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

1st Quarter of Fiscal Year March 2013
Consolidated Earnings Results Update
August 2012

Kyoritsu Maintenance Consolidated Financial Data at a Glance
120,000

Consolidated Sales and YY Change

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 3/13E

Consolidated Operating Income and YY Change
7,000

50%

6,000

40%
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 3/13E

Consolidated Net Income and YY Change
140%

3,000

120%
2,500

100%
80%

2,000

60%
40%

1,500

20%
1,000

0%
-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 3/13E(Units:Million Yen)

160,000
140,000
120,000
100,000
80,00060,00040,00020,0000
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

total assets

net assets (shareholders' equity)

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
ROE

3/05

3/06

3/07

3/08

3/09

3/10

3/11

3/12

ROA

(Units:Million Yen)

(Units:

Million Yen)

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

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

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

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

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

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

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

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

1Q3/12 1Q3/13
20,843
22,957
3,940
4,560
1,073
1,304
705
966
336
416

34,421
21,937103,01497,082
137,531 119,111
49,306
34,84357,99952,503
107,306
87,34330,22531,764

3/12
3/13E *
91,170 100,000 *
17,863na *
6,017
6,130 *
4,602
4,850 *
2,376
2,390 **

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

23,350 24,901 19,967
74,681 85,562 95,728
98,047 110,507 115,738
44,039 37,342 44,119
28,316 46,068 44,079
72,355 83,411 88,199
25,512 27,096 27,538

0.6%
10.4%
14.3%
9.8%
-16.1%

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

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

23,25462,336
85,62031,58533,07764,663
20,7882.7%-10.0%-24.6%-33.2%-41.2%

3/08
75,60614,183
4,492
4,167
2,740

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

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

8.9%
9.3%
19.1%
8.2%
-22.2%

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

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

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

14.1%
15.9%
19.9%
10.0%
13.6%

19.6%
6.6%
5.0%
2.6%

*
*
*
*
*
*
*
*
*

18,10047,76865,86727,031
23,76150,792
15,0735.1%
3.9%-18.8%-21.5%
20.0%

18.1%
5.4%
3.9%
1.2%

na
na
na
na
na
na
na

23,79340,47864,32728,51322,06450,577
13,747

8.7%
8.2%
4.6%
9.4%
-14.2%

16.5%
4.8%
3.6%
1.5%

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

19,90029,86749,88019,731
16,97736,707
13,169

7.3%
3.3%
10.1%
8.6%
9.6%

18.8%
6.5%
5.5%
2.6%

7.7%
1.9%
25.1%

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

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

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

18.8%
5.9%
5.5%
3.6%

3.5%
0.7%
21.3%

10.1%
15.7%
21.5%
37.0%
23.7%

0.1%
5.5%
6.1%
8.5%
11.9%

18.5%
5.6%
5.7%
3.6%

4.2%
0.9%
21.4%

-1.8%
6.4%
7.6%
3.4%
na

32.2%
30.5%
38.2%
35.4%
58.8%

18.7%
7.3%
7.6%
3.2%

7.4%
1.7%
23.0%

*
*
*
*
*
*
*
3.0%
9.2%
19.4%
15.9%
26.5%

18.8%
7.6%
7.6%
4.0%

9.9%
2.4%
23.8%

9.7%
na
1.9%
5.4%
0.6%

13.3%
9.0%
-3.9%
3.5%
6.7%

19.5%
7.4%
7.5%
4.0%

8.9%
2.2%
24.5%

7.3%
15.9%
30.5%
39.1%
125.7%

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

21.5%
8.3%
7.8%
4.1%

7.9%
2.1%
26.0%

19.9%
5.7%
4.2%
1.8%

20.4%
7.8%
7.2%
3.6%

11.3%
2.7%
24.3%

18.9%
5.1%
3.4%
1.6%

20.7%
7.5%
7.0%
3.0%

11.3%
2.7%
24.3%

*
*
*
*
*
*
19.5%
6.4%
6.2%
2.5%

12.1%
2.8%
23.5%

na
6.1%
4.9%
2.4%

margins
gross margins
operating margins
ordinary margins
net margins

12.1%
2.8%
22.9%

na
na
26.7%

8.3%
1.8%
21.4%

na
na
22.0%

6.9%
1.8%
26.4%

*
na *
na *
na *
*

other benchmarks
ROE
ROA
equity ratio
Units: million yen

1st Quarter of Fiscal Year March 2013 Consolidated Earnings Announcement
August 9, 2012
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
Telephone: +81-3-5295-7778
Quarterly Earnings Announcement Report Filing Date:
August 14, 2012
Dividend Payment Date (Anticipated):―
Quarterly Earnings Presentation Document:
Not available
Quarterly Earnings Presentation Meeting:
Not available(All figures of less than one million yen are rounded down to the nearest digit)

