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.

August 8, 2024

Consolidated Financial Results for the First Quarter of Fiscal Year Ending
March 31, 2025 (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, Senior Managing Director, Chief Financial Officer
Telephone:+81-3-5600-7811
Scheduled date to commence dividend payments:
Preparation of supplementary materials on financial results:
No
Holding of financial results briefing:
No(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2025 (April 1,
2024 to June 30, 2024)(1) Consolidated operating results (YTD)
Net sales

Operating income

Net income attributableto owners of parent
company

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

15,435

48.6

372

757.9

242

511.3

198

165.7

10,385

6.6

43

―

39

―

74

―

Three months ended
June 30, 2024
Three months ended
June 30, 2023
Note

(Percentages indicate year-on-year changes)

Comprehensive income

Three months ended June 30, 2024
Three months ended June 30, 2023

Basic earnings per share
Three months ended
June 30, 2024
Three months ended
June 30, 2023

¥164 million yen(0) million yen

Diluted earnings per
share

Yen

Yen

10.27

8.92

3.70

3.55

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2024

54,363

11,44721.0

As of March 31, 2024

53,194

11,425

21.5

Reference:

EquityAs of June 30, 2024
As of March 31, 2024

11,436 million yen
11,413 million yen[ - %][ - %]

2. Cash Dividends
Annual dividend
End of firstquarter
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025

End of second
quarter

End of term

Total

Yen

Yen

Yen

Yen

Yen

―

3.0

―

7.0

10.0

3.0

―

8.0

11.0

―

Fiscal year ending
March 31, 2025
(forecast)Note:

End of third
quarter

Revisions to the most recently announced dividend forecast: None
The above “Cash Dividends” refers to the status of dividends related to common stock. Please refer to “Dividends on classshares” below for the status of dividends on class shares (unlisted) issued by the Company with different rights from thoseof common stock.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (April 1, 2024 toMarch 31, 2025)(Percentages indicate year-on-year changes for the full year and from the same period of the previous year for the quarter)
Net income
attributable to
Net income per
Net sales
Operating income
Ordinary income
owners of parent
share
company
Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

First Six Months(YTD)

31,000

46.5

650

130.6

300

40.1

200

32.6

10.06

Full Year

63,000

44.4

1,800

42.7

1,000

90.6

700

10.6

36.00

Note:

Revisions to the most recently announced earnings forecast: Yes
For details, please refer to the “Notice of Revision of Consolidated Earnings Forecast for the Second Quarter of Fiscal YearEnding March 31, 2025” released today.

* Notes(1) Significant changes in the scope of consolidation 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 June 30, 2024

21,379,000 shares

As of June 30, 2023

21,379,000 shares

Number of treasury shares at the end of the period
As of June 30, 2024

2,490,706 shares

As of June 30, 2023

2,490,706 sharesiii) Average number of shares outstanding during the period (YTD)
Three months ended June 30, 2024

18,888,294 shares

Three months ended June 30, 2023

18,888,294 shares* Review of attached quarterly consolidated financial statements by certified public accountants or an auditing
corporation: None
* 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 significantly from the forecasts due to various factors. Please refer to “1. Qualitative
Information on Financial Results for the First Quarter of Fiscal Year Ending March 31, 2025” on page 2 of theSummary of Financial Results (Attachments) for the assumptions used in forecasting business results andprecautions 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 asfollows:
Annual dividend
End of firstquarterClass A SharesFiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025
(forecast)End of second
quarter

End of third
quarter

End of term

Yen

Yen

Yen

Yen

Yen

―

4.78

―

4.78

9.56

4.78

―

4.78

9.56

Total

―

○

Table of Contents of Attachments
1.

Qualitative Information on Financial Results for the First Quarter of Fiscal Year Ending March 31, 2025 2(1)
Description of Operating Results .................................................................................................... 2(2)
Description of Financial Position.................................................................................................... 3(3)
Description of Consolidated Earnings Forecasts and Other Forward-Looking Information .......... 3

2.

Consolidated Quarterly Financial Statements and Primary Notes ............................................................... 4(1)
Consolidated quarterly balance sheet.............................................................................................. 4(2)
Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income .................................................................................................................. 6
Consolidated quarterly statement of income ................................................................................... 6
Three months ended June 30, 2024 ........................................................................................... 6
Consolidated quarterly statement of comprehensive income.......................................................... 7
Three months ended June 30, 2024 ........................................................................................... 7(3)
Notes to Consolidated Quarterly Financial Statements .................................................................. 7(Notes on Going Concern Assumption) .......................................................................................... 7(Notes on Significant Changes in the Amount of Shareholders’ Equity) ........................................ 7(Notes to Segment Information) ..................................................................................................... 7(Notes to Statement of Cash Flows) ............................................................................................... 7

- 1 -

1.

