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

Summary of Consolidated Financial Results for the
Fiscal Year Ended March 31, 2020
［JGAAP］
May 2020－

1－

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020[based on Japanese GAAP]May 15, 2020
Name of listed company
Kyoritsu Maintenance Co., Ltd.
Listed exchange: Tokyo
ＵＲＬ https://www.kyoritsugroup.co.jp/
Code
9616
Representative(Title)President(Name) Takumi Ueda
Contact(Title)Managing Director(Name) Koji Nakamura
Tel 03-5295-7778
Scheduled date of Regular General Meeting of
Scheduled date of commencement
June 26, 2020
June 29, 2020
Shareholdersof payment of dividends
Scheduled date of submittal of Securities
June 26, 2020
ReportSupplementary materials prepared for financial results: Yes
Briefing held on financial results: No(rounded down to the nearest million yen)
Consolidated financial results for the fiscal year ended March 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results(Percentages represent rates of change from the previous year)
Net income attributable toSales
Operating income
Ordinary income
owners of the parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
169,770
4.3
11,205-23.1
12,499
-12.7
6,927
-27.6
March 2020
Fiscal year ended
162,811
7.1
14,56711.3
14,321
10.8
9,567
9.0
March 2019
Fiscal year
Fiscal year
(Note) Comprehensive
MillionMillion（11.1％）
ended
6,219(-33.7%)
ended
9,374
incomeyen
yenMarch 2020
March 20191.

Net income per share

Diluted net income per
share
Yen

Return on equity

Ordinary income Operating income
to total assets
to net sales
%
%

Yen
%
Fiscal year ended－
177.688.5
6.0
6.6
March 2020
Fiscal year ended
245.41245.3712.6
7.3
8.9
March 2019
(Reference) Gain/loss on equity-method
Fiscal year ended
Fiscal year ended－ Million yen－ Million yen
investments
March 2020
March 2019
Note: Diluted net income per share for this fiscal year is not shown due to the absence of shares with dilutive effects.
(2) Consolidated financial position
Total assets
Million yen
Fiscal year ended
217,086
March 2020
Fiscal year ended
202,531
March 2019
(Reference) Shareholders’Fiscal year ended
equityMarch 2020

Net assets
Million yen

83,954%

Net assets per share
Yen

83,95438.7

2,153.24

79,57039.3

2,040.75

Million yen

Equity ratio

Fiscal year ended
March 201979,570Million yen(3) Consolidated cash flow position
Net cash provided by (used Net cash provided by (used Net cash provided by (used Balance of cash and cashin) operating activities
in) investing activitiesin) financing activities equivalents at end of period
Million yen
Million yen
Million yen
Million yen
Fiscal year ended
16,460-22,904
8,208
17,792
March 2020
Fiscal year ended
17,963-21,474
2,606
16,070March 2019

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2

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2.

Dividends
Annual dividends
Q1 endFiscal year ended March2019
Fiscal year ended March
2020
FY ending March 2021
(projected)

Q2 endQ3 endYear end

Total

Total amount
Dividend
Dividends toof dividends
payout ratio net assets(Total)(Consolidated) (Consolidated)
Million yen
%
%

Yen

Yen

Yen

Yen

Yen

－

20.00

－

25.00

45.00

1,754

18.3

2.3

－

22.00

－

23.00

45.00

1,754

25.3

2.1

－

－

－

－

－

－

Note: Projections of dividends for the fiscal year ending March 2021 are yet to be determined at this time.
3. Projected consolidated financial results for the fiscal year ending March 2021 (April 1, 2020 to March 31, 2021)
Projected consolidated financial results for the fiscal year ending March 2021 are yet to be determined, due to the difficulty ofmaking reliable estimates at the present time of the impact of the novel coronavirus pandemic. Projected financial results will beannounced promptly as soon as it has become feasible to release them.

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3

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*Notes(1) Changes in significant subsidiaries during period under review (changes in specific subsidiaries accompanied by changes
in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatements①
Changes in accounting policies due to revision of accounting standards, etc.: None②
Changes in accounting policies other than those under (i) above: None③
Changes in accounting estimates: None④
Retrospective restatements: None
(3) Number of shares of stock issued and outstanding (common stock)①
Number of shares issued andFiscal year ended
outstanding at the end of the39,218,826
March 2020
period (including shares oftreasury stock)②
Number of shares of
Fiscal year ended
228,844
treasury stock at the end of the
March 2020
periodFiscal year ended③
Average number of shares
38,990,276
March 2020
during period

sharesFiscal year ended
March 201939,218,330 sharessharesFiscal year ended
March 2019