1. First Quarter of Fiscal Year March 2013 Consolidated Earnings (From April 1, 2012 to June 30, 2012)(1) Consolidated Earnings (Aggregated)
Net Sales

Operating Income

Million yen

Million yen％

Ordinary Income％

Million yen

1Q FY3/13
22,957
10.1
1,304
21.5
966
1Q FY3/12-1.8
20,843
1,073
7.6
705
(Note) Comprehensive income: ¥480 million (44.8%) in 1Q FY3/13, ¥332 million (-%) in 1Q FY3/12

EPS

Net Income％

Million yen

％

37.0
3.4

416
336

23.7
-

Fully Diluted EPS

1Q FY3/13
1Q FY3/12

Yen

Yen

29.48
23.41

19.56

(2) Consolidated Financial Position
Total Assets

Net Assets

Million yen

Net Asset Ratio

Book Value per Share

Million yen％

Yen

119,11131,764
1Q FY3/13
125,649
31,551
FY3/12(reference) Capital: ¥31,764 million in 1Q FY3/13, ¥31,551 million in FY3/12.

26.7
25.1

2,250.91
2,235.83

2. Dividend Conditions
Interim Dividend
End 2QEnd 3QEnd 1Q
Yen

FY3/12
FY3/13
FY3/13 (Projected)(Note) Recent revisions to dividend projections: None

End Year

Full Year

Yen

Yen

Yen

Yen

19.00

-

19.00

38.00

19.00

-

19.00

38.00

3. Fiscal Year March 2013 Consolidated Earnings Estimates (April 1, 2012 to March 31, 2013)
Net Sales

Operating Income

Ordinary Income

Million yen％

Million yen％

Million yen％

Yen

48,0009.5
3,380
100,000
9.7
6,130(Note) Recent revisions to earnings estimates: None

0.6
1.9

2,590
4,850

1.0
5.4

1,260
2,390

9.8
0.6

89.29
169.36

Million yen

First Half
Full Year％Net Income

EPS

Notes:(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(2) Application of special accounting methods in the preparation of quarterly financial statements: Applicable(Note) For details please refer to page 3 “2. Summary Information (Notes), (2) Implementation of Special Accounting
Methods in the Creation of Quarterly Consolidated Financial Statements”(3) Changes in the accounting policies, procedures, and changes or revisions in the display of accounting estimates:① Changes accompanying revisions in accounting policies: Applicable② Other changes: None
③ Changes in accounting estimates: Applicable④ Redisplay of revisions: None
(Note) The changes to our amortization and depreciation methods fall under the consideration of “difficult to categorize
revised accounting estimates for revisions in accounting methods.” For details please refer to page 3 “2. Summary
Information (Notes), (3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates”(4) Shares issued (Common shares)① Shares issued as of term end (including treasury shares):② Treasury stock as of term end:
③ Average during the term:

1Q FY3/13
1Q FY3/13
1Q FY3/13

15,125,582 FY3/12
1,013,904 FY3/12
14,111,689 1Q FY3/12

15,125,582
1,013,844
14,364,767

z Information Regarding Quarterly Review Practices:
The practices for review of quarterly consolidated earnings statements pursuant to the “Financial Instruments andExchange Act” of Japan have not been conducted for the disclosure of this document.
z 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 differ from our projections due to various unforeseen reasons. For details of
our earnings forecasts, please refer to the section of this document page 3 entitled “1. Qualitative Information about
Quarterly Earnings, (3) Qualitative Information about Consolidated Earnings Estimates.”

