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

1st Quarter of Fiscal Year March 2011
Consolidated Earnings Results Update
August 2010

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%
10,00000%3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11E

m

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

m

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09

3/10 3/11E

Consolidated Net Income and YY Change
3,000

80%
60%

2,500

40%
2,000
20%
1,500
0%
1,000
-20%
500

-40%

0

-60%
3/99

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09

3/10 3/11Em(Units: Million Yen)2

140,000
120,000
100,000
80,00060,00040,00020,00003/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10
total assets

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

14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
3/99

3/00

3/01

3/02

3/03
ROE

3/04

3/05

3/06

3/07

3/08

3/09

3/10

ROA

3

Construction,
595, 3%
Food Service,
1,129, 5%

Other, 1,223,
5%

Contracted
Services,
2,724, 12%
Dormitories,
10,689, 48%

Hotels, 6,012,
27%

Business Segment Sales
1Q FY3/10

Construction,
1,661, 7%

Other, 1,076,
5%

Food Service,
949, 4%Contracted
Services,
2,690, 11%

Dormitories,
10,497, 45%

Hotels, 6,719,
28%

Business Segment Sales
1Q FY3/11(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 3/10 3/11E * 1Q3/10 1Q3/11
net sales
32,458 36,788 37,884 50,065 50,109 54,081 58,014 63,085 66,287 75,606 82,303 84,513 89,600 * 20,000 21,216
gross income
6,578 7,173 7,834 10,221 10,785 10,541 10,894 11,783 12,242 14,183 15,507 13,957 na * 4,011 3,703
operating income
2,465 2,369 2,828 3,908 4,149 4,004 4,407 4,611 3,745 4,492 5,349 4,033 4,750 * 1,310 997
ordinary income
2,203 2,281 2,643 3,580 3,885 4,060 4,411 4,824 3,787 4,167 4,510 3,012 3,600 * 1,010 682
net income
850 907 1,147 1,822 2,039 2,138 2,343 2,011 2,413 2,740 2,133 1,254 1,300 * 357 -28**
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 23,104 na * 20,482 18,040
fixed assets
25,695 29,867 40,478 47,768 49,497 55,715 62,336 74,681 85,562 95,728 103,891 115,980 na * 105,082 116,279
total assets
41,144 49,880 64,327 65,867 71,647 77,865 85,620 98,047 110,507 115,738 125,793 139,209 na * 125,687 134,439
current liabilities
20,921 19,731 28,513 27,031 31,610 29,374 31,585 44,039 37,342 44,119 41,615 41,499 na * 40,996 39,136
fixed liabilities
10,946 16,977 22,064 23,761 23,146 29,433 33,077 28,316 46,068 44,079 55,266 67,956 na * 55,457 65,830
total liabilities
31,866 36,707 50,577 50,792 54,755 58,806 64,663 72,355 83,411 88,199 96,882 109,455 na * 96,453 104,967
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 29,753 na * 29,233 29,471**
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% 2.7% 6.0% * -4.7% 6.1%
gross income
6.3% 9.0% 9.2% 30.5% 5.5% -2.3% 3.3% 8.2% 3.9% 15.9% 9.3% -10.0% na * -7.1% -7.7%
operating income
25.1% -3.9% 19.4% 38.2% 6.1% -3.5% 10.1% 4.6% -18.8% 19.9% 19.1% -24.6% 17.8% * -22.4% -23.9%
ordinary income
18.2% 3.5% 15.9% 35.4% 8.5% 4.5% 8.6% 9.4% -21.5% 10.0% 8.2% -33.2% 19.5% * -33.1% -32.5%
net income
64.6% 6.7% 26.5% 58.8% 11.9% 4.8% 9.6% -14.2% 20.0% 13.6% -22.2% -41.2% 3.6% * -49.3% na**
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% 16.5% na * 20.1% 17.5%
operating margins
7.6% 6.4% 7.5% 7.8% 8.3% 7.4% 7.6% 7.3% 5.6% 5.9% 6.5% 4.8% 5.3% * 6.6% 4.7%
ordinary margins
6.8% 6.2% 7.0% 7.2% 7.8% 7.5% 7.6% 7.6% 5.7% 5.5% 5.5% 3.6% 4.0% * 5.1% 3.2%
net margins
2.6% 2.5% 3.0% 3.6% 4.1% 4.0% 4.0% 3.2% 3.6% 3.6% 2.6% 1.5% 1.5% * 1.8% -0.1%**
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% 4.2% na * 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% 0.9% na * 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% 21.4% na * 23.1% 21.7%
Units: mil ion yen
5

