Full Fiscal Year Reference Format 1 [Japanese GAAP] (Consolidated)
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.

May 10, 2024

Consolidated Financial Results
for the Fiscal Year Ended March 2024
(Under 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 and President
Inquiries:
Yoshitsugu Anzawa, Director, Executive Corporate Officer, Chief Financial Officer
Telephone:+81-03-5600-7811
Scheduled date of annual general meeting of shareholders:June 21, 2024
Scheduled date to commence dividend payments:
June 6, 2024
Scheduled date to file annual securities report:
June 28, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors, analysts andthe media)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

43,627

7.0

1,261

85.4

524

68.5

632

―

40,7609.8

680(25.5)

311(50.8)(1,141)―

Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023
Note: Comprehensive income

Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:

Basic earnings
per share
Fiscal year ended
Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Profit attributable toowners of parent

Ordinary income

Diluted earnings
per share¥579 million(1,191) million yen[ - %][ - %]

Return on equity

Ratio of ordinary
income to total assets

Ratio of operating
income to net sales

Yen

Yen

%

%

%

32.45

30.47

5.7

1.1

2.9

(60.44)―(10.7)

0.8

1.7

Reference:(Note)

Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2024:(362) million yen
Fiscal year ended March 31, 2023:¥ - million
Diluted net income per share for the fiscal year ended March 31, 2023, is not shown, because a loss per share was recorded,
although there are dilutive shares.

(2) Consolidated financial position
Total assets
As ofFiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

53,194

11,42521.5

498.3742,272

10,99126.0

475.41

Full Fiscal Year Reference Format 1 [Japanese GAAP] (Consolidated)
Reference:

EquityFiscal year ended March 31, 2024:¥11,413 million
Fiscal year ended March 31, 2023:¥10,979 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

4,831(4,520)

436

6,211

1,614

(4,238)

3,350

5,532

Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(forecast)(Note)

Yen

Fiscalyear-end

Yen

Total

Yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Total cash
dividends(Total)Yen Millions of yen

%

%

―

4.0

―

4.0

8.0

151

―

1.6

―

3.0

―

7.0

10.0

188

30.8

2.1

―

3.0

―

8.0

11.0

30.6

“Cash dividends” above refer to dividends on common shares. Regarding dividends related to class shares (unlisted) withdifferent rights from those of common stock issued by the Company, please refer to “Dividends on class shares” describedlater.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (April 1, 2024 toMarch 31, 2025)
Net sales

Operating income

Ordinary income

Net income
attributable toowners of the parent
company

Net income pershare

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyenFirst Six Months(YTD)

30,500

44.2

400

41.9

100

(53.3)

10(93.4)

0.00

Full Year

63,000

44.4

1,800

42.7

1,000

90.6

700

10.6

36.00

Full Fiscal Year Reference Format 1 [Japanese GAAP] (Consolidated)* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
Fiscal year ended March 31, 2024

21,379,000 sharesFiscal year ended March 31, 2023

21,379,000 shares(ii) Number of treasury shares at the end of the period
Fiscal year ended March 31, 2024

2,490,706 sharesFiscal year ended March 31, 2023

2,490,706 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024

18,888,294 sharesFiscal year ended March 31, 2023

18,888,294 shares[Reference] Overview of non-consolidated financial results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March
31, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Operating income

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

43,048

7.0

1,264

71.6

817

170.4

589

―

40,2449.3

737(24.3)

302(46.5)(1,204)―

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share
Yen

Yen

Fiscal year ended
30.16
28.36
March 31, 2024
Fiscal year ended(63.76)―
March 31, 2023
(Note) Diluted net income per share for the fiscal year ended March 31, 2023, is not shown, because a loss per share was recorded,
although there are dilutive shares.

(2) Non-consolidated financial position
Total assets
As ofFiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

47,205

11,46624.3

500.5742,047

11,01826.2

476.86

Full Fiscal Year Reference Format 1 [Japanese GAAP] (Consolidated)
Reference:

EquityFiscal year ended March 31, 2024:¥11,454 million
Fiscal year ended March 31, 2023:¥11,007 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters(1) 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 results
may vary due to different factors. Please refer to “1. Overview of Operating Results” on page 1 of theSummary of Financial Results (Attachments) for the assumptions used in forecasting business results andprecautions regarding the use of the forecasts.
(2) The Company plans to hold a briefing for institutional investors, analysts, and the media on May 13,2024. The financial results presentation materials to be distributed at this briefing will be posted on the
Company’s website.
(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, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending March 31,
2025 (forecast)yen

End of second
quarteryen

End of third
quarteryen

End of term
yen

Total
yen

―

―

―

1.57

1.57

―

4.78

―

4.78

9.56

―

4.78

―

4.78

9.56

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

○

Table of Contents of Attachments
1.

Overview of Operating Results .................................................................................................................... 2(1)
Overview of Operating Results for Fiscal Year Ended March 31, 2024 ......................................... 2(2)
Overview of Financial Position for Fiscal Year Ended March 31, 2024......................................... 4(3)
Overview of Cash Flow for Fiscal Year Ended March 31, 2024 .................................................... 4(4)
Future Outlook ................................................................................................................................ 5

2.

Basic Approach to the Selection of Accounting Standards .......................................................................... 6

3.

