Entry into new business areas to become the fourth and fifth pillars

「Monetization of the real estate business begins」

「Monetization was delayed because the sale of this site resulted in the contract being concluded in the fiscal year ending January 2027. However, based on the expertise acquired through this project, we will continue working to secure new projects.」

「To further increase corporate value, the Company decided to enter the real estate business during the first quarter and acquired a real estate site in June.」

「Against this backdrop, our Group sought to enhance corporate value by promoting further expansion of the golf business centered on 1-Person Reservation Land and differentiation in the travel business, including through the acquisition of shares in 2 new companies.」

「株式会社エスプリ・ゴルフ provides travel services centered on domestic and international golf tours. It has strong connections with prestigious golf courses in Japan and around the world and has provided high-value-added golf tours, including Masters spectator tours, for many years. We therefore believe it can generate effective synergies by expanding and enhancing the quality of the existing travel business's services.」

「On 1 February 2024, the Company acquired all shares of 株式会社エスプリ・ゴルフ (Musashino, Tokyo; Representative Director 武井 雅子).」

「At a meeting of the Board of Directors held on 14 December 2023, the Company resolved to acquire all shares of 株式会社エスプリ・ゴルフ and make it a subsidiary, and entered into a share transfer agreement on the same date. …Business combination date: 1 February 2024 (予定)…Voting rights acquired: 100%」

「We focused on planning and operating golf trips tailored to each theme and bus tours for foreign residents in Japan. In addition to individual travel, we also focused on group and corporate travel and actively arranged various services for companies receiving trainees from overseas. These initiatives supported steady performance in the travel business, with travel transaction volume increasing 20.1% year on year.」

「Accordingly, the Group also actively planned and operated domestic package tours and bus tours for foreign residents in Japan. As the sharp depreciation of the yen is expected to further increase demand for travel to Japan, we will also strengthen air-ticket sales.」

「Accordingly, we focused on planning and operating domestic golf trips tailored to each theme and bus tours for foreign residents in Japan. Anticipating a further recovery in demand from summer through winter, we strengthened planning for various tours and procurement.」

「Accordingly, we prepared for travel demand expected to recover sharply from summer onward, including by developing new travel products.」

「Amid restrictions on people's movement to prevent the spread of COVID-19, we relocated our head office, suspended operations, and pursued further cost reductions. As overseas routes remained suspended, we focused on domestic package tours and planned and operated small-group domestic golf tours and bus tours. We also continued selling specialty products from across Japan, leveraging the network developed through the travel business. Anticipating a sharp recovery in demand after COVID-19 subsides, we prepared for the future, including by strengthening procurement.」

「In the travel business, as air routes were suspended to prevent the spread of COVID-19, we strengthened domestic package tours and operated bus tours for foreign residents in Japan and domestic golf tours after implementing thorough infection-prevention measures. In addition, we launched sales of specialty products from across Japan as a new service, leveraging the network developed through the travel business.」

「In the travel business, as flight cancellations continued, we focused not only on arranging air tickets but also on planning and selling package tours, mainly golf and group tours. Using the Go To Travel program launched in July, we increased bus tours for foreign residents in Japan to a pace of 20 per month. Tours were marketed under operating procedures designed to prevent COVID-19 infection, including limits on passenger numbers and thorough ventilation, and were sold out across the board. In golf-tour planning, we operated 「２人予約旅長崎」 in October and received approximately twice the number of applications as the available capacity, giving us a clear sense that users' appetite for travel was recovering.」

「We strengthened management, improved operational efficiency using IT, and pursued thorough cost reductions, while resuming organized tours such as golf trips and bus tours after implementing thorough infection-control measures. We also prepared campaigns using the Go To Travel program and, looking beyond the resolution of the situation, pursued sales activities for group-travel contracts with cooperatives and developed new products in parallel.」

「In the travel business, our proprietary bus tours for foreign residents in Japan have performed steadily, with more than 50 tours operated and total participation exceeding 2,000. 「１人予約旅」, 「VGキャンプ」 and 「海外VG CUP」 also continued to attract participants, and in September we planned and operated the new 「第１回産経旅行CUP」.」

「Our proprietary bus tours for foreign residents in Japan, launched last year, have grown steadily, with 30 tours operated and total participation exceeding 1,000. 「海外VGカップ」 and 「１人予約旅」, offered to members acquired through the golf business, have also continued to attract participants. In response to requests for more golf tours, we have planned and prepared a new 「産経旅行CUP」, scheduled to be held in September.」

「The Company focused on strengthening management and improving operational efficiency to develop the travel business centered on 株式会社産経旅行, acquired in August 2018, into a new pillar alongside the golf business.」

「We will build a new business pillar following the golf and travel businesses and aim to increase revenue and profit.」

「During the first 3 quarters of the current fiscal year, the Company acquired shares of 株式会社日本旅行協会 and 株式会社産経旅行, made them subsidiaries, and launched its travel business.」

「On 1 August 2018, the Company acquired all shares of 株式会社産経旅行 (Chuo-ku, Tokyo). The purpose of this business combination is to bring existing travel services in the golf business in-house, develop new services in the golf and medical businesses, further expand the Group's business areas, and strengthen medium- to long-term growth.」

「In addition, to strengthen travel-related services as a new business pillar, the Company acquired all shares of 株式会社日本旅行協会 and made it a subsidiary, and entered into a business alliance agreement with 株式会社産経旅行 and began negotiations toward a capital alliance. We regard these measures as essential upfront investments for the Group's growth into its next stage and have begun implementing them.」

「We will strengthen medium- to long-term growth by in-house development of travel services in the existing golf business and by building a new business pillar. Date of share acquisition: 1 February 2018 (予定). Acquisition price: ¥3 million. Ownership after acquisition: 100%.」

「We believe that entering new business areas that could become the fourth and fifth pillars is essential to increasing the Group's value. As we expand our business areas, we will pursue a more multilayered business development strategy, subject to conditions including the effective use of our existing management resources and the prospect of synergies between businesses.」