Hotel & Spa Resort LA VISTA Kirishima Hills

Kotohira hot spring Onyado Shikishimakan

Overview of Consolidated Financial Results for the First
Quarter of the Fiscal Year Ending March 31, 2021

August 2020

9616

Agenda01

Consolidated financial results for the firstquarter of the fiscal year ending
March 31, 2021

P. 2

02

Projected results for FY3/21

P.15

03

Progress on the medium-term
management plan

P.18

1

La Vista Furano Hills

Consolidated
financial results
for the first quarterof the fiscal year
ending March 31,
2021

Hosei University Komagome
Dormitory

2

Executive Summary

In 1Q of the Fiscal Year Ending March 31, 2021, both sales and profit
decreased due to the COVID-19 pandemic.

１➢

The Dormitory Business began with an initial occupancy rate of 93.7%, despite reduced demand from international
students and new-employee training.

➢

In the Dormy Inn Business, occupancy rates bottomed out in April and May but began to rebound sharply in June.

➢

Despite COVID-19, the Resorts Business maintained unit prices per room that were largely unchanged from theprevious year and has been recovering since June.

➢

With regard to development plans, in the Dormitory Business 1,095 rooms in 14 facilities opened in April, while no
new facilities opened in the Hotel Business during 1Q. Decisions will be made on future openings based on
consideration of COVID-19 conditions.

At this stage, full-year forecasts of business performance and projected
dividends are yet to be determined.

2➢

While business performance is improving since beginning to rebound in June, the impact of COVID-19 may continue
to be felt in the future. Accordingly, the Company has determined that it would be difficult to estimate full-year
forecasts at this stage. Accordingly, projected dividends also are to be determined.

3

Consolidated business results in FY 3/21 Q1(Unit: 100 million yen)

FY 3/20

FY 3/21

Q1 ActQ1 ActNet sales

421.6

236.0

-185.6-44.0%

Operating profit

31.5

-45.2

-76.7

-

Ordinary profit

30.1

-48.0

-78.2

-

Net profit

20.7

-64.2

-85.0

-

EPS (JPY)

53.2-164.7-218.0-Depreciation

12.2

12.7

+0.4

+4.0%

Cash flow*

33.0

-51.5

-84.5

-

YoY change* Cash flow: Net profit + depreciation

4

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

130

121

Hotel total - FY 3/20 Q1- FY 3/21 Q1

121(Unit: 100 million yen)

198
41

77

FY3/20 Q1

39

FY3/21 Q1

29

Dormy Inn

Resorts

Operating profit

15.7

34

37

6

Comprehensive
Building
Management

Foods Service

Hotel total - FY 3/20 Q1- FY 3/21 Q1
20.8

44

17

12

Dormitory

41

34

Development

Others

16.8
-56.1

20.1

0.9
FY3/20 Q1

0.5

1.5

0

1.1

-0.1

-3.3

FY3/21 Q1

1.9

0.5

-19.5
-36.5

Dormitory

Dormy Inn

Resorts

Comprehensive
Building
Management

Foods Service

Development

Others5

Dormitory Business: FY 3/21 Q1 Net sales and operating profit
Net sales(Unit: 100 million yen)

Operating profit

Operating profit decreased by 910
million yen (7.0%) from theprevious period

Profit decreased by 0.5 billion yen(24.4%) from the previous period

+0.5
-1.2

+3.3

-1.1

-9.2

-5.2

-2.0
Newly opened:(Rooms)Hokudai Avenue

125
49
72
95
162
60
77
455
1,095

NipporiAzabu-Juban

130

Komazawa Koen
Hyakumanben Annex
Ezaka Koen
Yokohama-Nishi
OthersTotal

FY3/20 Q1

FY 3/20

14facilities

FY 3/21

Facilities opened Facilities opened

Impact of

COVID-19

+0.8

20.8
121

OthersFY3/21 Q1

15.7

FY3/20 Q1

FY 3/20

FY 3/21

Facilities opened Facilities opened

Impact ofOthersFY3/21 Q1

COVID-19

6

Dormitory Business: Trends in initial number of leased units/occupancy rate
Trend in initial number of leased units (by category)This was due mainly todecreased demand for newemployee training as a resultof the novel coronavirus(Rooms)40,089(+1,709))40,00030,000

