共立メンテナンス（9616） – Financial Results Briefing Materials for FY 3/22

Kyoritsu Maintenance Co., Ltd.Consolidated Financial Results for FY 3/22La Vista TokyoBayMay, 2022Contents01 Summary of Financial ResultsP. ２02 Projected consolidated financial results P.21101 Summary of Financial Results02 Projected consolidated financial results2Financial highlightsRecovered profitability by utilizing unrealized gains and saving costs in the continuing corona environment Dormitory business secured operating income of 4.5 billion yen despite the decreasing number of foreign students. Hotel business posted operating income of -9.4 billion yen, but improved by 6.5 billion yen in real terms from the previous year. Secured operating income of 8.2 billion yen through the real estate securitization business (fund recovery of 37.3 billion yen).3Consolidated business results and main financial indicators100 million yenFY 3/21 FY 3/22 FY 3/22ForecastResultsResultsA（4/2020―3/2021） （4/2021―3/2022） （4/2021―3/2022）YoY ComparisonComparison withForecastsFY 3/21Results before theimplementation ofextraordinary lossprocessing due totemporary closureBFY 3/22sales andleasebackResultsCYoY Comparisonwithout factors onthe leftA – B – CNet sales1,212 1,730 1,737 +524 +43.2%+7 +0.4%1,212373 +149 +12.3%14 +10418 +1095 +127-5 -28.4%-0-4.5%+4 +439.1%-119-120-12182 +5082 +5557 +69EPS (yen)-311.92.513.8 +325.8- +11.2 +439.1%Operating incomeOrdinary incomeNet income*¹Depreciation expenseCash flow*²Capital investmentInvestment recoveryby sales and leaseback-90-91-12149-721240201915758127352—-60 +11 +22.3%+3 +5.6%66 +138+7 +13.0%95-29 -23.5%-31 -25.0%373 +373- +21 +6.2%＊1. In FY3/21, extraordinary losses of 5.9 billion yen were recorded, including 2.8 billion yen in losses from temporary closures to prevent the spread of COVID-19, and 2.5 billion yen in losses from the closure of the Korean office and global cabin. In addition, income taxes due to tax-effect accounting -2.7 billion yen, in the fiscal year ending March 31, 2022, income taxes due to tax-effect accounting -0.8 billion yen besides extraordinary losses of 0.6 billion yen.＊2. Cash flow : Net income + depreciation—4Factors causing discrepancies between consolidated results and forecastsOperating income(100 million yen)Q1Q2Q3Q4Full year（4 – 6/2021)(7 – 9/2021)(10 – 12/2021)(1 – 3/2022)(4/2021 – 3/2022)DormitorybusinessDormy InnbusinessResortsbusinessOthersTotalSales and leasebackof real estatebusinessForecastActComparison withForecastsForecastActComparison withForecastsForecastActComparison withForecastsForecastComparison withForecastsForecastActActComparison withForecastsForecastActComparison withForecasts14　　　10　　　-27　　　-17　　　-21　　　-9　　　0 5　　　-5　　　-5　　　-40　　　-15　　　4　　　4　　　-0 -5　　　4　　　+9 1　　　-1　　　-2 ― ― -3　　　-4　　　-0 -2　　　3　　　18　　　15　　　-3 -4　　　-5　　　-0 -3　　　-16　　　-13 68　　　77　　　0 -4　　　-5 78　　　66　　　+6 -12 48　　　45　　　-3 -54　　　-45　　　+8 -32　　　-48　　　-16 73　　　82　　　-14　　　-19　　　-5 20　　　14　　　-5 +10 +10 Due to prolonged restrictions on entry intoJapan, the arrival of new international studentsscheduled to enter dormitories at the end ofthe fiscal year was delayed and resulted in ashortfall in contract payments.RevPAR exceeded the plan by more than10% in the third quarter since October,when the emergency declaration waslifted, and returned to profitability.Occupancy rate significantly fellbehind the plan due to the issuanceof semi-emergency coronavirusmeasures in the fourth quarter.Recorded 37.3 billion yen in sales of9 properties by promoting utilizationof unrealized gains.Senior business fell short of plandue to little growth in theacquisition of new contracts.5Net sales and operating income broken down by segment■FY 3/21 cumulative ■FY 3/22 cumulative（100 million yen）Netsales464472Hotel totalFY 3/21 cumulative 462FY 3/22 cumulative 6273522522742094061601511261551515268DormitoryDormy InnResortsComprehensive BuildingFoods ServiceDevelopmentOthersManagement+79.5 (includes +82.9 in the real estate sales and leaseback)Operating incomeHotel totalFY 3/21 cumulative -160.0*FY 3/22 cumulative -94.549.045.56.22.586.06.56.04.5-45.8-39.4-48.7-0.1-0.7-91.8-103.7*-56.3*BuildingManagementDormitoryDormy InnResortsComprehensiveFoods ServiceDevelopmentOthers* In the same period of FY 3/21, our hotels were temporarily closed