Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

May 26, 2023

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

Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

Management vision

MissionTriple Threes

Long-Term Vision For the Next Future: 3&3&3
KYORITSU Growth Vision

Making Customer First the heart of the Company
・Expressing and earning gratitude ・Striving to improve services by integrating our expertise
・Prospering while contributing to the public interest

Contributing to the progress of society as a whole throughfood and housing
For better mornings

Corporate slogan

Better mornings make great days. Great days lead to great weeks, great years, and great lives.
Changing mornings can make our lives wonderful. We welcome guests with an atmosphere that feels like home.
Our goal is to deliver healthy, happy stays every day.

Our goals for 2030
Long-term vision
KYORITSU Growth Vision

Marking the 50th anniversary of our founding by continuing to strengthen customer
satisfaction, employee satisfaction, brand power, and worker productivity while
expanding our new service areas

2030: Net sales of 300 billion yen andoperating income of 30 billion yen
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1Medium-Term
Management Plan

Long-Term Vision

KYORITSU Growth Vision
Rise Up Plan 2028

KYORITSU Growth Vision

The Kyoritsu Maintenance Group’s strengths

Under our vision—to make Customer First the heart of the Company—we’ve established the strengths we have today
through a wide range of state-of-the-art initiatives in food and residential services.

◼ Stable and continuing growth to become Japan’s largest operator of

lodgings and student and employee dormitories◼ Serving more than 8.4 million guests per year, our Dormy Inn and Kyoritsu Resort

facilities rate highly in user satisfaction◼ Our rapid growth is possible through streamlined management and provision ofquality services by focusing on operations▍ Track record (end of fiscal year ending March 31, 2023)◼ Student and employee dormitories◼ Dormy Inn series◼ Relaxing Kyoritsu Resort series◼ Senior life residences◼ 43,300 rooms in 511 facilities◼ 16,400 rooms in 91 facilities◼ 4,200 rooms in 41 facilities◼ 560 rooms in 11 facilities
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2

Medium-Term
Management Plan

A look back on the Kyoritsu Jump Up Plan (for the period from April 2017 throughMarch 2022), our previous Medium-Term Management Plan

KYORITSU Growth Vision
Rise Up Plan 2028

Despite steady progress ahead of quantitative targets during the first two years of the previous Medium-Term Management Plan, the COVID-19 pandemic
compelled us to suspend work on the plan in November 2020. Nevertheless, we were able to secure development projects capable of realizing benefits of scale
and to achieve a V-shaped recovery from COVID-19 through steady progress on the development activities specified in the previous plan. Despite the one-year
delay, development progressed ahead of plans.

▍Operating income▍New rooms

Target ▶ 19 billion yen
PlannedActual122 130

Target ▶ 17,400 rooms

COVID-19

136 145

143

19,079( FY 3/23 )

190

160

COVID-19

Dormitories

Dormy Inn

Resorts

14

3,481

2,787

3,344

6,268

FY 3/20

FY 3/21FY 3/22◼ COVID-19 in 2020 had a dramatic impact on business results

FY 3/18

12,356
2,744

2,568

FY 3/21FY 3/22

9,612

2,787

FY 3/19

Total

14,924

112-90

FY 3/18

SeniorFY 3/19

FY 3/20◼ While openings tended to be delayed, by the end of March 2023, we opened about 19,000 new

rooms—more than planned.

▍Payout ratio▍Net D/E ratio

Target ▶ More than 20%
Dividends (yen)40

Payout ratio

45

Target ▶ 0.9-1.0 or less

COVID-19

144.6%

45

20

17.7%

18.3%

25.3%

FY 3/18

FY 3/19

FY 3/20

FY 3/2120

FY 3/22◼ We maintained stable dividends despite operating losses attributable to COVID-19.

COVID-19

Net interest-bearing debt (100 million yen)

Net D/E ratio

0.86

0.84

0.90

615

667

751

FY 3/18

FY 3/19

FY 3/20

1.49

1.39

1,054

982

FY 3/21FY 3/22◼ In March 2021, we concluded a syndicated loan agreement for a line of credit to secure working

capital for the medium to long term.

