Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

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

Interim Period of Fiscal Year March 2008
Consolidated Earnings Results Update

November 2007

1

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Kyoritsu Maintenance Consolidated Financial Data at a Glance
Consolidated S ales and YY
70,00035%

60,00030%

50,00025%

40,00020%

30,00015%

20,00010%

10,0005%

00%3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07

mn y en

Consolidated Gross Income and Margins
14,00022%
22%12,00021%
21%

10,000

20%
8,000

20%

6,000

19%
19%

4,000

18%
18%

2,000

17%
0
mn yen17%
3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07

Consolidated Operarting Income and Margins
5,000

9%

4,500

8%

4,000

7%

3,500

6%

3,000

5%

2,500
4%

2,000

3%

1,500
1,000

2%

500

1%

0

0%
3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07

mn yen2

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Interim FY3/07 Consolidated S egment S ales
5%
14%

5%

45%

15%

16%
Dormitories

HotelsContracted services

Food service

Construction

Other

Trend in Total Assets and Net Assets
120,000
100,000

total assets
net assets (shareholders' equity)

80,00060,00040,00020,0000
mn yen3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07

Trends in ROE, ROA
14%
12%
10%
8%
ROE

ROA

6%
4%
2%
0%
3/97 3/98 3/99 3/00 3/01
3/02 3/03 3/04 3/05

3

3/06

3/07

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Historical Consolidated Financial Data and Benchmarks

Consolidated Income Statement
net sales
gross income
operating income
ordinary income
net income

3/96
26,399
5,430
1,628
1,537
288

3/97
30,126
5,639
1,814
1,705
684

3/98
31,332
6,188
1,971
1,864
517

3/99
32,458
6,578
2,465
2,203
850

3/00
36,788
7,173
2,369
2,281
907

3/01
37,884
7,834
2,828
2,643
1,147

3/02
50,065
10,221
3,908
3,580
1,822

3/03
50,10910,785
4,149
3,885
2,039

3/04
54,081
10,541
4,004
4,060
2,138

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

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

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

Consolidated Balance Sheetcurrent assets
fixed assets
total assets
current liabilities
fixed liabilities
total liabilities
net assets (shareholders' equity)

9,059
22,56531,624
14,461
9,300
23,761
7,863

10,952
24,32235,593
16,254
10,94327,197
8,396

12,391
24,87237,48018,9809,954
28,934
8,546

15,336
25,695
41,14420,921
10,946
31,866
9,278

19,90029,86749,88019,731
16,97736,707
13,16923,79340,47864,32728,51322,06422,064
13,747

18,10047,76865,86727,031
23,76150,792
15,073

22,13849,49771,64731,61023,14654,755
16,824

22,122
55,71577,86529,37429,43358,806
18,93523,25462,336
85,62031,58533,07764,663
20,78823,35074,681
98,04744,03928,31672,35525,512

24,901
85,562
110,50737,342
46,06883,411
27,096yy change
net sales
gross income
operating income
ordinary income
net income

na
na
na
na
na

14.1%
3.9%
11.4%
11.0%
137.5%

4.0%
9.7%
8.7%
9.3%
-24.5%

3.6%
6.3%
25.1%
18.2%
64.6%

13.3%
9.0%
-3.9%
3.5%
6.7%

3.0%
9.2%
19.4%
15.9%
26.5%

32.2%
30.5%
38.2%
35.4%
58.8%

0.1%
5.5%
6.1%
8.5%
11.9%

7.9%
-2.3%
-3.5%
4.5%
4.8%

7.3%
3.3%
10.1%
8.6%
9.6%

8.7%
8.2%
4.6%
9.4%
-14.2%

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

margins
gross margins
operating margins
ordinary margins
net margins

20.6%
6.2%
5.8%
1.1%

18.7%
6.0%
5.7%
2.3%

19.8%
6.3%
6.0%
1.6%

20.3%
7.6%
6.8%
2.6%

19.5%
6.4%
6.2%
2.5%

20.7%
7.5%
7.0%
3.0%

20.4%
7.8%
7.2%
3.6%

21.5%
8.3%
7.8%
4.1%

19.5%
7.4%
7.5%
4.0%

18.8%
7.6%
7.6%
4.0%

18.7%
7.3%
7.6%
3.2%

18.5%
5.6%
5.7%
3.6%

3.7%
0.9%
24.9%

8.1%
1.9%
23.6%

6.0%
1.4%
22.8%

9.2%
2.1%
22.6%

6.9%
1.8%
26.4%

8.3%
1.8%
21.4%

12.1%
2.8%
22.9%

12.1%
2.8%
23.5%

11.3%
2.7%
24.3%

11.3%
2.7%
24.3%

7.9%
2.1%
26.0%

8.9%
2.2%
24.5%

other benchmarks
ROE
ROA
equity ratio
Units: million yen

4

*
9/06
9/07
* 30,850 39,520
*
6,845
7,873
*
2,800
3,011
*
2,838
2,783
*
1,523
1,571
*
*
* 22,896 19,944* 77,801 94,860* 100,740 114,482* 32,675 44,063* 41,636 42,665* 74,311 86,728* 26,428 28,112
*
*
*
na
28.1%
*
na
15.0%
*
na
7.5%
*
na
-1.9%
*
na
3.2%
*
*
*
22.2% 19.9%
*
9.1%
7.6%
*
9.2%
7.0%
*
4.9%
4.0%
*
*
*
5.8%
5.6%
*
1.5%
1.4%
*
26.2% 24.6%*

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Interim Period of Fiscal Year March 2008 Consolidated Earnings Results
November 15, 2007
Company Name:
Stock Exchange:
Stock Code:President:
Contact:
Filing Date:

Kyoritsu Maintenance Co., Ltd.
Tokyo Stock Exchange, First Section
9616
Mitsutaka Sato
Takumi Ueda, Vice President
December 21, 2007

Homepage: http://www.kyoritugroup.co.jp
Telephone:
Dividend Payment Date:+81-3-5295-7778
December 3, 2007

(Figures are rounded down to the nearest million yen)

1. Interim Period of Fiscal Year March 2008 Consolidated Earnings (from April 1 to September 30, 2007)
Consolidated Earnings
Net Sales
Operating Income
Ordinary Income
Net Income
Million Yen %yy

