Second Quarter of Fiscal Year Ending March 31, 2024

Financial Results Briefing Materials
RENAISSANCE INCORPORATED
November 10, 2023
(Tokyo Stock Exchange Prime Market: 2378)

Table of Contents
1. Financial Highlights‥2

2. Overview of the Sports Club Business‥9

3. Major Topics for Second Quarter‥ 14

4. Store Openings and Closings‥ 26

5. Initiatives for the Second Half of the Fiscal Year‥ 29

6. Outlook for Fiscal Year Ending March 31, 2024

‥ 36

7. Medium- to Long-Term Direction‥ 38
1

1. Financial Highlights

2

Consolidated/Non-Consolidated Income Statements(Millions of yen)

Consolidated
Net sales

Six Months Ended Six Months Ended
September 30, 2022 September 30, 2023

Year-on-Year

19,88921,155+6.4%

Operating income

96

281

+191.6%

Ordinary income

24

214

+763.9%Net income attributable toowners of the parent
company

6150-(Millions of yen)
Six Months Ended

Six Months Ended

19,635

20,863+6.3%

Operating income

134

275

+104.2%

Ordinary income

105

189

+79.1%Net income (loss)

87

126

+45.1%

Non-consolidated September 30, 2022 September 30, 2023
Net sales

Year-on-Year3

Differences between the Second Quarter Earnings
Forecast and Actual Results
Second Quarter(Forecasts)
Net sales

21,000Operating income

170

Ordinary income0

Net income attributableto owners of the parent
company
Basic earnings per share
(yen)

(100)

Differences between
Factors for Differences between
Earnings Forecast
Earnings Forecast and Actual Results
and Actual Results+0.7%
21,155
Remained generally in line with plans+155+65.8%
Improvement in heating and lighting
281
expenses, etc.
+111
Increase in share of profit of entities
accounted for using equity method
214(Tokyu Sports Oasis), foreign+214
exchange gains, etc.
150
+250

Second Quarter(Actual Results)(5.29)

7.46

Dividend per share (yen)

3.0

3.0

Operating income to net
sales

0.8%

1.3%

4

Factors for Increase and Decrease in Consolidated
Operating Income (Year-on-Year)In addition to the increase in net sales due to an increase in the number of members of sports clubs,
including new stores, and the price revision of fitness membership in July, the curbing of heating andlighting expenses through projects to mitigate drastic changes in such expenses, etc., profit increased(Millions of yen)

(212)

(508)

(252)
(65)

(25)

(57)

FY2022 2Q
OperatingincomeIncrease in
Net Sales

Sales
Promotion
Expenses

Personnel
ExpensesUtilities
Expenses

Other Facility
Expenses

Other
Expenses

Other Costs

Head Office
Expenses

FY2023 2Q
OperatingincomeBreakdown of Cost of Sales for Sports Clubs

5

Consolidated Net Sales by Division(Millions of yen)
Six Months Ended
Six Months Ended
Composition
Compositio
September 30,
September 30,
Year-on-Year
ratio
n
ratio
2022
2023

Fitness Division Total

8,694

43.7%

9,540

45.1%

+9.7%

Swimming school

4,808

24.2%

4,959

23.4%

+3.2%

Tennis school

1,961

9.9%

2,015

9.5%

+2.7%

Other schools

630

3.2%

646

3.1%

+2.5%

School Division Total

7,399

37.2%

7,621

36.0%

+3.0%

Shop Division Total

434

2.2%

435

2.1%

+0.2%

Other Income Total

1,838

9.2%

1,874

8.9%

+1.9%

Total Net Sales - Sports
Facilities

18,36792.3%

19,471

92.0%

+6.0%

Entrusted Management

364

1.8%

346

1.6%

(5.1%)

Nursing Care andRehabilitation

815

4.1%

922

4.4%

+13.1%

Other Net Sales

341

1.7%

416

2.0%

+21.8%

Other Net Sales Total

1,156

5.8%

1,338

6.3%

+15.7%

Total Net Sales

19,889100.0%

21,155100.0%+6.4%(beauty salon, massage, etc.)

6Consolidated Balance Sheet(Millions of yen)
Fiscal Year Ended
March 31, 2023
(as of March 31, 2023)

As of September
30, 2023

Year-on-Year

Major Factors for Increase and Decrease

Current
assets

8,784

8,166

(7.0%)

Fixed assets

33,461

34,738

+3.8%

27

22

(16.6%)

42,272

42,927+1.5%

10,341

10,199

(1.4%)

Decrease in short-term borrowings, etc.

