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

3rd Quarter of Fiscal Year March 2011
Consolidated Earnings Results Update

February 2011

Kyoritsu Maintenance Consolidated Financial Data at a Glance
Consolidated Sales and YY Change
100,000

35%

90,00030%
80,00025%

70,00060,00020%

50,00015%

40,00030,00010%

20,0005%
10,00000%3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11E

m

Consolidated Operating Income and YY Change

6,000

50%
40%

5,000
30%
4,000
20%
3,000

10%
0%

2,000
-10%
1,000
-20%
0

-30%
3/99

m

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09

3/10 3/11E

Consolidated Net Income and YY Change
3,000

80%
60%

2,500

40%
2,000
20%
1,500
0%
1,000
-20%
500

-40%

0
m

-60%
3/99

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09

3/10 3/11E(Units: Million Yen)

140,000
120,000
100,000
80,00060,00040,00020,00003/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10
total assets

net assets (shareholders' equity)

14.0%
12.0%

10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

3/99

3/00

3/01

3/02

3/03
ROE

3/04

3/05

3/06

3/07

3/08

3/09

3/10

ROA

(Units: Million Yen)

(Units: Million Yen)yy change
net sales
gross income
operating income
ordinary income
net income

Consolidated Balance S heetcurrent assets
fixed assets
total assets
current liabilities
fixed liabilities
total liabilities
net assets (shareholders' equity)

Consolidated Income S tatement
net sales
gross income
operating income
ordinary income
net income

19.5%
6.4%
6.2%
2.5%

13.3%
9.0%
-3.9%
3.5%
6.7%

19,90029,86749,88019,731
16,97736,707
13,1693/00
36,788
7,173
2,369
2,281
907

8.3%
1.8%
21.4%

20.7%
7.5%
7.0%
3.0%

3.0%
9.2%
19.4%
15.9%
26.5%

23,79340,47864,32728,51322,06450,577
13,747

3/01
37,884
7,834
2,828
2,643
1,147

12.1%
2.8%
22.9%

20.4%
7.8%
7.2%
3.6%

32.2%
30.5%
38.2%
35.4%
58.8%

18,10047,76865,86727,031
23,76150,792
15,073

3/02
50,065
10,221
3,908
3,580
1,822

12.1%
2.8%
23.5%

21.5%
8.3%
7.8%
4.1%

0.1%
5.5%
6.1%
8.5%
11.9%

22,13849,49771,64731,61023,14654,755
16,824

3/03
50,10910,785
4,149
3,885
2,039

11.3%
2.7%
24.3%

19.5%
7.4%
7.5%
4.0%

7.9%
-2.3%
-3.5%
4.5%
4.8%

22,122
55,71577,86529,37429,43358,806
18,935

3/04
54,081
10,541
4,004
4,060
2,138

11.3%
2.7%
24.3%

18.8%
7.6%
7.6%
4.0%

7.3%
3.3%
10.1%
8.6%
9.6%

23,25462,336
85,62031,58533,07764,663
20,788

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

7.9%
2.1%
26.0%

18.7%
7.3%
7.6%
3.2%

8.7%
8.2%
4.6%
9.4%
-14.2%

18.5%
5.6%
5.7%
3.6%

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

9.9%
2.4%
23.8%

18.8%
5.9%
5.5%
3.6%

14.1%
15.9%
19.9%
10.0%
13.6%

23,350 24,901 19,967
74,681 85,562 95,728
98,047 110,507 115,738
44,039 37,342 44,119
28,316 46,068 44,079
72,355 83,411 88,199
25,512 27,096 27,538

3/06
63,085
11,783
4,611
4,824
2,011

8.9%
2.2%
24.5%

7.4%
1.7%
23.0%

18.8%
6.5%
5.5%
2.6%

8.9%
9.3%
19.1%
8.2%
-22.2%

21,852
103,891
125,793
41,61555,26696,882
28,911

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

4.2%
0.9%
21.4%

16.5%
4.8%
3.6%
1.5%

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

23,104
115,980
139,20941,49967,956
109,455
29,753

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

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

margins
gross margins
operating margins
ordinary margins
net margins

6.9%
1.8%
26.4%

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

other benchmarks
ROE
ROA
equity ratio
Units: million yen

3/11E * 3Q FY3/10 3Q FY3/11
88,400 *62,54562,401na *
10,852
11,6015,300 *
3,335
3,405
4,000 *
2,553
2,453
1,500 *
1,028
697
*
*
na *
24,802
19,552na *107,941
113,260na *
132,873
132,919na *
48,731
51,218na *54,52351,808na *103,255
103,026na *
29,61829,892**
4.6% *
0.7%
-0.2%
na *
-7.9%
6.9%
31.4% *
-19.0%
2.1%
32.8% *
-27.3%-3.9%
19.6% *
-32.0%-32.2%
*
*
na *
17.4%
18.6%
6.0% *
5.3%
5.5%
4.5% *
4.1%
3.9%
1.7% *
1.6%
1.1%
*
*
na *
na
na
na *
na
na
na *
22.1%
22.5%
*