in response to the request for closure due to the state of emergency, and the losses incurred were posted as extraordinary losses (Dormy Inn: 1.18 billion yen, Resort: 1.68 billion yen)6Dormitory Business: Net sales and Operating incomeNet salesOperating income（100 million yen）Up 7.0 (+1.6%) YoYDown 3.4 (-7.1%) YoYDecrease due to lower occupancy rate at the beginning of the period caused by postponement of foreign students’ arrival in Japan and lower demand for training of new employeesPrevious period’s meal payment refund etc.Previous period’s meal payment +3.7refund and othersIncreased meal ingredient costs- 1.7Rent reduction – 2.1+0.2 OthersNewly opened:12 facilities 1,204 roomsGennanso:９facilities724 rooms7Dormitory Business:Trends in initial number of leased units/occupancy ratioDomealEmployeeInternational studentJapanese studentCapacity96.5 97.0 97.2 97.3 98.3 98.3 97.7 98.7 Steady growth in student contracts.Some international studentspostponed their entry.COVID-19 pandemic93.7 92.1 93.5 33,61434,4284,3724,5868,0508,68235,6974,8109,38736,4655,09737,7415,26339,2705,29340,6025,53141,53441,7175,6735,90910,06811,31212,08513,26612,40511,6151,9592,0242,1272,2642,4602,6603,0792,4661,93443,4446,25011,2921,97718,24118,18818,40718,42118,06018,34218,21318,35418,94421,09632,4884,1967,8871,87817,3740FY 3/13FY 3/14FY 3/15FY 3/16FY 3/17FY 3/18FY 3/19FY 3/20FY 3/21FY 3/22FY 3/23FY 3/21FY 3/22 YOY FY 3/23 YOY Breakdown of occupied rooms: FY 3/21 FY 3/22 YOY FY 3/23 YOY occupancy ratio (%)93.7% 92.1% △1.6PP93.5% +1.4PPJapanese student (room)18,35418,944+59021,096 +2,152Number of properties (facilities)505502△3514+12International student (room)2,4661,934 △5321,977+43Number of rooms (room)41,53441,717+18343,444 +1,727Employee (room)12,40511,615 △79011,292 △323Number of rooms occupied (room)38,89838,402 △49640,615 +2,213Domeal (room)5,6735,909+2366,250+34108Dormy Inn Business: Net sales and operating incomeNet salesOperating income（100 million yen）Up 99 (+39%) YoYDeficit reduction 57.9 YoY *Sales growth due to higher RevPAR:6,503 yen (up 1,370 yen fromprevious period)Increase in sales for reversal of previous year’s repairing +1.1＋0.7Korea＋0.3Closure in Japan etc. Rent reduction- 5.9Decrease in opening supplies +6.1Cost reduction of openingPreparations +11.2Decrease in repair expensesKorea Closure in Japan etc.+1.1+1.7+0.9-91.8-103.7**Including extraordinary losses of 1.18 billion yen caused by a temporary closure of hotels in the same period of FY 3/219Dormy Inn Business: Monthly trends in Occupancy Ratio and Average Daily Rate100%80%60%40%20%0%FY 3/20:ADRFY 3/20:OCCFY 3/21:ADRFY 3/21:OCCFY 3/22:ADRFY 3/22:OCC（Thousand yen）90.9%90.0%90.4%89.1%67.3%April 202269.3%92.7%77.4%96.3%93.4%94.2%94.8%85.1%89.1%75.8%70.4%83.5%84.3%57.2%70.5%66.9%69.0%63.1%42.8%30.4%35.3%39.0%48.3%43.8%40.3%90.9%88.3%73.4%86.6%74.6%83.4%77.9%52.8%64.4%86.9%76.0%56.4%57.7%57.4%51.7%54.5%1543.5%45.1%26.9%9.8FY 3/22 Business hotel industry average OCCSource: Japan Tourism Agency homepage6.76.25.97.38.411.67.711.68.110.47.411.08.812.38.98.310.67.88.79.68.510.78.311.08.910.09.37.29.78.77.29.68.77.77.59.1AprMayJunJulAugSepOctNovDecJanFebMarFY 3/21First state of emergencyRelaxing requests forself-restraint”Go To Travel campaign”(except TOKYO)”Go To Travel campaign”(add TOKYO)CampaigntemporarilysuspendedSecond state of emergencyFY 3/22Third state of emergencyFourth state of emergencySemi-state of emergencyOCCADRAnnualcumulative total（％）Q1Q2Q3Q4(thousand yen)Q1Q2Q3Q4FY 3/20 (Act)90.4% 94.2% 93.3% 75.0%88.1%FY 3/20 (Act)11.211.310.6FY 3/21 (Act)42.2% 69.8% 80.9% 64.3%64.8%FY 3/22 (Act)63.7% 72.3% 87.0% 79.9%75.8%FY 3/21 (Act)FY 3/22 (Act)6.27.78.08.58.98.8YoY＋21.6pp ＋2.5pp ＋6.1pp ＋15.5pp ＋10.9ppYoY+1.5+0.5-0.0+1.4+0.6Annualcumulative total9.17.48.910.67.98.5Note) The table above shows figures excluding hotels that opened in April 2020 or later, in order to enable comparison between the three periods under the same conditions302520105010Dormy Inn Business: RevPAR by month（Thousand yen）FY 3/20:RevPARFY 3/21:RevPARFY 3/22:RevPAR11.89.910.110.26.89.44.94.1April 20226.36.35.25.35.410.58.17.97.46.99.18.26.28.46.53.88.06.84.67.95.94.21284010.68.75.22.0Apr10.44.61.6MayFY 3/21First state of emergencyRelaxing requests for”Go To Travel campaign”self-restraint(except