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

First Half of Fiscal Year March 2014
Consolidated Earnings Results Update

November 2013

Kyoritsu Maintenance Consolidated Financial Data at a Glance
Consolidated Sales and YY Change
120,000

35%

30%

100,000

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

20,0005%

0

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

m

Consolidated Operating Income and YY Change
8,000

50%

7,000

40%

6,000

30%

5,000

20%

4,000

10%

3,000

0%

2,000

-10%

1,000

-20%

0

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

m

Consolidated Net Income and YY Change
4,000

140%
120%

3,500

100%
3,000
80%
2,500

60%

2,000

40%
20%

1,500

0%
1,000

-20%
500

-40%

0

-60%
3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14E

m(Units: Million Yen)

160,000
140,000

120,000
100,000
80,00060,00040,00020,000
0
3/00

3/01

3/02

3/03

3/04

3/05

3/06

total assets

3/07

3/08

3/09

3/10

3/11

3/12

3/13

net assets (shareholders' equity)(Units: Million Yen)

14.0%
12.0%
10.0%
8.0%
6.0%
4.0%

2.0%
0.0%
3/00

3/01

3/02

3/03

3/04

3/05
ROE

3/06

3/07

3/08
ROA

3/09

3/10

3/11

3/12

3/13

(Units: Million Yen)other benchmarks
ROE
ROA
net asset ratio
Units: million yen

margins
gross margins
operating margins
ordinary margins
net margins

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

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

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

12.1%
2.8%
23.5%

21.5%
8.3%
7.8%
4.1%

0.1%
5.5%
6.1%
8.5%
11.9%

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

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

11.3%
2.7%
24.3%

19.5%
7.4%
7.5%
4.0%

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

22,122
55,71577,86529,37429,43358,806
18,935

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

11.3%
2.7%
24.3%

18.8%
7.6%
7.6%
4.0%

7.3%
3.3%
10.1%
8.6%
9.6%

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

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

7.9%
2.1%
26.0%

18.7%
7.3%
7.6%
3.2%

8.7%
8.2%
4.6%
9.4%
-14.2%

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

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

8.9%
2.2%
24.5%

18.5%
5.6%
5.7%
3.6%

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

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

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

9.9%
2.4%
23.8%

18.8%
5.9%
5.5%
3.6%

14.1%
15.9%
19.9%
10.0%
13.6%

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

7.4%
1.7%
23.0%

18.8%
6.5%
5.5%
2.6%

8.9%
9.3%
19.1%
8.2%
-22.2%

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

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

4.2%
0.9%
21.4%

16.5%
4.8%
3.6%
1.5%

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

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

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

3.5%
0.7%
21.3%

18.1%
5.4%
3.9%
1.2%

0.6%
10.4%
14.3%
9.8%
-16.1%

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

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

7.7%
1.9%
25.1%

19.6%
6.6%
5.0%
2.6%

7.3%
15.9%
30.5%
39.1%
125.7%

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

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

9.7%
2.6%
28.4%

20.0%
6.6%
5.6%
3.2%

9.1%
11.5%
8.4%
21.7%
34.9%

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

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

3/14E
*
106,200 *21,350 *7,400 *
6,600 *
3,600 *
*
*
na *
na *
na *
na *
na *
na *
na *
*
*
6.8% *
7.2% *
13.5% *
17.9% *
12.3% ***
20.1% *
7.0% *
6.2% *
3.4% *
*
*
na *
na *
na *
*

21.3%
7.7%
6.4%
3.4%

8.0%
10.3%
8.8%
18.5%
41.1%

22,75896,531
119,377
36,03650,40186,43832,939

na
na
28.1%

21.2%
8.0%
7.3%
4.2%

9.1%
8.4%
13.0%
23.7%
35.3%

25,052
92,349117,468
38,46745,93584,40233,065

1H FY3/13 1H FY3/14
47,33351,624
10,103
10,955
3,653
4,127
3,039
3,758
1,619
2,190

na
na
27.6%

First Half of Fiscal Year March 2014 Consolidated Earnings Announcement
November 8, 2013

Company Name: Kyoritsu Maintenance Co., Ltd.

