Echigo Yuzawa hot Spring Yukemuri no Yado Yuki no Hana

Yumegurinoyado Katsuragawa at Shuzenji Hot Springs

Explanation of Financial Results for the Second
Quarter of the Fiscal Year Ending March 2021

November, 2020

9616

Agenda01

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

P. 2

02

Projected results for FY 3/21

P.18

03

Medium-term management plan

P.22

1

La Vista Furano Hills

Summary of
Financial Results for
the Second Quarterof the Fiscal YearEnding March 2021

Hosei University Komagome
Dormitory

2

Executive Summary
Consolidated operating income returned to the black in July-September, as the Hotels Business recovered➢

In the Dormitory Business segment, despite lower occupancy rates at the start of the period due to decreased
demand from international students and for new-employee training as a result of COVID-19, some companies havebegun new-employee training that had been postponed by the pandemic and universities began to move toward1

reopening in-person classes and other activities.
➢

The Hotels Business segment showed considerable improvement in revenues compared to Q1, as domestic demand
recovered due to the easing of stay-at-home orders since June and the effects of the "Go To" travel campaign and theCompany's unique new products introduced in response to COVID-19.

➢

With an eye toward future growth, businesses will be revised in order to realize further structural enhancement,

including closure of one facility in South Korea and of the Global Cabin business.

Projected full-year business results and projected dividends➢

While a clear recovery trend is apparent as a rebound from the first quarter, in consideration of the future impacts of
COVID-19 net sales are projected to be 132 billion yen, while operating loss is projected at 3 billion yen.

2➢

Midyear dividends are projected to be 10 yen/share based on the Company's fundamental stance of providing steadyand stable long-term returns to shareholders. Year-end dividends have not yet been determined.

3

FY 3/21 H1 Consolidated Financial Results and KPIs
(Unit: 100 million yen)

FY 3/20

FY 3/21

H1 ActH1 Act(2019/4-9) (2020/4-9)

Q1 ActYoY change

Q2 Act(2020/4-6) (2020/7-9)

Net sales

938.1

562.5

-375.6-40.0%

236.0

326.4

Operating income

90.6

-44.8

-135.5

-

-45.2

0.3

Ordinary income

89.7

-44.8

-134.5

-

-48.0

3.1

Net income

61.1

-78.5

-139.7

-

-64.2

-14.3

EPS (JPY)

156.8-201.4-358.3--164.7-36.7

Capital investment

110.4

46.8

-63.5

-57.6%

26.0

20.7

Depreciation expense

25.0

25.7

+0.7

+2.9%

12.7

13.0

Cash flow*

86.2

-52.7

-138.9

-

-51.5

-1.2

Net D/E Ratio

0.8x

1.3x

+0.4x

-

-

-

* Cash flow: Net profit + depreciation
4

FY 3/21 H1 sales and operating income broken down by segment(Unit: 100 million yen)

Net sales

FY3/20 Q1

130

121

Operating income

FY3/21 Q1

FY3/20 Q1

133

121

20.8

123

15.7

20.1

3.4

3.1

77

Q1

-3.3

29

Dormitory

Dormy Inn

12
Resorts-19.5
Others-36.5
Dormitory

FY3/20 Q2

FY3/21 Q2
169

Q2

FY3/21 Q1

121

113

131

Dormy Inn

Resorts

FY3/20 Q2

FY3/21 Q2

27.6
126

17.5

11.6

8.2

96
70

Others

14.3
3.1

6.1

71

-14.5

Dormitory

Dormy Inn

Resorts

Others

Dormitory

Dormy Inn

Resorts

Others5

Dormitory Business: FY 3/21 H1 Net sales and operating income
Net sales

Operating income

Net sales decreased by 1.71 billion yen(6.8%) from the previous period

Newly opened:(Rooms)Hokudai Avenue

125

Nippori49

Azabu-Juban

72

Komazawa Koen

95

Hyakumanben Annex

162

Ezaka Koen

60

Yokohama-Nishi

77

Others541

Total

15facilities

1,181(Unit: 100 million yen)

Operating income decreased by 1.09 billion
yen (28.6%) from the previous period

Rent reduction +0.6
Other
+1.1

6

Dormitory Business: Trends in initial number of leased units/occupancy rate
Trend in initial number of leased units (by category)This was due mainly todecreased demand for newemployee training as a resultof the novel coronavirus(Rooms)40,089(+1,709)40,00030,000

