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

3rd Quarter of Fiscal Year March 2010
Consolidated Earnings Results Update

February 20101

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%
10,000
0

0%
3/99

mn

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09 3/10e

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

mn

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09 3/10e

Consolidated Net Income and YY Change

3,000

70%
60%

2,500

50%
40%

2,000

30%
1,500

20%
10%

1,000

0%
-10%

500

-20%
0
mn

-30%
3/99

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09 3/10e(Units:Million Yen)2

140,000
120,000
100,000
80,00060,00040,00020,000
0
3/ 98

3/ 99

3/ 00

3/ 01

3/ 02

total assets

3/ 03

3/ 04

3/ 05

3/ 06

3/ 07

3/ 08

3/ 09

net assets (shareholders' equity)(Units:Million Yen)

14%
12%
10%
8%
6%
4%
2%
0%
3/ 98

3/ 99

3/ 00

3/ 01

3/ 02
ROE

3/ 03

3/ 04

3/ 05

3/ 06

3/ 07

3/ 08

3/ 09

ROA

3

Construction,
6,157, 9%Other, 3,364,
5%

BusinessSegment Sales
3Q FY3/ 09

Food Service,
3,614, 5%

Dormitories,
28,400, 41%

Contracted
Services,
8,603, 12%

Hotels, 19,381,
28%

Construction,
5,108, 7%

Other, 3,296,
5%

BusinessSegment Sales
QFY3/ 10

Food Service,
3,211, 5%

Dormitories,
28,318, 41%

Contracted
Services,
8,306, 12%

Hotels, 20,651,
30%(Units:Million Yen)

4

Consolidated Income Statement 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10e * 3QFY3/09 3QFY3/10
net sales
32,458 36,788 37,884 50,065 50,109 54,081 58,014 63,085 66,287 75,606 82,303 86,290 * 62,090 62,545
gross income
6,578 7,173 7,834 10,221 10,785 10,541 10,894 11,783 12,242 14,183 15,507 na * 11,781 10,852
operating income
2,465 2,369 2,828 3,908 4,149 4,004 4,407 4,611 3,745 4,492 5,349 4,320 * 4,117 3,335
ordinary income
2,203 2,281 2,643 3,580 3,885 4,060 4,411 4,824 3,787 4,167 4,510 3,300 * 3,510 2,553
net income
850 907 1,147 1,822 2,039 2,138 2,343 2,011 2,413 2,740 2,133 1,680 * 1,513 1,028**
Consolidated Balance Sheetcurrent assets
15,336 19,900 23,793 18,100 22,138 22,122 23,254 23,350 24,901 19,967 21,852 na * 21,320 24,802
fixed assets
25,695 29,867 40,478 47,768 49,497 55,715 62,336 74,681 85,562 95,728 103,891 na * 100,026 107,941
total assets
41,144 49,880 64,327 65,867 71,647 77,865 85,620 98,047 110,507 115,738 125,793 na * 121,399 132,873
current liabilities
20,921 19,731 28,513 27,031 31,610 29,374 31,585 44,039 37,342 44,119 41,615 na * 37,257 48,731
fixed liabilities
10,946 16,977 22,064 23,761 23,146 29,433 33,077 28,316 46,068 44,079 55,266 na * 55,771 54,523
total liabilities
31,866 36,707 50,577 50,792 54,755 58,806 64,663 72,355 83,411 88,199 96,882 na * 93,028 103,255
net assets (shareholders' equity)
9,278 13,169 13,747 15,073 16,824 18,935 20,788 25,512 27,096 27,538 28,911 na * 28,370 29,618**
yy change
net sales
3.6% 13.3% 3.0% 32.2% 0.1% 7.9% 7.3% 8.7% 5.1% 14.1% 8.9% 4.8% *na 0.7%gross income
6.3% 9.0% 9.2% 30.5% 5.5% -2.3% 3.3% 8.2% 3.9% 15.9% 9.3% na *na -7.9%
operating income
25.1% -3.9% 19.4% 38.2% 6.1% -3.5% 10.1% 4.6% -18.8% 19.9% 19.1% -19.2% *na -19.0%
ordinary income
18.2% 3.5% 15.9% 35.4% 8.5% 4.5% 8.6% 9.4% -21.5% 10.0% 8.2% -26.8% *na -27.3%
net income
64.6% 6.7% 26.5% 58.8% 11.9% 4.8% 9.6% -14.2% 20.0% 13.6% -22.2% -21.3% *na -32.0%**
margins
gross margins
20.3% 19.5% 20.7% 20.4% 21.5% 19.5% 18.8% 18.7% 18.5% 18.8% 18.8% na * 20.1% 17.4%
operating margins
7.6% 6.4% 7.5% 7.8% 8.3% 7.4% 7.6% 7.3% 5.6% 5.9% 6.5% 5.0% * 6.6% 5.3%
ordinary margins
6.8% 6.2% 7.0% 7.2% 7.8% 7.5% 7.6% 7.6% 5.7% 5.5% 5.5% 3.8% * 5.1% 4.1%
net margins
2.6% 2.5% 3.0% 3.6% 4.1% 4.0% 4.0% 3.2% 3.6% 3.6% 2.6% 1.9% * 1.8% 1.6%**
other benchmarks
ROE
9.2% 6.9% 8.3% 12.1% 12.1% 11.3% 11.3% 7.9% 8.9% 9.9% 7.4% na *na*ROA
2.1% 1.8% 1.8% 2.8% 2.8% 2.7% 2.7% 2.1% 2.2% 2.4% 1.7% na *na*equity ratio
22.6% 26.4% 21.4% 22.9% 23.5% 24.3% 24.3% 26.0% 24.5% 23.8% 23.0% na * 23.1% 22.1%
Units: mil ion yen
53rd Quarter of Fiscal Year March 2010 Earnings Announcement
February 9, 2010
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 12, 2010
Dividend Payment Date (anticipated):--

