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

Summary of Consolidated Financial Results for theFirst Quarter of the Fiscal Year Ending March 31, 2021
［JGAAP］
August 2020

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Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending
March 31, 2021 [based on Japanese GAAP]
August 7, 2020
Kyoritsu Maintenance Co., Ltd.
Listed exchange: Tokyo9616
URL https://www.kyoritsugroup.co.jp/(Title)President(Name) Takumi Ueda
(Title)Managing Director(Name) Koji Nakamura
Tel 03-5295-7778
Scheduled date of commencement of payment－
Scheduled date of submittal of Securities ReportAugust 11, 2020of dividends
Supplementary materials prepared concerning quarterly financial results: Yes
Name of listed company
Code
Representative
Contact

Briefing held on quarterly financial results: No(rounded down to the nearest million yen)
1.
Consolidated financial results for the first quarter of the term ending March 31, 2021 (April 1 – June 30, 2020)（1） Consolidated Operating Results（Cumulative）(Percentages indicate YoY changes)
Attributable to owners of
Net sales
Operating profit
Ordinary profit
the parent
Quarterly net income
Million yen%
Million yen%
Million yen%
Million yen%
1Q of term ending－－－
23,608-44.0-4,521-4,805-6,423
March 2021
1Q of term ended
42,169
14.3
3,154
23.7
3,019
24.8
2,077
32.1
March 2020(－%)
(Note) Comprehensive
1Q of term
-6,383 Million
1Q of term
1,795Million(12.8%)
incomeending Marchyen
ended March
yen
2021
2020

Quarterly net income per share

Diluted quarterly net income per share

Yen
Yen
－
1Q of term ending March 2021
-164.75－
1Q of term ended March 2020
53.29
Note: Diluted net income per share is omitted since there were no potentially dilutive shares last fiscal year, while this fiscal year theCompany recorded a quarterly net loss per share and there are no potentially dilutive shares.
（2） Consolidated financial position
Total assets

2.

Equity ratio

Net assets per share

Million yen％

Yen

231,426

76,67333.1

1,966.51

217,086

83,95438.7

2,153.24

1Q of term ending
March 2021
Fiscal year ended
March 2020
(Reference)
Shareholders’ equity

Net assets

Million yen

1Q of term ending
March 2021

76,673Fiscal year ended
March 2020

Million yen

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 endYear end

Total

Yen

Yen

Yen

Yen

Yen

－

22.00

－

23.00

45.00

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2

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Note: Revision from most recently announced dividends projections: None
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)
Despite a rebounding trend since June, due to the difficulty of making reasonable estimates at this stage since the effects of COVID19 remain unpredictable, projected financial results are to be determined. Projected financial results will be announced promptly assoon as it has become feasible to release them.

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* 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 12 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 (i) above: None
③ Changes in accounting estimates: None
④ Retrospective restatements: None
（4） Number of shares of stock issued and outstanding (common stock)①②③

Number of shares issued andoutstanding at the end of the period(including shares of treasury stock)
Number of shares of treasury stock at
the end of the period
Average number of shares during thequarter (cumulative through thequarter)

1Q of term ending
March 2021
1Q of term ending
March 2021
1Q of term ending
March 2021

39,218,826

shares228,974

shares38,989,881

sharesFiscal year ended
March 2020
Fiscal year ended
March 2020
1Q of term ended
March 2020

39,218,826

shares228,844

shares38,990,634

shares* 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 the conditions
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 7 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
1.

2.

Qualitative Information on Quarterly Results ……………………………………………………………………………

6（1） Explanation of Results …………………………………………………………………………………………………

6（2） Explanation of Financial State …………………………………………………………………………………………

7（3） Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information …………………………

7

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

8（1） Quarterly Consolidated Balance Sheet …………………………………………………………………………………

8（2） Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income ………

10

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

10

Quarterly Consolidated Statement of Comprehensive Income
First quarter consolidated cumulative period ………………………………………………………………………

11（3） Notes to the quarterly consolidated financial statements ………………………………………………………………

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

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

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

12(Segment information) …………………………………………………………………………………………………

12

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1.

