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

First Half of Fiscal Year March 2013
Consolidated Earnings Results Update
November 2012

Kyoritsu Maintenance Consolidated Financial Data at a Glance
120,000

Consolidated Sales and YY Change

35%
30%

100,000

25%
80,00020%
60,00015%
40,00010%
20,0005%

0

0%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13E

Consolidated Operating Income and YY Change
7,000

50%

6,000

40%
30%

5,000

20%
4,000
10%
3,000
0%
2,000

-10%

1,000

-20%

0

-30%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13E

Consolidated Net Income and YY Change
140%

3,000

120%
2,500

100%
80%

2,000

60%
40%

1,500

20%
1,000

0%
-20%

500

-40%
-60%

0
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13E(Units:Million Yen)

160,000
140,000
120,000
100,000
80,00060,00040,00020,0000
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12

total assets

net assets (shareholders' equity)

14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
3/00

3/01

3/02

3/03

3/04
ROE

3/05

3/06

3/07

3/08

3/09

3/10

3/11

3/12

ROA

(Units:Million Yen)

(Units:

Million Yen)

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

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

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

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

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%

7.4%
1.7%
23.0%

18.8%
6.5%
5.5%
2.6%

8.9%
9.3%
19.1%
8.2%
-22.2%

4.2%
0.9%
21.4%

16.5%
4.8%
3.6%
1.5%

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

3.5%
0.7%
21.3%

18.1%
5.4%
3.9%
1.2%

0.6%
10.4%
14.3%
9.8%
-16.1%

7.7%
1.9%
25.1%

19.6%
6.6%
5.0%
2.6%

7.3%
15.9%
30.5%
39.1%
125.7%

23,350 24,901 19,967 21,852 23,104 36,783
28,23474,681 85,562 95,728 103,891 115,980 104,428
97,31998,047 110,507 115,738 125,793 139,209 141,314 125,649
44,039 37,342 44,119 41,615 41,499 50,546
38,961
28,316 46,068 44,079 55,266 67,956 60,600
55,13572,355 83,411 88,199 96,882 109,455 111,147
94,09725,512 27,096 27,538 28,911 29,753 30,166
31,551

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

8.9%
2.2%
24.5%

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

3/00
36,788
7,173
2,369
2,281
907

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

32.2%
30.5%
38.2%
35.4%
58.8%

21.5%
8.3%
7.8%
4.1%

11.3%
2.7%
24.3%

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

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

19,90029,86749,88019,731
16,97736,707
13,169

3.0%
9.2%
19.4%
15.9%
26.5%

20.4%
7.8%
7.2%
3.6%

12.1%
2.8%
23.5%

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

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

13.3%
9.0%
-3.9%
3.5%
6.7%

20.7%
7.5%
7.0%
3.0%

12.1%
2.8%
22.9%

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

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

19.5%
6.4%
6.2%
2.5%

8.3%
1.8%
21.4%

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
net asset ratio
Units: million yen

3/13E
100,000
na
6,130
4,850
2,390

na
na
na
na
na
na
na

*
*
*
*
*
*
*

*
*
*
*
*
*
*
*
*

*
9.7% *
na *
1.9% *
5.4% *
0.6% ***
na *
6.1% *
4.9% *
2.4% *
*
*
na *
na *
na *
*

28,234
97,319125,649
38,961
55,13594,09631,551

*
*
*
*
*
*
*

18,440115,483
134,037
50,63453,419104,053
29,983

2.4%
9.1%
18.0%
17.1%
81.7%

1H3/11 1H3/12 1H3/13
42,78943,83347,333
8,396
9,162
10,103
2,847
3,359
3,653
2,190
2,564
3,039
631
1,148
1,619

-1.2%
1.2%
-9.7%
-15.2%-47.2%

20.9%
7.7%
5.8%
2.6%

*
8.0% *
10.3% *
8.8% *
18.5% *
41.1% ***
21.3% *
7.7% *
6.4% *
3.4% *
*
*
na *
na *
27.6% *
*

*
*
*
*
*
*
*
*
*

19.6%
6.7%
5.1%
1.5%

na
na
25.2%

22,75896,531
119,377
36,03650,40186,43832,939

na
na
23.5%

First Half of Fiscal Year March 2013 Consolidated Earnings Announcement
November 9, 2012