(1)

Qualitative Information on Financial Results for the First Quarter of Fiscal Year Ending March 31, 2025
Description of Operating Results

During the first quarter of the current consolidated fiscal year (April 1, 2024 to June 30, 2024), the number of enrolled membersof the sports club business progressed steadily and the unit price per member remained close to the plan. Additionally, in the home
fitness business of Sports Oasis Co., Ltd. (hereinafter referred to as “Oasis”), which became a wholly owned consolidated subsidiaryof the Company starting from the current fiscal year, sales centered on best-selling products exceeded expectations. In terms of costs,
although heating and lighting expenses were lower than planned, overall costs remained roughly in line with the plan. As a result,for the Renaissance Group's business results in the first quarter of the current consolidated fiscal year under review, net sales were
15,435 million yen (up 48.6% year-on-year), operating income came to 372 million yen (up 757.9% year-on-year), ordinary income
posted 242 million yen (up 511.3% year-on-year), and net income attributable to owners of parent company was 198 million yen (up165.7% year-on-year).
The Group, based on its corporate philosophy of a “company for creating purpose in life” (ikigai in Japanese), and its long-term
vision of a “health solution company that enriches the age of the 100-year life span,” is engaged in business activities with the aim ofenabling people to live fulfilling, “healthy” and “meaningful lives” in all stages of life. In addition, we formulated the “2024-2027
Medium-Term Management Plan” in May 2024 and have embarked upon the first year of the plan with the following major aims: i)
Driving the industry as a leading integrated sports club company, and ii) Creating medium- to long-term growth drivers beyond thefitness industry.
[Sports Club Business]
In the sports club business, in terms of new memberships, fitness memberships were generally steady, and in the school division,both swimming and tennis memberships grew at a faster pace than in the previous year. Additionally, we worked to improve theattractiveness of existing facilities, renovating three of them. At Oasis, as part of the efforts to create synergies with the Company, we
introduced the Company's operational know-how to junior swimming schools and took advantage of its central location in Tokyo toexpand and strengthen corporate membership. On the cost front, heating and lighting expenses were lower than planned; however,overall costs were generally in line with the plan due to increased sales promotion expenses and enhanced enrollment promotions.
During the first quarter of the current consolidated fiscal year, net sales of the sports club business increased 40.3% year-on-year to
13,279 million yen, as membership increased at four new facilities opened in the previous fiscal year, Sports Club Renaissance KSC
Kanamachi 24, which was taken over and reopened in March 2024, and Oasis. The number of enrolled members stood at 488,599(including 58,746 online members) at the end of the first quarter of the current fiscal year (up 28.9% year-on-year).
In terms of “strengthening the earnings base and transforming the business structure” and “business succession M&A,” which are
the aims of the sports club business under the “2024-2027 Medium-term Management Plan,” we formed a project with Advantage
Advisers Inc., a company with which we have a capital and business alliance, to consider measures tailored to the characteristics of therevenue structure of each facility, collect information on business succession and M&A cases that will lead to the enhancement ofcustomer value, and check the surrounding areas of the facilities.
In the BtoG business (community health promotion), leveraging our know-how in operating sports clubs, we held swimming lessons
at 57 schools in 33 municipalities to resolve issues surrounding swimming lessons at schools. Additionally, in April, we were entrusted
by five public facilities in Saga, Fukuoka, and Ehime prefectures and commenced designated management.
In the BtoB business (health promotion for workers targeting corporate health insurance associations), we continued to expand our
support for corporate health promotion measures through our online lesson service “RENAISSANCE Online Livestream” (hereinafterreferred to as “ROL”), which is mainly for use by Vitality members of Sumitomo Life Insurance Company (Chuo-ku, Osaka-shi,
Osaka). Furthermore, from mid-August, we plan to offer preferential services at our sports clubs and ROL to all policyholders of Aflac
Life Insurance Japan Ltd. (Shinjuku-ku, Tokyo).
[Nursing Care and Nursing-care/Medical-related Business]
In the nursing care and nursing-care/medical-related business, net sales for the first quarter of the current consolidated fiscal year
were 461 million yen (up 0.2% year-on-year) due to stable user attendance rates at existing facilities, such as “Genki Gym,” a day
service focused on rehabilitation, and the smooth response to the revision of nursing care fees for fiscal year 2024. As part of the efforts
to expand the number of stores and improve profitability in the future, we are opening new “Genki Gym” business models and preparing
to open home nursing stations within sports clubs, and have begun considering M&A in relation to rehabilitation-focused day services.
Moreover, in supporting cancer survivors in their rehabilitation, we held online seminars on the themes of “beauty” and “exercise” incollaboration with Shiseido Japan Co., Ltd. in order to provide opportunities for cancer survivors to improve their quality of life.
[Home Fitness Business]
In the home fitness business, online sales of the best-selling “Twist Stepper” series were strong. In addition, the “StylyBall,” a
rechargeable vibration ball that allows you to strengthen your adductor muscles while sitting, and the “Air Slimer,” which wasdeveloped based on personal stretching at gyms and allows you to stretch your back and stomach area while lying down, were wellreceived, especially through TV shopping. As a result, net sales for the first quarter of the current consolidated fiscal year were 1,129
million yen (an increase of 1,088 million yen from the same period last year). As part of new product development, we also worked to
expand sales of “StylyLeg,” a product that provides intensive care for the calves using airbag compression and EMS functions.

