Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

February 9, 2024

Consolidated Financial Results
for the Third Quarter of Fiscal Year Ending March 31, 2024
(Japanese GAAP)

Company Name: Renaissance Inc.
Listing:
Tokyo Stock Exchange
Securities Code: 2378
URL:
https://www.s-renaissance.co.jp/
Representative:
Toshiharu Okamoto, Representative Director, President and Corporate Officer
Inquiries:
Yoshitsugu Anzawa, Director, Executive Corporate Officer, Chief Financial Officer
Telephone:+81-3-5600-7811
Scheduled date to file quarterly securities report:
February 13, 2024
Scheduled date to commence dividend payments:
Preparation of supplementary materials on quarterly financial results: No
Holding of quarterly financial results briefing:
No(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2024
(April 1, 2023, to December 31, 2023)(1) Consolidated operating results (YTD)(Percentages indicate year-on-year changes)

Net sales

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022
Note: Comprehensive income

Net income attributableto owners of parent
company

Ordinary income

million yen%

million yen%

million yen%

million yen%

32,422

7.0

1,055

111.9

862

276.3

614

―

30,312

10.2

498(31.4)

229(51.1)

12(97.4)

Nine months ended December 31, 2023
Nine months ended December 31, 2022

586 million yen(26) million yen

Basic earnings per share

Diluted earnings per share

yen

yen

31.75

29.70

0.67

―

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022
Note:

Operating income[ - %][ - %]

Diluted earnings per share for the third quarter of the fiscal year ended March 31, 2023, is not shown because there were no
dilutive shares.

(2) Consolidated financial position
Total assets
million yen

Net assets

Equity-to-asset ratio

million yen%

As of December 31, 2023

44,462

11,431

25.7

As of March 31, 2023

42,272

10,991

26.0

Reference:

EquityAs of December 31, 2023
As of March 31, 2023

11,420 million yen
10,979 million yen

2. Cash Dividends
Annual dividend
End of firstquarter

End of second
quarter

End of third
quarter

End of term

Total

yen

yen

yen

yen

yen

Fiscal year ended March 31, 2023

―

4.0

―

4.0

8.0

Fiscal year ending March 31, 2024

―

3.0

―
7.0

10.0

Fiscal year ending March 31, 2024
(forecast)

Note:

Revisions to the most recently announced dividend forecast: Yes
For details, please refer to the “Notice of Revision (Dividend Increase) of Full-Year Consolidated Earnings Forecast andDividend Forecast” released today. The above “Cash Dividends” refers to the status of dividends related to common stock.
Please refer to “Dividends on class shares” below for the status of dividends on class shares (unlisted) issued by theCompany with different rights from those of common stock.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2023, to March 31, 2024)

Net sales

Full Year
Note:

Operating income

million yen%

44,000

7.9

million yen%(Percentages indicate year-on-year changes)
Net income
attributable to
Net income per
Ordinary income
owners of parent
share
company
million yen

1,200 76.4%

million yen%

yen

900 189.1

650

―

34.41

Revisions to the most recently announced earnings forecast: Yes
For details, please refer to the “Notice of Revision (Dividend Increase) of Full-Year Consolidated Earnings Forecast andDividend Forecast” released today.

* Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatementi)
Changes in accounting policies due to revisions to accounting standards and other regulations: Noneii) Changes in accounting policies due to other reasons: Noneiii) Changes in accounting estimates: Noneiv) Restatement: None
(4) Number of issued shares (common shares)i)ii)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

21,379,000 shares

As of March 31, 2023

21,379,000 shares

Number of treasury shares at the end of the period
As of December 31, 2023

2,490,706 shares

As of March 31, 2023

2,490,706 sharesiii) Average number of shares outstanding during the period (YTD)
Nine months ended December 31, 2023

18,888,294 shares

Nine months ended December 31, 2022

18,888,294 shares

* Quarterly financial results are exempt from an audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
The earnings forecasts and other forward-looking statements in this document are based on information
available to the Company and certain assumptions that the Company considers reasonable. Actual financial
results may differ from the forecasts due to various factors. Please refer to “1. Qualitative Information on
Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2024” on page 2 of the Summary of
Financial Results (Attachments) for the assumptions used in forecasting business results and precautions
regarding the use of the forecasts.
(Reference) Dividends on class shares
Breakdown of dividends per share related to class shares with different rights from those of common stock is as follows:
Annual dividend
End of first quarter
Class A SharesFiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024
(forecast)(Note)End of second
quarter

End of third quarterEnd of term

Total

yen

yen

yen

yen

yen

―

―

―

1.57

1.57

―

4.78

―
4.78

9.56

2,092,000 Class A shares were issued on January 31, 2023.

