2023
(April 1, 2022 - March 31,
2023)
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of shares of subsidiaries
Loss on business withdrawal
Impairment loss
Other
Total extraordinary losses
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to owners of parent

15

Year Ended March 31, 2024
(April 1, 2023 - March 31,
2024)

18
18

–
–

–
–
345
371
716
6,417
1,309
866
2,175
4,241
4,241

441
1,137
2,015
453
4,047
17,069
2,620
2,033
4,654
12,414
12,414

Consolidated statement of comprehensive income(in million yen)
Year Ended March 31, 2023
(April 1, 2022 - March 31,
2023)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred hedge gain (loss)
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

16

Year Ended March 31, 2024
(April 1, 2023 - March 31,
2024)

4,241

12,414

77
423
-5
-17
477
4,719

515
43
-12
80
626
13,041

4,719

13,041

(3) Consolidated statement of changes in equity
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(in million yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,964

Retained earnings

12,821

Total shareholders'equityTreasury shares

50,383-361

70,807

Changes during period
Dividends from surplus

-779

-779

Net income attributable toowners of parent

4,241

4,241

Share buybacks-6-6

Disposal of treasury stock

0

0

0

Restricted stock units

41

18

60

Net changes of items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

41

3,461

12

3,515

7,964

12,862

53,845-349

74,322

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred hedge
gain (loss)

82

225

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
-583

53

Total
accumulated
othercomprehensive
income-221

Total net assets

70,586

Changes during period
Dividends from surplus-779

Net income attributable toowners of parent

4,241

Share buybacks-6

Disposal of treasury stock0

Restricted stock units60

Net changes of items otherthan shareholders' equity

77

423

-5

-17

477

477

Total changes during period

77

423

-5

-17

477

3,992

Balance at end of period

160

648

-589

36

256

74,57917

Year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(in million yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,964

Retained earnings

12,862

Total shareholders'equityTreasury shares

53,845-349

74,322

Changes during period
Dividends from surplus-1,092-1,092

Net income attributable toowners of parent

12,414

12,414

Share buybacks-5-5

Disposal of treasury stock

0

0

0

Restricted stock units

58

24

82

Net changes of items otherthan shareholders' equity
Total changes during period
Balance at end of period–

58

11,322

18

11,398

7,964

12,92065,167-331

85,721

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred hedge
gain (loss)

160

648

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
-589

36

Total
accumulated
othercomprehensive
income256

Total net assets

74,579Changes during period
Dividends from surplus-1,092

Net income attributable toowners of parent

12,414

Share buybacks-5

Disposal of treasury stock0

Restricted stock units82

Net changes of items otherthan shareholders' equity

515

43

-12

80

626

626

Total changes during period

515

43

-12

80

626

12,025

Balance at end of period

675

692

-601

117

882

86,60418

(4) Consolidated statement of cash flows(in million yen)
Year Ended March 31, 2023
(April 1, 2022 - March 31, 2023)

Year Ended March 31, 2024
(April 1, 2023 - March 31, 2024)

6,417
6,117
484
393
956
-238
575
100
35

17,069
6,780
512
391
992
-280
672
–
482

–

-5,025––345-3,354-2,170-3,619
1,047
837
1,486
1,106
-1,707
-171
269
2,126
11,038163-586
0-2,759
-100
–
7,753

441
1,137
2,015
-2,696432-3,079
2,143
566
409
-897
999
517
322
681
24,588
171
-672
1,051
-977
–
-78
24,083

Cash flows from operating activities
Net income before taxes
Depreciation and amortization
Amortization of long-term prepaid expenses
Amortization of guarantee deposits
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Expenses for measures for COVID-19
Commission fee
Share of (profit) loss of entities accounted for using equity
methodLoss on valuation of shares of subsidiaries
Loss on business withdrawal
Impairment loss
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in accounts receivable - other
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 accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Increase (decrease) in guarantee deposits received
Other
SubtotalInterest and dividends received
Interest expenses paid
Income taxes refund
Income taxes paid
Expenses for measures for COVID-19
Loss on store closings
Net cash provided by (used in) operating activities

19(in million yen)
Year Ended March 31, 2023
(April 1, 2022 - March 31, 2023)

