Kyoritsu Maintenance Co., Ltd.

(Securities Code: 9616)

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal YearEnding March 31, 2022
［JGAAP］
Feb 20221

Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending
March 31, 2022 [based on Japanese GAAP]
Feb 9, 2022
Listed exchange: Tokyo

Name of listed company
Kyoritsu Maintenance Co., Ltd.
Code
9616
URL https://www.kyoritsugroup.co.jp/
Representative(Title)President(Name) Koji Nakamura
Contact(Title)Managing Director(Name) Manabu Takaku
Scheduled filing date of Quarterly Report:
Feb 14, 2022
Scheduled date of start of dividend payment:
Supplementary materials for the quarterly financial results: Yes
Investor conference for the quarterly financial results: None

Tel +81-3-5295-7778(Rounded down to the nearest million yen)

1.

Consolidated financial results for the first nine months of the fiscal year ending March 31, 2022 (April 1, 2021 to December 31,
2021)(1) Consolidated Operating Results(Percentage figures represent year-over-year changes)

Net sales

The nine months ended December 31,
2021
The nine months ended December 31,
2020(Note) Comprehensive income:Operating profit

Profit (loss)
attributable to ownersof parent

Ordinary profit

Millionyen%

Million yen%

Millionyen%

Millionyen%

105,066

15.0-5,253－-4,871－-3,930－91,343-31.4-3,744－-3,753－-7,653－The nine months ended December 31, 2021: -3,929 million yen (–%)
The nine months ended December 31, 2020: -7,540 million yen (–%)

Profit (loss)
per share

Diluted net income
per share
Yen

Yen

The nine months ended December 31,
2021-100.82–

The nine months ended December 31,
2020-196.29–(Note) Diluted net income per share is omitted since the Company recorded net loss per share for this period and there are no potentiallydilutive shares(2) Consolidated financial position
Total assets

Net assets per share%Yen

240,529

66,06527.5

1,694.44

239,032

70,78429.6

1,815.45

As of March 31, 2021

2.

Equity ratio

Million yen

As of December 31, 2021
(Reference) Shareholders’ Equity:

Total net assets

Million yen

As of December 31, 2021: 66,065 million yen As of March 31, 2021: 70,784 million yen

Dividends
Annual dividends
Q2 endQ3 endQ1 endYear ended March 31,
2021
Year ending March
31, 2022
Year ending March
31, 2022 (Forecast)Year end

Total

Yen

Yen

Yen

Yen

Yen

－

10.00

－

10.00

20.00

－

10.00
－

10.00

20.00

－

(Note) Revision from most recently announced dividends forecasts: None3.

Forecasted consolidated results for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)(Percentage figures represent year-over-year changes)

Net sales

Full Year

Operating profit

Net income
attributable toownersof the parent

Ordinary profit

Net income pershare

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

173,000

42.6

2,000

－

1,900

－

100

－

2.56

(Note) Revision from most recently announced earnings forecasts: None2

*Notes(1) Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in thescope of consolidation): None
(2) Application of special accounting treatment in the preparation of the quarterly consolidated financial statements: Yes(Note) For details, please see “(3) Notes on Quarterly Consolidated Financial Statements, (Application of special accounting
procedures in the preparation of quarterly consolidated financial statements)” under “2. Quarterly Financial Statements andMajor Notes” on page 11.
(3) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards, etc.:

Yes(ii) Changes in accounting policies other than those under (i) above:(iii) Changes in accounting estimates:

None
None

(iv) Retrospective restatements:

None(4) Number of issued shares (common stock)(i) Number of issued shares at the end of
the period (including treasury shares)(ii) Number of treasury shares at the endof the period(iii) Average number of shares
during the period

As of December
31, 2021

39,219,818 Year ended
shares March 31, 2021

39,219,818
shares

As of December
31, 2021

230,237 Year ended
Shares March 31, 2021

229,475
shares

As of December
31, 2021

38,990,010 As of December 31,
shares 2020

38,990,303
shares*Summaries of financial results are not subject to auditing by a certified public accountant or auditing firm.
*Explanation of the appropriate use of earnings forecasts and other special notes(Note concerning forward-looking statements)
The forward-looking statements, including earnings forecasts and other future projections contained in this document are basedon information available to the Company at the time of preparation and on certain assumptions deemed reasonable by theCompany. As such, they do not constitute an assurance that the Company promises to achieve these projected results. Actual
business results may differ materially from the forecasts due to various factors.
Please see “(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information” under“1.Qualitative Information on Quarterly Results” on page “6” for the assumptions used for the forecast of financial results andnotes concerning the use of the forecast of financial results.
(How to obtain supplementary materials of financial results)
Supplementary materials of quarterly financial results are posted on the Company website.

