Dormy Inn Kobe Motomachi

Kyoritsu Maintenance Co., Ltd.

Consolidated Financial Results for FY 3/22 Q1

August 2021
1st Section, TSE 9616

Contents

01 Summary of Financial Results for FY 3/22 Q1

P. ２

02 Projected consolidated financial results for FY 3/22

P. 15

1

Financial highlights
 Sales increased and losses narrowed YoY, which wasmore strongly impacted by COVID-19(i) Signs of a recovery in occupancy rates in the Hotels Business,
especially on weekends(ii) In the Dormitory Business, contracts with Japanese students are
increasing as in-person classes resume, although delays ininternational students coming to Japan continue

 Sales begin of new products in response to COVID-19
・ "WORK PLACE DORMY (offices and hotels where you can stay and live)"・ "Shiki Club" Kyoritsu General Corporate Membership Program2

Consolidated business results and main
financial indicators
100 million yen

FY 3/21 FY 3/22 FY 3/22
Q1 ActQ1 Forecast

Q1 Act（4/2020―6/2020）（4/2021―6/2021）（4/2021―6/2021）

Net sales

236

306

296

Gross income-514Operating income

-45

-36

Ordinary income
Net income*¹
EPS (JPY)

YoY
Comparison

Comparison
with
Forecasts

FY 3/22
Forecast（4/2021―3/2022）+60 +25.6%-10 -3.4%

1,745

7

+13

-

-6 -44.7%

272

-40

+4

-

-3

-48

-36

+11

-

34

-64

-27

+36

-

16

-71.8 +92.9

-

41.0

-164.7-40

Capital investment

26

14-11 -45.2%

200

Depreciation expense12

14+1 +14.5%

57

Cash flow*²

-51

-13

+38

73

-

＊1. Temporary closures to stop the spread of COVID-19 losses of 2.8 billion yen in extraordinary losses in the same period of the previous year.
＊2. Cash flow : Net income + depreciation

3

Net sales and operating income broken down
by segment■FY 3/21 Q1
Net
sales

■FY 3/22 Q1（100 million yen）

Hotel total
FY 3/21 Q1
41
FY 3/22 Q1 110

121 120

64
46
29

34

12
Dormitory

Dormy Inn

Resorts

44

31
6

Comprehensive

38

18

13

Foods Service

37

Development

OthersBuilding
Management

OperatingincomeHotel total
FY 3/21 Q1-85.8*
FY 3/22 Q1
-49.0

+0.8
(includes PKP +0.8)

15.7 14.2
1.5

0.5
-27.7
-36.5

Dormitory-49.3*
Dormy Inn

-19.5-21.3-0.3-0.1 -0.3

Comprehensive

Foods Service

0.4

1.1

2.0

-36.5*

Resorts

Development

OthersBuilding
Management* Losses from temporary closure of hotels in the same period last year have been recorded to non-operating
losses and extraordinary losses (1.27 billion yen at Dormy Inn and 1.7 billion yen in the Resorts Business).

4

Dormitory Business: Net sales and Operating
income（100 million yen）

Net sales
Down 40 million yen (-0.4%) YoY

Newly opened:
11facilities 1,168 rooms

Operating income
Down 150 million yen (-9.6%) YoY

Decreased refunds of meal
costs etc.

+1.2

Increased ingredient costs-1.8

Others-0.7

5

Dormitory Business: Trends in initial numberof leased units/occupancy ratio
DomealEmployee dormitory（room）
60,000

96.5

97.0

97.2

97.3

98.3

98.3

Student dormitory

(%）

98.7

97.7

93.7

100

92.1

80
40,000

4,196
7,887

4,372
8,050

4,586
8,682

4,810

5,097

9,387

10,068

5,263

11,312

5,531

5,293

13,266

12,08538,898(-1,191)

38,402( -496)

5,673

5,909

12,405

11,615(-861)(-790)

20,00060

40FY 3/22

YoY

Japanese
student

18,944+590

International
students

1,934

-532

Total

20,878+58(+290)

