Risk of Business Suspension Due to Natural Disasters and Infectious Diseases

「熊本県内で運営する「スポーツクラブ＆サウナスパ ルネサンス 熊本南 24（熊本市）」「スポーツクラブ＆サウナスパ ルネサンス 熊本学園大通 24（熊本市）」「スポーツクラブ＆サウナスパ ルネサンス 熊本光の森 24（菊陽町）」において、一部内装の損傷の被害が発生しております。上記３店舗は、お客様及び従業員の安全確保、並びに館内設備の安全確認のため７月 29 日から７月 31 日まで臨時休業し、営業再開に向けて準備を進めてまいります。」

「To enable our facilities to continue operating in the event of a natural disaster, we conduct facility inspections and maintenance at least once a year, as well as renovation work where necessary. We are also strengthening cooperation with business partners involved in facility maintenance and management to enable early restoration following a natural disaster.」

「During the consolidated fiscal year, sports club facilities in Tokyo, Osaka, Kyoto and Hyogo were closed in response to requests from local authorities to suspend operations following the declaration of a state of emergency due to the spread of COVID-19.」

「During the cumulative second quarter period from 1 April to 30 September 2021, sports club facilities in Tokyo, Osaka, Kyoto and Hyogo were closed in stages between 25 April and 31 May in response to requests from local authorities to suspend operations following the spread of COVID-19. In Vietnam, 2 facilities have also been closed since 5 May in accordance with instructions from the authorities.」

「As the spread of COVID-19 led to the issuance of a third state of emergency, sports club facilities in Tokyo, Osaka, Kyoto and Hyogo were closed in stages between 25 April and 31 May in response to requests from local authorities to suspend operations. In Vietnam, 2 facilities were also closed in stages from 5 May onward in accordance with instructions from the authorities.」

「During the first quarter of the consolidated fiscal year, all of our facilities other than rehabilitation facilities such as Genki Gym were closed in response to requests from local authorities to suspend operations following the declaration of a state of emergency due to the spread of COVID-19.」

「From 8 April onward, we closed all facilities other than nursing care and rehabilitation facilities in stages. Although operations resumed in June, the number of new memberships continued to decline and cancellations and membership suspensions continued to increase due to the impact of the infectious disease. Revenue was therefore ¥12,546 million, down 45.2% year on year.」

「In response to requests from local authorities to suspend operations under the state of emergency, all facilities other than nursing care and rehabilitation facilities were closed in stages from 8 April onward. As a result of the decline in new memberships and increases in cancellations and membership suspensions, revenue was ¥3,814 million, down 65.6% year on year.」

「In response to requests from local governments to suspend operations following the state of emergency declared by the government due to the spread of COVID-19, all of our facilities except rehabilitation facilities such as Genki Gym suspended operations from 8 April to 31 May 2020. The period varied depending on the areas covered by the state of emergency.」

「In June, an earthquake with its epicenter in northern Osaka Prefecture struck, damaging the commercial facility that housed Sports Club Renaissance Senri-Chuo, which closed at the end of September after being closed for slightly more than approximately 3 months. In addition, Sports Club Renaissance Suminoe, which was damaged by Typhoon No. 21, required approximately 2 months to fully restore operations after the disaster.」

「In June, an earthquake with its epicenter in northern Osaka Prefecture struck, damaging the commercial facility that housed Sports Club Renaissance Senri-Chuo, which closed at the end of September. In addition, Sports Club Renaissance Suminoe, which was damaged by Typhoon No. 21, had to close its entire facility for approximately 1 month after the disaster and resumed operations on 2 October, except in some areas.」

「The Northern Osaka Earthquake that occurred on 18 June 2018 caused significant damage to Senri CLC Building, which houses Sports Club Renaissance Senri-Chuo. The club planned to remain closed until safety could be confirmed. Fortunately, because the earthquake occurred before the start of business, there were no injuries to customers or employees. The impact on company-wide performance was considered minor at that time.」

「Aiming to restore operations as soon as possible, we promptly repaired the damaged facilities with emergency support from business partners and resumed operations approximately 10 days later, except in some areas. We were able to establish a normal operating structure 1 month after that. During the suspension, we contributed to the local community by opening showers and baths to residents who had been forced to evacuate.」

「The Kumamoto earthquakes that occurred on 14 and 16 April 2016 damaged parts of the facilities at 3 clubs: Renaissance Kumamoto and Renaissance Kumamoto Minami, both in Chuo-ku, Kumamoto, and Renaissance Oita in Oita City, Oita Prefecture. In the Kumamoto area in particular, lifelines were disrupted and strong aftershocks continued. However, aiming to restore operations as soon as possible, we promptly repaired the damaged facilities with emergency support from business partners, resumed operations approximately 10 days later except in some areas, and were able to establish a normal operating structure 1 month later.」

「However, if a large-scale natural disaster or widespread outbreak of an infectious disease such as novel influenza forced us to suspend operations for an extended period, our performance could be affected.」