227,634

sharesFiscal year ended
March 2019

38,986,480 sharesshares(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Non-consolidated operating results(Percentages represent rates of change from the previous year)
Sales
Operating income
Ordinary income
Current net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
145,469
2.8
9,983
-26.4
11,731
-15.0
7,127
-24.9
March 2020
Fiscal year ended
141,500
13.6
13,561
12.3
13,795
11.6
9,490
67.4
March 2019
Net income per share

Diluted net income per
share
Yen

Yen
Fiscal year ended
182.81－March 2020
Fiscal year ended
243.44243.41March 2019
Note: Diluted net income per share for this fiscal year is not shown due to the absence of shares with dilutive effects.
(2) Non-consolidated financial position
Total assets
Million yen
Fiscal year ended
196,946
March 2020
Fiscal year ended
185,726
March 2019
(Reference) Shareholders’Fiscal year ended
equityMarch 2020

Net assets
Million yen

80,783%

Net assets per share
Yen

80,78341.0

2,071.91

75,97640.9

1,948.58

Million yen

Equity ratio

Fiscal year ended
March 201975,976

Million yen*Summary financial statements are not subject to auditing by a certified public accountant or auditing firm.
*Description concerning appropriate use of projections of business results and other notes(Note concerning forward-looking statements)
Projections of business results and other forward-looking statements contained in this document are based on information
available to the Company at the time of preparation and certain assumptions judged to be reasonable. They do not represent
commitments that such results will be achieved. Actual business results may differ widely due to various factors.
See p. 5, "1. Overview of Operating Results etc.: (4) Future Outlook," attached, concerning the assumptions on which
projections of business results are based and the notes on use of such projections.
(How to obtain supplementary materials on financial results and content of briefings on financial results)
Supplementary materials on financial results and video recordings of briefings on financial results are posted to the Company
website.

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¡Table of contents for attached materials
Overview of operating results, etc. …………………………………………………………………………………...

6(1) Overview of this year’s operating results …………………………………………………………………………….

6(2) Overview of financial position during the period under review ……………………………………………………...

8(3) Cash-flow position during the period under review ………………………………………………………………….

9(4) Future outlook ………………………………………………………………………………………………………...

9

2.

Basic thinking on selection of accounting standards …………………………………………………………………

10

3.

Consolidated financial statements and major notes …………………………………………………………………..

11

1.

(1) Consolidated Balance Sheet …………………………………………………………………………………………..

11(2) Consolidated Income Statement and Consolidated Statement of Comprehensive Income …………………………..

13

Consolidated Income Statement ……………………………………………………………………………………...

13

Consolidated Statement of Comprehensive Income ………………………………………………………………….

15(3) Consolidated Statement of Changes to Shareholders’ Equity ………………………………………………………...

16(4) Consolidated Statement of Cash Flows ………………………………………………………………………………

18(5) Notes on the consolidated financial statements ………………………………………………………………………

20(Notes on the going concern assumption) ……………………………………………………………………………….

20(Segment information) …………………………………………………………………………………………………..

20(Per-share information) ………………………………………………………………………………………………….

23(Important developments arising after the end of the fiscal year) ………………………………………………………

23

Other ………………………………………………………………………………………………………………….

24

4.

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5

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1． Overview of operating results, etc.
Overview of this year’s operating results
1． Overview of this year’s general financial position(1)(Consolidated results)(Unit: millions yen)Previous year

This year

Rate of change

Fiscal year ended March 2019

Fiscal year ended March 2020

(%)

Sales

162,811

169,770

4.3

Operating income

14,567

11,205-23.1

Ordinary income

14,321

12,499-12.7

Attributable to owners of the parent
Current net income

9,567

6,927

-27.6

During the consolidated fiscal year under review, although Japan's economy showed a gently recovering trend backed by
improving employment and income conditions, the spread of the novel coronavirus in the fourth quarter had a major impact not
only on Japan but worldwide.
The environment in which the Group operates saw an increase in international students from abroad attending universities andcolleges in Japan, a rise in the percentage of students advancing to college after high school, growth in the number of companies
providing dormitories for employees, and continued growth in the number of inbound tourists visiting Japan from overseas, as well
as stronger demand for domestic travel, particularly during the Golden Week holidays in May. Under such conditions, the Groupmade steady progress toward the fundamental goals of improving customer satisfaction and implementing advanced development
initiatives, called for in its medium-term management plan. However, the broadening impact of the novel coronavirus during thefourth quarter led to results including a sudden decrease in inbound tourism and decreased domestic demand for leisure andbusiness travel, which in turn had a major impact on the Group's consolidated business results as well.
As a result, revenue increased by 4.3% from the previous year to ¥169,770 million, operating profit decreased by 23.1% from theprevious year to ¥11,205 million, ordinary profit decreased by 12.7% to ¥12,499 million, and net income attributable to owners of
the parent decreased by 27.6% to ¥6,927 million.
In addition, due in part to the growing impact of the novel coronavirus, the Company recorded impairment losses of ¥2,227
million as a result of reassessment of operating conditions focused chiefly on assets such as those of the Global Cabin (New-stylecompact hotel) business in the Hotel Business segment, which initially began as part of the Company's response to growth ininbound tourism spurred by the Tokyo Olympic and Paralympic Games.

