The current business environment remains highly uncertain due to prolonged geopolitical risk, resource price fluctuations, and U.S. tariff measures. In Japan, while financing costs have risen due to a return to a world with interest rates, the yen has continued to depreciate and prices have risen, and corporate profits have been pressured by increases in raw material and energy costs. In addition, structural labor shortages and intensified competition to secure human resources have intensified pressure for wage increases.
On the other hand, growth opportunities are expanding in our company. In Japan, the aging of the population is accelerating, and there is a growing need for extending healthy life expectancy and improving the quality of nursing care services. The government is also strengthening the promotion of preventive medicine and comprehensive community care, and the market for health maintenance and nursing care support is expanding. In addition, consumers' sense of value is shifting to focus on health and well-being, and expectations for services that incorporate exercise habits and rehabilitation are increasing. Sports clubs are evolving from mere places for exercise to bases for health management and community building, and our company's business fields have both social significance and growth potential.

Current Financial Status

Consolidated net sales for the first half of the fiscal year ended March 2026 in the Second Quarter (Interim Period) were 31,702,000,000 yen, 101.1% year-on-year. Consolidated operating income was 59 million yen, and ordinary income was a loss of 348 million yen.
On the whole, the First Quarter recorded an operating loss due to lackluster customer attraction in the sports club business and sluggish sales in the home fitness business in April and May, as well as investment in sales promotion expenses, personnel expenses and capital investment in existing stores in advance. However, the Second Quarter (Interim Period) is showing signs of recovery.

In the sports club business, the number of new members since June has been higher than the previous year, the number of members in existing clubs has been 101.2% year-on-year, and net sales have been 101.3% year-on-year.
This fiscal year, we opened 2 new sports clubs, and recorded an operating loss of 203 million yen due to its openings.

In the home fitness business, net sales were 89.4% year-on-year due to the sluggish pace of sales of Stepper, a popular product, as a result of the brand switch from Sports Oasis to Renaissance in the previous fiscal year, but it is currently recovering. In addition, “Styly Face, ” a new product that supports both facial sagging care and swallowing ability (improving swallowing function), which was launched in September, has been selling well through TV mail-order and other channels.

In the long-term care rehabilitation business, we opened a total of 5 new facilities: Genki Gym Higashikurume in May, Genki Gym Mejirodai in June and Genki Gym Hatchonawate in August as directly-managed facilities, and Genki Gym Hiroshima Ujina in June and Genki Gym Iwaki Onahama in September as franchise facilities. As a result of continued efforts to expand the business, net sales were 114.6% year-on-year.

After estimating future taxable income including Sports Oasis Co., Ltd., which was merged on April 1, 2025, and carefully considering the recoverability of deferred tax assets, we recorded income taxes-deferred (gain) of 442 million yen. As a result, net income attributable to owners of parent was 24 million yen (11.4% year-on-year).

Outlook for the Fiscal Year Ending March 31, 2026

For the fiscal year ending March 2026 (interim), the Second Quarter (Interim Period) did not achieve the initial forecast due to sluggish performance in the sports club business and the home fitness business at the beginning of the fiscal year. However, both businesses are recovering and we aim to achieve the initial forecast in the second half of the fiscal year from October 2025 to March 2026. The consolidated business forecast for the fiscal year ending March 2026 is net sales of 66 billion yen (103.6% year-on-year), operating income of 1.7 billion yen (87.3% year-on-year), ordinary income of 900 million yen (73.5% year-on-year), and net income attributable to owners of parent of 500 million yen (65.3% year-on-year).

Medium- to Long-Term Vision

Based on the corporate philosophy of "a company for creating purpose in life (ikigai in Japanese)," our group's long-term vision is to make the age of the 100-year life span enriches A health solution company, "and we aim to create a society in which people can live comfortably at all stages of their lives, with good physical and mental health and a sense of purpose in life. Based on this vision, we formulated the 2024-2027 Medium-Term Management Plan and aim to achieve net sales of 75 billion yen and operating income of 5.5 billion yen in the fiscal year ending March 2028. Our financial targets are a capital adequacy ratio of 25%, ROE of 12%, and ROIC of 7.7%.

Message to Shareholders and Investors

In April 2025, our company acquired Sport Oasis Co., Ltd., and made a new start as "New Renaissance." We will strive to achieve sustainable growth by promoting PMI after the merger, pursuing business synergies, and continuing to create new value to meet diverse customer needs. We ask for the continued understanding and expectations of our shareholders and investors.