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

First Half of Fiscal Year March 2015
Consolidated Earnings Results Update
November 2014

1

Kyoritsu Maintenance Consolidated Financial Data at a Glance
120,000

Consolidated Sales and YY Change

35%
30%

100,000

25%
80,00020%
60,00015%
40,00010%
20,0005%

0

0%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15Em

Consolidated Operating Income and YY Change
9,000

50%

8,000

40%

7,000

30%

6,000

20%

5,000
10%
4,000
0%

3,000

-10%

2,000

-20%

1,000
0

-30%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15Em

Consolidated Net Income and YY Change
4,500

140%

4,000

120%
100%

3,500

80%

3,000

60%
2,500
40%
2,000
20%
1,500

0%

1,000

-20%

500

-40%

0
m

-60%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15E(Units: Million Yen)2

160,000
140,000
120,000
100,000
80,00060,00040,00020,0000
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14

total assets

net assets(Units: Million Yen)

14.0%
12.0%
10.0%

8.0%
6.0%
4.0%
2.0%
0.0%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14
ROE

ROA

3

Construction,
2,464, 4%

Other, 3,478,
6%

Food Service,
2,566, 5%Contracted
Services,
5,623, 10%

Dormitories,
20,477, 36%

Hotels,
22,069, 39%

Business Segment Sales
1H FY3/14

Construction,
2172, 4%

Other, 4,445,
8%

Food Service,
2,623, 4%Contracted
Services,
5,499, 9%Dormitories,
20,976, 35%

Hotels,23,845, 40%

Business Segment Sales
1H FY3/15(Units: Million Yen)4other benchmarks
ROE
ROA
equity ratio
Units: million yen

margins
gross margins
operating margins
ordinary margins
net margins

yy change
net sales
gross income
operating income
ordinary income
net income

Consolidated Balance S heetcurrent assets
fixed assets
total assets
current liabilities
fixed liabilities
total liabilities
net assets

Consolidated Income S tatement
net sales
gross income
operating income
ordinary income
net income

11.3%
2.7%
24.3%

18.8%
7.6%
7.6%
4.0%

7.3%
3.3%
10.1%
8.6%
9.6%

23,25462,336
85,62031,58533,07764,663
20,788

3/05
58,014
10,894
4,407
4,411
2,343

7.9%
2.1%
26.0%

18.7%
7.3%
7.6%
3.2%

8.7%
8.2%
4.6%
9.4%
-14.2%

23,35074,681
98,04744,03928,31672,35525,512

3/06
63,085
11,783
4,611
4,824
2,011

8.9%
2.2%
24.5%

18.5%
5.6%
5.7%
3.6%

5.1%
3.9%
-18.8%-21.5%
20.0%

24,901
85,562
110,50737,342
46,06883,411
27,096

3/07
66,287
12,242
3,745
3,787
2,413

9.9%
2.4%
23.8%

18.8%
5.9%
5.5%
3.6%

14.1%
15.9%
19.9%
10.0%
13.6%

19,967
95,728
115,738
44,11944,07988,19927,5383/08
75,60614,183
4,492
4,167
2,740