Company Name:
Kyoritsu Maintenance Co., Ltd.
Tokyo Stock Exchange
Stock Code:9616
URL: http://www.kyoritsugroup.co.jp/
Director:
Mitsutaka Sato, President
Contact:
Takumi Ueda, Vice President,
Tel: +81-3-5295-7778
Quarterly Earnings Announcement Report Filing Date (Anticipated): November 14, 2012
Dividend Payment Date (Anticipated):
December 5, 2012
Quarterly Earnings Presentation Document (Anticipated):
Available
Quarterly Earnings Presentation Meeting (Anticipated):
Available (For institutional investors and analysts)(All figures of less than one million yen are rounded down to the nearest digit)

1. First Half of Fiscal Year March 2013 Consolidated Earnings (April 1, 2012 to September 30, 2012)(1) Consolidated Earnings (Aggregated)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen％

Million yen％

Million yen％

Million yen％

47,333
43,833

8.0
2.4

3,653
3,359

8.8
18.0

3,039
2,564

18.5
17.1

1,619
1,148

41.1
81.7

1H FY3/13
1H FY3/12(Note) Comprehensive income: ¥1,656 million (49.8% yy) in 1H FY3/13, ¥1,106 million (46.9% yy) in 1H FY3/12
EPS

Fully Diluted EPS

1H FY3/13
1H FY3/12

Yen

Yen

114.75
79.92

―
67.64

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Asset Ratio

Book Value Per Share

Million yen

Million yen％

Yen

119,377
125,649

32,93931,55127.6
25.1

2,334.22
2,235.83

1H FY3/13
FY3/12(Note) Capital: ¥32,939 million in 1H FY3/13, ¥31,551 million in FY3/12

2. Dividend Conditions
Dividends per Share
1Q EndFY3/12
FY3/13
FY3/13 Projected

2Q End3Q End4Q End

Total

Yen

Yen

Yen

Yen

Yen

―
―

19.00
19.00

―

19.00

38.00

―

19.00

38.00

(Note) Recent changes in dividend projections: None

3. Fiscal Year March 2013 Consolidated Earnings Projection (April 1, 2012 to March 31, 2013)
Net Sales
Full Year

Operating Income

Ordinary Income

Net Income

EPS

Million yen％

Million yen％

Million yen％

Million yen％

Yen

100,000

9.7

6,130

1.9

4,850

5.4

2,390

0.6

169.36(Note) Recent changes in earnings estimates: None

Special Notes(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(2) Application of special accounting procedures in the preparation of our quarterly consolidated financial statements:
Applicable(3) Changes in the accounting policies, procedures, and changes or revisions in the display of accounting estimates:① Changes accompanying revisions in accounting standards: Applicable② Other changes: None
③ Changes in accounting estimates: Applicable④ Redisplay of revisions: None

(4) Shares issued (Common stock)
Shares issued as of term end (including treasury stock):
Treasury stock as of term end:
Average during the term:

1H FY3/13
1H FY3/13
1H FY3/13

15,125,582 FY3/12
1,014,074 FY3/12
14,111,629 1H FY3/12

15,125,582
1,013,844
14,364,739

z Information Regarding Quarterly Review Practices:
The practices for review of quarterly consolidated earnings statements pursuant to the “Financial Instruments and Exchange
Act” of Japan have not been conducted for the disclosure of this document.
z 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 of thiswriting. However our actual results may differ from our projections due to various unforeseen reasons.

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13

Index
1. Qualitative Information about Quarterly Earnings

2(1) Qualitative Information about Consolidated Business Performance2(2) Qualitative Information about Consolidated Financial Position

3(3) Qualitative Information about Consolidated Earnings Estimates3

2. Summary Information (Notes)

3(1) Changes in Important Consolidated Subsidiaries during the term under review

3(2) Implementation of Special Accounting Methods in the Creation of Quarterly Consolidated Financial Statements

