Consolidated Financial Results for FY2018
May 24, 2019
Takumi Ueda
President

9616

Executive Summary• Reached the highest-ever profit
Early recovered from natural disasters impact. Strong growth in hotel business by +10.6 oku yen/+ 14.9% vs.PY
mainly driven by RevPAR increase vs. PY especially due to focusing on further improvement in customer
satisfaction
Stable growth in dormitory business at high occupancy rate
The 9th straight year of the increased operating profit
Ahead of FY3/19 earnings forecast for operating profit and net profit which were revised up from original forecast• Raised FY3/19 dividend to 45 yen per share (projection) with +5 yen vs. PY/ +2 yen vs. forecast
The 7th straight year of the increased annual dividend per share
FY3/19 dividend payout ratio 18.3% increased by 0.6pp vs. PY
Increase dividend payout ratio to more than 20% in FY3/22, the last year of FY3/18-FY3/22 mid-term
management plan

• FY3/20 financial forecast : Solid growth vs. FY3/19 in both revenue and profit
Key drivers of FY3/20 growth are increase in available rooms of dormitories/hotels and ADR up in hotel businessNote: oku yen=100 MM yen

1

FY3/19 consolidated financial results vs. PY

FY3/19 consolidated financial results and KPIs
(Unit: oku yen=100 MM yen)

FY3/18Act

ReveueKey growth drivers vs. PY

FY3/19Act

vs. PY•

Revenue +107.9 oku yen or +7.1%

1,520.2

1,628.1+107.9+7.1%

Operating Profit

130.8

145.6

+14.8

+11.3%

Ordinary Profit

129.2

143.2

+13.9

+10.8%Net Profit

87.7

95.6

+7.8

+9.0%

EPS(Yen)

225.9

245.4

+19.5

+8.7%

Capital Investments

213.8

174.8

-39.0

-18.3%

Depreciation Expense

44.2

47.5

+3.2

+7.4%

Cash Flow*

132.0

143.2

+11.1

+8.5%

DPS(Yen)

40.0

45.0

+5.0

+12.5%

DPR

17.7%

18.3%

+0.6pp

-

ROE

12.9%

12.6%

-0.3pp-•Ordinary Profit +13.9 oku yen or +10.8%

0.9x

0.8x

-0.0x

-

•

Net Profit +7.8 oku yen or +9.0%

Net D/E Ratio

Mainly driven by robust growth in Dormy Inn businessand other key businesses- Dormy Inn business +70 oku yen or +17.7%- Dormitory business +18 oku yen or +4.0%- Resort business +11 oku yen or +3.7%•

Operating Profit +14.8 oku yen or +11.3%
Mainly driven by- Steady growth in Dormitory business continiuously- Robust growth in Dormy inn business by increase
in RevPAR* Net profit + Depreciation expense3

FY3/19 Revenue and Operating profit by business segment
470 489(Unit: oku yen=100 MM yen)

Hotel business total- FY3/18 701- FY3/19 783

Revenue467
397
304 315224

FY3/18158

148 155

FY3/1967

118 1240
Dormitory

Operating Profit

Dormy Inn

Resorts

Comprehensive Foods Service Development
Business
Business
Building
Management
Business

OthersHotel business total- FY3/18 71.5
- FY3/19 82.1

75.7 78
65.4
55.4+7.8 (incl. Real estate securitizations +9.2)

FY3/18
FY3/1919.0

16.1 16.7

11.1

5.0 2.9
Dormitory

Dormy Inn

Resorts

1.5 0.9-2.9 -1.2

Comprehensive Foods Service
Business
Building
Management
Business

Development
Business

Others4

Dormitory Business: FY3/19 Revenue and Operating profit(Unit: oku yen=100 MM yen)

Revenue

Operating Profit+2 oku yen/ +3.0％ vs. PY+18 oku yen/ +4.0％ vs. PY

-1.3

+0.7
+1.7

+0.7

-0.1

+0.1

+18.9
+0.5
489
470

470

FY3/18

FY3/18open

FY3/19open

FY3/19close

OthersFY3/1975

75

FY3/18

FY3/18open

78

FY3/19open

FY3/19close

OthersFY3/195

Dormitory Business: Number of contracted rooms and occupancy rate at the beginning of FY (Historical data)
Mainly coming from an increase incompanies to introduce a systemof dormitories for employees