20,93921,739+3.8%

Increase in lease liabilities due to new store
openings, etc.

Total Liabilities

31,281

31,939+2.1%

Total Net Assets

10,991

10,987(0.0%)

Total Liabilities andNet Assets

42,272

42,927+1.5%

Deferred
assetsTotal Assets
Current
liabilities
Fixedliabilities

Decrease in cash and deposits, etc.
Increase in leased assets due to new store
openings, etc.
Amortization on issuance of Class A sharesand convertible bond-type bonds with shareacquisition rights

7

Consolidated Statement of Cash Flows(Millions of yen)
Six Months Ended Six Months Ended
September 30, 2022 September 30, 2023
Cash flows from operating activities

(81)

1,986

Cash flows from investing activities(1,672)(1,772)

Cash flows from financing activities

1,150

(331)

(713)

(198)

4,855

5,532

4,141

5,334

Net increase (decrease) in cash andcash equivalents, etc.
Cash and cash equivalents at
beginning of period
Cash and Cash Equivalents at End
of Period

Highlights of Six Months
Ended September 30, 2023
Increase in net income before income taxes,
depreciation and amortization, and long-term
accounts payable - other, decrease inaccrued consumption taxes, etc.
Purchase of property, plant and equipment,
etc.
Changes in long-term and short-termborrowings, proceeds from sale andleaseback transactions, etc.

8

2. Overview of the Sports Club Business9Number of Members by Division(Number of Members)

September 30, Composition September 30, Composition
Year-on-Year
2022
ratio
2023
ratio

*
*
*

Fitness Division
Total

176,63749.0%

185,477

47.4%

+5.0%

Swimming school

105,13629.1%

106,550

27.3%

+1.3%

Tennis school

34,037

9.4%

33,573

8.6%(1.4%)

Other schools

19,733

5.5%

19,6985.0%(0.2%)

School Division
Total

158,906

44.0%

159,821

40.9%

+0.6%

Online Total

25,305

7.0%

45,62011.7%+80.3%

Total Number ofMembers

360,848100.0%

390,918

100.0%+8.3%

Number of members in the fitness and school divisions include members of directly managed facilities in Japan
Other schools include school-based fitness programs
Including those who have put their membership on freeze

10Number of New Members(Number of Members)
50,00045,00040,00035,00030,00025,00020,00015,00010,000
5,000
0
1Q

2Q

3Q

4Q

1Q

FY2021
Total

Fitness division

Only directly managed facilities in Japan

3Q
FY2022

School division

Period of issuance of quasi-emergency measures against COVID-19

*

2Q

4Q

1Q

2Q
FY2023⚫ While the price of fitness membership
was revised in July, the number of new
members generally remained steady11

Trends in Existing Clubs◼ Net sales◼ Fee per membership (cumulative total for Q2)(Millions of yen)

(Yen)
10,00020,000

9,311

9,500

15,000＋12.5%

9,131

＋4.2%
9,000

10,000

8,449
8,500

5,000

8,000

0

7,500

FY2021 2Q
2021年度2Q

FY2022 2Q
2022年度2Q

FY2023 2Q
2023年度2Q◼ Number of members at end of September(Number of Members)

FY2021 2Q

FY2022 2Q◼ Withdrawal rate (cumulative total for Q2)
5.0%

400,000

4.0%
300,000

FY2023 2Q

＋5.2%

＋1.4%

3.1%

2.9%

FY2021 2Q

FY2022 2Q

3.2%

3.0%

200,000
2.0%
100,000

1.0%

0

0.0%
End
of Sept. 2021 End
of Sept. 2022 Endof Sept. 2023
2021年９月末
2022年９月末
2023年９月末