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13

Index
1. Qualitative Information about Quarterly Earnings

2(1) Qualitative Information about Consolidated Business Performance2(2) Qualitative Information about Consolidated Financial Position

3(3) Qualitative Information about Consolidated Earnings Estimates3

2. Summary Information (Notes)(1) Changes in Important Consolidated Subsidiaries during the term under review

3(2) Implementation of Special Accounting Methods in the Creation of Quarterly Consolidated Financial Statements 3(3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates3

3. Quarterly Consolidated Financial Statements

4(1) Quarterly Consolidated Balance Sheets

4(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement

6

Quarterly Consolidated Income Statement
Consolidated Aggregated First Quarter

6

Quarterly Consolidated Comprehensive Income Statements
Consolidated Aggregated First Quarter7(3) Notes Regarding Going Concern Assumptions

8(4) Notes Regarding Significant Changes in Shareholders’ Equity

8(5) Segment Information

8-1-

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13

1. Qualitative Information about Quarterly Earnings(1) Qualitative Information about Consolidated Business Performance
During the first quarter of the fiscal year March 2013, the Japanese economy underwent a gradual recovery on the back ofdemand created by the disaster relief efforts. However uncertainties including concerns over electric power supplies, thepersistent strength of the yen, and the European sovereign debt crisis continued to cloud the economic horizon.
Against this backdrop, our main dormitory business got off to a good start with favorable occupancy rates of 96.5% (A
1.2% point increase from the previous first quarter) during the first quarter. The same favorable conditions were also
apparent in our hotel business, including both the Dormy Inn (Business hotels) and resort hotel businesses, with occupancy
rates exceeding the first quarter of the previous fiscal year.
Consequently, sales, and operating, ordinary, and net incomes rose by 10.1%, 21.5%, 37.0%, and 23.7% year-over-yearto ¥22.957, ¥1.304, ¥0.966, and ¥0.416 billion respectively.
Our earnings results by business segment are as follows
Dormitory BusinessOur dormitory business started out with a favorable occupancy rate of 96.5%, which exceeded the previous year’s levels
by 1.2% points. However an increase in the number of dormitory residents who took up residency early in March led toa decline in contract fees received and other sales compared with the previous year. Consequently the number ofdormitory residents as of the end of June rose by 857 from the same period in the previous year to 30,062. At the sametime sales and operating income fell by 2.2% and 11.1% year-over-year to ¥10.406 and ¥1.637 billion respectively.
Hotel Business
During the first quarter in the Dormy Inn business, three new facilities including the “Dormy Inn PREMIUM Shibuya
Jingumae,” “Natural Hot Spring Kishu no Yu Dormy Inn PREMIUM Wakayama,” and “Natural Hot Spring Kirisakura no
Yu Dormy Inn Kagoshima” were opened. Furthermore, the occupancy rates overall are trended favorably and exceeded
those of the same quarter in the previous term. In addition, Kyoritsu was able to acquire first place ranking in thebusiness hotel category of the JCSI (Japan Customer Satisfaction Index), a reflection of the favorable reception of themarket.
In our resort hotel business, a new facility called the “Morden no Yu La Vista Appi Kogen” was opened and occupancy
rates at existing facilities recovered by a large margin when compared with the earthquake disaster induced weakness ofthe previous year. Occupancy rates also exceeded the levels recorded two years previous as well. Consequently salesrose by 22.8% year-over-year to ¥8.640 billion, and profitability improved by a large margin on the back of strong demandin the peak resort season allowing operating income to improve by ¥544 million to a positive ¥251 million from the loss
seen in the previous first quarter.
Contracted Services BusinessIn our contracted services business, we saw an increase in sales on the back of higher orders in our construction related
services. However large contract cancelations arose and difficult operating conditions in general continued in ourbuilding rental services. Consequently operating income deteriorated to a loss of ¥13 million yen in the current firstquarter from an income of ¥3 million in the previous first quarter despite a 6.6% year-over-year increase in sales to ¥3.089
billion.
Food Service Business
The operating environment for our food service business remained difficult due to stagnant consumption trends. As aresult, operating loss trended sideways at ¥36 million despite a rise in sales of 18.3% from the first quarter of the previous
year to ¥1.159 billion.
Construction BusinessIn our construction business, the seasonal trend for a greater amount of development projects occurring during the second-2-

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13

half of the fiscal year led to a decline in completion and delivery of construction projects during the first quarter.
Consequently sales and operating income fell by 52.1% and 36.7% year-over-year to ¥570 and ¥14 million respectively.
Other Business
Our other business is comprised of the wellness life business (Management of senior citizen housing), the PKP business(Consigned services business provided to regional government bodies), single life support business and insurance agency
business, comprehensive human resource service business, and financing services and administrative outsourcing services.
Sales of this business rose by 40.6% year-over-year to ¥1.298 billion, and the operating loss contracted by ¥5 million
year-over-year to ¥47 million.

