Interim report
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KYORITSU HOTELS & DORMITORIES Kyoritsu Maintenance Co. , Ltd. ( Securities Code : 9616 ) Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ JGAAP ] August 2026 - 1 -
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- 2 - Consolidated Financial Results for the Three Months Ended June 30, 2026 (Under Japanese GAAP) August 7, 2026 Company name Kyoritsu Maintenance Co., Ltd. Stock exchange listings: Tokyo Prime Securities code 9616 URL https://www.kyoritsugroup.co.jp/ Representative (Title) President (Name) Koji Nakamura Inquiries (Title) Executive Director (Name) Manabu Takaku Tel +81-3-5295-7778 Dividend payable date (as planned) – Supplemental material of results: Yes Convening briefing of results: None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 61,142 7.6 4,864 8.2 4,810 (3.9) 3,040 (15.5) June 30, 2025 56,807 9.1 4,498 17.7 5,007 21.6 3,597 33.5 Note: Comprehensive income For the three months ended June 30, 2026 3,340 millions of yen (-3.3%) For the three months ended June 30, 2025 3,455 millions of yen (10.6%) Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 33.44 – June 30, 2025 46.08 39.53 (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of Millions of yen Millions of yen % Yen June 30, 2026 320,843 146,777 45.7 1,614.38 March 31, 2026 316,655 145,528 46.0 1,600.64 Reference: Owner’s equity As of June 30, 2026 146,777 millions of yen As of March 31, 2026 145,528 millions of yen 2. Cash dividends Annual dividend First quarter Second quarter Third quarter Year end Annual Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 23.00 – 23.00 46.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 23.00 – 23.00 46.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated financial forecast for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2027 277,000 0.6 26,000 4.6 26,000 (0.8) 18,000 (3.8) 197.98 Note: Revisions to the earnings forecasts most recently announced: None
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- 3 - * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of 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 restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) ① Number of issued and outstanding shares at the period end (including treasury stock) As of June 30, 2026 91,243,720 shares As of March 31, 2026 91,243,720 shares ② Number of treasury stock at the period end As of June 30, 2026 324,820 shares As of March 31, 2026 324,610 shares ③ Average number of shares (quarterly period-YTD) Three months ended June 30, 2026 90,918,885 shares Three months ended June 30, 2025 78,071,097 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters (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.
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- 4 - Table of contents for attached materials 1. Overview of Operating Results, etc. .................................................................................................................................................. 5 (1) Overview of Operating Results During the Period Under Review ................................................................................................. 5 (2) Overview of Financial Position During the Period Under Review ................................................................................................. 6 (3) Explanation of Forecasts of Consolidated Results and Other Forward-Looking Information ........................................................ 6 2. Quarterly Financial Statements and Major Notes .............................................................................................................................. 7 (1) Quarterly Consolidated Balance Sheet ........................................................................................................................................... 7 (2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income............................. 9 (Quarterly Consolidated Income Statement) .................................................................................................................................. 9 (Quarterly Consolidated Statement of Comprehensive Income) .................................................................................................. 10 (3) Notes on Quarterly Consolidated Financial Statements ............................................................................................................... 11 (Notes on The Going Concern Assumption) ................................................................................................................................ 11 (Notes Concerning Any Notable Changes in Shareholders’ Equity) ............................................................................................ 11 (Notes on Special Accounting Procedures in The Preparation of Quarterly Consolidated Financial Statements) ....................... 11 (Notes on Changes in Accounting Policies) ................................................................................................................................. 11 (Notes on Quarterly Consolidated Cash Flow Statement) ............................................................................................................ 11 (Additional Information) .............................................................................................................................................................. 11 (Notes on Segment Information) .................................................................................................................................................. 12
