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

Summary of Consolidated Financial Results for theThird Quarter of the Fiscal Year Ending March 31, 2021

［JGAAP］
February 2021

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1

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Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending
March 31, 2021 [based on Japanese GAAP]
February 9, 2021
Name of listed company

Kyoritsu Maintenance Co., Ltd.

Code

9616

Listed exchange: Tokyo
URL https://www.kyoritsugroup.co.jp/

Representative(Title) President
Contact(Title) Managing Director
Scheduled date of submittal of Securities Report
Scheduled date of commencement of payment of dividends(Name) Takumi Ueda
(Name) Koji Nakamura
February 12, 2021－

Tel +81-3-5295-7778

Supplementary materials prepared concerning quarterly financial results: Yes
Briefing held on quarterly financial results: No(rounded down to the nearest million yen)
1.
Consolidated financial results for the third quarter of the term ending March 31, 2021 (April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results (Cumulative)(Percentages indicate YoY changes)
Attributable to owners of the
Net sales
Operating profit
Ordinary profit
parent Quarterly net income
Million yen%
Million yen%
Million yen%
Million yen%
Q3 of term ending－－－
91,343-31.4-3,744-3,753-7,653
March 2021
Q3 of term ended
133,097
7.4
12,222
1.5
12,149
3.3
8,184
2.6
March 2020
(Note) Comprehensive income

Q3 of term ending
March 2021

-7,540Quarterly net income per share

Q3 of term ended
March 2020(－%)

Million yen

8,051

Million yen(3.5%)

Diluted quarterly net income per share

Yen
Yen
－
Q3 of term ending March 2021
-196.29－
Q3 of term ended March 2020
209.91
Note: Diluted net income per share is omitted since there were no potentially dilutive shares last fiscal year, while this fiscal year
the Company recorded a quarterly net loss per share and there are no potentially dilutive shares.
Consolidated financial position
Total assets
Million yen
As of Dec. 31, 2020
229,040
As of Mar. 31, 2020
217,086(2)(Reference)
Shareholders’ equity
2.

As of Dec. 31, 2020

75,130Net assets
Million yen
75,13083,954Equity ratio

Million yen

As of Mar. 31, 2020

Net assets per share
Yen
1,926.90
2,153.24

%
32.8
38.7

83,954

Million yen

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

Q2 endQ3 end

Yen

Yen

Yen

Year end
Yen

－

22.00

－

23.00

45.00

－

10.00

－
－

－

Note: Revision from most recently announced dividends projections: None

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2

－

Total
Yen

3.

Consolidated Forecast financial results for the fiscal year ending March 2021 (April 1, 2020 to March 31, 2021)(Percentages represent rates of change from the previous year)
Net income
Net profits per
Net sales
Operating profit
Ordinary profit
attributable to owners
shareof the parent
MillionMillionMillionMillion
%
%
%
%
Yen
yen
yen
yen
yen
－
－
－
Full business year
132,000-22.2-3,000-3,000-6,800-174.40(Note) Have the most recently announced earnings forecast been revised Y/N? None.

*Notes(1) Change in major subsidiaries during the quarter under review (changes in specified subsidiaries involving a change in thescope of consolidation): None
(2)

Application of special accounting procedures in the preparation of quarterly consolidated financial statements: Yes
Note: For details, see “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to quarterly consolidated
financial statements (Application of special accounting procedures in the preparation of quarterly consolidated
financial statements)” on page 11 of the attached materials.

(3)

Changes in accounting policies, changes in accounting estimates, and retrospective restatements① Changes in accounting policies due to revision of accounting standards, etc.: None
② Changes in accounting policies other than those under  above: None
③ Changes in accounting estimates: None
④ Retrospective restatements: None(4)

Number of shares of stock issued and outstanding (common stock)
Number of shares issued andoutstanding at the end of the period(including shares of treasury stock)

As of Dec. 31, 2020

39,219,653

shares

As of Mar. 31, 2020

39,218,826

shares②

Number of shares of treasury stock at
the end of the period

As of Dec. 31, 2020

229,306

shares

As of Mar. 31, 2020

228,844

shares③

Average number of shares during thequarter (cumulative through thequarter)