3(3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates3

3. Quarterly Consolidated Financial Statements

4(1) Quarterly Consolidated Balance Sheets

4(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement

6

Quarterly Consolidated Income Statement
Consolidated First Half

6

Quarterly Consolidated Comprehensive Income Statements
Consolidated First Half

7(3) Quarterly Consolidated Cash Flow Statements

8(4) Notes Regarding Going Concern Assumptions

10(5) Notes Regarding Significant Changes in Shareholders’ Equity

10(6) Segment Information

10

-1-

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13

1. Qualitative Information about Quarterly Earnings(1) Qualitative Information about Consolidated Business Performance
During the first half of the current fiscal year, the Japanese economy was clouded by uncertainties arising from the halt ofgrowth in individual consumption, a slowing in China’s economic growth, and stagnation in Europe’s economic growth dueto the sovereign debt crisis. Against this backdrop, the main dormitory business got off to a good start to the year withoccupancy rates of 96.5% (A 1.2% point improvement from the start of the previous term). At the same time, the hotelbusiness also benefitted from favorable occupancy rates in both the Dormy Inn (Business hotel) and resort hotel operations
that exceeded the previous year’s levels.
The favorable trends in these two main businesses allowed sales and operating income to rise by 8.0% and 8.8%
year-over-year to new record highs of ¥47.333 and ¥3.653 billion respectively. At the same time ordinary and net incomesalso rose by18.5%, and 41.1% year-over-year to ¥3.039 and ¥1.619 billion respectively.
Our earnings by business segment are reported below.
Dormitory BusinessOur dormitory business saw a good start to the year with occupancy rates exceeding the previous term by 1.2% points to
96.5% at the start of the term. At the end of September, the number of contracted dormitory residents grew by 779 fromthe same period in the previous year to 29,481. However an increase in the number of residents who moved into
dormitories early in March contributed to a decline in contract fees received. Consequently, sales and operating income
declined by 0.4% and 7.7% year-over-year to ¥19.989 and ¥2.797 billion respectively.
Hotel Business
During the first half of the current fiscal year, four new facilities were opened in the Dormy Inn business including the“Dormy Inn PREMIUM Shibuya Jingumae,” “Natural Hot Spring Kishu no Yu Dormy Inn PREMIUM Wakayama,”“Natural Hot Spring Kirisakura no Yu Dormy Inn Kagoshima,” and “Dormy Inn EXPRESS Matsue.” Furthermore,
overall occupancy rates once again exceeded the previous year’s levels. In addition, Kyoritsu was able to acquire first placeranking in the business hotel category of the JCSI (Japanese Customer Satisfaction Index) in reflection of the continued
favorable reception of its facilities and services by the market.
In the resort hotel operations, a new facility called “Morden no Yu La Vista Appi Kogen” was opened during the term underreview, existing facilities benefitted from favorable demand in the peak summer vacation season, and demand overall
recovered in the aftermath of the depressed levels of the previous term caused by the Great East Japan Earthquake.
Occupancy rates even exceeded the levels seen in the same period two year previous. Consequently, the hotel business’s
sales and operating income rose by 16.4% and 62.2% year-over-year to ¥19.752 and ¥2.065 billion respectively, and thissegment is becoming a solid contributor to Kyoritsu’s overall earnings.
Contracted Services BusinessIn our contracted services business, an increase in orders for construction related services led to an increase in sales.
However an increase in cancelations of large contracts in building rental services contributed to a continuation of the
difficult operating environment. Consequent to these developments, sales rose by 5.9% year-over-year to ¥6.213 billion,
while an operating loss of ¥61 million was incurred (A decline in profits of ¥83 million from the previous first half).
Food Service Business
Stagnant consumption trends and delays in the recovery of growth in the number of restaurants led to difficult operating
conditions in the food service business. Despite these conditions, we were able to grow sales by 14.2% year-over-year to¥2.433 billion, and operating loss improved by ¥16 million from the same period in the previous term to ¥66 million.
Construction Business
Due to a seasonal trend towards a greater amount of development work being realized during the second half of the fiscal
year, the number of construction projects completed and delivered during the first half declined from the same period in theprevious year. Consequently sales fell by 50.9% year-over-year to ¥1.046 billion, and an operating loss of ¥8 million wasincurred (A decline in profit from the previous first half of ¥85 million).
Other Business
Our other business is comprised of the wellness life business (Management of senior citizen housing), the PKP business(Consigned services business, which regional government bodies consign to us and the services are provided to residents byus), single life support business and insurance agency business, comprehensive human resource service business, andfinancing services and administrative outsourcing services. Sales of this business rose by 33.0% year-over-year to ¥2.574
billion, while the operating loss increased by ¥10 million from the previous first half to ¥153 million. We attribute thisoperating loss to anticipatory expenses associated with the expansion of the PKP business.