4,586

4,810

5,097

8,682

9,387

10,068

5,263
11,312

5,293
12,08538,898(-1,191)

5,531

5,673

13,266

12,405(-861)(+1,181)

DomealEmployee

20,00010,00020,212

20,534

20,685

20,520FY 3/15FY 3/16

FY 3/17

FY 3/18*

21,002*
21,292*(+290)

20,820(-472)

FY 3/20

FY 3/21

dormitory
Student dorm

0*International students included above

FY 3/19

2,660(12.7%) 3,079(14.5%) 2,466(11.8%)

Trend in initial occupancy rate
(%)
97.2

97.3

98.3

98.3

97.7

98.7

As a result of the
impact of the novel
coronavirus,
international
students' arrivals inJapan have been
postponed, leading
to a decrease in theinitial number ofleased units

93.7

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/217

Dormy Inn Business: FY 3/21 Q1 Net sales and operating profit
Net sales(Unit: 100 million yen)

Operating Profit

Operating profit decreased by 9.14 billion yen(75.5%) from the previous period

Profits decreased by 5.66 billion yen from theprevious period

-2.9

-4.5

20.1
Facilities opened in FY3/20 +11.7(Not including impact of
COVID-19)
-99.5
121

Facilities subjected tolarge-scale repairs in
the previous period

-57.8

+0.8

Facilities opened in FY3/20 +0.9
(Not including impact of
COVID-19)
Facilities subjected tolarge-scale repairs in
the previous period+0.5

Others

+1.0

-36.5

+12.5
29

FY3/20 Q1

Golden Week

Impact ofholidays

COVID-19

OthersFY3/21 Q1+2.4
FY3/20 Q1

Golden Week

Impact ofholidays

COVID-19

Others+1.7
Cost savings

FY3/21 Q1

8

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

FY 3/21:Average Daily Rate

FY 3/20:Occupancy Ratio

FY 3/21:Occupancy Ratio(Thousand yen)
100.0%

30.0

90.0%
89.1%

90.3%

90.3%

80.0%

91.6%

95.5%

92.7%

93.6%

93.8%

89.9%

70.7%

82.3%

25.0

85.8%

70.0%

20.0

60.0%
55.5%

50.0%
40.0%

30.6%

15.0

27.2%

10.0

30.0%
20.0%

5.0

10.0%
0.0%

0.0
Apr

May

Jun

Jul

Aug

Sep

Occupancy Ratio

Oct

Nov

Dec

Jan

Feb

Average Daily Rate
Q1

Q2

Q3

Q4

FY 3/20(actual results)

89.9%

93.3%

92.4%

74.3%

FY 3/21(actual results)
YoY change

Annualcumulative
total(Thousand yen)

Q1

Q2

Q3

FY 3/20(actual results)

11.1

11.2

10.5

42.7%

FY 3/21(actual results)

6.1-47.2pp

YoY change

-4.9

87.5%

Mar

Annualcumulative
total

Q4
9.0

10.5

(Note) The table above shows figures not including hotels that opened in April 2018 or later (to enable comparison between the two periods under similar conditions)9Dormy Inn Business: inbound tourism ratio by month
The number of Inbound guests -Dormy Inn
The number of Domestic guests -Dormy Inn(Thousand people)

FY3/20: % of Inbound

1,000

40.0%

FY3/21: % of Inbound

900
32.0%

800

30.7%

28.6%

28.8%

700

29.5%

25.3%

31.2%
24.8%

30.9%
30.0%

29.7%

600

20.5%

500
400

20.0%

172
166

178

168

169

188

149

175

177

172

12.0%

102

300

42

200

332

316

100

141

343

311

115

402

348

340

336

334

10.0%

328

318

265

312

Apr

May

Jun

Jul

Aug

Sep

% of Inbound（On a revenue basis)

Oct

Nov

Dec

Jan

Q1

Q2

Q3

Q4

FY 3/20(actual results)

30.1%

26.2%

30.5%

22.9%

27.8%

FY 3/21(actual results)
YoY change

FY3'21FY3'20Feb

ADR
Annualcumulative
total

FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21

0.0%

FY3'200Mar(Thousand yen)