TOKYO)”Go To Travel campaign”(add TOKYO)CampaigntemporarilysuspendedSecond state of emergencyFY 3/22Third state of emergencyFourth state of emergencySemi-state of emergencyJunJulAugSepOctNovDecJanFebMarRevPAR(thousand yen)Q1Q2Q3Q4Annualcumulative totalFY 3/20 (Act)10.110.6FY 3/21 (Act)FY 3/22 (Act)2.64.95.66.19.97.27.76.84.87.19.35.16.5YoY+2.3+0.5+0.4+2.3+1.3Note) The table above shows figures excluding hotels that opened in April 2020 or later, in order to enable comparison between the three periods under the same conditions11Dormy Inn Business: Third-party evaluationDormy Inn attained first place for the business hotel department at JCSI in 2021Dormy Inn won first place in the ranking of “your most favorite business hotel”Score of Customer Satisfaction in the Business Hotel CategoryRanking2019RankName of HotelVote tally123452021Dormy Inn82.382.278.876.9Richmond HotelsRichmond HotelsComfort HotelsSuper HotelsSuper HotelsComfort HotelsDormy Inn81.781.079.178.577.4Daiwa Roynet Hotels *In FY2020, no survey was conducted due to the COVID-19.“JCSI(Japanese Customer Satisfaction Index)” is a survey of the customer satisfaction index in the service industries.Japan Productivity Center is conducting a survey at six times per year, approximately 30 industries, about 400 companies are targeted.Survey period: April 17 to April 24, 2022Research organization: Netorabo Survey Team(Softbank Group, IT media Inc.)12345678910111213Dormy InnRoute Inn HotelsTOYOKO INNDaiwa Roynet HotelsSuper HotelsRichmond HotelsMitsui Garden HotelsAPA HotelsSotetsu HotelsTokyu REI HotelsMystaysHotel LivemaxSmile HotelsOthers3,3571,6511,0969927055604864142361871111039438312Resorts Business: Net sales and operating incomeNet salesOperating income（100 million yen）Up 64 (+31%) YoYDeficit reduction 7.6 YoY *Increase due to reopening of buildings that were closed in the same periodRent reduction Decrease in opening preparation expensesDecrease in repair expenses etc. – 6.1+3.6+3.1-39.4-56.3**Including extraordinary losses of 1.68 billion yen caused by a temporary closure of hotels in the same period of FY 3/2113Resorts Business: Monthly trends in Occupancy Ratio and Average Daily RateFY 3/20:ADRFY 3/20:OCCFY 3/21:ADRFY 3/21:OCCFY 3/22:ADRFY 3/22:OCC（Thousand yen）100%80%60%40%20%0%77.2%76.8%75.1%76.0%76.5%78.9%75.4%74.4%75.8%75.2%61.1%April 202260.2%73.0%74.2%57.1%85.7%85.7%80.2%79.3%67.0%93.6%78.0%56.4%25.2%FY 3/22 Resort hotel industry average OCCSource: Japan Tourism Agency homepage34.8%36.2%60.8%43.4%42.8%46.9%30.3%31.3%26.1%20.5%54.444.6%44.3%22.4%15.0%38.843.720.5%9.5%47.651.7%31.8%39.8%29.9%18.6%45.340.244.644.439.137.142.439.550.843.141.837.439.739.142.241.743.144.742.645.938.842.039.843.441.643.550.143.744.548.750.045.445.0AprMayJunJulAugSepOctNovDecJanFebMarFY 3/21First state of emergencyRelaxing requests for”Go To Travel campaign”self-restraint(except TOKYO)”Go To Travel campaign”(add TOKYO)CampaigntemporarilysuspendedSecond state of emergencyFY 3/22Third state of emergencyFourth state of emergencySemi-state of emergencyOCC（％）Q1Q2Q3Q4(thousand yen)Q1Q2Q3Q4FY 3/20 (Act)76.4% 82.8% 76.6% 69.4%76.3%FY 3/21 (Act)17.2% 68.9% 76.8% 35.0%52.0%FY 3/20 (Act)FY 3/21 (Act)43.241.745.346.141.747.540.547.0FY 3/22 (Act)42.9% 63.3% 73.4% 56.6%59.1%FY 3/22 (Act)40.740.341.943.9YoY＋25.7pp-5.7pp-3.4pp ＋21.5pp＋7.1ppYoY-0.9-5.7-5.6-3.1ADRAnnualcumulative total12010080604020064.7%57.7%53.4%37.9%Annualcumulative total42.746.641.7-4.8Note) The table above shows figures excluding hotels that opened in April 2020 or later, in order to enable comparison between the three periods under the same conditions14Resorts Business: RevPAR by month（Thousand yen）FY 3/20:RevPARFY 3/21:RevPARFY 3/22:RevPAR60504030100April 202234.934.326.747.538.331.432.223.72017.919.614.822.529.412.45.8Apr4.5May41.733.833.331.932.333.030.438.130.026.234.032.921.129.228.126.219.724.022.914.211.1JunJulAugSepOctNovDecJanFebMarFY 3/21First state of emergencyRelaxing requests forself-restraint”Go To Travel campaign”(except TOKYO)”Go To Travel campaign”(add TOKYO)CampaigntemporarilysuspendedSecond state of emergencyFY 3/22Third state of emergencyFourth state of emergencySemi-state of emergencyRevPAR(thousand yen)Q1Q2Q3Q4FY 3/20 (Act)FY 3/21 (Act)33.07.137.531.731.936.5FY 3/22 (Act)17.425.530.7YoY+10.3-6.2-5.7Annualcumulative