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

1st Quarter of Fiscal Year March 2010
Consolidated Earnings Results Update
August 2009

Kyoritsu Maintenance Consolidated Financial Data at a Glance
Consolidated Sales and YY Change
100,000

35%

90,00030%
80,00025%

70,00060,00020%

50,00015%

40,00030,00010%

20,0005%
10,0000
mn yen0%
3/99 3/00 3/01

3/02

3/03

3/04

3/05

3/06 3/07 3/08 3/09 3/10e

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%
3/99

mn yen

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09 3/10e

Consolidated Net Income and YY Change
3,000

70%
60%

2,500

50%
40%

2,000

30%
1,500

20%
10%

1,000

0%
-10%

500

-20%
-30%

0
mn yen

3/99

3/00

3/01

3/02

3/03

3/04

3/05

3/06

3/07

3/08

3/09 3/10e2140,000
120,000
100,000
80,00060,00040,00020,000
0
3/98

3/99

3/00

3/01

3/02

total assets

3/03

3/04

3/05

3/06

3/07

3/08

3/09

net assets (shareholders' equity)

14%
12%
10%
8%
6%
4%
2%
0%
3/98

3/99

3/00

3/01

3/02
ROE

3/03

3/04

3/05

3/06

3/07

3/08

3/09

ROA

3

Construction Other
1,307
2,460
5%
10%

Business Segment Sales
1Q FY3/09

Food Service
1,186
5%
Dormitories
10,76745%

Contracted
Services
2,793
12%

Hotels
5,580
23%(Units: Million Yen)

Construction
595
Food Service
3%
1,129
5%

Contracted
Services
2,724
12%

Other
1,223
5%

Business Segment Sales
1Q FY3/10

Dormitories
10,68948%

Hotels
6,012
27%(Units: Million Yen)

4

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

3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 * 1Q3/09 1Q3/10
32,458 36,788 37,884 50,065 50,109 54,081 58,014 63,085 66,287 75,606 82,303 * 20,994 20,000
6,578 7,173 7,834 10,221 10,785 10,541 10,894 11,783 12,242 14,183 15,507 * 4,318 4,011
2,465 2,369 2,828 3,908 4,149 4,004 4,407 4,611 3,745 4,492 5,349 * 1,688 1,310
2,203 2,281 2,643 3,580 3,885 4,060 4,411 4,824 3,787 4,167 4,510 * 1,508 1,010
850 907 1,147 1,822 2,039 2,138 2,343 2,011 2,413 2,740 2,133 * 705 357

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

15,336 19,900 23,793 18,100 22,138 22,122 23,254 23,350 24,901 19,967 21,852 *
25,695 29,867 40,478 47,768 49,497 55,715 62,336 74,681 85,562 95,728 103,891 *
41,144 49,880 64,327 65,867 71,647 77,865 85,620 98,047 110,507 115,738 125,793 *
20,921 19,731 28,513 27,031 31,610 29,374 31,585 44,039 37,342 44,119 41,615 *
10,946 16,977 22,064 23,761 23,146 29,433 33,077 28,316 46,068 44,079 55,266 *
31,866 36,707 50,577 50,792 54,755 58,806 64,663 72,355 83,411 88,199 96,882 *
9,278 13,169 13,747 15,073 16,824 18,935 20,788 25,512 27,096 27,538 28,911 *yy change
net sales
gross income
operating income
ordinary income
net income

3.6% 13.3% 3.0% 32.2% 0.1%
6.3% 9.0% 9.2% 30.5% 5.5%
25.1% -3.9% 19.4% 38.2% 6.1%
18.2% 3.5% 15.9% 35.4% 8.5%
64.6% 6.7% 26.5% 58.8% 11.9%

