Kyoritsu Maintenance Co., Ltd. (Securities Code: 9616) Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 [JGAAP] August 2024 l
(Name) Koji Nakamura (Name) Manabu Takaku August 9, 2024 Listed exchange: Tokyo Tel.  +81-3-5295-7778 Supplementary materials for the financial results: Yes Investor conference for the financial results: None (Rounded down to the nearest million yen) Consolidated financial results for the first three months of the fiscal year ending March 31, 2025 (April 1, 2024 to June 30, 2024) l. (1) Consolidated operating results
per share have been calculated assuming this stock split had taken place at t the start of the previous consolidated fiscal year.
(Note)  The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Net assets per share have been calculated assuming this stock split had taken place at t the start of the previous consolidated fiscal year.
(Note)  The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Figures above for the year ended March 31, 2024 indicate actual dividend amounts prior to this stock split. Second-quarter and year-end dividends for the year ending March 31, 2025 (forecasts) reflect the impact of this stock split.
3. Forecasted consolidated results for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025) (Note)  The Company conducted a two-for-one stock split on common stock effective April 1, 2024. Income per share in the Forecast Consolidated Results has been calculated using the number of shares issued and outstanding (not including treasury stock) after this stock split. *Notes (1) Significant changes in the scope of consolidation during the period: None (2) Application of special accounting treatment in the preparation of the quarterly consolidated financial statements: Yes (Note)  For details, please see "(3) Notes on Quarterly Consolidated Financial Statements, (Notes on Special Accounting Procedures in The Preparation of Quarterly Consolidated Financial Statements)" under "2. Quarterly Financial Statements and Major Notes" on page 11 (3) 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: (iii) Changes in accounting estimates: (iv) Retrospective restatements: Yes None None None (4)  Number of issued shares (common stock) (i)   Number of issued shares at the end of the period (including treasury shares)
been calculated assuming this stock split had taken place at t he start of the previous consolidated fiscal year. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None *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 “(3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information” under “1. Overview of Operating Results, etc." on page 6 for the assumptions used for the forecast of financial results and notes concerning the use of the forecast of financial results. (How to obtain supplementary materials on financial results) Supplementary materials on financial results are posted to TDnet on the same date and to the Company website.

1. Overview of Operating Results, etc.
(1) Overview of Operating Results During The Period Under Review
Despite gradual improvements in the conditions of employment and income in the Japanese economy during the three months ended June 30, 2024, the recovery in personal consumption stalled due to rising prices, reflecting factors such as the depreciation of the yen. Rising costs due to high prices and labor shortages, affected corporate revenues. Rising costs also affected Group performance. Nevertheless, our hotel business fared well due to growing numbers of inbound tourists. The number of foreign visitors to Japan since March 2024 has exceeded three million (Source: "Number of Foreign Visitors to Japan," Japan National Tourism Organization (JNTO)). As a result, the Group saw substantial earnings growth in the first three months of the current consolidated fiscal year, recording net sales of 52,080 million yen (up 11.5% YoY), operating income of 3,821 million yen (up 31.2% YoY), ordinary income of 4,117 million yen (up 47.1% YoY), and net income attributable to owners of parent of 2,695 million yen (up 54.1% YoY). Segment business performance is reviewed below. (i) Dormitory Business In its Dormitory Business, the Company opened eight new facilities nationwide in April, adding 907 rooms. The occupancy rate at t the start of the quarter for all dormitories, including the rooms newly added, was 97.0%, down 1.2 points YoY. In addition to publicizing its strengths of safety and security to a wider market, the Company has implemented thoroughgoing cost controls and worked to optimize sales prices in response to rising costs. As a result, net sales increased 5.3% year on year to 14,202 million yen, and operating income increased 20.4% year on year to 1,961 million yen, offsetting the decline in occupancy rates at the beginning of the period.
(ii) Hotel Business
The Hotel Business saw solid domestic demand and continuing growth in inbound tourism. Aggressive sales activities and rigorous revenue management (to optimize selling prices) helped maintain high occupancy rates and unit prices. During the period under review, the Company actively implemented wide-ranging renovation work to improve customer satisfaction. However, significant growth in both sales and income offset the impact of construction costs, losses due to facility closures, and inflation. Net sales amounted to 31,409 million yen (up 14.9% YoY). Operating income was 2,945 million yen (up 31.6% YoY).
(iii) Comprehensive Building Management Business
In the Comprehensive Building Management Business, despite growth in the numbers of facility management and cleaning projects, sales recoiled slightly from the previous fiscal year due to the absence this year of a large construction order. Sales were 4,300 million yen (down 0.9% YoY); operating loss was 73 million yen (vs. 3 million yen during the same period of the previous fiscal year).
(iv) Food Service Business
In the Food Service Business, despite growing numbers of contracted hotel restaurants, various factors, including the higher cost of food and labor, resulted in n t sales of 2,853 million yen (up 18.1% YoY) and operating income of 35 million yen (down 22.5% YoY).
(v) Development Business
Due to an increase in dormitory and hotel development projects and other factors, the Development Business reported net sales of 364 million yen (up 154.2% YoY) and an operating loss of 14 million yen (vs. operating loss of 41 million yen in the same period of the previous fiscal year).
(vi) Other Businesses
Other Businesses consist of the Senior Life Business (management and operation of senior residences), the Public Kyoritsu Partnership (PKP) Business (services provided under contract to local governments), support business for people who live alone, the insurance agency business, comprehensive human-resource services, the financial business, and the administrative outsourcing business. The total of these businesses resulted in n net sales of 4,378 million yen (up 9.1% YoY) and operating income of 24 million yen (down 28.6% YoY) due to the impact of operating deficits in the Senior Life Business, which opened the previous fiscal year.
(2) Overview of Financial Position During The Period Under Review
(Assets) Total assets at t the end of the first quarter of this consolidated fiscal year stood at 269,533 million yen, down by 1,388 million yen from the end of the previous consolidated fiscal year. Main factors for this decrease included declines in cash and deposits. (Liabilities) Liabilities at t the end of the third quarter of this consolidated fiscal year stood at 181,094 million yen, down by 3,222 million yen from the end of the previous consolidated fiscal year. The main factors for this decrease included declines in notes and accounts payable—trade, income taxes payable, etc. (Net assets) Net assets at t the end of the first quarter of this consolidated fiscal year stood at 88,439 million yen, up 1,834 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in retained earnings. As a result, the equity ratio was 32.8 %, an increase of 0.8 points from the end of the previous consolidated fiscal year. (3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information We have left our forecasts of consolidated financial results, announced on May 15, 2024, unchanged for the time being.

