May 15, 2024

Financial Results for the Three-month Period Ended March 31, 2024
NOVARESE, Inc. [TSE Standard Market: 9160]

1Company Profile

Corporate name:

NOVARESE, Inc.
Corporate Philosophy

Representative:

Hiroki Ogino, President and CEO

Head office location:

4F, Ginza YOMIKO Building, 1-8-14 Ginza, Chuo-ku, Tokyo

Establishment:

November 1, 2000
In December 2016, NOVARESE, Inc. became a wholly owned
subsidiary of NAP Holdings Inc. In June 2017, NAP Holdings
Inc. merged with the former NOVARESE, with NAP Holdings
Inc. emerging as the surviving entity.

Our Businesses

Bridal business[Wedding Production Division, Dress and Costume Division
and Restaurant Division]
Restaurant business (consolidated)

Share capital

100 million yen (as of December 31, 2023)

Number of employees:

Consolidated: 1,127 /Non-consolidated: 820 (as of December 31, 2023)
December 31

Account closing date

* Effective January 1, 2019, the Restaurant Business was spun off into Broth Dining Inc.

Rock your life
We want to be a company
that provides vitality to society.

NOTABLEVALUABLERENOVATESENSATIONAL
2

Our Businesses▎ We operate guesthouses (wedding facilities) at the core of our business, alongside bridal dress shops andrestaurants, providing a one-stop solution for all bridal needs.

Bridal businessWedding Production
Division
We offer comprehensive
wedding production
services for customers
planning weddings andreceptions. This includes
venue tours, event
coordination, gift selection
and meal planning.

Restaurant business
Bridal businessWedding Production
Division

Restaurant business

4.9%

45.8%

Our dining establishments
offer lunch, dinner andbanquet services.

Consolidated
revenue(Fiscal year ended
December 31, 2023)

18,265
million yen

Bridal business

Dress and Costume
Division
We operate bridal dress
shops nationwide renting
and selling wedding attire.

Bridal businessRestaurant Division

Bridal business
Dress andCostume Division

Bridal businessRestaurant
Division

19.3%

30.0%

In addition to catering
weddings and banquets,
some of our wedding facilities
also operate as restaurants
serving lunch and dinner on
weekdays.

3

Business Model and Key Features▎Uniquely positioned due to the combination of local city x simple and sophisticated designs.
▎Capable of providing high-quality, comprehensive wedding services.

POINT (1)

POINT (2)POINT (3)Unique market
position

In-house
services

Simple and sophisticated design

High profitability due to inhouse services

Best reputation in the industry

Differentiated facility with minimal investment

Maximizing revenue opportunities per wedding

Ranked highly on famous recruitment websites

Regional urban location strategy

Revenue from external sales

Low turnover and high employee
satisfaction

A low-cost operational model in areas with few
competitors

Generating revenue by selling internal services
externally

Environment where talented individuals canthrive in the medium to long term

Humancapital4

CONTENTS
01

02

03

04

Summary of the ThreeMonth Period Ended
March 31, 2024

Outline of the ThreeMonth Period Ended
March 31, 2024

Initiatives for the Fiscal
Year Ending December 31,
2024

Financial Results (IFRS)This document is intended to provide information about the business performance and future business strategies of NOVARESE, Inc. (the “Company”), and it is not intended as a solicitation of investment in securities issued
by the Company.
The data disclosed in this document are based on judgments and information available as of the date of publication. Please note that the forecasts and outlooks discussed in this document contain uncertainties due to thenature of the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

5

CONTENTS
01

02

03

04

Summary of the ThreeMonth Period Ended
March 31, 2024

Outline of the ThreeMonth Period Ended
March 31, 2024

Initiatives for the Fiscal
Year Ending December 31,
2024

Financial Results (IFRS)This document is intended to provide information about the business performance and future business strategies of NOVARESE, Inc. (the “Company”), and it is not intended as a solicitation of investment in securities issued
by the Company.
The data disclosed in this document are based on judgments and information available as of the date of publication. Please note that the forecasts and outlooks discussed in this document contain uncertainties due to thenature of the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

6

Summary of the Three-Month Period Ended March 31, 2024
01 Wedding Production Increase in average guest count● Steady recovery from the COVID-19 pandemicAverage guest count rose 8.5% YoY to 53.5 guests

02 Wedding Production/Dress and CostumeGrowth in average sales per wedding● Increase in wedding food and beverage in the restaurant division due to increase in the number ofguests● Strengthening of sales promotion tools and expansion of costume accessory lineups, etc.
contributed.