7.4%
1.7%
23.0%

18.8%
6.5%
5.5%
2.6%

8.9%
9.3%
19.1%
8.2%
-22.2%

21,852
103,891
125,793
41,61555,26696,882
28,911

3/09
82,303
15,507
5,349
4,510
2,133

4.2%
0.9%
21.4%

16.5%
4.8%
3.6%
1.5%

2.7%
-10.0%-24.6%-33.2%-41.2%

23,104
115,980
139,20941,49967,956
109,455
29,753

3/10
84,513
13,957
4,033
3,012
1,254

3.5%
0.7%
21.3%

18.1%
5.4%
3.9%
1.2%

0.6%
10.4%
14.3%
9.8%
-16.1%

36,783
104,428
141,31450,54660,600111,147
30,166

3/11
84,983
15,408
4,610
3,308
1,052

7.7%
1.9%
25.1%

19.6%
6.6%
5.0%
2.6%

7.3%
15.9%
30.5%
39.1%
125.7%

28,234
97,319125,649
38,961
55,13594,09731,551

3/12
91,17017,863
6,017
4,602
2,376

9.7%
2.6%
28.4%

20.0%
6.6%
5.6%
3.2%

9.1%
11.5%
8.4%
21.7%
34.9%

30,852
91,335
122,259
38,892
48,58487,47634,782

3/13
99,472
19,910
6,521
5,599
3,206

11.0%
2.9%
26.2%

20.5%
7.1%
6.5%
3.6%

5.8%
8.1%
14.9%
21.4%
19.4%

37,47394,434
131,995
40,81956,586
97,40534,5903/14
105,216
21,524
7,490
6,796
3,821

3/15E
* 1H FY3/14 1H FY3/15
112,100 *51,62453,574na *
10,955
11,8197,940 *
4,127
4,519
7,100 *
3,758
4,221
4,000 *
2,190
2,726
*
*
na *
25,052
28,910na *92,34999,302na *117,468
128,293na *38,467
39,200na *45,93551,673na *84,40290,873na *
33,06537,419**6.5% *
9.1%
3.8%
na *
8.4%
7.9%
6.0% *
13.0%
9.5%
4.5% *
23.7%
12.3%
4.5% *
35.3%
24.5%
*
*
na *
21.2%
22.1%
7.1% *
8.0%
8.4%
6.3% *
7.3%
7.9%
3.6% *
4.2%
5.1%
*
*
na *
na
na
na *
na
na
na *
28.1%
29.2%
*

5

First Half of Fiscal Year March 2015 Consolidated Earnings Announcement
November 7, 2014

Company Name: Kyoritsu Maintenance Co., Ltd.
Tokyo Stock Exchange
Stock Code: 9616, URL: http://www.kyoritsugroup.co.jp/
Director: Mitsutaka Sato, President
Contact: Takumi Ueda, Vice President, Tel: +81-3-5295-7778
Quarterly Earnings Announcement Report Filing Date (Anticipated): November 13, 2014
Dividend Payment Date (Anticipated): December 5, 2014
Quarterly Earnings Presentation Document (Anticipated): Available
Quarterly Earnings Presentation Meeting (Anticipated): Available (For institutional investors and analysts)(All figures of less than one million yen are rounded down to the nearest digit)
1. First Half of Fiscal Year March 2015 Consolidated Earnings (April 1, 2014 to September 30, 2014)(1) Consolidated Earnings (Aggregated)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen％

Million yen％

Million yen％

Million yen％

53,574

3.8

4,519

9.5

4,221

12.3

2,726

24.5

1H FY3/14
51,624
9.1
4,127
13.0
3,758
23.7
2,190
(Note) Comprehensive income: ¥3,128 million (37.3% yy) in 1H FY3/15, ¥2,279 million (37.6% yy) in 1H FY3/14

35.3

1H FY3/15

EPS

Fully Diluted EPS
Yen

Yen

1H FY3/15

209.11167.581H FY3/14

164.08―(2) Consolidated Financial Position
Total Assets

Equity Ratio

Book Value Per Share

Million yen

Million yen％

Yen

128,293

37,41929.2

2,870.29

131,995
34,590¥37,419 million in 1H FY3/15, ¥34,590 million in FY3/14

26.2

2,653.13

1H FY3/15
FY3/14(Note) Capital:

Net Assets

2. Dividend Conditions
Dividend Per Share
1Q End2Q EndYen

3Q EndFY3/14

―

Yen
21.00

FY3/15―24.00

FY3/15 (Projected)(Note) Recent changes in dividend projections: None

4Q End
Yen

Total

―

Yen
27.00

Yen
48.00

―

24.00

48.00

Net Income

EPS

3. Fiscal Year March 2015 Consolidated Earnings Estimates (April 1, 2014 to March 31, 2015)
Net Sales

Operating Income

Ordinary Income％

Million yen％

Million yen％

Million yen％

Yen

Full Year112,100
6.5(Note) Recent changes in earnings estimates:

7,940
None

6.0

7,100

4.5

4,000

4.5

306.81Million yen

6Notes(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(2) Application of special accounting procedures in the preparation of our quarterly consolidated financial statements:(3) Changes in the accounting policies, procedures, and changes or revisions in the display of accounting estimates:① Changes accompanying revisions in accounting standards:
Applicable② Other changes:
None③ Changes in accounting estimates:
None④ Redisplay of revisions:
None
(4)

Shares Issued (Common Stocks)① Shares issued as of term end (including treasury shares)

1H FY3/15
1H FY3/15
1H FY3/15② Treasury Stock as of term end③ Average during the term

15,125,582
2,088,856
13,037,172

FY3/14
FY3/14
1HFY3/14

Applicable

15,125,582
2,088,126
13,348,931

 Information Regarding Quarterly Review Practices:
The practices for review of quarterly consolidated earnings statements pursuant to the “Financial Instruments and Exchange Act” ofJapan have not been conducted for the disclosure of this document.
 Notes and explanations regarding the appropriate uses of our earnings projections:
All projections provided within this document are based on the most accurate information available at the time of this writing.
However our actual results may differ from our projections due to various unforeseen reasons.
With regards to qualitative information regarding our quarterly earnings, please refer to the segment of this document “(3)Explanation of Our Earnings Estimates and Future Forecasts”.
We provide this information in our quarterly earnings results explanation materials available on our website.

7

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
Index
1. Qualitative Information about Quarterly Earnings

9(1) Explanation of Business Performance

9(2) Explanation of Financial Position

10(3) Consolidated Earnings Estimates and Forward- Looking Forecast Information

10

2. Summary Information (Notes)

10(1) Changes in Important Consolidated Subsidiaries during the Quarter

10(2) Implementation of Special Accounting Methods in the Creation of
Quarterly Consolidated Financial Statements(3) Revision in Accounting Methods, Revisions and Redisplay of Accounting Estimates10

3. Quarterly Consolidated Financial Statements

12(1) Quarterly Consolidated Balance Sheets

12(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement

14

Quarterly Consolidated Income Statement
Consolidated First Half

14

Quarterly Consolidated Comprehensive Income Statements
Consolidated First Half

15(3) Quarterly Consolidated Cash Flow Statements

16(4) Quarterly Consolidated Financial Statement Notes

18(Notes Regarding Going Concern Assumptions)18(Significant Changes in Shareholders’ Equity Notes)

18(Segment Information)