1st Quarter of Fiscal Year March 2011 Earnings Announcement
August 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):
August 13, 2010
Dividend Payment Date (anticipated):-Supplemental Quarterly Earnings Announcement Document:
None
Quarterly Earnings Announcement Meeting:
None

Tokyo Stock Exchange(All figures of less than one million yen are rounded down to the nearest digit)

1. 1st Quarter of Fiscal Year March 2011 Consolidated Earnings (From April 1, 2010 to June 30, 2010)(1) Consolidated Earnings (Aggregated)
Net Sales
1Q-FY3/11
1Q-FY3/10

Operating Income

Ordinary Income

Net Income

Million yen% yyMillion yen% yyMillion yen% yyMillion yen% yy

21,21620,000

6.1
-4.7

997
1,310

-23.9
-22.4

682
1,010

-32.5
-33.1

-28
357

--49.3EPS
1Q-FY3/11
1Q-FY3/10

Fully Diluted EPS
Yen

Yen

-1.97
24.90

-19.87(2) Consolidated Financial Position
Total Assets

Net Assets

Million yen

Net Asset Ratio

Million yen

1Q-FY3/11
134,439
29,471
FY3/10139,20929,753(Reference) Capital: 1Q-FY3/11 – 29,230 million yen, FY3/10 –29,518 million yen

Book Value per Share
％

Yen

21.7
21.2

2,034.79
2,054.83

2. Dividend Conditions
Registry Date

End
1Q
Yen

Dividends per Share
End
End
End
3Q
2Q
Year
Yen

Yen

19.00

38.00

FY3/11 (Projected)
19.00
19.00
(Note) Revision of quarterly dividend payment projections: None

38.00

FY3/10FY3/11

Yen

Yen

Full
Year

19.00

3. Fiscal Year March 2011 Consolidated Earnings Projection (April 1, 2010 to March 31, 2011)
Net Sales
Million Yen

First Half
Full Year%yy

Operating Income

Ordinary Income

Million Yen

Million Yen%yy

43,850
1.2
2,250
-28.7
89,600
6.0
4,750
17.8
Revisions to our earnings projections during the current quarter: None

1,560
3,600

Net Income

EPS

%yy

Million Yen

%yy

Yen

-39.6
19.5

390
1,300

-67.4
3.6

27.15
90.50

6

4. Others(1)

Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(Note) Existence of changes in our subsidiaries affecting the scope of our consolidation during the current
quarter.
(2) Application of simple accounting procedures and other special accounting procedures: Yes(Note) Implementation of simple accounting procedures used in the preparation of quarterly financial
statements.
(3) Changes in the accounting methods, procedures, presentation methods:① Changes accompanying revisions in accounting standards: Yes② Other changes: None
(Note) Existence of changes in the accounting methods, procedures, and display methods used in the
preparation of quarterly financial statements as noted in the “Changes in important criteria used in the
preparation of our consolidated financial statements.”(4) Shares issued (Common stock)① Shares issued as of term end (including treasury stock): 15,125,582 at end 1Q FY3/11, 15,125,582 at end
FY3/10② Treasury stock as of term end: 760,287 at end 1Q-FY3/11, 760,215 at end FY3/10③ Average shares issued during term: 14,365,350 during 1Q-FY3/11, 14,366,335 during 1Q-FY3/10