03 Restaurant sales are strong.Significant contribution to sales revenue growth● Corporate banquets and regular events at wedding facilities were strong. Sales increase of 94.9%
year on year

● Due to uptick in inbound and banquet demand, segment profit for restaurant-specialized facilities
moved back into the black7

Summary of the Three-Month Period Ended March 31, 2024

Revenue

Operating loss

Loss attributableto owners of the parent

3,696 million yen-333 million yen-259 million yen

YoY+11.0%

YoY comparison +49 million yen

YoY comparison +63 million yen

Vs. plan+0.4%

YoY comparison +59 million yen

YoY comparison +49 million yen

*

*

*

Number of weddings performed

Average guest count

Average sales per wedding

849 weddings

53.5 guests

3,340 thousand yen

YoY
Vs. plan

YoY
Vs. plan

+0.7%
-0.4%

+8.5%
-0.1%

* For the number of weddings, the calculation includes weddings and receptions with a budget of over one million yen, including at the Kiranah Resort Okinawa.
* For the average guest count and average sales per wedding, the calculations exclude the Kiranah Resort Okinawa.

YoY
Vs. plan

+6.8%
+1.5%

8

CONTENTS
01

02

03

04

Summary of the ThreeMonth Period Ended
March 31, 2024

Outline of the ThreeMonth Period Ended
March 31, 2024

Initiatives for the Fiscal
Year Ending December 31,
2024

Financial Results (IFRS)This document is intended to provide information about the business performance and future business strategies of NOVARESE, Inc. (the “Company”), and it is not intended as a solicitation of investment in securities issued
by the Company.
The data disclosed in this document are based on judgments and information available as of the date of publication. Please note that the forecasts and outlooks discussed in this document contain uncertainties due to thenature of the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

9Consolidated Statement of Income▎ Revenue increased and losses shrunk, reflecting a recovery in average guest count and average sales per wedding▎ We executed advertising and promotional strategies to acquire new customers as an upfront investment.

(Million yen)

FY12/2023
1Q

FY12/2024
1Q

ChangeFY12/2024
Change (%)
1Q YTDplan

Results for the three-month period ended
March 31, 2024 / POINT
Vs. plan Revenue
 Increase in average number of guests and averagesales per wedding Increase in banquets and general dining at wedding
facilities

Revenue

3,330

3,696

+366

+11.0%

3,680

+0.4%

Gross profit

1,691

1,948

+257

+15.2%

1,869

+4.3%

Selling, general andadministrative expenses

2,071

2,285

+214

+10.3%

2,345

-2.5%

Operating loss

-383

-333

+49

-

-393

-

Operating loss margin-11.5%-9.0%+2.5pt--10.7％-

Loss before incometaxes Selling, general and administrative expenses
 Increased advertising expenses in Q1 due to an

-480

-394

+86

-

-461

-

Loss attributable toowners of the parent

-323

-259

+63

-

-309

-

(For reference) EBITDA*

164

271

+106

+64.8%

199+35.8%

increase in ad placements in social media aimed at
improving customer attraction
 Retention of personnel recruited in the previous fiscal
year has been strong, and personnel expenses
declined vs. forecast expenses due to lower* EBITDA: Operating profit + Depreciation and amortization

 Cost of sales Fixed cost ratio declined year on year due to higher
revenue

expenses for recruitment, etc.
10Operating Profit Variance Analysis (Consolidated)▎ The increases in average guest count, average sales per wedding and revenue from general dining services
absorbed expenses incurred over the period, resulting in a contraction of losses.
▎ Profit growth is expected from the first quarter and beyond, benefitting from upfront investment in sustainablegrowth.
FY12/2024
1Q

FY12/2023
1Q(Million yen)