Tokyo Stock Exchange

Stock Code: 9616, URL: http://www.kyoritsugroup.co.jp/
Director: Mitsutaka Sato, President
Contact: Takumi Ueda, Vice President, Tel: +81-3-5295-7778
Quarterly Earnings Announcement Report Filing Date (Anticipated): November 14, 2013
Dividend Payment Date (Anticipated): December 5, 2013
Quarterly Earnings Presentation Document (Anticipated): Available
Quarterly Earnings Presentation Meeting (Anticipated): Available (For institutional investors)(All figures of less than one million yen are rounded down to the nearest digit)

1. First Half of Fiscal Year March 2014 Consolidated Earnings (April 1, 2013 to September 30, 2013)(1) Consolidated Earnings (Aggregated)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen％
Million yen％
Million yen％
Million yen
1H FY3/14
51,624
9.1
4,127
13.0
3,758
23.7
2,190
1H FY3/13
47,333
8.0
3,653
8.8
3,039
18.5
1,619
(Note) Comprehensive income: ¥2,279 million (37.6% yy) in 1H FY3/14, ¥1,656 million (49.8% yy) in 1H FY3/13

EPS

Fully Diluted EPSYen

1H FY3/14
1H FY3/13

％
35.3
41.1

Yen

―
―

164.08114.75(2) Consolidated Financial Position
Total Assets

Net Assets

Million yen

1H FY3/14
FY3/13(Note) Capital:

Net Asset Ratio

Book Value Per Share

％
28.1
28.4

Million yen

117,468
33,065
122,259
34,782¥33,065 million in 1H FY3/14, ¥34,782 million in FY3/13

Yen

2,536.11
2,465.00

2. Dividend Conditions
Dividends per Share
1Q End2Q EndYen
FY3/13
FY3/14

3Q End――4Q End

Yen

Yen
19.00
21.00

FY3/14 Projected(Note) Recent changes in dividend projections: None

Total

―

Yen
24.00

Yen
43.00

―

22.00

43.00

Net Income

EPS

3. Fiscal Year March 2014 Consolidated Earnings Estimates (April 1, 2013 to March 31, 2014)
Net Sales％
106,200
6.8(Note) Recent changes in earnings estimates:
Million yen

Full Year

Operating Income
Million yen

7,400
Applicable％
13.5

Ordinary Income
Million yen

6,600

％
17.9

Million yen

3,600

％
12.3

Yen
276.11

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

Shares issued as of term end (including treasury stock):
Treasury stock as of term end:
Average during the term:

1H FY3/14
1H FY3/14
1H FY3/14

15,125,582 FY3/13
2,087,536 FY3/13
13,348,931 1H FY3/13

15,125,582
1,014,894
14,111,629* Information Regarding Quarterly Review Practices:
The practices for review of quarterly consolidated earnings statements pursuant to the “Financial Instruments and Exchange
Act” of Japan have not been conducted for the disclosure of this document.
* Notes and explanations regarding the appropriate uses of our earnings projections:
All projections provided within this document are based on the most accurate information available at the time of thiswriting. However our actual results may diverge largely from our projections due to various unforeseen reasons.
With regards to qualitative information regarding our quarterly earnings, please refer to the segment of this document “1. Qualitative
Information about Quarterly Earnings, (3) Explanation of Our Earnings Estimates and Future Forecasts”.
We provide this information in our quarterly earnings results explanation materials available on our website.

Index1. Qualitative Information about Quarterly Earnings

2(1) Explanation of Business Performance2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Earnings Estimates and Future Forecasts

3

2. Summary Information (Notes)

4(1) Changes in Important Consolidated Subsidiaries during the Quarter

4(2) Implementation of Special Accounting Methods in the Creation of Quarterly Consolidated Financial Statements