Year Ended March 31, 2024
(April 1, 2023 - March 31, 2024)-286
20-4,644
2
-381
-267
-102
183
-1,713
415
-677
960
-158
-6,651-6,164
6-22,892
–
-652
-555
-284
224
-1,742
61
-431
1,078
-181
-31,533300
26,130-3,520-5,112
-2
-6
-778
-27
16,9820
18,08537,56555,651–
1,970-12,347-4,880-428-5-1,089-12-16,79222-24,21955,651
31,431

Cash flows from investing activities
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Payments of loan receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of convertible bonds
Syndicate loan fees paid
Share buybacks
Cash dividend paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period20(5) Notes on consolidated financial statement(Notes on the going concern assumption)
Not applicable(Change in accounting policies)
Not applicable(Additional information)
Not applicable(Segment Information etc.)[Segment Information]
1. Summary of Reportable Segments
The Group's reportable segments are structural units of the Group, for which disaggregated financial information is available, thatare subject to periodic review by the Board of Directors to make decisions on allocation of management resources and evaluatebusiness performance.
The Group establishes business units for individual services (or subsidiaries for some services) within the Group. Each business unit
or subsidiary formulates strategies for its services and engages in business activities.
Accordingly, the Group consists of service-specific segments based on these business units and subsidiaries. The Group's fivereportable segments are the Dormitory Business, the Hotel Business, the Comprehensive Building Management Business, the Food
Service Business, and the Development Business.
Each reporting segment is summarized below.
Dormitory Business:

Operation and management of student dormitories, employee dormitories,
Domeal, and contracted dormitories

Hotel Business:

The Dormy Inn (limited-service hotel) and Resorts (resort hotel)
businesses

Comprehensive Building Management Business:

The office-building management and residential-building managementbusinesses

Food Service Business:

The businesses dealing with restaurants, contracted food service, andhotel restaurants and other facilities operated under contract

Development Business:

The construction, planning, design, and brokerage businesses, thecondominium business, the real-estate sale and leaseback business, andother development-related businesses, other development-related
businesses

2. Calculation methods for net sales, income or losses, assets, and other amounts for each reporting segment
The accounting method for the reported business segments is the same as that described in "Significant Matters that Form the Basisfor Preparing Consolidated Financial Statements."
Income of the reportable segments is based on operating income.
Intersegment sales and transfers are based on market prices.

21

3. Information on net sales, income or losses, assets and other items by reporting segment
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(in million yen)Segment Information

Dormitory

Hotel

Comprehensive
Building
Management

Other
Food
Service

Development

Total

Total

Note 1

Amountrecorded on
consolidated
Adjustment
consolidated
Note 2
financialstatements
Note 3

Net sales
Net sales to externalcustomers
Intersegmental sales
or transfers

50,030100,902

7,791

1,262

571

160,558

15,071

175,630–

175,630327

151

10,802

8,265

1,235

20,781

613

21,394-21,394–

Total

50,358101,053

18,593

9,528

1,807

181,340

15,684

197,025-21,394

175,630

Segment income or
loss

4,558

5,513

671

183

133

11,059-55

11,004-3,677

7,326

Segment assets

56,022

108,896

15,7382,549

24,243

207,450

16,489223,940

48,367272,308

Depreciation andamortization

1,522

4,385

45

32

42

6,028

135

6,163

-46

6,117

Impairment loss

50

232

–

61

–

345

–

345

–

345

Increase in tangible
fixed assets andintangible fixed
assets

1,878

11,74544132

813,809152

13,961-623

13,338Other items

Notes: 1. The Other Business segment consists of the following businesses which are not included in the other reportablesegments: 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, the administrative
outsourcing business, and other related businesses.
2. Details of adjustments are described below.
(in million yen)Segment income-11

Elimination of intersegment transactions
Corporate expenses (Note)-3,666

Total-3,677

Note: Corporate expenses mainly consist of expenses related to the Accounting Department and otheradministrative departments of the head office.
(in million yen)Segment assets
Elimination of intersegment transactions-15,781

Corporate assets (Note)

64,149Total

48,367

Note: Corporate assets refer to cash and deposits, investment securities, assets related to administrative sections,and deferred tax assets retained by the head office.
3. Segment income or loss is adjusted against operating loss on the consolidated financial statements.