FY 3/20Q1

FY 3/21
Q1

Annual cumulative
total

Excl. inbound

10.7

6.2

-4.5

-42.1%

0.0%

Inbound

12.3

-

-

-

-30.1pp

Difference

+1.6

-

-

10

Resorts Business: FY 3/21 Q1 Net sales and operating profit
Net sales(Unit: 100 million yen)

Operating Profit

Operating profit decreased by 6.53 billion yen(84.2%) from the previous period

Profits decreased by 1.62 billion yen from theprevious period

-3.3

-1.5

-2.9

Facilities opened in FY3/20(Not including impact of
COVID-19)

77

74

-69.8

Facilities subjected tolarge-scale repairs in
the previous period

+4.3

+2.8

Facilities opened in FY3/20(Not including impact of
COVID-19)
Facilities subjected tolarge-scale repairs in
the previous period+1.2

Others

+1.2

-19.5

+1.4

-20.7

+2.0

+7.4
FY3/20 Q1

Golden Week
holidays

Impact of COVID-19

Others+3.9

12
FY3/21 Q1
FY3/20 Q1

Golden Week

Impact ofholidays

COVID-19

OthersCost savings

FY3/21 Q1

11

Resorts Business: Monthly trends in Occupancy Ratio and Average Daily Rate
FY 3/21:Occupancy Ratio

FY 3/20:Occupancy Ratio

FY 3/21:Average Daily Rate

FY 3/20:Average Daily Rate

(Thousand yen)
100.0%

120.0

94.4%

90.0%

80.0%

77.0%

77.2%

76.9%

82.2%

77.9%

82.6%

75.6%
76.5%

75.7%

70.0%

100.0

75.8%

57.4%

60.0%

80.0

60.0

50.0%
40.0%

40.0

30.0%

29.5%

20.0%

10.0%

20.0
15.0%

9.4%
0.0

0.0%
Apr

Jul

Jun

May

Aug

Sep

Occupancy Ratio

Oct

Nov

Average Daily Rate
Q1

Q2

Q3

Q4

FY 3/20(actual results)

76.7%

84.6%

78.7%

69.7%

FY 3/21(actual results)
YoY change

Annualcumulative
total

Mar

Feb

Jan

Dec

(Thousand yen)

Q1

Q2

Q3

Q4

FY 3/20(actual results)

43.0

45.2

41.5

40.4

17.0%

FY 3/21(actual results)

41.8-59.7pp

YoY change

-1.1

77.4%

Annualcumulative
total

42.6

(Note) The table above shows figures not including hotels that opened in April 2018 or later (to enable comparison between the two periods under similar conditions)12Other Businesses: FY 3/21 Q1 Net sales and operating profit(Unit: 100 million yen)

Net sales: YoY change -7.1%

FY3/20 Q1

Operating profit: YoY change -8.8%

FY3/20 Q1

FY3/21 Q1
41

39

FY3/21 Q1

44

34

34

37

+1.1
(includes
PKP+0.8 andsenior +0.1)

1.9- 10.7
- 4.7

+ 2.5

17

+ 3.3
(includes PKP+3.3 andsenior - 0.1)

1.5

- 0.3

0.5

6

1.1

- 0.6

0.9

- 0.3

0.5

0.0
Comprehensive
Building
Management
Business

Food Service
Business

Development
Business

Other
Businesses-0.1
Comprehensive
Building
Management
Business

Food Service
Business

Development
Business

Other
Businesses

13

ESG initiatives•

Enhancement of corporate governance➢Appointment of outside Directors

This
fiscalyear

With the appointment of three new outside Directors in June, outside Directors now account for more than one-third of Directors.

Previous
fiscalyear

Outside Director who is not a member of the audit and supervisory board (one Director): Newly appointed in June of last year Former Director, Japan Tourism

Three outside Directors who are not members of the audit and supervisory board: Highly familiar with the fields of health andsafety, education, economics, real estate, community development, and tourism

Agency Highly familiar with the fields of land, infrastructure, and transport policy and tourism policy
Outside Directors who are members of the audit and supervisory board (two Directors): Highly familiar with the fields of finance, accounting, businessadministration, and economics* The Company has established a structure under which the above outside Directors monitor Company management as independent
Directors (of whom the Tokyo Stock Exchange has been notified). These independent Directors attend all meetings of the Board of
Directors, where they offer proactive and constructive opinions.
➢••Shareholders will be provided with sufficient time for thorough consideration of the resolutions to be submitted to the General Meeting of
Shareholders through means such as early notification, by electronic means, of convocation of the meeting.