3

Table of contents for attatched materials
1.Qualitative Information on Quarterly Results......................................................................................................................................... 5(1) Explanation of Operating Results .................................................................................................................................................... 5(2) Explanation of Financial Position .................................................................................................................................................... 6(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information ......................................................... 6
2. 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(Quarterly Consolidated Income Statement) ..................................................................................................................................... 9(Nine Months Ended December 31, 2021) ........................................................................................................................................ 9(Quarterly consolidated statement of comprehensive income) ........................................................................................................ 10(Nine Months Ended December 31, 2021) ...................................................................................................................................... 10(3) Notes on 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(Changes in accounting policies) ..................................................................................................................................................... 11(Additional information) ................................................................................................................................................................. 12(Segment Information etc.) .............................................................................................................................................................. 124

1.Qualitative Information on Quarterly Results(1) Explanation of Operating Results
During the first nine months of the current fiscal year, the Japanese economy gradually resumed business activities following thelifting of priority measures to prevent the spread of COVID-19 and state of emergency, but the future of the economy became
uncertain due to the increase in the number of infected people at the end of last year.
Under these circumstances, the Group continued to take extensive measures to prevent the spread of infection (such astemperature checks, disinfection, photocatalysis, and non-contact measures) at all Group offices so that customers can use thefacilities safely. In addition, as the financial support for dormitory residents, the Group has continued to implement the “Programto Support School Attendance under COVID-19 (interest-free loans for dormitory fees), ” etc. In addition, the Group has beenworking to save costs by utilizing support systems such as Employment Adjustment Subsidy, etc. As a sales initiative, the Group
has also been working to strengthen sales of new services such as "WORK PLACE DORMY (offices and hotels where people
can stay and reside)," which responds to new ways of working, and a comprehensive membership program "Kyoritsu General
Corporate Membership Program: Shiki Club," which is designed to be used for expanding welfare services.
As a result, results for the first nine months of the current fiscal year show net sales of 105,066 million yen (up 15.0% YoY). The
third quarter of the current fiscal year returned to profitability, and then, for the first nine months of the current fiscal year,
operating loss was 5,253 million yen (vs. operating loss of 3,744 million yen in the same period of the previous year); ordinary
loss was 4,871 million yen (vs. ordinary loss of 3,753 million yen); and loss attributable to owners of parent was 3,930 million
yen (vs. loss of 7,653 million yen). In the previous year, the Company temporarily closed hotels and restaurants in response to
the request for closure due to the declaration of a state of emergency. And the Company posted that resulting profit and loss as
extraordinary income (loss). However, after reclassifying them into the ordinary accounts, the operating loss and ordinary loss
improved by 1,380 million yen and by 1,771 million yen YoY, respectively.
Although the outlook for the future remains uncertain due to the increase in the number of COVID-19 cases, the Company willcontinue to make group-wide concerted efforts to recover its business performance, including the revitalization of real estate.
Segment business performance is reviewed below.
(i) Dormitory BusinessIn the Dormitory Business, the occupancy rate at the beginning of the fiscal year decreased by 1.6 percentage points fromthe previous year to 92.1% due to the postponement of foreign students' arrival in Japan and the cancellation of training
programs for new employees. However, due to the effect of increased revenue from new openings (12 offices, 1,204 rooms)
and newly commissioned offices, etc, net sales were largely on par with the same period of the previous fiscal year.
As a result, net sales amounted to 34,022 million yen (down 0.9% YoY) and operating profit was 2,997 million yen (down
14.1% YoY), mainly due to a decline in the occupancy rates.
(ii) Hotel BusinessIn the Hotel Business segment, the Company opened "Natural Hot springs Kaga-no-Hosen Onyado Nono Kanazawa" in the
Dormy Inn Business and "La Vista Kusatsu Hills" in the Resorts Business during the current period. Despite the intermittent
priority measures to prevent the spread of the COVID-19 and the declaration of a state of emergency, both the Dormy Inn
Business and Resorts Business recorded a significant increase in revenues compared with the same period of the previous
fiscal year, when the "Go To Travel Campaign" was launched. This was due to a recovery in occupancy rates by domestic
travelers, especially on weekends, and high occupancy rates during the Golden Week holidays in May. The Company
returned to profitability in the third quarter of the current fiscal year.
As a result, net sales amounted to 46,232 million yen (up 27.4% YoY) and operating loss was 7,296 million yen (vs.
operating loss of 6,392 million yen in the same period of the previous fiscal year). In the same period of the previous fiscal
year, the Company temporarily closed a large number of hotels in response to requests for closures following the declarationof a state of emergency, and posted the profit and loss as extraordinary income (loss). However, after reclassifying them toordinary accounts, the operating loss improved by 1,971 million yen compared with 9,267 million yen for the same period oflast year.
Currently, there are some cancellations and a decrease in the number of new bookings as number of people infected by
COVID-19 increase. However, the Group will continue to accelerate the sales promotion of the "NEW LOCAL STAY Plan(local-only plan)" and the aforementioned new services, as well as to strategically open new hotels in order to achieve an
early recovery in business performance, while striving for medium-to-long term business expansion with an eye on post
COVID-19.