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- 5 - 1. Overview of Operating Results, etc. (1) Overview of Operating Results During the Period Under Review During the three months ended June 30, 2026, despite gentle recovery in Japan thanks to improvements in employment and income conditions, the economic outlook remained uncertain for various reasons, including the continuing rise in the cost of oil and other resources due to Middle East tensions and the weak yen, which caused further market volatility. Under such conditions, despite being affected by rising costs, the Group fared relatively well. The Dormitory Business generated stable growth based on optimized pricing and continuing efforts to meet growing user demand by opening new facilities. The Hotel Business maintained high occupancy rates and unit prices based on robust inbound tourist demand, aggressive sales activities targeting rising domestic demand, including demand associated with the spring Golden Week holidays, and rigorous revenue management (to optimize selling prices). As a result, in the first three months of the current consolidated fiscal year, the Group recorded net sales of 61,142 million yen (up 7.6% YoY), operating profit of 4,864 million yen (up 8.2% YoY), ordinary profit of 4,810 million yen (down 3.9% YoY) due mainly to a decrease in the share of profit of entities accounted for using the equity method, and net profit attributable to owners of parent of 3,040 million yen (down 15.5% YoY) due to the rebound from a temporary decrease in tax costs associated with revisions to the recoverability of deferred tax assets in the previous period. Segment business performance is reviewed below. (i) Dormitory Business In its Dormitory Business, the Company opened a total of 13 new facilities across Japan in April, adding 2,401 rooms. It began the fiscal year with an occupancy rate of 98.5%, up 1.1 points YoY. While concentrating on opening new facilities in the Tokyo metropolitan area and ordinance-designated major cities where schools and businesses tend to cluster, we expanded into promising previously untapped areas with latent needs through means including a business partnership formed with Nagasaki University. In addition to highlighting strengths in safety and security to even more potential customers, we took active steps to optimize selling prices. As a result, net sales of the Dormitory Business totaled 16,075 million yen (up 7.6% YoY), driving operating profit up 29.6% YoY to 2,269 million yen, which offset rising food and other operating costs and higher opening costs generated by new facilities. (ii) Hotel Business During the period under review, the Hotel Business opened Natural Hot Springs Higoromo Dormy Inn Yokkaichi, its 100th location in the Dormy Inn chain. The Hotel Business successfully targeted growing demand both in Japan and overseas. Foreign visitors to Japan have increased steadily overall, despite the trend in certain regions to restrain from travel to Japan (source: “Number of Foreign Visitors to Japan,” Japan National Tourism Organization [JNTO]). Additionally, we updated the official Dormy’s membership app to simplify reservation procedures and increase the ease of using coupons. Resulting net sales for the Hotel Business totaled 37,058 million yen (up 7.8% YoY). Operating profit, however, fell to 3,744 million yen (down 8.1% YoY) due to higher construction costs compared to the same period of the previous year on opening new facilities and planned large-scale remodeling aimed at improving customer satisfaction. (iii) Comprehensive Building Management Business The Comprehensive Building Management Business recorded net sales of 4,504 million yen (down 3.3% YoY) and an operating loss of 136 million yen (vs. 83 million yen in the same period of the previous year) due to a rebound from large- scale remodeling work recorded in the construction segment in the previous period and other factors. (iv) Food Service Business In the Food Service Business, growth in numbers of contracted hotel restaurants and other factors led to net sales of 3,729 million yen (up 15.0% YoY) and operating profit of 261 million yen (up 87.4% YoY). (v) Development Business In the Development Business, various factors including a rebound from large-scale projects recorded in the previous period in the design segment led to net sales of 984 million yen (down 11.6% YoY) and an operating loss of 120 million yen (vs. operating profit of 60 million yen in the same period of the previous 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); the support business for people who live alone; the insurance agency business; comprehensive human resource services; the financial business; and
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- 6 - the administrative outsourcing business. Total net sales recorded by these businesses rose to 5,220 million yen (up 6.4% YoY), with operating profit of 108 million yen (vs. an operating loss of 74 million yen in the same period of the previous year). (2) Overview of Financial Position During the Period Under Review (Assets) Total assets at the end of the first quarter of this consolidated fiscal year stood at 320,843 million yen, up 4,188 million yen from the end of the previous consolidated fiscal year. Main factors contributing to this increase included an increase in real estate for sale. (Liabilities) Liabilities at the end of the first quarter of this consolidated fiscal year stood at 174,065 million yen, up 2,939 million yen from the end of the previous consolidated fiscal year. Main factors contributing to this increase included an increase in short-term borrowings. (Net assets) Net assets at the end of the first quarter of this consolidated fiscal year stood at 146,777 million yen, up 1,248 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in retained earnings. The resulting equity ratio was 45.7%, 0.3 points below the figure at 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 for the year ending March 31, 2027, announced May 15, 2026, unchanged for the time being.
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- 7 - 2. Quarterly Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 29,961 24,552 Notes and accounts receivable - trade, and contract assets 19,993 17,351 Real estate for sale 4,822 17,474 Real estate for sale in process 10,179 8,983 Costs on construction contracts in progress 75 167 Other 10,051 10,434 Allowance for doubtful accounts (53) (43) Total current assets 75,029 78,921 Non-current assets Property, plant and equipment Buildings and structures, net 60,444 60,911 Land 53,600 53,159 Construction in progress 41,034 38,058 Other, net 7,028 7,952 Total property, plant and equipment 162,107 160,081 Intangible assets 4,599 5,983 Investments and other assets Investment securities 18,257 18,682 Guarantee deposits 18,052 18,114 Leasehold deposits 22,587 22,913 Other 15,988 16,132 Allowance for doubtful accounts (99) (100) Total investments and other assets 74,785 75,742 Total non-current assets 241,492 241,807 Deferred assets 132 115 Total assets 316,655 320,843
