Kyoritsu Maintenance Co., Ltd.

(Securities Code: 9616)

Summary of Consolidated Financial Results for the
Fiscal Year Ended March 31, 2023
［JGAAP］
May 2023

1

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2023 [based on Japanese GAAP]May 15, 2023
Listed exchange: Tokyo

Name of listed company
Kyoritsu Maintenance Co., Ltd.
Code
9616
URL https://www.kyoritsugroup.co.jp/
Representative(Title)President(Name) Koji Nakamura
Contact(Title)Managing Director(Name) Manabu Takaku
Scheduled date for ordinary general meeting of shareholders:June 28, 2023
Scheduled filing date of Annual Securities Report:
June 28, 2023
Scheduled date of start of dividend payment:
June 29, 2023
Supplementary materials for the financial results: Yes
Investor conference for the financial results: Yes (For Institutional Investors)

Tel +81-3-5295-7778(Rounded down to the nearest million yen)

1.
Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(Percentage figures represent year-over-year difference)

Net sales

Income attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

175,630
173,701

1.1
43.2

7,326
1,431

411.8
–

7,115
1,814

292.2
–

4,241
539

686.8
–

Year ended March 31, 2023
Year ended March 31, 2022
Note: Comprehensive income:Operating income

Year ended March 31, 2023: 4,719 million yen (496.0%)
Year ended March 31, 2022: 791 million yen (–%)

Diluted net income
per share

Income per share

Return on equity

Ordinary income
to total assets

Operating income
to net sales

Yen

Yen

%

%

%

Year ended March 31, 2023

108.76

93.04

5.8

2.8

4.2

Year ended March 31, 2022

13.83

–

0.8

0.8

0.8

Year ended March 31, 2023: – million yen (–%)
Year ended March 31, 2022: – million yen (–%)
Note: Diluted net income per share for the previous fiscal year is not shown because there were no potential shares with dilution effects.
Reference: Gain/loss on equity-method investments(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Million yen%

Yen272,308
241,723

74,57970,58627.4
29.2

1,912.28
1,810.40

As of March 31, 2023
As of March 31, 2022
Reference: Shareholders' Equity:

Total net assets

Million yen

As of March 31, 2023: 74,579 million yen As of March 31, 2022: 70,586 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities
Year ended March 31, 2023
Year ended March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

7,753
25,721-6,651-16,731

16,9824,130

55,651
37,565

2. Dividend Payments
First(Record date)quarter

Dividend per share
SecondThird
Year-endquarterquarter

AnnualTotal dividend
amount(annual)Dividend
payout ratio(consolidated)

Dividend to net
assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–
–

10.00
10.00

–
–

10.00
12.00

20.00
22.00

779
858

144.6
20.2

1.1
1.2

–

16.00

–

16.00

32.00

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)

20.5

3. Forecasted Consolidated Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentage figures represent year-over-year difference)

Net sales
Full Year

Operating income

Net income attributableto owners of parent

Ordinary income

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

198,000

12.7

10,000

36.5

9,400

32.1

6,100

43.8

156.41

2

Notes(1) Changes in major subsidiaries during the period under review (changes in specific subsidiaries accompanied by changes in thescope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards, etc.:(ii) Changes in accounting policies other than those under (i) above:

Yes
None

(iii) Changes in accounting estimates:(iv) Retrospective restatements:

None
None

(3) Number of issued shares (common stock)(i) Number of issued shares at the end of
the period (including treasury shares)(ii) Number of treasury shares at the endof the period(iii) Average number of shares during theperiodYear ended
March 31, 2023

39,219,818
sharesYear ended
March 31, 2022

39,219,818
sharesYear ended
March 31, 2023

219,668
sharesYear ended
March 31, 2022

230,499
sharesYear ended
March 31, 2023

38,997,056
sharesYear ended
March 31, 2022

38,989,870
shares(Reference) Summary of Non-Consolidated Financial Results
Results of the Non-Consolidated Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Non-Consolidated Results of Operations(Figures in percentages denote the year-on-year difference.)
Net sales
Operating income
Ordinary income
IncomeYear ended March 31, 2023
Year ended March 31, 2022

Million yen%

Million yen%

Million yen%

Million yen%

160,469
140,947

13.9
37.2

5,773
-4,488––

8,011-3,836––

5,631-3,958––Net income per
share
Year ended March 31, 2023
Year ended March 31, 2022
Note:

Diluted net
income per share

Yen

Yen

144.40-101.53

123.68–

Diluted net income per share for the previous fiscal year is not shown because the Company recorded a net loss per share. There were no
potential shares with dilution effects.