FY2023 2Q

12

Membership Age Breakdown
Fitness division
0%

20%

40%

60%

80%

19.5%

20.4%

16.5%

Sept.
2019

15.3% 13.8%

Sept.
2020

12.8% 12.5%

18.7%

21.0%

Sept.
2021

13.0% 11.8%

17.9%

21.1%

Sept.
2022
Sept.
2023

School division
0%

100%

20%

40%

60%

80%

100%

14.4%

Sept. 201959.9%

18.0% 4.2% 17.9%

17.7%

17.4%

Sept. 2020

58.7%

19.1% 3.8% 18.4%

17.6%

18.6%

Sept. 2021

59.9%

18.3% 3.9%17.9%

Sept. 2022

Under 20’s:
56.6%

74.0%

17.4%

50’s or over:
55.5%
20.7%
17.0%
17.8%

Sept. 2023

Under 20’s:
56.0%

73.7%

14.8% 12.6% 16.6%

50’s or over:
56.0%
20.9%
17.2%
17.9%

17.7%

4.7% 21.6%

Ages 10 to 19

Ages 20 to 39

40’s or over

14.6% 12.5%

Under 20’s

30’s

40’s

50’s

60’s

70’s or over

Under 10

17.4% 4.8% 21.2%

School membership: swimming, tennis, other schools(golf, soccer, fitness school, etc.)133. Major Topics for Second Quarter

14

Sports Club BusinessNew opening of “Sports Club Renaissance Sendai Oroshimachi 24”
The fifth large-scale facility in the Sendai area, equipped with a fitness gym (open 24 hours), studio,
swimming pool, tennis court, and hot bath facilities⚫ Sports Club Renaissance Sendai Oroshimachi 24(Sendai-shi, Miyagi)

15

Sports Club BusinessNew opening of “Sports Club & Spa Renaissance Imazato 24”
Renovated and opened training gyms, swimming pools, baths, and other facilities that were previously
operated by other companies, utilizing our expertise in facility development and facility maintenance<<BEFORE>>⚫ Sports Club & Spa Renaissance Imazato 24(Osaka-shi, Osaka)<<AFTER>>

16

Sports Club Business
Launched “KIDS FIT®” that nurtures children’s motor and non-cognitive skills
In an effort to solve the social problem of children’s disengagement from exercise and to foster a sense of
self-affirmation, we have developed a fitness school that enables children to develop a healthy lifestyle
from an early age through exercise while also nurturing their minds⚫ Exciting lessons using video and music⚫ Combine a variety of movements to enhance basic
exercise skills
17

Nursing Care and Nursing/medical Care Peripheral
Business
Expansion of “Genki Gym,” a daycare service specializing in rehabilitation
Newly opened “Genki Gym Musashi-Seki (franchise)” in August in Nerima-ku, Tokyo.
The number of facilities in the nursing and rehabilitation business reached 43 as of the end of
September<Nursing and Rehabilitation Facilities>
Hokkaido: 1 facility(including franchises)

Akita: 1 facility
Miyagi: 2 facilities
Fukushima: 2 facilities

Okayama: 1 facility

Saitama: 1 facility

Hiroshima: 1 facility

Tokyo: 11 facilities
Kanagawa: 21 facilities⚫ Genki Gym Musashi-Seki (franchise)(Nerima-ku, Tokyo)

Osaka: 1 facility* Exercise Support Center

Kagoshima: 1 facility

18

Nursing Care and Nursing/medical Care Peripheral
Business
Support for cancer survivors to improve their quality of life
Training and certification of qualified exercise instructors and support through online programs to improve
the quality of life of cancer survivors through exercise rehabilitation before, during, and after treatment⚫ Enhance the training and certification program for “Osaka
International Cancer Institute Certified Cancer Exercise
Specialists” who provide exercise guidance based on the
medical details of cancer and the needs of cancer patients.
Began placement at Renaissance sports clubs and Genki
Gyms nationwide⚫ Launched “Cancer Survivorship Support
Plan,” a new pricing plan for cancer
survivors for “RENAISSANCE Online
Livestream,” an online lesson streaming
service19

Health Promotion Business for Companies and
Health Insurance Associations
Growth of online lesson streaming services
Expanded health promotion support for companies’ customers and employees utilizing our “RENAISSANCE
Online Livestream” online lesson streaming service<Target of Online Lessons>
Health promotion of Renaissancemembers and general members
Health promotion of employees andinsurers of companies and healthinsurance associations

Support for health services provided bycompanies to their customers

20Development and Production of Health Promotion
Programs and Original Contents
Health promotion support for companies and their customers
Provide original programs for companies engaged in Kenkokeiei* (Health and Productivity Management),
utilizing our expertise in exercise and health promotion, and development of original exercises to create
opportunities for health promotion for company employees and customers⚫ Providing a “Fall Accident Prevention
Program” aimed at preventing
workplace accidents which are
increasing year by year