Number of contracted rooms at the beginning of FY – by category(Rooms)
40,00030,00040,089(+1,709)38,380(+1,285)
4,372

4,586

4,810

8,050

8,682

9,387

5,097
10,068

5,293

5,531

11,312

12,085

13,266

20,52021,002

5,263

Domeal(+1,181)(+773)

20,00010,000

Dormitories for
employees

21,292
20,20020,534

20,212

20,685

Dormitories forstudents(+290)(+482)
0
FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19Mainly driven by increase incontracted rooms for 4 year
university and college
students incl. foreign ones

FY3/20Occupancy rate at the beginning of FY
(%)

97.0

97.2

97.3

FY3/14

FY3/15

FY3/16

98.3

98.3

97.7

FY3/17

FY3/18

FY3/1998.7

FY3/206

Dormy Inn Business : FY3/19 Revenue and Operating profit(Unit: oku yen=100 MM yen)

Operating Profit

Revenue+10 oku yen/ +18.1％ vs. PY+70 oku yen/ +17.7％ vs. PY

+2.4

-1.4
+2.5

+8.4

-6.0

+11.7

+28.8

+3.4

Marginal profit fromincrease in RevPAR

+23.9

+4.5

467

+6.3

(Incl. disasters

65

impact -2.0)

55

Decrease indepreciation exp.

+2.0

397

Increase inwater/energy bill- 3.1

FY3/18 Existing* FY3/18 FY3/19
KOR
Others FY3/19
facilities open
open (Seoul)* At the end of March, 2017** In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurred

FY3/18 Existing* FY3/18
facilities open

FY3/19open

KOR(Seoul)OthersFY3/197

Dormy Inn Business: FY3/19 Occupancy rate and ADR
Occupancy rate and ADR data by month(Unit: thousand yen)
FY3/18 ADR

96.3%

FY3/18 OCC
FY3/19 OCC

FY3/19 ADR

94.3% 94.1%

95.0%

92.5%

13.5

91.7% 91.8%

91.3%

90.7%

89.8%
90.0%

12.0

88.7%
87.3%

*

88.9%

10.5

85.0%

80.0%

9.0
Apr

May

Jun

Jul

Aug

Sep

Q1

Q2

Q3

Q4

FY3/2018

88.5%

92.4%

90.3%

88.4%

89.9%

FY3/2018

10.8

11.7

11.1

10.5

FY3/2019

89.9%

92.6%

93.0%

90.2%

91.5%

FY3/2019

11.0

11.8

11.0

10.3

11.1

vs. PY

+1.4%

+0.3%

+2.7%

+1.8%

+1.6%

vs. PY

＋0.2

＋0.1

-0.0

-0.1

＋0.1

OCC

Oct

Nov

Dec

Jan

Feb

Mar

Q1

Q2

Q3

Q4

Full
year

ADR
Full
year

11.0

* In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurred(Note) Above figures are excl. the impact of facilities that have been opened on and after April 1, 2017 to compare 2 periods of occupancy rate and ADR on a common basis

8

Dormy Inn Business: FY3/19 RevPAR
RevPAR data by month(Unit: thousand yen)

13.0

12.2

FY3/18

FY3/19

12.0
11.0
10.0

9.8

10.6

10.5

10.7
10.1
9.7

10.0

9.6

9.4

10.0*
8.6

9.0
8.0
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

RevPAR
Q1

Q2

Q3

Q4

Full year

FY3/2018

9.5

10.8

10.0

9.2

9.9

FY3/2019

9.9

11.0

10.3

9.3

10.1

vs. PY

＋0.4

＋0.1

＋0.3

＋0.1

＋0.2

* In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurred(Note) Above figures are excl. the impact of facilities that have been opened on and after April 1, 2017 to compare 2 periods of RevPAR on a common basis

9

Dormy Inn Business: Related data of inbound tourism
The number of inbound tourism(Unit: Thousand people)- Data Source: JINTOThe number of inbound hotel guests(Unit: Thousand people)- Data Source: Japan Tourism Agency

