Risk of facility shutdowns due to natural disasters and fire

「During the interim consolidated accounting period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the interim consolidated accounting period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the nine-month period ended in the third quarter, there was no occurrence of any new business or other risk, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」

「During the second quarter of the current consolidated cumulative period, there were no new business or other risks, and no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「Based on requests to suspend operations issued in certain areas, 9 locations were temporarily closed, but the effects were limited compared with the cumulative second quarter of the previous fiscal year, when all 97 locations were temporarily closed.」

「Based on requests to suspend operations issued in certain areas, 9 locations were temporarily closed, but the effects were less severe than in the cumulative first quarter of the previous fiscal year, when all 97 locations were temporarily closed.」

「Due to the spread of the novel coronavirus infection, all 97 sports club locations were temporarily closed from 18 April 2020, with some locations closing before 18 April. All locations resumed operations on 6 June, although some resumed operations before 6 June. A state of emergency was declared again in April 2021, and operations were subject to restrictions including reduced hours. The hotel business was also expected to be affected to some extent in the fiscal year ending March 2022 if requests to refrain from going out and other travel restrictions were imposed.」

「During the cumulative third quarter of the consolidated fiscal year, temporary closures due to requests to suspend operations caused sports club business sales to decline 44.2% year on year. The hotel business was also affected by requests to refrain from going out and lower occupancy rates and accommodation rates at nearby lodging facilities due to fewer visitors to Japan, resulting in a 29.6% year-on-year decline in business sales.」

「During the second quarter of the consolidated fiscal year, temporary closures due to requests to suspend operations caused sports club business sales to decline 48.8% year on year. The hotel business was also affected by requests to refrain from going out and lower occupancy rates and accommodation rates at nearby lodging facilities due to fewer visitors to Japan, resulting in a 37.5% year-on-year decline in business sales.」

「The Group recognizes that, if an unknown infectious disease spreads and a state of emergency is declared, requests to suspend operations may make it difficult to provide services in the sports club business, while requests to refrain from going out may reduce accommodation demand in the hotel business, lowering occupancy rates and room rates and potentially affecting the Group’s business results. During the first quarter of the consolidated fiscal year, temporary closures due to requests to suspend operations caused sports club business sales to decline 66.5% year on year. The hotel business was also affected by requests to refrain from going out and lower occupancy rates and accommodation rates at nearby lodging facilities due to fewer visitors to Japan, resulting in a 47.0% year-on-year decline in business sales.」

「If a major natural disaster, such as a large earthquake or flood, occurs, if facilities and other assets are extensively damaged by fire or other causes, or if an unknown infectious disease spreads and a state of emergency is declared, the Group will operate its facilities safely and securely to the extent possible. However, in the sports club business, the provision of services may become difficult due to requests to suspend operations, while in the hotel business, demand for accommodation may decline due to requests to refrain from going out, reducing occupancy rates and room rates and potentially affecting the Group’s business results.」

「There were no newly arising business or other risks during the cumulative first nine months of the consolidated fiscal year. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter of the fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the preceding fiscal year.」

「During the first three quarters, there were no newly arising business or other risks, and no material changes were made to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the second quarter of the current consolidated fiscal year-to-date period, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative first quarter of the fiscal year, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the preceding fiscal year.」

「If a major natural disaster, such as a large earthquake or flood, occurs, or if facilities and other assets are extensively damaged by fire or other causes, making it difficult to provide services, the Group’s business results may be affected by factors including the suspension of operations.」

「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「If a major natural disaster, such as a large earthquake or flood, occurs, or if facilities and other assets are extensively damaged by fire or other causes, making it difficult to provide services, the Group’s business results may be affected by factors including the suspension of operations.」

「The Kumamoto earthquake resulted in a one-month closure of 2 locations and the incurrence of repair expenses, including costs to restore the facilities to their original condition. The effects were limited, and membership at the 2 Kumamoto locations had exceeded pre-earthquake levels.」

「The Kumamoto earthquake resulted in a one-month decline in sales during the closure period of Holiday Sports Club Kumamoto Kita and Holiday Sports Club Kumamoto Nagamine, as well as the recognition of repair expenses, including costs to restore the facilities to their original condition. These effects were within the initially projected figures, and membership had recovered to pre-earthquake levels.」

「The Kumamoto earthquake resulted in a one-month decline in sales during the closure period of Holiday Sports Club Kumamoto Kita and Holiday Sports Club Kumamoto Nagamine, as well as the recognition of repair expenses, including costs to restore the facilities to their original condition. These effects were within the initially projected figures, with no significant deviation.」

「If a major natural disaster, such as a large earthquake or flood, occurs, or if facilities and other assets are extensively damaged by fire or other causes, making it difficult to provide services, the Group’s business results may be affected by factors including the suspension of operations.」