1

CONTENTS
01

02

03

Summary of the
Full-Year Financial
Results for the Fiscal
Year Ended December
31, 2023

Financial Forecasts for
the Fiscal Year Ending
December 31, 2024

Key Initiatives for
the Fiscal Year Ending
December 31, 2024

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 theCompany.
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 the nature of 2
the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

CONTENTS
01

02

03

Summary of the
Full-Year Financial
Results for the Fiscal
Year Ended December
31, 2023

Financial Forecasts for
the Fiscal Year Ending
December 31, 2024

Key Initiatives for
the Fiscal Year Ending
December 31, 2024

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 theCompany.
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 the nature of 3
the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

Summary of the Full-Year Financial Results for the
Fiscal Year Ended December 31, 2023••

Revenue

Operating profit

Profit attributable to ownersof the parent

18,265 million yen

1,539 million yen

942 million yen

YoY +6.1%
Vs. plan +1.3%

YoY -44.5%
Vs. plan +2.0%

YoY -43.1%
Vs. plan +10.1%

Number of weddings *Average guest count *Average sales per wedding *4,629 weddings

51.8 guests

3,170 thousand yen

YoY -0.7%
Vs. plan +0.2%

YoY +9.8%
Vs. plan +0.8%

YoY +1.7%
Vs. plan +0.5%

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.

4

Consolidated Statement of Income▎Although revenue is higher as a result of a recovery in the average guest count and average sales per wedding, the higher costs
could not be absorbed, mainly due to the scaling-back of COVID subsidies and the increase in the number of venues, andconsequently profits are lower.
▎All profit levels increased compared to the forecast announced on November 14, 2023.

Results for the fiscal year ended December 31, 2023
/ POINTFY12/2022
4Q YTDFY12/2023
4Q YTD

ChangeChange (%)

FY12/2023
4Q YTD plan

Revenue

17,222

18,265+1,042+6.1%

18,035+1.3%

Gross profit

10,142

10,184+42+0.4%

10,009+1.7%

Selling, general andadministrative
expenses

7,663

8,621

+957

+12.5%

8,564

+0.7%

Operating profit

2,775

1,539

-1,236-44.5%

1,509

+2.0%

Operating profit
margin

16.1%

8.4%

-7.7pt－

8.4%－

Profit before income
taxes

2,485

1,230

-1,254-50.5%

1,202

+2.3%

Profit attributable toowners of the parent

1,656

942

-714

-43.1%(For reference) EBITDA*

4,874

3,884

-990

-20.3%(Million yen)

*EBITDA: Operating profit + Depreciation and amortization

Announced on
November 2023

Vs. plan

855 +10.1%
3,847

+0.9%

 Revenue
 Increase in average number of guests and averagesales per wedding Increase in banquets and general dining at wedding
facilities
 Increase in restaurant footfall
 Cost of sales
 Higher utilities expense Scaling-back of subsidies for employment
adjustments (Restaurant Business)
 Higher labor costs (Restaurant Business)
 Selling, general and administrative expenses
 Increase in new opening expenses
 Upfront investment for sustainable growth from 2024
onward(refurbishment costs, advertising expenses,
recruitment expenses, labor costs, etc.)
 Scaling-back of subsidies for employment
adjustments (Other businesses)
 Higher fixed costs associated with increase in
number of venues(depreciation and amortization, rent) Impairment losses incurred on fixed assets in somevenues5

Operating Profit Variance Analysis (Consolidated)▎Despite a decrease in operating profit due to the reduction in COVID subsidies and upfront investments for sustainable growth, theeffects of adjustments in sales prices were gradually becoming apparent.

2,775
Subsidies for
employment
adjustment

Upfront investment forsustainable growth going forward

Average number of guests +4.6 guests-292
Payments for cooperation
with temporary closuresand shorter opening hours

Increase in average
guest count +240

-268

+244
Increasein dining

Decrease in
number of
weddings

2,214

Cost ofingredients

General dining sales+337 million yen

Utilities
expenses

Provision forshareholder
benefit program

Listing
expenses

Increase in fixed
costs for new venues(Million yen)(rent, depreciation andamortization, etc.)

Impairment
lossesNew opening Upfront
expenses investment

Upfront(Labor costs) investment(Renovation,
advertising, etc.)