(2) Non-Consolidated Financial Position
Total assets
As of March 31, 2023
As of March 31, 2022
Reference: Shareholders' equity:

Total net assets

Shareholders'equity ratio

Net assets per share

Million yen

Million yen%

Yen

255,059
224,161

67,546
62,14226.5
27.7

1,731.94
1,593.83

As of March 31, 2023: 67,546 million yen As of March 31, 2022: 62,142 million yen* Summaries of financial results are not subject to auditing by a certified public accountant or auditing firm.
* Explanation of the appropriate use of earnings forecasts and other special notes(Note concerning forward-looking statements)
The forward-looking statements, including earnings 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. As such, they do not constitute an assurance that the Company promises to achieve these projected results.
Actual business results may differ materially from the forecasts due to various factors.
Please see "(4) Future outlook" under "1. Overview of Operating Results, etc." on page "9" for the assumptions used for theforecast of financial results and notes concerning the use of the forecast of financial results.
(How to obtain supplementary materials of financial results)
Supplementary materials on financial results are released on TDnet and posted to the Company website.
In addition, a video of the financial results briefing will be posted to the Company website.

3

Table of contents for attached materials
1. Overview of Operating Results, etc. ...................................................................................................................................................... 5(1) Overview of operating results .......................................................................................................................................................... 5(2) Overview of financial position ......................................................................................................................................................... 7(3) Cash flow position ........................................................................................................................................................................... 7(4) Future outlook.................................................................................................................................................................................. 9(5) Basic policy on distribution of surplus and dividends for the current and next period .................................................................. 10
2. Basic Policy on Selection of Accounting Standards ............................................................................................................................ 10
3. Consolidated Financial Statements and Major Notes .......................................................................................................................... 11(1) Consolidated balance sheets .......................................................................................................................................................... 11(2) Consolidated income statement and consolidated statement of comprehensive income ................................................................ 13
Consolidated income statement ....................................................................................................................................................... 13
Consolidated statement of comprehensive income .......................................................................................................................... 15(3) Consolidated statement of changes in equity ................................................................................................................................. 16(4) Consolidated statement of cash flows ............................................................................................................................................ 18(5) Notes on consolidated financial statement ..................................................................................................................................... 20(Notes on the going concern assumption)........................................................................................................................................ 20(Change in accounting policies) ...................................................................................................................................................... 20(Additional information) ................................................................................................................................................................. 20(Segment Information etc.) .............................................................................................................................................................. 20(Per-share information) ................................................................................................................................................................... 25(Significant subsequent event)......................................................................................................................................................... 25
4. Other.................................................................................................................................................................................................... 26

4

1. Overview of Operating Results, etc.
(1) Overview of operating results1). Overview of general financial position(Consolidated Financial Results)(Unit: million yen)
Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,
2023

173,701(136,307)
1,431(-6,868)

175,630

Ordinary income

1,814

7,115

292.2

Net income attributable toowners of parent

539

4,241

686.8

Net sales
Operating income

7,326

Difference(%)
1.1(28.8)
411.8(Difference: +14,195)* Figures in parentheses represent comparisons after deducting amounts from the real-estate sale and leaseback conducted in theprevious year.
During the fiscal year under review, as the effects of COVID-19 began to fade, the Japanese economy experienced a gradual return
to normal economic activity. However, the future outlook remains uncertain due to soaring raw material and energy costs, among
other factors.
Under these circumstances the Group experienced a strong recovery in business performance, centered on the Hotel Business, inpart thanks to measures to stimulate tourism demand, including a national program to support the travel industry, as well as growing
demand for domestic travel, accommodations for international students, and inbound tourism (mainly from Hong Kong, South
Korea, and the US), as COVID-19 restrictions on immigration and other activities were lifted. In addition, numerous customers
made use of the Kyoritsu Maintenance Group membership program—Dormy KYORITSU HOTELS & DORMITORIES—a new
initiative launched in December of last year that offers special rewards for use as well as exclusive services for members.
As a result, the Company's consolidated operating results for the fiscal year under review were much stronger than anticipated, with
net sales of 175,630 million yen (up 1.1% YoY), operating income of 7,326 million yen (up 411.8% YoY), ordinary income of 7,115
million yen (up 292.2% YoY), and net income attributable to owners of the parent of 4,241 million yen (up 686.8% YoY). Actual
operating results, after deducting the amounts from the real-estate sale and leaseback conducted in the previous year (net sales of
37,394 million yen and operating income of 8,299 million yen) recovered, with increases of 39,323 million yen in net sales (up28.8% YoY) and 14,195 million yen in operating income (vs. an operating loss of 6,868 million yen in the previous year).
See "Notice Concerning Differences between Consolidated Earnings Forecasts for the Fiscal Year Ended March 31, 2023, andActual Figures," released, for a discussion of the differences between forecasts announced on November 9, 2022, and actual results
for the fiscal year ended March 31, 2023.
2) Overview of financial position by major business segment<Dormitory Business (student dormitories, employee dormitories, dormitory and contracted dormitories)
Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,2023(Unit: million yen)
Difference(%)