19,252

20,20020,212

20,534

20,685

20,520*21,29221,002*
20,820*20,878(-472)

(+58)

0

20

0
FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19*International students included above

FY 3/20

FY 3/21FY 3/223,079 (14.5%) 2,466 (11.8%) 1,934 (9.3%)

6

Dormy Inn Business: Net sales and operating
income（100 million yen）

Net sales

Operating income
Up 2.15 billion yen YoY*

Up 3.41 billion yen (+114.1%) YoY
Sales growth due to higher RevPAR:
4,946 yen (up 2,329 yen fromprevious period)

Rent reduction+0.8

Closure in South Korea etc. +1.3
Cost reduction of opening
preparations etc.
Closure in Japan etc.

+2.2
+1.0

-36.5

-49.3** Losses from temporary closure of hotels in the same period lastyear have been recorded to non-operating losses and extraordinary
losses (1.27 billion yen).

7

Dormy Inn Business: Monthly trends in
Occupancy Ratio and Average Daily Rate
FY 3/20:ADR

FY 3/21:ADR

FY 3/22:ADR

FY 3/20:OCC

FY 3/21:OCC

FY 3/22:OCC（Thousand yen）

100%

30

25

80%

85.1%

69.3%

67.3%

84.3%

75.8%
57.3%

60%

66.9%

42.8%

70.5%

20

64.4%

63.1%

15

52.8%

38.9%

35.3%

40%

76.0%

73.4%

10
30.4%

20%

26.9%

5

FY 3/22 Business hotel industry average OCC
Source: Japan Tourism Agency homepage

0%

0
Apr

FY 3/21May

Jun

First state of emergency

Jul

Relaxing requests for
self-restraint

Aug

Sep

Oct

"Go TO Travel campaign"(except TOKYO)

Nov

Dec

"Go To Travel campaign"(add TOKYO)Jan
Go To Travel is
temporarily

Feb

Mar

Second satate of emergency

suspended

Third satate of emergency

FY 3/22
OCC

ADR
（％）

Annualcumulative
total(thousand yen)

Q1

Q2

Q2

Q3

Q4

FY 3/20 (Act)

90.4%

94.2%

93.3%

75.0%

88.1%

FY 3/20 (Act)

11.2

11.3

10.6

9.1

10.6

FY 3/21 (Act)

42.2%

69.8%

80.9%

64.3%

64.8%

FY 3/21 (Act)

6.2

8.0

8.9

7.4

7.9

FY 3/22 (Act)63.8%

FY 3/22 (Act)

7.7

YoY

＋21.6pp

YoY

+1.5

Q3

Annualcumulative
total

Q1

Q4

(Note) The table above shows figures excluding hotels that opened in April 2020 or later (to enable comparison between the three periods under the same conditions)8

Dormy Inn Business: RevPAR by month
FY 3/20:RevPAR（Thousand yen）

FY 3/21:RevPAR

FY 3/22:RevPAR

12

8
8.1
5.2

4.6

7.4

4.9

6.3

5.9

5.3

5.2

4

6.2
4.6

4.1

2.0

3.8

1.6

0
Apr
FY 3/21FY 3/22

May

First state of emergency

Jun

Jul

Relaxing requests for
self-restraint

Aug

Sep

Oct

"Go TO Travel campaign"(except TOKYO)

Nov

Dec

"Go To Travel campaign"(add TOKYO)Jan
Go To Travel is
temporarily

Feb

Mar

Second satate of emergency

suspended

Third satate of emergency
RevPAR(thousand yen)

Q1

Q2

Q3

Annualcumulative
total

Q4

FY 3/20 (Act)

10.1

10.6

9.9

6.8

9.3

FY 3/21 (Act)

2.6

5.6

7.2

4.8

5.1

FY 3/22 (Act)

4.9

YoY

+2.3

(Note) The table above shows figures excluding hotels that opened in April 2020 or later (to enable comparison between the three periods under the same conditions)9Resorts Business: Net sales and operating
income（100 million yen）

Net sales

Operating income
Up 1.52 billion yen YoY*

Up 3.44 billion yen (+286.6%) YoY
Sales growth due to higher RevPAR:
17,490 yen (up 10,326 yen from previous
period)Rent reduction+1.3

Closure etc.