18

8

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
1. Qualitative Information about Quarterly Earnings(1) Explanation of Business Performance
During the first half of the current fiscal year, the Japanese economy continued to recover gradually on the back ofGovernment stimulatory monetary and financial policies. However, the economic horizon remains clouded by thepotential for prolonged weakness in consumption resulting from the extraordinary demand caused by the rush to buy
ahead of the consumption tax hike and weakness in overseas economies. Against this backdrop, our main dormitory
business got off to a good start with occupancy rates rising by 0.2% points to 97.2% at the start of the term. Furthermore,both the Dormy Inn (Business hotels) and resort hotel sub-segments saw favorable occupancy rates that trended above theprevious year’s levels. Consequently, sales rose by 3.8% year-on-year to ¥53.574 billion and operating, ordinary and net
incomes rose by 9.5%, 12.3%, and 24.5% to ¥4.519, ¥4.221, and ¥2.726 billion respectively, exceeding initial estimates andachieving new record highs for profits.
We provide details of our earnings by business segment as follows.
Dormitory BusinessOccupancy rates in our dormitory business got off to a good start of the term, rising 0.2% points from the previous term to
97.2%, with the number of contracted residents rising by 623 from the end of the September 2013 to 31,107 at the end of
September 2014. During the first half, student dormitories trended favorably and corporate dormitories also trended
strongly on the back of increased hiring of employees and due to the reintroduction of dormitory usage by a growing
number of Japanese companies. Consequently, sales and operating income rose by 2.4% and 5.0% year-on-year to¥20.976 and ¥2.691 billion respectively.
Hotel BusinessIn the Dormy Inn business hotels, the “Natural Hot Spring Satsuki no Yu Dormy Inn EXPRESS Kakegawa” and the“Natural Hot Spring Yugiri no Yu Dormy Inn PREMIUM Namba”, which were opened in the previous term, trended
strongly. In addition, existing facilities saw high occupancy rates. Moreover, the number of inbound travelers fromoverseas using Kyoritsu’s facilities continued to grow with “Natural Hot Spring Yugiri no Yu Dormy Inn PREMIUM
Namba” seeing the largest number of inbound travelers. In the resort hotel sub-segment, both the “Inishie no Yado Ikyu”
resort hotel facility opened in the previous term and existing facilities benefitted from highly detailed marketing measuresand saw increases in their occupancy rates over the previous term. Consequently, these developments were able toovercome the negative impact of large typhoons and torrential rains that plagued Japan during the period and allowed
hotel business sales and operating income to rise by 8.0% and 15.8% year-on-year to ¥23.845 and ¥3.120 billion
respectively.
Contracted Services BusinessIn our contracted services business, the sale of self owned properties in the previous term contributed to a decline in rental
income, but profits were able to rise despite the lower sales. While sales declined by 2.2% year-on-year to ¥5.499 billion,
operating income improved by ¥97 million from a loss in the previous first half to a profit of ¥76 million in the current first
half.
Food Service Business
The food service business continued to suffer from difficult operating conditions due to increases in material prices anddelays in a recovery in consumption due to the prolonged effect of the consumption tax hike. However, strict andeffective cost controls allowed profits to improve by ¥51 million from the loss in the previous first half to a marginal
operating loss of less than ¥1 million on the back of a 2.2% year-on-year increase in sales to ¥2.623 billion.
Construction BusinessIn our construction business, a rapid rise in development costs contributed to delays in some construction projects.
Consequently, sales fell by 11.8% year-on-year to ¥2.172 billion and an operating loss of ¥7 million was recorded (A ¥32
million decline in operating income).
Other Business
Our other business is comprised of the Wellness Life business (Management of senior citizen housing), the PKP business(Consigned services business provided to regional government bodies), single life support and insurance agency business,
comprehensive human resource service business, and financing services and administrative outsourcing services. Sales ofthis business rose by 27.8% year-over-year to ¥4.445 billion, but an operating loss of ¥197 million was incurred (An ¥86

9Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
million yen worsening from the previous first half).
(2) Explanation of Financial Position(Assets, Liabilities, Net Asset Conditions)
Total consolidated assets declined by ¥3.702 billion from the end of the previous fiscal year to ¥128.293 billion at the end of
the current first half, due primarily to a drop in cash and equivalents.
(Liabilities)
Total consolidated liabilities declined by ¥6.531 billion from the end of the previous fiscal year to ¥90.873 billion at the endof the current first half, due primarily to a decline in prepayments received.
(Net Assets)
Net assets grew by ¥2.829 billion from the end of the previous fiscal year to ¥37.419 billion at the end of the first half.
The main reason for this increase was a rise in retained earnings. Consequently, equity ratio rose by 3.0% points from theend of the previous term to 29.2% at the end of the first half.
Cash Flow Conditions
Cash and equivalents declined by ¥9.652 billion from the end of the previous fiscal year to ¥14.097 billion at the end of thecurrent first half.
(Operating Cash Flow)
The net cash outflow from operating activities increased by ¥330 million from the previous first half to ¥1.538 billion in thecurrent first half due to an increase in inventories and a decline in prepayments received.
(Investing Cash Flow)
The net outflow of cash from investing activities grew by ¥2.653 billion from the first half of the previous term to ¥5.566
billion in the current first half due to payments for security deposits and other deposits and for acquisition of tangible
noncurrent assets.
(Financing Cash Flow)
The net cash outflow from financing activities rose by ¥2.286 billion from the previous first half to ¥2.653 billion in thecurrent first half due to a net repayment of long term debt.
(3) Consolidated Earnings Estimates and Forward- Looking Forecast Information
With regards to our consolidated earnings estimates, our outstanding consolidated earnings estimates for the full fiscal year
to March 2015 announced on May 15, 2014 remain unchanged.

