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

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

［JGAAP］
November 2020

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1

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Summary of Consolidated Financial Results for the Second Quarter of the Fiscal YearEnding March 31, 2021 [based on Japanese GAAP]
November 9, 2020
Name of listed company Kyoritsu Maintenance Co., Ltd.
Listed exchange: Tokyo
Code
9616
URL https://www.kyoritsugroup.co.jp/
Representative(Title) President(Name) Takumi Ueda
Contact(Title) Managing Director(Name) Koji Nakamura
Tel 03-5295-7778
Scheduled date of submittal of Quarterly Report
November 10, 2020
Scheduled date of commencement of payment of dividends
December 7, 2020
Supplementary materials prepared concerning quarterly financial results: Yes
Briefing held on quarterly financial results: Yes (For institutional investors and analysts)(rounded down to the nearest million yen)
1.
Consolidated financial results for the second quarter of the term ending March 31, 2021 (April 1 – September 30, 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％
2Q of term ending－－－
56,250-40.0-4,486-4,486-7,856
March 2021
2Q of term ended
93,815
18.4
9,066
12.7
8,972
14.5
6,114
14.9
March 2020
(Note) Comprehensive income

2Q of term ending
March 2021

-7,810Millionyen

2Q of term ended
March 2020(－％)

Quarterly net income per share

5,776

Million yen(5.0%)

Diluted quarterly net income per share

Yen
Yen
－
2Q of term ending March 2021
-201.49－
2Q of term ended March 2020
156.82
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
Million yen
2Q of term ending
227,230
March 2021
Fiscal year ended
217,086
March 2020
(Reference)
Shareholders’ equity
2.

2Q of term ending
March 2021

Net assets
Million yen

75,251％

Net assets per share
Yen

75,25133.1

1,930.00

83,95438.7

2,153.24

Million yen

Equity ratio

Fiscal year ended
March 2020

83,954

Million yen

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

Yen

Q2 endYen

Q3 endYen

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

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Total
Yen

3.

Projected consolidated 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? Yes.

*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, (4) 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)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)

2Q of term ending
March 2021
2Q of term ending
March 2021
2Q of term ending
March 2021

39,219,653

shares229,122

shares38,990,242

sharesFiscal year ended
March 2020
Fiscal year ended
March 2020
2Q of term ended
March 2020

39,218,826 shares

228,844

shares38,990,519 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 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 4 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 ……………………………………………………………………………

5（1） Explanation of Results …………………………………………………………………………………………………

5（2） Explanation of Financial State …………………………………………………………………………………………

6（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
Second quarter consolidated cumulative period …………………………………………………………………

10

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

11（3） Quarterly consolidated cash flow statement ……………………………………………………………………………

12（4） Notes to the quarterly consolidated financial statements ………………………………………………………………

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

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

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

15(Segment information) …………………………………………………………………………………………………

15

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Qualitative Information on Quarterly Results

1.

（1） Explanation of Results
During the second 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. Following the lifting of the state of
emergency as of May 25, economic activity has resumed in stages, but the outlook remains uncertain due to concerns about fresh
waves of infection.
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 in Japandue to COVID-19. Conversely, occupancy rates in the hotel sector declined significantly in April and May due to a decrease in
inbound tourists and business trips in line with requests that people refrain from going out and reflecting a slump in domestic
leisure demand. However, domestic demand began to recover after June, and by September, Dormy Inn business figures for thenumber of domestic guests handled exceeded those of the previous year. Growing recovery is also underway in the resort businessand the RevPAR benchmark for existing offices (a key operational indicator, calculated by the occupancy rate for guestrooms x
the average guestroom unit price) having exceeded the previous year’s level. Moreover, the extent of measures to prevent theinfection spreading also included temporarily closing some hotels and restaurants, but operations are gradually resuming in linewith customer needs.
Consequently, net sales for the first half of the current fiscal year totaled ¥56,250 million (down 40.0% year-on-year). Profit
reversed from the deficit in the first accounting quarter meant an operating loss of 4,486 million yen (as opposed to profit of
9,066 million yen for the same period the previous year and profit of 34 million yen for the second accounting quarter.) An
ordinary loss of 4,486 million yen (compared to a profit of 8,972 million yen for the same period the previous year and profit of
318 million yen for the second accounting quarter this year) was confirmed for the Company, confirming that progress is being
made to address the decline. After reviewing our business and to further consolidate our business structure with future growth inmind, we have shut down one of our South Korean operations and the ‘global cabin’ (new-style compact hotel). The net loss
recorded for shareholders of the parent company was 7,856 million yen, compared with net income of 6,114 million yen for thesame period the previous year, due to the extraordinary loss incurred.
The ‘Kyoritsu Jump Up Plan’, a medium-term management plan due to end in the fiscal year ending March 31, 2022, will berevised in response to the spreading COVID-19 pandemic and announcements will be issued once preparations have been made.
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 23,457 million yen (down 6.8% YoY) and its operating income was 2,743 million
yen (down 28.6% YoY).
Within the dormitory business, as part of our financial support for dormitory students affected by COVID-19, we havelaunched the “New COVID-19 School Support Program,” to issue interest-free loans for dormitory fees.
Hotel Business
The Hotels Business segment experienced massive drops in occupancy rates in April and May due to dramatically decreased②