7.9% 7.3% 8.7% 5.1% 14.1% 8.9% *-2.3% 3.3% 8.2% 3.9% 15.9% 9.3% *-3.5% 10.1% 4.6% -18.8% 19.9% 19.1% *4.5% 8.6% 9.4% -21.5% 10.0% 8.2% *
4.8% 9.6% -14.2% 20.0% 13.6% -22.2% *na -4.7%
na -7.1%
na -22.4%
na -33.1%
na -49.3%

margins
gross margins
operating margins
ordinary margins
net margins

20.3% 19.5% 20.7% 20.4% 21.5% 19.5% 18.8% 18.7% 18.5% 18.8% 18.8% *7.6% 6.4% 7.5% 7.8% 8.3% 7.4% 7.6% 7.3% 5.6% 5.9% 6.5% *6.8% 6.2% 7.0% 7.2% 7.8% 7.5% 7.6% 7.6% 5.7% 5.5% 5.5% *
2.6% 2.5% 3.0% 3.6% 4.1% 4.0% 4.0% 3.2% 3.6% 3.6% 2.6% *20.6% 20.1%
8.0% 6.6%
7.2% 5.1%
3.4% 1.8%

9.2% 6.9% 8.3% 12.1% 12.1% 11.3% 11.3% 7.9% 8.9% 9.9% 7.4% *
2.1% 1.8% 1.8% 2.8% 2.8% 2.7% 2.7% 2.1% 2.2% 2.4% 1.7% *22.6% 26.4% 21.4% 22.9% 23.5% 24.3% 24.3% 26.0% 24.5% 23.8% 23.0% *

na
na
na
na
23.7% 23.1%

other benchmarks
ROE
ROA
equity ratio
Units: million yen

21,852 20,482
103,891 105,082
125,793 125,687
41,615 40,996
55,266 55,457
96,882 96,453
28,911 29,233

5

1st Quarter of Fiscal Year March 2010 Earnings Announcement
August 7, 2009
Company Name:
Kyoritsu Maintenance Co., Ltd.
Stock Code:9616
URL: http://www.kyoritsugroup.co.jp/
Director:
Mitsutaka Sato, President
Contact:
Takumi Ueda, Vice President
Tel: +81-3-5295-7778
Earnings Announcement Filing Date (anticipated):
August 14, 2009
Dividend Payment Date (anticipated):--

Tokyo Stock Exchange(All figures of less than one million yen are rounded down to the nearest digit)

1. 1st Quarter of Fiscal Year March 2010 Consolidated Earnings (From April 1, 2009 to June 30, 2009)(1) Consolidated Earnings
Net Sales
1Q-FY3/10
1Q-FY3/09

Operating Income

Ordinary Income

Net Income

Million yen% yyMillion yen% yyMillion yen% yyMillion yen% yy

20,00020,994

-4.7
--

1,310
1,688

-22.4
--

1,010
1,508

-33.1
--

357
705

-49.3
--

Fully Diluted EPS

EPS
1Q-FY3/10
1Q-FY3/09

Yen

Yen

24.90
49.07

19.87
39.16

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Asset Ratio

Book Value per Share

Million yen

Million yen％

Yen

125,687
125,793

29,233
28,91123.1
22.8

2,017.84
1,995.59

Dividends per Share
End
End
End
3Q
2Q
Year

Full
Year

1Q-FY3/10
1Q-FY3/09

2. Dividend Conditions
Registry Date

End
1Q
Yen

FY3/09

Yen

Yen

19.00

Yen

Yen

19.00

38.00

19.00

19.00

38.00

FY3/10FY3/10 (Projected)

3. Fiscal Year March 2010 Consolidated Earnings Projection (April 1, 2009 to March 31, 2010)
Net Sales
Million Yen%yy

Operating Income

Ordinary Income

Million Yen

Million Yen%yy

Million Yen

%yy

Yen

2,820
4,690

-9.4
4.0

1,470
2,370

0.3
11.1

102.32164.97%yyFirst Half
43,650
3.9
3,490
0.5
Full Year
89,210
8.4
5,890
10.1
 Revisions to our earnings projections during the first quarter: None