5

(iii) Comprehensive Building Management Business
Mainly due to a decline in construction projects, while cleaning services increased as occupancy rates rose, resulted in net
sales of 10,417 million yen (down 8.8% YoY) and operating profit of 109 million yen (down 60.0 % YoY) in theComprehensive Building Management Business.
(iv) Food Service BusinessIn the Food Service Business, net sales increased by 24.2% year-on-year to 5,149 million yen and operating loss was 40
million yen (22 million yen operating profit in the same period of the previous year) due to the suspension of liquor service,
shortened business hours, and temporary closures of restaurants to prevent the spread of infection, despite an increase inorders from hotel restaurants.
(v) Development BusinessAs a result of the revitalization of real estate, the Development Business reported net sales of 9,558 million yen (up 6.3%
YoY) and operating profit of 648 million yen (up 82.6% YoY).
(vi) Other Businesses
Other Businesses consist of 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 services, the financial business, and the administrative
outsourcing business. The total of these businesses resulted in net sales of 11,342 million yen (down 2.0% YoY) andoperating profit of 358 million yen (down 36.6% YoY).

(2) Explanation of Financial Position(Assets)
Total assets at the end of the third quarter of this consolidated fiscal year stood at 240,529 million yen, an increase of 1,497
million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in real estate for saleand real estate for sale in process.
(Liabilities)
Liabilities at the end of the third quarter of this consolidated fiscal year stood at 174,464 million yen, an increase of 6,216
million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in long-term borrowings,
short-term borrowings, and notes and accounts payable-trade.
(Net Assets)
Net assets at the end of the third quarter of the current fiscal year were 66,065 million yen, a decrease of 4,719 million yen
compared to the end of the previous fiscal year. This was mainly due to a decrease in retained earnings.
As a result, the equity ratio became 27.5%, a decrease of 2.1 points from the end of the previous consolidated fiscal year.

(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information
At present, there is no change to the consolidated earnings forecast for the fiscal year ending March 31, 2022, from the figuresannounced on November 9, 2021.

6

2. Quarterly Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade and contract assets
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
Leasehold deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

7

As of December 31, 2021

24,588
9,702
15,959
1,670
513
9,562
-52
61,94415,756
13,09627,486
11,493
100
7,972
-79
75,82753,40845,827
11,278
4,393
114,907
4,235

47,13938,581
10,594
3,932
100,247
3,380

4,499
16,48916,912
19,562-119
57,344
176,487600
239,032

4,402
17,237
17,186
21,839-118
60,547
164,175526
240,529

(Unit: million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Provision for bonuses
Provision for for director’s bonuses
Provision for warranties for completed construction
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bonds with share acquisition rights
Long-term loan payable
Provision for directors’ retirement benefits
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
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

As of December 31, 2021

4,667
12,702
5,280
1,764
714
37
3
24,677
49,848

10,426
17,017
5,080
273
338
56
3
16,192
49,38828,54030,14253,003
252
1,045
5,414
118,398
168,247

