KYORITSU MAINTENANCE CO.,LTD.

As of the end of March 2026, the Dormitory Business operated 536 facilities with capacity for 46,147 residents and 44,995 contracted residents, maintaining an occupancy rate of 97.4% at the start of the period. Across its four products—Student Dormitory, Employee Dormitory, Domire, and Contracted Dormitory—the business recorded net sales of ¥57,924 million and secured operating profit of ¥6,194 million even amid rising costs. The high occupancy rate underpinned by long-term residency contracts generates stable earnings less susceptible to economic fluctuations.

As of the end of March 2026, the Hotel Business operated 143 facilities with 22,294 guest rooms, achieving net sales of ¥149,256 million and operating profit of ¥21,053 million (operating margin of 14.1%). Through the introduction of the membership program "Dormy's," the proprietary points program "Dormipo," and the smart check-in system "Express Check-in," the company is independently driving improvements in the direct booking ratio and cost efficiency.

Centered on the facility operations of the Dormitory and Hotel businesses, the company has built a vertically integrated model that completes Building Management, Foods, and Development functions within the group. The Foods Business recorded net sales of ¥14,006 million and operating profit of ¥590 million (up 141.7% year on year) driven by an increase in contracted hotel restaurant operations, while the Development Business recorded net sales of ¥43,114 million and operating profit of ¥3,048 million (up 353.1% year on year) driven by an increase in in-group development projects, with intra-group demand supporting overall performance.

Continuing to open more than 10 facilities per period, expanding beyond the Greater Tokyo and Kansai areas into unserved areas such as Okayama, Takamatsu, and Tokushima. In FY2027 (ending March 2027), 13 facilities and 2,401 rooms were opened, starting with an occupancy rate of 98.5% at the beginning of the period. The sales structure was also strengthened, including the establishment of a Chushikoku branch, with the aim of expanding to a capacity of 50,000 rooms.

In FY2027 (ending March 2027), 6 new Dormy Inn facilities and 2 new Resort facilities are planned to open, continuing to expand room capacity. Profitability will be further enhanced through the renewal and functional enhancement of the 'Dormy's' membership program app to increase the direct booking ratio and reduce OTA commissions, as well as through improved labor productivity via the expansion of the smart check-in system.

While bringing dormitory and hotel development within the Group in-house, the company continues to carry out real estate securitization of held assets. In FY2026 (ending March 2026), ¥23,488 million in tangible fixed assets was transferred to real estate for sale and securitized, significantly contributing to revenue and profit. The company will continue to strengthen its management structure for rising costs and promote development and store opening support.

The Senior Life Business is positioned as a business to be cultivated, developing new concept products that leverage the operational know-how of the Dormitory Business. The aim is to build living environments that meet diverse needs, including those of the elderly. The operating loss for the Other Business as a whole was ¥181 million (an improvement from a loss of ¥426 million in the previous period), showing a trend toward reduction.

The company is promoting improvements in customer convenience and labor productivity, including expanded adoption of the smart check-in system and enhanced functionality of the membership program. It is also pursuing sustainability strategy, human capital strategy, and DX strategy, aiming to build a solid management foundation capable of responding to changes in the social environment.