22

Year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(in million yen)Segment Information

Dormitory

Hotel

Comprehensive
Building
Management

Food
Service

Other
Development

Total

Total

Note 1

Amountrecorded on
Adjustment consolidated
Note 2
financialstatements
Note 3

Net sales
Net sales to externalcustomers
Intersegmental sales
or transfers

52,062

125,433

7,784

1,651

1,653

188,585

15,540204,126–

204,126240

136

14,819

9,452

1,969

26,619649

27,269-27,269–

Total

52,303

125,570

22,604

11,103

3,623

215,205

16,190231,396-27,269

204,126

Segment income or
loss

5,881

14,843

824

208

340

22,098-310

21,788-5,07916,708Segment assets

59,209118,672

16,3092,525

27,565224,283

16,775241,059

29,862

270,921

Depreciation andamortization

1,525

5,006

60

38

42

6,672

130

6,802

-21

6,780

Impairment loss

211

1,727

–

77

–

2,015

–

2,015

–

2,015

Increase in tangible
fixed assets andintangible fixed
assets

3,900

14,089

121

192

4

18,308271

18,579-675

17,904

Other items

Notes: 1. The Other Business segment consists of the following businesses which are not included in the other reportablesegments: 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, the administrative
outsourcing business, and other related businesses.
2. Details of adjustments are described below.
(in million yen)Segment income-563

Elimination of intersegment transactions
Corporate expenses (Note)-4,516

Total-5,079Note: Corporate expenses mainly consist of expenses related to the Accounting Department and otheradministrative departments of the head office.
(in million yen)Segment assets
Elimination of intersegment transactions-15,609

Corporate assets (Note)

45,471

Total

29,862

Note: Corporate assets refer to cash and deposits, investment securities, assets related to administrative sections,and deferred tax assets retained by the head office.
3. Segment income or loss is adjusted against operating loss on the consolidated financial statements.

23

[Relevant Information]
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Information by product and service(in million yen)Student
Employeedormitories dormitories

Net sales toexternalcustomers

27,98313,091

Domealcontracted
dormitories

Dormy Inn

Resorts

Officebuilding
custodial
services

4,914

4,041

57,60343,2984,371

Residentialbuilding
custodial
services

Food
Service

Development

3,419

1,262

571

Other

Total

15,071

175,630

2. Information by region(1) Net sales
This item is omitted because the net sales to external customers in Japan account for more than 90% of the net sales
on the consolidated income statement.
(2) Tangible fixed assets
This item is omitted because the amount of the tangible fixed assets located in Japan accounts for more than 90% of
the amount of the tangible fixed assets on the consolidated balance sheet.
3. Information by major customer
This item is omitted because no single customer accounts for 10% or more of the net sales on the consolidated income
statement.
Year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
1. Information by product and service(in million yen)Student

Employeecontracted
Domealdormitories dormitories

Net sales toexternalcustomers

29,94913,258

Dormy Inn

Resortsdormitories

5,003

3,851

72,753

52,680

Officebuilding
custodial
services

Residentia
l building
custodial
services

4,489

3,294

Food

Developmen
t

Other

Total

Service

1,651

1,653

15,540204,126

2. Information by region(1) Net sales
This item is omitted because the net sales to external customers in Japan account for more than 90% of the net sales
on the consolidated income statement.
(2) Tangible fixed assets
This item is omitted because the amount of the tangible fixed assets located in Japan accounts for more than 90% of
the amount of the tangible fixed assets on the consolidated balance sheet.
3. Information by major customer
This item is omitted because no single customer accounts for 10% or more of the net sales on the consolidated income
statement.

24

[Information on impairment loss on non-current assets by reporting segment]
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
This item is omitted because the same information is disclosed in the Segment Information.
Year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
This item is omitted because the same information is disclosed in the Segment Information.
[Information on the amortization of goodwill and the unamortized balance by reporting segment]
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicableYear ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable[Information on gain from negative goodwill by reporting segment]
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicableYear ended March 31, 2024 (From April 1, 2023 to March 31, 2024)
Not applicable25

(Per-share information)
Year ended March 31, 2023
(From April 1, 2022 to March 31, 2023)

Year ended March 31, 2024
(From April 1, 2023 to March 31, 2024)