Wedding Production Division-31
Dress and Costume Division-119(Million yen)

FY12/2022
4Q YTDFY12/2023
4Q YTD6

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(fiscal year basis)2022 revenue (million yen)2023 revenue (million yen)
Number of weddings performed in 2022
Number of weddings performed in 2023
1,370

Operating Profit (Loss) and Operating Margin(fiscal year basis)2022 operating profit (loss) (million yen)2022 operating margin

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

COVID-19 subsidy income
28.1%

1,546 weddings

1,599

26.2%

1,107

843

1,282
958

584

13.5%

1,371
6,025 6,106 million yen

23.5%

1,434 million yen
3
1,576

9.2%

275

663

4,881 4,921

381

4,131

-553 -383

3,907

3,330

199

2,182

-174

Q3

Q2

Q1

82
Q4

-4.5%

-11.5%-25.4%
1Q

2Q

3Q

4Q

COVID-19 subsidy income in FY2022 (million yen)

Q1

Q2

Q3

Q4

199

275

82

3

7

Revenue Trend (Consolidated)▎Revenue surpassed the pre-pandemic level thanks to the recovery in the average guest count and the average sales per wedding.

(Million yen)

20,000

1Q

2Q

3Q

4Q

17,40515,00017,222

18,265
6,106

5,359

6,025

11,191
10,000

3,907

4,014
4,252

4,131

7,334
5,000

4,740

2,741

1,081
486
3,289

4,881
3,035

3,023
1,395

0

FY2019FY2020

4,921

2,508

FY2021

2,182
FY20223,330
FY20238

Overview by Segment (Consolidated)
POINT(Million yen)

Bridal business

20,000FY12/2022
4Q YTDFY12/2023
4Q YTD

Revenue

16,582

17,372

+790

+4.8%

Segment profit

3,844

2,756

-1,087-28.3%

Segment profit margin

23.2%

15.9%

-7.3pt－(Million yen)

17,372

16,582

Change Change (%)

10,000
3,844

2,756

0
2022
Revenue

2023
Segment profit

Revenue increased due to the full-year
operation of the venue that opened in
2022, along with the addition of othervenues in April and July of 2023.
However, segment profit is lower due tofactors such as expenses incurred for
new venue openings and higher utilities
expenses, labor costs that reflect theabsence of COVID-19 subsidies (496million yen) such as the subsidies for
employment adjustment received in 2022,
and impairment losses on non-current
assets at some venues.

POINT
Restaurant business(Million yen)

FY12/2022
4Q YTDFY12/2023
4Q YTD

ChangeRevenue

640

892

+252

+39.4%

500

Segment profit

-13

42

+56

－

0

(Million yen)(loss)

Segment profit
marginChange (%)

892

1,000
640

2022

－

4.8%

－

－

-13

2023

42

-500
Revenue

Despite the lack of COVID subsidies,segment profit was positive at 42 million
yen. This was attributed to the full-year
operation of SHARI AKASAKA, which
opened in 2022, the reclassification of
COVID-19 to Class 5, and higher sales atexisting facilities mainly due to anincrease in inbound demand.

Segment profit
9Consolidated Revenue by Segment▎Segment revenue increased in the Wedding Production and Restaurant Divisions compared to 2022, as the average guest count,average sales per wedding, and revenue from general dining services are all trending upwards.
FY12/2022
4Q YTDFY12/2023
4Q YTD

ChangeChange(%)

Bridal business

16,582

17,372

+790

+4.8%

Wedding Production
Division

8,099

8,364

+265

+3.3%

Dress and Costume
Division*

3,639

3,520

-119

-3.3%

In-house

3,188

3,126

-62

-2.0%

External

451

394

-57

-12.7%

Restaurant Division

4,843

5,488

+644

+13.3%

Wedding banquet

4,177

4,484

+306

+7.4%

General dining

665

1,003

+337

+50.7%

Restaurant business

640

892

+252

+39.4%(Million yen)

POINT
 Wedding Production Division
 Revenue increased as a result of recovery inaverage guest count and average sales per
wedding.
 Dress and Costume Division In-house: In 2022, slightly down year on year
because the previous term included wedding
attire used for special photo weddings
implemented as a pandemic countermeasure.
 Restaurant Division (Bridal Business)
 Revenue from wedding banquet services rosedue to recovery in the average guest count.
 Revenue from general dining services
increased with a recovery in banquets and thesuccess of hosting events.
 Restaurant Business Revenue increased due to the full-year
operation of the venue that opened in 2022, as
well as an increase in inbound demand.

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

10Results of the Wedding Production Division▎Average guest count recovered steadily, resulting in an increase in average sales
POINT

per wedding.
FY12/2022
4Q YTDFY12/2023
4Q YTD

8,099

8,364

+265

+3.3%

Number of facilities

32

34

+2

－

Number of weddings

4,660

4,629

-31

-0.7%

Revenue (million yen)

YoYchangeChange(%)

Number of orders
received

4,366

4,323

-43

-1.0%

Number of back orders

3,159

2,853

-306

-9.7%

 Number of orders received
 Slightly down due to intensified competition at someexisting facilities, despite the steady performance atfacilities opened in 2022 and 2023.
 Aimed to attract more customers through renovations,collaborating with IBJ, Inc., offering marriage counselingservices, and increasing advertisements on social media.
 To improve order closure rates, we will use additional
promotional tools to acquire new customers and reinforce
education and training.
 Number of back orders
 Down from 2022 because many weddings that had been
postponed due to COVID-19 took place in 2Q YTD 2023,
coupled with challenges in receiving orders in 2H 2023.
 Average guest count•••

Average guest count

47.2

51.8

+4.6

+9.8%

Average sales per
wedding(in thousands of yen)

3,116

3,170

+54

+1.7%

For the number of facilities, number of weddings, number of orders received, number of back orders, average guest count, andaverage 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 andreceptions with a budget 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.