Consolidated Financial Statements and Primary Notes................................................................................ 7(1)
Consolidated balance sheet ............................................................................................................. 7(2)
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ..... 9
Consolidated statement of income .................................................................................................. 9
Consolidated statement of comprehensive income ....................................................................... 10(3)
Consolidated statement of changes in equity .................................................................................11(4)
Consolidated statement of cash flows ........................................................................................... 13(5)
Notes to Consolidated Financial Statements................................................................................. 15(Notes on Going Concern Assumption) ........................................................................................ 15(Segment Information, Etc.) ......................................................................................................... 15(Per share information) ................................................................................................................. 16(Significant subsequent events) .................................................................................................... 17

- 1 -

1.

(1)

Overview of Operating Results
Overview of Operating Results for Fiscal Year Ended March 31, 2024

In the current consolidated fiscal year, net sales remained at an initially planned level, mainly due to steady growth in the numberof new members joining the Company’s sports clubs, the opening of four integrated sports club facilities, and the revision of the
sports club membership fees. Costs were lower than planned because the Company managed to reduce heating and lighting expenses
through company-wide energy conservation measures and the government’s Electricity and Gas Price Dramatic Change Mitigation
Measures Project. In order to further stabilize our employee’s lives and enable them to demonstrate their performance continuously,
the Company raised the average salary level of full-time employees by 5% in July and the hourly wage of part-time employees by
30 yen in November. The Company also decided to raise the initial salary of new graduates joining in April 2025 by 21,900 yen(10%) on average.
For TOKYU SPORTS OASIS, Inc. (currently Sports Oasis Co., Ltd., hereinafter referred to as "Oasis"), an equity-method affiliate
in the current consolidated fiscal year, as a result of examining the collectability of non-current assets, the Company recorded a nonoperating loss of 362 million yen due mainly to the recognition of impairment losses of 15 facilities. In addition, in connection withthe phased acquisition of Oasis shares (acquired 40% on March 31, 2023 and remaining 60% on March 31, 2024), the Company
recorded an unrealized gain of 337 million yen arising from the revaluation of shares at the time of the 40% acquisition as
extraordinary income.
As a result, for the consolidated fiscal year under review, net sales were 43,627 million yen (up 7.0% year-on-year), operating
income came to 1,261 million yen (down 85.4% year-on-year), ordinary income posted 524 million yen (up 68.5% year-on-year),and profit attributable to owners of parent company was 632 million yen (compared with a loss attributable to owners of the parent
company of 1,141 million yen for the same period last year).
Owing to the whole acquisition of Oasis as of the end of the consolidated fiscal year under review, the Renaissance Group (the“Group”) is expected to record largest net sales in the fitness industry for the fiscal year ending March 31, 2025.
The Company also plans to merge with Oasis on April 1, 2025. For details, please refer to "Notice Concerning Absorption-typeMerger (Simplified Merger and Short-form Merger) of Consolidated Subsidiaries" and "Notice Concerning Formulation of 20242027 Medium-Term Management Plan" announced today.
During the current consolidated fiscal year, Japan saw further normalization of social and economic activities and the economy witha moderate recovery trend. On the other hand, the situation remains highly uncertain due mainly to fluctuations of the currency
exchange market and soaring prices of raw materials, and sluggish personal consumption due to the rise in prices of goods.
In the fitness industry, as people’s desire to maintain and improve their base strength increases due to the manifestation of healthissues associated with lifestyle changes, and the need for sports clubs to serve as a venue for community which create connections withpeople increases, sports clubs are increasingly expected to play an important role.
Under these circumstances, the Group, based on its corporate philosophy of a “company for creating purpose in life” (ikigai inJapanese), and its long-term vision of a “health solution company that enriches the age of the 100-year life span,” is working to realizea healthy and long-lived society and resolve local social issues. It will do so through the maintenance and promotion of good health toenable people to work throughout their lifetime, and the “shift from treatment to prevention” initiatives that will lead to the reductionof social security expenses such as medical expenses.
[Sports Club Business]
In the sports club business, the number of new fitness members grew steadily as a result of the popularity of the swimming pool,bath, sauna and other features unique to an integrated sports club, and the expansion of gym areas in response to the physical training
needs. As a junior school initiative, the Company began offering KIDS FIT, a physical exercise school designed to nurture children's
athletic and non-cognitive abilities, at our sports club facilities in May. The Company also began introducing Smart Swimming Lessons,a sports ICT solution developed by Sony Network Communications, Inc., to our athlete and adult classes. In addition, in the 2024
Oricon Customer Satisfaction® Survey, the Company was nominated as the top instructor in the category of Kids' Swimming School,
Elementary School. In addition, in order to cope with the recent rise in heating and lighting expenses, etc., and provide added value tocustomers through continuous investment in human resources and facilities, the Company revised the fitness membership fees in Julyand the junior school membership fees in October.
As for new openings, four integrated sports clubs were opened: “Sports Club & Spa Renaissance Imazato 24” (Osaka-shi, Osaka)and “Sports Club Renaissance Sendai Oroshimachi (Sendai-shi, Miyagi) in July, and “Sports Club Renaissance Kumamoto Hikari-nomori 24” (Kikuyo-machi, Kikuchi-gun, Kumamoto) and “Sports Club Renaissance Aeon Mall Zama 24 (Zama-shi, Kanagawa) in
October. As a result, the number of enrolled members as of March 31, 2024, was 395,000 (including 54,331 online members) (up 5.7%
year-on-year).
