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

Summary of Consolidated Financial Results for the
Fiscal Year Ended March 31, 2021
［JGAAP］
May 2021－

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Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
[based on Japanese GAAP]May 14, 2021
Name of listed
Listed exchange:
Kyoritsu Maintenance Co., Ltd.
company
Tokyo
Code
9616
URL https://www.kyoritsugroup.co.jp/
Representative(Title)President(Name) Koji Nakamura
Contact(Title)Managing Director(Name) Manabu Takaku
Tel +81-3-5295-7778
Scheduled date of Regular General Meeting
Scheduled date of commencement ofJune 25, 2021
June 28, 2021
of Shareholders
payment of dividends
Scheduled date of submittal of Securities
June 25, 2021
ReportSupplementary materials prepared concerning financial results: Yes
Briefing held on financial results: No(rounded down to the nearest million yen)
1. Consolidated financial results for the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results(Percentage figures represent year-over-year changes)
Net income attributable
Net sales
Operating profit
Ordinary profit
to owners of the parent
MillionMillioMillionMillion
%
%
%
%
yen
n yen
yen
yen
Year ended－－－
121,281-28.6-9,057-9,116-12,164
March 31, 2021
Year ended
169,770
4.3
11,205-23.1
12,499
-12.7
6,927
-27.6
March 31, 2020
Fiscal year
(Note)
Fiscal year
ended
MillionMillion(－%)
Comprehensive-11,887
ended March
6,219(-33.7%)
March 31,yen
yen
income31, 2020
2021

Year ended
March 31, 2021
Year ended
March 31, 2020%

Ordinary
income to total
assets%Operatingincome to net
sales
%

－

－

－

－

－

8.5

6.0

6.6

Diluted net income per
share

Return on
equityYen

Yen-311.98
177.68Net income per share－
Year ended MarchMillion yen－
31, 2020
Note: For the fiscal year ended March 31, 2020, diluted net income per share is not shown due to the absence of potential shares(Reference) Gain/loss on equity-method
investments

Year ended March
31, 2021－ Million yen

with dilutive effects. For the fiscal year ended March 31, 2021, diluted net income per share is not shown due to the recording of net
loss per share and the absence of potential shares with dilutive effects.
(2) Consolidated financial position
Total assets
Million yen
Year ended
239,032
March 31, 2021
Year ended
217,086
March 31, 2020
(Reference) Equity
Year ended
capitalMarch 31, 2021

Net assets
Million yen

70,784%

Net assets per share
Yen

70,78429.6

1,815.45

83,95438.7

2,153.24

Millionyen－

2

Equity ratio

Year ended
March 31, 2020－

83,954

Millionyen

(3) Consolidated cash flow position
Net cash provided by(used in) operating
activities
Million yen
Year ended-17,835
March 31, 2021
Year ended
16,460March 31, 2020

Net cash provided by(used in) investing
activities
Million yen

Net cash provided by(used in) financing
activities
Million yen

Balance of cash andcash equivalents at end of
periodMillion yen-10,006

34,23924,212-22,904

8,208

17,792Total
amount ofdividends(Total)Millionyen

Dividend
Dividends topayout ratio net assets(Consolidat(Consolidateed)d)2. Dividends
Annual dividends

Year ended March 31,
2020
Year ended March 31,
2021
Year ending March 31,
2022 (Forecast)

Q1 endQ2 endQ3 endYear end

Total

Yen

Yen

Yen

Yen

Yen

－

22.00

－

23.00

45.00

－

10.00

－

10.00

20.00

－

10.00

－

10.00

20.00

%

%

1,754

25.3

2.1

779

－

1.0

48.7

3. Forecasted consolidated results for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)(Percentage figures represent year-over-year changes)
Net income
Net income per
Net sales
Operating profit
Ordinary profit
attributable to owners
shareof the parent
MillionMillionMillionMillion
%
%
%
%
Yen
yen
yen
yen
yen
－
－
－
Full Year
174,500
43.9
4,000
3,400
1,600
41.04
*Notes(1) Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in thescope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards, etc.: None(ii) Changes in accounting policies other than those under (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(3) Number of issued shares (common stock)(i) Number of issued shares at the endof the period (including treasury shares)(ii) Number of treasury shares at theend of the period(iii) Average number of shares
during the period

Year ended
March 31, 2021
Year ended
March 31,2021
Year ended
March 31, 2021

39,219,818
shares229,475
shares38,990,301
sharesYear ended
March 31, 2020
Year ended
March 31,2020
Year ended
March 31, 2020

39,218,826
shares228,844
shares38,990,276
shares(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1)
Non-consolidated operating results(Percentage figures represent year-over-year changes)
Net sales
Operating profit
Ordinary profit
Net income
MillionMillionMillionMillion
%
%
%
%
yen
yen
yen
yen
Year ended March
102,698-29.4-10,105－-9,635－-13,038－
31, 2021
Year ended March
145,469
2.8
9,983
-26.4
11,731
-15.0
7,127
-24.9
31, 2020

－

3

－

Yen

Diluted net income per
share
Yen

-334.41－

182.81－

Net income per share
Year ended March
31, 2021
Year ended March
31, 2020

Note: For the fiscal year ended March 31, 2020, diluted net income per share is not shown due to the absence of potential shareswith dilutive effects. For the fiscal year ended March 31, 2021, diluted net income per share is not shown due to the recording of net
loss per share and the absence of potential shares with dilutive effects.
Non-consolidated financial position