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3

Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

Overview of the Medium-Term Management Plan

Recovering fromCOVID-19 to achieve
renewed growthPursuing further growth incustomer satisfaction andregional expansion

Practicing management to grow both social value and shareholder
value to achieve the Group’s mission and sustained growth

Growing social value

Synergyeffects

Growing shareholder value▍Basic policy▍Goals for 2028

▍Basic policy

Sustained growth in
the satisfaction of
all stakeholders,
including customers
and employees

Actively promoting initiatives torealize a sustainable society

Achieving sustained
growth based on
sound, robust
business foundations
designed to adapt toenvironmental change

Four priority themes
Human
Environment
resources
Governance
Food▍Goals for 2028

ROE

10％

EPS

400 yen

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4

Medium-Term
Management Plan

Quantitative targets

KYORITSU Growth Vision
Rise Up Plan 2028

Targeting average rates of growth of 10% in net sales and 30% in operating income over five years based on steady growth in thedormitory and hotel businesses
Recovery
period(100 million yen)
3,000

Quantitative target
for final fiscal yearof the previous
Medium-Term
Management Plan:
19.0 billion yen

New growth
periodDormitory business

Goals for 2028

Senior businessResorts business

2,800 350

Dormy Inn business

280

Other

billion yen

300
250

1,980

145

1,628

200

1,737 1,756

1,697
1,500

280

Net sales

Operating income (right axis)

2,500

2,000
Record highoperating income:14.6 billion yen(FY3/19)

Net sales (left axis)

COVID-19

150

28.0

Operatingincomebillion yen

Operatingincome margin

10％

100

112

1,212

100

50

73

EPS

400 yen

ROE

10％

1,000
0

14
-50
500

*

-100

Net D/E ratio

1 or less

-90
0

-150
FY 3/19

FY 3/20

FY 3/21FY 3/22

FY 3/23

FY 3/24

FY 3/25

FY 3/26

FY 3/27

FY 3/28* Conversion of euro-yen CB redeemable in January 2026
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5

Medium-Term
Management Plan

External growth

KYORITSU Growth Vision
Rise Up Plan 2028

Lifting the top line even higher by promoting new development and growth in numbers of residential and guest
rooms as well as normalized selling prices

Increasing numbersof rooms throughnew development▍Development plans

Normalizing selling
prices=Raising the top line

▍Offsetting cost inflation

FY 3/23

FY 3/28

Dormitories

43,300rooms

50,000rooms

Dormy Inn

16,400rooms

20,000rooms◼ Food costs

Resorts

4,200
rooms

5,500
rooms

cleaning)◼ Energy costs◼ Labor shortage, labor costs◼ Construction costs◼ Outsourced services (e.g., laundry,

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6

Medium-Term
Management Plan

Dormitory business development plans

KYORITSU Growth Vision
Rise Up Plan 2028■: Regions with existing locations■: Regions in which we are making our first appearance

Quantitative target■: Regions where we have no current presence [★: new facility]

50,000 rooms (+6,700 rooms)▍Growth strategies

Hokkaido 2,600 rooms (+520 rooms)◼ Aggressively opening new facilities near leading national and public universities

nationwide and achieving market growth by venturing into new areas◼ Increasing market share by deepening ties to schools and employers◼ Normalizing selling prices to offset cost inflation and other factors

Chugoku, Shikoku

900 rooms (+320 rooms)

Hiroshima Prefecture★Tokushima Prefecture (Tokushima)★Kagawa Prefecture (Takamatsu)

KyushuHokuriku, Tokai

3,600 rooms (+760 rooms)

Ishikawa Prefecture
Gifu Prefecture
Aichi Prefecture★Fukui Prefecture (Fukui)

Tohoku2,600 rooms (+580 rooms)