In addition, the Company received the transfer of “KSC wellness Fitness Club Kanamachi and Kanamachi Swimming Club”(Katsushika-ku, Tokyo) operated by RYOSHI CO., Ltd., and reopened it as “Sports Club Renaissance KSC Kanamachi 24 (hereinafter“KSC Kanamachi”) in April 2024.
[Nursing Care and Nursing-care/Medical-related Business>
In the Nursing care and nursing-care/medical-related business segment, net sales increased 8.9% year-on-year as a result of efforts
to improve the quality of life of users through the provision and collaboration of multiple services including day services specialized
in rehabilitation, home nursing stations, home nursing support, child development support and after-school day services.
In November of the current consolidated fiscal year, the Company opened its first home nursing station “Renaissance Rehabilitation
Station Fujimidai” (Nerima-ku, Tokyo) attached to the sports club facility. The sports club trainers and nurses cooperate to support- 2 -promoting the health of the community from physical and nursing care aspects. The Company also opened a franchise facility“Renaissance Genki Gym Musashiseki” (Nerima-ku, Tokyo) in August.
In terms of rehabilitation support for cancer survivors, the Company strengthened a program to nurture and certify a "PhysicalExercise Instructor Specializing in Cancer which is certified by Osaka International Cancer Center (hereinafter "physical exercise
instructor specializing in cancer"). As of the end of the fiscal year under review, the Company assigned 77 physical exercise instructors
specializing in cancer to 41 of our sports club facilities and 5 nursing care rehabilitation facilities. In February, in collaboration with
the Osaka International Cancer Center (Chuo-ku, Osaka-shi, Osaka), where we operate Physical Exercise Support Center, the Company
launched a frailty prevention course for hospitalized patients. The Company will continue to create an environment in which cancer
survivors can have reliable rehabilitation, and will expand support physical exercise programs for those facing cancer.
[Health Promotion Business for Companies and Health Insurance Associations]
In this segment, the Company has supported health-conscious management initiatives for many corporations. In the current
consolidated fiscal year, the Company saw an increase in the number of contracts for original programs utilizing the Company's
knowhow in physical exercise and health promotion, such as companies’ Fall Accident Prevention Program aimed at preventing
industrial accidents which are increasing year by year.
The Company also actively supported health promotion for corporate service users with its online lesson service "RENAISSANCE
Online Livestream” (hereinafter referred to as "ROL"). ROL is used by an increasing number of Vitality members of Sumitomo Life
Insurance Co., Ltd. (Chuo-ku, Osaka-shi, Osaka), while it is used for the spread and promotion of SMEs’ health-conscious management
implemented by Daido Life Insurance Co., Ltd. (Nishi-ku, Osaka-shi, Osaka), and is continuously provided to “U-NEXT,” a video
streaming service operated by U-NEXT Co., Ltd. (Shinagawa-ku, Tokyo).
[Health Promotion Business for Local Communities and Governments]
In the Health Promotion Business for Local Communities and Governments segment, the Company continued to support healthpromotion initiatives for local governments.
As part of our efforts to support health promotion, the Company concluded a memorandum of understanding with Obu-shi, Aichi,
and Toyota Systems Co., Ltd. (Nakamura-ku, Nagoya-shi, Aichi) on a project to demonstrate sleep improvement for the working
generation in Obu-shi in July, a comprehensive cooperation agreement on health promotion, etc., with Zama-shi, Kanagawa, in
September, and a cooperation agreement on the improvement of presymptomatic diseases, etc., with Kanagawa prefecture in January.
The Company contracted swimming lessons with 25 local governments, about 1.5 times increase from the previous year, and at 50
schools.
In the current consolidated fiscal year, the Company concluded collaboration agreements on the use of the Company’s sports clubs
in supporting disaster victims when a disaster has occurred with five local governments including Kikuyo-machi (Kumamoto), Motosushi (Gifu), Fukuoka-shi (Fukuoka), Yamato-shi (Kanagawa), and Warabi-shi (Saitama) for further contribution to regional communities.
<Subsidiaries, etc.>
From August, the Company revised the membership fees in the sports club business of RENAISSANCE VIETNAM, INC. graduallyin accordance with price rises in Vietnam. In addition, the Company contracted swimming instruction classes at "Swimming & Fitness
Renaissance Japan Aeon Mall LongBien" (Hanoi City, Vietnam) for a French international school, and also provided swimming lessons
to kindergartens and elementary schools.
BEACH TOWN Inc. has been involved in planning and proposing projects for participation in public-private partnership (PPP)
projects for public facilities and the park private financing initiative (Park-PFI), and creation of local gathering spots in collaboration
with companies. In October, the Company opened membership outdoor fitness club RIVER PARK Seiseki Sakuragaoka (Tama-shi,
Tokyo) as a business partner of Keio Corporation.
In the current consolidated fiscal year, Oasis saw strong performance in the home fitness business, mainly the sale of home exercise
items, and steady performance in the sports club business utilizing the knowhow of Renaissance.
<Others>
As a joint initiative with Advantage Advisors Co., Ltd. (Minato-ku, Tokyo), the partner in a capital business alliance, the Company
is promoting multiple projects, including strengthening the sports club business, development of stores of nursing care and medicalrelated businesses, and reconstruction of the business portfolio. For higher corporate value over the medium to long term, the Company
will strive to implement various measures steadily by mutually utilizing the knowledge of Advantage Advisors Co., Ltd. and knowhow
of the Company.
Rikako Ikee, supported by the Company, broke the standard time for qualification for the 100m butterfly, and won the second award
at the Nomination Contest for International Competitions held in March. Mio Narita of KSC Kanamachi also broke the standard timefor qualification for the 400m individual medley and won the first award at the contest. Both were selected as members of the national
team. We will continue to support the success of athletes.
<Number of facilities>
In the current consolidated fiscal year, the Company opened new facilities and closed existing facilities, and started providing
entrusted operations as in the table below. The number of our group’s facilities as of the end of the current fiscal year, including thefacilities of Oasis and BEACH TOWN, Inc., totaled 274 facilities: 213 sports clubs (139 directly managed, 72 entrusted, and two
RENAISSANCE VIETNAM,INC. facilities), two studio-type facilities, 44 nursing and rehabilitation facilities (33 directly managed
and 11 franchise), and 15 outdoor fitness facilities (four directly managed and 11 entrusted).