Net Income

EPS

6

4. Others(1)

Important changes in our subsidiaries, including changes to the scope of our consolidation: Yes
Added: 0; Removed: 1, MB Mouton Property, Ltd.
(2) Application of simple accounting procedures and other special accounting procedures in the creation of ourquarterly consolidated financial statements: Yes(3) Changes in the accounting methods, procedures, display methods used in the creation of our consolidated
financial statements during the most recent quarter:① Changes accompanying revisions in accounting standards: Yes② Other changes: None
(4) Shares issued (Common stock)① Shares issued as of term end (including treasury stock): 15,125,582 at end 1Q FY3/10, 15,125,582 at end
FY3/09② Treasury stock as of term end: 759,515 at end 1Q FY3/10, 758,951 at end FY3/09③ Average shares issued during term: 14,366,335 at end 1Q FY3/10, 14,367,636 at end 1Q FY3/09

 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 timeof this writing. However our actual results may differ from our projections due to various unforeseen reasons.
Information Regarding Our Financial Statements
1. Information Regarding Our Consolidated Earnings
During the first quarter of the current fiscal year, despite signs of improvement in parts of the Japanese economy
with adjustments in inventories having been completed, the outlook for the overall economy remain severe as theemployment conditions worsened and personal consumption weakened.
The Kyoritsu Maintenance Group noted that there has been a shift in the seasonality of our earnings, where we
traditionally saw a larger portion of sales being booked during April and in the first quarter due to the start of the
fiscal year and subsequent increase in tenant contracts. This year we saw a concentration of tenant contracts
occurring a month early in March. Furthermore the first quarter tends to be a weak period in our hotel (resort
hotel) business due to the seasonal trend where peak resort season occurs during the months of July to September.
Against this backdrop we recorded a 993 million yen or 4.7% year-over-year decline in sales to 20 billion yen.
Also new hotel opening costs caused our operating income to drop by 22.4% year-over-year to 1.31 billion yen,and ordinary income fell by 33.1% year-over-year to 1.01 billion yen due to costs arising from capitalprocurement. These figures are in line with our projections and we therefore have not revised our earnings
projections. Furthermore we recorded a 49.3% year-over-year decline in net income to 357 million yen due inlarge part to the realization of evaluation losses on our marketable securities holdings.
We discuss our business performance in each of our business segments below.
Dormitory BusinessIn our dormitory business, we saw continued high occupancy rates on the back of strong demand from students at
new universities with which we formed alliances. However the early appearance in March of new tenant
contracts, which normally occur in April, led to year-over-year declines in sales and profits. Furthermore withregards to corporate dormitories and facilities, we saw a decline in monthly contracts due to weaker than
expected demand for training facilities arising from the recent worsening of corporate earnings. Consequently werecorded a decline in contracts of 188 tenants year-over-year to 27,672 as of the end of June 2009, and our sales
and operating income fell by 0.7% and 12.8% year-over-year to 10.689 billion yen, and 1.986 billion yen
respectively.
Hotel BusinessIn our hotel business, the six hotels we opened in the previous fiscal year combined with four new facilities
opened in the current term to raise our sales. With regards to profitability, our strict cost management of eachfacility contributed to improvements in costs on a per facility basis, but we saw a rise in total costs due to three7newly opened Dormy Inn (Business hotels) and one resort hotel (Resort hotels). Consequently our sales rose by
7.7% year-over-year to 6,012 million yen, but we incurred an operating loss of 543 million yen.
Contracted Services BusinessDespite efforts to promote strict cost controls, particularly in our office segment business, demands from clientsto cut prices and revise service agreements outpaced our abilities to reduce costs. Therefore we recorded declines
in both sales and operating income of 2.5% and 27.0% year-over-year to 2,724 and 75 million yen respectively.
Food Service BusinessIn response to the difficult operating environment in our food service business due to stagnant personal
consumption, we continued our efforts to control and reduce our variable costs, and restructure our earnings
structure. Despite our efforts, we saw a 4.8% year-over-year decline in sales to 1,129 million yen and an
operating loss of 300 million yen.
Construction Business
The operating environment in our construction business remained severe during the term under review due todeclines in real estate prices and despite reductions in building material costs. Against this backdrop, we focusedupon reducing construction costs of dormitories and hotels. However despite our efforts, we saw a 75.8% yearover-year decline in sales to 595 million yen, while we recorded a 100 million yen operating profit.
Other Business
Our other business is comprised of the wellness life (management of senior citizen housing), life service (catalog
and rental sales, insurance agency business), advertising agency, rental property brokerage and management,
comprehensive human resources, and financing services. In this segment we saw sales and operating income
declines of 6.4% and 19.2% year-over-year to 1,223 and 83 million yen respectively.
2. Information Regarding Our Consolidated Financial Position
At the end of the first quarter of the current fiscal year, our total consolidated assets fell by 106 million yen fromthe end of the previous fiscal year to 125,687 million yen. The main reason for this decline was a decrease in
cash and equivalents account.
Total consolidated liabilities at the end of the first quarter also fell by 428 million yen from the end of theprevious fiscal year to 96,453 million yen. We attribute this decline primarily to a decline in prepayments.
Net assets as of the end of the first quarter of the current fiscal year grew by 321 million yen from the end of thelast fiscal year to 29,233 million yen. An increase in retained earnings was the main factor contributing to therise in net assets.
Consequently our equity ratio rose by 0.3% points from the end of the previous year to 23.1% as of the end of thefirst quarter.
(Cash Flow Conditions)
During the first quarter of the current fiscal year our cash and equivalents fell by 2,290 million yen from the endof the previous fiscal year to 8,641 million yen.
In our operating activities we saw a net cash outflow increase by 1,757 million yen year-over-year to 3,842
million yen. We attribute this higher outflow to acquisitions of inventories in our construction business, and to
decline in prepayments in our dormitory business.