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2． Overview of results in main segments
Dormitory Business (student dormitories, employee dormitories, Domeal, subcontracted dormitories)(Unit: millions yen)Previous year
Fiscal year ended March 2019

This year
Fiscal year ended March 2020

Rate of change
(%)

Sales

48,93650,303

2.8

Operating income

7,807

8,021

2.7

In the dormitory business, during the period under review the Company opened a total of 15 new dormitories with 1,574 rooms
nationwide, including the Meiji University Global Village, a dormitory for international students. Initial occupancy rates at the
beginning of the fiscal year in April 2019 were favorable, up 1.0 percentage points from the previous year to 98.7%.
Revenues from the student dormitory business were up 0.8% from the previous year to ¥26,027 million, due to strong conditions
including increasing numbers of international students from abroad.
The employee dormitory business saw growth due to increasing numbers of companies newly adopting dormitory programs fortheir employees and increasing numbers of contracts with existing customers. As a result, revenue increased by 6.3% from thepervious year to ¥15,002 million.
The Domeal business saw revenues increase by 3.6% from the previous year to ¥4,689 million, thanks to factors including partner
schools and companies providing intermediary services for occupants of its studio-type dormitories.
Revenues in the contracted dormitories business, in which the Company operates and manages dormitories owned by businesses
and schools under contract on the owners' behalf, grew by 2.8% from the previous year to ¥4,583 million, as the Company
endeavored to differentiate itself from competitors based on its operation capabilities as Japan's leading operator of room-and-board
facilities.
As a result, the dormitory business as a whole recorded revenues of ¥50,303 million (up 2.8% from the previous year) and operating
profit of ¥8,021 million (up 2.7% from the previous year), at 494 locations (up nine from the previous year; not including contracted
dormitories) with capacity for 40,633 residents (up 1,183 from the previous year).
As of the end of March, the total number of residents who had signed leases stood at 38,124 persons (down 733 year on year),due in part to the impact of the novel coronavirus.
Hotel Business (Dormy Inn, resorts)(Unit: millions yen)Previous year

This year

Rate of change

Fiscal year ended March 2019

Fiscal year ended March 2020

(%)

Sales

78,342

78,976

0.8

Operating income

8,219

4,853

-41.0

Seven sites opened in the Dormy Inn Business during this period: Dormy Inn Maebashi, Dormy Inn Fukui, Dormy Inn Morioka,
Onyado Nono Asakusa, Dormy Inn Kawasaki, Dormy Inn Mito, and La Vista Furano Hills. Three new sites opened in the resort
business: Yukinohana, Shikishimakan, and Inazumi Hot Spring. Thanks to strong inbound tourism demand mainly from Hong
Kong, China, and Taiwan, as well as other factors including growth in the number of domestic travelers and through cost controls,
revenue during this period had been expected to be more than enough to cover the impact of typhoon damage on the Hakone region
in the autumn and the development costs of new facilities. However, the novel coronavirus outbreak in the fourth quarter of thisconsolidated fiscal year led to a sudden decrease in inbound tourism as well as lower occupancy rates and revenues in the DormyInn business centered on the greater Tokyo and Kansai regions, as businesses refrained from sending employees on business trips.
Due in part to the effects of opening new facilities, revenues were up by 1.0% from the previous period to ¥46,034 million in the
Dormy business and up 0.6% over the same period to ¥32,941 million in the resorts business.
As a result of the above factors, the Hotel Business as a whole recorded ¥78,976 million in revenues (up 0.8% from the previousyear) and ¥4,853 million in operating profit (down 41.0% from the previous year), from 17,656 guestrooms (up 1,716 from theprevious year) in 121 sites (up 10 from the previous year).
Comprehensive Building Management Business(Unit: millions yen)Previous year

This year

Rate of change

Fiscal year ended March 2019

Fiscal year ended March 2020

(%)