- 3 -Opening Date

Facility Name

Facility Type

April 2023

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

Designated management

April 2023

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

Designated management

April 2023

BEACHTOWN OND PARK (Takeo-shi, Saga)

May 2023

Outdoor Fitness Edogawa (Edogawa-ku, Tokyo)

July 2023

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

Sports club

July 2023

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

Sports club

August 2023

Renaissance Genki Gym Musashiseki (Nerima-ku, Tokyo)

October 2023

Sports Club Renaissance Kumamoto Hikari no Mori 24 (Kikuyo-machi,
Kikuchi-gun, Kumamoto)Sports club

October 2023

Sports Club Renaissance Aeon Mall Zama 24 (Zama-shi, Kanagawa)Sports club

October 2023

RIVER PARK Seiseki Sakuragaoka (Tama-shi, Tokyo)

November 2023

Renaissance Rehabilitation Station Fujimidai (Nerima-ku, Tokyo)

Time of outlet
closure/terminationof management

Facility Name

Outdoor fitness(entrusted)
Outdoor fitness(entrusted)

Nursing rehabilitation(franchise, FC)

Outdoor fitness(entrusted)
Nursing rehabilitation(directly managed)
Facility Type
Outdoor fitness(directly managed)

End of April 2023

Community Park Okegawa (Okegawa-shi, Saitama)

End of June 2023

Sports Club Renaissance Sagami-Ono (Sagamihara-shi, Kanagawa)Sports club

Shin-Marunouchi Building (Chiyoda-ku, Tokyo)

Entrusted

End of October2023
End of February
2024

S/PARK Studio (Yokohama-shi, Kanagawa)

Outdoor fitness(entrusted)

End of March 2024

Sports Club Renaissance Fuchinobe (Sagamihara-shi, Kanagawa)Sports club

End of March 2024

Fukuyama-shi General Gymnasium (two other facilities) (Fukuyamashi, Hiroshima)

Entrusted

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

Overview of Financial Position for Fiscal Year Ended March 31, 2024
A change in the financial position at the end of the current fiscal year was due mainly to the acquisition of additional sharesof Oasis as of March 31, 2024, to make the company a wholly-owned subsidiary.

1)

AssetsTotal assets at the end of the current consolidated fiscal year rose 10,921 million yen from the end of the previous fiscal
year to 53,194 million yen. This was mainly due to an increase of 2,208 million yen in total current assets, resulting froman increase in cash and deposits and accounts receivable - trade, and a rise of 5,158 million yen in property, plant andequipment, a rise of 1,650 million yen in intangible assets due mainly to the recording of goodwill in the asset
consolidation procedure of Oasis, and a rise of 3,560 million yen in leasehold and guarantee deposits, offset by a rise of
1,912 million yen in investments and other assets resulting from a decrease of 1,611 million yen in investment securities in
the asset consolidation procedure of Oasis, which resulted in a rise of 8,722 million yen in total non-current assets.

2)

Liabilities
Total liabilities at the end of the current fiscal year grew 10,487 million yen from the end of the previous fiscal year to
41,769 million yen. This was mainly due to an increase of 3,165 million yen in total current liabilities, resulting from anincrease in accounts payable - other, and accrued expenses, and a rise of 7,322 million yen in non-current liabilities, mainly
due to an increase in lease liabilities and asset retirement obligations.

3)

Net assets
Total net assets at the end of the current fiscal year were up 433 million yen from the end of the previous fiscal year to
11,425 million yen. This was mainly due to an increase of 487 million yen in retained earnings as a result of recording again attributable to owners of the parent company of 632 million yen and paying 145 million yen in dividends.

(3)

Overview of Cash Flow for Fiscal Year Ended March 31, 2024

- 4 -

Cash and cash equivalents (“cash”) at the end of the current consolidated fiscal year increased 679 million yen from the endof the previous fiscal year to 6,211 million yen.
The status of each cash flow at the end of the current consolidated fiscal year and their factors are as follows.
1)

Cash flows from operating activities
4,831 million yen in the current fiscal year (1,614 million yen in the previous fiscal year)
Cash provided by operating activities amounted to 4,831 million yen (up 199.2% from the previous consolidated fiscal
year). This was due mainly to profit before taxes of 671 million yen, depreciation of 2,429 million yen (up 8.8% from theprevious consolidated fiscal year), an increase in long-term accounts payable-other of 565 million yen (down 12.2% fromthe previous consolidated fiscal year), and a decrease in consumption taxes refund receivable of 337 million yen.