total32.624.224.6+0.428.116.424.8+8.3Note) The table above shows figures excluding hotels that opened in April 2020 or later, in order to enable comparison between the three periods under the same conditions15Resorts Business: Third-party evaluationRakuten Travel Awards 2021Rakuten Travel Gold AwardRakuten Japan Inn Award TOP47La Vista Hakodate BayTokinoyu SetsugetsukaArashiyama Hot Spring Kadensho in KyotoHamachidori no Yu KaishuOnyado ShikishimakanJapan Brand Collection 2022 Inns & Hotels TOP100（MEDIA PAL Co., ltd.）Awarded for two consecutive yearsInazumi Hot SpringKotohira hot Spring Onyado ShikishimakanTOP100 selectionTOP100 selection16Sales and leaseback of real estate businessExecuted liquidation of 9 propertiesSecured operating income of 8.2 billion yen and recovered 37.3 billion yenIzumo Inishie no yado Keiu（60 rooms）Izumo Oyado Tsukiyo no Usagi（100 rooms）La Vista Kusatsu HillsJozankei Yuraku Souan（69 rooms）（102 rooms）July 2017 Grand OpeningSeptember 2021 Grand openingScheduled to open in winter 2022Dormy Inn Mito （264 rooms）Onyado Nono Matsue（199 rooms）March 2020 Grand openingApril 26, 2022 OpenDormy Inn Premium Ginza （154 rooms）Scheduled to open in summer 2022Other 3 facilities:Shuhokaku (Hotel)Kyoto Nijojo (lot)Kobikikan Ginza building (Office)17Balance sheetEnd of March 2021End of March 2022Assets239.0 billion yenLiabilities168.2 billion yenCash anddepositsInterest-bearingliabilitiesAssetsLiabilities241.7 billion yen(+2.6 billion yen)171.1 billion yen(+2.8 billion yen)Cash anddepositsInterest-bearingdebt(+13.3 billion yen) (+6.1 billion yen) 24.5 billion yen130.0 billion yen37.9 billion yen136.1 billion yen*Include CB of30.1 billion yen*Include CB of30.1 billion yenNon-currentNon-currentassetsNet assetsassetsNet assets176.4 billion yen70.7 billion yen168.2 billion yen70.5 billion yen(-8.2 billion yen) (-0.1 billion yen) Treasury stock-0.3 billion yenTreasury stock-0.3 billion yenNotes: Interest-bearing liabilities = Short-term loans payable + Current portion of bonds + Bonds + Long-term loans payable +Lease debts+ Convertible bonds (CB)18Interest-bearing liabilities and Net D/E ratioInterest-bearing liabilities (net）Net debt-to-equity (D/E) ratio（100 million yen）1,5001,0005000Net D/E ratio improved due to an increase in cash and cash equivalents as a result of liquidation of real estate.1.91.9(Times)2.01.50.90.86156670.97511,2281,2551,054FY 3/18FY 3/19FY 3/20FY 3/21FY 3/22FY 3/22FY 3/22H1Q31.49821.51.00.50.019Share Price Trends and Dividends（thousand shares） 6/18/2018 Final price6,370 yenNumber of shares tradedstock prices（yen）3/23/2020 Final price(after affected with COVID-19)1,919 yenFY 3/18FY 3/19FY 3/20FY 3/21FY 3/22（yen）Dividends(End of 2nd Quarter）Dividends(Year-End）Payout ratio17.7%18.3%22.018.025.020.025.3%23.022.0FY 3/18FY 3/19FY 3/20FY 3/21FY 3/22Note) The Company’s profit distribution is determined based on the perspective of “returning profits to shareholders through performance-linked andearnings-responsive dividends” and the basic stance of “rewarding shareholders through stable and steady dividends over the long term.0%2010.010.010.010.07,0006,0005,0004,0003,0002,0001,000030%20%10%2,5002,0001,5001,000500080604020001 Summary of Financial Results02 Projected consolidated financial results21Projected consolidated financial results : highlightsPlan to increase revenues and profits by absorbing temporary expenses with Dormitory and Hotel businesses recovering Dormitory business plans to see a recovery in occupancy rate at the beginning of the period and an increase in the number of foreign student contracts during the period. Hotel business aims to return to profitability as RevPAR recovers significantly. Including temporary expenses such as opening costs and major repairs associated with reopening. Real estate liquidation is not included in the initial earnings forecast.22Projected consolidated financial results : main financial indicatorsFY 3/22FY 3/23100 million yenResultsForecastAChangeFY 3/22Resultsexcludingsales andleasebackFY 3/23Preparationcosts forproactive newopeningsFY 3/23Constructioncosts forlarge-scalerenovationsYoY Comparisonwithout factors onthe left（4/2021-3/2022） （4/2022-3/2023）BCDA – B – C – DNet sales1,7371,740+2+0.2%1,3620 +376 +27.7%0-38-38-38-68-64-52-8 +144-8 +132-8 +108Operating incomeOrdinary incomeNet incomeEPS (yen) Dividends per share (yen)Depreciation expenseCash flow *Capital investmentInvestment recoveryby sales and leaseback* Cash flow: Net income + depreciation13.825.6+11.8 +85.5%302210206575+15 +109.6%+3 +21.3%+4 +85.5%–+4+7.9%+9 +14.2%1418520606695142+47 +49.8%3730-373-23Projected consolidated financial results : broken down by segment■FY 3/22 cumulative ■FY 3/23 Forecast （100 million yen）NetsalesHotel totalFY 3/22 cumulative 627FY 3/23 Forecast 965472511514352451274151175689015115840654DormitoryDormy InnResortsComprehensiveFoods ServiceDevelopmentOthersOperating incomeBuildingManagement-83.3 (includes +82.9 in the real estate sales and leaseback)Hotel totalFY 3/22 cumulative-94.5FY 3/23 Forecast 5.748.745.521.42.55.71.82.64.52.486.0-45.8-48.7-15.6-0.7DormitoryDormy InnResortsComprehensiveFoods ServiceDevelopmentOthersBuildingManagement24Projected consolidated financial results : Operating Income by Major Segments by QuarterOperating income(100 million yen)Q1（4 – 6)Q2(7 – 9)Q3(10 – 12)Q4(1 – 3)Annual cumulative totalDormitorybusinessDormy InnbusinessResortsbusinessSales and leaseback ofreal estatebusiness　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 ActComparison withForecasts　　　FY 3/22 ActComparison withForecastsOthers　　　FY 3/23 ForecastTotal　　　FY 3/23 Forecast1410-3-278+35-21-13+70—5-7-1-40-2+37108-2-1714+32+17-985–5-5-6-1-1524+40+348450—-11+3-4-5-138+51522+6-5-6-1-16-11+477–77-4-5-16604548+3-4521+67-48-15+3382–82-19-24-41430-67+1525Projected consolidated financial results : Hotel Business Sub-segmentOperating income(100 million yen)Q1（4 – 6)Q2(7 – 9)Q3(10 – 12)Q4(1 – 3)Annual cumulative totalLarge-scale renewal　　　FY 3/23 ForecastOpenedbeforeFY 3/22FY 3/23opened(7 facilities）Dormy InnbusinessOpenedbeforeFY 3/22FY 3/23opened(5 facilities）Resortsbusiness　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 ActComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecasts　　　FY 3/22 ActComparison withForecasts　　　FY 3/22 Act　　　FY 3/23 ForecastComparison withForecastsLarge-scale renewal　　　FY 3/23 Forecast-2710+38–2-2—8-27+35-21-10+11–3-3—-21-13+7-1716+33-1714+32–1-1—-914–6-6—-98+1748+3–2-2–1-1450-110–8-8—-11+3+24+11+16-5-2+2–0-0–3-3-5-6-1—9-9–3-3-16-16-11+4-4532+77–6-6–4-4-4521+67-4815+64–28-28–3-3-48-15+3326Projected consolidated financial results : Dormitory Business: Net sales and Operating incomeNet salesOperating income（100 million yen）Up 38 (+8.2%) YoYUp 3.2 (+7.1%) YoYLarge-scale renewal costsEnergy costs and Increased meal ingredient costsOthers- 1.0- 8.0- 1.3Recovery of 1.4 points in occupancy rate at the beginning of the periodand increase in revenue due to increase in foreign students during the periodNewly opened:19 facilities 1,921 rooms27Projected consolidated financial results :Dormy Inn Business: Net sales and operating incomeNet salesOperating income（100 million yen）Up 161 (+46%) YoYUp 67.2 YoYSales growth due to higher RevPAR:8,698 yen (up 2,236 yen fromprevious period)Newly opened:7 facilities 1,113 roomsLarge-scale renewal costs- 3.9Increase in energy and food costs – 7.8+ 2.0Others28Projected consolidated financial results : Quarterly trends in Dormy Inn business and KPIsOCC・ADRRevPAR(Thousand yen)RevPAR : FY 3/21 ActRevPAR : FY 3/22 ActRevPAR : FY 3/23 forecastADR : FY 3/21 ActADR : FY 3/22 ActADR : FY 3/23 forecastOCC : FY 3/21 ActOCC : FY 3/22 ActOCC : FY 3/23 forecast(Thousand yen)87.3%89.1%88.9%85.7%81.1%70.2%69.8%85.3%79.5%63.8%9.46.05.68.77.77.28.44.82.6Q18.17.24.8Annualcumulative total9.68.010.58.99.89.57.58.6Q29.0Q39.0Q400Q2Q3Q4(%)Q1Q2Q3Q4(thousand yen)Q1Q2Q3Q4FY 3/21 (Act)42.1%69.8%81.1%63.8%64.7%FY 3/22 (Act)61.5%70.2%85.7%79.5%74.2%FY 3/21 (Act)FY 3/22 (Act)FY 3/23 (Forecast)87.3% 89.1% 88.9% 85.3% 87.7%FY 3/23 (Forecast)2.64.88.45.66.09.47.27.78.74.87.28.15.16.48.6Comparison with Forecasts ＋25.9pp ＋18.9pp ＋3.2pp ＋5.9pp ＋13.4ppComparison with Forecasts+3.6+3.3+1.0+0.9+2.2Annualcumulative totalRevPAR61.5%42.1%6.27.8Q10%OCCADR(thousand yen)Q1Q2Q3Q4FY 3/21 (Act)FY 3/22 (Act)FY 3/23 (Forecast)6.27.89.68.08.610.5+1.9Comparison with Forecasts+1.8+0.8+0.4+1.2Annualcumulative total8.99.09.87.59.09.57.98.79.9Note) The table above shows figures excluding hotels that opened in April 2021 or later, in