In the current global business environment, uncertainty remains high due to prolonged geopolitical risks, fluctuations in resource prices, and supply chain disruptions stemming from U.S. tariff measures. Domestically, Japan’s shifting landscape toward a positive interest rate environment could potentially affect financing costs. Concurrently, the yen's continued depreciation and persistent inflation are driving up raw material and energy costs, placing ongoing pressure on corporate earnings. Additionally, structural labor shortages and intensifying competition for talent are heightening pressure to increase wages, making the optimization of cost structures an urgent priority. As the officer responsible for finance, I am committed to managing these risks appropriately and responding flexibly and strategically to external changes.

Conversely, Japan’s rapidly aging population is driving unprecedented social demand for extending healthy life expectancy and improving the quality of nursing care services. We view this as a significant growth opportunity for our Group. With the government strengthening initiatives to promote "preventive healthcare" and "community-based integrated care," the market for health maintenance and nursing care support is clearly expanding. Furthermore, consumer values are shifting toward an emphasis on "health" and "well-being," leading to rising expectations for services that incorporate exercise habits and rehabilitation.

Sports clubs are evolving from mere places to exercise into hubs for health management and community building. Each of our businesses combines strong social significance with substantial growth potential. By capturing these trends and leveraging our core strength—providing "health solutions through exercise"—we aim to achieve sustainable corporate value enhancement.

Overview of Consolidated Results for the Third Quarter of FY2025

Consolidated net sales for the third quarter of FY2025 were 48.1 billion yen, 101.3% year on year. Consolidated operating profit was 890 million yen, ordinary profit was 315 million yen and profit attributable to owners of parent was 523 million yen.
Through the second quarter, profits were soft compared to the previous year. This was due to a slower-than-expected acquisition of customers in the sports club business and soft sales in the home fitness business at the beginning of the fiscal year, coupled with strategic upfront investments for future growth (including sales promotion expenses, increased personnel costs, and capital expenditure on existing facilities). However, in the third quarter alone (October to December 2025), the positive effects of these investments began to materialize. We recorded an operating profit of 831 million yen for the quarter, showing a clear recovery trend. During this period, we also incurred approximately 100 million yen in one-time expenses related to three M&A transactions.

Full-Year Outlook for FY2025

Given our performance throughout the third quarter, continued effort is required to meet our full-year targets, primarily due to the slow start in the sports club and home fitness businesses. However, supported by the recovery trend in both segments, contributions from new products, and further cost reductions, we remain strongly committed to achieving our full-year consolidated forecasts: net sales of 66.0 billion yen （103.6% year on year), operating profit of 1.7 billion (87.3% year on year), ordinary profit of 900 million yen (73.5% year on year), and profit attributable to owners of parent of 500 million yen (65.3% year on year).
We sincerely ask for your continued understanding and support.