2. Summary Information (Notes)(1) Changes in Important Consolidated Subsidiaries during the Quarter
Not applicable(2) Implementation of Special Accounting Methods in the Creation of Quarterly Consolidated Financial Statements(Calculation of tax expense)
With regards to taxes, a rational estimate of the effective tax rate has been used to calculate the tax effect accounting for net
income before taxes during the first half, and this rate has been applied to net income before taxes. However, in the eventthat the estimate for the effective tax rate appears to lack logical rationale, then the legally determined effective tax rate will
be employed.
(3) Revision in Accounting Methods, Revisions and Redisplay of Accounting Estimates
Changes in Accounting Policies(Application of Accounting Standards with Regards to Retirement Benefit)
With regards to the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26 on May 17, 2012) and Guidanceon Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25 on May 17, 2012), our Company has applied thetext in Paragraph 35 of the Accounting Standard for Retirement Benefits and the text in Paragraph 67 of the Guidance on
Accounting Standard for Retirement Benefits from the first half of the fiscal year under review, revising its method of
calculating retirement benefit obligations and prior service costs. The method of attributing expected benefit has beenchanged from a straight-line basis to a benefit formula basis. Also, the method of determining the discount rate has beenchanged from one using as the basis for calculation discount rates for periods similar to employees’ average remaining

10

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
service period to a method employing a single weighted average discount rate reflecting expected retirement benefit periods
and payment amounts corresponding to each period.
Regarding the application of the Accounting Standard for Retirement Benefits, in accordance with the transitional treatment
stipulated in paragraph 37, from the beginning of the first half of the fiscal year under review the amount of change
resulting from the method of calculating retirement benefit obligations and prior service costs is added to or deducted fromretained earnings.
As a result, liabilities related to retirement benefits declined ¥86 million at the beginning of the first half of the fiscal year
under review, and retained earnings increased ¥55 million. Furthermore, operating income, ordinary income, and income
before income taxes each increased ¥6 million

11

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet
FY3/14(March 31, 2014)
AssetsCurrent assets
Cash and equivalents
Notes, accounts receivable
Real estate for sale
Uncompleted real estate for sale
Uncompleted construction payment
OthersDoubtful account reserves
Total current assets
Fixed assets
Tangible Fixed assets
Buildings, structures
Land
Others (Net)
Total tangible fixed assets
Intangible noncurrent assets
Investments, other assets
Investment securities
Security deposits
Deposits
OthersDoubtful account reserves
Total investments, other assets
Total fixed assets
Deferred assets
Total assets

12(Units: Million Yen)
1H FY3/15(September 30, 2014)

24,707
4,986
257
372
314
6,862
-26
37,473

14,955
5,438
239
1,321
678
6,301
-25
28,91029,84324,891
6,270
61,0051,890

32,01025,512
6,908
64,431
1,859

5,888
11,481
8,574
5,789
-195
31,53894,434
87
131,995

6,140
11,782
8,755
6,525
-192
33,01199,302
80
128,293

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement(Units: Million Yen)
1H FY3/15(September 30, 2014)

FY3/14(March 31, 2014)
Liabilities
Current liabilities
Notes, accounts payable
Short term debt
Bond, portion redeemable within 1 year
Unpaid corporate taxes
Prepayments
Bonus reserves
Director bonus reserves
Completed construction guarantee reserves
OthersTotal current liabilities
Fixed liabilities
Bonds
Convertible bonds with stock options
Long term debt
Director retirement benefit reserve
Point reserve
Retirement benefit reserve related liabilities
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital reserves
Retained earnings
Treasury stock
Total shareholders’ equity
Other comprehensive income, aggregated
Other marketable securities valuation gains
Foreign exchange translation provisions
Retirement reserve related
Total other comprehensive income, aggregatedTotal net assets
Total liabilities and net assets

