Summary of Consolidated Financial Results for the Six Months Ended May 31, 2015 (Based on Japanese GAAP)

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1 Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Company name: K.R.S.Corporation Summary of Consolidated Financial Results for the Six Months Ended May 31, 2015 (Based on Japanese GAAP) Stock exchange listing: Tokyo Stock code: 9369 URL Representative: President and Representative Director Hideaki Nishio Inquiries: Director Corporate Officer General Manager Administration Division Tomoari Sasajima TEL Scheduled date to file Quarterly Securities Report: July 15, 2015 Scheduled date to commence dividend payments: August 6, 2015 Preparation of supplementary material on quarterly financial results: No Holding of quarterly financial results meeting: Yes (for institutional investors and analysts) July 1, 2015 (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the six months ended May 31, 2015 (from December 1, 2014 to May 31, 2015) (1) Consolidated financial results (cumulative) Percentages indicate year-on-year changes Operating revenue Operating income Ordinary income Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % May 31, , , , May 31, , , , (5.0) Net income per share Diluted net income per share Yen Yen May 31, May 31, (2) Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of May 31, ,552 30, As of November 30, ,661 29, Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended November 30, Year ending November 30, Year ending November 30, 2015 (Forecast) Forecast of consolidated financial results for the year ending November 30, 2015 (from December 1, 2014 to November 30, 2015) Percentages indicate year-on-year changes Net income Operating revenue Operating income Ordinary income Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 153, , , ,

2 4. Notes (1) Changes in significant subsidiaries during the six months ended May 31, 2015 (changes in specified subsidiaries resulting in the change in scope of consolidation): No (2) Application of special accounting methods for preparing quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Yes Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior period financial statements: No (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of May 31, ,677,900 shares As of November 30, ,677,900 shares Number of treasury shares at the end of the period As of May 31, ,044 shares As of November 30, ,044 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) May 31, ,469,735 shares May 31, ,668,856 shares 2

3 Quarterly consolidated financial statements Consolidated balance sheets Assets Current assets As of November 30, 2014 As of May 31, 2015 Cash and deposits 2,985 3,349 Notes and operating accounts receivable 19,694 18,950 Merchandise Supplies Other 1,629 1,853 Allowance for doubtful accounts (1) (1) Total current assets 24,579 24,375 Non-current assets Property, plant and equipment Buildings and structures, net 9,407 9,676 Machinery, equipment and vehicles, net 4,664 4,690 Tools, furniture and fixtures, net Land 17,106 17,106 Leased assets, net 1,910 1,741 Construction in progress Total property, plant and equipment 33,584 33,757 Intangible assets Investments and other assets Investment securities 2,006 2,193 Lease and guarantee deposits 3,532 3,530 Net defined benefit asset Other 1,267 1,202 Allowance for doubtful accounts (49) (51) Total investments and other assets 6,986 6,916 Total non-current assets 41,082 41,177 Total assets 65,661 65,552 3

4 As of November 30, 2014 As of May 31, 2015 Liabilities Current liabilities Notes and operating accounts payable - trade 13,195 12,683 Short-term loans payable 3,374 3,167 Income taxes payable Provision for bonuses 655 1,072 Provision for directors' bonuses Other 7,800 7,607 Total current liabilities 25,821 25,444 Non-current liabilities Long-term loans payable 6,626 6,471 Net defined benefit liability Other 2,955 2,806 Total non-current liabilities 10,278 9,957 Total liabilities 36,099 35,401 Net assets Shareholders' equity Capital stock 4,063 4,063 Capital surplus 4,209 4,209 Retained earnings 19,638 20,246 Treasury shares (12) (359) Total shareholders' equity 27,898 28,159 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges (19) (19) Foreign currency translation adjustment Remeasurements of defined benefit plans (626) (592) Total accumulated other comprehensive income (60) 165 Minority interests 1,723 1,825 Total net assets 29,561 30,151 Total liabilities and net assets 65,661 65,552 4