Year ended March 31, 2021
Year ended March 31, 2020
(Reference) Equity capital

Total assets
Million yen
219,555
196,946
Year ended March
31, 2021

Net assets
Million yen
66,63480,783
Million
66,634yen

Equity ratio
%
30.3
41.0
Year ended March
31, 2020

Net assets per share
Yen
1,709.00
2,071.91
Million80,783yen*Summaries of financial results are not subject to auditing by a certified public accountant or auditing firm.
*Explanation of the appropriate use of business forecasts and other special notes(Note concerning forward-looking statements)
The forward-looking statements, including business forecasts and other future projections contained in this document are based on
information available to the Company at the time of preparation and on certain assumptions deemed reasonable by the Company,
therefore do not represent commitments that such results will be achieved. Actual business results may differ materially due to various
factors.
Please refer to page 10, "1. Overview of Operating Results etc.: (4) Future Outlook," for the assumptions used for the forecast offinancial results and notes concerning the use of the forecast of financial results.

(How to obtain supplementary materials on financial results and content of briefings on financial results)
Supplementary materials on financial results and video recordings of briefings on financial results will be posted on the Company
website.

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Table of contents for attached materials
1.
(1)

Overview of Operating Results, etc. ....................................................................................................................................... 6
Overview of This Year’s Operating Results ............................................................................................................................ 6i.
ii.

Overview of This Year’s General Financial Position .......................................................................................................... 6
Overview of This Year’s Financial Position by Major Business Segment .......................................................................... 7

(2)
(3)

Overview of Financial Position during the Period under Review ........................................................................................... 9
Cash-flow Position during the Period under Review ............................................................................................................ 10(4)
2.

Future Outlook ...................................................................................................................................................................... 10
Basic Policy on Selection of Accounting Standards .............................................................................................................. 12

3.
(1)

Consolidated Financial Statements and Major Notes ............................................................................................................ 13
Consolidated Balance Sheet .................................................................................................................................................. 13(2)i.

Consolidated Income Statement and Consolidated Statement of Comprehensive Income.................................................... 15(Consolidated Income Statement) .................................................................................................................................... 15

ii.
(Consolidated Statement of Comprehensive Income) ...................................................................................................... 17(3) Consolidated Statement of Changes in Equity ...................................................................................................................... 18(4)(5)

Consolidated Statement of Cash Flows ................................................................................................................................. 20
Notes on Consolidated Financial Statement .......................................................................................................................... 22i.
ii.

(Notes on the Going Concern Assumption) ...................................................................................................................... 22(Segment Information etc.)............................................................................................................................................... 22

iii.
iv.

(Per-share information) .................................................................................................................................................... 25(Significant Subsequent Event) ........................................................................................................................................ 25

4.

Other ..................................................................................................................................................................................... 26

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1. Overview of Operating Results, etc.
(1) Overview of This Year’s Operating Resultsi.

Overview of This Year’s General Financial Position(Consolidated Financial Results)(in million yen)Previous fiscal year
Fiscal year ended March 31, 2020

Current fiscal year
Fiscal year ended March 31, 2021

Change(%)

Net sales

169,770

121,281-28.6

Operating profit

11,205-9,057－

Ordinary profit

12,499-9,116－

Net income attributable toowners of the parent

6,927-12,164－

This consolidated fiscal year was a year of turbulence for the domestic economy. While continuing to face a difficult situation due
to the worldwide spread of COVID-19, economic activities gradually resumed and the economy started to recover following the liftingof the Declaration of State of Emergency on May 25, 2020. However, the State of Emergency was declared again due to the resurgenceof COVID-19, and the future of the economy once again became uncertain.
The Group’s Dormitory Business started the fiscal year with an occupancy rate of 93.7%, slightly lower than the previous year, due
to the postponement of foreign students coming to Japan due to the spread of COVID-19. Although the Hotel Business saw a sharp
decline in inbound tourism, domestic demand began to rise from June and the “Go To Travel Campaign” also provided a tailwind. The
Group, as a whole, returned from loss in the first quarter of the current consolidated accounting period to profitability in both operating
income and ordinary income in the second and third quarters of the current consolidated accounting period, continuing the recovery
trend. However, the occupancy rate in the Hotel Business dropped sharply as a result of the suspension of the "Go To Travel Campaign"in December followed by the Declaration of a State of Emergency due to the resurgence of COVID-19. Although the Company wasback on a recovery track in February, it reported large deficit for the fourth quarter of this consolidated accounting period mainly due
to new opening costs in the dormitory business and hotel business, as well as expenses associated with the conclusion of a committed
syndicated loan agreement. Meanwhile, the Company has strived to provide services that customers can use safely, and proactively
develop new products designed to address the COVID-19 disaster. The Company also has worked to secure long-term working capitalfor three fiscal years including this fiscal year. In addition, the Company has conducted a thorough review of business costs and taken
steps to strengthen its business structure in anticipation of a V-shaped recovery in the future.
As a result, net sales amounted to 121,281 million yen (28.6% decrease YoY), the operating loss to 9,057 million yen (compared toa profit of 11,205 million yen in the previous period) and the ordinary loss to 9,116 million yen (compared to a profit of 12,499 million
yen in the previous period). The loss attributable to owners of the parent amounted to 12,164 million yen (compared to a profit of 6,927
million yen in the previous period) due to extraordinary losses caused mainly by temporary closure of some hotels and restaurants aspart of preventive measures against COVID-19, as well as the closure of one office in Korea and the Global Cabin (new-style compact
hotel) business to further strengthen the Company’s foundations.
In addition, we applied for employment adjustment subsidies to compensate for the absence allowances paid to employees whostayed at home due to temporary closures and suspensions, etc., which were recorded as non-operating income and extraordinary
income, respectively.