4(3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates4

3. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement

7

Quarterly Consolidated Income Statement
Consolidated First Half

7

Quarterly Consolidated Comprehensive Income Statements
Consolidated First Half

8(3) Quarterly Consolidated Cash Flow Statements

9(4) Quarterly Consolidated Financial Statement Notes

11

Notes Regarding Going Concern Assumptions

11

Notes Regarding Significant Changes in Shareholders’ Equity

11

Segment Information

11

-1-

1. Qualitative Information about Quarterly Earnings(1) Explanation of Business Performance

During the first half of the current fiscal year, signs of a recovery in the Japanese economy began to appear on the back of theeasy monetary policies and other stimulatory measures that contributed to a weakening of the yen and increases in shareprices. However, uncertainties including fears of slowing of global economies remained on the horizon.
Against this backdrop, the dormitory business saw a good start to the year with occupancy rates rising above the previous
year’s levels by 0.5% to at 97.0%. Furthermore, the hotel business also saw favorable trends in both its Dormy Inn(business hotels) and resort hotel businesses with occupancy rates trending above the previous year’s levels.
Subsequent to these developments, sales rose by 9.1% year-over-year to ¥51,624 million. And while initial estimatescalled for declines in profits, operating, ordinary and net incomes rose by large margins of 13.0%, 23.7%, and 35.3%
year-over-year to ¥4,127, ¥3,758 and ¥2,190 million respectively to new record highs. Furthermore, the hotel businesstrended favorably and exceeded initial estimates by a large margin, allowing Kyoritsu Maintenance to revise its full year
earnings estimates upwards.
We provide details of our earnings by business segment as follows.
Dormitory BusinessOur dormitory business saw high occupancy rates, which rose above the previous year’s levels by 0.5% points to 97.0% at
the start of the term and the number of contracted dormitory residents grew by 1,003 to 30,484 as of the end of September.
However, an increase in the number of new residents moving into dormitories early in March contributed to a decline incontract fees received. Consequently sales growth was restrained to 2.4% year-over-year to ¥20,477 million and operating
income declined by 8.3% year-over-year to ¥2,564 million due to anticipatory expenses arising from the start of new
businesses, higher utility fees, and promotion of planned renovations with a view to our long-term vision. However, thislevel of profits remained in line with our estimates.
Hotel Business
During the first half of the current fiscal year, the new facility “Natural Hot Spring Chagetsu no Yu Dormy Inn EXPRESS
Kakegawa” was opened in the Dormy Inn business. Furthermore, occupancy rates trended favorably and exceeded theprevious year’s levels on the back of increased recognition of facilities newly opened in the previous term. In the resort
hotel business, “Inishie no Yado Ikyu” was newly opened during the first half. Furthermore, overall occupancy rates
improved not only during the summer vacation season but throughout the entire first half due to detailed marketing efforts
at various facilities. Therefore, sales and operating income rose by large margins of 11.7% and 30.5% year-over-year to¥22,069 and ¥2,694 million respectively.
Contracted Services BusinessIn the contracted services business, declines in rental income due to the sale of properties in the previous term anddecreases in orders of the construction division were recorded. Consequently, sales declined by 9.5% year-over-year to¥5,623 million, and operating loss improved by ¥40 million in the same period in the previous term to a loss of ¥20 million.
Food Services Business
Severe operating conditions remained in place in the food services business, but signs of a gradual recovery have begun toappear due to the improvement in consumer spending. Because Gyoda City has filed to dispute the court’s ruling on alitigation case with Kyoritsu Maintenance over its hot spring bathing facilities in September, we expect to book theoperating expenses of this facility as non-operating expenses from September onwards. Despite these conditions, sales
grew by 5.5% year-over-year to ¥2,566 million and operating loss decreased by ¥14 million from the same period in theprevious term to ¥51 million.
Construction BusinessIn the construction business, an increase in comprehensive type orders contributed to an increase in sales. However,construction and other expenses trended at high levels during the term under review. As a result, sales rose by 135.5%
year-over-year to ¥2,464 million, and an operating income of ¥25 million was recorded (Compared with an operating lossof ¥9 million in the same term of the previous fiscal year).

-2-

Other Business
Our other business segment is comprised of the Wellness Life business (Management of senior citizen housing), the Public
Kyoritsu Partnership business (PKP: Consigned services business, which regional government bodies consign to us and theservices are provided to residents by us), single life support business and insurance agency business, comprehensive humanresource services business, and financing and administrative outsourcing services. Sales of this business rose by 35.1%
year-over-year to ¥3,478 million, while the operating loss improved by ¥42 million from the previous term to ¥110 million.
(2) Explanation of Financial Position
Assets, Liabilities, Net Assets Conditions(Assets)
Total consolidated assets declined by ¥4,791 million from the end of the previous fiscal year to ¥117,468 million at the endof the current first half. One of the main factors behind this decline was a contraction in cash and equivalents.
(Liabilities)