38,990,303

shares38,990,401

shares①

Q3 of term ending
March 2021

Q3 of term ending
March 2020

* This summary of quarterly financial statements is exempt from quarterly review procedures by a certified public accountant orauditors.
*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. For theconditions forming the assumptions on which forecasts of results are based and notes on use of forecasts of results, see “1.
Qualitative Information on Quarterly Results; (3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking
Information” on page 6 of the attached materials.
(How to obtain supplementary materials on quarterly financial results)
Supplementary materials on quarterly financial results are posted to the Company website.

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○Table of contents for attached materials
Qualitative Information on Quarterly Results……………………………………………………………………………

5(1)

Explanation of Results…………………………………………………………………………………………………

5(2)

Explanation of Financial State…………………………………………………………………………………………

6(3)

Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information.…………………………

6

Quarterly Financial Statements and Major Notes…………………………………………………………………………

7(1)

Quarterly Consolidated Balance Sheet…………………………………………………………………………………

7(2)

Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income………

9

1.

2.

Quarterly Consolidated Income Statement
Third quarter consolidated cumulative period……………………………………………………………………

9

Quarterly Consolidated Statement of Comprehensive Income(3)

Third quarter consolidated cumulative period……………………………………………………………………

10

Notes to the quarterly consolidated financial statements………………………………………………………………

11(Notes on the going concern assumption) ………………………………………………………………………………

11(Notes concerning any notable changes in shareholders' equity) ………………………………………………………

11(Application of special accounting procedures in the preparation of quarterly consolidated financial statements) ……

11(Segment information) …………………………………………………………………………………………………

11

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1.

Qualitative Information on Quarterly Results(1)

Explanation of Results
Japan's economy during this third quarter consolidated cumulative period experienced increasing downward pressure due tothe massive impact of the global spread of COVID-19. While there were signs of an economic recovery as economic activities
resumed in stages after the state of emergency in Japan was released on May 25, 2020, as the virus began to spread again in
December the future outlook became increasingly uncertain, as for example various restrictions on activities were strengthened.
The Group's Dormitory Business started the year down slightly, with an initial occupancy rate of 93.7%, as a result of factors
such as international students from abroad postponing their arrivals in Japan due to COVID-19. Despite factors such as a dramatic
decrease in inbound tourism, the pace of recovery in the Hotel Business began to accelerate in June and later as domestic demand
started to rise and the "Go To Travel Campaign" had a positive effect. Despite some effects of the new wave of COVID-19 in
December, in the third quarter consolidated accounting period of this fiscal year the Group as a whole continued its recovering
trend, which improved further from the second-quarter recovery that followed the losses recorded in the first quarter.
As a result of the above factors, operating results in this third quarter consolidated cumulative period show net sales of 91,343
million yen (down 31.4%YoY), operating loss of 3,744 million yen (vs. income of 12,222 million yen in the same period of lastyear and income of 742 million yen in the third quarter consolidated accounting period of this fiscal year), and ordinary loss of
3,753 million yen (vs. income of 12,149 million yen in the same period of last year and income of 733 million yen in the third
quarter consolidated accounting period of this fiscal year). After reviewing our business and to further consolidate our businessstructure with future growth in mind, we have shut down one of our South Korean operations and the ‘global cabin’ (simplified
hotel chain). Due to factors such as the accompanying extraordinary loss, quarterly net loss attributable to owners of the parent
was 7,653 million yen (vs. income of 8,184 million yen in the same period of last year and income of 203 million yen in the third
quarter consolidated accounting period of this fiscal year).
While recent developments such as the reinstitution of a state of emergency in response to COVID-19 are having a notinconsiderable impact, we are implementing thorough measures to stop the spread of the virus and steadily securing funding tomeet expected needs. The entire Group will continue working together as one to move forward steadily as hard as we canwithout succumbing to this difficult challenge.
Segment business performance is reviewed below.
Dormitory BusinessIn the Dormitory Business segment, while a total of fourteen new dormitories (with 1,095 rooms) opened in April, effects①