8In our investing activities we saw a net outflow of 1,625 million yen, a decrease of 1,553 million yen from the net
outflow seen during the same period of the previous year. We attribute this outflow primarily to the acquisition
tangible fixed assets in our dormitory and hotel businesses.
In our financing activities we saw a net inflow of 3,177 million yen, a decline of 3,422 million yen from the net
inflow in the same period of the previous fiscal year. The main factor behind this inflow was the issuance ofbonds.

3. Information Regarding Our Consolidated Earnings Projections
With regards to our consolidated earnings projections for the fiscal year to March 2010, we maintain ouroutstanding projections which were originally announced on May 15, 2009.
4. Others(1) Changes in material subsidiaries during the period (Changes in consolidation scope resulting from changes in
consolidated subsidiaries)
We have removed MB Mouton Property Ltd. from the scope or our consolidation.
(2) Application of simplified accounting methodologies and/or quarterly financial reporting standards in the
preparation of quarterly financial statements:(1) Simplified accounting methodologies
1) Inventories valuation methodology
A partial physical inventory, comprised of material items and sampling, was utilized for the valuation of
inventories at the current quarter end. We have reduced the valuations for inventories where we haveclear evidence that carrying value exceeds estimated net realizable value.
2) Deferred tax asset and liability calculation
Deferred tax asset recoverability assessment in the current quarter is based on the prior fiscal year’sbusiness outlook, tax planning strategies and other factors if it is determined there has been no significant
changes to the overall business environment since the end of the prior fiscal year.
(2) Quarterly financial reporting standards in the preparation of quarterly financial statements
Provision for taxes
The provision for taxes is based upon applying the estimated effective tax rate for the current fiscal year,
including the current quarter, to income before income taxes. Adjustments to income taxes are includedin the provision for taxes.
(3) Changes in accounting principles, policies, procedures, and classification in the preparation of quarterly
consolidated financial statements
Change in accounting principle for construction projects-in-progress and cost of construction
We previously utilized the percentage of completion method for long-term large construction projects,
with an estimated construction period of more than two years and contracted amounts greater than twobillion yen, and the completed contract method for all others. For construction contracts entered intofrom the first quarter of the current fiscal year, we have commenced application of Accounting Standards
Board of Japan’s Statement No. 15, “Accounting Standard for Construction Contracts” and GuidanceNo. 18, “Guidance on Accounting Standard for Construction Contracts” issued on December 27,
2007. Statement No. 15 and Guidance No. 18 requires us to utilize the percentage-of-completion method
if the total contract revenue, total contract costs, and percentage of completion, at the end of the reporting
period, can be reliably estimated, and the completed-contract method for all others. This change inaccounting principle had no impact on the Consolidated Statement of Income in the first quarter of thecurrent fiscal year.

91. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Units: Million Yen)
End 1Q FY3/10(June 30, 2009)

End FY3/09(March 31, 2009)

AssetsCurrent assets
Cash and deposits

9,774

12,065

Notes, accounts receivable

2,668

2,896

Real estate for sale

2,003

424

Uncompleted construction payment

1,495

982

Other

4,578

5,530

-39

-44

20,482

21,852

Buildings, structures

31,06827,869Land

25,92325,896

Others

16,60320,024

Total tangible fixed assets

73,59673,790

Others

3,705

2,921

Total intangible fixed assets

3,705

2,921

Investment securities

6,519

6,440

Guaranteed deposits

7,536

7,370

Security deposits

7,373

6,986

Others

6,507

6,535

Doubtful accounts reserves

-155

-154

Total investments, other assets

27,78027,179105,082

103,891

Deferred assets

123

49

Total assets

125,687

125,793

Doubtful account reserves
Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets

Investment, other assets

Total fixed assets

10

(Units: Million Yen)
End 1Q FY3/10(June 30, 2009)

End FY3/09(March 31, 2009)

Liabilities
Current liabilities
Notes, accounts payable

1,961

3,028

Short term debt

20,501

17,497

Unpaid taxes

513

530

9,577

11,675

Bonus reserves

242

910

Director bonus reserves

40

199

Completed construction guarantee reserves

11

12

Deposits

Construction work loss reserves

44

Others

8,143

7,758

Total current liabilities

40,996

41,615

Bonds

16,60014,400Long term debt

31,21833,055Retirement benefit reserves

1,183

1,168

Director retirement reserves

343

370

Fixed liabilities

Others

6,111

6,272

Total fixed liabilities

55,45755,26696,45396,882

Capital

5,136

5,136

Capital reserves

5,943

5,943

Retained earnings

20,08019,995

Treasury stock-1,469

-1,468

Total shareholders’ equity

29,691

29,607

Other marketable security valuation gains

-702

-937

Total valuation, translation gains

Total liabilities
Net assets
Shareholders’ equity

Valuation, translation gains
-702

-937

Minority holdings

245

241

Total net assets

29,233

28,911

Total liabilities, net assets

125,687

125,79311

(2) Quarterly Consolidated Income Statement(First Quarter Consolidated Income Statement)(Units: Million Yen)
1Q FY3/09(From April 1, 2008
to June 30, 2008)

1Q FY3/10(From April 1, 2009
to June 30, 2009)

Net sales

20,99420,000CGS

16,675

15,989Gross income

4,318

4,011

SG&A

2,629

2,700

Operating income

1,688

1,310

Interest income

24

23

Dividend income

1915

Deposit redemption income

22

22

Others

45

27

112

88

Interest payment

210

283

Other

82

105

292

389

1,508

1,010

Marketable securities sales profit－

5

Insurance policy refunds－

10

Income adjustment from previous term

7－

Others

1

3

9

19

Marketable securities valuation loss

7

236

Inventory valuation loss

24

－

Other

－

0

Total extraordinary loss

32

237

Net income before taxes
Corporate and other taxes
Minority shareholding income
Net income

1,486
737
44
705

792
419
14
357

Non-operating income

Total non-operating income
Non-operating expense

Total non-operating expense
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss

12

(3) Quarterly Consolidated Cash Flow Statement(Units: Million Yen)
1Q FY3/09(From April 1, 2008
to June 30, 2008)

1Q FY3/10(From April 1, 2009
to June 30, 2009)