inbound tourism and lower demand for business travel and domestic leisure in response to domestic calls to refrain from goingout 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 and local governments, aswell as our new products, including measures to combat COVID-19 infections. Moreover, although some offices were
temporarily closed to prevent the infection spreading, we have gradually resumed operations to meet our customers’ needs.
Although occupancy rates for the Dormy Inn business are taking longer to recover in major metropolitan areas like Tokyo
and Osaka, the national average shows a recovery and the number of domestic guests for September exceeded the figure forthe previous year. Going forward, we will continue to increase room rates while targeting an early recovery as well as rollingout more new products, such as offices for telecommuting and long-stay plans to help prevent the spread of COVID-19.
In the resort business, the “Go To Travel Campaign” proved successful, as did efforts to promote new products, like taxi
pick-up and drop-off services targeting domestic travelers. A strong increase in occupancy rates is spearheading growth in the－5－hotel business, while room rates remain above the level for the previous year. The RevPAR figure recorded at existing
establishments showed a year-on-year increase in September and a positive result for the second quarter of the consolidated
accounting period.
As a result of the above factors, net sales was 18,416 million yen (down 56.8% YoY) and operating loss was 6,748 million
yen (vs. income of 5,277 million yen in the first quarter of last year).
The steady recovery trend has continued since October.
Comprehensive Building Management Business
Sales in our General Building Management business declined 9.3% year-on-year to 7,321 million yen, while operating③

income decreased by 30.8% year-on-year to 160 million yen, mainly due to a decrease in renovation work.
Food Service Business
Due to the effects of factors such as reduced hotel restaurant operations as a result of the COVID-19 pandemic and temporary④

closure of restaurants as part of efforts to prevent the spread of the virus, the Food Service Business recorded net sales of 2,246
million yen (down 38.9% YoY) and an operating loss of 16 million yen (vs. income of 86 million yen in the first quarter oflast year).
Development Business
Development Business sales were ¥7,793 million, declining by 33.5% year-on-year, while operating income was ¥286⑤

million, down 73.0% year-on-year, mainly because the Company did not securitize real estate during this period.
Other Businesses
The Company's other business segments consist of the Senior Life Business (management and operation of senior⑥

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, andthe administrative outsourcing business. Thanks to factors including steady improvements in earnings of the Senior Life
Business and the PKP Business, net sales in this segment were 7,677 million yen (up 12.2% YoY) and its operating income
was 497 million yen (up 24.9% YoY).

（2） Explanation of Financial State
Assets, Liabilities and Net Assets(Assets)①

Total assets at the end of the second quarter of this consolidated fiscal year stood at 227,230 million yen, up 10,144 million
yen from the end of the previous consolidated fiscal year. This increase was primarily attributable to an increase in cash anddeposits to secure funds, construction underway and real estate for sale.
(Liabilities)
Liabilities at the end of the second quarter of this consolidated fiscal year stood at 151,978 million yen, up 18,846 million
yen from the end of the previous consolidated fiscal year. This was due mainly to factors such as an increase in short-termloans payable.
(Net assets)
Net assets at the end of the second quarter of this consolidated fiscal year stood at 75,251 million yen, down 8,702 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%.
Cash flow position
As of the end of the second quarter of the current fiscal year, the balance of cash and cash equivalents increased by 2,782②

million yen to 20,575 million yen, compared to the end of the previous fiscal year.
(Cash flows from operating activities).
Cash flows from operating activities amounted to ¥13,424 million, an increase of ¥25,348 million compared to the same
period of fiscal 2019 due to Quarterly net income (loss) before taxes－

6－

(Cash flows from investing activities).
“Cash flows from investing activities” declined by ¥7,670 million compared to the same period the previous year to ¥6,172
million due to the impact of expenditures incurred in acquiring tangible fixed assets (property, plant, equipment).
(Cash flows from financing activities).
Net cash generated by financing activities was ¥22,388 million, an increase of ¥16,640 million compared to the same period
the previous year, due to a net increase in short-term borrowing.