〇

Table of Contents of Attachments
1.

Qualitative Information on Financial Results for the Third Quarter of Fiscal Year Ending
March 31, 2024 ............................................................................................................................................ 2(1) Description of Operating Results ......................................................................................................... 2(2) Description of Financial Position ......................................................................................................... 4(3) Description of Consolidated Earnings Forecasts and Other Forward-Looking Information................ 42.

Consolidated Quarterly Financial Statements and Primary Notes ............................................................... 5(1) Consolidated quarterly balance sheet ................................................................................................... 5(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income ........................................................................................................................ 7
Consolidated quarterly statement of income ........................................................................................ 7
Nine months ended December 31, 2023 ......................................................................................... 7
Consolidated quarterly statement of comprehensive income ............................................................... 8
Nine months ended December 31, 2023 ......................................................................................... 8(3) Notes to Consolidated Quarterly Financial Statements ........................................................................ 8(Notes on Going Concern Assumption) ............................................................................................... 8(Notes on Significant Changes in the Amount of Shareholders’ Equity) ............................................. 8

- 1 -

1.

(1)

Qualitative Information on Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2024
Description of Operating Results

During the nine months of the fiscal year under review (April 1, 2023 to December 31, 2023), despite the number of new
members of sports clubs remaining stagnant, net sales were close to the expected level due to the opening of new integrated sports
clubs and the implementation of price revisions for junior school members in October. Moreover, costs were significantly lower
than planned as a result of reduced utility costs due to company-wide energy conservation measures and government projects tomitigate drastic changes in electricity and gas prices. As a result, for the nine months of the fiscal year under review, net sales were
32,422 million yen (up 7.0% year-on-year), operating income came to 1,055 million yen (up 111.9% year-on-year), ordinary
income posted 862 million yen (up 276.3% year-on-year), and net income attributable to owners of parent company was 614
million yen (up 602 million yen year-on-year).
During the nine months of the fiscal year under review, the Japanese economy showed a moderate recovery trend with thenormalization of socioeconomic activities. On the other hand, the outlook remains uncertain with some weakness seen in therecovery of personal consumption due to fluctuations in the foreign exchange markets, soaring raw material prices, and rising prices.
In the fitness industry, due to the emergence of health issues associated with lifestyle changes, sports clubs and other health centers
are increasingly expected to play a role as a community for maintaining and improving basic physical fitness and socializing.
The Renaissance group has the corporate philosophy of a “company for creating purpose in life (ikigai in Japanese),” and its longterm vision is a “health solution company that enriches the age of the 100-year life span.” Based on these, it is working to realize ahealthy and long-lived society and resolve local social issues. It will do so through the maintenance and promotion of good health toenable people to work throughout their lifetime, and the “shift from treatment to prevention” initiatives that will help reduce social
security expenses such as medical expenses.
In the sports club business, we actively carried out a company-wide review of the quality of our customer service, revised ourtraining methods, and invested in facilities at existing stores to improve customer satisfaction. In addition, we held a number ofstudio programs and events for members of all ages, such as tennis, swimming, and running as an opportunity to improve technicalskills and experience the joys of exercise, which were successful. During the third quarter of the fiscal year under review, in October,
we opened two new integrated sports clubs, Sports Club Renaissance Kumamoto Hikari no Mori 24 (Kikuyo-machi, Kikuchi-gun,
Kumamoto) and Sports Club Renaissance Aeon Mall Zama 24 (Zama-shi, Kanagawa). The number of enrolled members as ofDecember 31, 2023 was 392,081 (including 49,268 online members) (up 5.9% year-on-year). In October, we revised junior school
membership fees in order to cope with various cost increases and to increase added value by securing human resources andcontinually investing in human resources.
In the nursing care and nursing/medical care peripheral business, sales increased 12.2% year-on-year due to steady growth of“Genki Gym,” a rehabilitation-focused day service, and other services. In the nursing care and rehabilitation area, we are working to
improve the quality of life of users through provision and collaboration of multiple services including rehabilitation-focused dayservices, home nursing stations, in-home care support, and child development support/after-school day services. In November, we