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ii.

Overview of This Year’s Financial Position by Major Business Segment<Dormitory Business (student dormitories, employee dormitories, dormitory and contracted dormitories)(in million yen)Previous fiscal year

Current fiscal year

ChangeFiscal year ended March 31, 2020

Fiscal year ended March 31, 2021(%)

Net sales

50,30346,489-7.6

Operating profit

8,021

4,903

-38.9

Although the Dormitory Business opened 14 new offices and 1,095 new rooms nationwide in total in April, it started with an overall
initial occupancy rate of 93.7% (5.0 points decrease YoY) mainly due to cancellation by foreign students coming to Japan due to the
spread of COVID-19, and decreased corporate demand for training programs for new employees.
In the Student dormitory business, the Company introduced initiatives such as the “Novel Coronavirus Schooling Support Program”
which provides financial support to dormitory students under the COVID-19 situation, whereby the Company provides interest-freeloans to students to cover their dormitory fees. While many dormitory students have used the program, it has taken some time forforeign students to resume coming to Japan, resulting in net sales of 23,651 million yen (9.1% decrease YoY).
In the Employee dormitory business, although certain companies carried out their training program for new employees in a different
period, this was not enough to achieve full-fledged recovery, resulting in net sales of 13,932 million yen (7.1% decrease YoY).
The Domeal business reported net sales of 4,833 million yen (3.1% increase YoY) mainly due to the introduction of tenant mediationfrom affiliated schools and companies for studio-type dormitories.
In the Subcontracted dormitory business, the Company manages and operates dormitories owned by companies and schools on acontract basis. The Business reported net sales of 4,072 million yen (11.2% decrease YoY) mainly due to partial suspension of meal
services caused by COVID-19.
As a result of the above, the Dormitory Business, in aggregate, operates offices in 507 locations (increased by 13 YoY exclusive of
subcontracted locations), and a capacity of 41,927 persons (increased by 1,294 YoY), and reported net sales of 46,489 million yen(7.6% decrease YoY) and an operating profit of 4,903 million yen (38.9% decrease YoY).
The number of residents as of the end of March 2021 was 37,906 (decreased by 218 YoY) mainly due to the spread of COVID-19.
<Hotel Business (Dormy Inn, resorts)>(in million yen)Previous fiscal year
Fiscal year ended March 31, 2020

Current fiscal year
Fiscal year ended March 31, 2021

Change(%)

Net sales

78,976

46,246-41.4

Operating profit

4,853-13,130－

In the Hotel Business, the Company, in consideration of the future, opened 4 facilities: ”Natural Hot Spring Tsuruno-minato no Yu
Dormy Inn Premium Nagasaki Ekimae,”“Natural Hot Spring Renka no Yu Onyado Nono Kyoto Shichijo,”“Natural Hot Spring Romanno Yu Dormy Inn Kobe Motomachi,” and “Natural Hot Spring Hojo no Yu Dormy Inn Ikebukuro” in the Dormy Inn Business, andopened 3 facilities, “Yumeguri no Yado Shuzenji Hot Spring Katsuragawa,” “Yumeguri no Yado Okuhida Hot Spring Hirayukan,” and“Wakura Hot Spring Shirasagi no Yu Noto Kaishu” in the Resorts Business.
Although the current fiscal year started with the impact of the spread of COVID-19, the occupancy rate recovered rapidly after the
emergency declaration was lifted in May, and especially in the resort business, the average room rate, which had been an issue,
exceeded that of the same period of the previous year due to an increase in domestic travelers, benefiting from the "Go To Travel
Campaign. However, since the re-issuance of the State of Emergency in January, the capacity utilization rate plummeted again, andalthough it began to recover in February, it put significant pressure on earnings. In the Dormy Inn Business, although the occupancy
rate has been significantly higher than the industry average, it has not been able to return to the previous year's level due to the decline
in inbound tourism and the impact of business trip restraints, and it has taken time for the Osaka area in particular to recovering time
to recover. The average room rate also remained below that of the same period last year.
Under such circumstances, the Company has promoted the development of new products responding to changes in the operating
environment including preventive measures against COVID-19, such as “WORK PLACE DORMY (an office where guest can stay
and a hotel where guest can live) which is designed to be used for telework and provides hot spring facilities and meals, and “Direct
Round Trip Service (a plan that comes with taxi transportation)” which targets domestic travelers in the Resorts Business.
As a result of the above, the Hotel Business, in aggregate, operates offices in 121 locations, and 18,354 rooms (an increase of 698
rooms YoY), and reported net sales of 46,246 million yen (41.1% decrease YoY) and an operating loss of 13,130 million yen (compared
to a profit of 4,853 million yen in the previous period).