 Recovered to approx. 80% of the pre-pandemic level (4Q YTD
FY12/2019). The recovery is expected to continue in FY2024.

 Average sales per wedding We aim to increase the average sales per wedding by
developing complementary products, improving sales
promotion tools, reviewing pricing and other efforts.

11

Changes in Orders Received and Number of Weddings▎The number of orders received and weddings performed dropped significantly during the COVID-19 pandemic, but now they aresurpassing the pre-pandemic levels.

Number of weddings performed

Number of new orders

Maintained above
the pre-pandemic level

Number of orders
comparison vs. 2019

1,800

(Compared to the samequarter in FY2019)

1,600

115%
107%

1,400

100%

110%

111%

110%

112%

Number of weddings
performed
1.4

110%

1.2

103%
103%
1

1,200

82%

79%

Number of new orders
0.8

1,000

69%
60%

800

59%
0.6

600
0.4

400
12%

200

0.2

0

0

Q1

Q2

Q3

FY2019

Q4

Q1

Q2

Q3

FY2020

Q4

Q1

Q2

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

4Q

FY202312

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

Average guest countThe number of guests invitedor participating declined during
the pandemic.

Year-on-year comparison

Pandemic is having lessof an impact
66

64

65

66
63

2.4

44

41
36

36

30

37

39

124%
108% 108%

47

47

50

49

51

51

54

41

114%

126% 121%

113%

1.4

121%
109% 108% 108%

2021
0.9

55%

62%

57%
0.4

Q1

Q2

Q3

FY2019

Q4

Q1

Q2

Q3

FY2020

Q4

Q1

Q2

Q3

FY2021

Q4

39.0%

1.9

94%

47%

73.4%

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY2023

4Q

2022

2023

Survey respondents: Individuals
who held their wedding ceremony
and reception from April of theprevious year to March of the yearof the survey.
(e.g., The 2023 data includes events
held from April 2022 to March 2023)
Source: Wedding Awareness Survey
2023(Conducted by Recruit Bridal
Research)13

Results of the Dress and Costume Division▎Revenue decreased due to a reduction in the number of customers. Aimed to increase revenue by adding more affiliated venues andintensifying our efforts to promote complementary products.
POINT

FY12/2022
4Q YTDFY12/2023
4Q YTD

3,639

3,520

-119

22

23

+1

5,370

5,179

-191

-3.6%

In-house

4,561

4,470

-91

-2.0%

External

809

709

-100

-12.4%

Number of orders
received

4,979

4,892

-87

-1.8%

Number of back orders

2,677

Revenue (million yen)

Number of facilities
Number of customers*

2,390

YoY
change-287

Change
(%)
-3.3%

－

-10.7%* In-house refers to the rental and sale of attire intended for use in weddings and receptions held at our facilities, while Externalrefers to attire intended for use at facilities operated by other companies and our affiliated venues.

 Number of customers
 In-house: Slightly down year on year because the previous
year included wedding attire used for special photo weddings
implemented as a pandemic countermeasure.
 External: Down year on year due to a decrease in referrals
from some venues.
 Added 15 affiliated venues during FY2023. There are plans toenhance referral tools and redesign plans for existing venues,
all aimed at increasing the number of referrals.
 Expanded our product range and provided additional
education and training for our staff to increase order closure
rates.

 Number of back orders
 Down from 2022 because many weddings that had been
postponed due to COVID-19 took place in 2Q YTD 2023,
coupled with challenges in receiving orders in Wedding
Production Division in 2H 2023.
 To increase average sales per wedding Expanding and strongly promoting the lineup of wedding attire
accessories.
 Increase orders for pre-wedding photoshoots.
 Promote wedding attire for family members (e.g., swallowtailed suits, formal kimonos).

