RESOL HOLDINGS Co.,Ltd.

The performance of core businesses such as Hotel Operations Business and Golf Operations Business is affected by changes in economic conditions, corporate earnings, personal income, interest rates and other financial conditions. Deterioration in these external conditions may impact business results and financial position. As a countermeasure, the company adopts a policy of mutual profit complementation while leveraging synergies among its six businesses.

Due to the effects of climate change caused by global warming, natural disasters such as typhoons, torrential rains and extreme heat are becoming more frequent and severe, raising concerns about significant declines in facility utilization rates at hotels and golf courses and increased renovation costs for golf courses and facilities. When utilization rates decline, the company aims to secure earnings through implementing various measures, converting fixed costs to variable costs, and improving productivity.

The core Hotel Operations Business and Golf Operations Business depend on inbound demand, and a decrease in the number of visitors to Japan due to changes in economic conditions, exchange rates, political backgrounds, natural disasters, epidemics and other environmental changes directly affects business performance. As a countermeasure, the company implements promotional measures tailored to traveler characteristics and seeks to complement this with customer acquisition from other countries and domestically.

There are numerous strong competitors in each of the Hotel Operations Business, Golf Operations Business, RESOL no Mori Business, and Well-being Business, and there is a risk that business advantages could be lost if the company is unable to continue developing new facilities or new menus, or due to intensifying price competition. The company aims to strengthen its competitiveness through differentiation utilizing know-how, customer base, group network, and inter-business synergies cultivated over many years.

The Hotel Operations Business, Golf Operations Business, RESOL no Mori Business, and Well-being Business each hold large amounts of customer information, and if an information leak occurs, it could result in a loss of corporate trust and adversely affect business results and financial position. The company is strengthening its internal management system through enhanced security measures, restricting access to information, and thorough employee training.

Although a 24-hour security monitoring system for network equipment at key sites was established during fiscal 2024, there remains a possibility that information system failures caused by external cyberattacks, natural disasters or accidents exceeding expectations, or power and communications infrastructure outages could disrupt business operations. The company is strengthening its countermeasures through cybercrime response utilizing communication networks, establishing system operation frameworks, and thorough information management.

The company holds fixed assets such as tangible fixed assets, software, and goodwill in businesses including Hotel Operations Business, Golf Operations Business, and RESOL no Mori Business, and if impairment occurs due to changes in business plans or market conditions, it could impact business results and financial position. The company applies impairment accounting and conducts appropriate impairment processing after examining recoverability, taking into consideration appraisals by real estate appraisers.

Stable talent acquisition and development are essential for continued business expansion and growth, and insufficient hiring of excellent personnel or delays in development could slow business expansion and adversely affect business results and financial position. The company is strengthening its recruitment and talent development systems and expanding investment in human capital, while also working on improving operational efficiency through DX and AI utilization.