Nippon Ski Resort Development, Co.,Ltd.

Business Details

Operates 8 ski resorts centered on Nagano, Gifu, and Gunma (4 resorts in the HAKUBA VALLEY area, plus Ryuoo, Kawaba, Meihou, and Sugadaira). Revenue is composed of lift ticket, food and beverage, rental, and other sales, with a seasonal structure heavily weighted toward the winter season. In the Green Season, the company has established a year-round operating framework using observation terraces, large-scale play equipment, and camping facilities, aiming to diversify seasonal fluctuation risk. Capturing inbound demand and cultivating the domestic kids segment serve as the growth axis.

Recent Overview

Net sales rose 8.9% year on year to ¥9,977 million, but operating profit fell 4.5% due to higher costs. Net profit rose 16.6% on gain from the sale of land at Iwatake

For the cumulative nine months ended Q3 of FY2026 (August 2025 to April 2026), net sales were ¥9,977 million (up 8.9% year on year). On the other hand, cost of sales increased from ¥4,518 million to ¥5,180 million, and SG&A expenses increased from ¥1,794 million to ¥2,077 million, resulting in a decline in operating profit to ¥2,719 million (down 4.5% year on year). Due to the recording of a gain on sale of fixed assets of ¥1,101 million (extraordinary income) from the sale of land at the base of Iwatake Resort, net profit attributable to owners of parent increased significantly to ¥2,228 million (up 16.6% year on year). Inbound visitor numbers reached a record 543 thousand (up 23.3% year on year). A fatal accident occurred at HAKUBA VALLEY Tsugaike Mountain Resort, and the company has completed the dissemination and thorough implementation of recurrence prevention measures. Along with expanded capital expenditure (construction in progress surged from ¥753 million to ¥2,656 million), long-term borrowings also increased, and the equity ratio declined from 61.2% to 55.4%.

Key Products

Growth Drivers

• Continued growth in inbound visitor numbers (543 thousand in the 2025-2026 Winter Season, up 23.3% year on year, a record high)
• Rising sales unit price (record high level) driven by lift ticket price increases and high value-added services (such as S-Class)
• Improved early-season opening capability and resilience to poor weather through continued investment in snowmaking machines (December visitor numbers at Kawaba Ski Resort exceeded 30 thousand for the first time since listing)
• Strengthened year-round customer attraction through expansion of the Green Season Business (new gondola at Hakuba Iwatake, observation terraces, large-scale play equipment, etc.)
• Long-term cultivation of the domestic skiing population through the NSD Kids Program (membership of 47 thousand, expanded to 14 participating ski resorts)
• Expansion of accommodation supply in the Hakuba area through in-house development of chalets and other lodging facilities utilizing the real estate division
• Expansion of management support for other ski resorts through the NSD Alliance and revitalization of the snow industry as a whole
• Improved competitiveness through ropeway facility renewal plans (Tsugaike T3 lift in December 2026, Iwatake Line 5 South Lift in December 2027, Happo-one gondola in the 2027-2028 season)

Risks

• Concentration of revenue in the Winter Season and climate change risk (warm winters with low snowfall)
• Downside risk to Green Season visitor numbers due to poor weather (weekend visitors significantly missed plan due to the 2025 autumn rain front, with visitor numbers at facilities with operating ropeways at 97.0% of the prior year)
• Profit pressure from increased depreciation expense accompanying expanded capital expenditure (construction in progress of ¥2,656 million) (cumulative Q3 depreciation expense of ¥905 million, up 25.6% year on year)
• Increased cost of sales and SG&A expenses due to rising labor, energy, and material costs (cost of sales up 14.6% year on year, SG&A expenses up 15.8%)
• Safety accident risk at ropeway facilities (a fatal accident occurred at HAKUBA VALLEY Tsugaike Mountain Resort)
• Risk of fluctuation in inbound demand (due to foreign exchange, geopolitics, infectious disease, US trade policy, etc.) and a shortage of accommodation facilities in the Hakuba area
• Increase in interest-bearing debt (total long-term borrowings of ¥5,262 million, up ¥1,895 million from the end of the previous fiscal year) accompanying capital expenditure financing, and decline in equity ratio (from 61.2% to 55.4%)