of COVID-19 such as postponement of international students' arrivals and decreased demand for new-employee training led
to an initial occupancy rate of 93.7% (down 5.0 points YoY) in the Dormitory Business segment as a whole. Subsequently,
some companies have started training their new employees with staggered timing and some in-person classes for university
students have resumed at universities. However, restoring the number of international students coming into Japan will takesome time and no recovery in this area is yet emerging, following the negative occupancy at the start of the period.
As a result, net sales in this segment were 34,327 million yen (down 7.3% YoY) and its operating income was 3,489
million yen (down 36.2% YoY).
As part of efforts to provide economic support to students residing in dormitories in response to COVID-19, we havebegun accepting applications for "the COVID-19 school support program" of interest-free loans for dormitory costs and "thesingle-occupant support program" that enables young people starting new careers and students searching for employment tolive in dormitories at special rates.
Hotel Business
The Hotels Business segment experienced massive drops in occupancy rates in April and May due to dramatically②decreased inbound tourism and lower demand for business travel and domestic leisure in response to domestic calls torefrain from going out or traveling except in necessary and urgent cases, in response to COVID-19. Since June, however,usage rates have rapidly recovered thanks to the “Go To Travel Campaign” and other measures implemented by national andlocal governments, as well as our new products, including measures to combat COVID-19 infections.
The occupancy rate in the Dormy Inn Business shows a recovering trend on a nationwide average basis, although sometime will be needed before rates to recover in major urban areas such as Osaka that had depended on large numbers of
inbound guests. The number of domestic guests has been up YoY since September. Together with aiming for a swift
recovery, we will continue promoting sales of new products such as "tomareru office" plans for teleworking where you canstay overnight, which include hot-spring accommodations and meals, and residential hotel plans for long-term stays, in
response to COVID-19.
In the Resorts Business, in addition to the effects of the "Go To Travel Campaign," sales promotion efforts for new－

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products, such as lodging plans targeting domestic travelers that include round-trip taxi transportation, have borne fruit, andeven though the "Go To Travel Campaign" was suspended temporarily at the end of the year in response to the new wave of
COVID-19 cases, the recovering trend has continued from the second quarter, and unit prices per room were up YoY.
As a result of the above factors, net sales were 36,278 million yen (down 42.6% YoY) and operating loss was 6,392
million yen (vs. income of 7,400 million yen in the same period of last year).
Comprehensive Building Management Business③

In the Comprehensive Building Management Business, factors such as partial delays and decreases in remodelingconstruction work led to net sales of 11,420 million yen (down 6.3% YoY) and operating income of 274 million yen (down
20.3% YoY).
Food Service Business
The effects of the COVID-19 pandemic on the Food Service Business included decreased operation of hotel restaurants④

and temporary closure of restaurants to stop the spread of the virus. As a result, this business's net sales were 4,146 million
yen (down 25.8% YoY) and its operating income was 22 million yen (down 82.0% YoY).
Development Business⑤

Development Business net sales were 8,994 million yen (down 43.4% YoY), while operating income was 355 million yen(down 67.8% YoY), mainly because the Company did not securitize real estate during this period.
Other Businesses⑥

The Company's other business segments consist of the Senior Life Business (management and operation of seniorresidences), the Public Kyoritsu Partnership (PKP) Business (services provided under contract to local governments),
support business for people who live alone, the insurance agency business, comprehensive human-resource service business,
the financial business, and the administrative outsourcing business. Thanks to factors including steady improvements inearnings of the Senior Life Business and the PKP Business, net sales in this segment were 11,573 million yen (up 14.8%
YoY) and its operating income was 565 million yen (up 54.9% YoY).