39,52030,85066,287

Interim FY3/08
Interim FY3/07
FY3/07

Million Yen %yy

28.1
2.7
－

EPS

3,011
2,800
3,745

7.5
-3.4
－

Million Yen %yy

2,783
2,838
3,787

-1.9
1.7
－

Million Yen %yy

1,571
3.1
1,523 48.0
2,413－

Fully Diluted EPS
Yen

Yen

105.52
84.82
Interim FY3/08
122.98115.67
Interim FY3/07
FY3/07176.98151.74(Note) Equity accounting method income:¥12 million in Interim FY3/08, ¥17 million in Interim FY3/07, ¥23 million in FY3/07(2)

Consolidated Financial Position
Total Assets

Net Asset Ratio

Book Value per Share

Million Yen

Million Yen%

Yen

114,842
100,740
110,507

28,112
26,42827,096

24.4
26.1
24.4

1,877.35
2,117.51
1,809.86

Interim FY3/08
Interim FY3/07
FY3/07(Note) Capitalization:
FY3/07

Net Assets¥27,964 million in Interim FY3/08, ¥26,273 million in Interim FY3/07, ¥26,948 million in(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

Million Yen

Million Yen

Million Yen-11,382
1,992-3,654

10,399-1,4501,034

10,343
10,517
13,721Dividend Conditions
Dividends per Share
End Fiscal
End Interim
Year

Total

Yen

Yen

Yen

FY3/07

18.00

18.00

36.00

FY3/0818.00

FY3/08 (Projected)

Cash and Equivalents at
Year End-2,393-2,7983,568

FY3/07

Registry Date

Cash Flows from
Financing Activities

Million Yen

Interim FY3/08
Interim FY3/07

2.

Cash Flows from
Investment Activities

36.00
18.00

5

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

3.

Fiscal Year March 2008 Consolidated Earnings Projection (April 1, 2007 to March 31, 2008)
Net Sales

Full Year

Operating Income

Ordinary Income

Million Yen%yy

Million Yen%yy

Million Yen%yy

Million Yen

%yy

Yen

74,200

11.9

4,900

30.8

4,460

17.8

2,790

15.6

187.386Net Income

EPSKyoritsu Maintenance Interim FY3/08 Earnings Announcement

4.

Others(1) Important changes in our subsidiaries including changes to the scope of our consolidate: None
(2) Changes in the accounting methodology and procedures used to create our consolidated interim financial
accounts.
① Associated with changes in accounting standards: Yes② Other changes: None
(3) Number of shares issued (common shares)① Shares outstanding as of end term (including treasury shares): 15,125,582 at end Interim FY3/08,
12,592,252 at end Interim FY3/07, 15,118,142 at end FY3/07② Treasury shares as of end term: 229,871 at end Interim FY3/08, 184,697 at end Interim FY3/07,
228,295 at end FY3/07(Reference) Non-Consolidated Financial Figures Summary
1. Interim FY March 2008 Non-Consolidated Earnings (April 1, 2007 to September 30, 2007)(1) Non-Consolidated Earnings
Sales

Operating Income

Ordinary Income

Net Income

Million Yen%yy

Million Yen%yy

Million Yen%yy

Million Yen%yyInterim FY3/08
Interim FY3/07

29,37324,156

21.6
8.6

2,623
2,182

20.2
-9.3

2,581
2,469

4.5
0.3

1,491
1,437

3.8
64.0

FY3/0747,967

－

2,633

－

3,113

－

2,185

－

EPS
Yen

Interim FY3/08
Interim FY3/07
FY3/07(2)

100.14116.03160.25

Non-Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Interim FY3/08
Interim FY3/07
FY3/07(Note) Capitalization:
2.

Net Asset Ratio

Book Value per Share

Million Yen%

Yen

94,784
26,82728.3
1,801.00
81,47925,38331.2
2,045.85
90,09825,91728.8
1,740.61¥26,827 million in Interim FY3/08, ¥25,383 million in Interim FY3/07, ¥25,917 million in FY3/07

Non-Consolidated FY March 2008 Earnings Projections (April 1, 2007 to March 31, 2008)
Sales
Full Year

Million Yen%yy

57,20019.2

Operating Income

Ordinary Income

Million Yen

Million Yen%yy

3,990 51.5

%yy

4,000 28.5

Net Income
Million Yen

EPS

%yy

Yen

2,280 4.3

153.12

 Notes and explanations regarding the appropriate uses of our earnings projections
All projections provided in this document are based on the most accurate information available at the time ofthis writing. However our actual results may differ from our projections due to various unforeseen reasons.
For further information regarding our earnings projections, please refer to page twelve of this document.

7

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

1.

Earnings Performance(1) Earnings Performance Analysis(Consolidated Interim Earnings Performance)(Units:Net Sales
Operating Income
Ordinary Income
Net Income

Last Interim
FY3/0730,850
2,800
2,838
1,523

Current Interim
FY3/0839,520
3,011
2,783
1,571

million yen)

Change
%yy
28.1
7.5
-1.9
3.1

During the interim period under review, favorable corporate earnings and subsequent strong capital
investments contributed to improvements in both the labor markets and wages, as well as to the continued
gradual recovery in the overall economy.

However the subprime loan problems in the United States andrising crude oil prices are among uncertainties clouding the economic horizon.

Against this backdrop, our main dormitory business sales grew on the back of increases in sales in our student
dormitories due to stronger relationships with universities and vocational schools, in our employee
dormitories as a result of improvements in the labor market with increased hiring of younger workers andstrong demand for outsourcing of training facilities, and in our Dormir facilities (Studio type condominium
dormitories) owing to firm occupancy rates.

Furthermore high and stable occupancy rates at our existing

Dormy Inn hotel facilities, the opening of six new hotel facilities including “Dojima River Hot Springs Tenzin
no Yu Dormy Inn Umeda East,” “La Vista Kushiro River,” “Natural Hot Springs Hagi no Yu Dormy Inn
Sendai Station,” “Natural Hot Springs Azusa no Yu Dormy Inn Matsumoto,” “Natural Hot Springs Tenpoku
no Yu Dormy Inn Wakkanai,” and “Natural Hot Springs Kaiji no Yu Dormy Inn Koufu,” and the opening ofanother two resort hotels including “La Vista Daisetsuzan” and “Okuhida Hot Springs Hirayu Takumi no Yado
Miyamonouan” all contributed to growth in sales of our hotel business.

Moreover the early completion anddelivery of new real estate development projects allowed sales of our construction business to grow.

Consequently during the interim period under review our net sales rose by 28.1% year-over-year to ¥39,520
million, operating income grew by 7.5% year-over-year to ¥3,011 million, ordinary income declined by 1.9%
year-over-year to ¥2,783 million, and net income increased by 3.1% year-over-year to ¥1,571 million.

