Kyoritsu Maintenance Co., Ltd.

(Securities Code: 9616)

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal YearEnding March 31, 2023
［JGAAP］
Aug 20221

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending
March 31, 2023 [based on Japanese GAAP]
Aug 9, 2022
Listed exchange: Tokyo

Name of listed company
Kyoritsu Maintenance Co., Ltd.
Code
9616
URL https://www.kyoritsugroup.co.jp/
Representative(Title)President(Name) Koji Nakamura
Contact(Title)Managing Director(Name) Manabu Takaku
Scheduled filing date of Quarterly Report:
Aug 10, 2022
Scheduled date of start of dividend payment:
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: None

Tel +81-3-5295-7778(Rounded down to the nearest million yen)

1.
Consolidated financial results for the first three months of the fiscal year ending March 31, 2023 (April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results(Percentage figures represent year-over-year changes)

Net sales

Operating profit

Profit (loss)
attributable to ownersof parent

Ordinary profit

Millionyen%

Million yen%

Millionyen%

Millionyen%

The three months ended June 30, 2022

39,252

32.4

1,076

－

1,075

－

691

－

The three months ended June 30, 2021

29,64325.6-4,054－-3,636－-2,799－(Note) Comprehensive income:The three months ended June 30, 2022: 915 million yen (–%)
The three months ended June 30, 2021: -2,813 million yen (–%)

Profit (loss)
per share

Diluted net income
per share
Yen

Yen

The three months ended June 30, 2022

17.74

15.13

The three months ended June 30, 2021

-71.80–(Note) Diluted net income per share is omitted since the Company recorded net loss per share for the last fiscal year and there were no
potentially dilutive shares.

(2) Consolidated financial position
Total assets

Total net assets

Million yen

Equity ratio

Net assets per share

Million yen%

Yen

As of June 30, 2022

235,814

71,11030.2

1,823.85

As of March 31, 2022

241,723

70,58629.2

1,810.40(Reference) Shareholders’ Equity:2.

As of June 30, 2022: 71,110 million yen As of March 31, 2022: 70,586 million yen

Dividends
Annual dividends
Q2 endQ3 endQ1 endYear ended March 31,
2022
Year ending March
31, 2023
Year ending March
31, 2023 (Forecast)Year end

Total

Yen

Yen

Yen

Yen

Yen

－

10.00

－

10.00

20.00

10.00

－

10.00

20.00

－
－

(Note) Revision from most recently announced dividends forecasts: None3.

Forecasted consolidated results for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)(Percentage figures represent year-over-year changes)

Net sales
MillionOperating profit%

yen

Full Year

174,000

MillionMillion

%

yen

0.2

3,000

Net income
attributable toownersof the parent

Ordinary profit
%

yen

109.6

2,200

(Note) Revision from most recently announced earnings forecasts: None

2Million

Net income per
share
%

Yen

85.5

25.65

yen

21.3

1,000

*Notes(1) Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in thescope of consolidation): None
(2) Application of special accounting treatment in the preparation of the quarterly consolidated financial statements: Yes(Note) For details, please see "(3) Notes on Quarterly Consolidated Financial Statements (Application of special accounting
procedures in the preparation of quarterly consolidated financial statements)" under "2. Quarterly Financial Statements andMajor Notes" on page 11.
(3) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards, etc.:

Yes(ii) Changes in accounting policies other than those under (i) above:(iii) Changes in accounting estimates:

None
None

(iv) Retrospective restatements:

None(4) Number of issued shares (common stock)(i) Number of issued shares at the end of
the period (including treasury shares)(ii) Number of treasury shares at the endof the period(iii) Average number of shares
during the period

As of June 30,
2022

39,219,818 Year ended
shares March 31, 2022

39,219,818
shares

As of June 30,
2022

230,707 Year ended
Shares March 31, 2022

230,499
shares

As of June 30,
2022

38,989,215
As of June 30, 2021
shares38,990,194
shares*Summaries of financial results are not subject to auditing by a certified public accountant or auditing firm.
*Explanation of the appropriate use of earnings forecasts and other special notes(Note concerning forward-looking statements)
The forward-looking statements, including earnings forecasts and other future projections contained in this document are basedon information available to the Company at the time of preparation and on certain assumptions deemed reasonable by theCompany. As such, they do not constitute an assurance that the Company promises to achieve these projected results. Actual
business results may differ materially from the forecasts due to various factors.
Please see "(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information" under"1.Qualitative Information on Quarterly Results" on page 6 for the assumptions used for the forecast of financial results andnotes concerning the use of the forecast of financial results.
(How to obtain supplementary materials of financial results)
Supplementary materials of quarterly financial results are posted on the Company website.