General dining sales+182 million yen
Generaldining-383+133

Decline in newvenue opening
Other
Restaurant expenses
specialized
facilities

+25

+6

-333

+12
Labor costs-34
Average sales
per wedding

Advertisingexpenses+25-84

Average
Number of guest countweddings
performed+20+1

Increase in depreciation(New stores / existing store
renovations, etc.)-56
Wedding Production Division +6 weddings
Dress and Costume Division -11 weddings

Average number of guests+4.2 guests

Upfront investment for sustainablegrowth going forward

11

Variance Analysis Vs. Plan (Consolidated)▎ While the number of weddings fell short of initial plans, growth in average sales per wedding helped absorb losses.
▎ Upfront investments in human resources made in the previous fiscal year helped reduce personnel expenses(Million yen)

FY12/2024
1Q

FY12/2024
1Q YTD plan

-393

Retention of personnel recruited in the previous fiscal year
has been strong, and personnel expenses declined vs.
forecast expenses due to lower expenses for recruitment, etc.

Average sales
per wedding+42
Number of
weddings
performed-25
Wedding Production Division -3 weddings
Dress and Costume Division -34 weddings

Average guest
count

-1

GeneraldiningRestaurant
specialized
facilities

+11

+2

Reduction inlabor costs

Other

+27

+1

-333

Impact of average sales per wedding +24 million yen
Impact of average sales per guest +18 million yen

12Quarterly Performance Trend (Consolidated)▎ Since weddings are often held in the spring and autumn due to the comfortable weather and large number of public
holidays, Q2 and Q4 account for a large proportion of total revenue and operating profit.
▎ Especially in Q4 when the newly opened venue will be fully operational, significant growth is achieved.
Revenue and Number of Weddings Performed

Operating Profit (Loss) and Operating Margin(fiscal year basis)(fiscal year basis)2023 revenue (million yen)

Number of weddings performed in 2023

2023 operating profit (loss) (million yen)2023 operating margin

2024 revenue (million yen)

Number of weddings performed in 2024

2024 operating profit (loss) (million yen)2024 operating margin(Million yen)

(Weddings)

8,000(Million yen)

(%)

2,000

30

1,546
1,282

849
6,000

958

2,500

23.5%

6,106

weddings

843

20

1,000
13.5%

1,500

4,921

3,696
4,000

1,500

500
3,907

million yen

1,434

0

3,330

500
-383

(500)
2,000

(1,000)

10

663

-333

0

-174

million yen

-500

-4.5%

-9.0%

-11.5%-10(1,500)-1,5000(2,000)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

13

Revenue Trend (Consolidated)▎ Revenue in the first quarter recorded a record high, owing to recoveries in average guest count and average sales
per wedding.

19,576(Million yen)

20,000

1Q

2Q

3Q(Full-year plan)

4Q

18,265

17,40515,00017,222
6,106

5,359

6,025

11,191
10,000

7,334
5,000

4,740

2,741
1,081
486

3,289

4,252

(2Q YTD Plan)

Record
high

4,921
4,881

3,035
1,395

2020

4,131

2,508

3,023

0

2019

8,653

3,907

4,014

2021

2,182
2022

3,330

3,696

2023

2024

14

Overview by Segment (Consolidated)
POINT(Million yen)

Bridal business(Million yen)

Revenue
Segment loss
Segment loss margin

FY12/2023
1Q

FY12/2024
1Q

3,137

3,445

+308

+9.8%

-83

-70

+13

－

-2.7%

-2.0%

+0.6pt－ChangeChange (%)

3,445

3,137

-83
2023

-70
2024

Revenue

Segment loss

Revenue increased by 308 million yen year
on year due to an increase in averagesales per wedding mainly as a result of anincrease in the average guest count, as
well a recovery in demand for banquet andgeneral dining services at wedding venues.
However, notwithstanding the posting of asegment loss of 70 million yen, reflecting
increased fixed costs associated withvenues opened in the previous year, andincreased advertising expenses during theQ1 sales season to improve the ability to
attract customers, the loss improved by 13
million yen from the same period last year.