2)

Cash flows from investing activities-4,520 million yen in the current consolidated fiscal year (-4,238 million yen in the previous fiscal year)
Cash used for investment activities totaled 4,520 million yen. This was mainly due to purchase of property, plant andequipment of 2,247 million yen (down 13.0% year-on-year) and purchase of shares of subsidiaries resulting in changes inscope of consolidation of 1,622 million yen.

3)

Cash flows from financing activities
436 million yen in the current fiscal year (3,350 million yen in the previous fiscal year)
Cash provided by financing activities amounted to 436 million yen. This was mainly due to proceeds from long-termborrowings of 3,400 million yen (up 183.3% from the previous consolidated fiscal year), proceeds from sale and leaseback
transactions of 831 million yen (up 50.8% from the previous consolidated fiscal year), repayments of long-term borrowingsof 2,303 million yen (up 3.6% from the previous consolidated fiscal year), repayments of lease liabilities of 747 million yen(up 14.4% from the previous consolidated fiscal year), and a net decrease in short-term borrowings of 600 million yen.
(Reference) Trends in cash flow indicators
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(%)
(%)

27.0

26.0

Fiscal year ended
March 31, 2024
(Consolidated fiscal
year under review)
21.5

48.9

41.5

36.6

Debt repayment period(years)Operating Revenue Interest Coverage Ratio(times)

4.9
2.5

14.0
1.5

5.7
2.2

Equity ratio
Equity ratio based on market value(Note)

1.

Each indicator is calculated using the following formulas, all of which are based on consolidated financial
figures.
: Equity ratio/Total assets
・ Equity ratio: Market capitalization/Total assets
・ Equity ratio based on market value: Interest-bearing liabilities/Cash flow from・ Debt repayment period
operating activities: (Operating income + Interest income + Dividend
・ Operating Revenue Interest Coverage Ratio
income)/Interest expense2.

Market capitalization is calculated by multiplying the closing stock price at the end of the period by the
number of shares outstanding at the end of the period (less treasury shares).
Interest-bearing liabilities include convertible-bond-type bonds with share acquisition rights, short-term andlong-term borrowings and lease liabilities recorded on the consolidated balance sheet. Operating cash flow is
the cash flow from operating activities in the consolidated statement of cash flows. Interest expense in the
consolidated statement of income is used for interest expense.

3.

(4)

Future Outlook
Although the economic recovery will continue, the economic prospects are expected to remain uncertain due to, for example,
soaring heating and lighting expenses due to unstable global situations, etc., rising prices in response to the weakening yen, andtougher labor shortages than ever.
The fitness industry urgently needs to deal with intensifying competition such as active openings of unmanned low-cost gyms
and fitness facilities in other business formats, as well as soaring personnel expenses and heating and lighting expenses, whichis expected to advance industry consolidation.
Under these circumstances, the Group has formulated a new medium-term management plan with its long-term vision “healthsolution company that enriches the age of the 100-year life span.” Starting in the next consolidated fiscal year, the Group will
accelerate its initiatives for another growth cycle.
Regarding investments, the Company will continue to place importance on investment in human resources in order to respondto rising prices and secure talented personnel. Regarding capital investments, the Company will focus on renewal of existing
sports club facilities and opening new nursing-care rehabilitation facilities such as Genki Gym.
As for the Sports Club Business segment, the Company promotes various measures to improve added value of existing
facilities, and aims for further profitability by increasing sales other than membership fees income to increase average sale per- 5 -customer and streamlining the operation. Furthermore, the Company strives to expand the scope of customers of our healthpromotion by creating shared value through the collaboration between the sports club business and other businesses of theCompany.
As for the Nursing Care and Nursing-care/Medical-related Business segment, the Company will work to maintain or improve
the profitability of existing directly-managed facilities, while developing another operational model that can respond to changes
in the business environment such as the revision of nursing-care benefits. Furthermore, the Company will strengthen solution
proposals to other nursing-care service providers to allow them to earn functional points, and develop another business model.
In the Health Promotion Business for Companies and Health Insurance Associations segment, the Company will strengthen
the support of health-conscious management and workers’ health promotion by implementing health promotion measures withcompanies through ROL and Smart Actions, etc., increasing corporate members, and promoting the use of sports clubs.
In the Health Promotion Business for Local Communities and Governments segment, the Company will strengthen efforts toprovide health problem solutions in cooperation with local governments around our sports clubs, and participate in the publicprivate partnership (PPP) projects more widely, aiming to establish and activate local sites for health promotion. From April 2024,
the Company provides entrusted operational services for Karatsu City Public Facility Community Area (Karatsu-shi, Saga), Iyo
City Shiosai Park (Iyo-shi, Ehime), Iyo City Futami Shiokaze Fureai Park (Iyo-shi, Ehime), Kasuya-machi General Gymnasium(Kasuya-machi, Kasuya-gun, Fukuoka), and Kasuga City Ikiiki Plaza (Kasuga-shi, Fukuoka).
As for Oasis, in the Sports Club Business, the Company will strive to acquire more new corporate members, etc., in the sports
club business, utilize the Company’s swimming school operational knowhow, and work on health promotion with surrounding
local governments, in seeking higher profit. In addition, the Company will work for further growth of the home fitness business,
one of its mainstay business, and the creation of synergies of Group-wide collaboration.
As a result of the above initiatives, consolidated forecasts for the fiscal year ending March 31, 2025, are net sales of 63,000
million yen (up 44.4% from the fiscal year under review), operating income of 1,800 million yen (up 42.7%), ordinary incomeof 1,000 million yen (up 90.6%), and net income attributable to owner of parent of 700 million yen (up 10.6%).
From April 2024 onward, the Company plans to open new facilities and provide entrusted operations for the facilities listed in the tablebelow, including those of its subsidiaries.
Opening Date