(2) Qualitative Information about Consolidated Financial Position
At the end of the first quarter, total assets declined by ¥6.538 billion from the end of the previous fiscal year to ¥119.111
billion. The main reason for this decline was a fall in cash and deposits.
Liabilities at the end of the first quarter also fell by ¥6.750 billion compared with the end of the previous fiscal year to¥87.347 billion. Declines in prepayments and long term debt are responsible for this fall.
Net assets grew by ¥212 million from the end of the previous fiscal year to ¥31.764 billion at the end of the first quarter.
This growth is attributed primarily to an increase in retained earnings.
Consequently net asset ratio rose by 1.6% points from the end of the previous fiscal year to 26.7%.
(3) Qualitative Information about Consolidated Earnings Estimates
With regards to our consolidated earnings estimates, we have made no changes to our first half or full year earnings
estimates announced at the time of our fiscal year March 2012 earnings results on May 15, 2012.
2. Summary Information (Notes)(1) Changes in Important Consolidated Subsidiaries during the Quarter
None(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 fornet income before taxes during the first quarter, and this rate has been applied in the calculation of tax expense, by which
multiplying net income before taxes.
(3) Revisions in Accounting Methods, Revisions and Redisplay of Accounting Estimates(The revisions in our accounting methods relating to revisions and categorization of our accounting estimates that are
difficult to determine)
In accordance with the revisions to the corporate tax system, we have implemented revisions in our depreciation methods
during the first quarter relating to the acquisition of tangible fixed assets by us and our domestic consolidated subsidiaries
after April 1, 2012 based upon these revisions in the corporate tax system.
As a result, operating, ordinary, and pretax incomes effectively rose by ¥4 million when compared with the traditional
methods employed until the first quarter.

-3-

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Units:FY3/12
March 31, 2012

Million Yen)

1Q FY3/13
June 30, 2012

AssetsCurrent assets
Cash and deposits
Notes, accounts receivable
Real estate for sale
Uncompleted construction payment
OthersDoubtful account reserves
Total current assets
Fixed assets
Tangible fixed assets
Buildings, structures (net)Land
Others (net)Total tangible fixed assets
Intangible fixed assets
Investments, other assets
Investment securities
Security deposits
Deposits
OthersDoubtful account reserves
Total investments, other assets
Total fixed assets
Deferred assets
Total assets-4-

17,342
3,790
1,746
87
5,314
-46
28,234

11,251
3,668
1,978
39
5,043
-43
21,93730,42323,852
9,378
63,654
3,663

30,091
24,046
9,139
63,278
3,647

5,687
9,602
8,484
6,421
-193
30,001

5,645
9,736
8,579
6,384
-189
30,156

97,31997,082

95
125,649

91
119,111

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13(Units:FY3/12
March 31, 2012

Million Yen)

1Q FY3/13
June 30, 2012

Liabilities
Current liabilities
Notes, accounts payable
Short term debt
Bond, portion redeemable within 1 year
Unpaid corporate taxes
Prepayments
Bonus reserves
Director bonus reserves
Completed construction guarantee reserves
OthersTotal current liabilities
Fixed liabilities
Bonds
Long term debt
Retirement benefit reserves
Director retirement benefit reserves
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Other marketable security valuation difference
Accumulated other comprehensive income, aggregatedTotal net assets
Total liabilities, net assets

-5-

3,402
15,5961,520
1,600
10,738
840
179
10
5,072
38,961

2,598
16,101
1,520
469
8,767
231
47
10
5,097
34,8438,225
40,100
1,183
306
5,319

7,775
38,195
1,218
307
5,008

55,13552,50394,09787,347

5,136
5,943
23,042-1,80932,312

5,136
5,943
23,189-1,80932,460

-761
-761

-696
-696

31,551

31,764

125,649

119,111

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13(2) Quarterly Consolidated Income Statement and Comprehensive Income Statement
Quarterly Consolidated Income Statement
Consolidated Aggregated First Quarter(Units: Million Yen)
1Q FY3/13(From April 1, 2012
To June 30, 2012)