Over the same period, total liabilities also fell by ¥3,074 to ¥84,402 million due primarily to declines in prepayments
received.
(Net Assets)

Net assets declined by ¥1,716 million from the end of the previous fiscal year to ¥33,065 million at the end of the current
first half due primarily to the acquisition of treasury stocks. Consequently, net asset ratio declined by 0.3% points fromthe end of the previous fiscal year to 28.1% at the end of the current first quarter.
Cash Flow Conditions
At the end of the first half of the current fiscal year, cash and equivalents declined by ¥4,378 million from the end of theprevious fiscal year to ¥12,286 million.
(Operating Cash Flow)
The net outflow from operating activities declined by ¥1,511 million from the same period in the previous term to ¥1,208
million due in part to declines in accounts receivables and payables.
(Investing Cash Flow)
The net outflow from investing activities increased by ¥1,928 million from the same period in the previous year to ¥2,913
million on the back of acquisition of tangible fixed assets and sale of marketable securities.
(Financing Cash Flow)
The net outflow from financing activities declined by ¥2,163 million from the same period in the previous term to ¥367
million in the current first half due to acquisition of treasury stock and assumption of long term debt.
(3) Explanation of Consolidated Earnings Estimates and Future Forecasts
With regards to our consolidated earnings estimates for the fiscal year March 2014, Kyoritsu Maintenance expects themuch stronger than expected trends in its hotel business (Dormy Inn, resort hotels) to remain in place throughout theremainder of the fiscal year. Consequently, we expect our earnings to exceed initial estimates despite costs arising from
implementation of refurbishment of hotel facilities with a view to our future growth and have therefore decided to revise
our full year earnings estimates upwards. While the hotel business is expected to see higher than expected sales, the PKP
business is expected to fall shy of estimates. Therefore we have decided to maintain our outstanding sales estimates.
Our actual results may differ from our projections due to various unforeseen reasons.

-3-2. Summary Information (Notes)(1) Changes in Important Consolidated Subsidiaries during the Quarter
Not applicable(2) Implementation of Special Accounting Methods in the Creation of Quarterly Consolidated Financial Statements(Calculation of tax expense)
With regards to taxes, a rational estimate of the effective tax rate has been used to calculate the tax effect accounting for net
income before taxes during the second quarter, and this rate has been applied to net income before taxes. However, in theevent that the actual tax rate used in the calculation of our tax expense lacks justification, the legally determined effective
tax rate method will be used.
(3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates
Not applicable-4-3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Units: Million Yen)
FY3/13(March 31, 2013)

1H FY3/14(September 30, 2013)

AssetsCurrent Assets
Cash and equivalents
Notes, accounts receivable

17,622
6,480

13,244
4,633

Real estate for sale
Uncompleted real estate for sale

302
914

126
1,494

Uncompleted construction payment
Others

14
5,551

96
5,486

Doubtful account reserves

-32

-29

30,852

25,052

Buildings, structures
Land

29,27624,42630,911
24,656

Others

4,629

3,235

Total tangible fixed assets

Total current assets
Fixed assets
Tangible fixed assets

58,33258,803

Intangible fixed assets

1,950

1,914

Investments, other assets
Investment securities

5,818

5,578

Security deposits
Deposits

10,745
9,063

11,016
9,253

OthersDoubtful account reserves

5,632
-207

5,989
-205

Total investments, other assets

31,052

31,631

91,33592,34971

66

122,259

117,468

Total fixed assets
Deferred assets
Total assets-5-

(Units:
FY3/13(March 31, 2013)

Million Yen)

1H FY3/14(September 30, 2013)

Liabilities
Current liabilities
Notes, accounts payable

4,174

2,913

Short term debt
Bond, portion redeemable within 1 year

14,074
1,150

20,194
1,150

Unpaid taxes
Prepayments received

1,528
10,880

1,513
7,616

Bonus reservcs
Director bonus reserves

1,029
232

714
126

Completed construction guarantee reserves
Others

11
5,811

11
4,225

Total current liabilities

38,892

38,467

7,450

6,875

34,976
1,201

33,091
1,242

309
―

310
6

Others

4,647

4,409

Total fixed liabilities

48,58445,93587,476

84,402

CapitalCapital reserve

5,136
5,943

5,136
5,943

Retained earnings
Treasury stock

25,675-1,811

27,527-5,469Total shareholders’ equity

34,94333,137

-198
37

-143
72

Fixed liabilities
Bonds
Long term debt
Retirement benefit reserve
Director retirement benefit reserve
Point reserve