Net sales

47,24650,358

6.6

Operating income

4,554

4,558

0.1

In the Dormitory Business, we opened a total of 1,921 new rooms at 19 facilities in April. The initial occupancy rate was 93.5%,
reflecting an increase of 1.4 points YoY, as the number of Japanese student occupants rose significantly thanks in part to renewedmarketplace appreciation for the safety and security provided by our dormitories during the pandemic and to a focus on capturing
domestic demand. Demand from international students continued to grow and recovered steadily, thanks to factors such as theeasing of immigration restrictions, despite the effects of rising energy costs and other factors.
As a result, net sales of the Dormitory Business overall totaled 50,358 million yen (up 6.6% YoY). Net sales were 28,075 million
yen for student dormitories (up 10.9% YoY), 13,293 million yen for employee dormitories (up 1.4% YoY), 4,945 million yen for
Domeal (studio-type dormitories) dormitories (up 4.0% YoY), and 4,043 million yen for subcontracted dormitories (i.e., dormitories
owned by companies and schools managed and operated by the Company on consignment) (down 0.7% YoY). Operating income
stood at 4,558 million yen (up 0.1% YoY), reflecting rising energy costs, the cost of opening new facilities, and other factors.

5As of the end of March 2023, the number of facilities totaled 511 locations (down one facility YoY; not including subcontracted
dormitories), with capacity for 43,291 occupants (up by 740 YoY). The number of residents totaled 42,422 (up 2,932 YoY).
< Hotel Business (Dormy Inn, resorts) >(Unit: million yen)

Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,
2023

Difference(%)

Net sales

62,772

101,053

61.0

Operating income-9,451

5,513–

In the Hotel Business, the Dormy Inn Business opened seven new facilities during the fiscal year under review: Natural Hot Springs
Hana-Nami-No-Yu Onyado Nono Yodoyabashi; Natural Hotsprings Fuji-Zakura-No-Yu Dormy Inn Express Fujisan Gotemba;
Natural Hot Springs Morito-No-Yu Onyado Nono Sendai; Natural Hot Springs Adumi-No-Yu Onyado Nono Matsumoto; Natural
Hot Springs Dandan-No-Yu Onyado Nono Matsue; Natural Hot Springs Kibi-No-Yu Dormy Inn Okayama; and Natural Hot Springs
Shippou-No-Yu Dormy Inn Premium Ginza. The resort business opened five new facilities: Kyoto Umekoji Kadensho; La VistaTokyo Bay; Shio-No-Yu Onsen Rengetsu; Jozankei Yuraku Soan; and La Vista Hakodate Bay Annex.
The continuing recovery, spurred in part by measures to stimulate tourism demand, including a national program to support thetravel industry, in addition to lifting of COVID-19 restrictions on immigration and other activities, contributed to these results. The
market responded favorably to various aspects of the Company's hotels, which attracted numerous guests and contributed to
substantial improvements in occupancy rates and room rates, as well as considerable growth in both sales and income. These aspects
included large hot spring bath and authentic sauna facilities; carefully chosen menus with a focus on local dishes; and theirnighttime soba noodle vendors and other services.
As a result, the Hotel Business recovered to profitability, recording significant growth in net sales, to 101,053 million yen (up 61.0%
YoY), and in operating income, to 5,513 million yen (vs. an operating loss of 9,451 million yen in the previous fiscal year).
As of the end of March 2023, the Hotel Business as a whole operated 132 facilities (up 10 YoY) with 20,628 rooms (up 1,953 YoY).
<Comprehensive Building Management Business>(Unit: million yen)

Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,
2023

Difference(%)

Net sales

15,10818,593

23.1

Operating income

258

671

159.9

Due to factors such as higher sales of cleaning services and construction projects, the Building Management Business recorded net
sales of 18,593 million yen (up 23.1% YoY) and operating income of 671 million yen (up 159.9% YoY).
<Food Service Business (Restaurants/ Contracted Food Service/ Contracted Hotel Restaurants, etc.)>
Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,2023(Unit: million yen)
Difference(%)

Net sales

6,827

9,528

39.6

Operating income

-74

183

–

Due to factors including an increase in the number of hotel restaurant contracts, higher dining rates as hotel occupancy rates rose,and the lifting of restrictions on infection control, the Food Service Business recorded net sales of 9,528 million yen (up 39.6%
YoY) and operating income of 183 million yen (vs. an operating loss of 74 million yen in the previous fiscal year).

6

<Development Business>(Unit: million yen)
Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,
2023

40,661(3,267)
8,608
(308)

Net sales
Operating income

Difference
(%)

1,807

-95.6
(-44.7)-98.4(-56.7)133* Figures in parentheses represent comparisons after deducting amounts from the real-estate sale and leaseback conducted in theprevious year.
Due to factors including a negative rebound from the real-estate sale and leaseback conducted in the previous year and fewer
construction projects, the Development Business recorded net sales of 1,807 million yen (down 95.6% YoY) and operating incomeof 133 million yen (down 98.4% YoY).
<Other Businesses>(Unit: million yen)
Fiscal Year ended March 31,
2022

Fiscal Year ended March 31,
2023

Difference(%)

Net sales

15,195

15,684

3.2

Operating income

459

-55

–

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); the support business for people who live
alone; the insurance agency business; comprehensive human-resource services; the financial business; and the administrative
outsourcing business. Total net sales recorded by these businesses rose to 15,684 million yen (up 3.2% YoY), with an operating lossof 55 million yen (vs. an operating income of 459 million yen in the previous fiscal year) due mainly to costs associated with
opening new facilities in the Senior Life Business.