(Million yen)

Restaurant business(Million yen)

Revenue
Segment profit(loss)
Segment profit margin(loss)

FY12/2023
1Q

FY12/2024
1Q

Change

192

250

+58

Change (%)

POINT

250

+30.2%

192
-0

11

+11

－

-0
-0.3%

4.4%

+4.8pt－2023

Revenue

11

Revenue jumped 58 million yen year on
year while segment profit moved back into
the black. This was partly due to higher
guest counts and increased dining sales
per customer driven by the recovery of
inbound and corporate banquet demand.

2024

Segment profit

15

Consolidated Revenue by Segment▎ Revenue increased in all segments due to an increase in average guest count and recovery of average sales per
wedding.
▎ General dining and the Restaurant Business performed well, driven by growing inbound and banquet demand.

(Million yen)

FY12/2023
1Q

FY12/2024
1Q

ChangeChange (%)

Bridal business

3,137

3,445

+308

+9.8%

Wedding Production Division

1,535

1,578

+43

+2.8%

Dress and Costume Division*

644

675

+31

+4.8%

In-house

576

598

+21

+3.8%

External

68

77

+9

+13.7%

Restaurant Division

958

1,191

+233

+24.4%

Wedding banquet

765

816

+50

+6.7%

General dining

192

375

+182

+94.9%

Restaurant business

192

250

+58

+30.2%* In-house refers to the rental and sale of attire intended for use in weddings and receptions held at our facilities * External refers toattire intended for use at facilities operated by other companies and our affiliated venues.

POINT Wedding Production Division
 Revenue increased as a result of recovery in average
guest count and average sales per wedding.
 Dress and Costume Division
 Despite a decline in the number of customers,
average sales per wedding increased due tosuccessful measures including stepped up efforts to
expand sales of wedding attire accessories.
 Restaurant Division (Bridal Business)
 Revenue from wedding banquet services rose due torecovery in the average guest count.
 Revenue from general dining services increased witha recovery in banquets and the success of hosting
events.
 Restaurant Business Revenue increased, reflecting a recovery in inbounddemand and corporate usage.

16

Results of the Wedding Production Division▎ Revenue increased as a result of recovery in average guest count and average sales per wedding.
▎ The pace of decline in the number of back orders slowed due to growth in the number of new visits and numberof orders received.
POINT
FY12/2023
1Q
Revenue (million yen)

FY12/2024
1Q

YoY change

Change (%)

1,535

1,578

+43

+2.8%

32

34

+2

－

2,763

3,095

+332

+12.0%

843

849

+6

+0.7%

Number of orders received

1,178

1,246

+68

+5.8%

Number of back orders

3,494

3,250

-244

-7.0%

Average guest count

49.3

53.5

+4.2

+8.5%

Average sales per wedding(in thousands of yen)

3,126

3,340

+214

+6.8%

Number of facilities
Number of new visits(couples)NEW

Number of weddings* For the number of facilities, number of weddings, number of orders received, number of back orders, average guest count, and average sales per
wedding, the figures represent the domestic results.
* For the number of weddings, number of orders received, and number of back orders, the calculations include weddings and receptions with abudget of at least one million yen, including at the Kiranah Resort Okinawa.
* For the average guest count and average sales per wedding, the calculations exclude the Kiranah Resort Okinawa.

 Number of new visits and number of orders received
 Orders received for venues opened in 2023 and 2024 arestrong.
 The number of new visits to existing venues surpassed theprevious year, reflecting success in renovations carried out
from 2023 onwards.
 Worked to increase customer traffic through cost-effective
advertising and promotion measures, mainly in regional areas
through commercial placement and social networking services.
 Reorganized the marketing department to improve mobility
 Number of back orders The number of back orders declined in the second half of theprevious fiscal year due to sluggish growth in the number oforders received, but given solid orders in the first quarter, it
improved 2.7 percentage points compared to the end of theprevious fiscal year.
 Average guest count Average guest count recovered from the impact of thepandemic.
 We will work to further increase guest counts with theintroduction of web-based invitations and other innovations.
 Average sales per wedding Increased mainly due to higher average guest count, thedevelopment of complementary products, enhanced
promotional tools and price revisions.

17Trend in the Number of Orders Received▎ The number of wedding orders dropped significantly during the COVID-19 pandemic but are now maintained
above the levels before the pandemic.