- 2 -New store openings (including outsourced operations and designated management) during the three months ended June 30, 2024
were as follows:
Opening Date

Facility Name

Facility Type

Apr. 2024

Sports Club Renaissance KSC Kanamachi 24 (Katsushika-ku, Tokyo)

Sports club

Apr. 2024

BEACHTOWN OYAMA (Daisen-cho, Saihaku-gun, Tottori)

Apr. 2024

Karatsu City Public Facility Community Area (Karatsu-shi, Saga)

Entrusted

Apr. 2024

Kasuya-machi General Gymnasium (Kasuya-machi, Kasuya-gun,
Fukuoka)

Entrusted

Apr. 2024

Kasuga City Ikiiki Plaza (Kasuga-shi, Fukuoka)

Entrusted

Apr. 2024

Iyo City Shiosai Park (Iyo-shi, Ehime)

Designated management

Apr. 2024

Iyo City Futami Shiokaze Fureai Park (Iyo-shi, Ehime)

Designated management

Outdoor fitness(BEACH TOWN)

As a result, the total number of facilities of the Group at the end of the first quarter of the current fiscal year, including the facilities
of Oasis and BEACH TOWN Inc., stood at 279, consisting of 219 sports clubs (Renaissance: 107 directly managed facilities, 63
contracted facilities, 4 operation support facilities; Oasis: 32 directly managed facilities, 11 contracted facilities; RENAISSANCEVIETNAM, INC.: 2 directly managed facilities), 2 studio facilities, 44 nursing care rehabilitation facilities (34 directly managed
facilities, 10 franchise facilities), and 14 outdoor fitness facilities (5 directly managed facilities, 9 contracted facilities).
The Company also plans to open new facilities listed in the table below in the second quarter of the consolidated fiscal year underreview and thereafter.
Opening Date

Facility Name

Facility Type

July 2024

Re PT GYM RENAISSANCE JAPAN Times City (Hanoi, Vietnam)

Personal training gym(Renaissance Vietnam)

July 2024
September 2024
October 2024

THE OSAKA STATION HOTEL, Autograph Collection 30F
GYM/OFURO (Osaka-shi, Osaka)Renaissance Rehabilitation Station Konandai (Yokohama-shi,
Kanagawa)
CARAPPO Toranomon Hills (Minato-ku, Tokyo)

Entrusted (Oasis)
Nursing rehabilitation(directly managed)
Entrusted (Oasis)

This information is omitted because the Group’s only reportable segment is the “sports club management business.”(2)