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<Comprehensive Building Management Business>(in million yen)Previous fiscal year

Current fiscal year

ChangeFiscal year ended March 31, 2020

Fiscal year ended March 31, 2021(%)

Net sales

16,661

16,012-3.9

Operating profit

611

624

2.1

Although the Comprehensive Building Management Business reported net sales of 16,012 million yen (3.9% decrease YoY) mainly
due to partial delays and decreases in repair work, it reported an operating profit of 624 million yen (2.1% increase YoY) due to cost
reduction mainly as a result of a shift to in-house operations.
<Food Service Business (Restaurants, Contracted food service and Contracted hotel restaurants)>(in million yen)Previous fiscal year
Fiscal year ended March 31, 2020

Change(%)

Current fiscal year
Fiscal year ended March 31, 2021

Net sales

7,357

5,291

-28.1

Operating profit

110

-10

－

The Food Service Business reported net sales of 5,291 million yen (28.1% decrease YoY) and an operating loss of 10 million yen(compared to a profit of 110 million yen in the previous period), mainly due to a decrease in the number of hotel restaurant operations,caused by the spread of COVID-19, and the preventive measures undertaken including shortened opening hours and temporary closuresof restaurants.
<Development Business>(in million yen)Previous fiscal year

Current fiscal year

ChangeFiscal year ended March 31, 2020

Fiscal year ended March 31, 2021(%)

Net sales

16,703

12,610-24.5

Operating profit

1,376

650

-52.8

The Development Business reported net sales of 12,610 million yen (24.5% decrease YoY) and an operating profit of 650 million
yen (52.8% decrease YoY) mainly due to the absence of real estate sales and leaseback in this period.
<Other Businesses>

Net sales
Operating profit(in million yen)Previous fiscal year

Current fiscal year

ChangeFiscal year ended March 31, 2020

Fiscal year ended March 31, 2021(%)

13,361

15,510

16.1

31

606

1,798.2

Other Businesses consist of the Senior Life Business (management and operation of senior residences), the Public Kyoritsu
Partnership (PKP) Business (services provided under contract to local governments), support business for people who live alone, theinsurance agency business, comprehensive human-resource services, the financial business and the administrative outsourcing business.
The reported net sales of these businesses increased to 15,510 million yen (16.1% increase YoY), and operating income increased to
606 million yen (1,798.2% increase YoY). Mainly due to the steady improvement in earnings in the Senior Life Business and the PKPBusiness.

－8－

(2) Overview of Financial Position during the Period under Review(Assets)
The total assets as of the end of this consolidated fiscal year were 239,032 million yen, an increase of 21,945 million yen from theend of the previous consolidated fiscal year. This was mainly due to increased holdings in cash and deposits, real estate for sale, andbuildings and structures.
(Liabilities)
The liabilities as of the end of this consolidated fiscal year were 168,247 million yen, an increase of 35,115 million yen from theend of the previous consolidated fiscal year. This was mainly due to the additional issuance of convertible bonds with share acquisitionrights and an increase in long-term borrowings.
(Net Assets)
The net assets as of the end of this consolidated fiscal year were 70,784 million yen, a decrease of 13,169 million yen from the endof the previous consolidated fiscal year. This was mainly due to a decrease in retained earnings.
As a result, the equity ratio became 29.6%, a decrease of 9.1 points from the end of the previous consolidated fiscal year.

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9

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(3) Cash-flow Position during the Period under Review
Cash and cash equivalent holdings as of the end of this consolidated fiscal year were 24,212 million yen, an increase of 6,419 million
yen from the end of the previous consolidated fiscal year.
(Cash Flows from Operating Activities)“Net cash provided by (used in) operating activities” decreased by 34,296 million yen from the previous consolidated fiscal year toa negative 17,835 million yen due to the impact of net income (loss) before taxes.
(Cash Flows from Investment Activities)“Net cash provided by (used in) investing activities” decreased by 12,898 million yen compared to the previous consolidated fiscal
year to a negative 10,006 million yen, due to the impact of payments for purchase of property, plant and equipment.
(Cash Flows form Financing Activities)“Net cash provided by (used in) financing activities,” increased by 26,031 million yen from the previous consolidated fiscal year toa positive 34,239 million yen due to the impact of proceeds from long-term borrowings.
(Reference) Trends in Cash Flow-related Indicators
Year ended
March 31, 2017
Equity ratio (%)

Equity ratio on a market value
basis (%)
Cash flow to interest-bearing
debt ratio (annual)Interest coverage ratio (times)

Year ended
March 31, 2018Year ended
March 31,2019Year ended
March 31,2020Year ended
March 31,2021

37.0

37.6

39.3

38.7

29.6

74.0

103.9

105.7

42.8

59.8

5.0

6.1

4.6

5.7

-7.3

24.9

26.1

45.3

47.2

-39.1

Equity ratio: Equity capital / total assets
Equity ratio on a market value basis: Market capitalization / total assets
Cash flow to interest bearing debt ratio: Interest-bearing debt / cash flow
Interest coverage ratio: Cash flow / interest payments(Note) 1. Each indicator is calculated based on the consolidated figures.
2. Market capitalization is calculated based on the number of issued shares exclusive of treasury shares.
3. Cash flow used to calculate this indicator is operating cash flow.
4. Interest-bearing debts used to calculate this indicator are all debts recorded on the consolidated balance sheet for which interestis paid.
5. Interest payments used to calculate this indicator are the interest expenses paid that are stated on the consolidated statement ofcash flows.