Earnings by Key Business Segment<Dormitory Business (Student, Corporate, Dormir, Outsourced)>

Sales
Operating Income

Last
Interim FY3/07
17,5603,278

Current
Interim FY3/08
18,764
3,583(Units: million yen)
Change(%)
6.9
9.3(1) Dormitory BusinessDespite the continued negative impact of the declining birthrates in Japan affecting the operating environment forour dormitory business, the advancement rates of high school students entering universities and vocational schools
in major metropolitan areas is on the rise.

Against this backdrop, we leveraged our “healthy food menus,” the8

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

high level of security at our “fully supervised dormitories,” and other unique services and features of ourdormitories to fortify our relationships with various universities and vocational schools and to provide our services
to an even greater number of residents.

As a result of these and other efforts, the number of our contracts rose 3.7% year-over-year to 15,771 residents
despite a slight 0.9% year-over-year decline in the number of schools contracted, and our student dormitory sales
grew by 4.9% year-over-year to ¥11,076 million.

Moreover during the interim period the number of contracts

with four year universities grew strongly.

(2) Corporate Dormitory BusinessAlong with the strong rise in hiring of new student graduates of 18.1% year-over-year to 825,000 accompanying theimprovement in corporate earnings, we also note a continuation of the trends for companies to “outsource theircorporate dormitories.” At the same time we note corporations “reviewing their corporate housing strategy” andrenewed interest in using corporate dormitories as means of promoting communication between younger employees.
With these trends in place, we continued to provide solutions to corporate facilities management and operational
issues, and we also focused upon providing management services for corporate training facilities.

Our efforts

allowed our corporate dormitory division to see a 1.8% year-over-year increase in the number of contracting
companies to 972, a 13.2% year-over-year rise in the number or contracted residents to 6,264, and an 11.9%
year-over-year increase in sales to ¥4,868 million.

(3) Dormir Business (Studio-Type Condominiums)
In our Dormir business we applied the know-how and expertise amassed in our student and corporate dormitories toincrease our supply of studio-type condominiums to residents to satisfy the quickly diversifying needs of ourresidents.

Furthermore we leverage our network of students and corporate workers to introduce residents tovarious facilities which we manage as a means of increasing their occupancy rates.

Consequently the number ofcontracted residents rose by 2.8% year-over-year to 3,543 and our sales grew by 3.7% year-over-year to ¥1,543
million.

(4) Outsourced Dormitory BusinessIn our outsourced dormitory business we manage dormitories owned by corporations, universities and vocational
schools. And during the term under review demand for outsourcing services continued to grow along with therecovery in corporate earnings.

Furthermore we were able to capture more orders by leveraging of our strong

reputation as “Japan’s leading boarding house service provider” to differentiate our company from our competitionand our sales rose by 9.5% year-over-year to ¥1,276 million.

Consequently as of the end of September the overall number of facilities in our dormitory business reached 385,
our capacity grew by 1,500 to 28,488 residents, the number of contracted residents rose by 1,390 to 25,578 towhom we provided housing, and our occupancy rate rose to 0.2% points to 89.8%. These results allowed ouroverall dormitory business to record sales growth of 6.9% year-over-year to ¥18,764 million, and operating income
growth of 9.3% year-over-year to ¥3,583 million.
9

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement<Hotel Business (Dormy Inn, Resorts)>(Units: million yen)
Last
Interim FY3/07
6,027
-349

Sales
Operating Income

Current
Interim FY3/08
10,062
5

Change(%)66.9―(1) Dormy Inn Business (Business Hotel Business)
We make special efforts to listen to each and every one of our customers’ comments and to reflect as many of thesein our hotel services in our business strategy to capture new demand for hotels, reduce labor costs by eliminating
less popular services, and create a unique business model.

Most recently we paid special attention to providing

services such as “large hot spring type bathing facilities” and “good tasting breakfasts” in addition to implementing
strategies to reflect the requirements of late-night check-in customers, as well as those of tourist travelers andcustomers using our hotels on weekends. Consequently our occupancy rates remained relatively at a relatively
high 82.0% (Down 0.4% points).

During the term under review we opened six new facilities including “Dojima

River Hot Springs Tenzin no Yu Dormy Inn Umeda East,” “La Vista Kushiro River,” “Natural Hot Springs Hagi no
Yu Dormy Inn Sendai Station,” “Natural Hot Springs Azusa no Yu Dormy Inn Matsumoto,” “Natural Hot Springs
Tenpoku no Yu Dormy Inn Wakkanai,” and “Natural Hot Springs Kaiji no Yu Dormy Inn Koufu.”

Consequently

our sales rose by 36.7% year-over-year to ¥4,342 million.

(2) Resort Business (Resort Hotel Business)
In our resort business, we strive to create hotels that offer “reasonable prices and high quality resort lifestyles” and“comfortable accommodations,” and we have been able to achieve high occupancy rates of 69.5%, up 2.0% points
year-over-year.

During the term under review, we opened two new large hotels based on our principle of“comfortable accommodation” theme called “La Vista Daisetsuzan” and “Okuhida Hot Springs Hirayu Takumi no
Yado Miyamonouan.”

Furthermore the five large hotel facilities we opened during the previous term are

beginning to contribute to our earnings. Consequently sales grew by 100.7% year-over-year to ¥5,719 million.

As a result of these efforts we recorded a 66.9% year-over-year increase in our sales to ¥10,062 million, but due toopening costs associated with these eight new facilities our operating income amounted to ¥5 million.

<Contracted Services Business>(Units:
Last
Interim FY3/07
5,711
342

Sales
Operating Income

Current
Interim FY3/08
5,506
216

million yen)
Change
(%)
-3.6
-36.9

Our contracted services business includes maintenance for offices and residences, rental of consigned buildings, andparking lot management services.

Amongst these services we note increasingly severe pricing competition in thebuilding maintenance industry which has been further compounded by difficulties in securing workers due totightness in the labor market.

Against this backdrop under the term under review, in our contracted services weseek to raise our competitive advantage by strictly controlling costs and raising our productivity.

10

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

As a result of our efforts sales of our office building management business declined by 10.6% year-over-year to¥2,829 million.
million.