Miyagi Prefecture★Aomori Prefecture (Hirosaki)★Yamagata Prefecture (Yamagata)4,100 rooms (+810 rooms)

Fukuoka Prefecture
Kumamoto Prefecture
Kagoshima Prefecture
Okinawa Prefecture

Kanto, Koshin’etsu

Kansai

7,200 rooms (+1,380 rooms)

29,000 rooms (+2,330 rooms)

Tochigi Prefecture
Saitama Prefecture
Chiba Prefecture
Tokyo Metropolitan Area
Kanagawa Prefecture
Niigata Prefecture
Yamanashi Prefecture
Nagano Prefecture★Ibaraki Prefecture (Mito)

Kyoto Prefecture Osaka Prefecture
Hyogo Prefecture Nara Prefecture
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Medium-Term
Management Plan

Dormy Inn business development plans

KYORITSU Growth Vision
Rise Up Plan 2028■: Area with existing locations■: Area newly entered[★: new facility ●: existing facility] ●★: dormy inn ●★: Premium dormy inn ●★: Onyado Nono ●★: Express dormy inn
Hokkaido

Quantitative target

20,000 rooms (+ 3,600 rooms)▍Growth strategies◼ Opening new facilities centered on roadside locations of the Nono, Express, and other series◼ Normalizing selling prices through daily control that reflects cost inflation and other factors◼ Aggressively targeting foreign visitors to Japan (targeting a percentage of more than 30%

inbound guests)◼ Nationwide development based on opening facilities in areas not yet entered in Japan’s 47
prefectures● Dormy Inn PREMIUM Kushiro● Dormy Inn PREMIUM Otaru● La Vista Furano Hills● Dormy Inn PREMIUM Sapporo● Dormy Inn Wakkanai● Dormy Inn Kitami● Dormy Inn Tomakomai● Dormy Inn Asahikawa● Dormy Inn Higashimuroran● Dormy Inn Abashiri● Dormy Inn Sapporo ANNEX● Dormy Inn Obihiro★ Dormy Inn Tomakomai Annex

TohokuOverseas

Chugoku, Shikoku

Hokuriku, Tokai● Dormy Inn SEOUL Gangnam● ONYADO NONO Sakaiminato● ONYADO NONO Matsue● Dormy Inn EXPRESS Matsue● Dormy Inn PREMIUM Shimonoseki● Dormy Inn Izumo● Dormy Inn Kurashiki● Dormy Inn Okayama● Dormy Inn Hiroshima ANNEX● Dormy Inn Hiroshima● Dormy Inn Takamatsu● Dormy Inn Takamatsu Chuo Koennmae● Dormy Inn Matsuyama● Dormy Inn Kochi★ ONYADO NONO Kochi★ Dormy Inn EXPRESS Unnan★ Dormy Inn EXPRESS Tokushima● Dormy Inn Mishima● ONYADO NONO Toyama● Dormy Inn Toyama● ONYADO NONO Kanazawa● Dormy Inn EXPRESS Mikawa Anjyo ● Dormy Inn Kanazawa● Dormy Inn Gifu Ekimae● Dormy Inn EXPRESS Kakegawa● Dormy Inn Tsu● Dormy Inn EXPRESS Gotemba● Dormy Inn PREMIUM Fukui● Dormy Inn PREMIUM Nagoya Sakae★ ONYADO NONO Fukui★ Dormy Inn EXPRESS Toyohashi★ Dormy Inn EXPRESS Tsuruga★ Dormy Inn Komatsu

Seoul

Kanto, Koshinetsu

Kyushu● Dormy Inn PREMIUM Hakata Canal City mae● Dormy Inn PREMIUM Nagasaki Ekimae● Dormy Inn Hakata Gion
● Dormy Inn Nagasaki-Shinchi Chukagai● Dormy Inn Kumamoto● Dormy Inn Oita
● Dormy Inn Miyazaki● Dormy Inn Kagoshima★ ONYADO NONO Saga
★ ONYADO NONO Kumamoto★ Dormy Inn Beppu★ Dormy Inn Naha