13

3,908
15,3281,150
1,940
11,091
1,148
294
11
5,945
40,8193,377
17,981
1,150
1,583
8,413
830
164
11
5,688
39,2006,300
15,00029,772
311
16
1,178
4,006
56,586
97,405

5,725
15,00025,432
306
25
1,128
4,055
51,67390,873

5,136
5,943
28,892-5,471
34,5005,136
5,943
31,322-5,47436,927

-29
99
20
89
34,590131,995

338
141
11
492
37,419128,293

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement(Quarterly Consolidated Income Statement)(Consolidated First Half)

Net Sales
CGS
Gross income
SG&A
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange translation gains
OthersTotal non-operating income
Non-operating expense
Interest payment
OthersTotal non-operating expense
Ordinary income

1H FY3/14(April 1, 2013 to
September 30, 2013)
51,624
40,66910,955
6,828
4,127(Units: Million Yen)
1H FY3/15(April 1, 2014 toSeptember 30, 2014)
53,57441,755
11,819
7,299
4,519

50
23
116
135
325

44
23
185
84
337

542
151
694
3,758

448
187
636
4,221

－
－

93
93

－
13
13
3,744
1,554
2,190
2,190

17
－
17
4,297
1,571
2,726
2,726

Extraordinary income
Compensation received
Total extraordinary income
Extraordinary loss
Fixed asset liquidation loss
Dismantlement costs
Total extraordinary loss
Net income before taxes
Taxes
Net income before minority interests
Net income

14Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
Quarterly Consolidated Comprehensive Income Statements
Consolidated First Half

Net income before minority interests
Other comprehensive income
Other marketable securities valuation gains
Foreign exchange translation provisional account
Retirement of retirement benefits
Total other comprehensive income
Quarterly comprehensive income(Details)
Comprehensive income of parent company
Comprehensive income of minority shareholdings

15

1H FY3/14(April 1, 2013 to
September 30, 2013)
2,190(Units: Million Yen)
1H FY3/15(April 1, 2014 toSeptember 30, 2014)
2,726

54
34
－
89
2,279

368
42
-8
402
3,128

2,279
－

3,128
－

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement(3) Quarterly Consolidated Cash Flow Statements
1H FY3/14(April 1, 2013 to
September 30, 2013)
Cash flow from operating activities
Net income before taxes
Depreciation, amortization
Amortization of long term prepayments
Amortization of security deposits
Change in bonus reserves
Interest, dividends received
Interest paid
Fixed asset impairment, sale income
Change in account receivables
Change in outstanding income
Change in inventories
Change in payables
Change in prepayments
Change in prepayments received
Change in unpaid consumption tax
Change in deposits received
Change in security deposits received
Change in advances received
OthersSubtotalInterest, dividends received
Interest payment
Corporate, other tax returns
Corporate, other tax payment
Cash flow from operating activities
Cash flow from investing activities
Acquisition of marketable securities
Sale of marketable securities
Acquisition of tangible fixed assets
Sale of tangible fixed assets
Acquisition of intangible fixed assets
Loans extended
Loans recovered
Payment of deposits, security deposits
Return of deposits, security deposits
Payment into insurance reserves
Redemption of insurance reserves
OthersCash flow from investing activities

16(Units: Million Yen)
1H FY3/15(April 1, 2014 toSeptember 30, 2014)

3,744
1,375
70
105
-314
-74
542
3
1,847
563
-469
-1,641-3,264
-68
-397
-787
-88
-71
-160
913
19
-549
0
-1,591-1,208