Facility Name

Facility Type

Apr. 2024

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

Apr. 2024

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

Apr. 2024

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

Apr. 2024

Iyo City Shiosai Park (Iyo-shi, Ehime)

Designated management

Apr. 2024

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

Designated management

Apr. 2024

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

Entrusted

Apr. 2024

Kasuga City Ikiiki Plaza (Kasuga-shi, Fukuoka)

Entrusted

Fall 2024

CARAPPO Toranomon Hills (Minato-ku, Tokyo)

Entrusted

2.

Sports club
Outdoor fitness(directly managed)
Entrusted

Basic Approach to the Selection of Accounting Standards
The Group’s policy for the time being is to prepare its consolidated financial statements in accordance with Japanese GAAP, taking
into consideration the comparability of its consolidated financial statements between periods and between companies.
The Company’s policy is to respond appropriately to the application of International Financial Reporting Standards, taking into
consideration the domestic and international situation.

- 6 -

3.

(1)

Consolidated Financial Statements and Primary Notes
Consolidated balance sheet

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable – trade
Investments in leases
Commodity
Supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Leasehold and guarantee deposits
Deferred tax assets
Other
Total investments and other assets
Total fixed assets
Deferred assets
Share issuance costs
Bond issuance costs
Total deferred assets
Total assets

FYE March 2023
(as of March 31, 2023)- 7 -(Thousands of yen)FYE March 2024
(as of March 31, 2024)

5,520,381―
1,245,183
23,957234,274
75,3191,691,792(6,881)
8,784,027

6,206,728
6,898
2,189,035
24,569756,560
48,228
1,772,847(12,701)
10,992,166

20,049,221(14,463,005)
5,586,215
2,541,868(2,176,353)
365,5144,614,544(4,020,218)
594,326
1,124,938
15,954,239(4,984,686)
10,969,552
905,929
19,546,478

23,105,267(14,853,124)
8,252,143
2,656,968(2,188,418)
468,550
5,065,056(4,027,078)
1,037,9781,126,458
19,812,710(6,053,295)
13,759,415
60,75824,705,304

76,610384,465
461,076

1,604,312
507,717
2,112,030

1,645,137
477,105
8,814,555
1,766,323
751,008
13,454,129
33,461,683

33,685
420,733
12,374,658
1,886,503
651,120
15,366,701
42,184,036

21,3185,700
27,01842,272,729

13,5664,500
18,06653,194,269

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable-other
Income taxes payable
Advances received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on store closings
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Convertible-bond-type
bonds
with
share
acquisition rights
Long-term borrowings
Lease obligations
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
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

FYE March 2023
(as of March 31, 2023)- 8 -(Thousands of yen)FYE March 2024
(as of March 31, 2024)

54,4793,000,000
2,203,084
695,898
1,622,097
197,429354,084
684,062

87,8882,400,000
2,343,084
998,1572,574,993
403,192
624,8811,020,464

13,926

19,467―
13,453
1,503,415
10,341,931

21,70528,472
2,985,257
13,507,562

1,499,988

1,499,988

3,751,721
11,400,747―
851,520
1,357,079
2,078,499
20,939,556
31,281,487

4,708,637
15,339,570
35,273
1,363,783
2,524,289
2,790,098
28,261,642
41,769,204

3,210,356
5,813,491
4,644,051(2,514,753)
11,153,145

3,210,356
5,813,491
5,131,498(2,514,753)
11,640,592

4,846

8,348

(145,643)(32,779)(173,576)
11,673
10,991,242
42,272,729(213,914)(21,634)(227,201)
11,673
11,425,064
53,194,269

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated statement of income
FYE March 2023
(April 1, 2022 to March 31,
2023)
40,760,685(Thousands of yen)FYE March 2024
(April 1, 2023 to March 31,
2024)
43,627,212

Cost of sales

37,781,939

39,961,151

Gross profit

2,978,746

3,666,061

Selling, general and administrative expenses

2,298,356

2,404,672

680,390

1,261,388

Interest income
Dividend income

9,033
226

8,192

Foreign exchange gains
Gain on sublease55,123
10,316

Commission income
Compensation income

2,112
―

Other

49,77364,662

Total non-operating income

126,585

241,956

Interest expenses
Share of loss of entities accounted for using equity
methodOther467,336

579,811―362,229

28,30836,755

Total non-operating expenses

495,644
311,331

978,796

Gain on sale of non-current assets
Gain on step acquisitions

360
―

―
337,057

Total extraordinary income

360

337,057

Net sales

Operating income
Non-operating income

175
76,940
10,316
1,669
80,000Non-operating expenses

Ordinary income

524,548

Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

14,26014,646599,1113,000

149,738―

Loss on outlet shutdown
Other

―
932

21,705
4,471

Total extraordinary losses

617,305

190,562(305,613)