-2-

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13(2) Qualitative Information about Consolidated Financial Position
At the end of the first half, total consolidated assets declined by ¥6.271 billion from the end of the previous fiscal year to¥119.377 billion. The main factor for this decline was a drop in cash and equivalents. Over the same period, total
liabilities also fell by ¥7.659 billion to ¥86.438 billion, due primarily to declines in prepayments received and long term
debt. Net assets increased by ¥1.387 billion from the end of the previous fiscal year to ¥32.939 billion due mainly to anincrease in retained earnings. Consequently, net asset ratio rose by 2.5% points from the end of the last fiscal year to27.6%.
(Cash Flow Conditions)
At the end of the first half of the current fiscal year, cash and equivalents fell by ¥6.235 billion from the end of the previous
fiscal year to ¥10.149 billion. The increase in net income before tax and declines in inventories were factors behind thedecline in the net outflow of cash in operating activities of ¥772 million from the previous first half to ¥2.719 billion. The
sale of tangible fixed assets was offset by acquisitions of tangible fixed assets, causing the net cash outflow in investing
activities to grow by ¥828 million from the previous first half to ¥984 million. Over the same period, the net cash outflow
in financing activities declined by ¥11.670 billion from the previous first half to ¥2.530 billion due to repayment of long term
debt, which offset increases in short term debt.
(3) Qualitative Information about Consolidated Earnings Estimates
While earnings during the first half of the current fiscal year exceeded estimates by large margins, consideration of
anticipatory investments for refurbishment of hotel facilities needed to maintain continued future growth, potential
increases utility expenses, and variable factors associated with the PKP business caused us to maintain our existing
estimates for consolidated earnings, which were announced at the time of our previous fiscal year’s earnings announcement
on May 15, 2012. In the future, we will announce new earnings estimates should conditions necessitate revisions.
2. Summary Information (Notes)(1) Changes in Important Consolidated Subsidiaries during the term under review
None(2) Implementation of Special Accounting Methods in the Creation of Quarterly Consolidated Financial Statements(Calculation of tax expense)
With regards to taxes, a rational estimate of the effective tax rate has been used to calculate the tax effect accounting fornet income before taxes during the second quarter, and this rate has been applied to net income before taxes.
(3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates
In accordance with the revisions to the tax system, we have implemented revisions in our depreciation methods during thefirst quarter relating to the acquisition of tangible fixed assets by our domestic consolidated subsidiaries after April 1, 2012that are based upon the revisions in the corporate tax system. As a result, operating, ordinary, and pretax incomes
effectively are ¥12 million higher than equivalent figures based on the traditional methods employed until the second quarter.

-3-

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units:FY3/12(March 31, 2012)

Million Yen)

1H FY3/13(September 30, 2012)

AssetsCurrent assets
Cash and equivalents

17,342

11,106

Notes, accounts receivable

3,790

3,979

Real estate for sale

1,746

2,300

Uncompleted construction payment

87

463

5,314

4,948

-46

-40

28,23422,758

Buildings, structures (net)30,42329,573

Land

23,852

23,531Others (net)

9,378

9,403

Total tangible fixed assets

63,65462,508

3,663

3,643

Investment securities

5,687

5,300

Security deposits

9,602

10,170

Deposits

8,484

8,637

Others

6,421

6,471

Doubtful account reserves

-193

-200

30,00130,37897,31996,531OthersDoubtful account reserves
Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets
Investments, other assets

Total investments, other assets
Total fixed assets
Deferred assets
Total assets

-4-

95

87

125,649

119,377

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13(Units: Million Yen)
FY3/12

1H FY3/13(March 31, 2012)(September 30, 2012)