(2) Explanation of Financial State(Assets)
Total assets at the end of the third quarter of this consolidated fiscal year stood at 229,040 million yen, up 11,954 million yen
from the end of the previous consolidated fiscal year. Main causes of this increase included growth in notes and accounts
receivable-trade, real estate for sale, and construction in progress.
(Liabilities)
Liabilities at the end of the third quarter of this consolidated fiscal year stood at 153,910 million yen, up 20,778 million yen
from the end of the previous consolidated fiscal year. This was due mainly to factors such as an increase in short-term loans
payable.
(Net assets)
Net assets at the end of the third quarter of this consolidated fiscal year stood at 75,130 million yen, down 8,824 million yen
from the end of the previous consolidated fiscal year. Main causes of this decrease included a reduction in retained earnings.
As a result, the equity ratio fell by 5.9 percentage points from the end of the previous consolidated fiscal year, to 32.8%.

(3)

Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information.

Our full-year earnings forecast for the fiscal year ending March 2021 is unchanged at present from the forecast announced
November 9, 2020, since although currently the recovering trend from the second quarter is continuing future prospects are
uncertain due to the impact of the reinstitution of a state of emergency in response to COVID-19 on January 7, 2021, its
subsequent extension, and other factors.
If there is a need for any revisions to the forecast as a result of any future developments that could impact Group results,
including the state of COVID-19, they will be announced promptly.
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2.

Quarterly Financial Statements and Major Notes(1)

Quarterly Consolidated Balance Sheet(Unit: million yen)
Third quarter consolidated
Previous consolidated fiscal year
accounting period of this fiscal year
(March 31, 2020)(December 31, 2020)

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
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Guarantee deposits
Lease deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Deferred assets
Total assets

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7

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18,303
11,057211
11,518
256
9,290
-46
50,59019,187
13,377
11,055
3,008
307
9,120
-51
56,00547,60744,50913,805
3,527
109,450
3,918

47,01545,916
18,247
3,561
114,741
3,900

4,761
17,337
16,226
14,394-184
52,535
165,904591
217,086

4,299
16,336
16,444
16,971-184
53,866
172,508527
229,040

(Unit: million yen)
Third quarter consolidated
Previous consolidated fiscal year
accounting period of this fiscal year
(March 31, 2020)(December 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds to be redeemed within a
year
Convertible bonds with stock options planned forredemption within one year
Income taxes payable
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
Long-term loans payable
Provision for directors' retirement benefits
Provision for point card certificates
Net defined benefit liability
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

－

8

－

10,124
12,034

8,835
31,907

5,280

5,280

19,992

19,987

1,900
2,103
404
9
6
19,22571,080

1,410
334
88
0
0
19,53087,37633,82021,922
251
0
1,140
4,915
62,050133,131

30,68029,152
252
0
1,215
5,233
66,533
153,910

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

7,964
12,82055,342-356
75,769

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

-33
-575
-30
-639
75,130229,040

(2)Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Income Statement)(Third quarter consolidated cumulative period)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income (loss)
Non-operating income
Interest
Dividend income
Subsidy income
Settlement payment received
Other
Total non-operating income
Non-operating expenses
Interest expenses
Costs of responding to novel infectious diseases
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of investment securities
Subsidy income
Other
Total extraordinary income
Extraordinary loss
Losses from temporary closures etc.
Loss from stores closing
Loss from disasters
Loss on valuation of golf club membership
Other
Total extraordinary loss
Quarterly net income (loss) before taxes
Income taxes
Quarterly net income (loss)
Quarterly net income (loss) attributable to owners of
the parent(Unit: million yen)
Third quarter consolidated cumulative
Third quarter consolidated
period of the previous fiscal year
cumulative period of this fiscal year
(From April 1, 2019 to(From April 1, 2020 to
December 31, 2019)
December 31, 2020)
133,097
91,343
103,431
81,123
29,665
10,22017,443
13,964
12,222-3,744

－

9

－

56
85
15
80
169
407

57
52
655
－
258
1,022

259
－
220
480
12,149

339
421
270
1,031
-3,753

217
－
2
219

－
153
－

－
－
23
5
－
28
12,340
4,155
8,184

2,886
2,145
－
－
43
5,074
-8,674-1,021-7,653

8,184-7,653153

(Quarterly consolidated statement of comprehensive income)(Third quarter consolidated cumulative period)