4,586

4,810

5,097

8,682

9,387

10,068

5,263
11,312

5,293
12,08538,898(-1,191)

5,531

5,673

13,266

12,405(-861)(+1,181)

DomealEmployee

20,00010,00020,212

20,534

20,685

20,520FY 3/15FY 3/16

FY 3/17

FY 3/18*

21,002*
21,292*(+290)

20,820(-472)

FY 3/20

FY 3/21

dormitory
Student dorm

0*International students included above

FY 3/19

2,660(12.7%) 3,079(14.5%) 2,466(11.8%)

Trend in initial occupancy rate
(%)
97.2

97.3

98.3

98.3

97.7

98.7

As a result of the
impact of the novel
coronavirus,
international
students' arrivals inJapan have been
postponed, leading
to a decrease in theinitial number ofleased units

93.7

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/217

Dormy Inn Business: FY 3/21 H1 Net sales and operating income
Net sales

Operating income

Net sales decreased by 15.18 billion yen(60.2%) from the previous period(Unit: 100 million yen)

Operating income decreased by 9.88
billion yen from the previous period

Rent reduction +3.2
Other
+2.6
Facilities opened in FY3/20+18.6(Not including impact of COVID-19)
Facilities subjected to large-scale repairs
in the previous period+0.9Natural disaster in the previous period +0.6

8

Dormy Inn Business: Monthly trends in Occupancy Ratio and Average Daily Rate
FY 3/20:Average Daily Rate

FY 3/21:Average Daily Rate

FY 3/20:Occupancy Ratio

FY 3/21:Occupancy Ratio(Unit: Thousand yen)
100.0%

30.0

90.0%
90.3%

89.1%

91.6%

90.3%

95.5%

92.7%

93.6%

93.8%

81.8%

80.0%

82.3%

89.9%

76.8%

70.0%

70.7%

70.8%

60.0%

20.0

* Preliminary figures
for October

63.2%

55.5%

50.0%
40.0%

25.0

85.8%

30.6%

30.0%

15.0

10.0

27.2%

20.0%

5.0

10.0%
0.0%

0.0
Apr

May

Jun

Jul

Aug

Sep

Annualcumulative
total

Occupancy Ratio

Oct

Nov

Dec

Jan

Feb

(Unit: Thousand yen)

Average Daily Rate
Q1

Q2

H1

Q3

Q4

FY 3/20(actual results)

89.9%

93.3%

91.6%

92.4%

74.3%

FY 3/21(actual results)

42.7%

70.2%

YoY change-47.2pp-23.1pp

87.5%

Mar

Q1

Q2

H1

Q3

FY 3/20(actual results)

11.1

11.2

11.1

57.2%

FY 3/21(actual results)

6.1

7.9

7.3

-34.4pp

YoY change

-4.9

-3.3

-3.8

10.5

Annualcumulative
total

Q4
9.0

10.5

(Note) The table above shows figures not including hotels that opened in April 2019 or later (to enable comparison between the two periods under similar conditions)9Dormy Inn Business: RevPAR by month(Unit: Thousand yen)

FY 3/20:RevPAR

FY 3/21:RevPAR

14.0
11.5

12.0
10.4

10.2

10.0

10.0

9.4

10.2

9.9

9.7

8.9
8.2

8.0

7.8

7.0
6.0

6.3

4.0

5.1

5.2

Jul

Aug

* Preliminary figures
for October

4.1

4.1
2.0

2.0

1.6

0.0
Apr

May

Jun

Sep

Oct

RevPAR

Nov

Dec

Jan

Feb

Mar

(Unit: Thousand yen)

Q1

Q2

H1

Q3

FY 3/20(actual results)

10.0

10.4

10.2

FY 3/21(actual results)

2.6

5.5

4.1

YoY change

-7.4

-4.9

-6.0

Annualcumulative
total

Q4
9.7

6.7

9.2

(Note) The table above shows figures not including hotels that opened in April 2019 or later (to enable comparison between the two periods under similar conditions)10Dormy Inn Business: the number of guests of Dormy Inn
The number of Inbound guests -Dormy Inn
The number of Domestic guests -Dormy Inn
The number of Domestic guests YOY - Dormy Inn(Thousand guest nights)
1,000