 Disclosure of conditions of implementation of quarterly review
This quarterly earnings announcement is not subject to reviews mandated by the Financial Instruments andExchange Act, and this earnings announcement has not been subjected to review as of its release.
 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Document Index
1. Qualitative Information Regarding Quarterly Consolidated Earnings(1) Qualitative Information Regarding Consolidated Earnings(2) Qualitative Information Regarding Consolidated Financial Position(3) Qualitative Information Regarding Consolidated Earnings Projections
2. Other Information(1) Changes in Important Subsidiaries(2) Overview of the Implementation of Simple or Special Accounting Methods(3) Overview of Changes in the Accounting Methods, Procedures, and Display Methods
3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(2) Quarterly Consolidated Income Statement(3) Quarterly Consolidated Cash Flow Statement(4) Notes Regarding Assumption of Going Concern(5) Segment Information(6) Notes Regarding Significant Changes in Shareholder’s Equity81. Qualitative Information Regarding Quarterly Consolidated Earnings(1) Qualitative Information Regarding Consolidated Earnings
During the first quarter of the current fiscal year, the Japanese economy continued its gradual recovery on theback of progress inventory adjustments, brisk exports brought on by recoveries in overseas economies, and asubsequent improvement in production. However at the same time, uncertainties arising from highunemployment rates and the weak personal income environment continued to cast a shadow over consumer
spending.
The Kyoritsu Maintenance Group noted that there has been a shift in the seasonality of earnings, where we
traditionally saw a large portion of sales being booked during April and in the first quarter due to the start of the
fiscal year and a subsequent increase in tenant contracts. But a concentration of new tenant contracts occurring amonth early in March led to a shift of some of our earnings from the first to the fourth quarter. Furthermore thefirst quarter tends to be a weak period for earnings in general due also to the seasonally weak demand for ourhotel (resort hotel) business as the peak travel and resort season occurs during the months of July to September.
Against this backdrop we recorded a 1.215 billion yen or 6.1% year-over-year increase in sales to 21.216 billion
yen on the back of five newly opened hotels. However the shift in dormitory related sales and new hotel opening
costs caused our operating income to drop by 23.9% year-over-year to 997 million yen, and ordinary income tofall by 32.5% year-over-year to 682 million yen. And while these figures reflect a stronger performance than our
projections call for, we have decided to leave our earnings estimates unchanged due to the continuing
uncertainties in the overall economy. Furthermore we recorded a net loss of 28 million yen due to extraordinary
losses of 696 million yen arising from new accounting standards implemented from the first quarter of the current
fiscal year regarding the retroactive assets retirement.
We discuss our business performance in each of our business segments below.
(1.1) Dormitory BusinessIn our dormitory business, we saw a decline in sales and profits resulting from the shift in new dormitory resident
contracts from April to March and a shift in dormitory resident contracts for foreign exchange students from Juneto September, and despite the positive effects from alliances formed with new universities. Furthermore this shift
in new resident contracts from April to March is expected to increase in coming years. Consequently the numberof contracted dormitory residents rose by 501 to 28,173 at the end of June, but our sales and operating income fell
by 1.8% year-over-year to 10.497 billion yen and 13.2% year-over-year to 1.723 billion yen respectively.
(1.2) Hotel BusinessIn our hotel business, seven facilities opened in the previous term (Six Dormy Inns, one resort hotel) combinedwith one newly opened Dormy Inn and five other new facilities (Obihiro, Asahikawa, Nagasaki, Kyoto Station,and Shimonoseki) opened in the first quarter to raise our sales. With regards to profitability, while our strict costmanagement of each facility contributed to improvements in costs on a per facility basis, we incurred additionalcosts from the newly opened hotel facilities. Consequently our sales rose by 11.8% year-over-year to 6.719
billion yen, but we incurred an operating loss of 454 million yen (Compared with an operating loss of 543 million
yen in the same period of the previous year).
(1.3) Contracted Services BusinessIn our contracted services business, we saw a recovery in the capacity utilization rates in our rental building
services, which suffered cancelations of large contracts in the previous term. However lower rental fees andcomplimentary rental periods caused delays in the recovery in profitability of this segment. Therefore werecorded declines in sales of 1.2% year-over-year to 2.690 billion yen and we incurred an operating loss of 29
million yen.