Realizing gender equality➢

The Company appointed its first woman Director in June 2019, and one of the outside Directors appointed in June 2020 is a woman.

➢

The percentage of managerial positions filled by women is 12.3% and continues to rise. (The national average for all businesses is 7.8%; source: Teikoku
Databank corporate attitude survey on promotion of women)

Clean, renewable energy for all➢

Renewable energy - Participating in the activities of the town of Nakanojo, Gunma Prefecture to promote community vitalization through local production and local
consumption of electricity etc.

➢

Environmental protection activities - Adoption of business cards made from limestone (LIMEX business cards) etc.

14

Ogihama Hot Spring
Dormy Inn Kawasaki

Projected
results for
FY 3/21

Inishie no yado Keiun
15

Projected consolidated results for FY3/21
To be determined, due to the difficulty of making reasonable estimatesat this stage in light of expectations that the impact of COVID-19 maycontinue to be felt in the future.
* Business performance has been recovering since June, as the occupancy rate in the Dormy Inn Businesshas been rising strongly since then and numbers of domestic guests have recovered to the same level they
were at one year earlier. Unit prices per room in the Resorts Business maintained their levels from before
COVID-19 and are in an increasing trend.

Main measures now underway
I. Thorough cost cutting
Building a solid business structure through thorough cost savings Companywide
II. Beginning to rebound after the release of the state of emergency◇ Assumptions
・ Thorough implementation of measures to prevent the spread of the coronavirus (e.g., in ways ofserving meals and thorough disinfection and sterilization of guestrooms and common areas)・ A recovery in inbound tourism is expected to take one to one and one-half years or longer⇩⇩⇩
Offering and announcing new plans and services chiefly targeting domestic customers* See the next page for specific measures☞

III. Securing the planned funding necessary
The Company has secured the funding expected to be needed for the time being through agreementwith financial institutions on increased credit lines.
16

Specific measures■ “Chokko Ofukubin” fromhome to the resort-

New lodging plans that include round-trip
taxi transportation, jointly developed with ataxi company, have been introduced.

-

These new plans help guests enjoy a relaxing
trip by ensuring convenient door-to-doortransportation.

-

These lodging plans including dinner andbreakfast offer hot-springs bathing andluxurious meals at eight facilities in the
Kanto region, including Hakone, Kawaguchiko,and Izu, four facilities in the Kansai region,
including Kinosaki and Nanki Shirahama, andtwo facilities in the Ise and Okuhida areas.
* Eligible areas and facilities are increasing
steadily.

■ COVID-19 school support program launched to reduce theeconomic impact of student dormitories through interest-free loans■ Long-term stay plans introduced for guests residing at Dormy
Inn hotel facilities
17

Kotohira hot spring
Onyado Shikishimakan

Progress on themedium-term
management plan

Gora Onsen
Setsugetsuka
Bettei Suiun
18

Main quantitative goals of the medium-term management plan
(March 2018 – March 2022) and state of progress on them
Quantitative targets are now under verification in light of the impact of COVID-19.
Development, which is key to achieving the targets of the medium-term
management plan, is progressing faster than planned.
Quantitative targets of the "Kyoritsu Jump Up Plan" medium-term management plan
Main quantitative goals

Results in FY 3/17, the starting pointof the medium-term management plan

Progress as of FY 3/20

Results in FY 3/22, the final fiscal year of themedium-term management plan

Net sales

135.8 billion yen

169.7 billion yen (CAGR: +6%)

220 billion yen (CAGR: +10%)

Operating profit

11.8 billion yen

11.2 billion yen(CAGR: ― )19 billion yen (CAGR: +10%)

Net D/E Ratio

0.9 times

0.9 times

No greater than 1.0,
the financial soundness target

Payout ratio

16.8%

25.3%

Gradually increasing, aiming for a targetof more than 20%

ROE

11.7%

8.5%

10% or more

Development plans

Results in FY 3/17, the starting point of themedium-term management plan

Progress at the end of FY 3/21 Q1(FY 3/18 - FY 3/20 Q1 cummulative)