opened the new Renaissance Rehabilitation Station Fujimidai in Nerima-ku, Tokyo, our first home nursing station inside a sports club.
At this facility, trainers and nurses from the sports club work together to support the health of the community in terms of both
exercise and nursing.
In addition, as an initiative to support the rehabilitation efforts of cancer survivors, we introduced “Osaka International Cancer
Institute Certified Cancer Specialist Exercise Instructors (hereinafter referred to as “Cancer Specialist Exercise Instructors”)” whoprovide specialized exercise guidance within the sports club at Sports Club & Spa Renaissance Konanchuo 24 starting November.
Going forward, we will expand the placement of Cancer Specialist Exercise Instructors in sports clubs and nursing care andrehabilitation facilities, and aim to solve issues for people who have concerns over their health through collaboration among nursing
care and nursing care/medical care peripheral businesses and sports club business.
In our health promotion business targeting corporations and health insurance associations, we have been promoting our support forcorporate health management initiatives and working to provide new services that will enhance employees’ health literacy without
increasing the workload of corporate personnel in charge. In addition, with Vitality members of Sumitomo Life Insurance Company
increasingly using our online lesson service “RENAISSANCE Online Livestream (hereinafter referred to as “ROL”),” we have
expanded the scope of ROL by co-hosting Daido Life Insurance Company’s activities for the promotion and diffusion of healthmanagement among small and medium-sized enterprises as well as health-related events with other enterprises.
In the health promotion business for local communities and municipalities, we promoted our initiatives in collaboration withmunicipalities to improve local residents’ health. We held more classes than in the previous fiscal year for nursing care prevention
and dementia prevention held in person, due to an increase in requests for them. Furthermore, we concluded a Cooperation
Agreement on Disaster Victim Support in Times of Disaster with Kikuyo-machi, Kikuchi-gun in Kumamoto Prefecture in October.
We are working to strengthen cooperation with municipalities in times of disaster in order to make effective use of our facilities for- 2 -disaster victim support. As of the end of the third quarter of the fiscal year under review, we have concluded cooperation agreementswith 20 municipalities, including those related to disaster prevention.
In Vietnam, the existing sports club business remained strong. The Company’s Hanoi branch has been entrusted with swimming
lessons for a French international school and our swimming coaches have started giving lessons at the swimming pool attached to theschool. We will continue our efforts to improve children's physical fitness, prevent drownings, and promote swimming in Vietnam.
BEACH TOWN Corporation, a consolidated subsidiary, has been involved in planning and proposing projects for the creation ofprosperity in the region through the public-private partnership (PPP) projects for public facilities, the park private financing initiative(Park-PFI), and the partnership with the private sector. In October, the company opened RIVER PARK Seiseki-Sakuragaoka (Tamashi, Tokyo), a members-only outdoor fitness club, as a business partner of Keio Corporation.
Three employees from the Company joined the management at Tokyu Sports Oasis Inc. (hereinafter referred to as “Tokyu Sports
Oasis”), an equity-method affiliate, in April and are working to build a new management structure and increase the added value ofservices. During the nine months of the fiscal year under review, business performance has improved, with profitability in the sports
club business improving and the home fitness business, centered on goods sales, remaining strong.
As to our initiatives with Advantage Advisors, Inc., with which we have a capital business alliance, we have pursued several
projects, including strengthening store development, streamlining company-wide operations, and restructuring our business portfolio.
We will continue to mutually utilize Advantage Advisors’ insight and our know-how to steadily implement various measures toenhance our corporate value over the medium to long term.
Our strategy is to expand the number of sports club facilities through aggressive M&A’s and business succession. As previously
announced, we will acquire all of the shares that Tokyu Land Corporation holds in Tokyu Sports Oasis Inc. on March 31, 2024, andas part of our business and facility succession efforts, on October 2, 2023, we announced the “Notice Regarding Acquisition ofBusiness and Fixed Assets (Beneficial Interests in Trust) of KSC wellness Fitness Club Kanamachi and Kanamachi Swimming
Club.” As a result of these efforts, the Renaissance group is expected to become one of the largest companies in the fitness industry interms of net sales in the fiscal year ending March 2025. Going forward, as a leading company in the fitness industry, we will aim toenhance our corporate value and create “purpose in life” for each and every customer.
During the nine months of the fiscal year under review, we opened new facilities, closed facilities and were commissioned tooperate the facilities listed in the table below. The number of the Renaissance group’s facilities as of December 31, 2023, including
the facilities of BEACH TOWN Corporation, totaled 232: 170 sports clubs (107 directly managed, 61 entrusted and two Renaissance
Vietnam facilities), two studio-type facilities, 44 nursing care and rehabilitation facilities (33 directly managed and 11 franchise), and16 outdoor fitness facilities (four directly managed and 12 entrusted).
Opening Date