Tokyo Stock Exchange(All figures of less than one million yen are rounded down to the nearest digit)rd1. 3 Quarter of Fiscal Year March 2010 Consolidated Earnings (From April 1, 2009 to December 31, 2009)(1) Consolidated Earnings (Aggregated)
Net Sales
3Q-FY3/10
3Q-FY3/09

Ordinary Income

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

62,54562,090

0.7
--

3,335
4,117

-19.0
--

2,553
3,510

-27.3
--

1,028
1,513

-32.0
--

EPS
3Q-FY3/10
3Q-FY3/09

Operating Income

Million yen

Fully Diluted EPS
Yen

Yen

71.59
105.35

58.04
84.08

(2) Consolidated Financial Position
Total Assets

Capital:Net Asset Ratio

Book Value per Share

Million yen％

Yen132,873
125,793

39,61828,91122.1
22.8

2,045.93
1,995.59

3Q-FY3/10
FY3/09


Net Assets

Million yen

29,390 million yen in 3Q-FY3/10, 28,669 million yen in -FY3/09

2. Dividend Conditions
Registry Date

End
1Q
Yen

FY3/09Dividends per Share
End
End
End
3Q
2Q
Year
Yen

Yen

19.00
19.00

FY3/10FY3/10 (Projected)


Revisions to our quarterly dividend projections:

Full
Year

Yen

Yen

19.00

38.00

19.00

38.00

NA

3. Fiscal Year March 2010 Consolidated Earnings Projection (April 1, 2009 to March 31, 2010)
Net Sales
Full Year

Operating Income

Ordinary Income

Million Yen%yy

Million Yen%yy

Million Yen%yy

Million Yen

%yy

Yen

86,290

4.8

4,320

-19.2

3,300

-26.8

1,680

-21.3

116.94

Revisions to our earnings projections during the first quarter:

Net Income

EPS

Yes

6

4. Others(1)

Important changes in our subsidiaries, including changes to the scope of our consolidation: Yes
Added: 0, Removed: 1, MB Mouton Property, Ltd.
(2) Application of simple accounting procedures and other special accounting procedures in the creation of ourquarterly consolidated financial statements:
Yes(3) Changes in the accounting methods, procedures, display methods used in the creation 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-FY3/10, 15,125,582 at
end FY3/09② Treasury stock as of term end: 760,085 at end 3Q-FY3/10, 758,951 at end FY3/09③ Average shares issued during term: 14,365,958 at end 3Q-FY3/10, 14,367,368 at end 3Q-FY3/09

 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 timeof this writing. However our actual results may differ from our projections due to various unforeseen reasons.

7Information Regarding Our Financial Statements
1. Information Regarding Our Consolidated Earnings
During the first three quarters of the current fiscal year, we saw a continuation of uncertainties surrounding thefuture of the Japanese economy due to the trend of weaker consumer prices, high levels of unemployment andother factors.

Against this backdrop, we note a change in the normal cycle of income where our Group has traditionally seenhigh levels of revenues from new tenant contracts for dormitories formed in April as new graduates enter thework force shifted to the end of the fiscal year due to increased requests for tenants to begin residency contracts
in March instead of April. Furthermore in our hotel related business, our Dormy Inn business hotel business
was negatively impacted by the outbreak of influenza and restrained business travel arising from the weakeconomy.