● ONYADO NONO Sendai● Dormy Inn EXPRESS Sendai seaside● Dormy Inn EXPRESS Sendai Hirose-dori● Dormy Inn EXPRESS Koriyama● Dormy Inn Hirosaki● Dormy Inn Honhachinohe● Dormy Inn Morioka● Dormy Inn Sendai ANNEX● Dormy Inn Sendai Ekimae● Dormy Inn Akita★ Dormy Inn EXPRESS Rikuzen-Takata★ Dormy Inn EXPRESS Yamagata★ Dormy Inn Aomori

Kansai● ONYADO NONO Kyoto Shichijo● ONYADO NONO Namba● ONYADO NONO Yodoyabashi● ONYADO NONO Nara
● Dormy Inn PREMIUM Kyoto Ekimae● Dormy Inn PREMIUM Namba● Dormy Inn PREMIUM Namba ANNEX● Dormy Inn PREMIUM Osaka Kitahama● Dormy Inn PREMIUM Wakayama● Dormy Inn Osaka Tanimachi● Dormy Inn Himeji● Dormy Inn Kobe Motomachi★ ONYADO NONO Kyoto Bettei★ ONYADO NONO Otsu
★ ONYADO NONO Ise★ Dormy Inn Yokkaichi● ONYADO NONO Matsumoto● ONYADO NONO Asakusa● Dormy Inn EXPRESS Meguro-Aobadai● Dormy Inn EXPRESS Asakusa● Dormy Inn PREMIUM Shibuya Jingumae● Dormy Inn PREMIUM Tokyo Kodenmacho● Dormy Inn PREMIUM Kanda● Dormy Inn PREMIUM Ginza● Dormy Inn Niigata● Dormy Inn Matsumoto● Dormy Inn Nagano● Dormy Inn Takasaki● Dormy Inn Maebashi● Dormy Inn Mito
● Dormy Inn Ueno-Okachimachi● Dormy Inn Korakuen● Dormy Inn Ikebukuro● Dormy Inn Tokyo Hatchobori● Dormy Inn Akihabara● Dormy Inn Chiba City Soga
● Dormy Inn Kawasaki● Dormy Inn Kofu
● Dormy Inn Kofu Marunouchi★ ONYADO NONO Asakusa Bettei★ Dormy Inn Premium Yokohama★ Dormy Inn Kawagoe★ Dormy Inn Utsunomiya

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8

Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

Resorts business development plans★: new facility
Hokkaido

Quantitative target 5,500 rooms (+1,300 rooms)▍Growth strategies

Jozankei Yuraku Souan
La Vista Akangawa
La Vista Daisetsuzan
La Vista Hakodate Bay
La Vista Hakodate Bay ANNEX◼ Opening an average of 3-4 new facilities per year in candidate locations nationwide◼ Normalizing selling prices through daily controls that reflect cost inflation and other factors◼ Aggressively targeting foreign visitors to Japan (targeting a percentage of more than 15%

inbound guests)◼ Preparatory stage for establishing subbrands

TohokuInazumi Hot Spring
Naruko Hot Spring Yumoto Kissho★Takayu Hot Spring

Hokuriku, Tokai
La Vista Izusan
Wellness Forest Ito
KomeyaYukairo Kikuya
Yawatano Hot Spring Kiranosato
Yumegurinoyado Shuzenji Hot Springs Katsuragawa★ La Vista Atami Terrace★ Kawazu Hot Spring

Ancient Rest Inn Ikyu
Okuhida Onsengo Miyama Ouan
Takayama Ouan
Yururinoyu Natural Hot Spring ONYADO Yuinosho
Wakura Hot Spring Noto Kaishu
Yumegurinoyado Okuhida Hot Spring Hirayukan

Kanto, Koshin’etsu

Chugoku, Shikoku
Izumo Inishie no yado Keiun
Izumo Oyado Tsukiyo no Usagi
Kotohira Hot Spring ONYADO Shikishimakan