Share by country in inbound tourism – FY3/19- Data Source: JINTO

93,69481,305

Others22%70,454

69,10949,478USA
5%Hong Kong
7%

FY3/15

Ratio of inbound tourism and
ADR for inbound tourism(Unit: Thousand yen)
- Dormy Inn

12.5
10.3

FY3/16

FY3/17

FY3/18

9.6

13.2

13.4

13.1

10.0

10.3

10.4

Share by country in inbound tourism – FY9/17- Dormy Inn

1,878
Others
21%

1,380

8.6
27.1%
17.6%

695
China
6%

431

20.5%

FY3/16

FY3/17

FY3/18

FY3/15

FY3/19FY3/16

FY3/17

FY3/18

Hong
Kong
26%

Taiwan13%

10.6%

FY3/15

South
Korea
29%

USA
6%

872
30.2%

South Korea
24%

Taiwan15%

FY3/19The number of inbound hotel guests(Unit: Thousand people)- Dormy Inn

FY3/19 ADR for inbound tourism lower than PY due tohotel supply/demand in Osaka area and natural disasters*

Inbound tourism ratio
ADR(Inbound)
ADR(Excl.Inbound)

China
27%

FY3/1910* In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurredResort Business: FY3/19 Revenue and Operating profit(Unit: oku yen=100 MM yen)

Revenue

Operating Profit+0.6 oku yen/ +3.8％ vs. PY+11 oku yen/ +3.7％ vs. PY

+2.9

-6.9

-3.5

+4.3
+15.4

+0.2

-0.4
Marginal profit fromincrease in RevPAR

0.0

-0.2

(Incl. disasters

315

impact -2.3)
Decrease in fixed

304

16.7

cost & miscellaneous

16.1

exp.

+1.2

Increase inwater/energy bill

- 0.5
Increase inclearance exp.

-0.5

FY3/18

Existing*
facilities

FY3/18open

FY3/19open

Others* At the end of March, 2017** In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurred

FY3/19FY3/18

Existing*
facilities

FY3/18open

FY3/19open

OthersFY3/1911

Resort Business: FY3/19 Occupancy rate and ADR
Occupancy rate and ADR data by month(Unit: thousand yen)

FY3/18 OCC
100.0%
90.0%

FY3/19 ADR

FY3/19 OCC

88.5% 89.8%

87.5% 87.5%
82.9%

80.9%

55.0

FY3/18 ADR

100.0%

50.0

82.0%

82.8%
78.6%

45.0

77.2%

80.0%

*

81.9%

40.0
70.0%
35.0

60.0%

30.0

50.0%
Apr

May

Jun

Jul

Aug

Sep

Q1

Q2

Q3

Q4

FY3/2018

80.6%

90.3%

85.3%

86.0%

85.6%

FY3/2018

40.2

44.5

41.0

39.8

FY3/2019

80.8%

88.3%

85.6%

85.1%

85.0%

FY3/2019

39.8

44.6

41.6

40.8

41.8

vs. PY

+0.2%

-2.0%

+0.3%

-0.9%

-0.6%

vs. PY

-0.4

＋0.0

＋0.6

＋1.0

＋0.3

OCC

Oct

Nov

Dec

Jan

Feb

Mar

ADR
Full
year

Q1

Q2

Q3

Full
year

Q4

41.5

* In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurred(Note) Above figures are excl. the impact of facilities that have been opened on and after April 1, 2017 to compare 2 periods of occupancy rate and ADR on a common basis

12

Resort Business: FY3/19 RevPAR
RevPAR data by month(Unit: thousand yen)

49.3

50.0

FY3/2018
40.0
33.2

35.5

35.0

36.9

32.2
33.3

30.0

35.9

35.4

FY3/2019

29.9

34.3

Jun

Jul

*

34.3

20.0
Apr

May

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

RevPAR
Q1

Q2

Q3

Q4

Full year

FY3/2018

32.4

40.2

34.9

34.3

FY3/2019

32.2

39.4

35.6

34.7

35.5
35.5

vs. PY

-0.3

-0.9

＋0.7

＋0.5

＋0.0

* In Sep 2018, Hokkaido earthquake and Typhoon No.21 occurred(Note) Above figures are excl. the impact of facilities that have been opened on and after April 1, 2017 to compare 2 periods of RevPAR on a common basis