Quarterly net income (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of parent(Unit: million yen)
Third quarter consolidated cumulative
Third quarter consolidated
period of the previous fiscal year
cumulative period of this fiscal year
(From April 1, 2019 to(From April 1, 2020 to
December 31, 2019)
December 31, 2020)
8,184-7,653

－

10

－

-46

83

-81
-4
-132
8,051

21
6
112
-7,5408,051-7,540(3)Notes to the quarterly consolidated financial statements(Notes on the going concern assumption)
Not applicable(Notes concerning any notable changes in shareholders' equity)
Not applicable(Application of special accounting procedures in the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
Tax expenses have been calculated through reasonable estimation of the effective tax rate after application of tax-effectaccounting to net income before taxes for the consolidated fiscal year including this third quarter and multiplication of thisestimated effective tax rate by quarterly net income before taxes. However, where it would be highly unreasonable to estimate
tax expenses using this estimated effective tax rate, the statutory effective tax rate has been used.
(Segment information)[Segment information]
I.
Third quarter consolidated cumulative period of the previous fiscal year (April 1, 2019 to December 31, 2019)1.

Information on amounts of net sales and profit (loss) by reporting segment(Unit: million yen)
Reporting segment
Other
Notes: 1.

Total

Amount shownon quarterly
Adjustment
consolidated
amountincomeNotes: 2.
statement
Notes: 3.

Comprehensi
ve building
management

Food
service

Development

Total

63,059

5,507

1,066

17,002

123,434

9,662

133,097－

133,097

245

112

6,681

4,518

-1,102

10,454420

10,874-10,874－

Total

37,04563,171

12,1885,584

15,899133,889

10,082

143,972-10,874

133,097

Segment profit or loss
(-)

5,466

7,400

344

123

1,104

14,439364

14,804-2,582

12,222

DormitoryHotel

Net sales to externalcustomers

36,800Internal sales ortransfers between
segments

Net sales(Note) 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 business for people who live alone, the insurance agency
business, comprehensive human-resource service business, the financial business, and the administrative outsourcing
business.
2. The adjustment amount of -2,582 million yen on segment profit (loss) reflects -211 million yen in cancellation ofinter-segment transactions and -2,370 million yen in companywide costs not allocated to reporting segments.
Companywide costs refer mainly to costs related to administrative sections such as the head office Accounting
Division.
3. Segment profit (loss) has been adjusted against operating income on the quarterly consolidated income statement.
2.

Information on impairment loss, goodwill, etc. for fixed assets by reporting segment
Not applicable

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11

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Third quarter consolidated cumulative period of this fiscal year (April 1, 2020 to December 31, 2020)

II.
1.

Information on amounts of net sales and profit (loss) by reporting segment(Unit: million yen)
Reporting segment
Other
Notes: 1.

Total

Amount shownon quarterly
Adjustment
consolidated
amountincomeNotes: 2.
statement
Notes: 3.

Comprehensi
ve building
management

Food
service

Development

36,208

5,180

518

4,140

80,126

11,216

91,343－

91,343

247

69

6,239

3,628

4,854

15,039357

15,396-15,396－

Total

34,32736,278

11,420

4,146

8,994

95,166

11,573

106,740-15,396

91,343

Segment profit or loss
(-)

3,489

-6,392

274

22

355

-2,252565-1,686-2,057-3,744

DormitoryHotel

Net sales to externalcustomers

34,079Internal sales ortransfers between
segments

Total

Net sales(Note) 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 business for people who live alone, the insurance agency
business, comprehensive human-resource service business, the financial business, and the administrative outsourcing
business.
2. The adjustment amount of -2,057 million yen on segment profit (loss) reflects -325 million yen in cancellation ofinter-segment transactions and -1,731 million yen in companywide costs not allocated to reporting segments.
Companywide costs refer mainly to costs related to administrative sections such as the head office Accounting
Division.
3. Segment profit (loss) has been adjusted against operating loss on the quarterly consolidated income statement.
2.

Information on impairment loss, goodwill, etc. for fixed assets by reporting segment
Not applicable－12－