（3） Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information
Regarding the consolidated earnings forecast for the fiscal year ending March 31, 2021, the Company launched an offensivefrom June as part of an attempt to turn things around. Although rational calculations proved difficult amid the impact of COVID19, given the clear recovery trend emerging at the time, we have released our earnings forecast today based on the available
information.
The consolidated earnings forecast was prepared based on the information available at the time, and actual earnings may varyfrom the forecast due to various factors going forward.
We will continue to announce more rational consolidated financial forecasts as soon as circumstances allow.
The ‘Kyoritsu Jump Up Plan’, a medium-term management plan due to end in the fiscal year ending March 31, 2022, will berevised in response to the spreading COVID-19 pandemic and announcements will be issued once preparations have been made.

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2.

Quarterly Financial Statements and Major Notes（1）

Quarterly Consolidated Balance Sheet(Unit: millions yen)
Second quarter consolidated
Previous consolidated fiscal year
accounting period of this fiscal year
(March 31, 2020)(September 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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8

－

18,303
11,057211
11,518
256
9,290
-46
50,59020,951
12,891
7,454
6,255
78
9,035
-52
56,61347,60744,50913,805
3,527
109,450
3,918

47,54845,454
15,9893,578
112,571
3,871

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

3,989
16,38816,38517,044-183
53,626
170,068548
227,230

(Unit: millions yen)
Second quarter consolidated
Previous consolidated fiscal year
accounting period of this fiscal year
(March 31, 2020)(September 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
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

－

9

－

10,124
12,034

10,66529,811

5,280

5,280

19,992

19,987

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

1,680
702
58
0
6
15,99384,18533,82021,922
251
0
1,140
4,915
62,050133,131

31,18030,103
252
0
1,194
5,062
67,793
151,978

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

7,964
12,82055,528-356
75,957

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

-60
-612
-32
-705
75,251
227,230

（2）Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Income Statement)(Second 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 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: millions yen)
Second quarter consolidated cumulative
Second quarter consolidated
period of the previous fiscal year
cumulative period of this fiscal year
(From April 1, 2019 to(From April 1, 2020 to
September 30, 2019)
September 30, 2020)
93,81556,25072,78052,137
21,034
4,113
11,967
8,599
9,066-4,486

－

10

－

37
66
14
80
83
281

38
31
577
－
152
799

174
－
201
375
8,972

222
385
192
800
-4,486

217
－
2
219

－
152
－

－
－
5
－
5
9,187
3,073
6,114

2,886
2,025
－
41
4,953
-9,287-1,431-7,856

6,114-7,856152

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

Quarterly 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
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of parent－

Second quarter consolidated
cumulative period of the previous
fiscal year
(From April 1, 2019 to
September 30, 2019)
6,114(Unit: millions yen)
Second quarter consolidated
cumulative period of thisfiscal year
(From April 1, 2020 to
September 30, 2020)-7,856

-153
-181
-2
-337
5,776

56
-14
4
46
-7,8105,776-7,810

11

－

（3）

Quarterly consolidated cash flow statement(Unit: millions yen)
Second quarter consolidated
Second quarter consolidated
cumulative period of the previous
cumulative period of this fiscal year
fiscal year
(From April 1, 2020 to(From April 1, 2019 to
September 30, 2020)
September 30, 2019)

Cash flow from operating activities
Quarterly net income (loss) before taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of security deposits
Increase (decrease) in provision for bonuses(- indicates decrease)
Interest income and dividend income
Interest expenses
Subsidy income
Gain / loss on sale of investment securities(- indicates gain)
Costs of responding to novel infectious diseases
Losses from temporary closures etc.
Loss from stores closing
Increase / decrease in trade receivables(- indicates increase)
Increase / decrease in accounts receivable(- indicates increase)
Increase / decrease in inventories(- indicates increase)
Increase / decrease in trade payables(- indicates decrease)
Increase / decrease in down payments(- indicates decrease)
Increase / decrease in accounts payable(- indicates decrease)
Increase / decrease in accrued consumption tax, etc.
(- indicates decrease)
Increase / decrease in deposits (- indicates decrease)
Increase / decrease in margin deposits(- indicates decrease)
Other
Subtotal
Amount of interest and dividends received
Amount of interest paid
Amount of corporate tax, etc. refundedAmount of corporate tax, etc. paid
Amount of grants received
Costs incurred of measures to counter COVID-19
Losses payable due to temporary closures, etc.
Amount payable to cover store closure losses
Cash flow from operating activities
Cash flow from investing activities
Purchase of marketable securities
Income from the sale of securities
Expenditure incurred in acquiring tangible fixed assets(property, plant, equipment).
Income from sale of tangible fixed assets
Expenditure incurred in acquiring intangible fixed
assetsExpenditure to cover long-term prepaid expenses
Expenditure on loans
Income from loan collection
－