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- 8 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 8,960 7,177 Short-term borrowings 29,786 44,675 Current portion of bonds payable 4,680 4,280 Income taxes payable 5,360 1,933 Contract liabilities 106 316 Provision for bonuses 4,060 921 Provision for bonuses for directors (and other officers) 872 207 Other 25,133 26,535 Total current liabilities 78,960 86,047 Non-current liabilities Bonds payable 4,340 4,340 Long-term borrowings 81,416 77,258 Retirement benefit liability 824 918 Provision for retirement benefits for directors (and other officers) 262 255 Other 5,323 5,245 Total non-current liabilities 92,166 88,018 Total liabilities 171,126 174,065 Net assets Shareholders’ equity Share capital 22,971 22,971 Capital surplus 28,124 28,123 Retained earnings 92,197 93,146 Treasury shares (264) (264) Total shareholders’ equity 143,028 143,977 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,466 1,826 Deferred gains or losses on hedges 1,309 1,215 Foreign currency translation adjustment (494) (446) Remeasurements of defined benefit plans 218 205 Total accumulated other comprehensive income 2,500 2,800 Total net assets 145,528 146,777 Total liabilities and net assets 316,655 320,843
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- 9 - (2) Quarterly Consolidated Income Statement and Quarterly Consolidated Statement of Comprehensive Income (Quarterly Consolidated Income Statement) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 56,807 61,142 Cost of sales 42,833 45,941 Gross profit 13,974 15,201 Selling, general and administrative expenses 9,476 10,336 Operating profit 4,498 4,864 Non-operating income Interest income 31 25 Dividend income 62 90 Share of profit of entities accounted for using equity method 686 162 Other 72 72 Total non-operating income 853 351 Non-operating expenses Interest expenses 249 365 Other 94 40 Total non-operating expenses 343 406 Ordinary profit 5,007 4,810 Extraordinary losses Loss on disaster 41 98 Other – 0 Total extraordinary losses 41 99 Profit before income taxes 4,966 4,710 Income taxes 1,369 1,669 Profit 3,597 3,040 Profit attributable to owners of parent 3,597 3,040
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- 10 - (Quarterly Consolidated Statement of Comprehensive Income) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 3,597 3,040 Other comprehensive income Valuation difference on available-for-sale securities 52 359 Deferred gains or losses on hedges (172) (93) Foreign currency translation adjustment (17) (2) Remeasurements of defined benefit plans, net of tax (7) (13) Share of other comprehensive income of entities accounted for using equity method 3 50 Total other comprehensive income (141) 300 Comprehensive income 3,455 3,340 Comprehensive income attributable to Comprehensive income attributable to owners of parent 3,455 3,340
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- 11 - (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) Not applicable (Notes on Quarterly Consolidated Cash Flow Statement) Quarterly consolidated statements of cash flows have not been prepared for the three months ended June 30, 2026. Depreciation and amortization expenses (including amortization of intangible assets excluding goodwill) for the three months ended June 30 were as follows: Three Months Ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three Months Ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Depreciation and amortization 2,125 million yen 2,433 million yen (Additional Information) (Change in Purpose of Holding) Due to a change in the purpose of holding, a portion of property, plant and equipment of 9,293 million yen (Buildings and structures of 3,136 million yen, land of 819 million yen and construction in progress of 5,337 million yen) was reclassified to real estate for sale of 7,613 million yen and real estate for sale in process of 1,680 million yen during the first quarter of this consolidated fiscal year.
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- 12 - (Notes on Segment Information) [Segment information] I For the three months ended June 30, 2025 (April 1, 2025 – June 30, 2025) 1. Information on net sales, income or loss by each reporting segment (Millions of yen) Reportable segments Other Total Reconciling items Per quarterly consolidated financial statements Dormitories Hotels Comprehensive Building Management Food Services Development Reportable segments Sales Revenues from external customers 14,844 34,271 2,013 550 430 52,111 4,696 56,807 – 56,807 Transactions with other segments 95 119 2,643 2,691 683 6,233 212 6,445 (6,445) – Net sales 14,939 34,391 4,656 3,242 1,113 58,344 4,908 63,252 (6,445) 56,807 Segment income (loss) 1,751 4,073 (83) 139 60 5,940 (74) 5,866 (1,368) 4,498 Notes: 1. The Other segment consists of the following businesses which are not included in the reporting segments: 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, the administrative outsourcing business, and other additional businesses. 2. The adjustment of negative 1,368 million yen to segment income or loss includes 38 million yen for elimination of inter-segment transactions and 1,406 million yen for corporate expenses not allocated to reportable segments. 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 profit 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, 2026 (April 1, 2026 – June 30, 2026) 1. Information on net sales, income or loss by each reporting segment (Millions of yen) Reportable segments Other Total Reconciling items Per quarterly consolidated financial statements Dormitories Hotels Comprehensive Building Management Food Services Development Reportable segments Sales Revenues from external customers 15,981 36,924 1,942 589 697 56,135 5,007 61,142 – 61,142 Transactions with other segments 94 134 2,561 3,140 286 6,217 213 6,430 (6,430) – Net sales 16,075 37,058 4,504 3,729 984 62,353 5,220 67,573 (6,430) 61,142 Segment income (loss) 2,269 3,744 (136) 261 (120) 6,018 108 6,126 (1,261) 4,864 Notes: 1. The Other segment consists of the following businesses which are not included in the reporting segments: 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, the administrative outsourcing business, and other additional businesses. 2. The adjustment of negative 1,261 million yen to segment income or loss includes 146 million yen for elimination of inter-segment transactions and 1,408 million yen for corporate expenses not allocated to reportable segments. 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 profit on the quarterly consolidated statement of income. 2. Information on impairment loss on non-current assets or goodwill, etc. by reporting segment Not applicable