End of FY 3/22, the final fiscal year of themedium-term management plan

Dormitory

37,000 rooms

Dormy Inn

10,200 rooms

Resorts

2,200 rooms- Development basis: 5,412 rooms- Projects on which the institutions already havemade decisions: Approximately 7,000 rooms(progress rate: 100%)- Development basis: 4,636 rooms- Projects on which the institutions already havemade decisions: Approximately 9,000 rooms(progress rate: 100%)- Development basis: 659 rooms- Projects on which the institutions already havemade decisions: Approximately 1,500 rooms(progress rate: 107%)

7,000 rooms

9,000 rooms

1,400 rooms

19

Dormitory and hotel development plans to realize sustained growth
FY 3/18
Results

FY 3/19
Results

FY 3/20
Results

FY 3/21
PlannedFY 3/22
PlannedDormitories, Domeal+10 facilities*+963 rooms*+14 facilities*+1,780 rooms*+15 facilities*+1,574 rooms*+15 facilities*+1,181 rooms*+20 facilities*+1,583 rooms*

End of FY 3/17:

Number of facilities inoperation at end of year

473 facilities

Number of facilities inoperation at end of year

485 facilities

Number of facilities inoperation at end of year

494 facilities

Number of facilities inoperation at end of year

506 facilities

Number of facilities inoperation at end of year

524 facilities

Leasing rate

88.5%

Leasing rate

88.5%

Leasing rate

87.6%

Leasing rate

87.9%

Leasing rate

87.4%

Number of rooms inoperation at end of year

42,963 rooms

463 facilities/37,000 rooms

Number of rooms inoperation at end of year

Number of rooms in
38,166 rooms
39,450 rooms
Medium-term plan:
operation at end of year
7,000 rooms[L]Waseda, [L]Hikifune,
Noda ANNEX,[L]Keiotsunashima, [L]Tsurugashima,[L]Senjunakamachi,
Projects on which the institutions
Omoromachi, [L]Kaihinmakuhari,[L]Tsunashimaekimae, Higashiosaka,
already have made decisions[L]Tokorozawa,[L]Maihama, [L]Minamikoshigaya,
Around 7,000 rooms[L]Hakataekiminami Ⅱ, [L]Kokuraekimae,[L]IrinakaⅡ, [L]Koroen ,and others.
Progress rate
and others.

Number of rooms in
40,633 rooms
operation at end of year
[L] Sendai Higashiguchi V,[L] Motoyama, [L] Osaka Tenma,[L] Kagoshima, [L] Kobe,[L] Ichigaya, [L] Komagome,
Meiji University Global Village,[L] Setagaya Todoriki, and others

100%

Number of rooms in
41,621 rooms
operation at end of year
[L] Hokudai Avenue, [L] Nippori,[L] Sendai Tsutsujigaoka,[L] Nagakute, [L] Hamadayama,[L] Komazawa Koen,[L] Esaka Koen, [L] Azabu-Juban,[L] Hyakumanben Annex,[L] Yokohama-Nishi, and others[L] Sakado II, Niigata II,[L] Kyoto-Kuinabashi,[L] Iriya, [L] Hirao-Ekimae,[L] Kameari, [L] Setagaya Todoroki,[L] Sapporo kita 14-jo, and others

Dormy Inn

+9 facilities+1,571 rooms+9 facilities*+1,530 rooms*+7 facilities+1,535 rooms+7 facilities+1,797 rooms+13 facilities+2,694 rooms

End of FY 3/17:

Number of facilities inoperation at end of year

72 facilities

Number of facilities inoperation at end of year

80 facilities

Number of facilities inoperation at end of year

87 facilities

Number of facilities inoperation at end of year

94 facilities

Number of facilities inoperation at end of year

107 facilities

Leasing rate

98.8%

Leasing rate

98.9%

Leasing rate

99.0%

Leasing rate

99.1%

Leasing rate

99.3%

14,783 rooms

Number of rooms inoperation at end of year

16,580 rooms

Number of rooms inoperation at end of year

19,274 rooms

63 facilities/10,200 rooms

Number of rooms inoperation at end of year

Number of rooms in
11,811 rooms
13,248 rooms
Medium-term plan: 9,000
operation at end of year
rooms
[L]Honhachinohe, [L]Osakatanimachi,[L]PREMIUM Kanda,[L]Korakuen, [L]Oita,[L]Miyazaki,[L]global cabin Hamamatsu,[L]global cabin Suidobashi,
Projects on which the institutions [L]Kofumarunouchi, [L]Izumo,[L]global cabin Yokohamachukagai,
already have made decisions[L]Takamatsuchuokoenmae,[L]EXPRESS Sendai-Seaside,Around 9,000 rooms[L]Nono Nara, [L]Kochi, [L]Matsuyama [L]PREMIUM Namba ANNEX,[L]PREMIUM Osakakitahama