13Interest-bearing debt and Net D/E ratio

700(*.*x)

Interest-bearring debt（Net）(oku yen=100 MM yen)

1.2

1.4

Net D/E ratio

600

1.2

0.9

0.9

500

0.8

0.7

400
300
200

0.9

0.8

561
428

407

1.0

611

663

410

0.6
0.4

100

0.2

0

0.0
FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/1914

FY3/20 Consolidated Financial Forecast

FY3/20 Consolidated Financial Forecast and KPIs
Key assumptions in FY3/20 Forecasts(Unit: oku yen=100 MM yen)

FY3/19FY3/20Act

Forecast

ReveueDormitory Businessvs. PY

1,628.1

1,830.0+201.8+12.4%

Operating Profit

145.6

157.0 *

+11.3

+7.8%

Ordinary Profit

143.2

154.0

+10.7

+7.5%

-

Occupancy rate at the beginning of FY3/20:
98.7%, +1.0pp vs. PY
Number of contractors at the beginning of FY3/20:
40,089, +4.5% vs. PY

Net Profit

95.6

102.0

+6.3

+6.6%

EPS(Yen)

245.4

261.6

+16.1

+6.6%

Dormy Inn Business

Capital Investments

174.8

153.4

-21.4

-12.3%-

Depreciation Expense

47.5

50.0

+2.4

+5.0%

Cash Flow*

143.2

152.0

+8.7

+6.1%

Resort Business

DPS (Yen)

45

47

+2.0

+4.4%

-

18.3%

18.0%

-0.4pp

-

DPR

-

-

* Net profit + Depreciation expense

Number of hotels/rooms planned to open in FY3/20:
・8 hotels/ 1,842 rooms (+13.9%)
RevPAR (thousand yen): 10.3, +3.0% vs. PY

Number of hotels/rooms planned to open in FY3/20:
・3 hotels/ 241 rooms (+9.2%)
RevPAR (thousand yen): 36.7, +4.8% vs. PY* Incl. negative impact of 14.5 oku yen vs. PY – opening expense +4.5 oku yen, huge renewal expense, etc. +8.0 oku yen and systemmodification fee +2.0 oku yen for customer satisfaction improvement16

FY3/20 Underlying growth of Revenue and Operating Profit (vs. PY)(Unit: oku yen=100 MM yen)

FY3/19 Act
Reported Revenue

FY3/20 Forecast

vs.PY

1,628.1

1,830.0+201.8-82.0-106.9-24.8

1,546.0

1,723.0+176.9+11.4%

Reported Operating Profit

145.6

157.0

+11.3

+7.8%

+) Opening expense

+18.6

+23.1

+4.5

+24.1%

+2.9

+10.9

+8.0

+274.1%

-

+2.0

+2.0

-

Total of above special factors

+21.6

+36.1

+14.5

+67.1%

Operating Profit excl. special factors

167.2

193.1

+25.8

+15.4%-) Real estate securitizations

-12.0

-13.0

-0.9

155.2

180.0

+24.8

-) Real estate securitizations
Underlying Revenue (excl. above item)+) Negative impact due to huge renewal+) System modification fee

For customer satisfaction
improvement

Underlying Operating Profit (excl. above items)+12.4%+16.0%
17

FY3/20 Dormitory Business: Revenue and Operating Profit(Unit: oku yen=100 MM yen)

Revenue

Operating Profit+3 oku yen/ +4.6％ vs. PY+19 oku yen/ +3.9％ vs. PY

-2.4

+0.2

+2.9

+0.4

+19.3

+2.1

508

78

FY3/20FY3/1981489

FY3/19FY3/19open

FY3/20open

OthersFY3/19open

FY3/20open

OthersFY3/2018

FY3/20 Forecast - Dormy Inn Business: Revenue and Operating Profit(Unit: oku yen=100 MM yen)

Revenue

Operating Profit+57 oku yen/ +12.3％ vs. PY+1.1+7 oku yen/ +11.4％ vs. PY

+0.7

+2.1

+25.2

+5.6

-0.5

+1.3

-1.5

Marginal profit fromincrease in RevPAR

+20.7

+6.1
Recoverd from

525

+9.6

disasters

+2.0

65

72

Increase in hugerenewal exp.

