Risk of Reduced Business Activity and Demand Due to the COVID-19 Pandemic

「In the Health Industry business, fitness membership has gradually recovered from the previous fiscal year, while the company has continued to reduce costs through efficient operations. Revenue was ¥2,601 million, down 0.5% year on year, and segment profit was ¥128 million, compared with a segment loss of ¥204 million in the previous fiscal year, including an impairment loss of ¥145 million.」

「In the Health Industry business, fitness membership has gradually recovered since COVID-19 was reclassified as a Class 5 disease, while the company has continued to reduce costs through efficient operations. Revenue was ¥1,311 million, up 2.0% year on year, and segment profit was ¥259 million, compared with a segment loss of ¥24 million in the same period of the previous year.」

「In the health business, revenue was ¥659 million, up 2.8% year on year, and segment profit was ¥20 million, compared with a segment loss of ¥11 million in the previous corresponding period, as fitness membership recovered gradually following the reclassification of the novel coronavirus disease to Class 5 and the company continued to operate efficiently.」

「In the health business, revenue rose 12.8% year on year to ¥2,614 million due to the lingering impact of the novel coronavirus disease notwithstanding the decline in the locations and periods subject to closures and reduced operating hours, the resulting increase in operating days, higher monthly membership fees and an increase in membership. However, the segment loss widened to ¥204 million from ¥71 million in the previous fiscal year due to the impact of higher fuel costs and the recognition of an impairment loss of ¥145 million following a revision of the future profit plans for each location in the assessment of fixed assets.」

「In the health business, membership was recovering as restrictions on activity related to the novel coronavirus disease were eased, but the pace of recovery remained slow and membership had not returned to pre-pandemic levels due to the impact of the seventh wave, which resulted in the highest number of infections to date. Revenue was ¥1,285 million, up 22.6% year on year, and the segment loss was ¥24 million, compared with a segment loss of ¥112 million in the year-earlier period.」

「In the health business, membership was recovering due to the absence of restrictions on activity such as priority preventive measures and a decline in the number of infections, but the pace remained slow and membership had not returned to pre-pandemic levels. Revenue was ¥641 million, up 37.3% year on year, and the segment loss was ¥11 million, compared with a segment loss of ¥105 million in the year-earlier period.」

「Membership increased from the previous fiscal year, but the recovery trend was slow and conditions remained difficult because some locations were closed or operated for shorter hours due to repeated extensions of states of emergency and the implementation of priority preventive measures. Against this backdrop, revenue rose 15.4% year on year to ¥2,317 million due to continued thorough infection prevention measures, efficient operations in line with the new lifestyle, the more limited locations and periods subject to closures and reduced operating hours, the increase in operating days, and higher monthly membership fees. The segment loss narrowed to ¥71 million from ¥972 million in the previous fiscal year.」

「The health business operates 7 full-service fitness clubs, 5 women-only hot yoga and collagen studios, and 18 compact gyms in the Kanto region. Membership increased from the year-earlier period due to continued thorough infection prevention measures, efficient operations in line with the new lifestyle, and the lifting of the state of emergency declarations. However, the recovery trend was slow and conditions remained difficult because some locations were closed or operated for shorter hours due to repeated extensions of states of emergency and the implementation of priority preventive measures. Against this backdrop, revenue rose 22.4% year on year to ¥1,679 million, due to the more limited locations and periods subject to closures and reduced operating hours, the increase in operating days, and higher monthly membership fees. The segment loss narrowed to ¥100 million from ¥906 million in the year-earlier period.」

「In the second quarter, the company continued to implement thorough infection prevention measures and operate efficiently in line with the new lifestyle. Membership increased from the year-earlier period, partly because COVID-19 vaccinations progressed, but the recovery trend was slow and conditions remained difficult because some locations were closed or operated for shorter hours due to repeated extensions of states of emergency and the implementation of priority preventive measures. However, because the locations and periods subject to closures and reduced operating hours were more limited than in the year-earlier period, increasing operating days, revenue rose 39.8% year on year to ¥1,048 million, and the segment loss narrowed to ¥112 million from ¥460 million in the year-earlier period.」

「In the first quarter, the company continued to implement thorough infection prevention measures and operated efficiently in line with the new lifestyle. Membership was on a recovery trend, but conditions remained difficult because some locations were closed or operated for shorter hours following state of emergency declarations and the implementation of priority preventive measures. However, because the locations and periods subject to closure requests were more limited than in the year-earlier period, increasing operating days, revenue rose 122.7% year on year to ¥467 million, and the segment loss narrowed to ¥105 million from ¥326 million in the year-earlier period.」

「The health business operates 7 full-service fitness clubs, 5 women-only hot yoga and collagen studios, and 18 compact gyms in the Kanto region. Following the government's state of emergency declaration, the facilities were closed from early April 2020 through the end of May, but operations resumed in June after thorough infection prevention measures were implemented. However, infections began to spread again from late November, and membership continued to decline, partly due to the second state of emergency declaration issued in January 2021. Revenue consequently fell well below the previous fiscal year's level to ¥2,008 million, down 38.1% year on year. In addition, following the prolonged impact of the novel coronavirus disease, the company revised its future profit plans for each location when assessing fixed assets and consequently recognized an impairment loss of ¥346 million, compared with ¥843 million in the previous fiscal year. As a result, the segment loss was ¥972 million, compared with a segment loss of ¥576 million in the previous fiscal year.」

「The health business operates 7 full-service fitness clubs, 6 women-only hot yoga and collagen studios, and 18 compact gyms in the Kanto region. Following the government's state of emergency declaration, the facilities were closed from early April through the end of May, but operations resumed in June after thorough infection prevention measures were implemented. However, infections began to spread again from late November, and as of the end of December, the number of enrolled members excluding those on leave was approximately 70% of the year-earlier level. Revenue therefore fell well below the year-earlier level to ¥1,372 million, down 46.3% year on year. In addition, following the prolonged impact of the novel coronavirus disease, the company revised its future profit plans for each location when assessing fixed assets and consequently recognized an impairment loss of ¥346 million. As a result, the segment loss was ¥906 million, compared with a segment profit of ¥114 million in the previous corresponding period.」

「The results for the first 6 months of the current consolidated fiscal year were significantly affected by the spread of the novel coronavirus disease. Revenue was ¥20,975 million, down 13.2% year on year; operating profit was ¥1,086 million, down 40.5%; profit before tax was ¥1,193 million, down 40.1%; and profit attributable to owners of the parent was ¥462 million, down 67.0%.」

「The results for the first 3 months of the current consolidated fiscal year were significantly affected by the spread of the novel coronavirus disease. Revenue was ¥10,558 million, down 15.1% year on year; operating profit was ¥569 million, down 42.7%; profit before tax was ¥673 million, down 40.6%; and profit attributable to owners of the parent was ¥252 million, down 68.0%.」

「The health business was severely affected by the spread of the novel coronavirus disease. Its performance deteriorated significantly due to a decline in revenue and the recognition of an impairment loss of ¥843 million.」