+0.2

-19.5

-36.5** Losses from temporary closure of hotels in the same period lastyear have been recorded to non-operating losses and extraordinary
losses (1.7 billion yen).

10

Resorts Business: Monthly trends in
Occupancy Ratio and Average Daily Rate
FY 3/20:ADR

FY 3/21:ADR

FY 3/22:ADR

FY 3/20:OCC

FY 3/21:OCC

FY 3/22:OCC（Thousand yen）

100%

120

80%

85.7%
76.5%

100

85.7%

78.0%
80

60%
44.6%

60.8%

44.3%

39.8%

40%
22.4%

60
53.4%

51.7%

40

29.9%
20.5%

31.3%

18.8%

20%

20

20.5%
15.0%

Apr
FY 3/21FY 3/22 Resort hotel industry average OCC
Source: Japan Tourism Agency homepage

9.5%

0%

May

Jun

First state of emergency

Jul

Relaxing requests for
self-restraint

Aug

Sep

0
Oct

Nov

Dec

"Go To Travel campaign"(add TOKYO)"Go TO Travel campaign"(except TOKYO)Jan
Go To Travel is
temporarily

Feb

Mar

Second satate of emergency

suspended

Third satate of emergency

FY 3/22
OCC

ADR
（％）

Annualcumulative
total(thousand yen)

Q1

Q2

Q3

Q4

FY 3/20 (Act)

76.4%

82.8%

76.6%

69.4%

76.3%

FY 3/20 (Act)

43.2

45.3

41.7

40.5

42.7

FY 3/21 (Act)

17.2%

68.9%

76.8%

35.0%

52.0%

FY 3/21 (Act)

41.7

46.1

47.5

47.0

46.6

FY 3/22 (Act)42.9%

FY 3/22 (Act)

40.7

YoY

＋25.7pp

YoY

-0.9

Q2

Q3

Q4

Annualcumulative
total

Q1

(Note) The table above shows figures excluding hotels that opened in April 2020 or later (to enable comparison between the three periods under the same conditions)11Resorts Business: RevPAR by month(Thousand yen)

FY 3/20:RevPAR

FY 3/21:RevPAR

FY 3/22:RevPAR

60

50

40

41.7
38.3

38.1
34.0

30

30.4
20

17.9

19.6
14.8

10
5.8
Apr

FY 3/22

14.2

12.4

0

FY 3/21

24.0

22.5

11.1

4.5
May

First state of emergency

Jun

Jul

Relaxing requests for
self-restraint

Aug

Sep

Oct

"Go TO Travel campaign"(except TOKYO)

Nov

Dec

"Go To Travel campaign"(add TOKYO)Jan
Go To Travel is
temporarily

Feb

Mar

Second satate of emergency

suspended

Third satate of emergency
RevPAR(thousand yen)

Q1

Q2

Q3

Q4

Annualcumulative
total

FY 3/20 (Act)

33.0

37.5

31.9

28.1

32.6

FY 3/21 (Act)

7.1

31.7

36.5

16.4

24.2

FY 3/22 (Act)

17.4

YoY

+10.3

(Note) The table above shows figures excluding hotels that opened in April 2020 or later (to enable comparison between the three periods under the same conditions)12

Sales of new products in FY 3/22
■ "WORK PLACE DORMY (offices and hotels where you can stay and live)"•

Dormy Inn (urban workations), Kyoritsu Resorts (workations), Dormy (satellite offices):
proposing three new work styles based on contracts for four consecutive nights through a full year•

These well-received services were in use by approximately 60 companies
in more than 300 rooms as of the end of July 2021.