(Referrals)

新規受注数
Number of new orders

受注数19年対比
Number of orders comparison vs. 2019
(Compared to the same quarter in FY2019)

1,400

Maintained above the pre-pandemic level

Comparison
vs. Q1 2019
1.4

115%
1,200

107%
100%

116%
110%

111%

110%

112%

110%

103%

1.2

103%

1,000

1

82%

79%
800

69%

0.8

59%

60%
600

Number oforders received

0.6

400

0.4

12%

200

0.2

0

0

Q1

Q2

2019

Q3

Q4

Q1

Q2

2020

Q3

Q4

Q1

Q2

2021

Q3

Q4

Q1

Q2

2022

Q3

Q4

Q1

Q2

2023

Q3

Q4

Q1

2024

18

Average Guest Count Trend▎ The average guest count dropped during the COVID-19 pandemic but is steadily recovering.

Average guest count

70

66

64

65

Year-on-year comparison
Trend in Average Guest Count
in Q1

66
63

Shifted to recovery
track after the
pandemic

60

47

50

44

41
36

40

36

37
124%

30

39

47

50

49

51

51

54

54

41

108% 108% 114%54

49.4% Up
126% 121%

113%

121%
109% 108% 108% 109%

36

94%

30

20

62%
55%

57%

47%

10

2021
1Q

2022
1Q

2023
1Q

2024
1Q

Average guest count for the first

0

Q1

Q2

Q3

2019

Q4

Q1

Q2

Q3

2020

Q4

Q1

Q2

Q3

2021

Q4

Q1

Q2

Q3

2022

Q4

Q1

Q2

Q3

2023

Q4

Q1

quarter grew 49.4% compared to2024

the first quarter of FY2021.

19

Results of the Dress and Costume Division▎ Revenue increased due to growth in average sales per wedding, mainly from stepped up efforts to promote sales of
wedding attire accessories and wedding attire for family members.
FY12/2023
1Q

FY12/2024
1Q

YoYchangeRevenue (million yen)

644

675

+31

Number of facilities

22

24

+2

Number of customers*

944

933

-11

Change
(%)
+4.8%

-1.2%

821

807

-14

-1.7%

External

123

126

+3

+2.4%

Number of orders received

1,263

1,308

+45

+3.6%

Number of back orders

2,985

2,765

-220

-7.4%

682

724

+41

+6.0%

NEW

* In-house refers to the rental and sale of attire intended for use in weddings and receptions held at our facilities
External refers to attire intended for use at facilities operated by other companies and our affiliated venues.

 Number of customers
 In-house: Slightly decreased due to lower order closure rates
affected by intensified competition in some locations.
 External: Exceeded the previous year due to a recovery in referrals
thanks to improved coordination with affiliated venues.

－

In-house

Average sales per wedding(in thousands of yen)

POINT

 Number of orders received
 Increased year on year in line with the increase in the Wedding
Production Division.
 Number of back orders The number of back orders declined in the second half of theprevious fiscal year due to sluggish growth in the number of orders
received, but due to solid orders in the first quarter, the percentagechange improved 3.3 points compared with the previous full year.

 Average sales per wedding Average sales per wedding increase year on year, reflecting
success in expanding the lineup of wedding attire accessories andenhanced promotional efforts.
 Performance surpassed the same period in the previous year due tosuccessful enhanced promotional efforts aimed at wedding attire forparents and family members (e.g., swallow-tailed suits, formal
kimonos).
 We will aim to further increase average sales per wedding by
working to improve orders received for pre-wedding photos.