Total liabilities
Net assets
Shareholders’ equity

Other comprehensive income, aggregated
Other marketable security valuation gain
Foreign exchange adjustment accountTotal comprehensive income, aggregatedTotal net assets
Total liabilities and net assets

-6-

-160

-71

34,78233,065

122,259

117,468(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement
Quarterly Consolidated Income Statement
Consolidated First Half
(Units: Million Yen)
1H FY3/14(April 1, 2013 to
September 30, 2013)

1H FY3/13(April 1, 2012 to
September 30, 2012)
Sales

47,33351,624

Cost of sales

37,23040,669Gross income

10,103

10,955

Sales, general and administrative expense

6,450

6,828

Operating income

3,653

4,127

Non-operating income
Interest income

4250

Dividend income
Marketable securities sale

18
63

23
69

Foreign exchange translation gains
Others

0
59

116
65

Total non-operating income

184

325

642
155

542
151

Non-operating expense
Interest payment
OthersTotal non-operating expense

798

694

3,039

3,758

Fixed asset liquidation
Others

236
12

―
―

Total extraordinary income

249―

Ordinary income
Extraordinary income

Extraordinary loss
Impairment loss

87

―

198
―

―
13

Others11―

Total extraordinary loss

297

13

Net income before taxes

2,991

3,744

Taxes
Net income before adjustment for minority interests
in income

1,372

1,554

1,619

2,190

Net income

1,619

2,190

Marketable security valuation loss
Dismantlement expense-7-

Quarterly Consolidated Comprehensive Income Statements
Consolidated First Half
(Units: Million Yen)
1H FY3/14(April 1, 2013 to
September 30, 2013)

1H FY3/13(April 1, 2012 to
September 30, 2012)
Net income before adjustment for minority interests in income

1,619

2,190

Other comprehensive income
Other marketable securities valuation gains

37

54

Foreign exchange adjustment account―34

Total other comprehensive income

37

89

Quarterly comprehensive income

1,656

2,279

(Details)
Quarterly comprehensive income of parent company shareholders
Quarterly comprehensive income of minority shareholdings

1,656

2,279

―

―

-8-

(3) Quarterly Consolidated Cash Flow Statements(Units: Million Yen)
1H FY3/14(April 1, 2013 to
September 30, 2013)

1H FY3/13(April 1, 2012 to
September 30, 2012)
Cash flow from operating activities
Net income before taxes
Depreciation, amortization

2,991
1,462

3,744
1,375

Amortization of long term prepayments
Amortization of security deposits

83
100

70
105

Change in bonus reserves
Interest, dividends received

-217
-61

-314
-74

Interest paid
Fixed asset disposal income

642
-232

542
3

Change in account receivables
Change in outstanding income

-188
488

1,847
563

Change in inventories
Change in payables

-938
-915

-469
-1,641

Change in unpaid expenses
Change in prepayments received

84-3,158-308-3,264

Change in unpaid consumption tax
Change in deposits

48
-700

-397
-787

Change in security deposits
Change in advanced revenues

-362
-71

-88
-71

Others370

78

Subtotal

-575

913

Interest, dividends received

40

19Interest payment
Corporate, other tax refunds

-643
3

-549
0

Corporate, other tax payment-1,544-1,591

Cash flow from operating activities-2,719-1,208Acquisition of marketable securities
Sale of marketable securities

-10
266

―
390

Acquisition of tangible fixed assets
Sale of tangible fixed assets-1,432
1,219-2,2150Acquisition of intangible fixed assets
Loans extended

-60
-132

-33
-220

Loans extended recovered
Deposits, security deposits payments

150
-909

145
-589

Return of deposits, security deposits
Insurance reserve fund establishment

71
-291

43
-416

Redemption of insurance policy
Others

161
-16

38
-57

Cash flow from investing activities-984-2,913

Cash flow from investing activities-9-(Units: Million Yen)
1H FY3/14(April 1, 2013 to
September 30, 2013)