■ "Shiki Club" Kyoritsu General Corporate Membership Program
・ The "Shiki Club" Kyoritsu General Corporate Membership Program proposes
employee benefit services to corporate clients based on a wide ranging lineupthat includes Kyoritsu Resorts, Dormy Inn, and the food service, dormitory,
and senior life businesses, in locations all across Japan, from urban centers torural sightseeing spots.
・ We also have begun development andsales of regional plans such as the Hokkaido
Shiki Club, which includes 15 hotels in
Hokkaido.

13

ESG initiatives•

Affordable and clean energy
We contribute to realizing a sustainable society by aiming to lessen environmental
impacts and protect the environment in our business activities.
CO2 emissions from the hotel business (left axis)
 Participation in the activities of the town of Nakanojo, Gunma Prefecture

10,000 t

to promote community revitalization through local production and local
consumption of electricity

 Adoption of business cards made from limestone (LIMEX business cards)
 Reducing electricity consumption through means such as conversion
to LED lighting and adoption of energy-saving equipment

142

•

144

145

10

200
150

131
111

100
5

－ Conversion to energy-saving air-conditioning in 660 rooms at five
hotels in FY2020 (Reducing CO2 emissions by 100 tons or more/year)

Kg

CO2 emissions per square meter of total floor area (right axis)

15

7.4

7.6

8.1

8.3

7.8

2016

2017

2018

2019

2020

50

0

0

Human rights and diversity
Recognizing the importance of respect for human rights, we aim to realize workplaces free from discrimination, prohibiting
discrimination by gender, race, nationality, age, religion, etc. and all acts of harassment.

•

The 350 new employees hired in April 2021 included 28 non-Japanese workers (8.0％). Intercultural training is conducted to enablepeople to work with high levels of motivation regardless of racial or cultural differences.



Women made up 244 of the new employees (69.7％), as we maintain working environments in which people can succeed regardlessof gender.

We have set up a help hotline at the head office to prevent and quickly ascertain and resolve human-rights issues, harassment, etc.

Enhancing corporate governance

We have appointed four outside directors who are not members of the audit and supervisory board, who are highly familiar with thefields of health and safety, education, economics, real estate, community development, and tourism.

－We have established a structure under which the above outside directors monitor Company management as independent directors(of whom the Tokyo Stock Exchange has been notified), with the participation of all directors in proactive exchange of constructive
opinions.

14

Projected consolidated business results andmain financial indicators
100 million yen

FY 3/21FY 3/22

Act

Forecast

YoY Comparison（4/2020-3/2021） （4/2021-3/2022）

Net sales

1,212

1,745

+532

+43.9%

Operating income

-90

40

+130

-

Ordinary income

-91

34

+125

-

Net income

-121

16

+137

-

EPS (yen)-311.941.0+353.0-Capital investment

124

200

+75

+60.8%

Depreciation expense

49

57

+7

+15.9%

Dividends per share (yen)

20

20

-

-

Payout ratio

-

48.7%

-

-

Cash flow*

-72

73

+145

-

* Cash flow: Net income + depreciation15

Projected consolidated financial results: quarterly
operating income in main segments
Operating income(100 million yen)

Dormitory
business

Resortsbusinesssales andleaseback ofreal estatebusiness

OthersTotal

Q2

FY 3/22
Forecast

14

FY 3/22Act

14

Comparison with
Forecasts

Dormy Innbusiness

Q1

Q3

Annualcumulative
total

Q4

8

7

20

50

13

12

-2

-

14

6

-6

-5

-

-

20

20

-7

-5

-6

-26

28

21

26

40

-

FY 3/22
Forecast-24

FY 3/22Act-27

Comparison with
Forecasts-3

FY 3/22
Forecast-18

FY 3/22Act-21Comparison with
Forecasts-2

FY 3/22
Forecast-

FY 3/22Act-

Comparison with
Forecasts-

FY 3/22
Forecast-7

FY 3/22Act-5Comparison with
Forecasts+1

FY 3/22
Forecast-36

FY 3/22Act-40

Comparison with
Forecasts-3

16

Projected consolidated financial results: Quarterly trends
in Dormy Inn business and KPIs
OCC・ADR