(4) Future Outlook(Consolidated Financial Results)(in million yen)

Results for the current fiscal year
Year ended March 31, 2021

Outlook for the next fiscal year
Year ending March 31, 2022

Net sales

121,281

174,500

43.9

Operating profit-9,0574,000－

Ordinary profit-9,1163,400－

Net income attributable toowners of the parent-12,164

1,600

－

－

10

－

Change(%)

As for the outlook of the future, the Company expects the situation to remain uncertain as the State of Emergency was declared forthe third time in April 2021 in Japan due to the worldwide spread of COVID-19.
The Dormitory Business reported an initial occupancy rate of 92.1% in April 2021 (1.6 points decrease YoY). The Student dormitory
business will focus on meeting domestic demand as well as promote the reinforcement of partnerships with large universities in orderto deal with cancellation by foreign students coming to Japan. The Employee dormitory business will develop new services to provide“safe, secure and reasonable workspaces” near home.
In the Hotel Business, the Company will further refine the high level of satisfaction it has received from customers as well as promote
the development of new services that respond to changes in the operating environment, including preventive measures against COVID19. This includes “WORK PLACE DORMY (an office hotel where guests can stay and work)” which is designed to be used fortelework and provides hot spring facilities and meals, and “Direct Round Trip Service (a plan that comes with taxi transportation)”
which targets domestic travelers in the Resorts Business. The Hotel Business will also promote the development of new services suchas “NEW LOCAL STAY Plan (a plan limited to local market)” and “No 3Cs, Safe Plan” which minimizes contact between customers
including in-room check-ins. Further, the Hotel Business will work towards the improvement of its earning potential in anticipation ofrecovering from the COVID-19 pandemic, including the acceleration of the development of “local taxi tour plan” centered aroundhotels and the strategic opening of new hotels.
The Comprehensive Building Management Business will actively enhance its market competitiveness by improving its technologicalcapability and product values including the expertise for gaining further trust from customers as well as providing quality buildingrelated services through its new, integrated organizational structure.
The Food Service Business will seek to develop products and services that achieve higher levels of customer satisfaction and improve
its earning structure by implementing a strict control over expenses.
The Development Business will support Kyoritsu Group with its development and expansion plan as well as thoroughly develop
new clients and strengthen cost control system. The Development Business will also contribute to the improvement of the financial
standing through the sale and leaseback of real estate.
In Other Businesses, a business model will be established as soon as possible to make the Senior Life Business and the Public
Kyoritsu Partnership (PKP) Business the core pillar business and achieve further earnings growth in the future.
Based on the above, the Group expects to return to profitability in the next fiscal year with the expected net sales of 174,500 million
yen (43.9% increase YoY), expected operating profit of 4,000 million yen (compared to a loss of 9,057 million yen in the current
period), expected ordinary profit of 3,400 million yen (compared to a loss of 9,116 million yen in the current period), expected profit
attributable to owners of the parent of 1,600 million yen (compared to a loss of 12,164 million yen in the current period).
The above forecasts are based on information available as of the date of publication of this document, and actual results may differ
from the forecasts due to various factors.

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11

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2. Basic Policy on Selection of Accounting Standards
The Group’s policy for the time being is to prepare its consolidated financial statements in accordance with Japanese GAAP, taking
into consideration the comparability of consolidated financial statements over time and across companies.
The Group will properly deal with the application of IFRS taking into account domestic and international situations.

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3.

Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(in million yen)Previous consolidated fiscal year
(March 31, 2020)

Current consolidated fiscal year
(March 31, 2021)

18,303
11,057211
11,518
256
9,290
(46)
50,59024,588
9,702
15,959
1,670
513
9,562
(52)
61,944

81,071(33,464)
47,60744,50913,80514,809(11,281)
3,527
109,450
3,918

89,488(36,079)
53,40845,827
11,27816,463(12,070)
4,393
114,907
4,235

4,761
1,030
17,337
16,226
3,416
9,947
(184)
52,535
165,904

4,499
1,388
16,48916,912
7,029
11,144(119)
57,344
176,487591
591
217,086600
600
239,032

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Real estate for sale in process
Costs on uncompleted construction contracts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Lease deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

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13

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(in million yen)Previous consolidated fiscal year
(March 31, 2020)

Current consolidated fiscal year
(March 31, 2021)

10,124
12,034
5,280

4,667
12,702
5,280

19,992

－

1,900
2,103
404

1,764
714
37

9

3

19,231
71,08024,677
49,84833,820－21,922
3,575
352
1,140
251
597
390
62,050133,131

28,54030,14253,003
3,367
350
1,045
252
699
997
118,398
168,247

7,961
12,81764,281(355)
84,706

7,964
12,821
50,831(357)
71,259

(117)
(597)
(36)
(751)
83,954217,086

55
(555)
24
(474)
70,784
239,032

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of convertible bonds with shareacquisition rights
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for warranties for completed
construction
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bonds with share acquisition rights
Long-term loans payable
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

－

14

－

(2) Consolidated Income Statement and Consolidated Statement of Comprehensive Incomei.