25,60030,12062,775
253
1,126
5,199
125,075
174,464

7,964
12,821
50,831-357
71,2597,964
12,821
46,113-360
66,538

55
-555
24
-474
70,784
239,032

77
-571
21
-472
66,065240,529

(2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Income Statement)(Nine Months Ended December 31, 2021)

Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Subsidy income
Compensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Expenses for measures for COVID-19
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on temporary closing, etc.
Loss on store closings
Loss on disaster
Other
Total extraordinary losses
Net income (loss) before taxes
Income taxes
Net income (loss)
Net income (loss) attributable to owners of parent

Nine Months Ended
December 31, 2020
(From April 1, 2020
to December 31, 2020)
91,343
81,123
10,22013,964-3,744(Unit: million yen)
Nine Months Ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)
105,066
95,537
9,529
14,783-5,253

57
52
655
32
225
1,022

82
43
474
464
255
1,320

339
421
270
1,031
-3,753

442
158
337
938
-4,871

153
153

-

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

153
52
14
220
-5,092-1,161-3,930-3,9309(Quarterly consolidated statement of comprehensive income)(Nine Months Ended December 31, 2021)

Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

10

Nine Months Ended
December 31, 2020
(From April 1, 2020
to December 31, 2020)-7,653(Unit: million yen)
Nine Months Ended
December 31, 2021
(From April 1, 2021
to December 31, 2021)-3,93083
21
6
112-7,54021-16-3
1-3,929-7,540-3,929(3) Notes on 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)
The Company calculates tax expenses by rationally assuming an effective tax rate after applying tax effect accounting to profit
before income taxes for the consolidated fiscal year, including the third quarter of the fiscal year, and multiplying profit before
income taxes for the first nine months of the fiscal year by the estimated effective tax rate. However, if the result of calculationof tax expenses using the estimated effective tax rate is significantly unreasonable, the statutory effective tax rate is used.

(Changes in accounting policies)(Application of Accounting Standards for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020) andother standards from the beginning of the first quarter of this consolidated fiscal year. The Company has decided to recognize
revenue equal to the amount expected to receive in exchange for promised goods or services at the time the control of such
goods or services is transferred to the customer.
As a result, hotel courier sales, which were previously recorded on a gross basis, are now recorded on a net basis, i.e., theconsideration received from the customer less the consideration paid to the carrier. Additionally, the Company has changed its
accounting method for consignment sales of transportation tickets and concession merchandise, which are now recorded at the
net amount of the consideration received from the customer less the consideration paid to the consignor, rather than the grossamount previously recorded.
The Company has applied the transitional treatment prescribed in the proviso of Paragraph 84 of the Accounting Standard for
Revenue Recognition for the application of revenue recognition standards, etc., and the cumulative effect of retroactive
application of the new accounting policy prior to the beginning of the first quarter of this consolidated fiscal year has been
added to or deducted from retained earnings at the beginning of the first quarter, and the new accounting policy has been
applied from the relevant beginning balance.
As a result, compared with the case where the previous accounting standard is applied, net sales and cost of sales for the firstnine months of this fiscal year decreased by 445 million yen and 445 million yen, respectively, but the impact on operating
loss is minor. There is no impact on the balance of retained earnings at the beginning of the current fiscal year.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable - trade,”which was included in “Current assets” in the consolidated balance sheet for the previous fiscal year, is now included in“Notes, accounts receivable - trade and contract assets” from the first quarter of the current fiscal year. In accordance with thetransitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, the Company has
not made any reclassification to the prior year's consolidated financial statements using this new classification.
Moreover, in accordance with the transitional treatment prescribed in Paragraph 28-15 of the “Accounting Standard for
Quarterly Financial Reporting “ (ASBJ Statement No. 12, March 31, 2020), the Company does not provide the breakdown ofrevenue generated from the customer contracts during the first nine months of the previous consolidated fiscal year.
(Application of accounting standards for calculation of fair value, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) andother standards from the beginning of the first quarter of this consolidated fiscal year. The Company will also apply the new
accounting policy prescribed in the Accounting Standard for Fair Value Measurement, etc. into the future in accordance withthe transitional treatment prescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no impact on thequarterly consolidated financial statements.

