Izu Shaboten Resort Co.,Ltd

Business Details

Centered on Izu Shaboten Zoo, operated by Izu Shaboten Park Co., Ltd., this segment provides services across multiple park facilities located on the Izu Peninsula. Its main customers are domestic and international tourists and families, and it seeks to enhance visitor satisfaction through animal interaction experiences, attractions, merchandise sales, and events. In FY2026 (ending March 2026), this is the group's core segment, accounting for approximately 65% of consolidated group sales of ¥5,591 million, and the company continues to strengthen facilities, including expansion of the Savanna Area.

Recent Overview

Sales increased, but segment profit declined 4.7% year on year due to fewer visitors and higher costs

In the Leisure Business for FY2026 (ending March 2026), sales rose to ¥3,662 million (up 3.7% year on year), securing an increase in revenue, but the number of visitors remained at 1,585 thousand, down 56 thousand from the prior year. Segment profit declined to ¥808 million (down 4.7% year on year). Depreciation expense increased to ¥269 million (up ¥22 million year on year), among other cost burdens, putting pressure on margins. Looking ahead, the company plans to promote the expansion of the Savanna Area and the development of Jogasaki Coast as a tourism destination.

Key Products

Growth Drivers

• Strengthening the capture of domestic and international tourists amid rising inbound demand
• Improving visitor satisfaction and drawing power through facility renewals such as the Savanna Area expansion
• Expanding seasonal events (such as the Izu Kogen Gran Illumi) to boost year-round visitor numbers
• Strengthening the group's overall drawing power by developing new tourism destinations such as Jogasaki Coast
• Increasing spend per visitor through expansion of merchandise and original products
• Synergies from collaboration with group facilities (Hotel Business and Ani-Touch)

Risks

• Declining trend in visitor numbers (in FY2026 (ending March 2026), down 56 thousand year on year to 1,585 thousand)
• Margin pressure from rising costs due to higher personnel expenses
• Negative impact of price increases on personal consumption and leisure spending
• Risk of visitor number fluctuations due to external factors such as weather and natural disasters
• Intensifying competition for visitors from an increasing number of rival leisure facilities
• Impact on inbound demand from changes in international conditions, including US trade policy and Middle East affairs

Business Details

A segment consisting of the Ani-Touch animal interaction facility stores operated by Izu Shaboten Park Co., Ltd. Deployed at six locations nationwide, including Ani-Touch Minato Mirai, it provides experiential services where visitors can interact directly with animals. Sales for FY2026 (ending March 2026) declined slightly to ¥1,226 million (down 2.6% year on year), while segment profit improved to ¥341 million (up 5.1% year on year), raising the margin to 27.8%.

Recent Overview

Sales declined slightly, but margin improved. Visitor numbers fell by 39 thousand year on year to 790 thousand.

In FY2026 (ending March 2026), the Ani-Touch Business recorded a slight decline in sales to ¥1,226 million (down 2.6% year on year), while segment profit increased to ¥341 million (up 5.1% year on year), improving the margin to 27.8% (from 25.8% in the prior year). The number of visitors declined by 39 thousand year on year to 790 thousand. The number of stores remained unchanged at six nationwide locations, and the company disclosed that it was unable to open any new stores in the prior fiscal year. Going forward, the company will prioritize opening stores in favorable locations to expand the business, targeting a doubling to 12 stores by FY2029 (ending March 2029).