(2) Overview of financial position(Assets)
The total assets as of the end of current fiscal year under review were 272,308 million yen, an increase of 30,584 million yen
from the end of the previous fiscal year. This was mainly due to an increase in cash and deposits.
(Liabilities)
The liabilities as of the end of current fiscal year under review were 197,728 million yen, an increase of 26,591 million yen fromthe end of the previous fiscal year. This was mainly due to increases in short-term borrowings and long-term borrowings.
(Net Assets)
The net assets as of the end of current fiscal year under review were 74,579 million yen, an increase of 3,992 million yen from theend of the previous fiscal year. This was mainly due to an increase of retained earnings.
As a result, the equity ratio became 27.4%, a decrease of 1.8 points from the end of the previous fiscal year.

(3) Cash flow position
Cash and cash equivalent balance as of the end of current fiscal year under review were 55,651 million yen, an increase of
18,085 million yen from the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities was 7,753 million yen, decreased by 17,967 million yen compared to the previous fiscal
year due to the effect of increase/decrease in inventories.
(Cash Flows from Investment Activities)
Net cash used in investing activities was 6,651 million yen, down 10,080 million yen from the previous fiscal year due to theimpact of payments for acquisition of property, plant, and equipment.
(Cash Flows from Financing Activities)
Net cash provided by financing activities was 16,982 million yen, increased by 12,851 million yen compared to the previous
fiscal year due to the impact of proceeds from long-term borrowings.
7

(Reference) Trends in Cash Flow-related Indicators
Fiscal Year ended
March 31, 2019

Fiscal Year ended
March 31, 2020

Fiscal Year ended
March 31, 2021

Fiscal Year ended
March 31, 2022

Fiscal Year ended
March 31, 2023

Equity ratio (%)

39.3

38.7

29.6

29.2

27.4

Equity ratio on a market value basis
(%)

105.7

42.8

59.8

74.5

76.6

Cash flow to interest-bearing debt
ratio (annual):

4.6

5.7

-7.3

5.3

19.9

Interest coverage ratio (times):

45.3

47.2

-39.1

43.4

13.2

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
Notes:
1. Each indicator is calculated based on the consolidated financial figures.
2. Market capitalization is calculated based on the number of outstanding shares not including 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 that are
subject to interest payments.
5. Interest payments used to calculate this indicator are the interest expenses paid that are stated on the consolidated statementof cash flows.

8(4) Future outlook(Consolidated Financial Results)(Unit: million yen)
Results for the Fiscal Year
ended March 31, 2023

Outlook for the Fiscal Yearending March 31, 2024

Difference(%)

Net sales

175,630

198,000

12.7

Operating income

7,326

10,00036.5

Ordinary income

7,115

9,400

32.1

Net income attributable toowners of parent

4,241

6,100

43.8

A look at future prospects shows that while domestic and inbound travel demand appear likely to grow thanks to the designation of
COVID-19 as a Class 5 infectious disease and lifting of related restrictions, international instability continues to grow, one example
of which is the protracted Russia-Ukraine conflict.
Under such conditions, as part of strategies for achieving both swift recovery in business results and future growth, the Group plans
to proceed with active efforts to open new facilities and carry out large-scale remodeling, and to address sustainability, humanresource, and digital transformation (DX) strategies to establish solid business foundations capable of adapting to changing societal
conditions.
The Dormitory Business reported an initial occupancy rate of 98.2% in April 2023 (up 4.7 points YoY). In addition to publicizing
the Company's strengths of safety and security to large numbers of customers, demonstrated even during the COVID-19 pandemic,
this business will promote cost savings through DX activities including the Domico app to support dormitory living in response torising energy and other costs, as well as efforts to optimize selling prices.
The Hotel Business benefited from various positive trends, including the extension of a national program to support the travelindustry and other measures to boost tourism demand and recovery in numbers of travelers to Japan from overseas. Both the DormyInn Business and the Resorts Business began the year with revenue per available room (RevPAR) significantly above figures for theprevious year. The Dormy Inn Business plans to open four facilities in the fiscal year ending March 31, 2024: Dormy Inn Express
Toyohashi; Onyado Nono Asakusa Bettei; Dormy Inn Aomori; and Nono Beppu (tentative names). The Resorts Business plans toopen one new facility during the fiscal year: La Vista Kannonzaki Terrace (tentative name). In addition to such efforts to accelerate
development and achieve further growth, the Hotel Business will seek to attract the human resources required by the new HR andDX strategies. It will also proceed with active efforts to carry out large-scale remodeling to further improve customer satisfaction.
The Comprehensive Building Management Business will actively enhance its market competitiveness by improving its
technological capability and product values including the expertise for gaining further trust from customers as well as providing
quality building-related 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 andimprove its earning structure by implementing a strict control over costs.
The Development Business will support Kyoritsu Group with its development and expansion plan as well as thoroughly develop
new clients and strengthen its cost management system.
In its Other Businesses, the Company considers the Senior Life Business and the Public Kyoritsu Partnership (PKP) Business as
development businesses and will work to quickly implement their business models.
Based on the above, for the next fiscal year, the Group forecast net sales of 198,000 million yen (up 12.7% YoY), operating incomeof 10,000 million yen (up 36.5% YoY), ordinary income of 9,400 million yen (up 32.1% YoY), and income attributable to owners ofparent of 6,100 million yen (up 43.8% YOY).
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.
The Company has also formulated "KYORITSU Growth Vision/Rise Up Plan 2028”, a new medium-term management plan
covering the five-year period whose first year is the fiscal year ending March 31, 2024. See the news release "Kyoritsu Maintenance
Formulates New Medium-Term Management Plan," for an overview.