Cash flows from operating activities
Net income before taxes other adjustments

1,486

792

Depreciation, amortization

855

936

Change in bonus reserves

-723

-667

Change in director bonus reserves

-129

-158

Interest, dividends received

-44

-39

Interest payment

210

283

Valuation gains in marketable securities－

236

Change in receivables

551

227

Change in accounts due

540

656

Change in inventories－-1,995

Change in payables-1,222-1,320Change in unpaid accounts

1,525

1,154

Change in prepayments received-2,882-2,106

－

-432

-895

-939

－

-103

-139

419

-867

-3,055

49

33

-205

-264

5

－

-1,065-556-2,084-3,842Acquisition of marketable securities

-203

－

Acquisition of tangible fixed assets-2,545-990

Acquisition of intangible fixed assets

－

-626

Recovery of loans extended－

257

Deposits, security deposits payments

-268

-641

Return of deposits, security deposits

－

593

-161

-218

-3,178-1,625

Change in unpaid consumption tax
Change in deposits
Change in security deposits
OthersSubtotalInterest, dividends received
Interest payments
Corporate, tax returns
Corporate tax
Cash flows from operating activities
Cash flows from investing activities

OthersCash flows from investing activities

13

(Units: Million Yen)
1Q FY3/09(From April 1, 2008
to June 30, 2008)

1Q FY3/10(From April 1, 2009
to June 30, 2009)

Cash flows from financing activities
Increase in short term debt

8,833

6,503

Repayment of long term debt

-1,456-5,336－

2,422

Bond redemption payment

-460

-150

Treasury stock acquisition－-0

Dividend payment

-261

-249

Dividend payment to minority shareholders

-16

-11

Other

-39

－

6,599

3,177

Bond issuanceCash flows from financing activities－－

Net change in cash and equivalents

1,335-2,290Cash and equivalents at term start

8,061

10,931

Cash and equivalents at term end

9,397

8,641

Translation gains for cash and equivalents(4) Assumptions Regarding Going Concern
Not applicable14(5) Segment Information(Information Regarding Our Various Business Segments)
First Quarter of Fiscal Year March 2009 (From April 1, 2008 to June 30, 2008)
Food
Service

Construction

Other

Total

(Units: Million yen)Company
Consolidated
Wide

Dormitories

HotelsContracted
Services

10,741

5,532

1,977

640

1,175

927

20,994－20,994

25

48

816

545

1,285

380

3,101

(3,101)－

10,767

5,580

2,793

1,186

2,460

1,307

24,095(3,101)

20,994

2,277

-429

103

15

-39

103

2,031

(342)

1,688

Sales
(1) External sales(2) Internal sales
Total
Operating income

At the end of the first quarter we wrote down 28 million yen to construction work loss reserves due to the outlook
for losses arising from construction projects on-hand.

First Quarter of Fiscal Year March 2010 (From April 1, 2009 to June 30, 2009)
Food
Service

Construction

Other

Total

(Units: Million yen)Company
Consolidated
Wide

Dormitories

HotelsContracted
Services

10,657

5,969

1,826

515

245

786

20,000－20,000

31

42

898

613

350

437

2,374

(2,374)－

10,689

6,012

2,724

1,129

595

1,223

22,375(2,374)20,000

1,986

-543

75

-3

100

83

1,699

(388)

1,310

Sales
(1)External sales(2)Internal sales
Total
Operating income(Regional Sales Information)
During the first quarter of the previous fiscal year (From April 1, 2008 to June 30, 2008) and the first quarter of thecurrent fiscal year (From April 1, 2009 to June 30, 2009)
We did not have any overseas subsidiaries or offices and therefore we do not report any regional sales information.
(Overseas Sales)
During the first quarter of the previous fiscal year (From April 1, 2008 to June 30, 2008) and the first quarter of thecurrent fiscal year (From April 1, 2009 to June 30, 2009)
We did not have any overseas sales.
(6) Significant Changes in Our Shareholders Equity
We do not note any significant changes.

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