4,297
1,523
135
114
-318
-67
448
18
-452
514
-1,201-522-2,678
-317
687
-634
27
-71
-858
644
38
-445
1
-1,776-1,538－390-2,215
0
-33
-220
145
-589
43
-416
38
-57
-2,913-100
318-5,100
362
-43
-828
930
-597
77
-489
1
-98
-5,566

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement

1H FY3/14(April 1, 2013 to
September 30, 2013)(Units: Million Yen)
1H FY3/15(April 1, 2014 toSeptember 30, 2014)

Cash flow from financing activities
Change in short term debt
Assumption of new long term debt
Repayment of long term debt
Payment for redemption of bonds
Treasury stock acquisition
Dividend payment
OthersCash flow from financing activities
Translation gains in cash and equivalents
Change in cash and equivalents
Cash and equivalents at term start
Cash and equivalents at term end

4,600
3,600
-3,964-575-3,658
-336
-33
-367
110
-4,378
16,665
12,28617

3,750－-5,437
-575
-3
-352
-36
-2,653105-9,652
23,75014,097

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement(4) Quarterly Consolidated Financial Statement Notes(Notes Regarding Going Concern Assumptions)Not applicable(Significant Changes in Shareholders’ Equity Notes)
Not applicable(Segment Information)
Segment information
I. First Half of Fiscal Year March 2014 (From April 1 to September 30, 2013)
1. Information pertaining to segment sales, operating income and losses(Units: Million Yen)
Reported Segments

Others(Note 1)

Total

Adjustments(Note 2)

Consolidated(Note 3)

Dormitories

HotelsContracted
Services

Food
Services

Construction

Subtotal

20,40322,027

3,465

782

1,655

48,3343,290

51,624－

51,624

74

42

2,158

1,784

808

4,867

188

5,055

-5,055－20,47722,069

5,623

2,566

2,464

53,202

3,478

56,680-5,05551,624

2,564

2,694

-20

-51

25

5,212

-110

5,101

-974

4,127

Sales
External sales
Internal sales andtransfers
Total
Operating income(Note)

1. Others is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business provided to regional government bodies), single life
support services, insurance agency business, comprehensive human resources, financing and advertising agency
services.
2. Adjustment for segment profit and loss of ¥974 million includes ¥2 million for inter-segment transaction eliminations,and ¥976 million in companywide expenses which cannot be allocated to specific reported segments. Companywide
expenses are primarily those expenses arising from the finance and accounting, and management divisions.
3. Segment profits or losses are derived by adjusting the operating income used in the quarterly consolidated income
statement.

2. Impairment accounting losses and goodwill amortization of fixed assets by reported segments
None

18

Kyoritsu Maintenance (9616), 1H FY3/15 Earnings Announcement
II. First Half of Fiscal Year March 2015 (From April 1 to September 30, 2014)
1. Information pertaining to segment sales, operating income and losses(Units: Million Yen)
Reported Segments

Others(Note 1)

Total

Adjustments(Note2)

Consolidated(Note3)

Dormitories

HotelsContracted
Services

Food
Services

Construction

Subtotal

External sales

20,86023,793

2,968

724

988

49,334

4,239

53,574－53,574

Internal sales andtransfers

115

52

2,530

1,899

1,184

5,782

205

5,988

-5,988－20,976

23,845

5,499

2,623

2,172

55,117

4,445

59,562-5,98853,574

2,691

3,120

76

-0

-7

5,880

-197

5,683

-1,163

4,519

Sales

Total
Operating income(Note) 1. Other is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business provided to regional government bodies), single life
support services, insurance agency business, comprehensive human resources, financing services and other related
services
2. Adjustment for segment profit, loss of ¥1,163 million includes ¥51 million for inter-segment transaction eliminations,and ¥1,111 million in companywide expenses which cannot be allocated to specific reported segments. Companywide
expenses are primarily those expenses arising from the finance and accounting, and management divisions.
3. Segment profits, losses are derived by adjusting the operating income used in the quarterly consolidated income
statements.

2. Impairment accounting losses and goodwill amortization of fixed assets by reported segmentsNone19