9(1.4) Food Service Business
The difficult operating environment in our food service business continued due to the weak personal income
environment and subsequent stagnant consumption trends. Consequently we saw a 16.0% year-over-year decline
in sales to 949 million yen and an operating loss of 24 million yen.
(1.5) Construction Business
During the first quarter of the current fiscal year we saw a large amount of completions of business hotels.
Consequently we saw a large 179.0% year-over-year increase in sales to 1.661 billion yen, while we recorded a
71.2% year-over-year decline in operating income to 29 million yen.
(1.6) Other Business
Our other business is comprised of the wellness life (management of senior citizen housing), rental property
brokerage and management, life service (catalog and rental sales, insurance agency business), comprehensive
human resources, financing services and advertising agency services. In this segment we saw declines of 12.0%
and 54.1% year-over-year in sales and operating income to 1.076 billion yen and 38 million yen respectively.
(2) Qualitative Information Regarding Consolidated Financial Position
At the end of the first quarter of the current fiscal year, our total consolidated assets fell by 4.77 billion yen fromthe end of the previous fiscal year to 134.439 billion yen. The main reason for this decline was a decrease in cash
and equivalents.
Total consolidated liabilities at the end of the first quarter also fell by 4.488 billion yen from the end of theprevious fiscal year to 104.967 billion yen. We attribute this decline primarily to declines in notes and accounts
payable, and prepayments.
Net assets as of the end of the first quarter of the current fiscal year fell by 282 million yen from the end of theprevious fiscal year to 29.471 billion yen. A decline in retained earnings was the main factor contributing to thefall in net assets.
Consequently our equity ratio rose by 0.5% points from the end of the previous fiscal year to 21.7% as of the endof the first quarter.
(Cash Flow Conditions)
During the first quarter of the current fiscal year our cash and equivalents fell by 2.596 billion yen from the endof the previous fiscal year to 8.864 billion yen.
In our operating activities we saw a decline in net cash outflow of 1.646 billion yen year-over-year to 2.195
billion yen. We attribute this decline in outflow to lower income before taxes, accounts payable, andprepayments.
In our investing activities we saw a net outflow of 2.054 billion yen, an increase of 429 million yen from the net
outflow seen during the same period of the previous year. We attribute this outflow primarily to the acquisitionof securities, and tangible fixed assets in our dormitory and hotel businesses.
In our financing activities we saw a net inflow of 1.653 billion yen, a decline of 1.523 billion yen from the net
inflow recorded during the same period of the previous fiscal year. The main factor behind this inflow was anincrease in short term debt.

10

(3) Qualitative Information Regarding Consolidated Earnings Projections
With regards to our consolidated earnings projections, we have left our outstanding projections, which wereoriginally announced on May 14, 2010, unchanged.

2. Other Information(1) Changes in Important Subsidiaries
No changes(2) Overview of the Implementation of Simplified or Special Accounting Methods(1) Simplified Accounting Methods
1) Inventories Valuation Methods
A partial physical inventory, comprised of material items and sampling, was utilized for the valuation of
inventories. We have reduced the valuations for inventories where we have clear 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’sbusiness 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) 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 corporate taxes.
(3) Changes in Accounting Methods, Procedures, Presentation Methods
Application of new accounting standard for losses arising from asset retirement obligation
Beginning from the first quarter of the current fiscal year we have implemented the “Application Policyof Accounting Standards for Losses Arising from Asset Retirement Obligation” (Corporate AccountingStandards Application Policy Number 21, March 31, 2008) and “Accounting Standards for Losses
Arising from Asset Retirement Obligation” (Corporate Accounting Standards Number 18, March 31,2008).
In accordance with the implementation of these new accounting standards, both operating and ordinary
incomes have been reduced by 11 million yen and net income before taxes and other adjustments has
been reduced by 707 million yen.
In addition, we saw a change of 135 million yen resulting from the implementation of a new accounting
standard for asset retirement obligations.

111. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Units: Million Yen)
End 1Q FY3/11(June 30, 2010)

End FY3/10(March 31, 2010)

AssetsCurrent assets
Cash and deposits

9,997

12,594

Notes, accounts receivable

2,427

3,882

Real estate for sale

269

268

Uncompleted construction payment

372

999

5,007

5,404

-34

-44

18,04023,104

Buildings, structures

37,50333,174

Land

28,652

28,626

Others

16,10820,358

Total tangible fixed assets

82,264

82,159Others

3,853

3,848

Total intangible fixed assets

3,853

3,848

Investment securities

7,053

6,646

Guaranteed deposits

8,908

8,582

Security deposits

7,174

7,512

Others

7,214

7,431

Doubtful accounts reserves

-188

-198

30,161

29,972

116,279

115,980

Deferred assets

118

124

Total assets

134,439

139,209

Other
Doubtful account reserves
Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets

Investment, other assets

Total investments, other assets
Total fixed assets

12

(Units: Million Yen)
End 1Q FY3/11(June 30, 2010)

End FY3/10(March 31, 2010)

Liabilities
Current liabilities
Notes, accounts payable

1,724

3,846

Short term debt

22,286

17,937

95

581

8,683

11,932

Bonus reserves

159

623

Director bonus reserves

31

147

Completed construction guarantee reserves

1211

Unpaid taxes
Deposits

Construction work loss reserves

44

Others

6,139

6,414

Total current liabilities

39,136

41,499Bonds

19,035

19,385Long term debt

39,22841,264Retirement benefit reserves

1,216

1,199

Director retirement reserves

319

339

Fixed liabilities

Others

6,031

5,766

Total fixed liabilities

65,83067,956104,967

109,455

Capital

5,136

5,136

Capital surplus

5,943

5,943

Retained earnings

20,40320,704

Treasury stock-1,470-1,470Total shareholders’ equity

30,01230,313

Other marketable security valuation gains

-782

-795

Total valuation, translation gains

-782

-795

240

235

Total liabilities
Net assets
Shareholders’ equity

Valuation, translation gains

Minority interest
Total net assets

29,47129,753

Total liabilities, net assets

134,439

139,20913

(2) Quarterly Consolidated Income Statement(First Quarter Consolidated Income Statement)(Units: Million Yen)
1Q FY3/10(From April 1, 2009
to June 30, 2009)

1Q FY3/11(From April 1, 2010
to June 30, 2010)

Net sales

20,00021,216CGS

15,98917,513Gross income

4,011

3,703

SG&A

2,700

2,705

Operating income

1,310

997

Interest income

23

23

Dividend income

1518

Deposit redemption income

22

23

Subsidies received－

49

Others27

28

Total non-operating income

88

144

Interest payment

283

347

Others105

111

Total non-operating expense

389

459

1,010

682

Marketable securities sales profit

5－

Insurance policy refunds

1040

Doubtful accounts allowance reversal－

19

Others38

Total extraordinary income

1968Marketable securities valuation loss

236

52

Asset retirement obligation accountingchange loss－

696

Others

0

21

237

770

Net income before taxes

792

△19

Corporate, other taxes

419

△7

Non-operating income

Non-operating expense

Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary loss

14

Income before minority interests－△11

Minority interest income

14

16

357

△28

Net income15(3) Quarterly Consolidated Cash Flow Statement(Units: Million Yen)
1Q FY3/10(From April 1, 2009
to June 30, 2009)

1Q FY3/11(From April 1, 2010
to June 30, 2010)

Cash flows from operating activities
Net income before taxes, other adjustments

792

△19

Depreciation, amortization

936

1,048

Change in bonus reserves

△667

△463

Change in director bonus reserves

△158

△115

Interest, dividends received

△39

△42

Interest payments

283

347

Valuation gains in marketable securities

236－

Change in receivables

227

1,454

Change in accounts due

656

632

Change in inventories△1,995694

Change in payables△1,320△2,458Change in unpaid accounts

1,154

820

Change in prepayments received△2,106△3,249Change in unpaid consumption tax

△432

△126

Change in deposits

△939

△931

Change in security deposits

△103

－

Influence of asset retirement obligation accounting
implementation－

696

Others419

394△3,055△1,31833

38

Interest payments

△264

△345

Corporate tax

△556

△568

△3,842△2,195Acquisition of marketable securities

－

△607

Acquisition of tangible fixed assets

△990

△969

Acquisition of intangible fixed assets

△626

－

－

△477

SubtotalInterest, dividends received

Cash flow from operating activities
Cash flow from investing activities

Loans extended
Recovery of loans extended

257

397

Deposit, security deposit payments

△641

△707

Return of deposits, security deposits

593－

Refund from cancelled insurance policies

－

428

△218

△117

△1,625△2,054

OthersCash flow from investing activities

16

1Q FY3/10(From April 1, 2009
to June 30, 2009)