14

Balance Sheet and Cash Flow Statement (Consolidated)
2022/Q4

2023/Q4

YoYchange

3,522

2,524

-998

2,803

1,719

28,458Property, plant and equipment, net
Goodwill(Million yen)

(Million yen)

YoYchange2022/Q4

2023/Q4

Cash flows from operating activities

4,620

2,996

-1,623-1,084

Cash flows from investing activities-1,340-2,034-694

29,777+1,319Cash flows from financing activities-2,725-2,044+681

14,71815,820+1,102

Effect of exchange rate changes oncash and cash equivalents

2

-1

-3

11,203

11,2030556-1,084-1,640Intangible assets, net

68

71

+3

Net increase (decrease) in cash andcash equivalents

Deferred tax assets

1,506

1,630

+123

Cash and cash equivalents at
beginning of period

2,246

2,803

+556

Total assets

31,98032,301

+320

2,803

1,719

-1,084Current liabilities

17,893

8,177-9,716

Cash and cash equivalents at end of
periodTrade and other payables

1,358

1,427

+68

Borrowings

13,0683,399-9,668

902

982

+80

6,852

15,945+9,093

Borrowings

1,058

9,688

+8,630

Other financial liabilities

4,586

4,937

+351

Total liabilities

24,74624,123-622

Total equity

7,234

8,177

+943

Total liabilities and equity

31,98032,301+320

Current assets

Cash and cash equivalents
Non-current assets

Other financial liabilities
Non-current liabilities

POINT Cash flows from operating activities
 Depreciation+2,344 million yen

 Cash flows from investing activities Purchase of property, plant and equipment related to
newly opened venues and existing venues-1,102 million yen

 Cash flows from financing activities
 Increase in short-term borrowings+58 million yen
 Proceeds from long-term borrowings+11,946 million yen*
 Repayments of current portion of long-term borrowings-13,129 million yen*
 Repayments of lease liabilities-919 million yen* Including an increase/decrease in borrowings due to refinancing

15

CONTENTS
01

02

03

Summary of the
Full-Year Financial
Results for the Fiscal
Year Ended December
31, 2023

Financial Forecasts for
the Fiscal Year Ending
December 31, 2024

Key Initiatives for
the Fiscal Year Ending
December 31, 2024

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 theCompany.
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 the nature of16
the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

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.
2Q (YTD)(Million yen)

FY12/2023
Year-on-Year
ResultFY12/2024
Forecast

Full year

ChangeChange(%)

FY12/2023
ResultFY12/2024
Forecast

Full year
increase/decrease

Change(%)

Revenue

8,251

8,653

+402

+4.9%

18,265

19,576+1,310+7.2%

Gross profit

4,539

4,656

+117

+2.6%

10,184

10,906

+772

+7.1%

Selling, general and administrative
expenses

4,237

4,648

+410

+9.7%

8,621

9,287

+665

+7.7%

Operating profit

279

92

-186

-66.8%

1,539

1,710

+170

+11.1%

Operating profit margin

3.4%

1.1%

-2.3pt

－

8.4%

8.7%

+0.3pt－Profit (loss) before income taxes(loss)

121

-95

-217

－

1,230

1,361

+130

+10.6%

Profit (loss) attributable to owners of
the parent

71

-64

-135

－

942

943

+0

+0.1%

(For reference) EBITDA*

1,414

1,283

-131

-9.3%

3,884

4,169

+285

+7.3%

Wedding Production Division
Number of weddings

2,125

2,004

-121

-5.7%

4,629

4,558

-71

-1.5%

* EBITDA: Operating profit + Depreciation and amortization17

Forecast of Operating Profit Variance Analysis for the Fiscal YearEnding December 31, 2024 (Consolidated)▎Despite increased ad placement and higher fixed costs for new facilities, costs will be absorbed by an increase in average sales per
wedding and general dining sales growth, and operating profit is expected to increase.

POINT
Revenue assumption +577 million yen

Impact ofgeneral dining

Increase in
fixed costs for
new facilities

Wedding Production Division
Number of weddings-71

Impact of number
of weddings(Million yen)

Increase inadvertisingexpenses
Other

Impact of
average sales
per wedding
Average guest count assumption+4.1 guests
Average spend per wedding assumption+253 thousand yen

FY12/2023
4Q YTD (Result)

FY12/2024
4Q YTD (Forecast) Revenue
 Increase in average sales per wedding
An increase in average sales per wedding andrevenue growth are anticipated due to the effect ofprice adjustments made from last year andrecovery in the average guest count.
 Increase in dining
Higher revenue is forecast on the expectation ofincreased restaurant operation and a recovery indemand for wedding banquets since the second
half of last year.
 Expenses
 Advertising expenses
Advertisingexpenses are expected to be higher+
than last year due to the implementation ofadvertising strategies to win more orders in light ofthe competitive environment.
 Fixed costs for new facilities
Fixed costs such as personnel expenses, rent, anddepreciation and amortization are expected toincrease, reflecting the full-year operation offacilities in Miyazaki and Okinawa and the planned
opening of facilities in Sendai and Fukushima.

18

CONTENTS
01

02

03

Summary of the
Full-Year Financial
Results for the Fiscal
Year Ended December
31, 2023

Financial Forecasts for
the Fiscal Year Ending
December 31, 2024

Key Initiatives for
the Fiscal Year Ending
December 31, 2024

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 theCompany.
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 the nature of19
the Group’s businesses, which are strongly influenced by customer preferences, social conditions, economic situations and other factors.