9(5) Basic policy on distribution of surplus and dividends for the current and next period
Based on the conviction that it is entrusted the capital it raises from markets by its shareholders, the Company sees returning
earnings to shareholders through performance-linked dividends that reflect earnings as a key instrument for distributing its surplus.
We will strive to increase the dividends payout ratio based on the basic stance of assuring steady and stable rewards to shareholders
over the long term, with a target payout ratio of 20 percent.
Among other factors, the lifting of COVID-19 restrictions on movement and measures to stimulate tourism demand, including anational program to support the travel industry, resulted in much faster recovery in the current period than expected. Income
significantly exceeded consolidated financial forecasts. Accordingly, we plan to pay year-end dividends of 12 yen/share, for total
annual dividends of 22 yen/share, up 2 yen (10%) from the previous fiscal year. We expect to increase full-year dividends by 10
yen/share in the next fiscal year, to 32 yen/share.
Pursuing even more dynamic policies on shareholder returns in the future, we will strive to achieve stable and continuous growth individends. We will retain internal reserves in the amounts needed to make effective capital investments, develop new businesses,
and implement other forward-looking management policies, while adapting to changing business conditions.

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.

103. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(Unit: million yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable - trade and contract assets
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
Other
Total deferred assets
Total assets

11

As of March 31, 2023

37,942
11,856
7,681
7,719
61
7,769
-76
72,95356,027
15,211
11,750
6,873
95
8,918
-74
98,80285,313-38,276
47,03739,35913,173
16,984-13,335
3,648
103,218
3,384

88,893-41,250
47,64339,862
14,811
19,486-14,849
4,637
106,954
4,154

3,151
1,709
18,826
19,033
6,928
12,133-122
61,660168,264

3,525
1,612
18,581
19,915
5,864
12,606-113
61,991
173,100502
2
505
241,723405–
405
272,308

(Unit: million yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
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
Deferred hedge gain
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

12

As of March 31, 2023

6,20214,820
5,080
1,035
979
76
5
21,23449,433

7,249
23,947
4,880
865
1,935
289
0
28,214
67,383

23,46030,112
61,961
2,992
7
1,013
254
610
1,291
121,703
171,137

18,58030,08275,743
3,066
23
1,029
255
492
1,072
130,345
197,728

7,964
12,821
50,383-361
70,807

7,964
12,862
53,845-349
74,322

82
225
-583
53
-221
70,586
241,723

160
648
-589
36
256
74,579272,308

(2) Consolidated income statement and consolidated statement of comprehensive income
Consolidated income statement(Unit: million yen)
Year Ended March 31, 2022
(April 1, 2021 - March 31,
2022)
Net sales
Cost of sales
Gross income
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 for allowance for doubtful accounts
Business consignment expenses
Rent expenses
Depreciation and amortization
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Subsidy income
Income from cancelled security deposits
Other
Total non-operating income
Non-operating expenses
Interest expenses
Expenses for measures for COVID-19
Other
Total non-operating expenses
Ordinary income

13Year Ended March 31, 2023
(April 1, 2022 - March 31,
2023)

173,701
151,659
22,042

175,630
142,871
32,758

5,309
991
293
77
136
1
1,916
6,839
32
1,813
751
413
2,035
20,610
1,431

5,434
1,147
606
289
131
1
2,280
10,254
–
2,085
1,361
459
1,378
25,431
7,326

108
86
600
105
807
1,708

109
129
208
111
256
815

603
195
526
1,326
1,814

575
100
350
1,026
7,115

(Unit: million yen)
Year Ended March 31, 2022
(April 1, 2021 - March 31,
2022)
Extraordinary income
Gain on sale of shares of subsidiaries and associates
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on disaster
Loss on store closings
Demolition and removal expenses
Other
Total extraordinary losses
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to owners of parent

14

Year Ended March 31, 2023
(April 1, 2022 - March 31,
2023)

196
–
196

–
18
18

51
65
453
–
40
611
1,399
1,233
-372
860
539
539

345
119
111
119
21
716
6,417
1,309
866
2,175
4,241
4,241

Consolidated statement of comprehensive income(Unit: million yen)
Year Ended March 31, 2022
(April 1, 2021 - March 31,
2022)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred hedge gain
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