Liabilities
Current liabilities
Notes, accounts payable

3,402

2,755

Short term debt

15,596

17,946

Bond, portion redeemable within 1 year

1,520

1,360

Unpaid corporate taxes

1,600

1,439

Prepayments

10,738

7,580

Bonus reserves

840

623

Director bonus reserves

179

99

Completed construction guarantee reserves

10

10

Others

5,072

4,222

Total current liabilities

38,961

36,036

Bonds

8,225

7,625

Long term debt

40,10036,290Retirement benefit reserves

1,183

1,240

306

307

Others

5,319

4,937

Total fixed liabilities

55,13550,401

94,09786,438

Capital

5,136

5,136

Capital surplus

5,943

5,943

Retained earnings

23,042

24,393Fixed liabilities

Director retirement benefit reserves

Total liabilities
Net assets
Shareholders’ equity

Treasury stock-1,809-1,809Total shareholders’ equity

32,312

33,663

Other marketable security valuation difference

-761

-723

Accumulated other comprehensive income, aggregated

-761

-723

Accumulated other comprehensive income

Total net assets
Total liabilities, net assets-5-

31,551

32,939125,649

119,377

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement
Quarterly Consolidated Income Statement
First Half
(Units: Million Yen)
1H FY3/13(From April 1, 2012
to September 30, 2012)

1H FY3/12(From April 1, 2011
to September 30, 2011)
Net Sales

43,83347,333CGS

34,67037,230Gross income

9,162

10,103

SG&A

5,803

6,450

Operating income

3,359

3,653

Interest income

47

42

Dividend income

20

18Marketable securities sale

363

Deposit redemption income

46

35

Others50

24

Total non-operating income

168

184

Interest payment

747

642

Others215

155

Total non-operating expense

963

798

2,564

3,039

Fixed asset liquidation

124

236

Others－12

Total extraordinary income

124

249

Impairment loss－

87

Disaster related loss

85－

Marketable security valuation loss

251

198

Others26

11

Total extraordinary loss

363

297

Net income before taxes

2,325

2,991

Taxes

1,177

1,372

Net income before adjustment for minority interests in income

1,148

1,619

Non-operating income

Non-operating expense

Ordinary income
Extraordinary income

Extraordinary loss

Minority interests in income
Net income

-6-

0

－

1,148

1,619

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13

Quarterly Consolidated Comprehensive Income Statements
First Half

(Units: Million Yen)
1H FY3/12(From April 1, 2011
to September 30, 2011)
Net income before adjustment for minority interests in income

1H FY3/13(From April 1, 2012
to September 30, 2012)

1,148

1,619

Other marketable securities valuation difference

-42

37

Total other comprehensive income

-42

37

Quarterly comprehensive income

1,106

1,656

(Details)
Quarterly Comprehensive income of parent company
shareholders
Quarterly Comprehensive income of minority shareholdings

1,105

1,656

0

－

Other comprehensive income-7-

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13(3) Quarterly Consolidated Cash Flow Statement(Units: Million Yen)
1H FY3/13(From April 1, 2012
to September 30, 2012)

1H FY3/12(From April 1, 2011
to September 30, 2011)
Cash flow from operating activities
Net income before taxes

2,325

2,991

Depreciation, amortization

1,669

1,462

117

83

Amortization of long term prepayments
Amortization of security deposits

92

100

Change in bonus reserves

-46

-217

Interest, dividends received

-67

-61

Interest paid

747

642

Fixed asset impairment, sale loss

-91

-232

Marketable securities valuation loss

251

198

Change in account receivables

-672

-188

Change in other receivables

529

488

Change in inventories-1,402-938

Change in payables

-852

-915

Change in prepayments received-3,256-3,158Change in unpaid consumption tax

-522

48

Change in deposits received

-625

-700

Change in security deposits received

-93

-362

Change in advanced revenues

-71

-71

Others119

256

Subtotal-1,850

-575

51

40

-748

-643

Interest, dividends received
Interest payment
Corporate, other tax refunds

63

Corporate, other tax payment-951-1,544-3,492-2,719Acquisition of marketable securities

-138

-10

Sale of marketable securities

127

266

Acquisition of tangible fixed assets-2,494-1,432

Sale of tangible fixed assets

2,904

1,219

Acquisition of intangible fixed assets

-71

-60

Loans extended

-111

-132

Cash flow from operating activities
Cash flow from investing activities

Loans recovered

263

150

Deposits, security deposits payments

-497

-909

Return of deposits, security deposits

22

71

Insurance reserve fund establishment

-198

-291

Redemption of insurance policy

45

161

Others

-6

-16

-155

-984

Cash flow from investing activities-8-

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13(Units: Million Yen)
1H FY3/13(From April 1, 2012
to September 30, 2012)