3rd Quarter of Fiscal Year March 2011 Earnings Announcement
February 9, 2011
Company Name:
Kyoritsu Maintenance Co., Ltd.
Stock Code:9616
URL: http://www.kyoritsugroup.co.jp/
Director:
Mitsutaka Sato, President
Contact:
Takumi Ueda, Vice President
Tel: +81-3-5295-7778
Earnings Announcement Filing Date (anticipated):
February 14, 2011
Dividend Payment Date (anticipated):-Quarterly Earnings Presentation Document:na
Quarterly Earnings Presentation Meeting:naTokyo Stock Exchange(All figures of less than one million yen are rounded down to the nearest digit)rd1. 3 Quarter of Fiscal Year March 2011 Consolidated Earnings (From April 1, 2010 to December 31, 2010)(1) Consolidated Earnings (Aggregated)
Net Sales
3Q-FY3/11
3Q-FY3/10

Ordinary Income

Net Income% yyMillion yen% yyMillion yen% yyMillion yen% yy

62,40162,545

-0.2
0.7

3,405
3,335

2.1
-19.0

2,453
2,553

-3.9
-27.3

697
1,028

-32.2
-32.0

EPS
3Q-FY3/11
3Q-FY3/10

Operating Income

Million yen

Fully Diluted EPS
Yen

Yen

48.56
71.59

40.58
58.04

(2) Consolidated Financial Position
Total Assets

Capital:Net Asset Ratio

Book Value per Share

Million yen％

Yen132,919
139,209

29,89229,75322.5
21.2

2,080.83
2,054.83

3Q-FY3/11
FY3/10

Net Assets

Million yen

29,891 million yen in 3Q-FY3/11, 29,518 million yen in -FY3/10

2. Dividend Conditions
Registry Date

End
1Q
Yen

FY3/10FY3/11Dividends per Share
End
End
End
3Q
2Q
Year
Yen

Yen

19.00
19.00

FY3/11 (Projected)


Full
Year

Yen

Yen

19.00

38.00

19.00

38.00

Revisions to our quarterly dividend projections: NA

3. Fiscal Year March 2011 Consolidated Earnings Estimates (April 1, 2010 to March 31, 2011)
Net Sales
Full Year

Operating Income

Ordinary Income

Million Yen%yy

Million Yen%yy

Million Yen%yy

Million Yen

%yy

Yen

88,400

4.6

5,300

31.4

4,000

32.8

1,500

19.6

104.42

Revisions to our earnings projections during the first quarter:

None

Net Income

EPS



4. Others(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(2) Application of simple accounting procedures and other special accounting procedures in the preparation of ourquarterly consolidated financial statements:
Yes(3) Changes in the accounting methods, procedures, display methods used in the preparation of our consolidated
financial statements during the most recent quarter:① Changes accompanying revisions in accounting standards: Yes② Other changes: None
(4) Shares issued (Common stock)① Shares issued as of term end (including treasury stock): 15,125,582 at end 3Q-FY3/11, 15,125,582 at
end FY3/10② Treasury stock as of term end: 760,566 at end 3Q-FY3/11, 760,215 at end FY3/10③ Average shares issued during term: 14,365,240 at end 3Q-FY3/11, 14,365,958 at end 3Q-FY3/10



Information Regarding Quarterly Review Practices:
The practices for review of quarterly consolidated earnings statements pursuant to the “Financial Instruments andExchange Act” of Japan have not been conducted for the disclosure of this document.



Notes and explanations regarding the appropriate uses of our earnings projections
All projections provided within this document are based on the most accurate information available at the time ofthis writing. However our actual results may differ from our projections due to various unforeseen reasons.

Index1.

2.

3.