15

Year Ended March 31, 2023
(April 1, 2022 - March 31,
2023)

539

4,241

26
225
-28
29
252
791

77
423
-5
-17
477
4,719

791

4,719

(3) Consolidated statement of changes in equity
Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Unit: million yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,964

Retained earnings

12,821

Total shareholders'equityTreasury shares

50,831-357

71,259Changes during period
Dividends from surplus

-779

-779

Net income attributable toowners of parent

539

539

Change in scope of
consolidation

-206

-206

Share buybacks

-4

-4

-447

-4

-451

50,383-361

70,807

Disposal of treasury stock
Net changes of items otherthan shareholders' equity
Total changes during period
Balance at end of period

7,964

12,821

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred hedge
gain (loss)

55–

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
-555

24

Total
accumulated
othercomprehensive
income-474

Total net assets

70,784

Changes during period
Dividends from surplus-779

Net income attributable toowners of parent

539

Change in scope of
consolidation-206

Share buybacks-4

Disposal of treasury stock
Net changes of items otherthan shareholders' equity

26

225

-28

29

252

252

Total changes during period

26

225

-28

29

252

-198

Balance at end of period

82

225

-583

53

-221

70,58616

Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Unit: million yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

7,964

Retained earnings

12,821

Total shareholders'equityTreasury shares

50,383-361

70,807

Changes during period
Dividends from surplus

-779

-779

Net income attributable toowners of parent

4,241

4,241

Change in scope of
consolidation
Share buybacks-6-6

Disposal of treasury stock

0

0

0

Restricted stock units

41

18

60

Net changes of items otherthan shareholders' equity
Total changes during period
Balance at end of period

7,964

41

3,461

12

3,515

12,862

53,845-349

74,322

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred hedge
gain (loss)

82

225

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
-583

53

Total
accumulated
othercomprehensive
income-221

Total net assets

70,586

Changes during period
Dividends from surplus-779

Net income attributable toowners of parent

4,241

Change in scope of
consolidation
Share buybacks-6

Disposal of treasury stock0

Restricted stock units60

Net changes of items otherthan shareholders' equity

77

423

-5

-17

477

477

Total changes during period

77

423

-5

-17

477

3,992

Balance at end of period

160

648

-589

36

256

74,57917

(4) Consolidated statement of cash flows(Unit: million yen)
Year Ended March 31, 2022
(April 1, 2021 - March 31, 2022)

Year Ended March 31, 2023
(April 1, 2022 - March 31, 2023)

1,399
6,070
470
322
264
-195
603
-600
-105
195
51
65
453
–
-2,1402,048
17,100
1,526
-191
-69
-2,273
4,633
-629
-299
-603
28,09790-592
2-1,956
600
-195
-325
25,721

6,417
6,117
484
393
956
-238
575
-208
-111
100
345
119
111
119
-3,354-2,170-3,619
1,047
837
1,486
1,106
-1,707
-171
269
2,087
10,992163-586
0-2,759
208
-100
-162
7,753

Cash flows from operating activities
Net income 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
Subsidy income
Proceeds from cancelled security deposits
Expenses for measures for COVID-19
Impairment loss
Loss on disaster
Loss on store closings
Demolition and removal expenses
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in accounts receivable - other
Decrease (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
Expenses for measures for COVID-19
Loss on store closings
Net cash provided by (used in) operating activities

18

(Unit: million yen)
Year Ended March 31, 2022 (April Year Ended March 31, 2023 (April
1, 2021 - March 31, 2022)
1, 2022 - March 31, 2023)
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 loan receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
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
Redemption of convertible bonds
Share buybacks
Cash dividend 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 beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change of consolidation
Balance of cash and cash equivalents at end of period

19

–
1,056
-10,594
6
-352
-133
-530
167
-5,869
480
-991
30
0
-16,731-286
20-4,644
2
-381
-267
-102
183
-1,713
415
-677
960
-158
-6,651

2,400
12,480-4,643-5,280
-4
-781
-40
4,130
-1
13,11824,212300
26,130-3,520-5,112-6-778-29
16,9820
18,08537,565234–