order to enable comparison between the three periods under the same conditions29Projected consolidated financial results : Resorts Business: Net sales and operating incomeNet salesOperating income（100 million yen）Up 176 (+64%) YoYDeficit reduction 33 YoY *Sales growth due to higher RevPAR:34,802 yen (up 10,059 yen fromprevious period)Newly opened:5 facilities 1,027 roomsLarge-scale renewal costs- 3.3Increase in energy and food costs – 7.1- 1.4Others30Projected consolidated financial results: Quarterly trends in resorts business and KPIsOCC・ADRRevPARADR : FY 3/21 ActOCC : FY 3/21 ActADR : FY 3/22 ActOCC : FY 3/22 ActADR : FY 3/23 forecastOCC : FY 3/23 forecast(Thousand yen)(Thousand yen)RevPAR : FY 3/21 ActRevPAR : FY 3/22 ActRevPAR : FY 3/23 forecast66.9%69.3%80.2%64.7%77.8%77.3%74.5%71.1%57.7%35.0%41.7%17.1%41.943.546.349.247.947.946.446.439.532.025.737.337.030.933.025.316.229.116.97.1Q140.5Q10%OCC39.8Q241.5Q343.8Q4Annualcumulative total00RevPAR(%)Q1Q2Q3Q4(thousand yen)Q1Q2Q3Q4Q2Q3Q4FY 3/21 (Act)FY 3/22 (Act)FY 3/23 (Forecast)7.116.929.132.025.739.5Comparison with Forecasts+12.2+13.737.030.937.3+6.3Annualcumulative total16.225.324.124.733.034.8+7.7+10.0FY 3/21 (Act)17.1%69.3%77.3%35.0%51.8%FY 3/22 (Act)41.7%64.7%74.5%57.7%59.7%FY 3/23 (Forecast)66.9% 80.2% 77.8% 71.1% 74.1%Comparison with Forecasts ＋25.1pp ＋15.5pp ＋3.3pp ＋13.4pp ＋14.3ppADR(thousand yen)Q1Q2Q3Q4FY 3/21 (Act)FY 3/22 (Act)FY 3/23 (Forecast)Comparison with Forecasts41.940.543.5+3.046.339.849.2+9.447.941.547.9+6.3Annualcumulative total46.641.446.9+5.546.443.846.4+2.6Note) The table above shows figures excluding hotels that opened in April 2021 or later, in order to enable comparison between the three periods under the same conditions31Medium-Term Outlook : Impact of COVID-19Total number of Japanese guestsNumber of foreign visitors to Japan1Up scenario2 Base scenario3 Down scenario1Up scenario2 Base scenario3 Down scenarioAssuming that 70% of the population has completed the second dose of vaccination until 21/10, followed by the third dose in about 6 months and that demand recovers from 22/3 for the new school term and new fiscal year.Assuming recovery of demand to 2019 levels in 22/9, when the third round of vaccinations is completed.Assuming recovery of tourism demand to only 2019 levels in 22/11 because of the appearance and prevalence of mutant strains again after the Omicron strain and the absence of the expected effect of additional vaccinationsAssuming that it takes about 3 months for the Omicron strain outbreak of 22/1 to be under control, followed by easing of tourist entry from 22/6. (IATA up-scenario)Assuming that the Omicron strain outbreak of 22/1 is settled but tourists are eased into the country in 22/9 when the third dose of vaccination is completed. (IATA baseline scenario) Assuming that tourists entry is eased in 23/1 due to an outbreak of Omicron strain or further mutant strains. (IATA baseline scenario)(million people)Estimated figure absent COVID-19FY 2019 level400350359369Up scenarioBase scenarioDown scenario50045040035030025020043442241147045841341944640739139737037638636435131425128524350403020100(million people)Japanese government target figureEstimated figure absent COVID-19423543364033FY 2019 level31322924Up scenarioBase scenarioDown scenario470.24220162017201820192020202120222023202420252016201720182019202020212022202320242025※Source: Survey by major research organizations, February 202247393149413632273125453723191432outlook for recovery of Dormy Inn & Kyoritsu ResortRecovery rate to RevPAR before COVID-19 impact (compared to the same month in 2019)National average*ResortsDormy Inn state of emergencyGO TO Travel campaignstate of emergencystate of emergencystate of emergencySemi-state of emergencyMonthly recovery rate of RevPAR, source of the company’s earnings forecast 100%RevPAR level in 2019150%50%0%Since the outbreak of the 2020 novel coronavirus infection RevPAR has declined due to intermittent measures to control human flow.However, recovery rate of RevPAR in Dormy Inn and Kyoritsu Resort hotels has always been much higher than the industry average.RevPAR in FY03/2023 is expected to recover by 89% for Dormy Inn and 100% for Kyoritsu Resort compared to that in the pre-Corona year of 2019.Jan Feb Mar Apr May JunJul