RevPAR(Thousand yen)
12

RevPAR : FY 3/21 Act

ADR : FY 3/21 Act

ADR : FY 3/22 Forecast

ADR : FY 3/22 Act

RevPAR : FY 3/22 Forecast

OCC : FY 3/21 Act

OCC : FY 3/22 Forecast

OCC : FY 3/22 Act(Thousand yen)

RevPAR : FY 3/22 Act

100%
9.0

87.6%

8.9

30
25

8.0

67.6%

8

20
5.4

4

90.2%

88.7%

50%

63.6%

15

4.9

10
5

0

0%
Q1

Q2

Q3

0

Q4

Q1

Q2

Q3

Q4

OCC

RevPAR(thousand yen)

(%)

Q1

Q2

Q3

Annualcumulative
total

Q4

FY 3/21 (Act)

2.6

5.6

7.2

4.8

5.1

FY3/22 (Forecast)

5.4

9.0

8.9

8.0

7.8

Q1

Q2

Q3

Annualcumulative
total

Q4

FY 3/21 (Act)

42.2%

69.8%

80.9%

64.3%

64.8%

FY3/22 (Forecast)

67.6%

88.7%

90.2%

87.6%

83.6%

FY3/22 (Act)63.6%-4.0ppQ2

Q3

Q4

FY3/22 (Act)

4.9

Comparison with Forecasts

Comparison with Forecasts

-0.5

ADR
(thousand yen)

Q1

Annualcumulative
total

FY 3/21 (Act)

6.2

8.0

8.9

7.4

7.9

FY3/22 (Forecast)

8.0

10.1

9.8

9.1

9.4

FY3/22 (Act)7.7

Comparison with Forecasts-0.3(Note) The table above shows figures excluding hotels that opened in April 2020 or later (to enable comparison between the two periods under the same conditions)17

Projected consolidated financial results: Quarterly trends
in resorts business and KPIs
RevPAR

OCC・ADR
RevPAR : FY 3/21 Act(Thousand yen)

RevPAR : FY 3/22 Forecast

ADR : FY 3/21 Act

ADR : FY 3/22 Forecast

ADR : FY 3/22 Act

OCC : FY 3/21 Act

OCC : FY 3/22 Forecast

OCC : FY 3/22 Act

RevPAR : FY 3/22 Act

38.8

40

(Thousand yen)
100%

37.8

120

36.5

84.2%

81.1%

79.9%

80

19.9

50%

20

46.9%
42.9%

17.4

40

0%

0
Q1

Q2

Q3

0
Q1

Q4

Q2

Q3

Q4

OCC

RevPAR(thousand yen)

(%)

Q1

Q2

Q3

Q4

Annualcumulative
total

FY 3/21 (Act)

7.1

31.7

36.5

16.4

24.2

FY3/22 (Forecast)

19.9

38.8

37.8

36.5

33.2

Q1

Q2

Q3

Q4

Annualcumulative
total

FY 3/21 (Act)

17.2%

68.9%

76.8%

35.0%

52.0%

FY3/22 (Forecast)

46.9%

81.1%

84.2%

79.9%

73.0%

FY3/22 (Act)42.9%-4.0ppQ2

Q3

Q4

FY3/22 (Act)

17.4

Comparison with Forecasts

Comparison with Forecasts

-2.4

ADR
(thousand yen)

Q1

Annualcumulative
total

FY 3/21 (Act)

41.7

46.1

47.5

47.0

46.6

FY3/22 (Forecast)

42.4

47.8

44.9

45.6

45.5

FY3/22 (Act)40.7

Comparison with Forecasts-1.6(Note) The table above shows figures excluding hotels that opened in April 2020 or later (to enable comparison between the two periods under the same conditions)18

Dormitory/hotel development plans and sales andleaseback projects for real-estate
PlannedFY 3/21+15 facilities*

Dormitories,
DomealCompanywide leasing rate

(Note)