37,56555,651

(5) Notes on consolidated financial statement(Notes on the going concern assumption)
Not applicable(Change in accounting policies)
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance
No. 31, June 17, 2021; "Fair Value Measurement Guidance" hereinafter) since the start of the first quarter of the current consolidated
fiscal year. The new accounting policies stipulated in the Fair Value Measurement Guidance are applied to future accounts inaccordance with the transitional treatment provided for in Paragraph 27-2 of the Fair Value Measurement Guidance. This has had no
impact on the quarterly consolidated financial statements.
(Additional information)
Application of accounting and disclosure via group tax-sharing system
Since the start of the first quarter of the current consolidated fiscal year, the Company and certain domestic consolidated subsidiaries
have shifted from the consolidated taxation system to a group tax-sharing system. Accounting and disclosure of national and local
corporate income tax and tax-effect accounting are handled in accordance with the Practical Solution on the Accounting andDisclosure Under the Group Tax Sharing System (PITF No. 42, August 12, 2021). In addition, pursuant to Paragraph 32(1) of PITF
No. 42, the change in accounting policies associated with application of PITF No. 42 is deemed to have had no effect on the
consolidated financial statements.
(Segment Information etc.)[Segment Information]
1. Summary of Reportable Segments
The Group's reportable segments are structural units of the Group, for which disaggregated financial information is available, thatare subject to periodic review by the Board of Directors to make decisions on allocation of management resources and evaluatebusiness performance.
The Group establishes business units for individual services (or subsidiaries for some services) within the Group. Each business unit
or subsidiary formulates strategies for its services and engages in business activities.
Accordingly, the Group consists of service-specific segments based on these business units and subsidiaries. The Group's fivereportable 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,

Hotel Business:

Domeal, and subcontracted dormitories
The Dormy Inn (limited-service hotel) and resorts (resort hotel)

Comprehensive Building Management Business:businesses
The office-building management and residential-building management

Food Service Business:businesses
The businesses dealing with restaurants, contracted food service, andDevelopment Business:

hotel restaurants and other facilities operated under contract
The construction, planning, design, and brokerage businesses, thecondominium business, the real-estate sale and leaseback business andother development-related businesses.

2. Calculation methods for net sales, income 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 that Form the Basisfor Preparing Consolidated Financial Statements."
Income of the reportable segments is based on operating income.
Intersegment sales and transfers are based on market prices.

20

3. Information on net sales, income or losses, assets and other items by reporting segment
Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Unit: million yen)Amountrecorded on
consolidated
Adjustment
consolidated
Note 2
financialstatements

Segment Information

Dormitory

Comprehensive
Building
Management

Hotel

Other
Food
Service

Development

Total

Total

Note 1

Note 3

Net sales
Net sales to externalcustomers
Intersegmental sales
or transfers

46,92462,6607,487

789

41,126

158,988

14,713

173,701–

173,701

322

111

7,621

6,038

-464

13,628481

14,109-14,109–

Total

47,246

62,772

15,108

6,827

40,661

172,616

15,195

187,811-14,109173,701

Segment income or
loss

4,554

-9,451

258

-74

8,608

3,894

459

4,354

-2,922

1,431

Segment assets

55,778100,361

18,811

2,283

22,024

199,260

15,991

215,251

26,471

241,723

Depreciation andamortization

1,410

4,387

70

71

42

5,981

130

6,112

-41

6,070

Impairment loss

49

–

–

2

–

51

–

51

–

51

Increase in tangible
fixed assets andintangible fixed
assets

2,373

6,985

39

130

–

9,528

55

9,584

-64

9,519

Other items

Notes: 1. The Other Business segment consists of the following businesses which are not included in the other reportablesegments: 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,
the insurance agency business, comprehensive human-resource services, the financial business, the administrative
outsourcing business, and other related businesses.
2. Details of adjustments are described below.
(Unit: million yen)Segment income
Elimination of intersegment transactions

18

Corporate expenses (Note)-2,941

Total-2,922

Note: Corporate expenses mainly consist of expenses related to the Accounting Department and otheradministrative departments of the head office.
(Unit: million yen)Segment assets
Elimination of intersegment transactions-18,535

Corporate assets (Note)

45,006

Total

26,471

Note: Corporate assets refer to cash and deposits, investment securities, assets related to administrative sections,and deferred tax assets retained by the head office.
3. Segment income or loss is adjusted against operating income on the consolidated financial statements.

21

Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Unit: million yen)Segment Information

Dormitory

Hotel

Comprehensive
Building
Management

Food
Service

Other
Development

Total

Total

Note 1

Amountrecorded on
Adjustment consolidated
Note 2
financialstatements
Note 3

Net sales
Net sales to externalcustomers
Intersegmental sales
or transfers

50,030100,902

7,791

1,262

571

160,558

15,071

175,630–

175,630327

151

10,802

8,265

1,235

20,781

613

21,394-21,394–

Total

50,358101,053

18,593

9,528

1,807

181,340

15,684

197,025-21,394

175,630

Segment income or
loss

4,558

5,513

671

183

133

11,059-55

11,004-3,677

7,326

Segment assets

56,022

108,896

15,7382,549

24,243

207,450

16,489223,940

48,367272,308

Depreciation andamortization

1,522

4,385

45

32

42

6,028

135

6,163

-46

6,117

Impairment loss

50

232

–

61

–

345

–

345

–

345

Increase in tangible
fixed assets andintangible fixed
assets

1,878

11,74544132

813,809152

13,961-623

13,338Other items

Notes: 1. The Other Business segment consists of the following businesses which are not included in the other reportablesegments: 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,
the insurance agency business, comprehensive human-resource services, the financial business, the administrative
outsourcing business, and other related businesses.
2. Details of adjustments are described below.
(Unit: million yen)Segment income
Elimination of intersegment transactions-11

Corporate expenses (Note)-3,666

Total-3,677

Note: Corporate expenses mainly consist of expenses related to the Accounting Department and otheradministrative departments of the head office.
(Unit: million yen)Segment assets
Elimination of intersegment transactions-15,781

Corporate assets (Note)

64,149Total

48,367

Note: Corporate assets refer to cash and deposits, investment securities, assets related to administrative sections,and deferred tax assets retained by the head office.
3. Segment income or loss is adjusted against operating income on the consolidated financial statements.