⚫ Consulted by Square Enix Co., Ltd. andcooperated in the production of “Eorzean
Aetherobics” based on “Final Fantasy XIV(FF14).”*“Kenkokeiei (Health and Productivity Management)” is a registered trademark of Nonprofit Organization Kenkokeiei

21

Health Promotion Business for Local Communities
and Municipalities
Expand collaboration with local governments to resolve social issues faced by local residents
and businesses in the region
Utilize Renaissance’s expertise and resources to solve social issues through collaboration with local
governments and local businesses⚫ Signed a trilateral Memorandum ofUnderstanding with Obu-shi and Toyota
Systems Corporation, concerning the “Sleep
Improvement Project Targeting the Working
Generation of Obu-shi,” a health promotion
initiative launched by Obu-shi, Aichi⚫ Signed a “Comprehensive Collaboration
Agreement on Health Promotion, etc.” with
Zama-shi, Kanagawa.
Set “Sports Club Renaissance Aeon Mall Zama24” (opened in October 2023) as a base forhealth promotion support
22

Health Promotion Business for Local Communities
and Municipalities
Actively offering swimming lessons at elementary and junior high schools on consignment
To ensure that children have opportunities to learn swimming, we provide support for swimming lessons incooperation with neighborhoods of our sports clubs, local governments that dispatch community
revitalization entrepreneurs, and schools. The number of contracts increased 1.5 times from the previous
year to 25 municipalities and 50 schools<<Issues faced by schools>>⚫ Improvement of children’s swimming
ability and physical fitness⚫ Aging pools and increased
maintenance costs⚫ Fewer number of classes due toextreme heat and heavy rain
⚫ Teachers’ burden related to classpreparation, etc.

Aiming to resolve issues by utilizing the know-how and resourcesof our approximately 100 swimming schools nationwide

23

Initiatives with Tokyu Sports Oasis Corporation
Strong performance in sports clubs and home fitness business (product sales)
Performance is improving as a result of initiatives with Tokyu Sports Oasis Corporation, which became an
equity-method affiliate in the fiscal year under review<<Status of Initiatives>>
Company Name
Address
Representative

Tokyu Sports Oasis Corporation
Ryogoku City Core, 4th floor, 2-10-14 Ryogoku,
Sumida-ku, Tokyo
Michiyasu Yamagishi, Representative Director,
President and CEO

Three employees from Renaissance joined
management in April

Established a new management structure

Share Capital

100 million yen

EstablishedMarch 31, 2023

Number of Outstanding
Shares400

Initiatives and collaborations to improve

Fiscal Year End

Marchadded value of services

Major Shareholders and Tokyu Land Corporation : 60%
Shareholding Ratio
Renaissance Inc.
: 40%

24

Human Capital Management Initiatives
Increased salary levels for employees and part-time staff
We raised the salary level by an average of 5% in July in order to stabilize the lives of employees andenable them continue performing to their ability in the face of recent price hikes<<Renaissance’s Approach to Human Capital Management>>

Employees are the key starting point for therealization of our corporate philosophy

Corporate Philosophy
RENAISSANCE, “a company for creating purpose inlife (ikigai in Japanese)”, propose a healthy andcomfortable lifestyle to our guests.

Promotion ofhealthmanagement

Promotionof DE&I

Review of
workingstyles, etc.

Outline of Salary Level Increase
TargetEmployeePart-time staff working at sports clubs

Implementation Items

Increase monthly salary

Increase hourly wages

Details of Revision

Average salary increase of 5%(depending on job description and rank)

Increase of 30 yen

From July 2023 payment

From November 2023 payment

Timing of Implementation25

4. Store Openings and Closings26New Store Openings and Closings◼ New store openings
Opening date

Facility name

AddressType

April 2023

Takeo Civic Baseball Stadium (and 26 other facilities)

Designated management

April 2023

Five Ozu-machi athletic park facilities (and eight others)

April 2023

BEACHTOWN OND PARK

Takeo-shi, Saga
Ozu-machi, Kikuchi-gun,
Kumamoto
Takeo-shi, Saga

Outdoor fitness (entrusted management)

May 2023

Outdoor Fitness Wakayama

Wakayama-shi, Wakayama

Outdoor fitness (entrusted management)

May 2023

Outdoor Fitness Edogawa

Edogawa-ku, Tokyo

Outdoor fitness (entrusted management)