1Q FY3/12(From April 1, 2011
To June 30, 2011)
Net sales
CGS
Gross income
SG&A
Operating income
Non-operating income
Interest income
Dividend income
Deposit redemption income
OthersTotal non-operating income
Non-operating expense
Interest payment
OthersTotal non-operating expense

20,843
16,903
3,940
2,867
1,073

22,957
18,396
4,560
3,256
1,304

28
17
15
36
98

25
16
9
27
78

368
98
466

323
93
416

Ordinary income
Extraordinary income
Fixed asset liquidation
Total extraordinary income
Extraordinary loss
Losses arising from disasters
Investment securities valuation loss
Total extraordinary loss

705

966

124
124

－
－

56
3
59

－
139
139

Net income before taxes

770

826

Taxes
Net income before adjustment for minority interests in income

433
336

410
416

0

－

336

416

Minority interests in income
Net income-6-Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13

Quarterly Consolidated Comprehensive Income Statements
Consolidated Aggregated First Quarter(Units: Million Yen)
1Q FY3/12(From April 1, 2011
To June 30, 2011)
Net income before adjustment for interests in income

1Q FY3/13(From April 1, 2012
To June 30, 2012)
336

416

Other marketable securities valuation difference-464

Total other comprehensive income-464

Quarterly comprehensive income

332

480

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

332

480

0

－

Other comprehensive income-7-

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13(3)Notes Regarding Going Concern Assumptions
Not applicable(4)Notes Regarding Significant Changes in Shareholders’ Equity
Not applicable(5) Segment Information(Segment Information)
ⅠConsolidated Data for First Quarter of Fiscal Year March 2012 (From April 1, 2011 to June 30, 2011)
1.

Information regarding Our Various Business Segments(Units: Million Yen)
Reported Segments
Contracted
Food
Construction
Services Services

Others(Note) 1

Total

Values Usedin
Adjustments Consolidated(Note) 2
Financial
Statements(Note) 3

Dormitories

HotelsExternal sales

10,609

7,012

1,785

331

274

20,014829

20,843－

20,843

Internal sales

30

21

1,111

648

917

2,729

94

2,823

-2,823－

Total

10,640

7,034

2,896

979

1,192

22,743923

23,667-2,823

20,843

1,842

-292

2

-35

22

1,538

-53

1,485

-412

1,073

Total

Sales

Operatingincome(Note) 1. “Others” is not considered as a reported segment and is comprised of the wellness life business (Management of seniorcitizen housing), the PKP business (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 service business, and financing services and administrative outsourcing services and other related services.
2. Adjustment for segment profit, loss of ¥412 million includes ¥0 million for inter-segment transaction eliminations, and¥412 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 segments
Not applicable-8-

Kyoritsu Maintenance Co., Ltd. (9616) 1Q FY3/13

ⅡConsolidated Data for First Quarter of Fiscal Year March 2013 (From April 1, 2012 to June 30, 2012)
1.

Information regarding Our Various Business Segments(Units: Million Yen)
Reported Segments
Food
Construction
Service

Others(Note) 1

Total

Values Usedin
Adjustments Consolidated(Note) 2
Financial
Statements(Note) 3

Dormitories

HotelsContracted
Services

External sales

10,375

8,618

1,883

386

499

21,764

1,193

22,957－

22,957

Internal sales

31

22

1,205

772

71

2,102

104

2,207

-2,207－

Total

10,406

8,640

3,089

1,159

570

23,866

1,298

25,164-2,207

22,957

1,637

251

-13

-36

14

1,852

-47

1,804

-500

1,304

Total

Sales

Operatingincome(Note) 1. “Others” is not considered as a reported business segment and is comprised of the wellness life business (Management ofsenior citizen housing), the PKP business (Consigned services business, which regional government bodies consign to us
and the services are provided to residents by us), single life support business and insurance agency business, comprehensive
human resource service business, and financing services, administrative outsourcing services and other related services.
2. Adjustment for segment profit, loss of ¥500 million includes ¥8 million for inter-segment transaction eliminations, and¥492 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 segments
Not applicable-9-