11(Additional information)(Application of Consolidated Taxation System)
The Company and its domestic consolidated subsidiaries have adopted the Consolidated Taxation System from the firstquarter of the current consolidated fiscal year.
(Application of tax effect accounting for the transition from the Consolidated Taxation System to the Group Tax Sharing
System)With respect to items subject to the review of the Non-Consolidated Taxation System conducted to coincide with transition to
the Group Tax Sharing System, which was created under the Act on Partial Revision of the Income Tax Act, etc. (Act No. 8 of2020), the Company and its domestic consolidated subsidiaries have not applied the provisions of Paragraph 44 of the
Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, February 16, 2018) in accordance with thetreatment set out in Paragraph 3 of Practical Solution on the Treatment of Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System (PITF No.39, March 31, 2020) and the amounts of deferred
tax liabilities and deferred tax assets are based on the provisions of tax laws before the revision.

(Segment Information etc.)[Segment Information]
I For the nine months ended December 31, 2020 (April 1, 2020 – December 31, 2020)
1. Information on net sales, income or loss by each reporting segment(Unit: million yen)
Reporting Segment

Dormitory

Hotel

Comprehensive
Building
Management

FoodService

Other
Developme
nt

Total

Note 1

Total

Adjustment
amountNote 2

Amountrecorded on
consolidated
quarterlystatement ofincomeNote 3

Net sales
Net sales to externalcustomers

34,07936,208

5,180

518

4,140

80,126

11,216

91,343-

91,343

Inter-segmental sales
or transfers

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(loss)

3,489-6,392

274

22

355

-2,252565-1,686-2,057-3,744Note 1: The Other Business segment consists of the following businesses not included in the reporting segments: the SeniorLife Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business(services provided under contract to local governments), the support business for people who live alone, theinsurance agency business, the comprehensive human-resource services, the financial business, the administrative
outsourcing business, and other ancillary businesses.
2. Adjustment of segment profit (loss) of -2,057 million yen includes the elimination amount of -325 million yen intersegment transactions and -1,731 million yen corporate expenses that are not allocated to each reportable segment.
Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative
departments of the head office.
3. Segment profit (loss) is adjusted with operating loss on the quarterly consolidated statement of income.
2. Information on impairment loss on non-current assets or goodwill, etc. by reporting segment
Not applicable12

Ⅱ For the nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)
1. Information on net sales, income or loss by each reporting segment(Unit: million yen)
Reporting Segment

Dormitory

Hotel

Comprehensive
Building
Management

FoodService

Other
Developme
nt

Total

Note 1

Total

Adjustment
amountNote 2

Amountrecorded on
consolidated
quarterlystatement ofincomeNote 3

Net sales
Net sales to externalcustomers

33,781

46,157

5,523

583

8,031

94,078

10,988105,066-

105,066

Inter-segmental sales
or transfers

240

75

4,894

4,565

1,527

11,302353

11,656-11,656-

Total

34,022

46,232

10,417

5,149

9,558

105,381

11,342

116,723-11,656

105,066

Segment profit(loss)

2,997-7,296

109

-40

648

-3,580358-3,221-2,031-5,253Note 1: The Other Business segment consists of the following businesses not included in the reporting segments: the SeniorLife Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business(services provided under contract to local governments), the support business for people who live alone, theinsurance agency business, the comprehensive human-resource services, the financial business, the administrative
outsourcing business, and other ancillary businesses.
2. Adjustment of segment profit (loss) of -2,031 million yen includes the elimination amount of 47 million yen intersegment transactions and -2,078 million yen corporate expenses that are not allocated to each reportable segment.
Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative
departments of the head office.
3. Segment profit (loss) is adjusted with operating loss on the quarterly consolidated statement of income.
2. Information on change in reporting segment, etc.
(Application of Accounting Standards for Revenue Recognition, etc.)
As stated in “Changes in accounting policies”, the Company has applied the Accounting Standard for Revenue
Recognition and other standards from the beginning of the first quarter of the current consolidated fiscal year, andchanged the accounting method related to revenue recognition. Accordingly, the Company also has changed thecalculation method of profit or loss of business segment.
Due to these changes, net sales and cost of sales of the Hotel Business during the first nine months of theconsolidated fiscal year have decreased by 224 million yen and 224 million yen respectively, and net sales and costof sales of the Other Business decreased by 221 million yen and 221 million yen respectively, as compared to thecase where the previous accounting method would have been applied. However, the impact on the segment loss isminor.
3. Information on impairment loss of non-current assets or goodwill, etc. by reporting segment
Not applicable13