Kyushu
La Vista Kirishima Hills
The Beach Tower Okinawa Hotel★ Kannawa Hot Spring★ Yufuin

KansaiArashiyama Hot Spring Kadensho
Kyoto Umekouji Kadensho
Nankishirahama Hamachidori no Yu Kaishu

Kinosaki Maruyamagawa Onsen Ginka★ Kyoto Omuro Kadensho★ Arima Hot Spring

La Vista Tokyo Bay
La Vista Fuji-Kawaguchiko
La Vista Kusatsu Hills
Kusatsu Hot Spring Tokinoniwa
Kusatsu Hot Spring Konoha
Echigo Yuzawa hot Spring Yukemurinoyado Yuki-no-Hana
Wellness Forest Nasu
Shionoyu Hot Spring Rengetsu
Le Chien Kyu-Karuizawa
Hakone Yumoto Hot Spring Tsuki no Yado Sara
Hakone Kowakudani Hot Spring Mizunoto
Gora Hot Spring Tokinoyu Setsugetsuka
Gora Onsen Setsugetsuka Bettei Suiun★ La Vista Kannonzaki Terrace★ La Vista Enoshima Terrace★ Namegawa★ Sounzan★ Ohiradai★ Hakone★ Kawaguchiko

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9

Medium-Term
Management Plan

Internal growth

KYORITSU Growth Vision
Rise Up Plan 2028

Striving to increase profitability by normalizing marketing costs and improving labor productivity through digitaltransformation (DX)

Normalizing
marketing costs
through DX

Improving laborproductivity throughDX▍Increasing percentage ofreservations made throughour own site

▍Responding to labor
shortages and higher labor
costs• Promoting membership and app use• Updating the hotel reservations
system• Promoting use of comprehensive
corporate membership program• Growing product planning in-house• Labor savings achieved throughsmart check-in systems at hotels
and payment kiosks• Use of cleaning and maintenancerobotics• Labor savings through robotic
process automation, paperless
workflows, etc.

2028 target:40%=

Increasing
profitability

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10Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

Investments, returns to shareholders, and fundraising

We plan to invest energetically in development, large-scale renovations, and DX to build the foundations needed for future growth.
We will raise the funds needed for investments through means such as real estate sales and leaseback and financing from financial institutions in addition to cash
flow from operations, which is recovering.
We will implement more practical real estate sales and leaseback efforts under a new comprehensive basic agreement concluded with SMFL Mirai Partners Co., Ltd.
Investment andreturns toshareholders

Fundraising

PolicyInvesting indevelopment▍ Capital investment in opening new business sites:
170 billion yen (10 billion yen in the dormitory business and 160 billion yen in the hotel business)
・Investing in the development of new business sites for renewed growth200▍ Large-scale renovations: 20 billion yen

billion yen
Details

Returns toshareholders

Financingfrom financial
institutions
Real estate
sales andleaseback・Large-scale renovations intended to maintain and increase customer
satisfaction▍ DX investment: 10 billion yen

Large-scalerenovations
DX
investments▍ Investing a grand total of 200 billion yen over five
years to achieve renewed growth

・DX investment to increase customer satisfaction and improve laborproductivity
Striving to achieve stable and continuing growth in dividends by returning
earnings to shareholders through dividends linked to business results andand a core policy of steady, stable returns to shareholders over the% or higher earnings
long term

Cash flowfromoperations

Payout ratio

20

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11

DX strategies

Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

-KYORITSU Digital Transformation-

Drawing on digital technologies, we will seek to improve labor productivity and increase earnings by making business
operations more efficient, in parallel with increasing customer convenience and satisfaction through higher-quality
services.