(Consolidated Income Statement)(in million yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

169,770
135,554
34,215

121,281111,293
9,987

4,948
1,033
653
404
120
1
2,126
8,780
－
1,793
761
320
2,064
23,009
11,205

5,162
1,029
140
35
149
1
1,822
4,917
7
1,829
1,338
345
2,264
19,044(9,057)

75
126
17
119
－
1,224
373
1,937

83
99
777
129
937
－
262
2,290

342
49
－
251
643
12,499

455
978
502
413
2,349
(9,116)

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries, allowances and bonuses
Employee benefits expenses
Provision for bonuses
Provision for directors’ bonuses
Retirement benefit expenses
Provision for directors’ retirement benefits
Sales promotion expenses
Fees payable
Provision of allowance for doubtful accounts
Business consignment expenses
Rent expenses
Depreciation and amortization
Other
Total selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Subsidy income
Revenues from cancelled security deposits
Compensation income
Gain on investments in investment partnerships
Other
Total non-operating income
Non-operating expenses
Interest expenses
Fees payable
Expenses for measures for COVID-19
Other
Total non-operating expenses
Ordinary income (loss)

－

15

－

(in million yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

508
－
2
510

－
153
－
153

2,227
26
－
－
63
2,316
10,693
4,163
(396)
3,766
6,927
6,927

442
－
2,531
2,886
45
5,907
(14,870)
1,012(3,718)(2,705)(12,164)(12,164)

Extraordinary income
Gain on sale of investment securities
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on disaster
Loss on store closings
Loss on temporary closing, etc.
Other
Total extraordinary losses
Net income (loss) before taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Current net income (loss)
Net income (loss) attributable to owners of parent

－

16

－

ii.

(Consolidated Statement of Comprehensive Income)(in million yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

6,927(12,164)

(484)
(175)
(48)
(708)
6,219

173
42
61
277
(11,887)

6,219(11,887)

Current net income (loss)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Re measurements of defined benefit plans
Total accumulated other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparent－17－

(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)(in million yen)
Shareholders' equity
Share capital
Balance at the beginning ofcurrent period

Capital surplus

Retained earnings

7,960

12,8161

159,186

Total shareholders'equityTreasury shares(349)

79,613

Changes during period
Issuance of new shares(Exercise of share acquisitionrights)3

Dividends from surplus
Net income attributable toowners of the parent(1,832)(1,832)

6,927

6,927

Share buybacks

(5)

(5)

Disposal of treasury stock
Net changes of items other thanshareholders’ equity
Total changes during period
Current year-end balance

1

1

5,095

(5)

5,092

7,961

12,81764,281(355)

84,706

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at the beginning ofcurrent period

Foreign currencytranslation adjustment

Remeasurementsof defined benefit
plans

Total accumulated
other comprehensive
income

(422)

11

(43)

367

Total net assets

79,570Changes during period
Issuance of new shares(Exercise of share acquisitionrights)3

Dividends from surplus(1,832)

Net income attributable toowners of the parent

6,927

Share buybacks(5)

Disposal of treasury stock
Net changes of items other thanshareholders’ equity

(484)

(175)

(48)

(708)

(708)

Total changes during period

(484)

(175)

(48)

(708)

4,384

Current year-end balance

(117)

(597)

(36)

(751)

83,954－18－

Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)(in million yen)
Shareholders' equity
Share capital
Balance at the beginning ofcurrent period

Capital surplus

Retained earnings

7,961

12,8173

364,281

Total shareholders'equityTreasury shares(355)

84,706

Changes during period
Issuance of new shares(Exercise of share acquisitionrights)6

Dividends from surplus
Net income attributable toowners of the parent(1,286)(1,286)(12,164)(12,164)

Share buybacks
Disposal of treasury stock

0

(2)

(2)

0

0

Net changes of items other thanshareholders’ equity
Total changes during period
Current year-end balance

3

3(13,450)(2)(13,447)

7,964

12,821

50,831(357)

71,259

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference
on available-forsale securities

Foreign currencytranslation adjustment

Remeasurementsof defined benefit
plans

Total accumulated
other comprehensive
income

(117)

(597)

(36)

(751)

Total net assets

83,954

Changes during period
Issuance of new shares(Exercise of share acquisitionrights)6

Dividends from surplus(1,286)

Net income attributable toowners of the parent(12,164)

Share buybacks(2)

Disposal of treasury stock0

Net changes of items other thanshareholders’ equity

173

42

61

277

277

Total changes during period

173

42

61

277

(13,169)

Current year-end balance

55

(555)

24

(474)

70,784－19－

(4) Consolidated Statement of Cash Flows(in million yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)

10,693
5,260
334
263
(256)
(202)
342
49
(508)
(17)
－

(14,870)
4,962
445
304
(1,389)
(182)
455
978
－
(931)
(937)

(1,224)

－

－
－
－
2,227
26

502
2,886
2,531
442
－

(1,787)

1,356

5,893

(6,059)3,338(5,457)