20Balance Sheet and Cash Flow Statement (Consolidated)(Million yen)

YoYchange(Million yen)2023/4Q

2024/1Q

2,524

3,525

+1,001

1,719

2,653

+933

29,77730,054+277

Property, plant and equipment, net

15,82015,957+136

Goodwill

11,203

11,203

0

71

71

+0

1,630

1,766

+135

Total assets

32,301

33,579+1,278Current liabilities

8,177

17,623+9,446

Trade and other payables

1,427

1,580

+153

Borrowings

3,399

12,989+9,590

982

1,000

+17

15,945

8,038-7,907

Borrowings

9,688

1,705

-7,982Other financial liabilities

4,937

4,992

+54

Total liabilities

24,123

25,661+1,538

Total equity

8,177

7,918

-259

Total liabilities and equity

32,301

33,579+1,278Current assets
Cash and cash equivalents
Non-current assets

Intangible assets, net
Deferred tax assets

Other financial liabilities
Non-current liabilities

YoYchange2023/1Q

2024/1Q

Cash flows from operating activities

-268

-39

+228

Cash flows from investing activities

-763

-391

+371

Cash flows from financing activities

-521

1,357

+1,878-0

7+8Net increase (decrease) in cash and cash
equivalents-1,553933+2,487

Cash and cash equivalents at beginning of period

2,803

1,719

-1,084

Cash and cash equivalents at end of period

1,249

2,653

+1,403

Effect of exchange rate changes on cash andcash equivalents

POINT Cash flows from operating activities

 Depreciation+604 million yen

 Cash flows from investing activities Purchase of property, plant and equipment related to
newly opened venues and existing venues-390 million yen

 Cash flows from financing activities
 Increase in short-term borrowings+975 million yen

 Proceeds from long-term borrowings+723 million yen Repayments of current portion of long-term borrowings-109 million yen Repayments of lease liabilities-231 million yen

21Forecast for the Fiscal Year Ending December 31, 2024
(Consolidated)▎ We expect an increase in revenue and profit due to a recovery in average sales per wedding and our focused
efforts to strengthen the Restaurant Division within the Bridal Business and the Restaurant Business.
(Million yen)

FY12/2024
1Q

FY12/2024
2Q YTD plan

FY12/2023
Change from
2Q

Change (%)

FY12/2024
Full-year plan

FY12/2023
Change from
Full Year

Change (%)

Revenue

3,696

8,653

+402

+4.9%

19,576+1,310+7.2%

Gross profit

1,948

4,656

+117

+2.6%

10,906

+772

+7.1%

Selling, general and administrative
expenses

2,285

4,648

+410

+9.7%

9,287

+665

+7.7%

Operating profit(loss)

-333

92

-186

-66.8%

1,710

+170

+11.1%

Operating profit margin(loss)

-9.0%

1.1%

-2.3pt－8.7%+0.3pt－Profit (loss) before income taxes(loss)

-394

-95

-217

－

1,361

+130

+10.6%

Profit (loss) attributable to owners of
the parent (loss)(loss)

-259

-64

-135

－

943

+0

+0.1%

(For reference) EBITDA*

271

1,283

-131

-9.3%

4,169

+285

+7.3%

Wedding Production Division
Number of weddings

849

2,004

-121

-5.7%

4,558

-71

-1.5%

* EBITDA: Operating profit + Depreciation and amortization

22

CONTENTS
01

02

03

04

Summary of the ThreeMonth Period Ended
March 31, 2024

Outline of the ThreeMonth Period Ended
March 31, 2024

Initiatives for the Fiscal
Year Ending December
31, 2024

Financial Results (IFRS)This document is intended to provide information about the business performance and future business strategies of NOVARESE, Inc. (the “Company”), and it is not intended as a solicitation of investment in securities issued
by the Company.
The data disclosed in this document are based on judgments and information available as of the date of publication. Please note that the forecasts and outlooks discussed in this document contain uncertainties due to thenature of the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

23

Plans for New Openings▎ In spring 2025, our third public-private partnership project will lead to a new wedding facility opening in
Shizuoka City, Shizuoka Prefecture.
Month/year of opening

NEW

Type of facility

Name

Number of
banquet halls/fitting rooms

Guest capacity

Location

February 17, 2024

Dress shop

Novarese Sendai

3―

Aoba-ku, Sendai-shi,
MiyagiScheduled for July
2024

Restaurant

Creative Dining SHARI Nagarekawa―

36 people

Naka-ku, Hiroshima-shi

Scheduled for July
2024

Guest house (wedding facility)

SEIRYUSO

1

130

Aoba-ku, Sendai-shi,
MiyagiScheduled for
September 2024

Guest house (wedding facility)