Information Regarding Third Quarter Consolidated Earnings

2(1) Information Regarding Consolidated Earnings Performance2(2) Information Regarding Consolidated Financial Position

3(3) Information Regarding Consolidated Earnings Estimates

3

Other Information

4(1) Important Changes in Our Subsidiaries

4(2) Application of Simple Accounting Procedures and Other Special Accounting Procedures

4(3) Changes in Accounting Methods, Procedures, Display Methods

4

Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Income Statement

7(3) Quarterly Consolidated Cash Flow Statement

8(4) Notes Regarding Going Concern Assumption

10(5) Segment Information

10(6) Notes Regarding Significant Changes in Shareholder’s Equity111. Information Regarding Our Financial Statements(1) Information Regarding Our Consolidated Earnings
During the third quarter of the fiscal year 2011, the Japanese economy continued to improve on the back of better
corporate earnings.

However uncertainties over the future of European and United States economies anddeflationary trends in consumer spending continue to cloud the future of the Japanese economy.

Against this backdrop, the Kyoritsu Group has traditionally seen high levels of revenues from new tenant contracts
for dormitories formed in April as new graduates enter the work force, but increases in the proportion of students
seeking dormitories relative to workers has led to a shift in the seasonal increase in dormitory business revenues
from the first quarter to the fourth quarter of the fiscal year.

Furthermore during the third quarter under review

Kyoritsu has implemented an highly-precise strategy to reduce vacancies which were prevalent at the start of theprevious term. With regards to the hotel business, earnings improved by large margins due to the recovery trend
in occupancy rates at our Dormy Inn business hotels and improved profitability at our resort hotels due to the strong
reception of our facilities by guests.

Therefore sales of our dormitory and hotel businesses grew from the third quarter of the previous year. However
declines in the construction and food service businesses’ sales contributed to a 0.2% or ¥144 million year-over-year
decline in total sales to ¥62,401 million. Despite the lower sales, operating income grew by 2.1% year-over-yearto ¥3,405 million, while ordinary income declined by 3.9% year-over-year to ¥2,453 million. At the same time
net income fell by 32.2% year-over-year to ¥697 million on the back of a ¥696 million loss resulting from theimplementation of asset retirement obligation accounting standards.

Our Earnings by Business Segment
Dormitory BusinessIn our dormitory business, new alliances with universities allowed occupancy rates in our student dormitories totrend strongly. With regards to sales, the increase of dormitory residents in March led to declines in new
dormitory resident contract fees. However large corporate contracts for foreign students studying in Japan and otherhighly-precise strategies to reduce vacancies allowed sales of the dormitory business to rise from the previous
year’s levels. At the same time profits declined due in part to higher levels of opening costs from newly acquired
facilities, but our profitability has improved significantly over the first half of the fiscal year due to company-wide
cost controls. Consequently the number of resident contracts rose by 920 to 27,468. Sales also grew by 1.1%
year-over-year to ¥28,631 million while operating income fell by 1.9% year-over-year to ¥3,878 million.

Hotel BusinessWith regards to our hotel business, occupancy rates of our Dormy Inn business hotels, which had been depressed
during the previous term due to restrained business travel and the outbreak of influenza, continued on a recovery
trend. Furthermore occupancy rates at our resort hotels, including six facilities newly opened in the previous term
and five new facilities opened during the current term (Obihiro, Asahikawa, Nagasaki, Kyoto Station, andShimonoseki), also trended strongly.

In the resort hotel business, our “Kusatsu Onsen TOKINONIWA,

KONOHA” newly opened in August received favorable coverage by a wide range of media. Furthermore strictvariable and headquarter cost control measures were implemented. Consequently sales and operating income roseby 14.0% and 735.9% year-over-year to ¥23,544 and ¥909 million respectively.

Contracted Services BusinessIn our contracted services business, occupancy rates in the building rental division are improving in the wake oflarge contract cancellations seen during the previous year but downward pricing pressures continued to hamper
earnings.

Consequently an operating loss of ¥12 million was incurred despite growth in sales of 1.1%

year-over-year to ¥8,398 million.

Food Service Business
The operating environment for our food service business remained severe with increased competition fromlow-priced operators and weak personal consumption trends. Despite our continued efforts to control and reduce
costs against this backdrop, sales fell by 2.8% year-over-year to ¥3,122 million. At the same time expenses fromnew restaurant openings during the term led to an operating loss of ¥122 million.

Construction Business
Implementation of a stricter selection process in the Kyoritsu Group’s development plans resulted in a decline inconstruction business sales of 31.2% year-over-year to ¥3,513 million.

Against this backdrop and despite

Kyoritsu’s efforts to strictly control costs, construction costs rose and contributed to a 50.1% year-over-year fall in
operating income to ¥69 million.