Key Initiatives for the Fiscal Year Ending December 31, 2024
▎ Focus on bolstering the business foundations and improving profitability and human capital value to maximize customer
experience value and achieve sustainable growth01

 Implement dynamic and strategic renovations of existing facilities in parallel with
continuous new openings.

Enhancing therevenue base Extend our restaurant operations to increase the use of our wedding facilities on
weekdays and raise awareness.
 Develop and promote products that meet the diversifying needs of customers.
 Expand advertising through a media mix utilizing social media.
 Expand the business foundation of the Restaurant Business.

02

 Improve meeting efficiency and customer satisfaction with digital transformation
initiatives.

Enhancing profitability

 Optimize staffing in the Bridal Business.
 Promote sales of high-quality, high-value-added products.
 Reduce costs through price adjustments made last year.

03

Maximizing thevalue of human capital Encourage human resources policies that align with management strategies,
reflecting the business’s view of human resources as its most critical asset.
20

Plans for New Openings(Key Initiatives for the Fiscal
Year Ending December 31, 2024)

01 Reinforcement of
01 収益基盤の強化
Revenue
Base▎ This fiscal year, we will open 2 wedding facilities, 1 dress shop, and 2 restaurants to further expand our revenue base.
Month/year of opening

Type of facility

Number of banquet
Guest capacity
halls/fitting rooms

Name

Location

February 17, 2024

Dress shop

Novarese Sendai

3―

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

Restaurant(Tentative name) Kappo SHARI―TBDNaka-ku, Hiroshima-shi

Scheduled for July 2024

Guesthouse(Wedding facility)

SEIRYUSO

1

130

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

Guesthouse(Wedding facility)

Amandan Aisle

1

142

Fukushima-shi,
Fukushima

Scheduled for December 2024

Restaurant

Name TBD―

TBD

Naniwa-ku, Osaka-shi

Scheduled for 2026

Dress shop

Name TBD

TBD―

Toyama-shi, Toyama

1120

Toyama-shi, Toyama

Scheduled for April 2026

Guesthouse(Wedding facility)(Tentative name) Amandan Bridge

Number of domestic locations

Number of international
locations

Guesthouse(Wedding facility)

Dress shop

Restaurant

Photo wedding and spa
business

37 (+3)25 (+2)

9 (+2)

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

Total

72 (+7)21

New Opening in the Fiscal Year Ending December 31, 2024 (1)(Directly Managed Guesthouse)

01 Reinforcement of
Revenue BaseSEIRYUSO

Location: 22-20 Otamayashita, Aoba-ku, Sendai-shi,
Miyagi prefecture

Opening: Scheduled for July 2024

Facilities: 1 chapel (100 people),1 banquet hall (130 people)

 A 10-minute drive from JR Sendai Station.
 Built on the former site of the renowned ryokan Tenryukaku,
beloved by prominent figures in politics, business and theentertainment industry.
 Located on a hill adjacent to Zuihoden, the mausoleum ofDate Masamune, the founder of Sendai domain, offering astunning view of its surroundings of cedar-lined paths,
Aobayama to the west of Sendai plain, and the Hirose Riverrunning through the center of the city.
 A modern interior that incorporates Western touches withJapanese style, using a lot of wood and contemporary
design and materials throughout.
22New Opening in the Fiscal Year Ending December 31, 2024 (2)(Directly Managed Guesthouse)

01 Reinforcement of
Revenue Base

Amandan Aisle

Location: 6-62-1 Nodamachi, Fukushima-shi,
Fukushima prefecture

Opening: Scheduled for September 2024

Facilities: 1 chapel (100 people),1 banquet hall (142 people)

 A 7-minute drive from JR Fukushima Station.
 Located along the Arakawa River, offering a prime location
with a splendid view of the famous cherry blossoms in
Arakawa Sakura-zutsumi Park.
 A single-story building with a modern Japanese concept,
emphasizing vertical and horizontal lines with woodincorporated for the ceilings and walls.

 Entirely glass-walled on the landscape side to takeadvantage of the spectacular views of Mt. Adatara and Mt.
Azuma-Kofuji.