(377)
(397)
(120)
(862)
(397)
55
(483)
21,850132(348)
0(5,192)
17－－－－
16,460

240
(579)
1,516
7
608
(243)
(380)
(13,792)
103
(455)
0
(1,223)
931
937
(502)
(2,521)(1,312)(17,835)

(19)
1,359
(18,941)
750
(917)
(467)
(1,164)501(3,381)

(776)
1,243
(7,099)
12
(533)
(607)
(763)
912
(1,503)

177

116

Cash flows from operating activities
Net income (loss) before taxes
Depreciation and amortization
Amortization of long-term prepaid expenses
Amortization of guarantee deposits
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Commission expenses (non-operating)
Loss (gain) on sale of investment securities
Subsidy income
Compensation income
Loss (gain) on investments in investment
partnerships
Expenses for measures for COVID-19
Loss on temporary closing, etc.
Loss on store closings
Impairment loss
Loss on disaster
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Increase (decrease) in guarantee deposits received
Other
SubtotalInterest and dividends received
Interest expenses paid
Income taxes refund
Income taxes paid
Proceeds from subsidy income
Compensation income received
Expenses for measures for COVID-19 paid
Loss on temporary closing, etc.
Loss on store closings
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits－20－

(in million yen)Previous consolidated fiscal year
(From April 1, 2019
to March 31, 2020)

Current consolidated fiscal year
(From April 1, 2020
to March 31, 2021)(1,021)
160
57(22,904)(1,018)24(14)(10,006)700
18,000(2,870)－(5,732)－(5)(1,834)
(49)
8,208

950
34,900(4,101)
30,043(25,268)(922)(2)(1,285)(74)
34,239

(41)

22

1,722

6,419

16,07017,792－－

17,792

24,212

Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of convertible bonds
Commission for syndicated loans
Share buybacks
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the beginning ofcurrent period
Increase in cash and cash equivalents resulting frommergerBalance of cash and cash equivalents at the end ofcurrent period

－

21

－

(5) Notes on Consolidated Financial Statementi.
(Notes on the Going Concern Assumption)
Not applicableii.

(Segment Information etc.)[Segment Information]
1.
Summary of Reporting Segments
The Group's reporting segments are structural units of the Group for which separate financial information is available
and that are subject to periodic review by the Board of Directors to make decisions on allocation of management
resources and evaluate business performance.
The Group establishes business units for individual services (or subsidiaries for some services) within the Group.
Each business unit or subsidiary formulates strategies and engages in business activities for its services.
Accordingly, the Group consists of service-specific segments based on these business units and subsidiaries. The
Group’s five reporting segments are the Dormitory Business, the Hotel Business, the Comprehensive Building
Management Business, the Food Service Business, and the Development Business.
Each reporting segment is summarized below.
Dormitory Business: Operation and management of student dormitories, employee dormitories, Domeal, andsubcontracted dormitories
Hotel Business: The Dormy Inn (limited-service hotel) and resorts (resort hotel) businesses
Comprehensive Building Management Business: The office-building management and residential-building
management businesses
Food Service Business: The businesses of restaurants, contracted food service, and hotel restaurants and otherfacilities operated under contract
Development Business: The construction, planning, design, and brokerage businesses, the condominium business,the real-estate sale and leaseback business, and other development-related businesses
2.

Calculation Methods for Revenues, Profits or Losses, Assets, and Other Amounts for Each Reporting

Segment
The accounting method for the reported business segments is the same as that described in "Significant Matters thatForm the Basis for Preparing Consolidated Financial Statements.”
Profit of the reporting-segment is based on operating income.
Internal revenues and transfers between segments are based on prevailing market prices.

－

22

－

Information on net sales, income or loss, assets and other items by reporting segment

3.

Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)(in million yen)
Reporting segment

Dormitory

Hotel

Comprehensive
Building
Management

FoodService

Developm
ent

Other
Note 1

Total

Adjustment
amountNote 2

Amount on
consolidated financial
statements
Note 3Total

Net sales
Net sales toexternal customers

49,97678,831

7,721

1,316

19,119156,965

12,805

169,770－

169,770

Internal sales orinter-segment
transfers

327

145

8,940

6,041

(2,416)

13,037556

13,594(13,594)－

Total

50,30378,976

16,661

7,357

16,703

170,003

13,361

183,365(13,594)

169,770

Segment profit(loss)

8,021

4,853

611

110

1,376

14,97331

15,005(3,799)

11,205

Segment assets

53,607

105,729

11,541

1,660

22,879195,418

10,435

205,854

11,232217,086

Depreciation andamortization

1,265

3,809

63

23

44

5,205

105

5,311

(51)

5,260

Impairment loss

19

2,197

－

10

－

2,227

－

2,227

－

2,227

Increase inproperty, plant andequipment, andintangible fixed
assets

4,526

14,93674

16

7

19,561404

19,965

2,666

22,632Other items

Notes: 1. The Other Business segment consists of the following businesses not included in the other reporting segments: theSenior Life Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP)
Business (services provided under contract to local governments), support business for people who live alone, theinsurance agency business, comprehensive human-resource services, the financial business, the administrative
outsourcing business, and other additional businesses.
2. Details of adjustments are described below.
(in million yen)Segment profit
Elimination of inter-segment transactions(305)

Corporate expenses*(3,494)

