Enhancing synergies across businesses, including the 3 existing businesses and Jeep

「As the yen's depreciation continued to keep import prices for overseas golf clubs high, the Company further expanded its range of proprietary products with high profit margins. In addition, it worked with ノア, the Group's digital company, to improve its own e-commerce site and strengthen its customer acquisition and promotional capabilities.」

「The Group Digital Promotion Office and AI Utilization Research Institute, both established in the previous fiscal year, became fully operational, and the Company advanced digital transformation within the Group. Going forward, the Company will continue to capture strong IT and AI development demand, further increase sales and provide value to customers.」

「The Group Digital Promotion Office and the AI Utilization Research Institute, which were established in the previous fiscal year, became fully operational, and we advanced DX initiatives across the Group.」

「Sales at 株式会社ノア, which operates a digital transformation promotion business and an SES business, continued to perform well. During the fiscal year, the Group Digital Promotion Office was established, and the Group has been promoting digital transformation internally in parallel with the AI Utilization Research Institute. In addition, the Company conducted AI utilization training for working adults jointly with a major IT vendor, generating revenue from the program.」

「株式会社ノア operates a digital transformation promotion business and an SES business. By utilizing its skills and experience, it is expected to provide significant impetus to the Group's efforts to promote digital transformation in the golf industry. Going forward, the Group will particularly utilize the AI technologies in which 株式会社ノア specializes to expand and improve the quality of the services it provides.」

「In particular, エスプリ・ゴルフ, which joined the Group in February, enables the Company to operate highly distinctive overseas major-championship viewing tours, including the Masters, and provide experiences unavailable elsewhere.」

「① The Company will seek to increase revenue and profit by further strengthening cooperation among the Group companies and creating new services. ② The Company will seek to improve profit margins by making effective use of assets held by the Group companies and improving management efficiency.」

「The Company also implemented initiatives designed to create new communities among golfers, including newly operating golf tours for members.」

「Accordingly, the Company focused on domestic package tours and planned and operated domestic golf trips tailored to each theme, as well as bus tours for foreign residents in Japan.」

「Value Golf Osaki became increasingly recognized as a multifunctional facility offering not only indoor lessons but also an adjoining golf shop, and membership remained solid. In particular, demand for testing and fitting new products increased, synergies began to emerge and profitability improved substantially.」

「The Company is building a platform that will make it easier for registered members (users) of each service to use all services provided by the Group. By unifying registered members (users) and enabling them to use the services interchangeably, the Company will enhance the Group's growth potential.」

「In its golf tour planning, the Company operated the "Two-Person Booking Trip: Nagasaki" in October and received approximately twice as many applications as the number of places available, giving it a strong sense that users' appetite for travel had recovered.」

「Participation in "One-Person Booking Trip," "VG Camp" and "International VG CUP" also grew steadily. In September, the Company newly planned and operated the first 産経旅行 CUP.」

「The product was developed as part of a business synergy project launched in response to feedback from members acquired through the golf business who wanted to remain healthy enough to play golf indefinitely. Promotion was therefore initially limited to those members. After gaining confidence in expanding services related to health and pre-emptive healthcare, the Company expanded the promotional target and began selling the product to non-members as well.」

「The Company also operated the golf trips "One-Person Booking Trip," "VG CAMP" and "International VG Cup" in cooperation with the golf business. Each of these golf trips attracts many repeat participants, and the Company has received requests to increase the number of trips operated. It has also continued coordinating with the golf courses and accommodation facilities hosting the trips.」

「In addition, grouping the travel company within the Group broadened the range of dates and destinations available, enabling the provision of services that better meet customer needs. Profit margins also improved through synergies with the golf business.」

「During the third quarter of the fiscal year, the Company operated golf trips such as "VG CAMP," the "International VG Cup" and "One-Person Booking Trips." It also made progress in planning medical tourism in cooperation with the medical business, allowing full-scale synergies between the businesses to emerge.」

「株式会社産経旅行 specializes in providing travel and arrangement services for foreign residents in Japan, with foreign staff serving as the point of contact, and handles travel and business-trip arrangements for approximately 40,000 people or more annually. It also provides inbound services, such as handling procedures when the families of foreign residents in Japan visit the country. The company has expertise to address inbound demand in the Group's existing golf and medical businesses, and we believe it can generate highly effective synergies.」

「We aim to further expand the Group's business areas and strengthen medium- to long-term growth by bringing existing travel services in the golf business in-house and developing new services in the golf and medical businesses.」

「The Company also acquired an indoor golf school business and launched it as 「バリューゴルフ大崎」.」

「By acquiring the indoor golf school 「e-golf stadium 大崎」, we expect to expand the Group's service lineup and generate synergies with existing services. The business combination date was 1 September 2017, and the legal form was a business transfer.」

「We will accelerate growth in the golf business by leveraging synergies between our existing golf business and its golf-equipment sales business. We will also implement measures to further enhance synergies among the 3 businesses mentioned above.」