23New Opening (3) (Directly Managed Guesthouse)

01 Reinforcement of
Revenue Base

(Tentative name) Amandan Bridge

Location: Kureha-cho, Toyama-shi, Toyama

Opening: Scheduled for April 2026

Facilities: 1 chapel (100 people),1 banquet hall (120 people)
 11 minutes by car from Toyama Station
 Our corporate group, including our company, has been
selected as the designated installer for the Kureha Hills
Footpath Bridge and Surrounding Plaza Park-Private
Finance Initiative (Park-PFI) of Toyama City.
 The Kureha Hills Footpath Bridge is a suspension bridgethat connects Kureha Mountain Park to Shiroyama Park,
using the 19,680 square meter plaza of the former Toyama
Kanko Hotel site.
 The location offers a variety of scenic pleasures, including
views of Toyama Bay and the Shin-Minato Ohashi Bridge,
as well as the Tateyama Mountain Range from theconnecting bridge.
24

Renovation Plans(Key Initiatives for the Fiscal
Year Ending December 31, 2024)

01 Reinforcement of
Revenue Base▎Through a series of renovations, we aim to improve customer satisfaction and attract more customers and orders.
Category

Facilities

Renovation details

 Okayama Monolith (Okayama) Niigata Monolith (Niigata) Himeji Monolith (Hyogo)
 Amandan Rise (Shizuoka)
 Utsunomiya Monolith (Tochigi)

Mainly for chapel Tenjin Monolith (Fukuoka)

Mainly for banquet

Dress shop

 Ecru Spose Koriyama (Fukushima)

Addition of fitting rooms, dress racks, etc.

Wedding facility

 Former Sakuranomiya Public Hall (Osaka)
 Flairge Dalliance (Shiga) Mitakiso (Hiroshima)

Replacement of furniture, re-carpeting, etc.

Wedding facility

Renovation Result (1) Amandan Sail (Chiba)/2023

Investment per facility

10-30 million yen

Less than 10 million yen

Renovation Result (2) Okayama Monolith (Okayama)/2024

25

Awards (Amandan Blue Aoshima)▎ Amandan Blue Aoshima receives the Miyazaki City Landscape Award, Commercial Facilities Category, Grand Prize. This marks
the 23rd architectural award received by the Company.
M a j o r Aw a r d s
 Opened in April 2023
 The building was recognized for its harmony with Miyazaki
City’s rich natural environment and contribution to theformation of an excellent landscape.
 For the first time in about 10 years (according to Recruit),a new wedding facility has opened in Miyazaki, and orders
have been received steadily since the opening.

2008

IES Illumination Awards (North America
Illuminating Engineering Society)

Kitayama Monolith(Kyoto)2009BEST STORE OF THE YEAR

Takasaki Monolith(Gunma)2010

JCD Design Award 100 selections

Himeji Monolith(Hyogo)2010

Hiroshima Urban Development Design
Award

Mitakiso (Hiroshima)

2011

BELCA Awards (Long Life Category)

Ashiya Monolith(Hyogo)2012

Odor and Scent Environment Association
Award, sponsored by the Ministry of theEnvironment

Former Sakuranomiya
Public Hall (Osaka)

2013

AACA Award

James House (Hyogo)

2014

Japan Federation of Architects & Building
Engineers Associations Award for
Excellence

James House (Hyogo)

2014

Osaka Urban Landscape Architecture Award

Former Sakuranomiya
Public Hall (Osaka)

2014

Good Design Award

Former Sakuranomiya
Public Hall (Osaka)

2016

BELCA Awards (Long Life Category)James House (Hyogo)

26

Expansion of Restaurant Operationsin Wedding Facilities(Key Initiatives for the Fiscal
Year Ending December 31, 2024)

01 Reinforcement of
01 収益基盤の強化
Revenue
Base▎ We will extend our restaurant operations to increase the use of our wedding facilities on weekdays and raise awareness.

Organize Regular Events

Assign Dedicated Corporate Banquet Staff

 Regularly hold photogenic events
that take advantage of our
extraordinary settings.
 Sweets events will be held at 24
stores for 38 days from February
to March 2024, with 4,652
reservations already made (as ofFebruary 9, 2024).

47.7% up

 Start a partnership with travel
agencies specializing in affluent
clients from Europe, North
America and Australia.
 Offer a one-stop service frominquiry to proposal and execution.

1H
2H
Revenue from corporate
banquet sales(FY12/2023)

Host IBJ’s Marriage Hunting Parties
 Our wedding venues are available to host
IBJ’s matchmaking events, which takeplace more than 60,000 times a month.
 Produce and operate marriage hunting
parties for IBJ’s members.

Expand Beer Garden Business

Expand Lunch Operations

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

 Increase the number of facilities
that are open during lunchtime.