Sales

15,524

16,661

7.3

Operating income

296

611

106.1

In the Comprehensive Building Management Business, both revenues and profit increased thanks to factors including the effects－ 7 －of increases in numbers of construction projects and office building custodial service contracts. Revenues in this business were
¥16,661 million (up 7.3% from the previous year), while its operating profit stood at ¥611 million (up 106.1% from the previousyear).
Food Service Business (restaurants, contracted food service, contracted hotel restaurants etc.)(Unit: millions yen)Previous year

This year

Rate of change

Fiscal year ended March 2019

Fiscal year ended March 2020

(%)

Sales

6,998

7,357

5.1

Operating income

95

110

15.6

In the Food Service Business, both revenues and profit increased thanks to factors including growth in numbers of transactions
for management of hotel restaurant under contract. Revenues in this business were ¥7,357 million (up 5.1% from the previous year),while its operating profit stood at ¥110 million (up 15.6% from the previous year).
Development Business(Unit: millions yen)Previous year
Fiscal year ended March 2019

This year
Fiscal year ended March 2020

Rate of change
(%)

Sales

15,851

16,703

5.4

Operating income

1,906

1,376

-27.8

In the Development Business, revenue increased by 5.4% from the previous year to ¥16,703 million, due in part to factors such as
progress on development and sale and leaseback of real estate. However, operating profit decreased by 27.8% from the previous
year to ¥1,376 million due to the reduction of development profit from the sale and leaseback of real estate.
Other Businesses(Unit: millions yen)Previous year
Fiscal year ended March 2019

This year
Fiscal year ended March 2020

Rate of change
(%)

Sales

12,402

13,361

7.7

Operating income

-125

31

－

The Company's other business segments consist of the Senior Life Business (management and operation of senior residences), thePublic Kyoritsu Partnership (PKP) Business (services provided under contract to local governments), support for people who live
alone, the insurance agency business, comprehensive human-resource services, the financial business, and the administrative
outsourcing business. Revenues of other business segments increased 7.7% from the previous year to ¥13,361 million, while theiroperating profit totaled ¥31 million, vs. an operating loss of ¥125 million in the previous fiscal year.

(2) Overview of financial position during the period under review(Assets)
Total assets at the end of this consolidated fiscal year stood at ¥217,086 million, up ¥14,554 million from the end of theprevious consolidated fiscal year. This was due mainly to factors such as increases in real estate for sale in process, buildings andstructures, and cash and deposits.
(Liabilities)
Liabilities at the end of this consolidated fiscal year stood at ¥133,131 million, up ¥10,170 million from the end of the previous
consolidated fiscal year. This was due mainly to factors such as an increase in long-term loans payable.
(Net assets)
Net assets at the end of this consolidated fiscal year stood at ¥83,954 million, up ¥4,384 million from the end of the previous
consolidated fiscal year. This was due mainly to factors such as an increase in retained earnings.
As a result, the equity ratio fell by 0.6 percentage points from the end of the previous consolidated fiscal year, to 38.7%.

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8

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(3) Cash-flow position during the period under review
The balance of cash and cash equivalents at the end of this consolidated fiscal year stood at ¥17,792 million, up ¥1,722 million
from the end of the previous consolidated fiscal year.
(Cash flow from operating activities)
Cash flow from operating activities showed an inflow of ¥16,460 million, down ¥1,502 million from the previous consolidated
fiscal year, due to the effects of changes in notes and accounts receivable – trade.
(Cash flow from investing activities)
Cash flow from investing activities showed an outflow of ¥22,904 million, up ¥1,430 million from the previous consolidated
fiscal year, due to the effects of expenditures on purchase of property, plant, and equipment.
(Cash flow from financing activities)
Cash flow from financing activities showed an inflow of ¥8,208 million, up ¥5,601 million from the previous consolidated
fiscal year, due to the effects of inflows from long-term loans payable.
(Reference) Trends in cash-flow-related indicators
Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
March 2016
March 2017
March 2018
March 2019
March 2020
Equity ratio (%)

Equity ratio on mark-to-market
basis (%)
Ratio of interest-bearing debt tocash flow (years)

Interest coverage ratio (times)

35.9

37.0

37.6

39.3

38.7

116.4

74.0

103.9

105.7

42.8

8.2

5.0

6.1

4.6

5.7

10.2

24.9

26.1

45.3

47.2

Equity ratio: Shareholders' equity/total assets
Equity ratio on mark-to-market basis: Total market capitalization/total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/cash flow
Interest coverage ratio: Cash flow/interest paid
Notes: 1. Each indicator is calculated using financial figures on a consolidated basis.
2. Total market capitalization is calculated based on the number of shares issued and outstanding not including treasury
stock.
3. Cash flow from operating activities is used for cash flow.
4. Interest-bearing debt refers to all debts recorded on the Consolidated Balance Sheet for which interest is paid.
5. The amount of interest paid as shown on the Consolidated Statement of Cash Flows is used for interest paid.