These factors offset our strict efforts to restrain costs and improve profitability, and the popularity in

our resort hotels.

In addition to these factors, the opening of new hotels and dormitories allowed our sales togrow by ¥455 million or 0.7% year-over-year to ¥62,545 million.

However increases in new dormitory andhotel opening costs and temporary declines in occupancy rates caused our operating income to decline by 19.0%
year-over-year to ¥3,335 million during the first three quarters of the current fiscal year.

Increases in interest

rate payments caused our ordinary income to decline by 27.3% year-over-year to ¥2,553 million, and net income
fell by 32.0% year-over-year to ¥1,028 million due to valuation losses on marketable securities during the term
under review.

Our Earnings by Business Segment
Dormitory BusinessIn our dormitory business, our efforts to cultivate relationships with new universities and schools helped tomaintain strong occupancy rates in our student dormitories. However the front loading in March of new tenant
contracts that normally occur in April led to year-over-year declines in both sales and profits.

Furthermore we

expect this trend of shifts in new tenant contracts from April to March to continue in the coming years. We also
note a weakening in demand for corporate dormitories due in part to the weak economy.

Consequently the

number of resident contracts fell by 130 year-over-year to 26, 548 at the end of December, and sales and operating
income declined by 0.3% and 7.8% year-over-year to ¥28,318 and ¥3,951 million respectively.

Hotel BusinessIn our hotel business, we opened six new Dormy Inn business hotels (Takasaki, Hakata Gion, Kooriyama, Otaru,
Tsu, and Mikawa Anjo) and one new resort hotel (Takayama) for a total of seven new facilities in the current term
under review.

Consequently sales grew by 6.6% year-over-year to ¥20,651 million.

But despite our effective

efforts to restrain costs and improve profitability in our resort hotel business, our Dormy Inn business hotels
suffered from reduced business travel because of the outbreak of influenza and the weak corporate travel8environment brought on by the stagnant economy, and higher costs associated with the newly opened hotels.
Consequently our operating income declined by 68.5% year-over-year to ¥108 million.

Contracted Services BusinessDespite our efforts to promote strict cost controls, weak corporate earnings led to client demands to reduce prices
and revise service agreements, which outpaced our ability to reduce costs.

Furthermore we also saw cancellationsof contracts. Consequently we recorded declines in both sales and operating income of 3.5% and 67.8%
year-over-year to ¥8,306 million and ¥126 million respectively.

Food Service Business
The operating environment for our food service business remained severe with intensifying pricing competition
from large restaurant chains and weak personal consumption trends. Against this backdrop we continued ourefforts to control and reduce variable costs, and to restructure our earnings structure. But despite these efforts, we
saw sales decline by 11.2% year-over-year to ¥3,211 million, and recorded an operating loss of ¥15 million.

Construction Business
The operating environment in our construction business remained severe during the term under review and we
maintained our efforts to reduce construction costs and promote condominium sales.

Despite these efforts, oursales and operating income declined by 17.0% and 27.7% year-over-year to ¥5,108 million and ¥139 million
respectively.

We note that the large year-over-year declines are due in part to the sale of a large project salerecorded during the previous term.

Other Business
Our other business is comprised of the wellness life (management of senior citizen housing), life service (catalog
and rental sales, insurance agency business), advertising agency, rental property brokerage and management,
comprehensive human resources, and financing services.

In this business we saw declines in both sales andoperating income of 2.0% and 23.6% year-over-year to ¥3,296 million and ¥105 million respectively.
2. Information Regarding Our Consolidated Financial Position
At the end of the third quarter of the current fiscal year our total consolidated assets rose by ¥7,079 million to¥132,873 million.

The main factor behind this increase was the increase in tangible fixed assets arising fromnewly developed facilities.

Total consolidated liabilities rose by ¥6,373 million at the end of the third quarter from the end of the previous
fiscal year to ¥103,255 million. The main reason for this was an increase in short term debt.

Net assets rose by ¥706 million from the end of the previous fiscal year to ¥29,618 million at the end of the third
quarter due primarily to increases in retained earnings.
9

Consequently our equity ratio declined by 0.7% from the end of the previous fiscal year to 22.1%.

Cash Flow Conditions
At the end of third quarter of current fiscal year our cash and equivalents rose by ¥3,300 million from the end of theprevious fiscal year to ¥14,231 million.

In our operating activities we saw a net outflow of ¥1,844 million, which compares with a net cash inflow seen in
the same period of the previous year of ¥148 million.