Total(3,799)* Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative
departments of the head office.
(in million yen)Segment assets
Elimination of inter-segment transactions(10,296)

Corporate assets*

21,529

Total

11,232* Corporate assets refer to head-office cash and deposits, investment securities, assets related toadministrative sections, and deferred tax assets.
3. Segment profit or loss is adjusted against operating income on the consolidated financial statements.
－

23

－

Current consolidated fiscal year (from April 1, 2020 to March 31, 2021)(in million yen)
Reporting segment
Comprehensive
Building
Management

FoodService

Developm
ent

Other
Note 1

Total

Adjustment
amountNote 2

Amount on
consolidate
financialstatements
Note 3

Dormitory

Hotel

Total

46,19046,159

7,166

657

6,082

106,256

15,024

121,281－

121,281

298

86

8,846

4,634

6,527

20,393486

20,879(20,879)－

Total

46,48946,246

16,012

5,291

12,610126,650

15,510142,160(20,879)

121,281

Segment profit (loss)

4,903(13,130)

624

(10)

650

(6,961)606(6,355)(2,701)(9,057)

Segment assets

54,074

105,849

11,3491,893

28,530201,698

12,344

214,042

24,989239,032

1,355

3,353

78

58

42

4,888

131

5,020

(58)

4,962

41

364

－

37

－

442

－

442

－

442

1,967

10,43126

3

3

12,43275

12,507(66)

12,440Net sales
Net sales to externalcustomers
Internal sales or intersegment transfers

Other items
Depreciation andamortization
Impairment loss
Increase in property,
plant andequipment, andintangible fixed
assets

Notes: 1. The Other Business segment consists of the following businesses not included in the other reporting segments: theSenior Life Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP)
Business (services provided under contract to local governments), support business for people who live alone, theinsurance agency business, comprehensive human-resource services, the financial business, the administrative
outsourcing business, and other additional businesses.
2. Details of adjustments are described below.
(In million yen)Segment profit
Elimination of inter-segment transactions(213)

Corporate expenses*(2,488)

Total(2,701)* Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative
departments of the head office.
(In million yen)Segment assets
Elimination of inter-segment transactions(13,857)

Corporate assets*

38,846

Total

24,989* Corporate assets refer to head-office cash and deposits, investment securities, assets related toadministrative sections, and deferred tax assets.
3. Segment profit or loss is adjusted against operating income on the consolidated financial statements.

－

24

－

iii.

(Per-share information)
Previous consolidated fiscal year

Current consolidated fiscal year

(from April 1, 2019 to March 31, 2020)(from April 1, 2020 to March 31, 2021)

Net assets per share (Yen)2,153.24

1,815.45

Net income (loss) per share (in yen)

177.68(311.98)

Diluted net income per share (in yen)－－

Notes: 1. For the fiscal year ended March 31, 2020, diluted net income per share is not shown due to the absence of potential
shares with dilutive effects. For the fiscal year ended March 31, 2021, diluted net income per share is not shown due tothe recording of net loss per share and the absence of potential shares with dilutive effects.
2. The bases for calculation of net income per share and diluted net income per share are described below.
Previous consolidated
fiscal year
(from April 1, 2019 toMarch 31, 2020)

Current consolidated fiscal
year(from April 1, 2020 toMarch 31, 2021)

Net income (loss) per share
Net income (loss) attributable to owners of the(in million yen)

6,927

(12,164)

Amount not attributable to common stock(in million yen)－－

Net income (loss) attributable to parent
shareholders related to common stock(in million yen)

6,927

(12,164)

Average shares of common stock during theperiod(Shares)

38,990,276

38,990,301(in million yen)－－

(Shares)－－(Shares)－－parentDiluted net income per share
Adjustment of net income attributable toowners of the parent
Increase in the number of common shares(Convertible bonds with share acquisitionrights included in the above)

Issuance of euro yenFourth series of unsecured
denominated convertible
convertible bonds issuance bybonds with stock acquisition
resolution (of the Board ofrights due 2026 by resolution
Directors) on March 7, 2016(of the Board of Directors) on
resolution (number of theJanuary 13, 2021 (number ofshare acquisition rights:
the share acquisition rights:
19,992)3,000)

Overview of potential shares not included in the calculation ofdiluted net income per share because they lack dilutive effects

iv.

(Significant Subsequent Event)Not applicable

－

25

－

4.

Other
(Production, orders received, and sales)
Sales results for the current consolidated fiscal year are shown below by segment.
Segment

Amount (In million yen)

Dormitory

Year-over-year change (%)

46,489-7.6

Student dormitories

23,651-9.1

Employee dormitories

13,932-7.1

Domeal4,833

3.1

Subcontracted dormitories

4,072

-11.2

46,246-41.4

Dormy Inn Business

25,269-45.1

Resorts Business

20,977-36.3

16,012

-3.9

4,142

-15.4

11,8690.9

Food Service

5,291

-28.1

Development

12,610-24.5

126,650

-25.5

Other

15,51016.1

Adjustment amount(20,879)－

121,281

-28.6

Hotel

Comprehensive Building Management
Office Building Custodial Services
Business
Residential Building Custodial
Services BusinessTotal of reporting segments

Total

Note: The amounts shown above do not include consumption tax and other expenses.

－

26－