- 3.5

467

Others+1.0

FY3/19 Existing* FY3/19
facilities open

FY3/20open

KOR(Seoul)Others FY3/20

FY3/19 Existing* FY3/19 FY3/20 KOR Others FY3/20
facilities open
open (Seoul)* At the end of March, 201819

FY3/20 Forecast - Dormy Inn Business: Occupancy rate, ADR and RevPAR(Unit: thousand yen)Occupancy rate and ADR estimate by quarter vs. PY
ADR

OCC
91.6%

93.4%

90.9%

92.8%

90.8%
92.7%

92.1%
FY3/19:ADR
FY3/20:ADR

89.1%
11.3
10.9

11.7 12.0

Q1

Q2

11.3

89.8%
11.0

89.7%
11.0 11.2
10.3 10.5

FY3/19:OCC
FY3/20:OCC

FY3/19Q3

FY3/20

Q4

RevPAR estimate by quarter vs. PY
11.2
10.3
10.2

10.4

10.8

10.0

10.2

FY3/19:RevP AR

9.4
9.7

FY3/20:RevP AR

9.3

Q1

Q2

Q3

FY3/19Q4

FY3/2020

FY3/20 Forecast - Resort Business: Revenue and Operating Profit(Unit: oku yen=100 MM yen)

Revenue

Operating Profit+45 oku yen/ +14.5％ vs. PY+0.6 oku yen/ +4.1％ vs. PY

+1.5

+18.4

-7.0

+5.7
Marginal profit from

+0.8

increase in RevPAR

+18.5

+6.0
Recoverd from361

disasters

22 +2.3

+9.1

16

16

315

Decrease in fixed

cost & miscellaneous
exp.

16

16

17

FY3/20open

OthersFY3/20+2.5

Increase in hugerenewal exp.

-5.1

FY3/19

Existing*
facilities

FY3/19open

FY3/20
open

FY3/20FY3/19

Existing*
facilities

FY3/19open* At the end of March, 201821

FY3/20 Forecast - Resort Business: Occupancy rate, ADR and RevPAR(Unit: thousand yen)Occupancy rate and ADR estimate by quarter vs. PY
ADR
88.9%

83.6%
84.7%

83.1%

FY3/19:ADR

79.2%

FY3/20:ADR

40.0

42.4

44.4 46.7

42.0 43.6

41.0 41.9

Q3

Q4

83.9%
43.7

87.6%

79.3%
84.6%vs. FY18 Act3
Occupancy
rate and ADR estimate by quarter
83.0%

OCC

41.9

FY3/19:OCC
FY3/20:OCC

Q1

Q2

FY3/19FY3/20

RevPAR estimate by quarter vs. FY18 Act

41.5

36.7
36.9

33.6

35.5
FY3/19:RevP AR

34.8

38.9

31.7

35.1

34.0

FY3/20:RevP AR

Q1

Q2

Q3

Q4

FY3/19FY3/2022

FY3/20 Forecast - Other Business: Revenue and Operating(Unit: oku yen=100 MM yen)

Revenue: +12.1% vs. PY

Operating Profit : +6.2% vs. PY

23

Progress in Mid-term Management Plan (FY3/18-FY3/22)

Key quantitative targets of mid-term management plan and progress report
Name of MMP

Kyoritsu Jump Up Plan

Outline

1. Customer satisfaction improvement- Produce products and services that lead to better customer satisfaction, raise customers’ assessment of the Company and get greater trust

2. Advanced development- Expand business bases and build a solid business foundation

Key Quantitative Targets / Development Plan
Key Quantitative Targets

Starting FY for Mid-term Management Plan
(FY3/17)

Progress at the end of FY3/17

Final FY of Mid-term Management Plan
(FY3/22)

Revenue

1,358 oku yen

1,628 oku yen(CAGR: +10%)

2,200 oku yen(CAGR: +10%)

Operating Profit

118 oku yen

146 oku yen(CAGR: +11%)

190 oku yen(CAGR: +10%)