671,043

Impairment losses
Loss on store closings

Net income (loss) before income taxes

90,034

165,118

Income taxes - deferred

749,303(127,026)

Total income taxes

839,338

38,091(1,144,952)

632,951(3,306)―(1,141,646)

632,951

Income taxes - current

Net income (loss)
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of parent
company- 9 -Consolidated statement of comprehensive income

Net income (loss)
Other comprehensive income

FYE March 2023
(April 1, 2022 to March 31,
2023)(1,144,952)(Thousands of yen)FYE March 2024
(April 1, 2023 to March 31,
2024)
632,951(1,329)(50,086)

3,501(68,270)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent company
Comprehensive income attributable to non-controllinginterests- 10 -

5,155

11,144(46,260)(53,624)(1,191,213)

579,327(1,187,906)

579,327(3,306)―(3)Consolidated statement of changes in equity

FYE March 2023 (April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders’ equity
CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity2,210,380

4,813,515

5,936,804(2,514,753)

10,445,945

999,976

999,976

Share capital
Balance at beginning of
periodChanges during period
Issuance of newsharesDividends ofsurplus
Loss attributable toowners of parent
company
Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period1,999,952(151,106)(151,106)(1,141,646)(1,141,646)

999,976

999,976(1,292,752)―

707,199

3,210,356

5,813,491

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

11,153,145

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance at beginning of
period

6,176

Total
Foreign
Remeasurements accumulated
currency
otherof defined benefit
translationplanscomprehensive
adjustment
income(95,557)(37,934)(127,316)

Shareacquisitionrights

Noncontrollinginterests

―

3,306

Total net
assets10,321,936

Changes during period
Issuance of newsharesDividends ofsurplus
Loss attributable toowners of parent
company
Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period1,999,952(151,106)(1,141,646)(1,329)(50,086)

5,155(46,260)

11,673(3,306)(37,893)(1,329)(50,086)

5,155(46,260)

11,673(3,306)669,305

4,846(145,643)(32,779)(173,576)

11,673―

10,991,242- 11 -

FYE March 2024 (April 1, 2023 to March 31, 2024)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
period3,210,356

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity5,813,491

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

11,153,145

Changes during period
Dividends ofsurplusProfit attributable toowners of parent
Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period(145,505)(145,505)

632,951

632,951――

487,446―

487,446

3,210,356

5,813,491

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

11,640,592

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period4,846

Foreigncurrencytranslation
adjustment(145,643)

Total
Remeasurements
accumulated
otherof defined benefit
comprehensive
plansincome(32,779)(173,576)

Share
acquisitionrightsTotal net assets

11,673

10,991,242

Changes during period
Dividends ofsurplusProfit attributable toowners of parent
Net changes in
items other thanshareholders’ equity
Total changes during
periodBalance at end of
period(145,505)
632,951(53,624)3,501(68,270)

11,144(53,624)3,501(68,270)

11,144(53,624)―

433,8218,348(213,914)(21,634)(227,201)

11,673

11,425,064- 12 -

(4)Consolidated statement of cash flows

FYE March 2023
(April 1, 2022 to March 31,
2023)
Cash flows from operating activities
Net income (loss) before income taxes(Thousands of yen)FYE March 2024
(April 1, 2023 to March 31,2024)(305,613)

671,043

2,233,037
599,1112,429,340
149,738

3,000
33,799―26,455644,840

565,859

193,572

120,139―

21,705(360)
14,260―14,646

Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on step acquisitions(9,260)467,336(8,367)
579,811―362,229―

Decrease (increase) in trade receivables
Decrease (increase) in inventories(193,195)
8,016(337,057)(150,946)

Decrease (increase) in prepaid expenses
Increase (decrease) in trade payables(55,210)(6,002)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses

255,823
57,036

Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes

29,424

181,828
26,599(337,793)

337,793(1,118,243)

273,030

Depreciation
Impairment losses
Loss on store closings
Increase (decrease) in retirement benefit liability
Increase (decrease) in long-term accounts payable other
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on store
closings
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets(52,186)(7,253)
2,396
116,857

Other(157,455)(120,254)

Subtotal

2,356,122

5,203,409

329

290

Interest paid
Income taxes refund (paid)(467,158)(274,354)(581,477)
209,583

Cash flows from operating activities

1,614,938

4,831,805

Interest and dividends received- 13 -

FYE March 2023
(April 1, 2022 to March 31,
2023)
Cash flows from investing activities
Purchase of shares of subsidiaries and associates(Thousands of yen)FYE March 2024
(April 1, 2023 to March 31,
2024)(1,616,497)―

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(2,583,976)
360(2,247,150)―

Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Proceeds from collection of long-term loans
receivable
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other(117,852)(256,217)(265,169)(597,209)

314,688

165,723

71,87568,275―(1,622,901)(51,069)(21,768)(4,238,687)(4,520,199)

Cash flows from investing activities
Cash flows from financing activities

1,150,000(600,000)

1,200,000(2,223,084)

3,400,000(2,303,084)

1,494,288―

1,978,633―

Repayments of lease liabilities
Proceeds from issuance of share acquisition rights(653,448)
11,673(747,322)―

Dividends paid
Proceeds from sale and leaseback transactions(152,235)
551,489(145,267)
831,732(6,682)―

Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

3,350,634

436,057(50,086)(68,270)

676,799

679,393

Cash and cash equivalents at beginning of period

4,855,796

5,532,596

Cash and cash equivalents at end of period

5,532,596

6,211,989

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of convertible-bond-typebonds with share acquisition rights
Proceeds from issuance of shares

Other- 14 -

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Segment Information, Etc.)(Segment Information)[Segment Information]
This information is omitted because the Group’s only reportable segment is the “sports club management business.”[Related information]FYE March 2023 (April 1, 2022 to March 31, 2023)
1 Information by product and service
This information is omitted because net sales to external customers in the “sports club management business” exceed
90% of net sales in the consolidated statement of income.
2

Information by region(1) Net sales
This information is omitted because net sales to external customers in Japan account for more than 90% of net sales
in the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of
the amount of property, plant and equipment on the consolidated balance sheet.