Facility Name

Facility Type

April 2023

Takeo Civic Baseball Stadium (and 26 other facilities) (Takeo-shi, Saga)

Designated management

April 2023

Five Ozu-machi athletic park facilities (and eight others) (Ozu-machi,
Kikuchi-gun, Kumamoto)

Designated management

April 2023

BEACHTOWN OND PARK (Takeo-shi, Saga)

May 2023

Outdoor Fitness Wakayama (Wakayama-shi, Wakayama)

May 2023

Outdoor Fitness Edogawa (Edogawa-ku, Tokyo)

July 2023

Sports Club & Spa Renaissance Imazato 24 (Osaka-shi, Osaka)

July 2023

Sports Club Renaissance Sendai Oroshimachi 24 (Sendai-shi, Miyagi)

August 2023
October 2023
October 2023

Renaissance Genki Gym Musashi-Seki (Nerima-ku, Tokyo)
Sports Club Renaissance Kumamoto Hikari no Mori 24(Kikuyo-machi, Kikuchi-gun, Kumamoto)Sports Club Renaissance Aeon Mall Zama 24(Zama-shi, Kanagawa)

October 2023

RIVER PARK Seiseki-Sakuragaoka (Tama-shi, Tokyo)

November 2023

Renaissance Rehabilitation Station Fujimidai (Nerima-ku, Tokyo)- 3 -Outdoor fitness(entrusted)
Outdoor fitness(entrusted)
Outdoor fitness(entrusted)
Sports club
Sports clubNursing care andrehabilitation (FC)Sports club
Sports club
Outdoor fitness(entrusted)
Nursing care andrehabilitation (directly
managed)Time of outlet closure /termination ofmanagement contract

Facility Name

End of April 2023

Community Park Okegawa (Okegawa-shi, Saitama)

End of June 2023

Sports Club Renaissance Sagami-Ono (Sagamihara-shi, Kanagawa)End of July 2023

Outdoor Fitness Wakayama (Wakayama-shi, Wakayama)

Facility Type
Outdoor fitness(directly managed)
Sports club
Outdoor fitness(entrusted)

The Company also plans to open new facilities listed in the table below in the fourth quarter of the fiscal year under review andthereafter.
Opening Date
April 2024

Facility Name
BEACHTOWN Daisen (Daisen-cho, Saihaku-gun, Tottori)

Facility Type
Outdoor fitness(directly managed)

Results by segment are not listed since the sports club operation business is the Group’s only reporting segment.
(2)

Description of Financial Position
Total assets at the end of the third quarter of the fiscal year under review rose by 2,190 million yen from the end of theprevious fiscal year to 44,462 million yen. This was mainly due to a decrease of 1,153 million yen in total current assets
resulting from a drop in cash and deposits, and an increase of 3,349 million yen in total fixed assets, mainly due to a boostof 2,921 million yen in property, plant and equipment, among them an increase in leased assets.
Total liabilities at the end of the third quarter of the fiscal year under review increased 1,749 million yen from the end of
the previous fiscal year to 33,030 million yen. This was mainly due to a decrease of 1,020 million yen in total current
liabilities, resulting from a decline in short-term borrowings, and an increase of 2,770 million yen in non-current liabilities
due to an increase in lease obligations.
Total net assets at the end of the third quarter of the fiscal year under review rose 440 million yen from the end of theprevious fiscal year to 11,431 million yen. This was mainly due to an increase of 469 million yen in retained earnings
mainly due to the posting of net income attributable to owners of parent company of 614 million yen and the payment ofdividends of 145 million yen, and a decrease of 35 million yen in foreign currency translation adjustments, resulting in adecrease of 28 million yen in total accumulated other comprehensive income.

(3)

Description of Consolidated Earnings Forecasts and Other Forward-Looking Information
The consolidated earnings forecast for the fiscal year ending March 31, 2024, has been revised in the full-year
consolidated earnings forecast and dividend forecast announced on November 10, 2023 taking into consideration recent
performance trends. For details, please refer to the “Notice of Revision (Dividend Increase) of Full-Year Consolidated
Earnings Forecast and Dividend Forecast” released today.