Description of Financial Position
Total assets at the end of the first quarter of the current fiscal year rose 1,169 million yen from the end of the previous fiscal
year to 54,363 million yen. This was mainly due to an increase in total current assets of 863 million yen, resulting from increases
in cash and deposits and other factors, and an increase in total fixed assets of 307 million yen due to increases in property, plantand equipment and other factors.
Total liabilities at the end of the first quarter of the current fiscal year grew 1,146 million yen from the end of the previous
fiscal year to 42,915 million yen. This was mainly due to an increase of 1,969 million yen in total current liabilities, resulting
from increased short-term borrowings and other factors, while non-current liabilities fell 822 million yen due to a decline in longterm borrowings and lease obligations.
Total net assets at the end of the first quarter of the current fiscal year rose 22 million yen from the end of the previous fiscal
year to 11,447 million yen. This was mainly due to an increase of 56 million yen in retained earnings mainly due to the postingof net income attributable to owners of parent company of 198 million yen and the payment of dividends of 142 million yen, anda decrease of 37 million yen in foreign currency translation adjustment, resulting in a decrease of 34 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, 2025, has been revised from that announced on May
10, 2024, for the first half of the consolidated fiscal year. For details, please refer to the “Notice of Revision of Consolidated
Earnings Forecast for the Second Quarter of Fiscal Year Ending March 31, 2025” released today.

- 3 -

2.

(1)

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

As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Commodity
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Leased assets, net
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for loss on store closings
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Convertible-bond-type bonds with shareacquisition rights
Long-term borrowings
Lease obligations
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities- 4 -As of June 30, 2024

6,206,728
2,189,035
756,560
1,852,544(12,701)
10,992,166

7,446,400
1,836,299
783,702
1,803,202(13,590)
11,856,014

8,252,143
13,759,415
2,693,745
24,705,304
2,112,030

8,615,113
13,483,587
2,795,761
24,894,463
2,048,106

33,685
12,374,658
2,958,358
15,366,701
42,184,036
18,06653,194,269

35,227
12,509,079
3,004,722
15,549,028
42,491,597
15,82854,363,439

87,8882,400,000
2,343,084
403,192
1,020,464
21,70528,4727,202,755
13,507,562

81,2404,700,000
2,304,091
218,927
521,936
21,70524,355
7,604,464
15,476,721

1,499,988

1,499,988

4,708,637
15,339,570
1,363,783
2,524,289
2,825,372
28,261,642
41,769,204

4,227,116
15,097,157
1,357,492
2,535,898
2,721,223
27,438,875
42,915,597

(Thousands of yen)
As of March 31, 2024

As of June 30, 2024

Net assets
Shareholders’ equity
Share capital
Capital surplus

3,210,356
5,813,491

3,210,356
5,813,491

Retained earnings
Treasury shares

5,131,498(2,514,753)

5,188,277(2,514,753)

Total shareholders’ equity

11,640,592

11,697,370

8,348

9,418

(213,914)(21,634)(250,987)(19,632)(227,201)(261,201)

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- 5 -11,673

11,673

11,425,064

11,447,842

53,194,269

54,363,439

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated quarterly statement of income
Three months ended June 30, 2024
(Thousands of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Other
Total extraordinary losses
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to owners of parent company- 6 -Three months ended
June 30, 2024

10,385,261
9,745,444
639,817596,426
43,391

15,435,108
14,162,299
1,272,809
900,545372,264

2,027
83,2262,067
44,287

14,809―37,693
137,756

17,89064,246

129,422
12,137
141,559
39,587

184,718
9,775
194,494
242,016

―
―

28
28

1,504
478
1,983
37,60438,180(75,478)(37,297)
74,90274,902

14,184464
14,649227,395
167,541(139,142)
28,399198,996
198,996

Consolidated quarterly statement of comprehensive income
Three months ended June 30, 2024

(Thousands of yen)Three months ended
June 30, 2023

Net income

Three months ended
June 30, 2024

74,902

198,996

Comprehensive income
Valuation difference on available-for-sale securities

1,149

1,070

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(78,218)
1,985(37,072)
2,002

Total other comprehensive income(75,082)(34,000)(180)

164,996(180)

164,996――

Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent company
Comprehensive income attributable to non-controllinginterests(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.

(Notes to Segment Information)[Segment Information]
This information is omitted because the Group’s only reportable segment is the “sports club management business.”(Notes to Statement of Cash Flows)
We have not prepared a quarterly consolidated statement of cash flows for the three months ended June 30 of the current fiscal
year. Depreciation (including amortization related to intangible assets except goodwill) and amortization of goodwill for the threemonths ended June 30 of the current fiscal year are as follows:
Three months ended
June 30, 2023
Depreciation
Amortization of goodwill- 7 -Three months ended
June 30, 2024

542,483 thousand yen

691,394 thousand yen

3,654 thousand yen

33,315 thousand yen