3

Table of contents for attatched materials
1.Qualitative Information on Quarterly Results......................................................................................................................................... 5(1) Explanation of Operating Results .................................................................................................................................................... 5(2) Explanation of Financial Position .................................................................................................................................................... 6(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information ......................................................... 6
2. Quarterly Financial Statements and Major Notes .................................................................................................................................. 7(1) Quarterly Consolidated Balance Sheet............................................................................................................................................. 7(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income .............................. 9(Quarterly Consolidated Income Statement) ..................................................................................................................................... 9(Three Months Ended June 30, 2022) ................................................................................................................................................ 9(Quarterly consolidated statement of comprehensive income) ........................................................................................................ 10(Three Months Ended June 30, 2022) .............................................................................................................................................. 10(3) Notes on Quarterly Consolidated Financial Statements ................................................................................................................ 11(Notes on the going concern assumption)........................................................................................................................................ 11(Notes concerning any notable changes in shareholders' equity) ................................................................................................ - 11 (Application of special accounting procedures in the preparation of quarterly consolidated financial statements) .................... - 11 (Changes in accounting policies) ................................................................................................................................................ - 11 (Additional information) ............................................................................................................................................................ - 11 (Segment Information) .................................................................................................................................................................... 124

1.Qualitative Information on Quarterly Results(1) Explanation of Operating Results
During the first three months of the current fiscal year, the Japanese economy saw a gradual normalization of economic
activities thanks to penetration of preventive measures and increased vaccination rate concerning COVID-19. However, thefuture outlook remains uncertain due to the resurgence of COVID-19 since late June, in addition to energy price hikes causedby the Ukraine crisis.
The Group was able to start this fiscal year without any behavioral restrictions for the first time in three years. Especially in the
Hotel Business segment, occupancy rate and room rates recovered nearly to the levels of the first quarter of the fiscal year
ended March 31, 2020, which is before the COVID-19 pandemic, mainly thanks in part to the large number of guests whostayed during Golden Week. The Group has continued to thoroughly implement COVID-19 preventive measures (such astemperature checks, disinfection, photocatalysis, and non-contact measures) and also actively addressed the SDGs (reducing
excessive consumption, waste reduction, etc.).
As a result, for the first three months of the current fiscal year show net sales of 39,252 million yen (up 32.4% YoY); operating
profit was 1,076 million yen (vs. operating loss of 4,054 million yen in the same period of the previous year); ordinary profit
was 1,075 million yen (vs. ordinary loss of 3,636 million yen); and profit attributable to owners of parent was 691 million yen(vs. loss of 2,799 million yen), marking the first time in three fiscal years that the Company has returned to profitability in thefirst three months of a consolidated fiscal year.

Segment business performance is reviewed below.
(i) Dormitory BusinessIn the Dormitory Business segment, the Group newly opened a total of nineteen business offices and 1,921 rooms nationwide
in April 2022. The initial occupancy rate started the period at 93.5% (up 1.4 point YoY) due to a significant increase in thenumber of Japanese students, partly due to the renewed appreciation of the safety and security of our dormitory establishment
in the COVID-19 pandemic, and partly due to our focus on capturing domestic demand. Also, the number of foreign students
has increase YoY, and has been on the rise since July due to the easing of immigration restrictions.
As a result, net sales amounted to 12,832 million yen (up 6.4% YoY) while operating profit remained at 1,270 million yen(down 11.0% YoY), due to costs of opening new offices and rooms, and higher energy prices.
(ii) Hotel BusinessIn the Hotel Business segment, the Group newly opened three business facilities in the Dormy Inn Business; "Natural Hot
Springs Hana-Nami-No-Yu, ONYADO NONO Yodoyabashi", "Natural Hot Springs Fuji-Zakura-No-Yu, Dormy Inn
EXPRESS Fujisan Gotemba" and "Natural Hot Springs Morito-no-Yu, ONYADO NONO Sendai", and "Kyoto Umekoji
Kadensho" in the Resorts Business. In the current fiscal year, the Group welcomed the Golden Week holidays in May
without any restrictions on activities for the first time since 2019, and many guests enjoyed our highly acclaimed services,
including the hot spring baths and authentic saunas, which are the features of our hotels, as well as our special meals andYonaki noodle. In addition, the favorable effects of measures to stimulate tourism demand, such as the prefectural andregional residents' discounts, resulted in significant increases in net sales and operating profit in the Dormy Inn Business aswell as the Resorts Business.
As a result, net sales amounted to 20,599 million yen (up 86.4% YoY) and operating profit turned positive amounting to 192
million yen (vs. operating loss of 4,908 million yen in the same period of the previous fiscal year).
(iii) Comprehensive Building Management BusinessIn the Comprehensive Building Management Business, net sales were 4,023 million yen (up 28.3% YoY) and operating profit
was 117 million yen (vs. operating loss of 31 million yen in the same period of the previous fiscal year), mainly due to anincrease in hotel cleaning services and construction projects.
(iv) Food Service BusinessIn the Food Service Business, net sales were 2,022 million yen (up 51.2% YoY) and operating profit was 111 million yen (vs.
operating loss of 39 million yen in the same period of the previous fiscal year) due to an increase in hotel restaurant contracts
and the easing of restrictions on restrictions for restaurants.
(v) Development Business
The Development Business reported net sales of 274 million yen (down 85.5% YoY) and operating profit of 16 million yen