(4) Future outlook
As a result of the impact of the novel coronavirus, initial occupancy rates in the Dormitory Business have fallen due topostponement of international students' arrivals in Japan and other factors. In addition, to restrain the spread of the novel
coronavirus the Hotel Business has taken measures based on giving top priority to the safety of guests and employees, such as
temporary closure of some business facilities. At the same time, measures have been introduced in response to the novel coronavirus
such as a program to support school attendance by lending funds for dormitory costs to students interest free and a program tosupport employment activities by enabling professionals to use facilities such as dormitories and hotels for telework and otheractivities at special rates. The future outlook is yet to be determined due to the difficulty of reliably estimating the impact of thenovel coronavirus at this point in time.
The Company has secured the funding expected to be needed in the future through agreement with financial institutions on
increased credit lines.

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9

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2. Basic thinking on selection of accounting standards
In consideration of comparability of consolidated financial statements for different periods and with other companies, the Group
has adopted a policy of preparing consolidated financial statements based on Japanese GAAP for now.
With regard to application of the International Financial Reporting Standards (IFRS), the Group plans to respond appropriately inconsideration of related domestic and international conditions.

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10

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3． Consolidated financial statements and major notes(1) Consolidated Balance Sheet(Unit: millions yen)Previous consolidated fiscal year
(March 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Real estate for sale
Real estate for sale in process
Costs on uncompleted construction contracts
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Lease deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Deferred assets
Bond issuance cost
Total deferred assets
Total assets

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11

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This consolidated fiscal year
(Tuesday, March 31, 2020)

16,643
9,273
288
6,815
297
7,763
-25
41,05618,303
11,057211
11,518
256
9,290
-46
50,59073,486-30,075
43,411
44,59817,615
13,497-10,1323,365
108,991
3,236

81,071-33,464
47,60744,50913,80514,809-11,281
3,527
109,450
3,918

5,126
610
16,462
14,981
2,765
8,825
-202
48,569160,796

4,761
1,030
17,337
16,226
3,416
9,947
-184
52,535
165,904

678
678
202,531591
591
217,086

(Unit: millions yen)Previous consolidated fiscal year
(March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds
Convertible bonds with stock options planned forredemption within one year
Income taxes payable
Advances received
Provision for bonuses
Provision for directors' bonuses
Provision for warranties for completed construction
Provision for point card certificates
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds with subscription
rights to shares
Long-term loans payable
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Provision for point card certificates
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Shareholders' equity
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

－

12

－

This consolidated fiscal year
(March 31, 2020)

6,788
10,4205,730

10,124
12,034
5,280－

19,992

2,985
11,336
2,359
495
9
3
9,910
50,0401,900
10,934
2,103
404
9
6
8,290
71,08039,10033,82019,995

－

7,707
3,483
332
1,083
271
6
534
406
72,921
122,961

21,922
3,575
352
1,140
251
0
597
390
62,050133,1317,960
12,81659,186-349
79,613

7,961
12,81764,281-355
84,706

367
-422
11
-43
79,570202,531

-117
-597
-36
-751
83,954217,086

(2) Consolidated Income Statement and Consolidated Statement of Comprehensive Income(Consolidated Income Statement)(Unit: millions yen)Previous consolidated fiscal year
This consolidated fiscal year
(From April 1, 2018 to March 31, (From April 1, 2019 to March 31,
2019)
2020)
Sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Salaries, allowances and bonuses
Employee benefits expenses
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Provision for directors' retirement benefits
Sales promotion expenses
Fees payable
Provision of allowance for doubtful accounts
Provision for point card certificates
Business consignment expenses
Rent expenses
Depreciation and amortization
Other
Total selling, general, and administrative expenses
Operating income
Non-operating income
Interest
Dividend income
Revenues from cancelled security deposits
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of bond issuance cost
Other
Total non-operating expenses
Ordinary income

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13

－

162,811125,229
37,581

169,770
135,554
34,215

4,719
995
721
495
85
1
2,087
8,398
4
6
1,528
801
275
2,892
23,014
14,567

4,948
1,033
653
404
120
1
2,126
8,780
－
0
1,793
761
320
2,064
23,009
11,205

72
107
105
4
174
463

75
126
119
1,224
390
1,937

394
74
240
709
14,321

342
86
214
643
12,499(Unit: millions yen)Previous consolidated fiscal year
This consolidated fiscal year
(From April 1, 2018 to March 31, (From April 1, 2019 to March 31,
2019)
2020)
Extraordinary income
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on disaster
Other
Total extraordinary loss
Net income before taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Current net income
Net income attributable to owners of the parent