July 2023

Sports Club & Spa Renaissance Imazato 24

Osaka-shi, Osaka

Sports club

July 2023

Sports Club Renaissance Sendai Oroshimachi 24

Sendai-shi, Miyagi

August 2023

Renaissance Genki Gym Musashi-Seki

Nerima-ku, Tokyo

Sports clubNursing care andrehabilitation (FC)

Designated management◼ Store closings and termination of entrusted management
Time of store
closure /termination ofmanagement
contract

Facility name

AddressType

Okegawa-shi, Saitama

Outdoor fitness (directly managed)

End of April 2023

Community Park Okegawa

End of June 2023

Sports Club Renaissance Sagami-Ono

Sagamihara-shi, Kanagawa

Sports club

End of July 2023

Outdoor Fitness Wakayama

Wakayama-shi, Wakayama

Outdoor fitness (entrusted management)27

Number of Facilities (as of September 30, 2023)
Group total of

229 facilities

Hokkaido

Domestic

End of
September 2023

RenaissanceOverseas

BEACH TOWN

Renaissance
Vietnam

Sports club facilities

105

Entrusted management facilities
Total sports club facilities
Total studio facilities
Rehabilitation facilities(directly managed)
Rehabilitation facilities (FC)Total rehabilitation facilities
Outdoor fitness facilities
Entrusted management facilities
Total outdoor fitness facilities

62
167
2

Subtotal

227

32
11
43
4
11
15
2

Sports club facilities
Total sports club facilities

2

Subtotal
Total

2
229

Number of facilities: 4

TohokuNumber of facilities: 19
Chubu/Hokuriku

Number of facilities: 9
Chugoku/Shikoku

Number of facilities: 15

Kanto

Number of facilities: 103
Kinki

Number of facilities: 21

VietnamKyushu/Okinawa

Number of facilities: 56

2 overseas facilities

227 domestic facilities28

5. Initiatives for the Second Halfof the Fiscal Year

29

Creating Synergies Between Businesses
New home nursing station “Renaissance Rehabilitation Station Fujimidai” to open in November
Our first initiative to set up a home nursing station inside a sports club.
Sports clubs and home nursing stations work together to improve community health in terms of both
exercise and nursing care<<Home-nursing station>>⚫ Opened in “Sports Club Renaissance Fujimidai 24”
30

Initiatives of BEACH TOWN CORPORATION
Participated in a mixed-use development near Seiseki Sakuragaoka Station on the Keio Line
Produced a membership outdoor fitness facility in Seiseki Sakuragaoka as a business partner of Keio
Corporation. Opened as “RIVER PARK Seiseki-Sakuragaoka” in October

31

New Store Openings and Entrusted Management
Scheduled for Third Quarter and Beyond◼ Scheduled to be newly opened
Opening date

Facility name

Address

Type

October 2023

Kikuyo-machi,
Sports Club Renaissance Kumamoto Hikari no Mori 24
Kikuchi-gun,
Kumamoto
Sports Club Renaissance Aeon Mall Zama 24
Zama-shi, Kanagawa

October 2023

RIVER PARK Seiseki Sakuragaoka

Tama-shi, Tokyo

Outdoor fitness(entrusted management)

November 2023

Renaissance Rehabilitation Station Fujimidai

Nerima-ku, Tokyo

Nursing Care andRehabilitation

October 2023

⚫ Sports Club Renaissance
Kumamoto Hikari no Mori 24⚫ Sports Club Renaissance
Aeon Mall Zama 24

Sports club

Sports club32

Expansion of Number of Locations Through M&A andBusiness/Facility Succession
Tokyu Sports Oasis to become a consolidated subsidiary
The Company has decided to acquire all of the shares of Tokyu Sports Oasis Inc. held by Tokyu Land
Corporation at the end of March 2024<<As of November 13, 2023>><<As of March 31, 2024 (planned) >>Tokyu Land Corporation

RENAISSANCE
INCORPORATEDRENAISSANCE INCORPORATED

60.0%

40.0%

100.0%

Tokyu Sports Oasis Inc.

Tokyu Sports Oasis Inc.