At the same time our residence management business grew by 5.2% year-over-year to ¥2,677

Consequent to this performance, our contracted services business sales fell by 3.6% year-over-year to¥5,506 million and our operating income declined by 36.9% year-over-year to ¥216 million.
<Food Service Business (Restaurants, Outsourced Cafeterias, Hotels and Restaurants)>(Units: million yen)

Sales
Operating Income

Last
Interim FY3/07
1,855
-74

Current
Interim FY3/08
2,473
-3

Change(%)
33.3―

While the gradual recovery in the economy lead to an improvement in consumer spending, the operating
environment of our food services business remained difficult due in part to the diversifying tastes and needs of ourcustomers. With these trends in mind, we implemented a strategy where we opened new restaurants in hotels,
increased our variable cost controls, and reviewed our earnings structure for this business.

Consequently sales of our food service business rose by 33.3% year-over-year to ¥2,473 million and we recorded an
operating loss of ¥3 million.

<Construction Business>(Units: million yen)

Sales
Operating Income

Last
Interim FY3/07
5,378
196

Current
Interim FY3/08
6,021
3

Change
(%)
12.0
-98.3

In our construction business, the large inflow of foreign and domestic capital into the Japanese real estate market
caused a “real estate fund bubble” in parts of central Tokyo and other major metropolitan areas, which gradually
spread to other regions as well.

This lead to a continuation of the severe competition with our rivals and forced us

to pay extra attention to develop new branch offices in key locations and secure properties at prices that would
allow us to realize profits.

Against this backdrop, we continued to focus upon the development and sales of hotels,

dormitories and condominiums to capture strong demand in the Tokyo region. Furthermore we were able toshorten the construction period on many of the new projects we started during the term under review which enabled
us to deliver condominiums ahead of schedule.

Consequently our construction business sales rose 12.0% year-over-year to ¥6,021 million.

However ouroperating income declined by 98.3% year-over-year to ¥3 million due in part to increases in materials costs broughton by the rise in crude oil prices and to higher sales, general and administrative costs.
<Other Business>

Sales
Operating Income(Units:
Last
Interim FY3/07
1,919
127
11

Current
Interim FY3/08
2,182
102

million yen)
Change
(%)
13.7
-19.8

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Our other business is comprised of headhunting, advertising, rental property brokerage and management, andfinancial services, in addition to our “wellness life” business (Residential property management business). During
the term under review our other business sales grew by 13.7% year-over-year to ¥2,182 million while our operating
income declined by 19.8% year-over-year to ¥102 million.

(Full Year Earnings Projections)(Consolidated Earnings)

Net Sales
Operating Income
Ordinary Income
Net Income(Units:Last Term
FY3/0766,287
3,745
3,787
2,413

Current Term Projection
FY3/0874,200
4,900
4,460
2,790

Last Term
FY3/0747,967
2,633
3,113
2,185

Current Term Projection
FY3/0857,200
3,990
4,000
2,280

(Non-Consolidated Earnings)

Net Sales
Operating Income
Ordinary Income
Net Income(Units:million yen)
Change
(%)
11.9
30.8
17.8
15.6

million yen)
Change
(%)
19.2
51.5
28.5
4.3

While there are numerous positive factors supporting the Japanese economy including the continuation of favorable
corporate earnings, aggressive capital investments, and rapid increases in hiring of new graduates which led to an
improvement in the employment situation for younger workers, there are also many uncertainties lurking on theeconomic horizon such as the sub-prime loan problem in the United States and higher crude oil prices globally.
With these trends in mind the Kyoritsu Group endeavors to strengthen our overall competitive position, to raise theeffectiveness of our management, and to review and improve our earnings structure.

In our main dormitory business, we recorded high occupancy rates of 96.3% in April, which we consider to be aleading indicator for how our business will trend during the full year.

And during the interim period under review,

we developed 18 new dormitories in the Tokyo metropolitan area, bringing the total number of dormitories androoms we manage to 385 and 28,488 respectively.

Furthermore we have taken steps to reflect the diversifying

needs of our residents in the dormitories we develop and manage. With regards to our marketing function, we
continued to fortify our relationships with major universities nationwide and leveraged our cafeteria food service
function as part of our marketing efforts in newer operating regions for our student dormitory business.

At thesame time we strengthened our relationships with vocational schools and college preparatory schools to become an
integral part of their student services.

In the area of corporate dormitories, we leveraged our ability to help

companies convert fixed costs to variable costs by providing them with our dormitory management services tosatisfy their growing need for corporate dormitory and other facility outsourcing.

We will also market ouroutsourcing management services of corporate training facilities as part of our overall marketing strategy.

With regards to our hotel business, our provision of “large hot spring type bathing facilities” and “good tasting
breakfasts” in our Dormy Inn business (Business hotels) has been received favorably and we will endeavor toachieve even higher levels of customer satisfaction through the development of new services.
12

In our resort

Kyoritsu Maintenance Interim FY3/08 Earnings Announcementbusiness (Resort hotels) a new facility called “Nanki Shirahama Hot Springs Hama Chidori no Yu Kaishu” wasopened in November and brings our total resort hotel network to 15, which provide “comfortable accommodations”
through comprehensive amenities and services while maintaining our goal of achieving high profitability.

In our contracted services business, severe pricing competition within the industry continues due to contract reviews
and consolidation of service providers, demands to reduce prices, and cancellation of contracts by building owners.
Therefore we seek to raise our competitive position and the trust of our customers by providing them with anincreased level of expertise and a more comprehensive service menu, in addition to maintaining high levels ofservice quality.

In our food service business we will continue our efforts to improve profitability by focusing upon strictly
controlling our variable costs.

In addition we will also use our expertise in restaurant operations to make ourrestaurants in hotels and golf courses more profitable and to develop external customers for these facilities.

With regards to our construction business we will continue to develop our Dormir (Studio-type condominium
dormitories) student and corporate dormitories and hotels in the Tokyo metropolitan area where demand remains
strong.

In our other business area, we will strengthen our earnings structure by promoting our comprehensive humanresources business to respond to the needs of our customers.

Based on these various strategies we project our sales, and operating, ordinary and net incomes to rise by 11.9%
year-over-year to ¥74,200 million, 30.8% to ¥4,900 million, 17.8% to ¥4,460 million, and 15.6% to ¥2,790 million
during full fiscal year March 2008.

13

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement(2) Financial Conditions
1. Assets, Liabilities and Net Asset Conditions
As of the end of the interim period under review, our total consolidated assets increased by ¥4,334 million from thelast fiscal year end to ¥114,842 million. We attribute this increase to growth in buildings and structures, land,consigned buildings and structures, and marketable securities.