Aug Sep Oct Nov DecJan Feb Mar Apr May JunJul Aug Sep Oct Nov DecJan Feb Mar Apr May JunJul Aug Sep Oct Nov DecJan Feb Mar2020202120222023＊ Source:STR 202233Funding and investment planPurposeAmount(100 million yen)DetailsMarch,31 2022cash equivalent37.9billion yenfundraisingOperating CF7.5billion yenLong-term borrowing24.8billion yensyndicate loanUnder the uncertain outlook, strengthening the financial base while taking the following three points into accountcapital investment14.2billion yen new business openingLarge-scale renewal2.2billion yen Existing Businesses①Large-scale renovations to maintain and improve customer satisfaction and capital investment for future growthdividend0.7billion yen②Utilizing syndicated loans with low interest ratesfundmanagementAgreement to return8.5billion yenMarch,31 2023cash equivalent44.4billion yen③Securing the necessary funds for operations even at the end of the fiscal year ending March 31, 2023 ● Breakdown of capital investment of 14.2 billion yen : Dormitory Business15％、Dormy Inn business 30％、Resorts business 35％Major CapitalInvestmentProperty NameAreaProperty NameAreaMajor CapitalInvestmentOnyado Nono MatsueTottoriLa Vista TokyoBayTokyoDormy InnOnyado Nono Matsumoto NaganoOnyado Nono Asakusa BetteiTokyoResortsJozankei Yuraku SouanKannonzaki Keikyu HotelDormy Inn Express Toyohashi AichiKyoto Omuro Kadensho NinnajiHokkaido KanagawaKyoto34Dormitory/hotel development plans and sales and leaseback projects for real-estatePlannedFY 3/21FY 3/22FY 3/23FY 3/24FY 3/25+15 facilities*+1,181 rooms*+21 facilities*+1,928 rooms*+19 facilities*+1,921 rooms*+15 facilities*+1,500 rooms*+15 facilities*+1,500 rooms*Ending number offacilities507 facilitiesEnding number offacilities512 facilitiesEnding number offacilities513 facilitiesEnding number offacilities523 facilitiesEnding number offacilities533 facilitiesEnding guest capacity41,927 roomsEnding guest capacity42,551 roomsEnding guest capacity43,357 roomsEnding guest capacity44,457 roomsEnding guest capacity45,557 roomsLeasing rate87.9%Leasing rate87.7%Leasing rate87.6%Leasing rate87.9%Leasing rate88.2%Dormitories,Domeal[L] Hokudai Avenue,[L] Nippori,[L] Sendai Tsutsujigaoka,[L] Nagakute,[L] Hamadayama,[L] Komazawa Park,[L] Esaka Park,[L] Yokohama-Nishi,[L] Hyakumanben Annex,[L] Azabujuban etc.[L] Sakado Hanamachi,Niigata Akashidori,[L] Chuo University Nanpei,[L] Iriya,[L] Duo Jiyugaoka,[L] Kameari,[L] Angelique Cour,[L] Tsuruma Park,[L] Osaka Fukushima,[L] Kyoto Kuinabashi,Gennanso, etc.[L] Nishi-Shinjuku,[L] Utsunomiya, [L]KashiwaTeikyo University Hachioji,[L] Tokai University mae,[L] Sapporo Oyachi[L] Sendai Yamamotocho,[L] Minamimoricho,[L] Kyoto Yamashina,[L] Nishinomiya Kitaguchi, etc.[L] Hirosaki,[L] Sendai Teppo-chonishi,[L] Kyoto Fushimi,[L] Kyoto Saiin,[L] Otsuka,[L] Sendai Komatsushima,[L] Yamagata Honcho.etc.[L] Nishinomiya Nigawa,[L] Osaka kyobashi, etc.+4 facilities*+1,166 rooms*+2 facilities*+471 rooms*+7 facilities*+1,113 rooms*+4 facilities*+766 rooms*+3 facilities*+562 rooms*Ending number offacilities85 facilitiesEnding number offacilities85 facilitiesEnding number offacilities91 facilitiesEnding number offacilities95 facilitiesEnding number offacilities98 facilitiesEnding guest capacity15,219 roomsEnding guest capacity15,468 roomsEnding guest capacity16,453 roomsEnding guest capacity17,219 roomsEnding guest capacity17,781 roomsLeasing rate99.1%Leasing rate99.1%Leasing rate99.1%Leasing rate99.2%Leasing rate99.2%Dormy Inn[L] Premium Nagasaki Ekimae,[L] Nono Kyoto Shichijo,[L] Kobe Motomachi,[L] Ikebukuro.[L] Nono Kanazawa,[L] Hiroshima Annex.[L] Premium Ginza,[L] Nono Osaka Yodoyabashi,[L] Express Fujisan Gotemba,[L] Nono Sendai,[L] Okayama,[L] Nono Matsumoto,[L] Nono Matsue.Express Toyohashi,Nono Asakusa Bettei,[L] Nono Beppu,[L] Aomori, etc.[L] Nono Fukui, etc.+3 facilities*+297 rooms*+1 facilities*+69 rooms*+5 facilities*+1,027 rooms*+1 facilities*+79 rooms*+2 facilities*+127 rooms*Ending number offacilities36 facilitiesEnding number offacilities37 facilitiesEnding number offacilities42 facilitiesEnding number offacilities43 facilitiesEnding number offacilities45 facilitiesEnding guest capacity3,135 roomsEnding guest capacity3,207 roomsEnding guest capacity4,234 roomsEnding guest capacity4,321 roomsEnding guest capacity4,448 roomsLeasing rate58.3%Leasing rate64.2%Leasing rate73.9%Leasing rate74.4%Leasing rate75.1%ResortsShuzenji Hot Spring Katsuragawa,Okuhida Hot Spring Hirayukan,[L] Wakura Hot Spring Noto Kaishu.