5(down 60.4% YoY) mainly due to a decrease in construction projects.
(vi) Other Businesses
The Company's other business segment consist of the Senior Life Business (management and operation of seniorresidences), the Public Kyoritsu Partnership (PKP) Business (services provided under contract to local governments),
support business for people who live alone, the insurance agency business, comprehensive human-resource service business,
the financial business and the administrative outsourcing business. The total of these businesses resulted in net sales of 3,904
million yen (up 0.4% YoY) and operating profit of 75 million yen (down 63.5% YoY).

(2) Explanation of Financial Position(Assets)
Total assets at the end of the first quarter of this consolidated fiscal year stood at 235,814 million yen, down by 5,908
million yen from the end of the previous consolidated fiscal year. The main cause of this decrease included declines in cash
and deposits.
(Liabilities)
Liabilities at the end of the first quarter of this consolidated fiscal year stood at 164,704 million yen, down by 6,432 million
yen from the end of the previous consolidated fiscal year. This was mainly due to decreases in income taxes payable andlong-term borrowings.
(Net Assets)
Net assets at the end of the first quarter of this consolidated fiscal year stood at 71,110 million yen, an increase of 524
million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in retained earnings.
As a result, the equity ratio became 30.2%, an increase of 1.0 points from the end of the previous consolidated fiscal year.

(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information
Despite the high performance in the first three months of the current fiscal year, the Company has decided to leave theconsolidated financial forecasts for the fiscal year ending March 31, 2023 unchanged from that announced on May 13, 2022,
due to uncertain outlook for the future, including the resurgence of COVID-19. The Company will promptly disclose any
revision to its earnings forecast if such a revision becomes necessary.

62. Quarterly Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract
assetsReal estate for sale
Real estate for sale in process
Costs on uncompleted construction contracts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Guarantee deposits
Leasehold deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

7

As of June 30, 2022

37,94230,171

11,856

12,733

7,681
7,719
61
7,769
-76
72,953

7,727
8,217
17
8,001
-92
66,77647,03739,35913,173
3,648
103,218
3,384

47,16639,787
11,1494,177
102,280
4,168

3,151
18,826
19,033
20,771-122
61,660168,264505
241,723

3,148
18,80919,22821,051-125
62,111
168,560
477
235,814

(Unit: million yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for warranties for completed construction
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bonds with share acquisition rights
Long-term loan payable
Retirement Benefit Liabilities
Provision for directors' retirement benefits
Other
Total non-current liabilities
Total liabilities
Net Assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

8

As of June 30, 2022

6,20214,820
5,080
1,035
979
76
5
21,23449,433

5,923
15,243
5,080
27
304
30
2
18,11344,72523,46030,112
61,961
1,013
254
4,902
121,703
171,137

23,06030,10560,807
1,070
254
4,681
119,978
164,704

7,964
12,821
50,383-361
70,807

7,964
12,821
50,685-362
71,108

82
225
-583
53
-221
70,586
241,723

74
471
-594
51
1
71,110235,814(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Income Statement)(Three Months Ended June 30, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Expenses for measures for COVID-19
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on store closures
Loss on disaster
Other
Total extraordinary loss
Net income (loss) before taxes
Income taxes
Net income (loss)
Net income (loss) attributable to owners of parent

Three Months Ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)
29,64328,850793
4,847-4,054(Unit: million yen)Three Months Ended
June 30, 2022
(From April 1, 2022
to June 30, 2022)
39,25232,430
6,822
5,745
1,076

25
21
187
502
736

26
43
83
110
263

142
44
131
318
-3,636

145
31
88
265
1,075

-

18
18

55
13
69
-3,705-906-2,799-2,799

30
15
46
1,046
355
691
691

9

(Quarterly consolidated statement of comprehensive income)(Three Months Ended June 30, 2022)

Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains on hedges
Foreign currency translation adjustment
Adjustment for retirement benefits
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentThree Months
Ended June 30, 2021
(From April 1, 2021
to June 30, 2021)-2,799(Unit: million yen)Three Months Ended
June 30, 2022
(From April 1, 2022
to June 30, 2022)
691

1
-14
-1
-14
-2,813

-8
245
-11
-2
223
915

-2,813

915

10

(3)
Notes on Quarterly Consolidated Financial Statements(Notes on the going concern assumption)
Not applicable(Notes concerning any notable changes in shareholders' equity)
Not applicable(Application of special accounting procedures in the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
The Company calculates tax expenses by rationally assuming an effective tax rate after applying tax effect accounting to profit(loss) before income taxes for the consolidated fiscal year, including the first quarter, and multiplying profit (loss) before
income taxes for the first quarter by the estimated effective tax rate. However, if the result of calculation of tax expenses using
the estimated effective tax rate is significantly unreasonable, the statutory effective tax rate is used.