－

14

－

18
－
18

508
2
510

50
23
39
112
14,227
4,939
-278
4,660
9,567
9,567

2,227
26
63
2,316
10,693
4,163
-396
3,766
6,927
6,927

(Consolidated Statement of Comprehensive Income)(Unit: millions yen)Previous consolidated fiscal year
This consolidated fiscal year
(From April 1, 2018 to March 31, (From April 1, 2019 to March 31,
2019)
2020)
Current net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent

－

15

－

9,567

6,927

-148
-43
-0
-192
9,374

-484
-175
-48
-708
6,219

9,374

6,219

(3) Consolidated Statement of Changes to Shareholders’ Equity
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Unit: millions yen)
Shareholders' equity
Capital stock
Starting balance
Changes of items during theperiodIssuance of new shares(Exercise of subscription rights
to shares)

Capital surplus

Retained earnings

7,949

12,80510

10

Total shareholders'equityTreasury stock

51,270-336

71,69021

Dividends of surplus-1,637-1,637

Net income attributable toowners of the parent

9,567

9,567

-14

-14

Changes accompanying mergerof consolidated subsidiaries
with non-consolidated
subsidiaries
Purchase of treasury stock
Sale of treasury stock

-13

-13

0

0

0

Net changes of items other thanshareholders' equity
Total changes of items during theperiodCurrent year-end balance

10

10

7,915

-13

7,923

7,960

12,81659,186-349

79,613

Accumulated other comprehensive income

Starting balance

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

515

-378

12

149

Changes of items during theperiodIssuance of new shares(Exercise of subscription rights
to shares)

Total net assets

71,83921

Dividends of surplus-1,637

Net income attributable toowners of the parent

9,567

Changes accompanying mergerof consolidated subsidiaries
with non-consolidated
subsidiaries-14

Purchase of treasury stock-13

Sale of treasury stock0

Net changes of items other thanshareholders' equity

-148

-43

-0

-192

-192

Total changes of items during theperiod

-148

-43

-0

-192

7,730

Current year-end balance

367

-422

11

-43

79,570－16－This consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Unit: millions yen)
Shareholders' equity
Capital stock
Starting balance

Capital surplus

Retained earnings

7,960

12,816

1

1

Changes of items during theperiodIssuance of new shares(Exercise of subscription rights
to shares)

59,186

Total shareholders'equityTreasury stock-349

79,613

3

Dividends of surplus-1,832-1,832

Net income attributable toowners of the parent

6,927

6,927

Changes accompanying mergerof consolidated subsidiaries
with non-consolidated
subsidiaries
Purchase of treasury stock-5-5

Sale of treasury stock
Net changes of items other thanshareholders' equity
Total changes of items during theperiodCurrent year-end balance

1

1

5,095

-5

5,092

7,961

12,81764,281-355

84,706

Accumulated other comprehensive income

Starting balance

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income

367

-422

11

-43

Changes of items during theperiodIssuance of new shares(Exercise of subscription rights
to shares)

Total net assets

79,5703

Dividends of surplus-1,832

Net income attributable toowners of the parent

6,927

Changes accompanying mergerof consolidated subsidiaries
with non-consolidated
subsidiaries
Purchase of treasury stock-5

Sale of treasury stock
Net changes of items other thanshareholders' equity

-484

-175

-48

-708

-708

Total changes of items during theperiod

-484

-175

-48

-708

4,384

Current year-end balance

-117

-597

-36

-751

83,954－17－

(4) Consolidated Statement of Cash Flows(Unit: millions yen)Previous consolidated fiscal year
This consolidated fiscal year
(From April 1, 2018 to March 31, (From April 1, 2019 to March 31,
2019)
2020)
Net cash provided by (used in) operating activities
Net income before taxes
Depreciation and amortization
Amortization of long-term prepaid expenses
Amortization of guarantee deposits
Increase (decrease) in provision for bonuses
Interest and dividends income
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on investments in partnership
Impairment loss
Loss on disaster
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Increase (decrease) in guarantee deposits received
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other
Net cash provided by (used in) investing activities

