Strengthening New-Location Expansion in the Health and Fitness Business

「The number of school members increased steadily as we focused on the children’s school business and expanded our capacity to accept participants.」

「In the fitness business, we are working to improve advertising methods for the children’s school business and expand capacity to accept students.」

「• Membership is trending upward (higher profit) • Strengthening the school business (higher profit)」

「In the fitness business, after closing unprofitable locations in the previous fiscal year, we focused during the current fiscal year on acquiring members by improving and expanding advertising methods for our core full-service locations. In the children’s school business, we are also working to expand capacity to accept students in addition to advertising activities. Membership increased across all formats, but revenue and profit declined because of the impact of the closures in the previous fiscal year and other factors.」

「We will provide health and fitness venues tailored to customer needs, conduct advertising to attract customers, strengthen the children’s school business at our full-service locations, and manage the business with an emphasis on profitability, with the aim of achieving an early recovery in performance.」

「In the fitness business, membership recovered gradually in both the adult and children’s school programs through active advertising and stronger capacity to accept children into the school business. Although we continue to improve operational efficiency, revenue and profit declined because of the impact of closing unprofitable locations and the fact that a remeasurement gain from the review of lease liabilities was recorded in the same period of the previous year.」

「We will also conduct effective advertising to attract customers, strengthen the children’s school business at our full-service locations, and manage the business with an emphasis on profitability. We will provide safe and secure venues for health and fitness and aim for an early recovery in performance.」

「In the health industry business, 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. Membership in the fitness business has been recovering gradually following the reclassification of COVID-19 to Class 5, while cost reductions through efficient operations have continued. Segment profit includes a ¥221 million remeasurement gain from the review of lease liabilities.」

「In the health industry business, as we work to improve profitability and strengthen downside resilience through changes in store formats and the promotion of DX, participation in fitness activities has also begun to show signs of recovery following the reclassification of COVID-19 to Class 5 under Japan’s Infectious Diseases Act.」

「In the Health Business, amid restrictions on customer movement resulting from requests to suspend operations during the COVID-19 pandemic and priority preventive measures to prevent the spread of disease, the company worked to improve profitability and strengthen resilience to downside risks by promoting digital transformation in store operations and revising its operating structure as appropriate.」

「The company primarily operates the Do Sports Plaza and Sports Club Entertainment A-1 comprehensive fitness clubs, the women-only BLEDA hot yoga and collagen studio, and the DO SMART, A-1 EXPRESS and A-1 Light GYM 24 compact gyms.」

「In the Health Business, the company will promote diverse formats aligned with the needs of the times.」

「During the period, the company newly opened 5 A-1 EXPRESS compact gyms and 1 DO SMART location.」

「During the nine-month consolidated period, the company newly opened a total of 4 A-1 EXPRESS locations in Tokyo and Kanagawa.」

「During the six-month consolidated period, the company newly opened a total of 3 A-1 EXPRESS compact gyms in Tokyo and Kanagawa.」

「The Health Business primarily operates the Do Sports Plaza and NA Sports Club A-1 comprehensive fitness clubs, the women-only BLEDA hot yoga and collagen studio, and the DO SMART and A-1 EXPRESS compact gyms.」

「During the consolidated fiscal year, the company opened 2 new BLEDA locations and made 株式会社エヌエーシーシステム, which operates 2 comprehensive fitness clubs and 10 24-hour compact gyms, a consolidated subsidiary, thereby expanding its business platform and responding to increasingly diverse and specialized customer needs.」

「As announced in the 20 December 2018 notice titled “Notice Regarding the Acquisition of Shares in 株式会社エヌエーシーシステム (Making It a Subsidiary),” the company acquired shares of 株式会社エヌエーシーシステム on 1 February 2019. The company operates 2 comprehensive fitness clubs and 9 24-hour compact gyms in Tokyo.」

「In the Health Business, the company operates the Do Sports Plaza comprehensive fitness club and the women-only BLEDA hot yoga and collagen studio. Following the opening of the BLEDA Shin-Maebashi location in April, revenue was ¥1,189 million, up 3.3% year on year, and segment profit was ¥55 million, up 29.3%.」

「In the Health Business, the company operates the Do Sports Plaza comprehensive fitness club and the women-only BLEDA hot yoga and collagen studio. Following the opening of the BLEDA Shin-Maebashi location in April, revenue was ¥591 million, up 2.7% year on year, and segment profit was ¥24 million, up 90.3%.」

「In the Health Business, the company opened the women-only BLEDA hot yoga and collagen studio Shin-Maebashi location in April,」

「In the Health Business, the company operates the Do Sports Plaza comprehensive fitness club and is expanding the women-only BLEDA hot yoga and collagen studio. It opened the BLEDA Urawa Misono location in April. Revenue was ¥1,724 million, up 4.6% year on year, while segment profit was ¥69 million, down 19.4%, due to costs associated with opening the new location and higher personnel expenses at existing locations, among other factors.」

「In the Health Business, membership at existing Do Sports Plaza comprehensive fitness clubs remained solid, and the company opened the women-only BLEDA hot yoga and collagen studio Urawa Misono location in April. Revenue was ¥576 million, up 5.6% year on year, while segment profit was ¥12 million, down 60.0%, due to costs incurred for opening the new location.」

「At 株式会社ドゥ・スポーツプラザ, which was spun off in 2015, the company will improve its management structure, promote new-store expansion through the BLEDA hot yoga and collagen studio, and strengthen its expansion strategy.」

「In the Other Businesses segment, the Health Business, which operates Do Sports Plaza, opened the second location of the women-only hot yoga and collagen studio BLEDA (Breda), the Kamisato location, in April. In October, it carried out a major renovation of the Do Sports Plaza Toyosu location to mark its 10th anniversary, securing higher revenue and profit.」

「In the Other Businesses segment, the Health Business, which operates Do Sports Plaza, opened the second BLEDA women-only hot yoga and collagen studio adjacent to the Do Sports Plaza Kamisato location, and customer acquisition remained strong.」

「In the Health Business, the company will promote new store formats centered on the key concepts of beauty, anti-aging and relaxation.」