(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ
Guidance No. 31, June 17, 2021; hereinafter "Guidance on Accounting Standard for Fair Value Measurement") from the
beginning of the first quarter of this consolidated fiscal year. Pursuant to the transitional treatment stipulated in Paragraph 27-2of the Guidance on Accounting Standard for Fair Value Measurement, the Company has decided to apply prospectively the
new accounting policy stipulated by the Guidance on Accounting Standard for Fair Value Measurement. There is no impact on
the quarterly consolidated financial statements.

(Additional information)(Application of Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System)
The Company and some of its domestic consolidated subsidiaries have shifted from the Consolidated Taxation System to theGroup Tax Sharing System effective from the first quarter of the current fiscal year. Consequently, for accounting treatment
and disclosure of corporate and corporate local income taxes and tax effect accounting, the Company has applied Practical
Solution on the Accounting and Disclosure Under the Group Tax Sharing System (ASBJ PITF No. 42, August 12, 2021,
hereinafter "PITF No.42"). In accordance with Paragraph 32 (1) of the PITF No. 42, the Company has assumed that changes inaccounting policies resulting from the application of PITF No. 42 have no impact on the Company's financial statements.

11

(Segment Information)
I For the three months ended June 30, 2021 (April 1, 2021 – June 30, 2021)
1. Information on net sales, income or loss by each reporting segment(Unit: million yen)
Reporting segment
Dormitory

Hotel

Comprehensive
Building
Management

FoodService

OthersDevelopme
nt

Total

Note 1

Total

Adjustment
amountNote 2

Amountrecorded on
consolidated
quarterlystatement ofincomeNote 3

Net sales
Net sales to externalcustomers

11,974

11,028

1,632

179

1,067

25,882

3,761

29,643-29,643

Inter-segmental sales
or transfers

81

23

1,501

1,158

817

3,583

128

3,711

-3,711-

Total

12,056

11,052

3,134

1,337

1,884

29,4653,890

33,355-3,71129,643

Segment profit(loss)

1,426-4,908

-31

-39

40

-3,510206-3,303-750-4,054Note 1: The Other Business segment consists of the following businesses not included in the reporting segments: the Senior Life
Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business (services
provided under contract to local governments), support business for people who live alone, the insurance agency
business, comprehensive human-resource services, the financial business, the administrative outsourcing business, andother incidental businesses.
2. Adjustment of segment income (loss) of -750 million yen includes the amount of elimination of inter-segment
transactions of 19 million yen and corporate expenses of -770 million yen that are not allocated to each reportablesegment. Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative
departments of the head office.
3. Segment profit or loss is adjusted with operating loss on the quarterly consolidated income statements.
2. Information on impairment loss on non-current assets or goodwill, etc. by reporting segment
Not applicable

II For the three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)
1. Information on net sales, income or loss by each reporting segment(Unit: million yen)
Reporting segment
Dormitory

Hotel

Comprehensive
Building
Management

FoodService

OthersDevelopme
nt

Total

Note 1

Total

Adjustment
amountNote 2

Amountrecorded on
consolidated
quarterlystatement ofincomeNote 3

Net sales
Net sales to externalcustomers

12,744

20,569

1,787

343

83

35,527

3,725

39,252-

39,252

Inter-segmental sales
or transfers

88

30

2,235

1,679

190

4,224

179

4,404

-4,404-

Total

12,832

20,599

4,023

2,022

274

39,752

3,904

43,656-4,404

39,252

Segment profit(loss)

1,270

192

117

111

16

1,707

75

1,783

-706

1,076

Note 1: The Other Business segment consists of the following businesses not included in the reporting segments: the Senior Life
Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business (services
provided under contract to local governments), support business for people who live alone, the insurance agency
business, comprehensive human-resource services, the financial business, the administrative outsourcing business, and12other incidental businesses.
2. Adjustment of segment income (loss) of -706 million yen includes the amount of elimination of inter-segment
transactions of 121 million yen and corporate expenses of -828 million yen that are not allocated to each reportablesegment. Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative
departments of the head office.
3. Segment profit or loss is adjusted with operating profit on the quarterly consolidated income statements.
2. Information on impairment loss on non-current assets or goodwill, etc. by reporting segment
Not applicable13