Net assets per share (yen)956.14

1,109.91

Net income per share (yen)54.38

159.12

Diluted net income per share (yen)46.52

136.57

Notes: 1. Based on a resolution passed by the Board of Directors in its meeting held February 9, 2024, the Company conducted a
two-for-one stock split on common stock effective April 1, 2024. Net assets per share, 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. The bases for calculation of net income per share and diluted net income per shar are described below.
Year ended March 31, 2023
(April 1, 2022 - March 31,
2023)

Year ended March 31, 2024
(April 1, 2023 - March 31,
2024)

Net income attributable to owners of parent(in million yen)Amount not attributable to common shareholders(in million yen)

4,241

12,414––

Net income attributable to owners of parent related tocommon shares (in million yen)

4,241

12,414

Average number of common shares during the period(thousand shares)

77,99478,020Adjustment of net income attributable to owners of theparent (in million yen)(Interest income [after tax] included above) (in million
yen)

-20

-20

-20

-20

Increase in shares of common stock (thousand shares)

12,73012,730(1) Net income per share(2) Diluted net income per share

Summary of potential shares not included in the calculation ofdiluted net income per share due to the absence of dilutive effects

26

–

–

(Significant subsequent events)[Stock split and related partial amendment of the articles of incorporation]
Based on a resolution passed by the Board of Directors in its meeting held February 9, 2024, the Company conducted a stock split oncommon stock and partial amendment of the articles of incorporation effective March 31, 2024.
1. Purpose of the stock split
The purpose of the stock split is to lower the stock price of the Company per investment unit, promote a more investor-friendly
environment, improve stock liquidity, and expand the number of shareholders.
2. Overview of stock split(1) Method of split
Each share of common stock held by shareholders indicated or registered on the final shareholder registry as of the basis date ofMarch 31, 2024 was split into two shares as of that basis date.
(2) Number of shares to be added by the stock split
Total number of issued shares before the stock split
Number of shares to be added by the stock split

39,219,818
39,219,818

Total number of issued shares after the stock split
Total number of authorized shares after the stock split

78,439,636
118,000,000(3) Timetable of split
Date of record of public notice
Date of record:

March 15, 2024
March 31, 2024

Effective date:

April 1, 2024

(4) Effects on per-share information
The effects on per-share information are described in the relevant section.
3. Partial amendment of the articles of incorporation(1) Reason for the amendment
In conjunction with the stock split, in accordance with Article 184 (2) of the Companies Act of Japan, the total number ofauthorized shares stipulated in Article 5 of the Company’s Articles of Incorporation was amended effective April 1, 2024.
(2) Details of the amendment
Details of the amendment are as follows:(Changed portions are underlined.)
Current Articles of Incorporation(Total Number of Authorized Shares)

Articles of Incorporation after Amendment(Total Number of Authorized Shares)

Article 5

Article 5

The total number of shares authorized to be issued by theCompany is 59,000,000 shares.

The total number of shares authorized to be issued by theCompany is 118,000,000 shares.

(3) Timetable of the amendment
Effective Date

April 1, 2024

27

4. Other(1) Changes in the amount of stated capital
The stock split does not affect the amount of stated capital.
(2) Adjustment to conversion priceIn conjunction with the stock split, the conversion price of convertible bonds with stock acquisition rights issued by theCompany was adjusted as follows. The adjusted conversion price has been effective since April 1, 2024.
Issue name
Pre-adjustment conversion price
Adjusted conversion priceEuro-Yen Convertible Bonds with Share
Acquisition Rights due 2026

4,713 yen28

2,356.5 yen4. Other(Status of production, order and sale)
Segment sales performances for current fiscal year are shown below:
Segment

Amount (in million yen)

Year-on-year comparison (%)

52,303

3.9

Student dormitories

29,9996.9

Employee dormitories

13,4060.9

Domeal5,027

1.6

contracted dormitories

3,869

-4.3

125,570

24.3

Dormy Inn Business

72,80026.2

Resorts Business

52,76921.6

22,604

21.6

4,920

3.9

17,683

27.6

Food Service

11,103

16.5

Development

3,623

100.5

215,205

18.7

Other

16,1903.2

Adjustment-27,269–

204,126

16.2

Dormitory

Hotel

Comprehensive Building Management
Office Building Custodial Services
Business
Residential Building Custodial Services
Business

Total of Reportable Segments

Total
Note: Amount does not include consumption taxes.

29