Qualitative Information on Quarterly Results（1） Explanation of Results
During the first quarter consolidated cumulative period of this fiscal year, the slowing trend in Japan's economy strengthened
further as a result of the global novel coronavirus (COVID-19) pandemic. While economic activity resumed in stages after thedeclaration of a state of emergency was rescinded on May 25, future prospects remain uncertain due to concerns about asecond or third wave of the virus.
A look at the Group's performance shows that the Dormitory Business segment started the fiscal year somewhat down fromlast year, with an initial occupancy rate of 93.7%, due to factors such as postponement of international students' arrivals inJapan due to COVID-19. The Hotels Business segment, meanwhile, was down for the quarter as occupancy rates fell massively
in April and May due to decreased inbound tourism and lower demand for business travel and domestic leisure in response tostay-at-home orders, although the business did see a rebound in June. Some hotels and restaurants closed temporarily as part ofefforts to stop the spread of the virus.
As a result, a look at business performance in the first quarter consolidated cumulative period of this fiscal year shows net
sales of 23,608 million yen (down 44.0% YoY), an operating loss of 4,521 million yen (vs. income of 3,154 million yen in thesame period last year), an ordinary loss of 4,805 million yen (vs. income of 3,019 million yen in the same period last year), andquarterly net loss attributable to owners of the parent of 6,423 million yen (vs. income of 2,077 million yen in the same period
last year)
While business travel and domestic leisure demand was low in April and May, the hotel occupancy rate has shown a strong
recovery due to factors including the release of requests to refrain from traveling across prefectural borders in June and theintroduction of new Company products together with various tourism promotional campaigns conducted by prefectures. This
recovering trend has continued since July as well. Steady progress is being made toward a recovery while thoroughly
employing measures to prevent the spread of COVID-19. For example, the Japanese government has launched the "Go To"
travel campaign.
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.
As a result, net sales in this segment were 12,101 million yen (down 7.0% YoY) and its operating income was 1,579 million
yen (down 24.4% YoY).
The Dormitory Business is implementing a COVID-19 admissions program as part of efforts to provide economic support
for students residing in dormitories.
Hotel Business②

The Hotels Business segment experienced massive drops in occupancy rates in April and May due to dramaticallydecreased 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. Some sites also closed
temporarily as part of efforts to prevent the spread of the virus.
However, after the declaration of a state of emergency was rescinded on May 25, Dormy Inn's occupancy rate recovered
rapidly, and the number of domestic overnight guests in June had returned largely to the same level as in June of last year. In
addition, sales promotion for new products in the Resorts Business, such as taxi shuttle plans and plans exclusively for local
residents, which targeted domestic travelers, bore fruit. As a result, occupancy rates rose and unit prices per room returned
largely to the same levels as last year.
As a result of the above factors, net sales was 4,194 million yen (down 78.9% YoY) and operating loss was 5,610 million
yen (vs. income of 1,683 million yen in the first quarter of last year).
The recovering trend has continued since July as well, and a further recovery will be aimed at in the Hotels Business as awhole, including taking advantage of the "Go To" travel campaign.
③

Comprehensive Building Management BusinessIn the Comprehensive Building Management Business segment, net sales were 3,498 million yen (down 11.9％ YoY) andoperating profit was 53 million yen (down 41.7％ YoY), reflecting factors such as lower hotel occupancy and decreases incleaning work due to temporary closure of businesses.
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④

Food Service Business

Due to the effects of factors such as reduced hotel restaurant operations as a result of the COVID-19 pandemic and temporary
closure of restaurants as part of efforts to prevent the spread of the virus, the Food Service Business recorded net sales of 677
million yen (down 61.2％ YoY) and an operating loss of 16 million yen (vs. income of 50 million yen in the first quarter oflast year).
Development BusinessIn the Development Business segment, while net sales grew 6.2％ YoY to 4,409 million yen due to factors including growthin construction projects, segment operating income was down 20.2％ YoY to 155 million yen as a result of a lack of real⑤

estate securitization transactions during the period and other factors.
⑥

Other Businesses
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 for people who live alone, the insurance agency business, comprehensive human-resource services, the financial
business, and the administrative outsourcing business. Thanks to factors including steady improvements in earnings of the
PKP Business, net sales in this segment were 3,783 million yen (up 9.7％ YoY) and its operating income was 118 million
yen (up 1,232.6％ YoY).

（2） Explanation of Financial State(Assets)
Total assets at the end of the first quarter of this consolidated fiscal year stood at 231,426 million yen, up 14,340 million
yen from the end of the previous consolidated fiscal year. Main causes of this increase included growth in cash and deposits
intended to secure necessary funds.
(Liabilities)
Liabilities at the end of the first quarter of this consolidated fiscal year stood at 154,752 million yen, up 21,621 million
yen from the end of the previous consolidated fiscal year. Main causes of this increase included growth in short-term loans
payable and long-term loans payable.
(Net assets)
Net assets at the end of the first quarter of this consolidated fiscal year stood at 76,673 million yen, down 7,280 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 5.6 percentage points from the end of the previous consolidated fiscal year, to 33.1%.

（3） Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information
Despite a rebounding trend since June, due to the difficulty of making reasonable estimates at this stage since the effects of
COVID-19 remain unpredictable, projected financial results are to be determined. Projected financial results will be announced
promptly as soon as it has become feasible to release them.