Furthermore our liabilities grew by ¥3,318 million

to ¥86,729 million from the end of the previous fiscal year. We attribute this increase primarily to a rise in shortterm debt.

In addition, net assets rose to ¥28,112 million on the back of higher retained earnings reserves.

Subtracting minority holdings from our net assets we saw net capital of ¥27,964 million and our net asset ratio was
24.4%.

14

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

2.

Interim Period Consolidated Cash Flow Conditions

During the interim period under review, our consolidated cash and equivalents declined by ¥173 million from theprevious interim period to ¥10,343 million. We provide a summary of our various cash flows below.

(Cash Flows from Operating Activities)
Advances received as deposits for our dormitory business tend to rise during the second half of the fiscal year andtherefore we saw a large decline in these advances during the interim period.

Furthermore declines in inventories

of our construction business and increases payables caused our cash outflow to decline by ¥404 million
year-over-year to ¥2,393 million.

(Cash Flows from Investing Activities)
During the interim period under review, investments in dormitory and hotel facilities, acquisitions of other new
facilities, and replacement of existing facilities combined with cash used to acquire marketable securities and wesaw our investment cash needs grow by ¥13,375 million to a net cash outflow of ¥11,382 million.

(Cash Flows from Our Financing Activities)
In our financing activities increases in debt needed to fund capital investments for the expansion of our businessresulted in a net cash inflow of ¥10,399 million, a ¥11,849 million improvement from the net cash outflow seen in
the previous interim period.
(Units:
Last
Interim FY3/07-2,7981,992-1,45010,517

Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Cash and Equivalents at End of Interim

Current
Interim FY3/08-2,393-11,382
10,39910,343

million yen)
Change(%)
404-13,375
11,849-173

Trends in our cash flow indicators for our parent and group companies are listed below.

Equity Ratio (%)
Net Asset Ratio, Market Capitalization Based (%)
Debt Recovery Period (years)
Interest Rate Coverage Ratio(note)

1.

Each indicator is based on consolidated financial data.

2.

Each indicator is calculated as follows:(1)

Equity Ratio:(2)

Net Asset Ratio:

Interim
FY3/06

FY3/06

25.0
37.7
－
－

26.0
61.1
7.7
10.6

Interim
FY3/07
26.1
33.7
－
－

FY3/07

Interim
FY3/08

24.4
36.9
14.7
4.9

24.4
27.0
－
－

(Net Assets – Stock Options – Minority Interests) / Total Assets
Market Capitalization / Total Assets(Market capitalization = Term end share price X Term end shares outstanding, excluding treasury stock)(3)

Debt Recovery Period:

Interest Bearing Debt / Operating Cash Flow

(4)

Interest Coverage Ratio:

Operating Cash Flow / Interest Payments

3.

Cash flow is based on our operating cash flows.

4.

Interest-bearing debt includes all of the liabilities which bear interest payments on our consolidated balance sheet.

5.

We use interest payments from our consolidated cash flow statements.
15

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement(3) Our Basic Policy Regarding the Distribution of Profits
We consider the capital contributed by shareholders to be invaluable, and place a high priority on the distribution of
profits to our shareholders in line with our earnings performance.

One of our goals is to maintain a stable level ofdividends over the long-term and we have established a target dividend payout ratio of 20%. During recent years
we have been able not only to increase our dividends, but also to offer stock splits, effectively raising our overall
dividend payout.

During the interim period under review, we expect to pay the same level of dividends of ¥18 per share. However
because we implemented a 1.2 for 1 stock split in October 2006, the overall dividend payment is higher whencompared with the previous interim period.

Furthermore we expect to pay another ¥18 per share dividend at theend of the fiscal year, bringing our total dividend payment to ¥36 per share for the full year.

Furthermore we began a stock buy-back program with an upper limit of ¥1.5 billion or 750,000 shares on
September 26, 2007. The main purpose of this buy-back was to return profits to our shareholders and is areflection of our strategy of responding flexibly to changes in our operating environment.

With regards to distribution of profits to shareholders in the future, we will consider the potential for further
measures to return profits to our shareholders with a view to the conversion of our existing convertible bond typestock options as part of our strategy of maintaining a stable level of dividend payments.

At the same time wealso seek to retain a level of earnings that will give our management the freedom to make necessary capital
investments in response to changes in the market and to develop new businesses whenever appropriate.

16

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

1. Corporate Structure
The Kyoritsu Maintenance Group consists of the parent company, 17 subsidiaries, and four affiliated companies.
Our main businesses consist of student and corporate dormitories, hotels, contracted services, food service,
construction business, and other business.
The details of our businesses and the services provided by our various subsidiaries and affiliates are listed below.

Business Segment

Business Description

Participating Companies

Student and corporate dormitories, Dormir and outsourced
dormitory management

Kyoritsu Maintenance Co., Ltd.
Four other companies

HotelsDormy Inn (Long-term stay business hotels)
Resort hotels

Kyoritsu Maintenance Co., Ltd.
Six other companies

Contracted Services

Office building management businessResidential property management business

Builnet Corporation
Kyoritsu Maintenance Co., Ltd.
Two other companies

Food Services

Restaurant businessOutsourced cafeteria business
Hotel restaurant outsourcing business

Kyoritsu Food Services Co., Ltd.

Construction

Construction, planning, design, brokerage, condominium
sales, other related real estate development businessDormitories

Other Businesses

Wellness Life Business (senior citizen residence management
and operations)
Brokerage and management of rental real estate
Single resident insurance and other lifestyle support services
Comprehensive human resources business
Finance business
Advertising business
Other related businesses

17

Kyoritsu Estate Co., Ltd.

Kyoritsu Maintenance Co., Ltd.
Kyoritsu Livenet Co., Ltd.
Kyoritsu Trust Co., Ltd.
Nihon Placement Center Co., Ltd.
Kyoritsu Financial Service Co., Ltd.
Kyoritsu Creative Co., Ltd.