1H FY3/13(April 1, 2012 to
September 30, 2012)
Cash flow from financing activities
Change in short term debt

3,140

4,600

Assumption of new long term debt
Repayment of long term debt―
-4,6003,600-3,964

Redemption of bonds issued
Treasury stock acquisition

-760
0

-575
-3,658Dividend payment
Others

-266
-43

-336
-33

Cash flow from financing activities-2,530-367

Cash and equivalent translation gains
Net change in cash and equivalents
Cash and equivalents at term start―

110-6,235-4,37816,384

16,665

Cash and equivalents at term end

10,14912,286-10-

(4) Quarterly Consolidated Financial Statement Notes
Notes Regarding Going Concern Assumptions
Not applicable(Notes Regarding Significant changes in Shareholders’ Equity)
Kyoritsu Maintenance acquired treasury stock in line with resolution to acquire treasury stock passed during the board of directors’
meeting held on May 20, 2013. The acquisition of treasury stock and odd lot shares contributed to a ¥3,657 million increase intreasury shares during the second quarter to a total of ¥5,469 million.

(Segment Information)
Segment Information
Consolidated Data for First Half of Fiscal Year March 2013 (From April 1, 2012 to September 30, 2012)
1. Information pertaining to segment sales, operating income and losses(Units: Million Yen)
Reported Segments
Others(Note) 1

Total

44,9542,379

47,333－47,333

243

4,480

194

4,674

-4,674

－

2,433

1,046

49,4342,574

52,008-4,67447,333

-66

-8

4,726

-153

4,573

-919

3,653

Dormitories

HotelsContracted
Services

Food
Services

External sales

19,93019,709

3,760

751

802

Internal sales
and transfers

58

42

2,452

1,682

Total

19,98919,752

6,213

Operating income

2,797

2,065

-61

Construction Sub Total

Adjustments Consolidated(Note) 2(Note) 3

Sales(Note) 1. Others is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business, which regional government bodies consign to us and theservices are provided to residents by us), single life support services, insurance agency business, comprehensive humanresources, financing services and advertising agency services.
2. Adjustment for segment profit, loss of ¥919 million includes ¥15 million for inter-segment transaction eliminations, and¥904 million in companywide expenses which cannot be allocated to specific reported segments.

Companywide

expenses are primarily those expenses arising from the finance and accounting, and management divisions.
3. Segment profits, losses are derived by adjusting the operating income used in the quarterly consolidated income
statement.

2. Impairment accounting losses and goodwill amortization by reported segments
Within the food segment, investments made in restaurants that are deemed to be difficult to recover will be reduced to the asset
book value deemed to be recoverable for these restaurants, and the amount of devaluation will be booked as an impairment loss
at the extraordinary level. Furthermore, the amount of impairment loss booked during the first half of the term was ¥87
million.

-11-

Consolidated Data for First Half of Fiscal Year March 2014 (From April 1, 2013 to September 30, 2013)
1. Information pertaining to segment sales, operating income and losses(Units: Million Yen)
Reported Segments
Others(Note) 1

Total

48,3343,290

51,624－

51,624

808

4,867

188

5,055

-5,055

－

2,566

2,464

53,202

3,478

56,680-5,05551,624

-51

25

5,212

-110

5,101

-974

4,127

Dormitories

HotelsContracted
Services

Food
Services

External sales

20,40322,027

3,465

782

1,655

Internal sales
and transfers

74

42

2,158

1,784

Total

20,47722,0695,623

Operating income

2,564

2,694

-20

Construction Sub Total

Adjustments Consolidated(Note) 2(Note) 3

Sales(Notes)1. Other is not considered as a reported business segment and is comprised of the wellness life (management of seniorcitizen housing), PKP business (Consigned services business, which regional government bodies consign to us and theservices are provided to residents by us), single life support services, insurance agency business, comprehensive humanresources, financing services and other related services
2. Adjustment for segment profit, loss of ¥974 million includes ¥2 million for inter-segment transaction eliminations, and¥976 million in companywide expenses which cannot be allocated to specific reported segments.

Companywide

expenses are primarily those expenses arising from the finance and accounting, and management divisions.
3. Segment profits, losses are derived by adjusting the operating income used in the quarterly consolidated income
statements.

2. Impairment accounting losses and goodwill amortization by reported segmentsNone-12-