Number of rooms inoperation at end of year

[L]Maebashi, [L]Fukui,[L]Morioka, [L]Nono Asakusa,[L]Kawasaki, [L]Furano,[L]Mito[L] Nono Kyoto-Shichijo,[L] Kobe, [L] PREMIUM Ginza,[L] Ikebukuro,[L] Nagasaki-Ekimae,[L] Toyohashi,[L] Nono Kanazawa[L] Gotemba, [L] Nono Matsumoto,[L] Nono Sendai,[L] Fukuyama[L] Tokyo Bay (Toyosu),[L] Hiroshima ANNEX,[L] Aomori, [L] NonoYodoyabashi,[L] Okayama, [L] Nono Matsue,[L] Nono Kumamoto,[L]Yokohama, [L] Nono Asakusa Bettei,

Progression rate
100%

Resorts+4 facilities+253 rooms+2 facilities+171 rooms+3 facilities+235 rooms+6 facilities+486 rooms+4 facilities+407 rooms

End of FY3/17:

Number of facilities inoperation at end of year

29 facilities

Number of facilities inoperation at end of year

31 facilities

Number of facilities inoperation at end of year

34 facilities

Number of facilities inoperation at end of year

40 facilities

Number of facilities inoperation at end of year

44 facilities

25 facilities/2,200 rooms

Leasing rate

58.7%

Leasing rate

60.2%

Leasing rate

61.6%

Leasing rate

60.4%

Leasing rate

68.9%

Medium-term plan: 1,400
rooms

Number of rooms inoperation at end of year

2,478 rooms

Number of rooms inoperation at end of year

2,884 rooms

Number of rooms inoperation at end of year

3,370 rooms

Number of rooms inoperation at end of year

3,777 rooms

Keiun (Izumo),
Tsukiyo no Usagi (Izumo),
Projects on which the institutions[L]Le Chien Kyu-Karuizawa,
already have made decisions[L]Suiun (Gora)

Number of rooms in
2,649 rooms
operation at end of year[L]La Vista Kirishima (Kagoshima),[L]Shirakawago (Gifu)[L]Echigoyuzawa (Niigata),[L]Kotohira (Kagawa),
Inazumi (Akita)

Around 1,500 rooms[L] La Vista Kusatsu (Gunma),[L] Nasu-Shiohara Rengetsu (Tochigi),[L] Wakura Hot Spring (Ishikawa),
Bettei Suigetsu (Shizuoka),
and others[L] Kawazu Hot Spring (Shizuoka),[L] Kyoto Umekoji,
Kikuya[L] La Vista Hakodate Bay ANNEX,[L] Jozankei

Progression rate
107%
Companywide leasing rate

89.4%

89.7%

89.2%

89.4%

89.8%

Note: While as noted above development is proceeding during the period of the medium-term management plan, the timing of opening for business could vary depending on COVID-19 conditions.
* 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)
Note: “L” indicates a leased facility; underlines indicate real-estate sale and leaseback projects including future plans

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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 oralpresentations, questions and answers, and information provided in writing or orally. This presentation (including related oral explanations and questions andanswers) 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 in this 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 thesubsidiaries 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, or views 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,” or similar terms, or negative expressions thereof, that is not necessarily always the case. The forward-looking statements in this document are basedon current assumptions and ideas in light of the information currently available to the Company. Forward-looking 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
the appearance or development of competing products, decisions by regulators and the timing thereof, and natural disasters. As a result of such factors, theCompany’s actual business performance, results, and financial details may differ substantially from the future 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 theultimate 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 the forward-looking statements containedin 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.

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The Company will strive to improve business results further throughadvancing the priority measures identified in the medium-term
management plan (March 2018-March 2022) at an accelerating pace.

Thank you!

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