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Schematic Diagram of Our Operations

Clients

Builnet Corp.
Nikko Facility Management Corp.
Building rental,
maintenanceCorporate benefit
facilities maintenance

Office Building
Management BusinessContracted services
business

Residence, Building
Management Business
Consignment

Kyoritsu Food Service Corp.
Restaurant, cafeteria
outsourcing andrestaurant
management services

Food business

Cafeteria outsourcing
Hotel restaurant outsourcing

Other business

Single resident lifestylesupport services, insurance
sales

Kyoritsu Livenet Co., Ltd.
Rental real estate
management andbrokerage

Other business

Rental real estate
management, brokerage

Japan Placement Center Co., Ltd.
Labor dispatch,head hunting

Construction, planning anddesign of dormitories

Condominium business
Other related business

Other business

Consignment

Lifestyle product sales andother support services for
single residents in dormitories

Dormir management, brokerage
services

Consignment

Labor dispatch,
headhunting services

Consignment

Loan business

Other businessCollection andoperation services

Loan business
Consignment

Kyoritsu Creative Co., Ltd.
Advertising planning,production, and printing

Other business＜Dormitory Business＞
Student, corporate dormitories, Dormir,
outsourced dormitory management

M＜Hotel Business＞a
Dormy Inn business, resort businessin＜Contracted Services Business＞
t
Office building management businessena＜Other Business＞
nWellness Life Businessc(senior citizen attended care residence)eother related businesses

Consignment

Comprehensive personnel
services

Kyoritsu Financial Service Co., Ltd.

K
y
o
r
i
t
s
u

Consignment

Construction, planning,
design, brokerage
Construction business

Kyoritsu Trust Co., Ltd.
Lifestyle product sales,
insurance businessOutsourced cafeteria and hotel
restaurant management

Restaurant business

Kyoritsu Estate Co., Ltd.
Real estate
construction, sales,
brokerage

Dormy Inn resort maintenanceoutsourcing
Dormitory rennovation,
maintenance services

Advertising planning,production, and printing

Advertising agency business
Consignment

18

C
o
.
,
L
t
d
.

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

3.

Management Policy(1)

Basic Management Policy, (2) Financial Benchmarks, (3) Long Term Management Strategy, (4) Key

Management Issues

Because we have not made any significant changes to the topics mentioned above from our fiscal year March 2007
earnings announcement issued on May 16, 2007, we have chosen not to repeat the information in thisannouncement.
To view our previous earnings announcements, please refer to the website listed below.
(Kyoritsu Maintenance Home Page)
http://www.kyoritsugroup.co.jp/05/index.html(Tokyo Stock Exchange Home Page (Listed Company Search Page))
http://www.tse.or.jp/listing/compsearch/index.html

19

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

4. Consolidated Financial Statements(1) Consolidated Balance Sheet
Item(Assets)
I
Current assets
1
Cash and deposits
2
Notes and accounts receivables
3
Inventories
4
OthersDoubtful account reserves
Total current assets
II
Fixed assets
1
Tangible fixed assets(1) Buildings and structures(2) Land(3) Structures in trusts(4) Land in trust(5) Others
2Intangible fixed assets(1) Goodwill(2) Others
3
Investments and other assets(1) Investment securities(2) Deposits(3) Lease deposits(4) Others
Doubtful account reserves
Total fixed assets
III
Deferred assets
Total assets

Previous Interim End(September 30, 2006)
Value
Share

Current Interim End(September 30, 2007)
Value
Share

11,129
2,482
3,878
5,458
-52
22,896

11,475
2,813
824
4,882
-52
19,944

19,98019,114
6,121
5,066
4,852
102
2,486
4,543
6,235
4,834
4,560
-95

22.8

55,13524,08021,162
9,940
4,961
5,931

66,076

2,588

―
2,970

2,970

20,07877,801
42
100,740

8,038
7,160
5,494
5,235
-115
77.2
0.0
100.0

20

25,813
94,86037
114,842

17.4

82.6
0.0
100.0

YY
ChangeUnits: million yen
FY3/07 End(March 31, 2007)
Value
Share

14,333
2,899
1,939
5,772
-43
24,901-2,952

10,941

20,445
19,787
8,068
4,902
7,623

60,827

381

92
2,545

2,638

5,735
17,058-4
14,101

5,510
6,429
5,327
4,930
-101

22,09585,562
43
110,507

22.6

77.4
0.0
100.0

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Items(Liabilities)
I Current liabilities
1 Notes and accounts receivable
2 Short term debt
3 Redeemable portion of bond within one year
4 Accrued corporate and other tax
5 Deposits
6 Bonus reserves
7 Bonus reserves for directors
8 Compensation for completed work reserves
9 Others
Total current liabilities
II Fixed liabilities
1 Bonds
2 Long-term debt
3 Long-term deposits
4 Retirement benefit reserves
5 Director retirement reserves
6 Others
Total fixed liabilities
Total liabilities(Net assets)
I
Shareholders' equity
1 Capital
2 Capital reserves
3 Retained earnings
4 Treasury stock
Total shareholders' equity
II
Valuation and conversion gains
1 Valuation gains on securities
2 Gains on deferred hedges
Total valuation and conversion gains
III
Minority interests
Total net assets
Total liabilities and net assets

Previous Interim End(September 30, 2006)
Value
Share

Current Interim End(September 30, 2007)
Value
Share

1,637
14,243
1,440
1,770
9,237
692
60
67
3,527
32,67532.5

2,398
26,451
1,440
1,268
7,346
812
59
37
4,248
44,063

14,20318,505
4,180
1,015
377
3,354
41,63674,312

41.3
73.8

14,171
19,809
4,168
1,073
392
3,050
42,66586,7295,120
5,926
15,525-329
26,243

5.1
5.9
15.4
-0.3
26.1

27
2
29
154
26,428100,740

0.0
0.0
0.0
0.1
26.2
100.0

21

YY
ChangeFY3/07 End(March 31, 2007)
Value
Share

11,387

2,989
12,311
1,600
2,349
11,658
799
122
82
5,427
37,342

33.8

37.1
75.5

1,029
12,417

14,90722,364
4,146
1,033
395
3,222
46,06883,411

41.7
75.5

5,136
5,943
17,521-352
28,248

4.5
5.2
15.2
-0.3
24.6

16
16
1,996
-22
2,005

5,128
5,935
16,191-348
26,907

4.6
5.4
14.7
-0.4
24.3

-284
―
-284
148
28,112
114,842

-0.2
―
-0.2
0.1
24.5
100.0

-312
-2
-314
-6
1,684
14,10140
0
41
147
27,096
110,507

0.1
0.0
0.1
0.1
24.5
100.0

38.4

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement(2) Consolidated Income Statement