12

－

9,187
2,506
170
125

-9,287
2,578
176
156

-771

-1,400

-103
174
-14

-69
222
-730

-217

－

－
－
－

385
2,886
2,025

-3,759-1,833409

448

10,746-1,781

1,544

540-2,832-3,398-139505-1,038

-469

-882

-164

-10

-164

-344
14,74969-179
0-2,72914－－－
11,92467-9,306
34
-209
0
-830
730
-385
-2,504-953-13,424

－
286

-432
1,243

-12,294-5,678

686

12

-264

-127

-191
-702
158

-212
-339
361

Payments to cover deposits and guarantees
Proceeds from collection of deposits and guarantees
Expenditure on insurance reserve fund
Income from cancellation of insurance reserves
Other
Cash flow from investing activities-1,056
100
-558
9
-15
-13,842

－

13

－

-450
36
-561
10
-35
-6,172

Second quarter consolidated
cumulative period of the previous
fiscal year
(From April 1, 2019 to
September 30, 2019)
Cash flows from financing activities
Net increase / decrease in short-term debt(- indicates decrease)
Income from long-term borrowing
Expenditure on repayment of long-term debt
Expenditure on redemption of corporate bonds
Expenditure for the acquisition of treasury stock
Dividend payment amount
Other
Cash flows from financing activities
Conversion difference for cash and cash equivalents
Increase / decrease in cash and cash equivalents(- indicates decrease)
Initial balance of cash and cash equivalents
Quarterly balance of cash and cash equivalents

－

14

－

(Unit: millions yen)
Second quarter consolidated
cumulative period of thisfiscal year
(From April 1, 2020 to
September 30, 2020)

10,59718,047－-983-2,866
-1
-974
-24
5,747
-42

10,100-2,190-2,641-1-895-31
22,388
-9

3,787

2,782

16,07019,857

17,792
20,575

Notes to the quarterly consolidated financial statements（4）(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 second 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
Second quarter consolidated cumulative period of the previous fiscal year

(April 1 – September 30, 2019)

Information on amounts of net sales and profit (loss) by reporting segment

1.

(Unit: millions yen)
Reporting segment
Comprehensivebuilding
management

Food
service

Developme
nt

Total

Other
Notes: 1.

Total

Adjustment
amountNotes: 2.

Amount shownon quarterly
consolidated
incomestatement
Notes: 3.

DormitoryHotel

Net sales to externalcustomers

25,01742,5593,810

683

15,19387,265

6,549

93,815－

93,815Internal sales ortransfers between
segments

159

72

4,263

2,989

-3,469

4,016

294

4,310

-4,310－

Total

25,177

42,632

8,074

3,673

11,72391,281

6,844

98,125-4,31093,815

Segment profit or loss
(-)

3,841

5,277

231

86

1,061

10,497397

10,895-1,829

9,066

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 for people who live alone, the insurance agency business,
comprehensive human-resource services, the financial business, the administrative outsourcing business, and othersubsidiary businesses.
2. The adjustment amount of -1,829 million yen on segment profit (loss) reflects -158 million yen in cancellation ofinter-segment transactions and -1,670 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

－

15

－

Second quarter consolidated cumulative period of this fiscal year (April 1 – September 30, 2020)

II

Information on amounts of net sales and profit (loss) by reporting segment

1.

(Unit: millions yen)
Reporting segment
Comprehensivebuilding
management

Food
service

Developme
nt

Total

Other
Notes: 1.

Total

Quarterly
Consolidated
Adjustment
IncomeamountStatement
Notes: 2.
RecordedamountNotes: 3.

DormitoryHotel

Net sales to externalcustomers

23,287

18,376

3,475

273

3,405

48,818

7,431

56,250－56,250Internal sales ortransfers between
segments

170

39

3,845

1,972

4,387

10,416245

10,661-10,661－

Total

23,457

18,416

7,321

2,246

7,793

59,235

7,677

66,912-10,661

56,250

Segment profit or loss
(-)

2,743

-6,748

160

-16

286

-3,575497-3,078-1,407-4,486

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 for people who live alone, the insurance agency business,
comprehensive human-resource services, the financial business, the administrative outsourcing business, and othersubsidiary businesses.
2. The adjustment amount of -1,407 million yen on segment profit (loss) reflects -241 million yen in cancellation ofinter-segment transactions and -1,166 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－16－