800

128.0%

110.4%

107.3%
99.9%

86.6%

600

100%

* Preliminary figures
for October

172

400

166

178

168

169

188

149

175

177

172

102

44.6%

42

34.5%

200

332

316
141

311
115

343 368

402

348

348

384

435
340

336

334

328

318

265

312

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

FY 3/20 (actual results)
FY 3/21 (actual results)
YOY change

316

May

Feb

FY3'21FY3'20FY3'21FY3'20Jan

The number of Domestic guests - Dormy Inn
Apr

FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'21FY3'20FY3'210%

FY3'200Mar(Thousand guest nights)

Jun

Jul

332

312

Aug

343

402

Sep
348

Oct
340

141

115

311

368

348

384

435

-175

-217

-0

+25

-54

+36

+95

44.6%

34.5%

99.9% 107.3%

Nov
336

Dec
334

Jan
318

Feb
328

Mar
265

Annualcumulative
total
3,974

86.6% 110.4% 128.0%

11

Resorts Business: FY 3/21 H1 Net sales and operating income(Unit: 100 million yen)

Net sales

Operating income

Net sales decreased by 9.03 billion yen(51.9%) from the previous period

Facilities opened in FY3/20(Not including impact of COVID-19)

Operating income decreased by 2.14
billion yen from the previous period+7.8

Facilities subjected to large-scale repairs -0.7
Natural disaster in the previous period
Other

+2.0

Rent reduction
Other

+2.9
+2.8

+0.3

12

Resorts Business: Monthly trends in Occupancy Ratio and Average Daily Rate
FY 3/20:Average Daily Rate

FY 3/21:Average Daily Rate

FY 3/21:Occupancy Ratio(Unit: Thousand yen)

94.4%

100.0%
90.0%
80.0%

FY 3/20:Occupancy Ratio

120.0

82.2%

77.0%

77.2%

76.9%

75.7%

70.0%

76.9%

78.6%

82.6%

77.9%

76.5%

75.6%

100.0

75.8%

77.8%
57.4%

60.0%
* Preliminary figures
for October

50.0%

80.0

60.0

51.9%
40.0%
40.0

30.0%
29.5%

20.0%

10.0%

20.0
15.0%
9.4%

0.0%
Apr

May

0.0
Jun

Jul

Aug

Sep
Annualcumulative
total

Occupancy Ratio

Oct

Nov

Dec

Jan

Feb

Average Daily Rate
Q1

Q2

H1

Q3

Q4

FY 3/20(actual results)

76.7%

84.6%

80.7%

78.7%

69.7%

FY 3/21(actual results)

17.0%

69.4%

YoY change-59.7pp-15.2pp

77.4%

Mar

(Unit: Thousand yen)
Q1

Q2

H1

FY 3/20(actual results)

43.0

45.2

44.2

46.6%

FY 3/21(actual results)

41.8

46.3

45.6

-34.1pp

YoY change

-1.1

+1.0

+1.3

Q3
41.5

Q4
40.4

Annualcumulative
total

42.6

(Note) The table above shows figures not including hotels that opened in April 2019 or later (to enable comparison between the two periods under similar conditions)13

Resorts Business: RevPAR by month(Unit: Thousand yen)
FY3/20:RevPAR

60.0

50.0

FY3/21:RevPAR* Preliminary figures
for October

47.8

40.0
34.4

38.8

30.0

34.6

34.3

34.8

34.1

32.5

34.2

32.5

32.5

30.8

29.5

29.3
22.8

22.6
20.0

10.0

12.3
5.8

4.4

0.0
Apr

May

Jun

Jul

Aug

Sep

Oct

RevPAR

Nov

Dec

Jan

Feb

Mar

(Unit: Thousand yen)

Q1

Q2

H1

Q3

Q4

FY 3/20(actual results)

32.9

38.2

35.7

32.7

28.1

FY 3/21(actual results)

7.1

32.1

21.2

YoY change

-25.8

-6.1

-14.4

Annualcumulative
total

33.0

(Note) The table above shows figures not including hotels that opened in April 2019 or later (to enable comparison between the two periods under similar conditions)14Other Businesses: FY 3/21 H1 Net sales and operating income(Unit: 100 million yen)

Net sales: Down 5.27 billion yen year on year

FY3/20 H1

Operating income: Down 850 million yen year on year

FY3/21 H1

FY3/20 H1

107
80

77

73

- 107.0

68

FY3/21 H1+0.9(includes
PKP+0.8 andsenior +0.3)