Amandan Aisle

1

142

Fukushima-shi, Fukushima

Scheduled for
December 2024

Restaurant

Name TBD―

TBD

Naniwa-ku, Osaka-shi
APA Hotel & Resort
In Osaka Namba Ekimae
Tower

Scheduled forSpring 2025

Guest house (wedding facility)(Tentative name) HOMAM(Former McKenzie House)

1

128

Suruga-ku, Shizuoka-shi

Scheduled for 2026

Dress shop

Name TBD

TBD―

Toyama-shi, Toyama

Scheduled for April
2026

Guest house (wedding facility)(Tentative name) Amandan Bridge

1

120

Toyama-shi, Toyama

Number of international
locations

Number of domestic locations

AnnualGuesthouse(Wedding facility)

Dress shop

Restaurant

Photo wedding and spa business

38 (+4)25 (+2)

9 (+2)

1* Including those scheduled to open in 2026. Figures in parentheses are in comparison with December 31, 2023.

73 (+8)24

New Opening (Directly Managed Guesthouse)(Tentative name) HOMAM(National Tangible Cultural Property: Former McKenzie House)

Location: Suruga-ku, Shizuoka-shi, Shizuoka prefecture

Opening: Scheduled for Spring 2025

Facilities: 1 chapel (96 people), 1 banquet hall (128 people)

 A 14-minute drive from JR Shizuoka Station.
 Selected as the preferred candidate as a result of abusiness proposal submitted to Shizuoka City for the project
to use the Former McKenzie House and surrounded lands
owned by the city government of Shizuoka (our third publicprivate partnership project).
 Plans to keep the Spanish style design concept while adding
a new restaurant building and a music hall.
 Ideally situated along the coast with a panoramic view of
Suruga Bay and Mount Fuji.

25

Impact of Renovations on Existing Facilities▎ Through a series of renovations, we aim to improve customer satisfaction and attract more customers and orders.
▎ By applying our unique approach of low investment and high cost-effectiveness, we will maximize the use of ourexisting facilities.

CASE

01

Okayama Monolith

Number of new visits
Number of orders
received

CASE

02

Niigata Monolith+21.4% (YoY)

Number of new visits+11.9% (YoY)+9.7% (YoY)

Number of orders
received+6.3% (YoY)26

Expansion of Restaurant Operations in Wedding Facilities▎ Revenue grew significantly year on year due to a recovery in demand for corporate banquets and the expansion ofregular events▎ We are maintaining similar utilization rates in Q1 and expect to improve earnings further by driving further
measures in Q2.
Increased sales from regular events

Increased sales from general dining
Generaldining

Corporatebanquets

94.9% Up

266.2% Up

166.0% Up

Categoryspecific example

2023/1Q

2024/1Q

2023/1Q

2024/1Q

 Strong orders were received for corporate banquets.
 As the number of personnel assigned to each venue is forthe most part adequate, there is room to handle anincrease in orders.

Stepping up efforts to attract
wealthy visitors to Japan

2023/1Q

2024/1Q

 Sweets events held from February to March 2024 attracted over
5,000 reservations The third project has been underway since
May 3 and reservations have been as strong as previous iterations.

Expansion of the Beer Garden and BBQ Business Improve referrals throughbusiness alliances with travel
agencies

17 venues(from June 1 to September 14)

10
 Work to differentiate from thecompetition by leveraging
wedding venues with designs
that set us apart and renovatedhistorical buildings2023

 Expand the number of venues
and the duration of the events.

2024

 Improve demand captured fromfamily demographics, such as
by setting up event corners
aimed at kids
27

Reinforcement of the Foundation of the Restaurant Business▎ With inbound demand and corporate use on the road to recovery, we aim to open new restaurants and further
increase sales at existing restaurants.
Brand name

Genre
Average sales per
customer for dinner

TOPICS
Current Measures

SHARI

Serafina NEW YORKMITAKI

CRAFT

Japanese

ItalianTeppanyaki

Karaage/Izakaya¥7,000 - 20,000¥6,000¥15,500¥3,500 SHARI AKASAKA, a high unit price, Capture the recovering demand for Corporate clientele showing signs ofyet showing a steady performance
client dinners
recovery Revenue growth from successfully Raise awareness among affluent
 Attract more corporate banquets
capturing inbound demand
foreigners