－

18

－

14,227
4,759
324
283
288
-179
394
-18
-4
50
23

10,693
5,260
334
263
-256
-202
342
-508
-1,224
2,227
26

1,327

-1,787306

5,893-1,213

3,338

450
146
156
470
169
160
758
22,883111-396
0-4,634
17,963

-377
-397
-120
-862
-397
55
-434
21,868132-348
0-5,192
16,460-275
49-16,596
2
-284
-224
-729
304
-2,555-19
1,359-18,941
750
-917
-467
-1,164501-3,381133

177-1,0062-295-21,474-1,021
160
57-22,904

(Unit: millions yen)Previous consolidated fiscal year
This consolidated fiscal year
(From April 1, 2018 to March 31, (From April 1, 2019 to March 31,
2019)
2020)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Starting balance of cash and cash equivalents
Increase in cash and cash equivalents resulting frommergerBalance of cash and cash equivalents at end of period

－

19

－

1,096
2,300
-6,87912,409-4,623-13-1,633
-49
2,606

700
18,000-2,870－-5,732-5-1,834
-49
8,208

-6

-41

-911
16,972

1,722
16,0709－

16,07017,792

(5) Notes on the consolidated financial statements(Notes on the going concern assumption)
Not applicable(Segment information etc.)[Segment information]
1． Summary of reporting segments
The Group's reporting segments are structural units of the Group for which separate financial information is available
and that are subject to periodic review by the Board of Directors to make decisions on allocation of management
resources and evaluate business performance.
The Group establishes business sections for individual services (or subsidiaries for some services) within the Group.
Each business section or subsidiary drafts strategies and engages in business activities for its services.
Accordingly, the Group consists of service-specific segments based on these business sections and subsidiaries. Its
five reporting segments are the Dormitory Business, the Hotel Business, the Comprehensive Building Management
Business, the Food Service Business, and the Development Business.
Each reporting segment is summarized below.
Dormitory Business: Operation and management of student dormitories, employee dormitories, Domeal, andsubcontracted dormitories
Hotel Business: The Dormy Inn (limited-service hotel) and resorts (resort hotel) businesses
Comprehensive Building Management Business: The office-building management and residential-building
management businesses
Food Service Business: The businesses of restaurants, contracted food service, and hotel restaurants and otherfacilities operated under contract
Development Business: The construction, planning, design, and brokerage businesses, the condominium business,the real-estate sale and leaseback business, andother development-related businesses
2． Calculation methods for revenues, profits or losses, assets, and other amounts for each reporting segment
The account processing methods for reported business segments are the same as those used in preparation of theconsolidated financial statements.
Figures for reporting-segment profits are based on operating income.
Internal revenues and transfers between segments are based on prevailing market prices.

－

20

－

3． Information regarding amounts of net sales, profit/loss, assets, , and other items per reporting segment
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Unit: millions yen)
Reporting segment
Comprehensivebuilding
management

Food
service

Developme
nt

Total

Other
Notes: 1.

Total

Adjustment
amountNotes: 2.

Amounts on
consolidated
financialstatements
Notes: 3.

DormitoryHotel

Net sales to externalcustomers

48,59378,182

7,613

1,306

15,229150,926

11,885

162,811－

162,811

Internal sales ortransfers between
segments

342

159

7,910

5,691

622

14,726516

15,243-15,243－

Total

48,93678,342

15,524

6,998

15,851

165,653

12,402

178,055-15,243

162,811

Segment profit or loss
(-)

7,807

8,219

296

95

1,906

18,325-125

18,199-3,632

14,567

Segment assets

50,542

107,584

12,457

1,542

17,287

189,414

9,203

198,617

3,914

202,531

Depreciation andamortization

1,141

3,460

62

21

40

4,726

100

4,826

-66

4,759

Impairment loss

41

1

－

2

－

44

5

50

－

50

3,012

14,998

52

38

130

18,23225

18,258-776

17,481

Sales

Other items

Increase in property,
plant andequipment, andintangible fixed
assets

Notes: 1. Other business segments consist of the following businesses not included in other 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 for people who live alone, the insurance agency
business, comprehensive human-resource services, the financial business, the administrative outsourcing business,and other incidental businesses.
2. Details of adjustment amounts are described below.
(Unit: millions yen)Segment profits
Elimination of inter-segment transactions-136

Companywide costs*-3,495

Total-3,632* Companywide costs refer mainly to costs related to administrative sections such as the head office Accounting
Division.
(Unit: millions yen)Segment assets
Elimination of inter-segment transactions-11,190

Companywide assets*

15,104

Total

3,914

* Companywide assets refer to head-office cash and deposits, investment securities, assets related toadministrative sections, and deferred tax assets.
3. Segment profit or loss is adjusted against operating profit on the consolidated financial statements.