1H FY3/12(From April 1, 2011
to September 30, 2011)
Cash flow from financing activities
Short term debt change
Assumption of new long term debt

1,230
845

3,140
－

Repayment of long term debt

-5,138-4,600

Redemption of bonds-10,820-760

Treasury stock acquisition

-0

-0

-273

-266

Dividend payment to minority shareholders-0－

Others-44-43

Cash flow from financing activities-14,201-2,530Net change in cash and equivalents-17,849-6,235

Cash and equivalents at term start

26,89816,384

Cash and equivalents at term end

9,048

10,149Dividend payment-9-Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13(4) Notes Regarding Going Concern Assumptions
Not applicable(5) Notes Regarding Significant Changes in Shareholders’ Equity
Not applicable(6) Segment Information
ⅠConsolidated Data for First Half of Fiscal Year March 2012 (From April 1, 2011 to September 30, 2011)
1. Reported Segment Sales and Profit, Loss Data
(Units: Million Yen)
Reported Segments
Dormitories

HotelsContracted Food
Construction Sub Total
Services Service

Others(Note) 1

Total

Adjustments(Note) 2

Consolidated(Note) 3

Sales
20,006

16,931

3,640

674

832

42,084

1,748

43,833－

43,833

56

40

2,225

1,456

1,299

5,077

187

5,264

-5,264－

Total

20,062

16,971

5,865

2,130

2,131

47,161

1,935

49,097-5,264

43,833Operating income

3,032

1,273

22

-82

76

4,321

-142

4,178

-819

3,359

External sales
Internal sales andtransfers(Note)

1. Others is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business, which regional government bodies consign to us and theservices are provided to residents by us), single life support services, insurance agency business, comprehensive humanresources, financing services, administrative outsourcing services and other related services..
2. Adjustment for segment profit, loss of ¥819 million includes ¥12 million for inter-segment transaction eliminations, and¥807 million in companywide expenses which cannot be allocated to specific reported segments. Companywide expenses
are primarily those expenses arising from the finance and accounting, and management divisions.
3. Segment profits, losses are derived by adjusting the operating income used in the quarterly consolidated income
statements.

2. Impairment accounting losses and goodwill amortization by reported segments
None- 10 -

Kyoritsu Maintenance Co., Ltd. (9616) 1H FY3/13

ⅡConsolidated Data for First Half Fiscal Year March 2013 (From April 1 to September 30, 2012)
1. Reported Segment Sales and Profit, Loss Data
(Units: Million Yen)
Reported Segments

Others(Note) 1

Total

44,9542,379

47,333－47,333

243

4,480

194

4,674

-4,674

－

2,433

1,046

49,4342,574

52,008-4,67447,333

-66

-8

4,726

-153

4,573

-919

3,653

Contracted Food
Services Service

Dormitories

Hotels19,93019,709

3,760

751

802

58

42

2,452

1,682

Total

19,98919,752

6,213

Operating income

2,797

2,065

-61

Construction Sub Total

Adjustments Consolidated(Note) 2(Note) 3

Sales
External sales

Internal sales andtransfers(Notes) 1. Other is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business, which regional government bodies consign to us and theservices are provided to residents by us), single life support services, insurance agency business, comprehensive humanresources, financing services, administrative outsourcing services and other related services.
2. Adjustment for segment profit, loss of ¥919 million includes ¥15 million for inter-segment transaction eliminations, and¥904 million in companywide expenses which cannot be allocated to specific reported segments. Companywide expenses
are primarily those expenses arising from the finance and accounting, and management divisions.
3. Segment profits, losses are derived by adjusting the operating income used in the quarterly consolidated income
statements.

2. Impairment accounting losses and goodwill amortization by reported segments
Within the food segment, investments made in restaurants that are deemed to be difficult to recover will be reduced tothe asset book value deemed to be recoverable for these restaurants, and the amount of devaluation will be booked as an
impairment loss at the extraordinary level. Furthermore, the amount of impairment loss booked during the first half ofthe term was ¥87 million.

- 11 -