76

8.7

- 14.2

36
- 7.5

+ 0.9
+ 8.3
(includes PKP+8.3 andsenior - 0.1)

+ 66.7

22
10

2.3

- 1.0

1.6

0
Comprehensive
Building
Management
Business

Food Service
Business

Development
Business(Not including realestate sale andleaseback)

Real-estate saleand leasebackbusiness

Other
Businesses

Comprehensive
Building
Management
Business

4.9

- 8.7

- 0.7

1.9

0.8

3.9

2.8
0.0

-0.1

Food Service
Business

Development
Business(Not including realestate sale andleaseback)

Real-estate saleand leasebackbusiness

Other
Businesses

15Balance sheet
End of September 2019

End of March 2020

End of September 2020
Assets227.2 billion yen(+10.1 billion yen)

Liabilities
151.9 billion yen(+18.8 billion yen)

AssetsLiabilities

Assets
217.0 billion yen(+8.1 billion yen)

Liabilities
133.1 billion yen(+8.5 billion yen)

Cash anddeposits

Interest-bearingdebt

208.9 billion yen

124.5 billion yen

Cash andInterest-bearing

20.9 billion yen

116.3 billion yen

Cash anddeposits
20.4 billion yen

Interest-bearingdebt
89.7 billion yen

deposits
18.3 billion yen

liabilities
93.0 billion yen(+2.6 billion yen)(+23.3 billion yen)(-2.1 billion yen)(+3.3 billion yen)

*Includes CB of
19.9 billion yen*Includes CB of
19.9 billion yen*Includes CB of
19.9 billion yen

Non-current
assetsNon-current
Non-current
assets160.5 billion yen

Net assets
84.3 billion yen

assets
165.9 billion yen(+5.3 billion yen)

170.0 billion yen
Net Assets
83.9 billion yen(-0.4 billion yen)(+4.1 billion yen)

Net assets
75.2 billion yen(-8.7 billion yen)

Treasury stock

Treasury shares

Treasury stock-0.3 billion yen-0.3 billion yen-0.3 billion yen

Interest-bearing liabilities = Short-term loans payable + Current portion of bonds + Bonds + Long-term loans payable + Convertible bonds (CB)16

Interest-bearing debt and Net D/E ratio(Times)(Unit: 100 million yen)Interest-bearing liabilities (net）

Net debt-to-equity (D/E) ratio

1,200
1.6

1.3
800

1.2

1.0
0.9

0.9

0.8
0.8

400

522

668

665

692

954
0.4

0

0.0
FY 3/17 H1

FY 3/18 H1

FY 3/19 H1

FY 3/20 H1

FY 3/21 H1
17

Ogihama Hot Spring
Dormy Inn Kawasaki

Projected
results for
FY 3/21

Yumegurinoyado
Katsuragawa at
Shuzenji Hot Springs18

FY3/21 Consolidated Financial Forecast and KPIs
(Unit: 100 million yen)

FY 3/20

FY 3/21

Act

Forecast(2019/4-2020-3) (2020/4-2021-3)

Net sales

Q1 ActYoY change

Q2 ActH2 Forecast(2020/4-6) (2020/7-9) (2020/10-2021/3)

1,697.7

1,320.0-377.7-22.2%

236.0

326.4

757.4

Operating income

112.0

-30.0

-142.0

-

-45.2

0.3

14.8

Ordinary income

124.9

-30.0

-154.9

-

-48.0

3.1

14.8

Net income

69.2

-68.0

-137.2

-

-64.2

-14.3

10.5

EPS (JPY)

177.6-174.4-352.1--164.7

-36.7

27.0

Capital investment

226.3

Undecided

-

-

26.0

20.7

Undecided

Depreciation expense

52.6

53.5

+0.9

+1.8%

12.7

13.0

27.7

Cash flow*

121.8

-14.4

-136.3

-

-51.5

-1.2

38.3

Dividends per share (yen)45.0

Undecided

-

-

-

-

Undecided

25.3%

-

-

-

-

-

-

Payout ratio* Cash flow: Net profit + depreciation19

Forecasts of consolidated business results for FY 3/21 (assumptions)<Second-half results are expected to show further improvementfrom first-half profits due to the following factors>➢ Dormitory Business: A gentle recovery is projected as schools move toward resumption of
in-person classes.
➢ Hotels Business: Travel demand is projected to remain favorable due to factors including
plans to extend the period of the “Go To” travel campaign and development of theCompany‘s own unique products. Our hotel occupancy rates and unit prices per room
have continued steady recovering trends since October as well.
➢ Other businesses: The hotel cleaning and food service businesses are recovering thanks toincreasing hotel occupancy rates.
➢ Extraordinary profit/loss: With an eye toward future growth, businesses are being revisedin order to realize further structural enhancement, including closure of one facility inSouth Korea and of the Global Cabin business. Total losses from these measures alongwith those resulting from temporary closures to stop the spread of COVID-19 and othercauses, are 4.8 billion yen.