We attribute this increase in outflows to the acquisition of

inventories and declines in prepayments in our dormitory business.

In our investing activities we saw net cash outflows of ¥6,606 million, a decline of ¥1,105 million from the net
outflow seen in the same period of the previous term.

The main factor behind this net outflow of cash is theacquisition of tangible fixed assets for both our dormitory and hotel businesses.

In our financing activities we recorded a net cash inflow of ¥11,750 million, an increase of ¥541 million from thesame period in the previous year.

The main reasons behind this net inflow were increases in short term debt andthe issuance of a bond.

3. Information Regarding Our Consolidated Earnings Estimate
Based on the recent trends in our earnings, we have revised our consolidated earnings estimates originally
announced on May 15, 2009 for the fiscal year March 2010.

For details regarding our revisions please refer to theannouncement entitled “Regarding Our Earnings Revision” issued today (February 9, 2010).

4. Others(1) Changes in material subsidiaries during the period (Changes in consolidation scope resulting from changes
in consolidated subsidiaries)
We have removed MB Mouton Property Ltd. from the scope or our consolidation.
(2) Application of simplified accounting methodologies and or quarterly financial reporting standards in the
preparation of quarterly financial statements:(1) Simplified accounting methodologies
1) Inventories valuation methodology
A partial physical inventory, comprised of material items and sampling, was utilized for the valuation of
inventories at the current quarter end. We have reduced the valuations for inventories where we haveclear 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’s
10

business 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.
(2) 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 classification in the preparation of quarterly
consolidated financial statements
Change in accounting principle for construction projects-in-progress and cost of construction
We previously utilized the percentage of completion method for long-term large construction projects, withan estimated construction period of more than two years and contracted amounts greater than two billion
yen, and the completed contract method for all others.

For construction contracts entered into from thefirst quarter of the current fiscal year, we have commenced application of Accounting Standards Board ofJapan’s Statement No. 15, “Accounting Standard for Construction Contracts” and Guidance No. 18,“Guidance on Accounting Standard for Construction Contracts” issued on December 27, 2007.

Statement

No. 15 and Guidance No. 18 requires us to utilize the percentage-of-completion method if the total contract
revenue, total contract costs, and percentage of completion, at the end of the reporting period, can bereliably estimated, and the completed-contract method for all others.
These changes led to increases of ¥440 million in consolidated sales and ¥4 million yen in operating,ordinary and pretax incomes respectively during the third quarter.

Furthermore we explain the impact ofthese changes to our various business segments in the related portions of this document.
(4) Going Concern Assumption Notice
Not applicable.

11(5) Business Segment Information(Information for Our Various Business Segments)
Aggregated Figures for the First Three Quarters of FY March 2009 (From April 1, 2008 to December 31, 2008)
Contracted
Dormitories

Food

HotelsCompany
Construction

Services

Service

Other

Total

Consolidated
Wide

Sales
(1) Externalsales

28,32019,250

6,114

1,780

4,343

2,281

62,090－62,090

80

131

2,489

1,834

1,814

1,083

7,432

(7,432)－

28,40019,381

8,603

3,614

6,157

3,364

69,522(7,432)62,090

4,284

345

391

-46

192

138

5,306

(1,188)4,117(2) Internal
sales
Total
OperatingincomeAggregated Figures for the First Three Quarters of FY March 2010 (From April 1, 2009 to December 31, 2009)
Contracted
Dormitories

Company

Food

HotelsConstruction
Services

Service

Other

Total

Consolidated
Wide

Sales
(1)External
sales(2)Internal sales
Total

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)－28,31820,651

8,306

3,211

5,108

3,296

68,891(6,346)62,545

3,951

108

126

-15

139

105

4,416

(1,080)3,335Operatingincome(Reference) Changes in accounting principles
Changes in Third Quarter of the Previous Fiscal Year
None applicable
Changes in Third Quarter of the Current Fiscal Year
(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
application of Accounting Standards Board of Japan’s Statement No. 15, “Accounting Standard for Construction
Contracts” and Guidance No. 18, “Guidance on Accounting Standard for Construction Contracts” issued on
December 27, 2007. These changes during led to increases of ¥440 million and ¥4 million in consolidated sales
and operating income respectively during the third quarter.
12

(Regional Sales Information)
During the aggregated first three quarters of the previous fiscal year (From April 1, 2008 to December 31, 2008)
and the aggregated first three quarters of the current 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 aggregated first three quarters of the previous fiscal year (From April 1, 2008 to December 31, 2008)
and the aggregated first three quarters of the current fiscal year (From April 1, 2009 to December 31, 2009)
We did not have any overseas sales.

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

13