1Q FY3/11(From April 1, 2010
to June 30, 2010)

Cash flows from financing activities
Increase in short term debt

6,503

4,689

Repayment of long term debt

△5,336△2,376

Bond issuance

2,422

－

Bond redemption payment

△150

△400

Treasury stock acquisition△0△0

Dividend payment

△249

△243

Dividend payment to minority shareholders

△11

△9

－

△6

3,177

1,653

Net change in cash and equivalents△2,290△2,596

Cash and equivalents at term start

10,931

11,460Cash and equivalents at term end

8,641

8,864

OthersCash flows from financing activities

17(4) Assumptions Regarding Going Concern
Not applicable(5) Segment Information(Information Regarding Our Various Business Segments)
First Quarter of Fiscal Year March 2010 (From April 1, 2009 to June 30, 2009)
Food
Service

Construction

Other

Total

(Units: Million yen)Company
Consolidated
Wide

Dormitories

HotelsContracted
Services

10,657

5,969

1,826

515

245

786

20,000－20,000

31

42

898

613

350

437

2,374

(2,374)－

10,689

6,012

2,724

1,129

595

1,223

22,375(2,374)20,000

1,986

-543

75

-3

100

83

1,699

(388)

1,310

Sales
(1) External sales(2) Internal sales
Total
Operating income(Regional Sales Information)
During the first quarter of the previous fiscal year (From April 1, 2009 to June 30, 2009)
We do not have any overseas subsidiaries or offices and therefore we do not report any regional sales information.
(Overseas Sales)
During the first quarter of the previous fiscal year (From April 1, 2009 to June 30, 2009)
We do not have any overseas sales.

(Segment Information)
1. Overview of Segments Reported
Financial information relating to the individual divisions of our business segments is readily available, and ourmanagement considers the validity of these segments on a regular basis during their board of directors meetingsin assessing segment earnings and the allocation of business resources in accordance with these segments.
Our divisions and subsidiaries responsible for the various services within our Group are also responsible
developing both strategies and business activities for their respective businesses.
Therefore our segments are defined by the basic services provided by each of the divisions and subsidiaries anddivided into five main segments including “dormitories,” “hotels,” “contracted services,” “food services,” and“construction.”
Each of our segments is defined below.
Dormitories:
Dormitories provided to student and corporate employees, Dormier, management ofoutsourced dormitories
Hotels:Dormy Inn business hotels, resort hotels
Contracted Services:
Office building and residential property management services
Food Services:
Restaurant business, management of outsourced cafeteria and hotel restaurant facilities
Construction:
Planning, design and construction, real estate brokerage business, condominiums for
sale, other related services18

2. Sales, Profits and Losses according to Our Reported Business Segments
First Quarter of Fiscal Year March 2011 (From April 1, 2010 to June 30, 2010)
Contracted
Dormitories Hotels
Services

Food
Service(Units: Million yen)

Construction Subtotal Others

Total

Company
Consolidated
Wide

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

1,739

324

1,285

20,524692

21,216－

21,216

15

951

624

376

1,995

384

2,379

(2,379)－10,497 6,719

2,690

949

1,661

22,5191,076

23,595(2,379)21,216

-29

-24

29

1,243

38

1,282

(284)

997

10,470 6,704
27

1,723

-454

(Notes)1. “Others” business is no longer included amongst the segments for which we report detailed information, andis 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.
2. Company wide operating loss of 284 million yen includes eliminations for business between different
segments of 56 million yen, which offset the total company wide operating loss of 341 million yen.
3. The losses or income in each of our segments is taken into account and adjusted for at the operating income
level in our quarterly consolidated income statements.

3. Information about impairment loss on fixed assets and goodwill.
We do not note any significant changes.

(Additional Information)
Beginning from the first quarter of the current fiscal year we have implemented the “Application Policy of
Accounting Standards for Disclosure of Business Segment Information” (Corporate Accounting Standards
Application Policy Number 20, March 21, 2008) and “Accounting Standards for Disclosure of Segment
Information” (Corporate Accounting Standards Number 17, March 27, 2009).
(6) Significant Changes in Our Shareholders Equity
We do not note any significant changes.

19