Other Business
Our other business is comprised of the wellness life (management of senior citizen housing), rental property
brokerage and management, single life support services and insurance agency business, comprehensive humanresources, financing services, administrative outsourcing services, and advertising agency services.

In thisbusiness sales fell by 23.7% year-over-year to ¥2,515 million and an operating loss of ¥39 million was incurred.
(2) Information Regarding Our Consolidated Financial Position
At the end of the third quarter of the current fiscal year our total consolidated assets declined by ¥6,289 million
from the end of the previous fiscal year to ¥132,919 million. The main factors contributing to the lower level of
total assets included declines in cash and equivalents, notes and accounts receivables, and tangible fixed assets.
Total consolidated liabilities fell by ¥6,429 million from the end of the previous fiscal year to ¥103,026 million due
primarily to a decline in advance receipts. Consolidated net assets rose by ¥139 million from the end of theprevious term to ¥29,892 million due mainly to an increase in retained earnings. Consequently our equity ratiorose by 1.3% points from the end of the previous fiscal year to 22.5%.

Cash Flow Conditions
At the end of the third quarter of the current fiscal year our cash and equivalents declined by ¥1,491 million fromthe end of the previous fiscal year to ¥9,969 million.

In our operating activities we saw a net outflow of ¥204 million, a decrease of ¥1,639 million from the net outflow
recorded during the same period of the previous fiscal year. The main factor behind this contraction in the outflow
of cash was a reduction in accounts payable accompanying a decline in accounts receivables.

In our investing activities we saw a net outflow of ¥270 million, a decrease of ¥6,335 million from the net outflow
recorded during the same period of the previous fiscal year.

Factors influencing this net outflow were declines inacquisition of tangible fixed assets and income resulting from liquidation of tangible fixed assets.

In our financing activities we recorded a net outflow of ¥1,016 million, which compares with a net inflow of¥11,750 million in the same term of the previous year.

Factors influencing this net outflow were declines in shortterm debt newly acquired and the disappearance of income derived from the issuance of corporate bonds in theprevious term.
(3) Information Regarding Our Consolidated Earnings Estimate
Our consolidated earnings estimates announced on November 8, 2010 remain unchanged.

2. Other Information(1) Changes in material subsidiaries during the period:None(2) Application of simplified accounting methodologies and or other special accounting procedures:
Simplified accounting methodologies
1) Inventories valuation methodology
A partial physical inventory, comprised of material items and sampling, was utilized for the valuationof inventories at the current quarter end. We have reduced the valuations for inventories where wehave clear evidence that carrying value exceeds estimated net realizable value.
2) Deferred tax asset and liability calculation
Deferred tax asset recoverability assessment in the current quarter is based on the prior fiscal year’sbusiness outlook, tax planning strategies and other factors if it is determined there has been no
significant changes to the overall business environment since the end of the prior fiscal year.
Quarterly financial reporting standards in the preparation of quarterly financial statements
Provision for taxes
The provision for taxes is based upon applying the estimated effective tax rate for the current fiscal year,
including the current quarter, to income before income taxes. Adjustments to income taxes are includedin the provision for taxes.

(3) Changes in accounting principles, policies, procedures, and display methodology
Application of accounting standards for asset retirement obligations
Accounting Standard for Asset Retirement Obligations (ASBJ Statement No. 18, March 31, 2008) and
Guidance on Accounting Standard for Asset Retirement Obligations (ASBJ Statement No. 21, March 31,2008) have been applied from the first quarter of the fiscal year March 2011.
This led to declines of ¥35 million in operating and ordinary incomes and a decrease of ¥731 million in
net income before taxes.
Change in asset retirement obligations amounted to 135 million yen due to application of accounting
standards for asset retirement obligations.

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Units: Million Yen)
End 3Q FY3/11

End FY3/10(December 31, 2010)(March 31, 2010)

AssetsCurrent assets
Cash and deposits

10,926

12,594

Notes, accounts receivable

2,622

3,882

Real estate for sale

1,015

268

615

999

4,406

5,404

-34

-44

19,552

23,104

Buildings, structures (net amount)

35,73633,174Land

28,001

28,626

Others (net amount)

15,603

20,358

Total tangible fixed assets

79,341

82,159

3,859

3,848

Investment securities

7,059

6,646

Deposits

8,954

8,582

Security deposits

7,387

7,512

Others

6,817

7,431

Doubtful account reserves

-159

-198

30,05929,972

113,260

115,980

Deferred assets

107

124

Total assets

132,919

139,209

Uncompleted construction payment
Other
Doubtful account reserves
Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets
Investment, other assets