FY 3/24

FY 3/25

FY 3/26+1,181 rooms*+12 facilities*+1,204 rooms*+16 facilities*+1,600 rooms*+14 facilities*+1,400 rooms*+14 facilities*+1,400 rooms*+14 facilities*

507 facilities

Ending number offacilities

503 facilities

Ending number offacilities

519 facilities

Ending number offacilities

533 facilities

Ending number offacilities

547 facilities

Ending number offacilities

561 facilities

Ending guest capacity

41,927 rooms

Ending guest capacity

41,753 rooms

Ending guest capacity

43,353 rooms

Ending guest capacity

44,753 rooms

Ending guest capacity

46,153 rooms

Ending guest capacity

47,553 rooms

Leasing rate

87.9%

Leasing rate

87.8%

Leasing rate

88.0%

Leasing rate

88.4%

Leasing rate

88.7%

Leasing rate

89.1%

[L] Hokudai Avenue,[L] Nippori,[L] Sendai Tsutsujigaoka,[L] Nagakute,[L] Hamadayama,[L] Komazawa Park,[L] Esaka Park,[L] Yokohama-Nishi,[L] Hyakumanben Annex,[L] Azabujuban etc.

[L] Sakado Hanamachi,
Niigata Akashidori,[L] Chuo University Nanpei,[L] Iriya,[L] Duo Jiyugaoka,[L] Kameari,[L] Angelique Cour,[L] Tsuruma Park,[L] Osaka Fukushima,[L] Kyoto Kuinabashi,[L] Hirao, etc.

[L] Nishi-Shinjuku,
Teikyo University Hachioji,[L] Nakano Saka-ue,[L] Utsunomiya,[L] Tokaidaigakumae,[L] Tobetsu,[L] Sendai Yamamotocho,[L] Kyoto Fukakusa,[L] Nishinomiya Kitaguchi,[L] Kokura Sakuradori, etc.

[L] Hirosaki,[L] Sendai Teppo-chonishi,[L] Kyoto Fushimi,[L] Kyoto Saiin,[L] Otsuka,[L] Sendai komatsushima,etc.

To be determined+1,400 rooms*

To be determined+1,166 rooms*+5 facilities*+938 rooms*+4 facilities*+658 rooms*+7 facilities*+1,135 rooms*+2 facilities*+351 rooms*+3 facilities*

Ending number offacilities

85 facilities

Ending number offacilities

90 facilities

Ending number offacilities

94 facilities

Ending number offacilities

101 facilities

Ending number offacilities

103 facilities

Ending number offacilities

106 facilities

Ending guest capacity

15,219 rooms

Ending guest capacity

16,157 rooms

Ending guest capacity

16,815 rooms

Ending guest capacity

17,950 rooms

Ending guest capacity

18,301 rooms

Ending guest capacity

18,819 rooms

Leasing rate

99.1%

Leasing rate

99.1%

Leasing rate

99.2%

Leasing rate

98.4%

Leasing rate

98.5%

Leasing rate

98.5%

[L] Premium Nagasaki Ekimae,[L] Nono Kyoto Shichijo,[L] Kobe Motomachi,[L] Ikebukuro.

+3 facilities*

Resorts

FY 3/23

Ending number offacilities+4 facilities*

Dormy Inn

FY 3/22[L] Nono Kanazawa,
Express Toyohashi,
Premium Ginza,[L] Express Fujisan Gotemba,[L] Nono Osaka Yodoyabashi.

Nono Matsue,[L] Nono Matsumoto,[L] Nono Sendai,[L] Hiroshima Annex.

Nono Asakusa Bettei,[L] Okayama,[L] Nono Beppu,[L] Aomori, Rikuzentakata,[L] Nono Ise, etc.

[L] Nono Fukui, etc.

+518 rooms*

Yokkaichi,[L] Nono Kumamoto, etc.

