RENAISSANCE,INCORPORATED

Business Details

This is the Company Group's sole reportable segment. Centered on the sports club business (fitness clubs, swimming, tennis, etc.), the Group operates health promotion services for local governments and municipalities (BtoG), health promotion services for corporations and health insurance associations (BtoB), long-term care and medical-adjacent businesses, a home fitness business, and an outdoor fitness business. Under its long-term vision, "A Well-being Co-creation Company for the 100-Year Life Era," the Group operates 330 facilities nationwide (as of the end of March 2026).

Recent Overview

The recording of ¥3,056 million in impairment losses and a major overhaul of the medium-term management plan are the key focal points

In FY2026 (ending March 2026), the Company recorded impairment losses of ¥3,056 million across 38 facilities, resulting in a net loss of ¥2,106 million for the period. Store closure costs (a provision for store closure losses of ¥442 million) were also recorded in a lump sum. On the other hand, sports club membership increased 1.7% YoY to 442,085. The long-term care segment was expanded through the acquisition of Kaede no Kaze as a subsidiary. As achieving the targets of the 2024-2027 Medium-Term Management Plan became difficult, the Company formulated a new "2026-2030 Medium-Term Management Plan," targeting net sales of ¥77,000 million, operating income of ¥3,500 million, and an equity ratio of 20.5% for fiscal 2030. For FY2027 (ending March 2027), the Company forecasts net sales of ¥68,000 million, operating income of ¥1,800 million, and net income of ¥500 million.

Key Products

Growth Drivers

• Continued year-on-year growth in sports club membership and higher per-member fees following the October price revision
• Expansion into the day-care long-term care segment through the acquisition of Kaede no Kaze Co., Ltd. as a subsidiary (13 directly-operated facilities and 23 franchise facilities)
• Expansion of the sports club network through the acquisition of 8 facilities from Tokyu Sports System in July 2026
• Strengthening of the long-term care rehabilitation business through the April 2026 acquisition of 5 "My Riha" facilities from Leben Community
• Strengthened corporate sales promotion for Monthly Corporate members and utilization of Sports Oasis's urban-center locations
• Earnings recovery in the home fitness business driven by the launch of new products such as "Styley Face"
• Improved earnings structure following the completion of closures and impairment processing of unprofitable facilities (response to facilities showing signs of impairment completed as of period-end)

Risks

• Intensifying competition and continued industry consolidation driven by growth in low-cost unmanned gyms and new business format entrants
• Pressure on earnings from persistently elevated utility and labor costs, among other cost items
• Future costs arising from store closures (closures of the Abeno 24 and Sumiyodo 24 locations planned for the end of June 2026)
• Risk of sluggish sales in the home fitness business (actual result of an 18.6% YoY decline)
• Risk of impairment of goodwill (¥762 million, amortized evenly over 12 years) arising from M&A such as the Kaede no Kaze acquisition, and associated PMI costs
• Financial constraints stemming from a decline in the equity ratio (17.0%) and deterioration of financial soundness
• Impact of long-term care insurance system revisions on the long-term care and medical-adjacent business
• Foreign exchange risk and operational risks associated with the Vietnam business (Renaissance Vietnam)