Total investments, other assets
Total fixed assets

(Units: Million Yen)

End 3Q FY3/11

End FY3/10(December 31, 2010)(March 31, 2010)

Liabilities
Current liabilities
Notes, accounts payable

1,983

3,846

Short term debt

24,071

17,937

Portion of bond payable within 1 year

11,740

1,890

381

581

8,061

11,932

Bonus reserves

329

623

Director bonus reserves

100

147

Completed construction guarantee reserves

1111

Construction work loss reserves

44

Others

4,534

4,524

Total current liabilities

51,21841,499

Bonds

8,215

19,385Long term debt

36,05741,264Retirement benefit reserves

1,271

1,199

Director retirement reserves

313

339

Others

5,951

5,766

Total fixed liabilities

51,80867,956103,026

109,455

Unpaid taxes
Deposits

Fixed liabilities

Total liabilities

Net assets
Shareholders’ equity
Capital

5,136

5,136

Capital surplus

5,943

5,943

Retained earnings

20,856

20,704

Treasury stock-1,470-1,470Total shareholders’ equity

30,46530,313

Other marketable security valuation gains

-574

-795

Total valuation, translation gains

-574

-795

Minority interests

1

235

Total net assets

29,89229,753

Total liabilities, net assets

132,919

139,209

Valuation, translation gains

(2) Quarterly Consolidated Income Statement(Third Quarter Consolidated Income Statement)(Units: Million Yen)

3Q FY3/10

3Q FY3/11(From April 1, 2009

(From April 1, 2010

to December 31, 2009)

to December 31, 2010)

Net sales

62,54562,401CGS

51,69250,799Gross iincome

10,852

11,601

SG&A

7,517

8,195

Operating income

3,335

3,405

Interest income

58

60

Dividend income

27

33

Deposit redemption income

137

131

Subsidies－98

Others80

82

Total non-operating income

303

406

Interest payment

855

1,041

Others

230

317

1,086

1,358

2,553

2,453

17

－

Non-operating income

Non-operating expense

Total non-operating expense
Ordinary income
Extraordinary income
Marketable securities liquidation profit

Insurance policy refunds

26

64

Fixed asset liquidation profit－

65

Return from doubtful account reserves

15－

Others051

Total extraordinary income

60

180

Asset retirement obligation accounting implementation－

696

Marketable securities valuation loss

493－

Others22

215

Total extraordinary loss

516

911

Net income before taxes

2,097

1,722

Corporate and other taxes

1,041

1,007

Net income before adjustment for minority interest－

714

Minority interest

27

16

1,028

697

Extraordinary loss

Net income

(3) Quarterly Consolidated Cash Flow Statement(Units: Million Yen)
3Q FY3/10

3Q FY3/11(From April 1, 2009

(From April 1, 2010

to December 31, 2009)

to December 31, 2010)

Cash flow from operating activities
Net income before taxes, other adjustments

2,097

1,722

Depreciation, amortization

2,989

3,228

Amortization of long term prepayment

191

198

Amortization of security deposit－

117

Change in bonus reserve

-565

-293

Interest, dividends received

-85

-93

Interest paid

855

1,041

Insurance policy redemption income

－

-215

Marketable securities valuation income

493

160

Change in receivables

57

1,260

Change in accounts due

534

563

Change in inventories

-702

-401

Change in payables-829-1,934

Change in unpaid expenses－

181

Change in advance receipt-2,915-4,160Change in unpaid consumption tax

-278

332

Change in deposits

-706

-722

Change in security deposits

-967

-201

Change in advance income

-106

-107

Obligation from asset retirement accounting－

696

Others

113

569

174

1,939

64

73

-828

-1,03442

43-1,298-1,227

SubtotalInterest, dividends received
Interest payments
Corporate tax returns
Corporate tax

Cash flow from operating activities-1,844-204

Acquisition of marketable securities-278-1,166

Sales of marketable securities

235

704

Acquisition of tangible assets-4,336-1,833

Sales of tangible fixed assets

－

2,579

Acquisition of intangible fixed assets

-740

－

Acquisition of long term prepayments

-417

－

Loans extended

-359

-675

Loans recovered

530

937

Deposit, security deposit payments-1,896-1,283Return of deposits, security deposits