11stores
5
2023
2024
Number of facilities
open for lunch

17 venues

10

2023

2024

Number of beer
gardens held

27

Reinforcement of the Foundationof the Restaurant Business(Key Initiatives for the Fiscal
Year Ending December 31, 2024)

01 Reinforcement of
Revenue Base▎With inbound demand and corporate use on the road to recovery, we aim to open new restaurants and further increase sales atexisting restaurants.
Brand name

SHARI

Serafina NEW YORKMITAKI

CRAFT

Genre

Japanese

ItalianTeppanyaki

Karaage/Izakaya

DinnerAveragesales percustomer¥6,000 - 20,000¥6,000¥15,000¥3,500 SHARI Akasaka, which has a high unit
TOPICS
Current
Measuresprice, also performed well, contributing

to branding and quality improvement in
the bridal business

FY12/2023
Full-year
result Corporate clientele showing signs ofrecovery Attract more corporate banquets Capture the recovering demand forclient dinners

 Raise awareness among affluent

 Establish low-cost operations

 Consider a franchise businessforeigners+45.2% (YoY)
Net sales: +38.8% (YoY)
Net sales: +13.3% (YoY)
Net sales: +35.8% (YoY)
Number of customers: +16.4% (YoY) Number of customers: +23.7% (YoY) Number of customers: +4.6% (YoY) Number of customers: +28.2% (YoY)
Net sales:28

Product Development to
Meet Diversifying Needs(Key Initiatives for the Fiscal
Year Ending December 31, 2024)

02 Improvement inProfitability▎We will introduce an online invitation service that enables customers to create invitations online and send them to guests via
social media or email. This is expected to enhance convenience and boost the number of guests.

Online Invitation “Weddingday”
Background behind the introduction

STEP
01

02

Enter your wedding
and after-party
information

Send your online
invitations to yourguests03

 Spread of social networking services
 A growing number of customers who
do not know their guests’ addresses A growing trend among couples toconsider the burden on guests,
including the task of sending reply
postcards

Expected effects

 Ease of use
 Increased convenience for the bride,
groom, and guests
 Allows for a personalized touch Improvement of customer satisfaction

Check guest
attendance29

Human Capital(Key Initiatives for the Fiscal
Year Ending December 31, 2024)▎We will continue to focus on strengthening human capital to expand our competitive advantage, with the belief that growth ofpeople leads to growth of the company.

Human Resources System

Recruitment of New Graduates (Joining in April 2024)
Applicant-to-hireratio: 1,107

63
 Applicant-to-hire ratio: 35
 Number of new graduates:

Evaluation system revised in January 2024
Expand options for employees to achieve their career visions andimprove the linkage between the evaluation and grading systems

19

20

21

22

23

24

to further promote their professional development.

Number of new graduates
Applicant-to-hire ratio

KPIs
 Turnover rate

 Average years ofcontinuous service

Services

26.9%
NOVARESE

12.5%
18 19 20 21 22 23

 Parental leaveacquisition rate

Male

Female5.9 years

Male

17%
18 19 20 21 22 23

Femalepositions excluding
culinary positions(2023)
FemaleMale

34.4%

52.3% 47.7%

65.6%

100%

Resumed recruitment of
new graduates andmid-career professionals

18 19 20 21 22 23

 Gender distribution of managerial
positions*Ratio of managerial

18 19 20 21 22 23* Source: Ministry of Health, Labour and Welfare (MHLW), 2022 Employment Trend Survey Results Overview

30

Human Capital (2)(Key Initiatives for the Fiscal
Year Ending December 31, 2024)▎Positioning human resources development as a key management priority, we will develop more than 100 in-house training
programs based on our management philosophy and also offer them to external companies.
Job class-specific training programs
Job Class-specific Training
New employees (new graduates andmid-career hires), young employees(second to third year), mid-level
employees (fourth to fifth year),managers and leaders are divided
into 10 class levels. We run over 100
class-specific basic training, taskspecific training, and job-specifictraining programs.

Business Skills Training (will)
A short online seminar for all
employees who want to deepen theirlearning voluntarily, regardless of job
type or class.

Training to improve interviewing
skillsTraining for 1-on-1 meetings to boost
morale, led by employees certified as
career consultants

Job-specific Training
Training aimed at raising the abilitiesof each employee to be active andvalued, and to achieve a highstandard of service.

 M class

General Manager
Appointment Training

General Manager
Appointment Training(Labor-Management,
Finance, and Legal Affairs)(Change in perspective) L classManagement andspecialist positions

 S3 class S2 class S1 class

Leader Training

Leader Training(Leadership and Problem
Solving)(Personnel Evaluationand Management)

Senior 3 Training(Personnel Evaluation andFollowership)

Senior 2 Training(Human Resources
Development) When joining
the company(Change in perspective)

Senior 3 Training(Career Vision)

Meister Training(Assertive Communication)(Branding)

Senior 1 Training

New Graduate Training

Manager Appointment
Training

Senior 2 Training(Human Resources Development)
and Communication)

Mid-Career Hire Training

Training to improve
interviewing skills

Senior 1 Training(Business Manners)

Senior 1 Training(AttendanceManagement)*Conducted over the course of three days (3-4 times a year).