Net sales: +36.8% (YoY)
FY12/2024
Three-month period Number of customers:
result
+1.1% (YoY)(For reference)
FY12/2023
Full-year result

Net sales: +45.2% (YoY)
Number of customers:+16.4% (YoY) Establish low-cost operations
 Consider a franchise businessNet sales: +21.1% (YoY)
Number of customers:+9.0% (YoY)

Net sales: +42.3% (YoY)
Number of customers:

Net sales: +28.0% (YoY)
Number of customers:+28.7% (YoY)+19.8% (YoY)

Net sales: +38.8% (YoY)
Number of customers:+23.7% (YoY)

Net sales: +13.3% (YoY)
Number of customers:+4.6% (YoY)

Net sales: +35.8% (YoY)
Number of customers:+28.2% (YoY)28

Human Capital Management
01

Successful recruitment of both new graduates and midcareer professionals

02 Entry into the recruiting industry

196
Number of applicants: 6,873 (YoY: 115.9%)
Number of new hires:* Total of FY2024 new graduate hiring results and mid-career hiring results from January to December 2023

 We plan to hire 45 personnel as new graduate hires in FY2025 considering the nationwide
staffing situation
 Stable supply of personnel contributed to the success of new openings and restaurant
operations.

03 Appointed a mother working part-time as a new director

 In March 2024 a woman from the first year of new graduate hires was appointed
as a corporate officer
 She has taken on a part-time managerial role as a mother of one. This
exemplifies our commitment to diversity.

 Leverage our unique expertise and experience to establish a position in anotherindustry.
 Explore new business opportunities beyond bridal services to accelerate the growthof the corporation.

04

Action plan developed based on the Act on Promotion of
Women’s Participation and Advancement in the Workplace By March 31, 2026, increase the percentage of women in managerial positions to
40% (up from 37.6% in 2023) and increase the percentage of eligible men taking
paternity leave to 50% (up from 8% in 2023).

29

Improved communication in IR activities▎ On April 1, we launched our official IR note to improve communication with shareholders and investors.

IR siteNEW

Comprehensively covers all information related to theCompany’s stock.
Allows readers to select and access the information theyneed at their convenience.

Contents
include: Management insights
 Information for individual
investors
 Performance and financial
information
 Shareholder and stock
informationProvides articles on a wide variety of topics in a clear
manner.
Keeps readers up to date on the latest information using apush notification format.

Contents
include:etc.

IR note Company profile New facilities and services
 Press releases
 Timely disclosure of financial
results and commentary

etc.
30

CONTENTS
01

02

03

04

Summary of the ThreeMonth Period Ended
March 31, 2024

Outline of the ThreeMonth Period Ended
March 31, 2024

Initiatives for the Fiscal
Year Ending December 31,
2024

Financial Results (IFRS)This document is intended to provide information about the business performance and future business strategies of NOVARESE, Inc. (the “Company”), and it is not intended as a solicitation of investment in securities issued
by the Company.
The data disclosed in this document are based on judgments and information available as of the date of publication. Please note that the forecasts and outlooks discussed in this document contain uncertainties due to thenature of the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

31

Financial Results (IFRS)FY12/2018

FY12/2019

FY12/2020

FY12/2021

FY12/2022

FY12/2023

FY12/2024(Plan)

Revenue (million yen)

18,38817,405

7,334

11,191

17,222

18,265

19,576

Operating profit (loss)

2,300

2,020

-3,942

822

2,776

1,539

1,710

Operating margin (%)

12.5%

11.6%

-53.7%

7.3%

16.1%

8.4%

8.7%

Net profit (loss) (million yen)

1,074

1,313

-2,948

374

1,657

942

943

Net profit (loss) margin

5.8%

7.5%

-40.2%

3.3%

9.6%

5.2%

4.8%

Number of weddings

3,854

3,829

1,664

3,087

4,660

4,629

4,558

(million yen)32

Rock your life
We want to be a company that provides vitality to society.
For inquiries, please contact: Public Relations Office, NOVARESE, Inc. (ir@novarese.co.jp)