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2.

Quarterly Financial Statements and Major Notes（1） Quarterly Consolidated Balance Sheet(Unit: millions yen)First quarter consolidated
Previous consolidated fiscal year
accounting period of this fiscal year
(March 31, 2020)(June 30, 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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18,303
11,057211
11,518
256
9,290
-46
50,59030,266
9,927
186
11,299
153
9,350
-48
61,13547,60744,50913,805
3,527
109,450
3,918

47,51345,453
14,813
3,771
111,551
3,866

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

4,011
17,45816,367
16,648-183
54,303
169,721570
231,426

(Unit: millions yen)First quarter consolidated
Previous consolidated fiscal year
accounting period of this fiscal year
(March 31, 2020)(June 30, 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
Provision for loss on store closing
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Provision for directors' retirement benefits
Provision for point card certificates
Other
Total noncurrent liabilities
Total liabilities
Net assets
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

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10,124
12,0349,840
27,481

5,280

5,280

19,992

19,992

1,900
2,103
404
9
6
－
19,22571,080

1,420
217
28
9
6
180
19,62684,08233,82021,922
1,140
251
0
4,915
62,050133,131

33,32030,980
1,163
251
0
4,954
70,670154,752

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

7,961
12,81756,961-355
77,385

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

-87
-590
-34
-711
76,673
231,426

（2） Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Income Statement)(First quarter consolidated cumulative period)(Unit: millions yen)First quarter consolidated cumulative First quarter consolidated cumulative
period of the previous fiscal year
period of this fiscal year
(From April 1, 2019 to June 30, 2019) (From April 1, 2020 to June 30, 2020)
Sales
Cost of sales
Gross profit (loss)
Selling, general, and administrative expenses
Operating income (loss)
Non-operating income
Interest
Dividend income
Subsidy income
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
Total extraordinary income
Extraordinary loss
Losses from temporary closures etc.
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 toowners of the parent

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42,16932,997
9,172
6,018
3,154

23,60824,121-512
4,008-4,521

18
32
2
31
84

18
28
46
76
170

86

103

－

214

133
219
3,019

135
454
-4,805

217
217

－
－

－
5
－
5
3,231
1,153
2,077

2,886
－
321
3,208
-8,013-1,590-6,423

2,077-6,423(Quarterly consolidated statement of comprehensive income)(First quarter consolidated cumulative period)(Unit: millions yen)First quarter consolidated cumulative
period of the previous fiscal year
(From April 1, 2019 to June 30, 2019)

First quarter consolidated cumulative
period of this fiscal year
(From April 1, 2020 to June 30, 2020)

2,077-6,423

-174

30

-106
-1
-282
1,795

7
2
39
-6,383

1,795-6,383

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 to owners of parent

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（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 first 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
First quarter consolidated cumulative period of the previous fiscal year
1.

(April 1 – June 30, 2019)

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

Total

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

Dormitory

Hotel

Comprehensive
building
management

Food
service

Development

Total

12,934

19,840

1,676

359

4,058

38,8693,300

42,169－42,169

81

33

2,296

1,388

91

3,892

148

4,040

-4,040－Total

13,016

19,874

3,972

1,747

4,149

42,761

3,448

46,210-4,04042,169Segment profit orloss (-)

2,088

1,683

91

50

195

4,108

8

4,117

-963

3,154

Sales
Net sales to externalcustomers
Internal sales ortransfers between
segments

Notes:1. Other business segments consist of the following businesses not included in other reporting segments: the SeniorLife 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, and the administrative outsourcing
business.
2. The adjustment amount of -963 million yen on segment profit (loss) reflects -63 million yen in cancellation ofinter-segment transactions and -899 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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First quarter consolidated cumulative period of this fiscal year (April 1 – June 30, 2020)

II
1.

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

Dormitory

Hotel

Comprehensive
building
management

Food
service

Development

12,014

4,179

1,406

93

2,260

19,955

3,653

23,608－23,608

86

15

2,091

584

2,148

4,926

130

5,056

-5,056－

Total

12,101

4,194

3,498

677

4,409

24,881

3,783

28,665-5,056

23,608Segment profit orloss (-)

1,579-5,610

53

-16

155

-3,839118-3,720-800-4,521

Total

Total

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

Sales
Net sales to externalcustomers
Internal sales ortransfers between
segments

Notes:1. Other business segments consist of the following businesses not included in other reporting segments: the SeniorLife 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, and the administrative outsourcing
business.
2. The adjustment amount of -800 million yen on segment profit (loss) reflects -169 million yen in cancellation ofinter-segment transactions and -631 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－13－