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

(Quarterly Consolidated Statement of Comprehensive Income)
(3) Notes on Quarterly Consolidated Financial Statements (Notes on The Going Concern Assumption) Not applicable (Notes Concerning Any Notable Changes in Shareholders' Equity) Not applicable (Notes on Special Accounting Procedures in The Preparation of Quarterly Consolidated Financial Statements) (Calculation of tax expenses) The Company calculates tax expenses by rationally assuming an effective tax rate after applying tax effect accounting to income (loss) before income taxes for the consolidated fiscal year, including the first quarter of the fiscal year, and multiplying income (loss) before income taxes for the first three months of the fiscal year by the estimated effective tax rate. However, if the result of calculation of tax expenses using the estimated effective tax rate is significantly unreasonable, the statutory effective tax rate is used.
(Notes on Changes in Accounting Policies)
(Application of the Accounting Standard for Income Taxes - Current) We applied the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27; "Revised Accounting Standard 2022" hereinafter) from the beginning of the first quarter under review. Revisions of income categories for tax purposes (taxation of other comprehensive income) are in accordance with the transitional treatment specified by the provisions of paragraph 20-3 of Revised Accounting Standard 2022 and with the transitional treatment specified by the provisions of paragraph 65-2(2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; "Revised Implementation Guidance 2022" hereinafter). This has no impact on quarterly consolidated financial statements. In addition, we applied the provisions of Revised Implementation Guidance 2022 from the start of the first quarter under review. This entailed the revised treatment of consolidated financial statements for cases involving deferred tax on gains or losses arising from the sale of shares of subsidiaries and of other securities held by consolidated companies. These changes in accounting policies have been applied retrospectively. Quarterly consolidated financial statements for the same quarter of the previous year and consolidated financial statements for the previous fiscal year have been restated to reflect this retrospective application. This change does not affect quarterly consolidated financial statements for the same quarter of the previous year or consolidated financial statements for the previous fiscal year.
(Notes on Quarterly Consolidated Cash Flow Statement)
Quarterly consolidated statements of cash flows have not been prepared for the three months ended June 30, 2024. Depreciation and amortization expenses (including amortization of intangible assets excluding goodwill) for the three months ended June 30

(Notes on Segment Information)
[Segment information]
I  For the three months ended June 30, 2023 (April 1, 2023 – June 30, 2023) 1. Information on net sales, income or loss by each reporting segment
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 additional businesses. 2. Adjustment of segment income (loss) of -991 million yen includes the amount of elimination of inter-segment transactions of 26 million yen and corporate expenses of -1,017 million yen that are not allocated to each reportable segment. Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative departments of the head office. 3. Segment income (loss) is adjusted with operating income on the quarterly consolidated statement of income. 2. Information on impairment loss on non-current assets or goodwill, etc. by reporting segment Not applicable II For the three months ended June 30, 2024 (April 1, 2024 – June 30, 2024) 1. Information on net sales, income or loss by each reporting segment
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 additional businesses. 2. Adjustment of segment income (loss) of -1,058 million yen includes the amount of elimination of inter-segment transactions of 25 million yen and corporate expenses of -1,084 million yen that are not allocated to each reportable segment. Corporate expenses mainly consist of expenses related to the Accounting Department and other administrative departments of the head office. 3. Segment income (loss) is adjusted with operating income on the quarterly consolidated statement of income. 2. Information on impairment loss of non-current assets or goodwill, etc. by reporting segment Not applicable