+297 rooms*+2 facilities*+158 rooms*+4 facilities*+938 rooms*+1 facilities*+72 rooms*+1 facilities*+72 rooms*+2 facilities*

Ending number offacilities

36 facilities

Ending number offacilities

38 facilities

Ending number offacilities

42 facilities

Ending number offacilities

43 facilities

Ending number offacilities

44 facilities

Ending number offacilities

46 facilities

Ending guest capacity

3,135 rooms

Ending guest capacity

3,293 rooms

Ending guest capacity

4,231 rooms

Ending guest capacity

4,303 rooms

Ending guest capacity

4,375 rooms

Ending guest capacity

4,712 rooms

Leasing rate

52.0%

Leasing rate

56.5%

Leasing rate

66.1%

Leasing rate

66.7%

Leasing rate

67.2%

Leasing rate

69.6%

Shuzenji Hot Spring Katsuragawa, Nasu Shiobara Rengetsu,
Okuhida Hot Spring Hirayukan,
La Vista Kusatsu Hills.
[L] Wakura Hot Spring Noto Kaishu.

88.9%

89.1%

Jozankei,[L] Hakodate Bay Annex,[L] Kyoto Umekoji,[L] La Vista Tokyo Bay.

89.5%

Kyoto Ninnaji.

89.7%

La Vista Enoshima Terrace,+337 rooms*

Kurokawa Hot Spring.
La Vista Atami Terrace.

90.0%

90.3%

[L] indicates a leased property; red text indicates a property planned for real-estate securitization in the future.

* Indicates numbers of increases in facilities and rooms from development projects (does not indicate numbers of increases from the end of the previous year for facilities
and rooms in operation at the end of the year)

19Important notes
As used in these Notes, "presentation" refers to this Document explained or distributed by Kyoritsu Maintenance Co., Ltd.
("Kyoritsu" hereinafter), as well as oral presentations, questions and answers, and information provided in writing or orally. This
presentation (including related oral explanations and questions and answers) does not constitute, state, or form, under any legal
jurisdiction, a part of any proposal, guidance, or solicitation to purchase, acquire, apply for, exchange, trade, or otherwise
dispose of any securities, or solicitation of any vote or approval.
Companies invested in by Kyoritsu, whether directly or indirectly, are separate companies. The term "Kyoritsu" may be used inthis presentation for convenience' sake to refer to Kyoritsu and its subsidiaries in general. Similarly, the term "the Company"(including "we," "us," and "our") may be used to refer to the subsidiaries in general or to persons working for them. These terms
also may be used in cases in which it would not be useful to specify a specific company.

Forward-looking statements
This presentation and materials distributed in connection with this presentation include forward-looking statements, ideas, orviews regarding the Company's future businesses and future positions and results, including Kyoritsu estimates, projections,
goals, and plans. While forward-looking statements often include terms such as “targets,” “plans,” “believes,” “hopes,”“continues,” “expects,” “aims,” “intends,” “will,” “may,” “should,” “would,” “could,” “anticipates,” “estimates,” “projects,” orsimilar terms, or negative expressions thereof, that is not necessarily always the case. The forward-looking statements in thisdocument are based on current assumptions and ideas in light of the information currently available to the Company. Forwardlooking statements are not guarantees by the Company or its executives of future business results, and they involve risks, both
known and unknown, uncertainties, and other factors. Risks and uncertainties include, but are not limited to, the economic
conditions of the Company’s businesses, including general economic conditions in Japan and around the world, as well as theappearance or development of competing products, decisions by regulators and the timing thereof, and natural disasters. As aresult of such factors, the Company’s actual business performance, results, and financial details may differ substantially from thefuture business performance, results, and financial details described, whether explicitly or implicitly, in forward-looking
statements. The Company and its executives make no guarantee of any kind regarding the ultimate accuracy of projections
indicated in forward-looking statements, and actual business performance or results may differ substantially. Recipients of thispresentation should not depend excessively on forward-looking statements. Kyoritsu is under no obligation to update theforward-looking statements contained in this presentation or presented by the Company through other means. Past performance
is no indicator of future results, and Kyoritsu’s business results as contained in this presentation are neither indicators, forecasts,
projections, nor estimates of its future business results.

20