Item
Net sales
CGS
Gross income
III
SG&A
Operating incomeIV
Non-operating income
1 Interest received
2 Dividend received
3 Profit on marketable securities sales
4 Deposit returns
5 Minority interest profit
6 Others
V
Non-operating expense
1 Interest payment
2 Sales discounts
3 Others
Ordinary income
Extraordinary income
VI
1 Profit on marketable securities sales
2 Profit on fixed asset sales
3 Profit on disposal on investment securities
4 Returns from completed work reserves
5 Refund income
6 Others
VII Extraordinary loss
1 Loss on fixed asset disposal
2 Impairment accounting loss
3 Breach of payment penalty
4 Others
Net income before taxes
Corporate, resident, and enterprise taxes
Tax adjustments
Minority interest profit
Net income

Previous Interim(from April 1, 2006
to September 30, 2006)
Value
Share %

Current Interim(from April 1, 2007
to September 30, 2007)
Value
Share %

30,85024,005
6,845
4,044
2,800

39,52031,646
7,873
4,862
3,011

I
II

11
205
65
71
17
184
364
41
112

38
―
―
―
―
―
―
―
48
―
1,729
-452

100.0
77.8
22.2
13.1
9.1

556

1.8

518
2,838

1.7
9.2

38

0.1

48
2,828

0.1
9.2

1,276
27
1,523

4.2
0.1
4.9

22

52
62
46
71
12
47
406
―
114

―
―
―
45
54
12
―
67
―
0
1,205
49

293

521
2,783

112

100.0
80.1
19.9
12.3
7.6

0.7

1.3
7.0

0.3

YY
ChangeUnits: million yen
FY3/07(from April 1, 2006
to March 31, 2007)
Value
Share %

8,670
7,641
1,028
817
211

-262

2
-54

73

67
2,828

0.1
7.2

19
0

1,255
1
1,571

3.2
0.0
4.0

-21
-26
47

45
246
160
157
24
383
725
―
250

38
51
1,605
―
―
43
29
547
48
47
3,148
-727

66,28754,044
12,242
8,496
3,745

100.0
81.5
18.5
12.8
5.7

1,017

1.5

975
3,787

1.5
5.7

1,739

2.6

672
4,854

1.0
7.3

2,420
21
2,413

3.7
0.0
3.6

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement(3) Change in Consolidated Shareholder's Equity Statement
Previous Interim FY3/07 (From April 1 to September 30, 2006)

Units: million yen

Capital
5,051

As of March 31, 2006
Changes during the interim
New shares issued as a result of CB and stock
options exercise
Dividends from retained earnings
Director bonuses
Net income
Decline from increase in consolidated
Treasury stock acquisition
Treasury stock disposal
Other changes
Total changes during the interim
As of end September 30, 2006

Shareholder's Equity
Capital Reserves
Retained Earnings
5,857
14,68069

Treasury Stock Shareholder's Equity
25,263
-326

68

138

-3
0

-222
-157
1,523
-299
-3
0

-3
-329

979
26,243

-222
-157
1,523
-299
0
69
5,120

69
5,926

844
15,525

Evaluation, Translation Gains
OthersDeferred
Evaluation,
249
―
249

Minority
Total Net Assets
Holdings
179
25,691

As of March 31, 2006
Changes during the interim
New shares issued as a result of CB and stock
options exercise
Dividends from retained earnings
Director bonuses
Net income
Decline from increase in consolidated
Treasury stock acquisition
Treasury stock disposal
-221
2
-219
Other changes
-221
2
-219
Total changes during the interim27
229
As of end September 30, 2006
(Note) Disposal of earnings as decided upon during our annual shareholders' meeting held in June 2006

138

-24
-24
154

-222
-157
1,523
-299
-3
0
-243
736
26,428Current Interim FY3/08 (From April 1 to September 30, 2007)

As of March 31, 2007
Changes during the interim period
New shares issued as a result of CB andstock option exercise
Dividends from retained earnings
Net income
Rise from increase in consolidated subsidiaries
Treasury stock acquisition
Treasury stock disposal
Other changes
Total changes during the interim
As of September 30, 2007

As of March 31, 2007
Changes during the interim period
New shares issued as a result of CB andstock option exercise
Dividends from retained earnings
Net income
Rise from increase in consolidated subsidiaries
Treasury stock acquisition
Treasury stock disposal
Other changes
Total changes during the interim
As of September 30, 2007

Shareholder's Equity
CapitalCapital Reserves Retained Earnings
Treasury Stock
Shareholder's Equity
5,128
5,935
16,191-348
26,907
8

7

16
-268
1,571
26

0
8
5,943

8
5,136

1,329
17,521

Evaluation, Translation Gains
OthersDeferred
Evaluation,
0
40
41

-4
0

-268
1,571
26
-4
0

-4
-352

1,341
28,248

Minority
Total Net Assets
Holdings
147
27,096
16

-325
-325
-284

△0
△0
―

23

-325
-325
-284

0
0
148

-268
1,571
26
-4
0
-325
1,016
28,112

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Previous FY3/07 (From April 1, 2006 to March 31, 2007)
Capital
5,051
As of March 31, 2006
Changes during the fiscal year77
New shares issued as a result of CB, stock options exercise
Dividends from retained earnings
Dividends from retained earnings
Director bonus
Net income
Decline from increase in consolidated subsidiaries
Acquisition of treasury stock
Disposal of treasury stock
Other changes
77
Total changes during the fiscal year
5,128
As of March 31, 2007

OthersUnits: million yen
Shareholder's Equity
Capital Reserves
Retained Earnings
5,857
14,680Treasury Stock
Shareholder's Equity-326
25,263

76

-22
0

154
-222
-223
-157
2,413
-299
-22
1

1,510
16,191

-21
-348

1,643
26,907

Minority
Holdings

Total Net Assets

-222
-223
-157
2,413
-299
0
77
5,935

Evaluation, Translation Gains
Deferred
Evaluation,
249
―
249

As of March 31, 2006
Changes during the fiscal year
New shares issued as a result of CB, stock options exercise
Dividends from retained earnings
Dividends from retained earnings
Director bonus
Net income
Decline from increase in consolidated subsidiaries
Acquisition of treasury stock
Disposal of treasury stock
-208
0
-207
Other changes
-208
0
-207
Total changes during the fiscal year40
041
As of March 31, 2007
(Note) Dividend and bonus determined during annual general shareholders' meeting held in June 2006.