Net D/E Ratio

0.9x

0.8x

DPR

16.8%

18.3% - projection

Advance gradually to more than 20%

ROE

11.7%

12.6%

More than 10%

Starting point for Mid-term Management Plan

Progress at the end of FY3/17

Final FY of Mid-term Management Plan

(At the end of Mar, 2017)(FY3/18 - FY3/19 cummulative)(At the end of Mar, 2022)

Development Plan

Maintain lower than 1.0x
for securing financial health- Opened: 2,743 rooms
Dormitory

37,000 rooms- Already decided: Around 4,600 rooms

7,000 rooms(Progression rate: 66%)
- Opened: 3,109 rooms
Dormy Inn

9,800 rooms- Already decided: Around 8,900 rooms

9,000 rooms(Progression rate: 99%)
- Opened: 424 rooms
Resort2,200 rooms- Already decided: Around 1,250 rooms

1,400 rooms(Progression rate: 89%)

Note: oku yen=100 MM yen

25

Dormy Inn Business: RevPAR exceeding mid-term management plan across the board
RevPAR
113.0%

110.4%（Estimation）

111.0%
109.0%

Operating profit + 7 oku yen vs.
mid-term management plan in
FY3/22, if RevPAR in FY3/22 (thelast year of mid-term managementplan) is 110.4%

107.2%

107.0%

105.1%

105.0%
103.0%

100.0%

101.0%

Results

Mid-term Management Plan

99.0%
97.0%
FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22Visitors arrivals

FY17/3

FY18/324MM people+4.9MM（+19.9％）FY19/3+1.8MM（+6.2％）

29MM people

31MM people (Flash)

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Development plan of dormitories and hotels leading to sustainable growth
Development
Plan

FY3/18

FY3/19FY3/20FY3/21

FY3/22

Results

Results

Plan

Plan

Plan

Dormitory+10 facilities*

FY3/17 :Available facilities

463 facilities/37,000 rooms
MTMP**7,000 rooms+963 rooms*+15 facilities*

473 facilities

Available facilities

Around 4,600 rooms

Progression rate

66%
Dormy Inn
FY3/17 :64 facilities/10,200 rooms
MTMP**９,000 rooms→Already decided
Progression rate

99%
Resorts
FY3/17 :24 facilities/2,200 rooms
MTMP**1,400 rooms

Available facilities+5 facilities*

494 facilities

Available facilities+416 rooms*
497 facilities

Available facilities

497 facilities

88.5%

Lease ratio

88.5%

Lease ratio

88.2%

Lease ratio

88.2%

Lease ratio

88.2%

38,166 rooms

Available rooms

39,450 rooms

Available rooms

40,666 rooms

Available rooms

40,984 rooms

Available rooms

40,984 rooms

Noda ANNEX,[L]Tsunashimaekimae,
Higashiosaka, [L]Maihama,[L]Minamikoshigaya,[L]IrinakaⅡ, [L]Koroen etc.

[L]Sapporokita,[L]Waseda, [L]Hikifune,[L]Sendaihigashiguchi Ⅴ,[L]Keiotsunashima,[L]Motoyama, [L]Kobe,[L]Tsurugashima, Omoromachi,[L]Osakatenmangu, [L]Kagoshima, [L]Nippori,[L]Sapporoekihigashi,[L]Kaihinmakuhari, [L]Tokorozawa, [L]Ichigaya, Meidai global village,[L]Hakataekiminami Ⅱ,[L]Komagome,[L]Kokuraekimae etc.

[L]Setagayatodoroki etc.

[L]Sendaihigashiguchi,[L]Nagoyanisshin+9 facilities+1,571 rooms+9 facilities*+1,530 rooms*+8 facilities+1,842 rooms+11 facilities+2,437 rooms+7 facilities+1,581 rooms