20

Measures taken in response to COVID-19 for the FY 3/21
■ “Chokko Ofukubin” from home to the resort-

New lodging plans that include round-trip taxi transportation, jointly developed with taxi
companies, have been introduced.

-

These new plans help guests enjoy a relaxing trip by ensuring convenient door-to-doortransportation.

-

Lodging plans including dinner and breakfast that offer hot-springs bathing andluxurious meals at 26 facilities in a total of 16 areas across Japan.
(As of November 24, 2020) * Subject areas and facilities are expanding steadily.

■ Use of Dormy Inn facilities for teleworking offices and long-term-stay plans to stop the
spread of COVID-19 introduced■ Measures have been introduced to support school attendance in response to COVID-19
by lending funds to students interest free to lessen their economic burdens.
21

Yururinoyu Natural
Hot Spring
Onyado Yuinosho

Medium-term
management plan

Yumegurinoyado
Katsuragawa at Shuzenji
Hot Springs
22

Main quantitative goals of the medium-term management plan
(March 2018 – March 2022) and state of progress on them
The medium-term management plan now underway is being
reviewed in response to the spread of COVID-19. These
revisions will be announced as soon as they are ready.
Quantitative targets of the "Kyoritsu Jump Up Plan" medium-term management plan
Main quantitative goals

Results in FY 3/17, the starting pointof the medium-term management plan

Progress as of FY 3/20

Results in FY 3/22, the final fiscal year of themedium-term management plan

Net sales

135.8 billion yen

169.7 billion yen (CAGR: +8%)

220 billion yen (CAGR: +10%)

Operating profit

11.8 billion yen

11.2 billion yen(CAGR: ― )19 billion yen (CAGR: +10%)

Net D/E Ratio

0.9 times

0.9 times

No greater than 1.0,
the financial soundness target

Payout ratio

16.8%

25.3%

Gradually increasing, aiming for a targetof more than 20%

ROE

11.7%

8.5%

10% or more

Development plans

Results in FY 3/17, the starting point of themedium-term management plan

Progress at the end of FY 3/21 H1(FY 3/18 - FY 3/21 H1 cumulative)

End of FY 3/22, the final fiscal year of themedium-term management plan

Dormitory

37,000 rooms

Dormy Inn

10,200 rooms

Resorts

2,200 rooms- Development basis: 5,498 rooms- Projects on which the institutions already havemade decisions: Approximately 7,300 rooms(progress rate: 104%)- Development basis: 4,636 rooms- Projects on which the institutions already havemade decisions: Approximately 9,000 rooms(progress rate: 100%)- Development basis: 659 rooms- Projects on which the institutions already havemade decisions: Approximately 1,500 rooms(progress rate: 107%)

7,000 rooms

9,000 rooms

1,400 rooms

23

Dormitory and hotel development plans to realize sustained growth
FY 3/18
Results

FY 3/19
Results

FY 3/20
Results

FY 3/21
PlannedFY 3/22
PlannedDormitories, Domeal+10 facilities*+963 rooms*+14 facilities*+1,780 rooms*+15 facilities*+1,574 rooms*+15 facilities*+1,181 rooms*+23 facilities*+1,886 rooms*

End of FY 3/17:

Number of facilities inoperation at end of year

473 facilities

Number of facilities inoperation at end of year

485 facilities

Number of facilities inoperation at end of year

494 facilities

Number of facilities inoperation at end of year

505 facilities

Number of facilities inoperation at end of year

516 facilities

Leasing rate

88.5%

Leasing rate

88.5%

Leasing rate

87.6%

Leasing rate

87.8%

Leasing rate

87.3%

Number of rooms inoperation at end of year

42,630 rooms

463 facilities/37,000 rooms

Number of rooms inoperation at end of year

Number of rooms in
38,166 rooms
39,450 rooms
Medium-term plan:
operation at end of year
7,000 rooms[L]Waseda, [L]Hikifune,
Noda ANNEX,[L]Keiotsunashima, [L]Tsurugashima,[L]Senjunakamachi,
Projects on which the institutions
Omoromachi, [L]Kaihinmakuhari,[L]Tsunashimaekimae, Higashiosaka,
already have made decisions[L]Tokorozawa,[L]Maihama, [L]Minamikoshigaya,
Around 7,300 rooms[L]Hakataekiminami Ⅱ, [L]Kokuraekimae,[L]IrinakaⅡ, [L]Koroen ,and others.
Progress rate
and others.