24

179

25,691

-31
-31
147

154
-222
-223
-157
2,413
-299
-22
1
-239
1,404
27,096

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement(4) Interim Consolidated Cash Flow Statement
Last Interim
Value

Items
I Cash flows from operating activities
Net income before taxes and other adjustments
Depreciation and amortization
Impairment loss
Change in bonus reserves
Interest and dividends received
Interest payments
Liquidation of marketable securities
Change in receivables
Change in accounts due
Change in inventories
Change in accounts payable
Change in prepayments received
Change in deposits
Change in deposits from customers
Bonus payments
OthersSubtotalInterest and dividends received
Interest payments
Corporate tax returns
Corporate tax payments
Cash flows from operating activities
II Cash flows from investing activities
Marketable securities purchases
Marketable securities liquidation income
Acquisition of tangible fixed assets
Tangible fixed assets liquidation income
Intangible fixed asset acquisition
Long term prepayments
Loans extended
Loans recovered
Lease deposits paid
Lease deposits recovered
Acquisition of securities from change in consolidated subsidiaries
OthersCash flows from investing activities
III Cash flows from financing activities
Net change in short-term debt
Net change in long-term debt
Repayment of long-term debt
Payment from minority shareholder
Income from bond issuance
Payment for bond redemption
Treasury stock acquisition
Dividend payment
Dividend payment to minority shareholder
OthersCash flows from financing activities
IV Translation gains for cash and equivalents
V Net change in cash and equivalents
VI Cash and equivalents at term start
VII Change in cash and equivalents from changes in consolidation
VIII Cash and equivalents at term end

25

Current Interim YY Change
Value
Value

Units: million yen
FY3/07
Value

2,828
940
―
-298
-217
364
-103
936
688
-2,580-2,005-1,750
-787
-117
-164
408
-1,858
143
-365
―
-717
-2,798

2,828
1,355
67
―
-115
406
―
178
372
1,115
-237
-4,278
-762
-135
―
-662
131
146
-431
26
-2,266-2,393

404

4,854
2,101
547
-191
-291
725
-198
654
410
-641
-1,240
544
53
60
-164
-1,577
5,647
280
-724
―
-1,635
3,568-1,615
4,465-8,062
7,825
-376
-264
-292
280
―
169
―
-135
1,992

-3,680620-6,367
―
-150
-207
-362
309
-1,039―-23-481-11,382-13,375-4,114
6,620-15,404
8,787
-522
-414
-480
517
-1,016287―
2,087-3,654-4,866
2,666-8,263

13,634762-2,811-10,540
12,360-10,355

9,995
-720
―
-222
-18
-21
-1,450―-2,256
12,236537
10,517―-880

11,584-1,440

-267
-14
-23
10,399―-3,377
13,721―
10,343

-445
-27
-102
1,034
―
949
12,236535
13,721

1,990

11,849―-1,121
1,484
-537
-173

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

Segment Informationa. Information by Business Segment
Previous Interim (from April 1 to September 30, 2006)
Dormitories

HotelsContracted
services

Food
service

Construction

Other

Total

Units: million yen
Company
Consolidated
wide

Sales
(1)

17,531

5,983

4,005

990

1,108

1,232

30,850

－

(2)

29

44

1,706

864

4,270

686

7,602

7,602

－

17,56014,282
3,278

6,027
6,377
-349

5,711
5,368
342

1,855
1,929
-74

5,378
5,181
196

1,919
1,791
127

38,452
34,930
3,521

7,602
6,880
721

30,85028,0502,800

External sales to clientsInternal sales
Sales and transfers
Total Sales
Operating expenses
Operating income

Current Interim (from April 1 to September 30, 2007)
Dormitories

HotelsContracted
services

Food
service

Construction

Other

Total

30,850

Units: million yen
Company
Consolidated
wide

Sales
(1)

18,729

9,990

4,030

1,313

4,031

1,426

39,520

－

(2)

34

71

1,476

1,159

1,990

756

5,490

5,490

－

18,764
15,180
3,583

10,062
10,056
5

5,506
5,290
216

2,473
2,476
-3

6,021
6,018
3

2,182
2,080
102

45,01041,102
3,907

5,490
4,593
896

39,52036,5083,011

External sales to clientsInternal sales
Sales and transfers
Total Sales
Operating expenses
Operating income
FY3/07 (from April 1 to March 31, 2007)

Dormitories

HotelsContracted
services

Food
service

Construction

Other

Total

39,520

Units: million yen
Company
Consolidated
wide

Sales
(1)

33,396

13,274

8,257

2,177

6,689

2,491

66,287

－

(2)

50

153

3,423

2,153

8,562

1,527

15,87015,870－33,447
28,107
5,340

13,42814,556-1,127

11,68011,055
625

4,330
4,504
-174

15,251
14,872
379

4,018
3,764
254

82,15776,8605,297

15,87014,3191,551

66,28762,541
3,745

External sales to clientsInternal sales
Sales and transfers
Total Sales
Operating expenses
Operating income

26

66,287

Kyoritsu Maintenance Interim FY3/08 Earnings Announcement

6. Consolidated Sales Overview(Units: million yen)
The table below shows sales results in each of our business segments during the interim period.
Business segments
Previous Interim
Current Interim
YY Change
FY3/07(as of September 30, 2006) (as of September 30, 2007)(as of March 31, 2007)
17,56018,76433,447
Dormitories
6.9
10,557
11,076
19,576Student
4.9
4,350
4,868
8,451
Corporate
11.9
1,488
1,543
3,088
Dormir
3.7
1,165
1,276
2,329
Outsourced
9.5
13,4286,027
10,062
Hotels
66.9
3,177
4,342
6,398
Dormy Inn
36.7
2,849
5,719
7,029
Resort
100.7
5,711
5,506
11,680Contracted services-3.6
Office building management
3,165
2,829
6,379
-10.6
Residential property
2,545
2,677
5,301
5.2
1,855
2,473
4,330
Food service
33.3
5,378
6,021
15,251
Construction
12.0
Other
1,919
2,182
4,018
13.7
-7,602-5,490-15,870
Consolidated eliminations－
30,85039,52066,287
Total
28.1(Note) All figures above do not include consumption taxes.

2. The table below shows our capacity, resident contracts, and occupancy rates
Previous Interim
Current Interim
FY3/07Term(as of September 30, 2006)(as of September 30, 2007)(as of March 31, 2007)
Capacity Contracts Occupancy Rate Capacity Contracts Occupancy Rate Capacity Contracts Occupancy Rate
Item
residents residents% residents residents% residents residents%－－－
Student
15,206
15,771
15,458－－－－－－
Corporate
5,535
6,264
6,682
－
－
－
Dormir
3,584
3,447
96.2
3,755
3,543
94.4
3,604
3,516
97.6
Total
26,98824,18889.6
28,48825,57889.8
26,99525,65695.0

27