Status: Equity method affiliate

Status: Consolidated subsidiary33

Expansion of Number of Locations Through M&A andBusiness/Facility Succession
We see many opportunities for synergies, such as strengthening our sales and project development
capabilities, by bringing together the strengths of the two companies, which are close in directionality interms of our corporate philosophies

Direction tohead in

Advantages inthedevelopment ofsports clubs

Strengths

Support the wellbeing of modern people, whose
lifestyles differ from one another, by helping themto “be active and live healthy and vigorously every
day, throughout their lives”

SimilarWith the long-term vision of being a “health solution company
that enriches the age of the 100-year life span,” we aim to
help people in all stages of their lives stay healthy and fulfilled
in mind, body, and spirit with a purpose in life (ikigai inJapanese)

Scale benefits for both companies by becoming the largest corporate group in the fitness industry, with a
combined total of approximately 140 directly managed sports clubs in JapanStore development centered on theTokyo metropolitan area and central
Kinki region

Complementary● Development of home fitness products● Mail order and e-commerce of home fitness
products
Complementary● Digital health design utilizing apps such as“WEBGYM” and “weltag”

Store development centered on residential
locations in the suburbs of the Tokyo
metropolitan area and core regional cities● Operational know-how and facility management ofsports clubs● School business that company has been engaged insince its establishment● Extensive business development in areas of nursing
care and nursing medical care, B2B domains, B2G
domains, etc.

34

Expansion of Number of Locations Through M&A
and Business/Facility Succession
Position business succession and facility succession as a key strategy for new store openings
Formulate store opening strategies in light of recent changes in the business environment
Decided to take over “KSC wellness Fitness Club Kanamachi and Kanamachi Swimming Club” in March
2024<<Outline of the Business Acquisition>>(1) Counterparty

Ryoshi Co., Ltd.

(2) Name of Facility

KSC wellness Fitness Club Kanamachi and Kanamachi
Swimming Club

(3) Address

1-1-1 Higashikanamachi, Katsushika-ku, Tokyo(4) Project

Fitness club, swimming school(5) Facility Structure

Gym, studio (3), swimming pool (25 × 7 m, 25 × 5 m)
Lockers, hot tubs, water baths, saunas, bicycle parking(approximately 260 spaces), etc.

(6) Acquisition Date
(Scheduled)

March 28, 2024

Through this acquisition, aim for KSC
Wellness, which has been the symbolof the community and has engaged incommunity-based business activities
over a long period of time, willdevelop continuously as a healthsolution base35

6. Outlook for Fiscal YearEnding March 31, 2024

36

Forecast of Consolidated Results and Dividends for
Fiscal Year Ending March 31, 2024
Taking into account the impact of the consolidation of Tokyu Sports Oasis at the end of the current fiscal
year and the effect of foreign exchange rates, etc., the consolidated earnings forecast for the full year is asfollows(Millions of yen)
Fiscal year ending
March 31, 2024
(Forecast before
revision)

Net sales

Fiscal year ending
Difference between
March 31, 2024
the initial forecast and(Forecast after revision) the revised forecast

44,00044,000Operating income

900

1,000

Ordinary income

350

350

-

311

100

100

-

(1,141)

Net income attributableto owners of the parent
company
Basic earnings per
share (yen)Dividend per share (yen)Operating income to net
sales

5.29
8.0
(Interim 3.0/
Fiscal year end 5.0)

2.0%

5.29
8.0
(Interim 3.0/
Fiscal year end 5.0)

2.3%

-

Fiscal year ended
March 31, 2023
(Actual)+11.1%+100

40,760680

Year-on-Year
Increase/decrease+7.9%+3,239+47.0%+319+12.4%+38+1,241(60.44)8.0(Interim 4.0/
Fiscal year end 4.0)

1.7%

37

7. Medium- to Long-Term Direction

38

Long-Term Vision
Health solution company that enriches the age of the 100-year life span

39

Our Key Social Challenges and Growth Opportunities
Social changes and major social issues

Our view of growth opportunities

Revealing
health issues

Due to changes in the social context, healthconcerns and lifestyle-related diseases are
increasing in all generations, and social security
costs are also going up

Realization of a society in which all generations
can live healthy and comfortable lives throughenjoyable physical activity

Discrepancy
between average
life expectancy
and healthy life
expectancy

Although life expectancy is among the highest in
the world, healthy life expectancy is about nine
years shorter for men and about 12 years shorter
for women, leaving many people with healthconcerns and anxieties

Achieving a “healthy and long-lived society” fullof health and vitality through exercise andinteraction with others

Lack ofrehabilitationand otherservices

While the number of people who need assistanceto live independently is increasing, the supply of
personalized services (solutions) is lacking

Realization of a society in which everyone, eventhose with illnesses or those who need support
such as nursing care, can live a life and lead alife that is uniquely their own