Brush-Up Training

Follow-up Training

will Training
31

Human Capital (3)(Key Initiatives for the Fiscal
Year Ending December 31, 2024)▎Ranked 11th in "Companies with High Employee Morale" published by Nikkei Business.
Rank

Company name

Type of business

Score

１

Boston Consulting GroupManagement Consulting

4.47

２

UL Systems

IT consulting

4.46

３

Joined Bain & Company Japan

Management Consulting

4.44

4

Plan・Do・See

Hotel, restaurant management and bridal

4.33

5

Speee

Marketing and DX support

4.33

6

CADDi

Metal parts processing intermediary

4.29

7

DEARS BRAIN

Bridal4.28

8

A.T. Kearney

Management Consulting

4.26

9

GLOBIS

Provision of management and other training

4.25

10

CyberAgentInternet advertising and games

4.24

11

Novarese

Bridal4.22

12

IGNITION POINT

Creation of new businesses

4.20

13

Nikken Sekkei

Architectural planning and design

4.18

14

LevtechIT career change support

4.18

15

The Prudential Life InsuranceLife insurance business

4.17

Characteristics of Ranked Companies
 A culture of feedback and an
environment for growth A sense of speed inmanagement through thetransfer of authority
 Have clear evaluation criteria
and a corporate culture thatis rated
Source: Nikkei BusinessAnnounced on January 26, 2024
A survey of approximately 190,000
company evaluation reports submitted tothe employee review site OpenWork fromJanuary 2021 to the end of November
2023. Rankings are results to the fifth
decimal place.

32

Future Growth Strategy▎In addition to expanding our revenue base by steadily opening new stores, we will seek to expand in areas where we can takeadvantage of our edge.

Reinforcementof Revenue
Base
Expansion of
earnings base

Expansion ofBusiness
DomainExpandingbusiness domains

Domestic
market Bridal Business: Continue opening approx. 3 new venues annually (new construction, M&A, operation on
consignment) Restaurant Business: Continue opening 1 to 2 new restaurants annually (new construction, M&A, operationon consignment)

Overseas
markets

 Bridal Business: Open dress shops and promote wedding services on consignment
 Restaurant Business: Aim for international expansion to promote Japanese food cultureFor
corporateclients

 Expanding external sales by leveraging our overwhelming superiority in our in-house wedding services(Dresses, meeting systems, wedding gifts, photographs, videos, floral decoration/arrangements, creative,
training, etc.)
 Capture inbound demand for food and beverages by taking advantage of differentiated spaces andlandscapes, such as historical buildings
 Entered the recruiting business, leveraging our overwhelming recruiting power in the industry

For
individual
clients

 Promote new business for customer retention for wedding customers, which are increasing by
approximately 5,000 couples per year In addition to the superiority of the facilities, the sophisticated hospitality will cater to the growing demandfor inbound weddings.

33

Shareholder Returns
Shareholder Incentive Program(Web-based catalog gift image)As of December 31, 2023, we will introduce the following new benefits for shareholders
who own 100 or more shares of the Company’s stock:
Number ofshares held

Shareholders with less than 3 years ofcontinuous ownership

Shareholders with 3 years or more ofcontinuous ownership

100 to 499 shares Special Gift (Food, equivalent to 2,000yen) Broth Dining Discount Vouchers (20%
off the price of meals) – 2 vouchers Special Gift (Food, equivalent to 2,000yen) Broth Dining Discount Vouchers (20%
off the price of meals) – 4 vouchers

500 to 999 shares Web-based Catalog Gift (equivalent to
3,500 yen)
 Broth Dining Discount Vouchers (20%
off the price of meals) – 2 vouchers Web-based Catalog Gift (equivalent to
3,500 yen)
 Broth Dining Discount Vouchers (20%
off the price of meals) – 4 vouchers

1,000 to 4,999 shares Web-based Catalog Gift(equivalent to5,000 yen)
 Broth Dining Discount Vouchers(20%off the price of meals) – 2 vouchers Web-based Catalog Gift(equivalent to5,000 yen)
 Broth Dining Discount Vouchers(20%off the price of meals) – 4 vouchers

5,000 to 9,999 shares Web-based Catalog Gift (equivalent to
10,000 yen)
 Broth Dining Discount Vouchers (20%
off the price of meals) – 2 vouchers Web-based Catalog Gift (equivalent to
10,000 yen)
 Broth Dining Discount Vouchers (20%
off the price of meals) – 4 vouchers Web-based Catalog Gift (equivalent to
20,000 yen)
 Broth Dining Discount Vouchers (20%
off the price of meals) – 2 vouchers Web-based Catalog Gift (equivalent to
20,000 yen)
 Broth Dining Discount Vouchers (20%
off the price of meals) – 4 vouchers

10,000 or moreshares(Broth Dining-operated restaurants)

Dividend payout ratio
NOVARESE regards the return of profits to shareholders as
an important management issue. However, at this point,
there is an insufficient surplus from which to pay dividends.
We will make every effort to steadily move forward with ourbusiness activities and to pay dividends as soon as possible.

34

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)