Number of rooms in
40,633 rooms
operation at end of year
[L] Sendai Higashiguchi V,[L] Motoyama, [L] Osaka Tenma,[L] Kagoshima, [L] Kobe,[L] Ichigaya, [L] Komagome,
Meiji University Global Village,[L] Setagaya Todoriki, and others

104%

Number of rooms in
41,567 rooms
operation at end of year
[L] Hokudai Avenue, [L] Nippori,[L] Sendai Tsutsujigaoka,[L] Nagakute, [L] Hamadayama,[L] Komazawa Koen,[L] Esaka Koen, [L] Azabu-Juban,[L] Hyakumanben Annex,[L] Yokohama-Nishi, and others[L] Sakado II, Niigata II,[L] Kyoto-Kuinabashi,[L] Iriya, [L] Hirao-Ekimae,[L] Kameari, [L] Setagaya Todoroki,[L] Sapporo kita 14-jo, and others

Dormy Inn

+9 facilities*+1,571 rooms*+9 facilities*+1,530 rooms*+7 facilities*+1,535 rooms*+7 facilities*+1,797 rooms*+13 facilities*+2,694 rooms*

End of FY 3/17:

Number of facilities inoperation at end of year

72 facilities

Number of facilities inoperation at end of year

80 facilities

Number of facilities inoperation at end of year

87 facilities

Number of facilities inoperation at end of year

89 facilities

Number of facilities inoperation at end of year

102 facilities

Leasing rate

98.8%

Leasing rate

98.9%

Leasing rate

99.0%

Leasing rate

99.1%

Leasing rate

99.2%

14,783 rooms

Number of rooms inoperation at end of year

15,941 rooms

Number of rooms inoperation at end of year

18,635 rooms

63 facilities/10,200 rooms

Number of rooms inoperation at end of year

Number of rooms in
11,811 rooms
13,248 rooms
Medium-term plan: 9,000
operation at end of year
rooms
[L]Honhachinohe, [L]Osakatanimachi,[L]PREMIUM Kanda,[L]Korakuen, [L]Oita,[L]Miyazaki,[L]global cabin Hamamatsu,[L]global cabin Suidobashi,
Projects on which the institutions [L]Kofumarunouchi, [L]Izumo,[L]global cabin Yokohamachukagai,
already have made decisions[L]Takamatsuchuokoenmae,[L]EXPRESS
Sendai-Seaside,Around 9,000 rooms[L]Nono Nara, [L]Kochi, [L]Matsuyama [L]PREMIUM Namba ANNEX,[L]PREMIUM Osakakitahama

Number of rooms inoperation at end of year

[L]Maebashi, [L]Fukui,[L]Morioka, [L]Nono Asakusa,[L]Kawasaki, [L]Furano,[L]Mito[L] Nono Kyoto-Shichijo,[L] Kobe, [L] PREMIUM Ginza,[L] Ikebukuro,[L] Nagasaki-Ekimae,[L] Toyohashi,[L] Nono Kanazawa[L] Gotemba, [L] Nono Matsumoto,[L] Nono Sendai,[L] Fukuyama[L] Tokyo Bay (Toyosu),[L] Hiroshima ANNEX,[L] Aomori, [L] NonoYodoyabashi,[L] Okayama, [L] Nono Matsue,[L] Nono Kumamoto,[L]Yokohama, [L] Nono Asakusa Bettei,

Progression rate
100%

Resorts+4 facilities*+253 rooms*+2 facilities*+171 rooms*+3 facilities*+235 rooms*+6 facilities*+486 rooms*+4 facilities*+407 rooms*

End of FY3/17:

Number of facilities inoperation at end of year

29 facilities

Number of facilities inoperation at end of year

31 facilities

Number of facilities inoperation at end of year

34 facilities

Number of facilities inoperation at end of year

39 facilities

Number of facilities inoperation at end of year

43 facilities

25 facilities/2,200 rooms

Leasing rate

58.7%

Leasing rate

60.2%

Leasing rate

61.6%

Leasing rate

60.9%

Leasing rate

69.4%

Medium-term plan: 1,400
rooms

Number of rooms inoperation at end of year

2,478 rooms

Number of rooms inoperation at end of year

2,884 rooms

Number of rooms inoperation at end of year

3,341 rooms

Number of rooms inoperation at end of year

3,748 rooms

Keiun (Izumo),
Tsukiyo no Usagi (Izumo),
Projects on which the institutions[L]Le Chien Kyu-Karuizawa,
already have made decisions[L]Suiun (Gora)

Number of rooms in
2,649 rooms
operation at end of year[L]La Vista Kirishima (Kagoshima),[L]Shirakawago (Gifu)[L]Echigoyuzawa (Niigata),[L]Kotohira (Kagawa),
Inazumi (Akita)

Around 1,500 rooms[L] La Vista Kusatsu (Gunma),[L] Nasu-Shiohara Rengetsu (Tochigi),[L] Wakura Hot Spring (Ishikawa),
Kikuya Bettei Suigetsu (Shizuoka),
and others[L] Kawazu Hot Spring (Shizuoka),[L] Kyoto Umekoji,[L] La Vista Hakodate Bay ANNEX,[L] Jozankei

Progression rate
107%
Companywide leasing rate

89.4%

89.7%

89.2%

89.3%

89.7%

Note: While as noted above development is proceeding during the period of the medium-term management plan, the timing of opening for business could vary depending on COVID-19 conditions.
* Indicates numbers of increases in facilities and rooms from development projects (does not indicate numbers of increases from the end of the previous year for facilities and rooms in operation at the end of the year)
Note: “L” indicates a leased facility; underlines indicate real-estate sale and leaseback projects including future plans24

Important notes

As used in these Notes, "presentation" refers to this Document explained or distributed by Kyoritsu Maintenance Co., Ltd. ("Kyoritsu" hereinafter), as well as oralpresentations, questions and answers, and information provided in writing or orally. This presentation (including related oral explanations and questions andanswers) does not constitute, state, or form, under any legal jurisdiction, a part of any proposal, guidance, or solicitation to purchase, acquire, apply for,exchange, trade, or otherwise dispose of any securities, or solicitation of any vote or approval.
Companies invested in by Kyoritsu, whether directly or indirectly, are separate companies. The term "Kyoritsu" may be used in this presentation for convenience'sake to refer to Kyoritsu and its subsidiaries in general. Similarly, the term "the Company" (including "we," "us," and "our") may be used to refer to thesubsidiaries in general or to persons working for them. These terms also may be used in cases in which it would not be useful to specify a specific company.

Forward-looking statements
This presentation and materials distributed in connection with this presentation include forward-looking statements, ideas, or views regarding the Company's
future businesses and future positions and results, including Kyoritsu estimates, projections, goals, and plans. While forward-looking statements often include
terms such as “targets,” “plans,” “believes,” “hopes,” “continues,” “expects,” “aims,” “intends,” “will,” “may,” “should,” “would,” “could,” “anticipates,” “estimates,”“projects,” or similar terms, or negative expressions thereof, that is not necessarily always the case. The forward-looking statements in this document are basedon current assumptions and ideas in light of the information currently available to the Company. Forward-looking statements are not guarantees by the Company
or its executives of future business results, and they involve risks, both known and unknown, uncertainties, and other factors. Risks and uncertainties include,
but are not limited to, the economic conditions of the Company’s businesses, including general economic conditions in Japan and around the world, as well as
the appearance or development of competing products, decisions by regulators and the timing thereof, and natural disasters. As a result of such factors, theCompany’s actual business performance, results, and financial details may differ substantially from the future business performance, results, and financial
details described, whether explicitly or implicitly, in forward-looking statements. The Company and its executives make no guarantee of any kind regarding theultimate accuracy of projections indicated in forward-looking statements, and actual business performance or results may differ substantially. Recipients of thispresentation should not depend excessively on forward-looking statements. Kyoritsu is under no obligation to update the forward-looking statements containedin this presentation or presented by the Company through other means. Past performance is no indicator of future results, and Kyoritsu’s business results as
contained in this presentation are neither indicators, forecasts, projections, nor estimates of its future business results.

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