－

21

－

This consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Unit: millions yen)
Reporting segment
Comprehensivebuilding
management

Food
service

Developme
nt

Total

Other
Notes: 1.

Total

Adjustment
amountNotes: 2.

Amounts on
consolidated
financialstatements
Notes: 3.

DormitoryHotel

Net sales to externalcustomers

49,97678,831

7,721

1,316

19,119156,965

12,805

169,770－

169,770

Internal sales ortransfers between
segments

327

145

8,940

6,041

-2,416

13,037556

13,594-13,594－

Total

50,30378,976

16,661

7,357

16,703

170,003

13,361

183,365-13,594

169,770

Segment profit or loss
(-)

8,021

4,853

611

110

1,376

14,97331

15,005-3,799

11,205

Segment assets

53,607

105,729

11,541

1,660

22,879195,418

10,435

205,854

11,232217,086

Depreciation andamortization

1,265

3,809

63

23

44

5,205

105

5,311

-51

5,260

Impairment loss

19

2,197

－

10

－

2,227

－

2,227

－

2,227

4,526

14,93674

16

7

19,561404

19,965

2,666

22,632

Sales

Other items

Increase in property,
plant andequipment, andintangible fixed
assets

Notes: 1. Other business segments consist of the following businesses not included in other 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 for people who live alone, the insurance agency
business, comprehensive human-resource services, the financial business, the administrative outsourcing business,and other incidental businesses.
2. Details of adjustment amounts are described below.
(Unit: millions yen)Segment profits
Elimination of inter-segment transactions-305

Companywide costs*-3,494

Total-3,799* Companywide costs refer mainly to costs related to administrative sections such as the head office Accounting
Division.
(Unit: millions yen)Segment assets
Elimination of inter-segment transactions-10,296

Companywide assets*

21,529

Total

11,232* Companywide assets refer to head-office cash and deposits, investment securities, assets related toadministrative sections, and deferred tax assets.
3. Segment profit or loss is adjusted against operating profit on the consolidated financial statements.

－

22

－

(Per-share information)
Previous consolidated fiscal year
(From April 1, 2018 to March 31, 2019)

This consolidated fiscal year
(From April 1, 2019 to March 31, 2020)

Net assets per share (JPY)2,040.75

2,153.24

Net income per share (JPY)245.41

177.68

Diluted net income per share (JPY)245.37－

Notes: 1. Diluted net income per share for this consolidated fiscal year is not shown due to the absence of shares with dilutive
effects.
2. The bases for calculation of net income per share and diluted net income per share are described below.
Previous consolidated fiscal
This consolidated fiscal year
year
(From April 1, 2019 to March(From April 1, 2018 to March
31, 2020)
31, 2019)
Net income per share
Net income attributable to owners of the parent(millions
yen)

9,567

6,927

－

－

9,567

6,927

(Shares)

38,986,480

38,990,276

Adjustment amount of net income attributable toowners of the parent(millions
yen)

－

－

Increase in shares of common stock(Shares)

5,869－(Bonds with stock options included in above)(Shares)(5,869)－Amount not attributable to common stock(millionsyen)

Net income attributable to owners of the parent related (millions
to common stock
Average shares of common stock during the periodyen)Diluted net income per share

Overview of potential shares not included in calculation of diluted
net income per share because they lack dilutive effects

Fourth issue of unsecured
convertible bonds with stock

Fourth issue of unsecured
convertible bonds with stock

options under March 7, 2016
resolution (of the Board ofoptions under March 7, 2016
resolution (of the Board of

Directors) (number of stock
options: 19,995)

Directors) (number of stock
options: 19,992)(Important developments arising after the end of the fiscal year)
Not applicable

－

23

－

4． Other(Production, orders received, and sales)
Sales during this consolidated fiscal year, by segment, are shown below.
Segment

Amount (millions yen)

Dormitory

Change from previous period (%)

50,303

2.8

Student dormitories

26,027

0.8

Employee dormitories

15,002

6.3

Domeal4,689

3.6

Subcontracted dormitories

4,583

2.8

78,976

0.8

Dormy Inn Business

46,034

1.0

Resorts Business

32,941

0.6

16,661

7.3

Office Building Custodial Services
Business

4,899

4.2

Residential Building Custodial
Services Business

11,762

8.7

Food service

7,357

5.1

Development

16,7035.4

170,003

2.6

Other

13,361

7.7

Adjustment amount-13,594－

169,770

4.3

Hotel

Comprehensive building management

Total for reporting segment

Total
Note: The amounts shown above do not include consumption tax etc.

－24－