Available facilities

72 facilities

Available facilities

80 facilities

Available facilities

88 facilities

Available facilities

99 facilities

Available facilities

106 facilities

Lease ratio

98.8%

Lease ratio

98.9%

Lease ratio

99.1%

Lease ratio

99.2%

Lease ratio

99.3%

Available rooms

11,811 rooms

Available rooms

13,248 rooms

Available rooms

15,090 rooms

Available rooms

17,527 rooms

Available rooms

19,108 rooms[L]PREMIUM Kanda,[L]Honhachinohe, [L]Osakatanimachi,[L]Korakuen, [L]Oita,[L]GLOBAL CABIN Suidobashi,[L]Kofumarunouchi, [L]Izumo,[L]EXPRESS Sendai-Seaside,[L]Nono Nara, [L]Kochi,[L]Matsuyama[L]GLOBAL CABIN Hamamatsu,[L]GLOBAL CABIN Yokohamachukagai,[L]Takamatsuchuokoenmae,[L]Maebashi, [L]Fukui,[L]Morioka, [L]Nono Asakusa,[L]Kawasaki, [L]Furano,[L]Mito, [L]Nono Kanazawa[L]PREMIUM Namba ANNEX,[L]Nono Kyotoshichijo, [L]Kobe,[L]PREMIUM Ginza,[L]Ikebukuro, [L]Nagasakiekimae,[L]Toyohashi,[L]Nono Sendai,[L]Tokyo bay(Toyosu),[L]Hiroshima ANNEX,[L]Nono Asakusabettei,[L]Gotenba, [L]Nono Matsue,[L]PREMIUM Osakakitahama[L]Nono Matsumoto,[L]Yokohama, [L]Fukuyama[L]Nono Yodoyabashi,[L]Okayama,[L]Nono Kumamoto+4 facilities+253 rooms+2 facilities+171 rooms+3 facilities+241 rooms+6 facilities+418 rooms+2 facilities+174 rooms

Available facilities

29 facilities

Available facilities

31 facilities

Available facilities

34 facilities

Available facilities

40 facilities

Available facilities

42 facilities

Lease ratio

58.7%

Lease ratio

60.2%

Lease ratio

61.7%

Lease ratio

65.6%

Lease ratio

71.9%

Available rooms

2,478 rooms

Available rooms

2,649 rooms

Available rooms

2,890 rooms

Available rooms

3,308 rooms

Available rooms

3,482 rooms

Keiun (Izumo),[L]La Vista Kirishima (Kagoshima), [L]Echigoyuzawa (Niigata),[L]La Vista Kusatsu (Gunma),[L]La Vista Hakodate bay

Tsukiyo no Usagi (Izumo),[L]Shirakawago (Gifu)[L]Nasushiobara Rengetsu(Tochigi),

ANNEX etc.

→Already decided[L]Le Chien Kyu-Karuizawa,

Around 1,250 rooms[L]Suiun (Gora)

Progression rate

485 facilities+1,506 rooms*

Lease ratio[L]Miyazaki,
Around 8,900 rooms+14 facilities*

Available rooms[L]Senjunakamachi,→Already decided+1,852 rooms*[L]Kotohira (Kagawa),
Inazumi (Akita)[L]Wakuraonsen (Ishikawa),
Kikuyabettei Suigetsu (Shizuoka)
etc.

89%
Lease ratio（Total）

89.4%

89.7%

89.7%

90.1%

90.7%

* The number of increase in development facilities/rooms (not available facilities/rooms at the end of FY) ** Mid-term Management Plan
(Note) Red-highlighted parts mean the development facility with higher inbound ratio than our average. Underlined parts mean the developing facilities for sales and lease back of realestate not only complied with but also planned. ［L］parts mean the facilities for lease.

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Stable hiring of personnel

Hiring of new
graduates

April 2019

April 2020

April 2021

296(Act)

300(Plan)

300～320(Plan)

Comprehensive work: 31
Hotel: 260
Senior Life Business: 5Comprehensive work: 22
Hotel: 270
Senior Life Business: 8Comprehensive work: 20
Hotel: 290
Senior Life Business: 10

Incl. foreign students: 57(Nepal, Vietnam, China, Republic of Korea)

No restriction on the number of foreigners hired
Hiring talented foreigners actively

Hiring route
We can get universities and colleges to introduce
many graduates to us with good relationship that wehave been building through our dormitory businesswith them

Breakdown of new employees
in April 2019

Others50.3%(149 people)

49.7%(147 people)

From universities andcolleges that used
our dormitories

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Awareness of our company■ Distributed corporate TV commercials to live broadcasting of the Hakone Ekiden and Izumo Ekiden– undoubtedly one of the well-known Ekiden races held in Japan■ Distributed corporate radio commercials to TBS radio through the program we sponsored■ Distributed TV commercials of Kyoritsu Resort “La Vista”
in Hokkaido area and Kyushu area
■ Acting as an official sponsor of the Japan Women’s Football League in 2019,
We have signed an official sponsorship agreement withthe“Nadeshiko League”, where strong and healthy womenshine brightly.
We will eagerly support popularization activities meant
to convey dreams of achievement and feelings ofinspiration from the hard-playing athletes inthe“Nadeshiko League”to as many people as possible.