[L] La Vista Kusatsu Hills.[L] Kannonzaki Keikyu Hotel.Ninnaji,Takayu Hot Spring.[L] Kyoto Umekoji Kadensho,[L] La Vista Tokyo Bay,Nasu Shiobara Rengetsu,[L] Jozankei Yuraku Souan,[L] Hakodate Bay Annex.Companywide leasing rate89.2%89.3%89.7%90.0%90.3%* Indicates numbers of increases in facilities and rooms from development projects (does not indicate numbers of increases from the end of the previous year for facilities and rooms in operation at the end of the year)(Note) [L] indicates a leased property; red text indicates a property planned for real-estate securitization in the future.35Organizational Strategies to Strengthen GovernanceGeneral Meeting of ShareholdersBoard of directorsDivisions and Group CompaniesSustainability Promotion CommitteeNominating and Compensation Committee36Important notesAs used in these Notes, “presentation” refers to this Document explained or distributed by Kyoritsu Maintenance Co., Ltd. (“Kyoritsu” hereinafter), as well as oral presentations, questions and answers, and information provided in writing or orally. This presentation (including related oral explanations and questions and answers) does not constitute, state, or form, under any legal jurisdiction, a part of any proposal, guidance, or solicitation to purchase, acquire, apply for, exchange, trade, or otherwise dispose of any securities, or solicitation of any vote or approval.Companies invested in by Kyoritsu, whether directly or indirectly, are separate companies. The term “Kyoritsu” may be used inthis presentation for convenience’ sake to refer to Kyoritsu and its subsidiaries in general. Similarly, the term “the Company” (including “we,” “us,” and “our”) may be used to refer to the subsidiaries in general or to persons working for them. These terms also may be used in cases in which it would not be useful to specify a specific company.Forward-looking statementsThis presentation and materials distributed in connection with this presentation include forward-looking statements, ideas, or views regarding the Company’s future businesses and future positions and results, including Kyoritsu estimates, projections, goals, and plans. While forward-looking statements often include terms such as “targets,” “plans,” “believes,” “hopes,” “continues,” “expects,” “aims,” “intends,” “will,” “may,” “should,” “would,” “could,” “anticipates,” “estimates,” “projects,” orsimilar terms, or negative expressions thereof, that is not necessarily always the case. The forward-looking statements in this document are based on current assumptions and ideas in light of the information currently available to the Company. Forward-looking statements are not guarantees by the Company or its executives of future business results, and they involve risks, both known and unknown, uncertainties, and other factors. Risks and uncertainties include, but are not limited to, the economic conditions of the Company’s businesses, including general economic conditions in Japan and around the world, as well as the appearance or development of competing products, decisions by regulators and the timing thereof, and natural disasters. As a result of such factors, the Company’s actual business performance, results, and financial details may differ substantially from the future business performance, results, and financial details described, whether explicitly or implicitly, in forward-looking statements. The Company and its executives make no guarantee of any kind regarding the ultimate accuracy of projections indicated in forward-looking statements, and actual business performance or results may differ substantially. Recipients of thispresentation should not depend excessively on forward-looking statements. Kyoritsu is under no obligation to update the forward-looking statements contained in this presentation or presented by the Company through other means. Past performance is no indicator of future results, and Kyoritsu’s business results as contained in this presentation are neither indicators, forecasts, projections, nor estimates of its future business results.37