610

323

Acquisition of shares in subsidiaries

－

-311

Returns from insurance policy redemption－

648

Others44-192-6,606-270

Cash flow from investing activities

Cash flow from investing activities(Units: Million Yen)

3Q FY3/10

3Q FY3/11(From April 1, 2009

(From April 1, 2010

to December 31, 2009)

to December 31, 2010)

Cash flow from financing activities
Change in short term debt

17,457

7,176

－

860

Repayment of long term debt

-9,337-7,110Bond issuance

6,905

－

Bond redemption payment-2,736-1,320Treasury stock acquisition-1-0

New long term debt

Dividend payment

-517

-517

Dividend payment to minority interest

-19

-9

Others－-95

11,750-1,016

Net change in cash and equivalents

3,300-1,491

Cash and equivalents at term start

10,931

11,460Cash and equivalent at term end

14,231

9,969

Third Quarter of Fiscal Year March 2010 (From April 1, 2009 to December 31, 2009)(Units: Million Yen)

Cash flow from financing activities(4) Assumptions Regarding Going Concern
Not applicable(5) Segment Information(Information Regarding Our Various Business Segments)
Contracted
Dormitories

Food

HotelsCompany
Construction

Services

Service

Other

Total

Consolidated
Wide

Sales
28,22920,576

5,726

1,501

4,364

2,147

62,545－62,545

89

75

2,579

1,709

743

1,148

6,346

(6,346)－

Total

28,31820,651

8,306

3,211

5,108

3,296

68,891(6,346)62,545

Operating income

3,951

108

126

-15

139

105

4,416

(1,080)

3,335

(1)

External sales(2)

Internal sales(Reference) Changes in accounting principles(Change in accounting principle for construction projects-in-progress and cost of construction)
For construction contracts entered into from the first quarter of the current fiscal year, we have commenced applicationof Accounting Standards Board of Japan’s Statement No. 15, “Accounting Standard for Construction Contracts” andGuidance No. 18, “Guidance on Accounting Standard for Construction Contracts” issued on December 27, 2007. Thesechanges led to increases of 440 and 4 million yen in consolidated sales and operating income of our construction
business segment respectively during the third quarter.

(Regional Sales Information)
During the third quarter of the previous fiscal year (From April 1, 2009 to December 31, 2009)
We did not have any overseas subsidiaries or offices and therefore we do not report any regional sales information.

(Overseas Sales)
During the third quarter of the previous fiscal year (From April 1, 2009 to December 31, 2009)
We did not have any overseas sales.

(Business Segment Information)
1. Overview of Our Business 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 meetingsin assessing 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 developing
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 anddivided 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, Dormier, management ofoutsourced 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 otherfacilities

Construction:

Planning, design and construction, real estate brokerage business, condominiums for
sale, other related services

2. Sales and Income Information of Reported Business Segments
Third Quarter of Fiscal Year March 2011 (From April 1, 2010 to December 31, 2010)(Units:Million Yen)

Business Segments
Company
Contracted
Dormitories

OthersFood

HotelsServices

Services

Construction

Subtotal

Total

Consolidated
Wide

Sales
External sales

28,55023,482

5,377

982

2,090

60,483

1,917

62,401－

62,401

Internal sales

80

61

3,021

2,140

1,423

6,727

598

7,325

-7,325－

Total

28,631

23,544

8,398

3,122

3,513

67,2102,515

69,726-7,32562,401

Operating income

3,878

909

-12

-122

69

4,722

-39

4,683

-1,2773,405(Notes)1. Other is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), rental property brokerage and management, single life support services, insurance agency business,
comprehensive human resources and administrative outsourcing services, financing services and advertising agency
services.
2. The ¥1,277 million in company-wide operating losses, ¥34 million result from cancelling transactions within our Groupand include another ¥1,311 million that cannot be allocated to a specific business segment.

They also include costs

arising from headquarter financing and accounting divisions and other costs associated with our administrative function.
3. The losses or income in each of our segments is taken into account and adjusted for at the operating income

level in our quarterly consolidated income statements

3. Information concerning impairment loss on fixed assets and goodwill.
None(Additional Information)
Beginning from the first quarter of the current fiscal year we have implemented the “Application Policy of
Accounting Standards for Disclosure of Business Segment Information” (Corporate Accounting Standards
Application Policy Number 20, March 21, 2008) and “Accounting Standards for Disclosure of Segment
Information” (Corporate Accounting Standards Number 17, March 27, 2009).

(6) Significant Changes in Our Shareholders Equity
We do not note any significant changes.