5 Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) May 31, 2014 May 31, 2015 Operating revenue 73,188 75,871 Operating cost 70,365 72,249 Operating gross profit 2,822 3,622 Selling, general and administrative expenses 1,718 1,884 Operating income 1,104 1,737 Non-operating income Interest income 4 4 Dividend income 7 6 Rent income Subsidy income 26 0 Gain on valuation of derivatives 20 Other Total non-operating income Non-operating expenses Interest expenses Expenses on facilities rented to others Loss on valuation of derivatives 65 Foreign exchange losses 5 Share of loss of entities accounted for using equity method 13 2 Other Total non-operating expenses Ordinary income 1,166 1,699 Extraordinary income Gain on sales of non-current assets Gain on sales of investment securities Gain on sales of shares of subsidiaries and associates 46 Total extraordinary income Extraordinary losses Loss on sales and retirement of non-current assets Loss on cancellation of leases 4 9 Impairment loss 71 Other 4 1 Total extraordinary losses Income before income taxes and minority interests 1,244 1,734 Income taxes - current Income taxes - deferred 92 (228) Total income taxes Income before minority interests 547 1,071 Minority interests in income Net income

6 Consolidated statements of comprehensive income (cumulative) May 31, 2014 May 31, 2015 Income before minority interests 547 1,071 Other comprehensive income Valuation difference on available-for-sale securities (26) 171 Deferred gains or losses on hedges (2) 0 Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax 33 Total other comprehensive income (13) 241 Comprehensive income 534 1,312 Comprehensive income attributable to Comprehensive income attributable to owners of parent 446 1,188 Comprehensive income attributable to minority interests

7 Consolidated statements of cash flows May 31, 2014 May 31, 2015 Cash flows from operating activities Income before income taxes and minority interests 1,244 1,734 Depreciation 1,581 1,821 Impairment loss 71 Increase (decrease) in allowance for doubtful accounts (4) 1 Increase (decrease) in provision for bonuses Increase (decrease) in provision for retirement benefits (21) Increase (decrease) in net defined benefit liability (82) Increase (decrease) in provision for directors' bonuses (39) (25) Interest and dividend income (11) (11) Interest expenses Share of (profit) loss of entities accounted for using equity method 13 2 Loss (gain) on sales of investment securities (52) (28) Loss (gain) on sales of shares of subsidiaries and associates (46) Loss (gain) on sales of property, plant and equipment (42) (61) Loss on retirement of property, plant and equipment 8 17 Decrease (increase) in notes and accounts receivable - trade (707) 750 Decrease (increase) in inventories (18) 48 Increase (decrease) in notes and accounts payable - trade 220 (752) Increase (decrease) in long-term accounts payable - other (109) (74) Other, net 119 (23) Subtotal 2,277 3,811 Interest and dividend income received Interest expenses paid (48) (51) Income taxes paid (666) (747) Income taxes refund 8 10 Net cash provided by (used in) operating activities 1,585 3,037 Cash flows from investing activities Purchase of property, plant and equipment (4,300) (1,546) Proceeds from sales of property, plant and equipment Purchase of intangible assets (102) (90) Purchase of investment securities (13) (15) Proceeds from sales of investment securities Purchase of shares of subsidiaries (21) Payments of loans receivable (24) (9) Collection of loans receivable Proceeds from sales of shares of subsidiaries and associates 58 Other, net (1) 1 Net cash provided by (used in) investing activities (4,254) (1,464) 7

8 May 31, 2014 May 31, 2015 Cash flows from financing activities Net increase (decrease) in short-term loans payable 50 (250) Proceeds from long-term loans payable 3, Repayments of long-term loans payable (400) (712) Repayments of lease obligations (337) (351) Purchase of treasury shares (0) (347) Cash dividends paid (120) (139) Cash dividends paid to minority shareholders (30) (34) Net cash provided by (used in) financing activities 2,561 (1,234) Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents (95) 364 Cash and cash equivalents at beginning of period 2,548 2,985 Cash and cash equivalents at end of period 2,452 3,349 8