■ Enhancement of IR activities - participating in various IR events- IR activities for domestic investors: Some briefing sessions for individual and institutional investors, participating in IR fairs
and one-on-one meeting with investors, etc.
- IR activities for overseas investors: IR Road Show, participating in some IR conferences - 5 times in FY3/19

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Further improvement in customer satisfaction■ Setting up and enhancement of comprehensive customer network-

Utilization of comprehensive customer database that leads to very kind hospitality
Customer data makes it possible to provide each customer with higher-quality service
Use historical information on usage by customer as an effective way of marketing and take thorough countermeasures to secure
customer information-

Designing a membership program so that customers can use our company over an extended period of time
Make most valued customers understand our business and service better/ Grant some privileges/services to them-Starting point program so that our customers can enjoy the benefits by using of our site to reserve our hotels
The number of members of our site: 550 thousand people (FY3/18 end) → 670 thousand people (FY3/19 end)
Arranged a tie-up with “d point” program produced by NTT DOCOMO – very easy to earn and use “points”※ Made “earning” and “using” d point service available in “November 2018” and “April 2019”, respectively■ Developed the application of “Domico” for residents of our dormitories- Gradually starting operation from April 2019-

Made it possible to apply for and cancel the board service at our dormitories on the day with simple
method “by mobile phone”-

In addition, made it possible to file the notification of sleepover with dormitory “by mobile phone”
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Important Notice
For the purposes of this notice, “presentation” means this document, any oral presentation, any question and answer session and any written or oral material discussed or
distributed by Kyoritsu Maintenance Co., Ltd. (“Kyoritsu”) during the presentation. This presentation (including any oral briefing and any question-and-answer in connection
with it) is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for,exchange, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the publicby means of this presentation.
The companies in which Kyoritsu directly and indirectly owns investments are separate entities. In this presentation, “Kyoritsu” is sometimes used for convenience wherereferences are made to Kyoritsu and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who workfor them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

Forward-Looking Statements
This presentation and any materials distributed in connection with this presentation may contain forward-looking statements, beliefs or opinions regarding Kyoritsu’s futurebusiness, future position and results of operations, including estimates, forecasts, targets and plans for Kyoritsu. Without limitation, forward looking statements often include
the words such as “targets”, “plans”, “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “will”, “may”, “should”, “would”, “could” “anticipates”, “estimates”,“projects” or words or terms of similar substance or the negative thereof. Any forward-looking statements in this document are based on the current assumptions and beliefsof Kyoritsu in light of the information currently available to it. Such forward-looking statements do not represent any guarantee by Kyoritsu or its management of future
performance and involve known and unknown risks, uncertainties and other factors, including but not limited to: the economic circumstances surrounding Kyoritsu’s business,
including general economic conditions in Japan and worldwide; competitive pressures and developments; applicable laws and regulations; decisions of regulatory authorities
and the timing thereof; natural disasters, any of which may cause Kyoritsu’s actual results, performance or financial position to be materially different from any future results,
performance, achievements or financial position expressed or implied by such forward-looking statements. Neither Kyoritsu nor its management gives any assurances that the
expectations expressed in these forward-looking statements will turn out to be correct, and actual results or performance could materially differ from expectations. Persons
receiving this presentation should not place undue reliance on forward looking statements. Kyoritsu undertakes no obligation to update any of the forward-looking statements
contained in this presentation or any other forward-looking statements it may make. Past performance is not an indicator of future results and the results of Kyoritsu in thispresentation may not be indicative of, and are not an estimate, forecast or projection of Kyoritsu’s future results.

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Further accelerating priority measures of FY3/18-FY3/22 Mid-term Management
Plan and delivering stellar results

Thank you!

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