22[Relevant Information]
Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Information by product and service(Unit: million yen)

Net sales toexternalcustomers

Student
Employeedormitories dormitories

DomealSubcontracted
dormitories

Dormy Inn

Resorts

Officebuilding
custodial
services

25,193

4,732

4,059

35,24927,411

4,017

12,938Residentialbuilding
custodial
services

Food
Service

Development

Other

Total

3,469

789

41,126

14,713

173,701

2. Information by region(1) Net sales
This item is omitted because the net sales to external customers in Japan account for more than 90% of the net sales
on the consolidated income statement.
(2) Tangible fixed assets
This item is omitted because the amount of the tangible fixed assets located in Japan accounts for more than 90% of
the amount of the tangible fixed assets on the consolidated balance sheet.
3. Information by major customer
This item is omitted because no single customer accounts for 10% or more of the net sales on the consolidated income
statement.
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
1. Information by product and service(Unit: million yen)Student

Employee

Subcontracted
Domealdormitories dormitories

Net sales toexternalcustomers

27,98313,091

Dormy Inn

Resortsdormitories

4,914

4,041

57,603 43,298

Officebuilding
custodial
services

Residentialbuilding
custodial
services

4,371

3,419

Food
Development

Other

Total

15,071

175,630

Service

1,262

571

2. Information by region(1) Net sales
This item is omitted because the net sales to external customers in Japan account for more than 90% of the net sales
on the consolidated income statement.
(2) Tangible fixed assets
This item is omitted because the amount of the tangible fixed assets located in Japan accounts for more than 90% of
the amount of the tangible fixed assets on the consolidated balance sheet.
3. Information by major customer
This item is omitted because no single customer accounts for 10% or more of the net sales on the consolidated income
statement.

23

[Information on impairment loss on non-current assets by reporting segment]
Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
This item is omitted because the same information is disclosed in the Segment Information.
Year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
This item is omitted because the same information is disclosed in the Segment Information.
[Information on the amortization of goodwill and the unamortized balance by reporting segment]
Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicableYear ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable[Information on gain from negative goodwill by reporting segment]
Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicableYear ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
Not applicable24(Per-share information)
Year ended March 31, 2022
(From April 1, 2021 to March 31, 2022)

Year ended March 31, 2023
(From April 1, 2022 to March 31, 2023)

Net assets per share (yen)1,810.40

1,912.28

Net income per share (yen)13.83

108.76–

93.04

Diluted net income per share (yen)Notes: 1. Diluted net income per share for the previous fiscal year is not shown because there were no potential shares withdilution effects.
2. The bases for calculation of net income per share are described below.
Year ended March 31, 2022
(April 1, 2021 - March 31,
2022)

Year ended March 31, 2023
(April 1, 2022 - March 31,
2023)

539

4,241

–

–

Net income attributable to owners of parent related tocommon shares (Unit: million yen)

539

4,241

Average number of common shares during the period(thousand shares)

38,98938,997

Adjustment of net income attributable to owners of theparent (Unit: million yen)(Interest income [after tax] included above) (Unit:million yen)

–

-20

–

-20

Increase in shares of common stock (thousand shares)

–

6,365

(1) Net income per share
Net income attributable to owners of parent(Unit: million yen)Amount not attributable to common shareholders(Unit: million yen)

(2) Diluted net income per share

Summary of potential shares not included in the calculation ofdiluted net income per share due to the absence of dilutive effects(Significant subsequent event)Not applicable25

Euro-yen denominatedconvertible bonds that will
mature in 2026 based on a
resolution (of the Board of
Directors) dated January 13,2021 (3,000 units of shareoption)–4. Other(Status of production, order and sale)
Segment sales performances for current fiscal year are shown below:
Segment

Amount (Unit: million yen)

Year-on-year comparison (%)

50,358

6.6

Student dormitories

28,075

10.9

Employee dormitories

13,293

1.4

Domeal4,945

4.0

Subcontracted dormitories

4,043

-0.7

101,053

61.0

Dormy Inn Business

57,665

63.4

Resorts Business

43,38757.9

18,593

23.1

4,734

12.3

13,85927.2

Food Service

9,528

39.6

Development

1,807

-95.6

181,340

5.1

Other

15,684

3.2

Adjustment-21,39451.6

175,630

1.1

Dormitory

Hotel

Comprehensive Building Management
Office Building Custodial Services
Business
Residential Building Custodial Services
Business

Total of Reportable Segments

Total
Note: Amount does not include consumption taxes.

26