Key Products

Growth Drivers

• A new store opening plan targeting a doubling from the current 6 stores to 12 stores by FY2029 (ending March 2029)
• Establishing a stable customer base through openings within urban commercial facilities
• Cross-promotion and awareness-building initiatives in collaboration with the group's Leisure Business facilities (such as Izu Shaboten Zoo)
• Raising awareness of the Ani-Touch brand through social media
• Improved profitability through better cost management (achieving a 27.8% margin in FY2026, ending March 2026)

Risks

• Downward pressure on sales from the declining trend in visitor numbers (down 39 thousand year on year to 790 thousand in FY2026, ending March 2026)
• Risk of continued inability to open new stores, as in the prior fiscal year, due to difficulty securing well-located properties
• Risk of rising costs due to higher personnel expenses (noted as a group-wide issue)
• The Ani-Touch brand remains only moderately recognized, with a large proportion of people unaware of it even near the facilities
• Operational risks specific to animal interaction facilities relating to animal care and hygiene management
• Risk that the slowdown in growth following last fiscal year's rapid expansion (sales up 95.9%) becomes entrenched

Business Details

Consists of Izu Shaboten Village (a glamping facility) operated by Izu Dream Village Co., Ltd. and lodging facilities including SKY HILL HOTEL Izu Kogen. The segment leverages its geographic advantage of being adjacent to Izu Shaboten Zoo to draw visitors in collaboration with the Leisure Business. Although small, accounting for roughly 12-13% of group sales, it maintains operating profitability despite carrying goodwill amortization expenses.

Recent Overview

Sales increased slightly, but segment profit fell sharply by 62.0% year on year.

Full-year sales for FY2026 (ending March 2026) remained flat at ¥703 million (up 0.4% year on year), while segment profit fell sharply to ¥24 million (down 62.0% year on year). Goodwill amortization remained at ¥91 million, roughly in line with the prior year, and rising costs appear to have weighed on profit. While the segment remains profitable, the decline in profitability is notable, and raising awareness of the increased room count at SKY HILL HOTEL Izu Kogen and strengthening collaboration between the glamping facility and the Leisure Business remain key challenges.

Key Products

Growth Drivers

• Drawing visitors through collaboration with Leisure Business facilities such as Izu Shaboten Zoo and the Izu Kogen Gran Illumi
• A gradual recovery in domestic tourism demand, including rising inbound demand
• Attracting new guests to SKY HILL HOTEL Izu Kogen through greater awareness of its increased room count and improved brand recognition
• Improved occupancy rates through a revised advertising strategy for the glamping facility and collaboration with other companies

Risks

• Cooling of the nationwide glamping boom and intensifying competition amid an increasing number of such facilities
• Price and service competition with numerous rival lodging facilities within Ito City
• Profit pressure from goodwill amortization expenses (¥91 million annually)
• A deteriorating cost environment, including rising personnel expenses
• Downward pressure on personal consumption and travel demand from price trends
• Significant deterioration in segment profit, down 62.0% year on year for the full FY2026 (ending March 2026), with uncertainty around the outlook for a recovery in profitability

Business Details

The "Others" segment consists of the Entertainment Business, Investment Business, and other operations not included in the three reportable segments of Leisure Business, Ani-Touch Business, and Hotel Business. It involves the holding company Izu Shaboten Resort Co., Ltd. and equity-method affiliates. Sales to external customers are extremely minor, and the contribution to overall group revenue is limited. Segment assets mainly consist of company-wide assets (cash and deposits, and administrative department assets).

Recent Overview

Segment loss improved by ¥34 million year on year, narrowing the downward drag on group profit

In FY2026 (ending March 2026), the loss in the "Others" segment improved significantly to ¥13 million (from a loss of ¥47 million in the prior year). Sales to external customers remained minor (¥77 thousand), but the narrowing of the segment loss reduced the negative impact on the group's overall operating profit. Equity in earnings of affiliates rose slightly to ¥7 million (from ¥5 million in the prior year). Segment assets were roughly flat year on year at ¥490 million.

Key Products

Growth Drivers

• Continued contribution from equity-method investment income (¥7 million in FY2026, ending March 2026)
• Stable financial base through efficient management of company-wide assets

Risks

• Sales to external customers are close to zero, meaning the segment does not function as an independent revenue source
• Limited disclosure of details regarding the Entertainment Business and Investment Business, resulting in low transparency of business content
• Structurally continuing segment losses, which act as a factor depressing the group's overall operating profit