- 4 -

2.

(1)

Consolidated Quarterly Financial Statements and Primary Notes
Consolidated quarterly balance sheet(Thousands of yen)

As of March 31, 2023

As of December 31, 2023

AssetsCurrent assets
Cash and deposits

5,520,381

4,845,503

Accounts receivable – trade

1,245,183

1,085,323

234,274

342,928

1,791,069

1,364,628(6,881)(7,418)8,784,027

7,630,965

Buildings and structures, net

5,586,215

6,231,706

Leased assets, net

10,969,552

13,745,551

Other, net

2,990,709

2,490,838

Total property, plant and equipment

19,546,478

22,468,096

461,076

560,383

Investment securities

1,645,137

1,752,337

Leasehold and guarantee deposits

8,814,555

9,421,475

Other2,994,437

2,609,173

Total investments and other assets

13,454,129

13,782,987

33,461,683

36,811,466

27,01820,30442,272,729

44,462,735

Accounts payable – trade54,47958,508

Short-term borrowings

3,000,000

2,000,000

Current portion of long-term borrowings

2,203,084

2,243,084

Income taxes payable

197,429

111,036

Provision for bonuses

684,062

364,907

Asset retirement obligations

13,453

4,111

Other

4,189,421

4,539,451

Total current liabilities

10,341,931

9,321,099

Convertible-bond-type bonds with shareacquisition rights

1,499,988

1,499,988

Long-term borrowings

3,751,721

3,059,408

Lease obligations

11,400,747

14,260,083

Commodity
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment

Intangible fixed assets
Investments and other assets

Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities

Non-current liabilities

Retirement benefit liability

851,520881,340

Asset retirement obligations

1,357,079

1,481,724

Other

2,078,499

2,527,161

Total non-current liabilities

20,939,556

23,709,705

31,281,487

33,030,805

Total liabilities- 5 -(Thousands of yen)
As of March 31, 2023

As of December 31, 2023

Net assets
Shareholders’ equity
Share capital
Capital surplus

3,210,356
5,813,491

3,210,356
5,813,491

Retained earnings
Treasury shares

4,644,051(2,514,753)

5,113,250(2,514,753)

Total shareholders’ equity

11,153,145

11,622,344

4,846

5,914

(145,643)(32,779)(181,178)(26,822)(173,576)(202,087)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 6 -11,673

11,673

10,991,242

11,431,930

42,272,729

44,462,735

(2)Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated quarterly statement of income
Nine months ended December 31, 2023
(Thousands of yen)
Nine Months ended
December 31, 2022

Nine Months ended
December 31, 2023

Net sales

30,312,830

32,422,782

Cost of sales

28,137,724

29,602,579

Gross profit

2,175,105

2,820,202

Selling, general and administrative expenses

1,676,983

1,764,540

498,1211,055,661

Interest income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodCompensation income
Other

6,749
45,331

6,121
36,420―105,661―
37,96060,00049,116

Total non-operating income

90,041

257,320

Interest expenses
Other335,610
23,498423,149
27,787

Total non-operating expenses

359,108

450,937

229,054862,045

Gain on sale of fixed assets

360―

Total extraordinary income

360―

Loss on retirement of non-current assets
Impairment losses

2,695
46,52012,163
2,817

Loss on store closings
Other

3,000
―

―
2,313

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses

Total extraordinary losses

52,215

17,294

Net income before income taxes

177,198

844,751

Income taxes – current

66,20067,684

Income taxes – deferred

101,736

162,362

Total income taxes

167,936

230,047

Net income

9,261

614,704

Net loss attributable to non-controlling interests(3,306)―

Net income attributable to owners of parent company

12,568614,704- 7 -Consolidated quarterly statement of comprehensive income
Nine months ended December 31, 2023
(Thousands of yen)
Nine Months ended
December 31, 2022
ProfitComprehensive income

Nine Months ended
December 31, 2023
9,261

614,704

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(1,439)(40,447)

1,067(35,534)

Remeasurements of defined benefit plans, net of tax

5,708

5,956

(36,178)(28,510)Comprehensive income

Total other comprehensive income(26,916)

586,193(Breakdown)Comprehensive income attributable to owners ofparent company
Comprehensive income attributable to non-controllinginterests(23,609)586,193(3,306)―(3) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.

- 8 -