Business site renovations,improvements in sales support systems

Developing anddeploying integrated backbone databases

Raising service value

Increasing the valueof our intellectual property held

◼ Upgrading the hotel reservations system◼ Continual review of business processes◼ Introducing smart check-in systems at hotels◼ Building databases of customers, buildings, andhuman resources◼ Providing Web-based support services for dormitory

residents◼ Upgrading corporate sales and contract◼ Analyzing and responding to system risks◼ Enhancing network security

management systems

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12Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

Human resource strategies

Increasing employee satisfaction by enhancing and revising training and HR systems and securing a stable supply of
capable human resources as the foundations for business growth
Organizational standardization
through fusing labor management,
hiring, and training functions

Stimulating the organization by increasing
employee satisfaction◼ Building comfortable workplaces and increasing

employee engagement◼ Encouraging use of various leave programsand enhancing employee benefit programs◼ Expanding work styles suited to employee
lifestyles

Expanding diversity in our humanresources and revising programs
to resolve issues◼ Integrated management of quantitative

Human capital
improvement cycle
and measuresand qualitative HR information acrosssections◼ Standardization of HR information at all
Group companies

Identifying issues by enhancing
training and education◼ Enhancing training programs for new hires◼ Expanding hiring channels◼ Enhancing the development of candidates◼ Creating new and diverse forms of employment

for core management through on-the-job
training◼ More targeted training for individual duties

and work◼ Revising the HR evaluation and salary systems

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13

Medium-Term
Management Plan

Sustainability strategies

KYORITSU Growth Vision
Rise Up Plan 2028

Having identified 11 materiality topics in four priority themes reflecting the Group Mission, we will strive to strengthen
corporate value over the medium to long term, as well as realize a sustainable society of healthy and happy individuals while
anticipating changes in the Group’s business environment.

MissionContributing to the progress of society as a whole through food and housing

Environment
Priority themes

Materiality
topicsPractical
initiatives

1

Environment

Social2

Human resources

Governance
3

Food

4

Governance

Reducing greenhouse gases
Reducing single-use plastics
Effective use of water resources

Creating new employment
Promoting diversity in ourhuman resources
Investing in human resources
Providing learning opportunities

Achieving food safety andreliability
Reducing food loss
Health orientation

Enhancing governance• Managing results related to industrial
wastes• Switching to energy-saving devices• Providing support to promote EVs andother eco-vehicles• Putting waste heat from hot springs tosecondary use• Reviewing in-room amenities• Reducing replacement of bed linen(No cleaning for two or more nights’ stay)• Adopting water-saving equipment• Proactive employment creation• Employing people with disabilities• Increasing percentage of womenmanagers• Adopting genderless uniforms• Enhancing training programs• Adopting a resident advisor system
in dormitories• Providing programs to support
schooling• Supporting international students
through the Kyoritsu International
Foundation• Achieving food safety andreliability through HACCPcompliant sanitation management• Reducing and recycling food loss
• Providing healthy meals• Improving governance structures• Promoting compliance• Providing training on harassment

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14

Medium-Term
Management Plan
KYORITSU Growth Vision
Rise Up Plan 2028

Prospective Business which Brings Benefits for the Company &International business expansion･Actively developing the Senior Life Business (management and operation of senior residences), which will play a main role of the Company.
･During the period covered by the new Medium-Term Management Plan, we will resume our study of international business expansion,
particularly in the dormitory and Dormy Inn businesses, which had been suspended due to COVID-19, and proceed to the stage ofbusiness potential verification.

International business expansion

Prospective Business
The Senior Life Business◼ Actively expecting the expansion ofbusiness scale for aging society in the
future.
◼ Developing new products such as private

residential home with nursing care andDormitory business

Dormy Inn business◼ We opened serviced apartments in◼ In January 2017, we opened a

Sriracha, Thailand in April 2020.
◼ Future market research will focus on
North America, Hawaii, Oceania, andEurope.

limited-service hotel in Seoul, Korea.
◼ We will resume studying a potential
expansion into Asia and North
America.

other type of housing for the elderly withspecial service.
Asia
North America, Hawaii
Dormy Residence Sriracha
North America
EuropeDormy Tsukishima
EkimaeOceania
Dormy Inn Seoul Gangnam
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15