Decline oflocal
communities

Due to the increasing number of people living
alone or in nuclear families, there are fewer
opportunities to participate in the community andmore people with physical and mental issues

Building a community around “health”
Realization of local communities where people
can live actively

We will contribute to solving social issues as a “health solution company that enriches the age of the 100-year life span”

40Business Growth Through Collaboration
Among Our Company’s Business Domains
Expanding our business domain by linking the various types of know-how acquired through sports clubmanagement to other markets
We will continue to combine our expertise in social issues related to health to solve these issues and achieve
growthOur Business Domain and Future Prospects
Customer contact

Store-based services

Non-store-based services

Business domain

Current focus areas
Fitness/
schooldomainIncrease added value andexpand business in the fitness/school domain

Medium- to long-term focus areas
Healthcarerelated
domain[Healthcare-related domain alreadyaddressed by our Company]●Nursing care and nursing/medical care

Strengthen resources forhealthcare-related domain●Health promotion business for companies
and health insurance associations

New business challenges●Health promotion business for local
communities and municipalities

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Promotion of M&A
M&A is also positioned as an important strategy for business growth, with plans to acquire 100% of theshares of Tokyu Sports Oasis and to take over the business of KSC wellness Fitness Club Kanamachi and
Kanamachi Swimming Club in fiscal 2024<<Number of directly managed facilities by our Group in Japan>>

Tokyu Sports Oasis Facilities
Number of facilities acquired
through M&A and businesssuccession
KSC wellness
Fitness Club Kanamachi
and Kanamachi Swimming
Club

Promote amicable M&Atransactions originated by
employees and lead that to
drawing out of thestrengths of both parties■Company store ■Rehabilitation facility ■Studio ■Merge and Business succession ■Outdoor fitness ■Oasis

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Achieving Medium- to Long-Term Growth
Aim to achieve record profits over the next five years by “creating purpose in life (ikigai inJapanese) ”and making social contributions to living healthy[FY2029] 50th anniversary of establishment
Contribute to a Well-Being society as a health solution company[FY2027]
Aim to achieve record profits[FY2025] [FY2026]
Resume sports club openings and allocate management resources
according to new scenarios[FY2024]
The addition of Tokyu Sports Oasis and KSC wellness Fitness Club
Kanamachi and Kanamachi Swimming Club will redefine the value of
integrated sports clubs and increase the contribution of healthcarerelated businesses to overall performance[FY2023]
Reinvest funds from sports club price revision into future growthareas, preparing for earnings recovery
Identify social issues to be addressed by our Company.

43

Expansion of health solution bases.
With the addition of Tokyu Sports Oasis and KSC wellness Fitness Club Kanamachi and
Kanamachi Swimming Club to the Group in fiscal 2024, we will become the largest corporategroup in the fitness industry in terms of net sales

Renaissance
Renaissance Vietnam,
BEACH TOWN+

Tokyu Sports Oasis+

KSC wellness
Fitness Club Kanamachi
Kanamachi Swimming Club

Become Japan’s leading health solution
company with a focus on sports clubs
44

Toward the Realization of a Health Solution Company
Revised target based on growth in business scale through M&A, etc.

Aim to achieve net sales of 75 billion yen and record-high operating
income of over 5.5 billion yen in fiscal 2027
(Millions of yen)

Net sales image(Millions of yen)

80,0006,000

70,0005,000

60,0004,000

50,0003,000

40,0002,000

30,0001,000

20,0000

0
FY2022FY2023FY2024FY2025FY2026FY2027

Operating income image

FY2022 FY2023 FY2024 FY2025 FY2026 FY2027

We plan to announce the Renaissance long-term vision and medium-term management plan at
the time of the announcement of our full-year financial results (scheduled for May 2024)45

We at Renaissance will continue to propose healthy andcomfortable lifestyles to our customers as a “company
for creating purpose in life (ikigai in Japanese)”

RENAISSANCE INCORPORATED
Corporate Planning Department[Address]

2-10-14 Ryogoku, Sumida-ku, Tokyo[E-mail]

ml_pr@s-renaissance.co.jp[URL]

https://www.s-renaissance.co.jp/

This presentation material contains projections based on future assumptions, outlooks and plans as of November 10, 2023.
Actual results may differ from these forecasts due to risks and uncertainties associated with the global economy, currency
fluctuations, competitive conditions, and other factors.

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