3

Information by major customer
No sales to external customers account for 10% or more of the net sales on the consolidated statement of income.

FYE March 2024 (April 1, 2023 to March 31, 2024)
1 Information by product and service
This information is omitted because net sales to external customers in the “sports club management business” exceed
90% of net sales in the consolidated statement of income.
2

Information by region(1) Net sales
This information is omitted because net sales to external customers in Japan account for more than 90% of net sales
in the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of
the amount of property, plant and equipment on the consolidated balance sheet.

3

Information by major customer
No sales to external customers account for 10% or more of the net sales on the consolidated statement of income.

[Information on impairment losses on fixed assets by reportable segment]
FYE March 2023 (April 1, 2022 to March 31, 2023)
This information is omitted because the only reportable segment is the “sports club management business.”
FYE March 2024 (April 1, 2023 to March 31, 2024)
This information is omitted because the only reportable segment is the “sports club management business.”[Information on amortization of goodwill and unamortized balance by reportable segment]
FYE March 2023 (April 1, 2022 to March 31, 2023)
This information is omitted because the only reportable segment is the “sports club management business.”
FYE March 2024 (April 1, 2023 to March 31, 2024)
This information is omitted because the only reportable segment is the “sports club management business.”[Information on gain on negative goodwill by reportable segment]
FYE March 2023 (April 1, 2022 to March 31, 2023)
Not applicable.
FYE March 2024 (April 1, 2023 to March 31, 2024)
Not applicable.

- 15 -

(Per share information)FYE March 2023
(April 1, 2022 to March 31,
2023)

FYE March 2024
(April 1, 2023 to March 31,
2024)

Net assets per share

475.41 yen

498.37 yen

Net income (loss) per share(60.44) yen

32.45 yen

Diluted net income per share―

30.47 yen

(Notes) 1.
2.

Diluted net income per share for the fiscal year ended March 31, 2023, is not shown, because a loss per share
was recorded, although there are dilutive shares.
The basis for calculating net income (loss) per share is as follows:
FYE March 2023
(April 1, 2022 to March 31,
2023)

FYE March 2024
(April 1, 2023 to March 31,
2024)

Net income (loss) attributable to owners of parent
company (thousand yen)

(1,141,646)

632,951

Amount not attributable to common shareholders(thousand yen)―

19,999(Preference dividend (thousand yen))―(19,999)

Net income (loss) attributable to owners of parent
company related to common stock (thousand yen)

(1,141,646)

612,952

Average number of common stocks during the period(shares)

18,888,294

18,888,294

Net profit attributable to owners of parent adjustments(thousand yen)―

10,435(Interest expenses (after deducting the amount of taxes(thousand yen))―(10,435)

Increase in common shares (shares)―

1,569,000

Net income (loss) per share

Diluted net income per share

Class A shares issued on
January 23, 2023
Shares in which commonshares are converted
2,092,000 shares
Outline of diluted shares excluded as anti-dilutive in thecalculation of diluted net income per share- 16 -―

2nd Share Acquisition
Rights issued on January
23, 2023
Number of shareacquisition rights
15,690(1,569,000 common shares)

(Significant subsequent events)
Resolution on an absorption-type merger of a consolidated subsidiary
The Company resolved at its meeting of the Board of Directors held on May 10, 2024, to conduct an absorption-type merger
with Sports Oasis Co., Ltd., a consolidated subsidiary of the Company, where the Company is the surviving company and Sports
Oasis Co., Ltd. is the absorbed company, effective April 1, 2025.
Outline of Transaction(i)Name and business of absorbed company
Sports Oasis Co., Ltd. (Management of sports clubs, etc.)(ii) Date of business combination
April 1, 2025(iii) Method of business combination
Absorption-type merger where the Company is the surviving company and Sports Oasis Co., Ltd. is the absorbed
company(iv) Name of company after business combination
Renaissance Inc.
(v) Purpose of business combination
The Company is striving to gain a record-high profit in FY2027 and become the leading company of theintegrated sports club industry as stated in the medium-term management plan, which was announced on May 10,2024. The merger with Oasis will strengthen the Company’s business foundation from the perspectives of
optimum group management and efficient use of management resources, while preparing us to achieve the new
growth and medium-term management targets, with a purpose to develop into a “health solution company thatenriches the age of the 100-year life span.”(vi) Details of allotment in relation to merger
There will be no issuance of new shares and delivery of money due to the merger.
(vii) Absorbed company’s financial position and management results for the previous fiscal year
Total assets

8,186,502 thousand yen

Total liabilities

5,750,513 thousand yen

Total net assets

2,435,989 thousand yen

Net sales

17,144,702 thousand yen- 17 -