Resorttrust : Financial results Presentation For the 9-month Period Ended December 31, 2019

Financial results Presentation

For the 9-month Period Ended December 31, 2019

Exterior view(sample image)	Italian Restaurant
	(sample image)

"Yokohama Baycourt Club Hotel & Spa Resort" and "THE KAHALA HOTEL & RESORT YOKOHAMA" (Scheduled to be opened on June 17, 2020.)

Resorttrust, Inc. （Securities code 4681）

Contents

• Highlights of 3Q FY2019 and Segment Results
• Overview of FY2019, BS/CF and Group's Development Schedule
• Mid-termManagement Plan "Connect 50"
• Our group's ESG Outline
• References

1. 2-9
   P. 10-16

P. 17-19
P. 20-21
P. 22-32	1

Financial Highlights 3Q FY2019(April to December)

					(Million yen)
	2019/12	2019/12	Difference	2018/12	YoY
	(results)	(targets)	(results)	Change
Net Sales	123,339	129,920	(5.1%)	114,394	+7.8%
Operating Income	11,035	12,800	(13.8%)	9,352	+18.0%
Ordinary Income	11,500	12,840	(10.4%)	9,947	+15.6%
Net Income	7,104	8,110	(12.4%)	5,959	+19.2%

•Contract values of memberships continued to exceed the target. However, net sales, operating income, ordinary income, and net income fell short of the targets due to factors including impacts on revenue from hotel operations associated with natural disasters such as Typhoon Faxai and Typhoon Hagibis, and the occupancy rates at facilities for the elderly falling below our expectations.

•In the previous year, revenue from properties in line with the opening of "XIV Rokko Sanctuary Villa" was recorded as a lump sum. In FY2019, the start of operation of new facilities contributed to sales while profitability increased mainly because of increases in contract values of hotel memberships and HIMEDIC memberships, resulting in higher sales and higher operating income, ordinary income, and net income.

*Income attributable to owners of parent is labelled as "Net income" in this document.

2

Segment Sales and Operation Income 3Q FY2019

					(April to December)
						(Million yen)
	Membership	Hotel and	Medical	Other		Total
	Restaurant
2019/12 (results)	30,053	63,607	29,177	499		123,339
2019/12 (targets)	29,050	69,770	30,640	460		129,920
Difference	+3.5%	(8.8%)	(4.8%)	+8.6%		(5.1%)
2018/12 (results)	26,144	62,095	25,663	490		114,394
YoY Change	+15.0%	+2.4%	+13.7%	+1.9%		+7.8%
						(Million yen)
		Hotel and			Overhead
	Membership	Restaurant	Medical	Other	expenses	Total
2019/12 (results)	10,512	2,130	4,441	427	(6,475)	11,035
2019/12 (targets)	10,310	3,550	4,860	420	(6,340)	12,800
Difference	+2.0%	(40.0%)	(8.6%)	+1.8%	(136)	(13.8%)
2018/12 (results)	6,946	3,849	4,567	391	(6,403)	9,352
YoY Change	+51.3%	(44.7%)	(2.8%)	+9.1%	(73)	+18.0%
					"Difference" and
					"YoY Change" are
					the difference in
					the amount.

3

Progress of contract values for nine months

• The trend line of contract values of hotel memberships was firm, excluding the impact of starting sales of new facility memberships in the past (simulation).
• In 3Q, although there was a reactionary impact in October due to last-minute payments received in September before the consumption tax hike, subsequent sales have been buoyant.
• Contract values of HIMEDIC memberships during 3Q FY2019, whose sales as a new product started in October 2018, were solid, having exceeded the levels of the same period of the previous four FYs.

（Billion yen)

60.0

50.0

40.0

30.0

20.0

10.0

0.0

	GOLF		HIMEDIC		XIV・BCC

3.7

3.3	3.7	4.3
4.0

50.7

42.4

40.7

39.5

38.7

"Ashiya Baycourt"

Sales significantly increased as

"Laguna Baycourt"

"Yokohama Baycourt"

Baycourt sales began for the

first time in 10 years.

(Started selling

(Started selling

(Started selling membership on

membership on August,

membership on December,

June, 2015. )

2016.)

2017.)

3Q FY2015

3Q FY2016

3Q FY2017

3Q FY2018

3Q FY2019

4

Number of Members

190,000																													10,000
																171,983	175,779	178,815	181,650	9,000
170,000																169,226
																												8,000
													163,068
											149,426	155,679															7,000
150,000												7,055
			136,202	139,203	144,225
			133,686																					6,000
													5,891
130,000													5,702
																5,032										5,000
											4,798
110,000																				4,549									4,000
									4,137							3,781
			3,436					3,459																				3,000
							Launch of Laguna Baycourt
90,000
			2,726				Sales increased in response to the	(Reference: Dashed line)・・・Right axis
							need to enhance the membership							2,000
											Trend of the number of members of the current mainstay
													grade
70,000															products (XIV, Baycourt, and HIMEDIC)
															FY2019 3Q +3,687 member （FY2018 3Q +3,578 member）	1,000
50,000																														0
2009/3	2010/3	2011/3		2012/3	2013/3		2014/3	2015/3	2016/3	2017/3	2018/3	2019/3		2019/12
																									(Members)
								Baycourt			XIV		Sun Members		Golf	Medical			Cruiser			Total
	2019/3					18,255		77,592		32,478		30,260	19,839		391	178,815
	2019/12				20,096		78,074		31,753		30,129	21,203		395	181,650
			Change					+1,841		+482			(725)		(131)	+1,364		+4	+2,835
			April - December 2019
			Change					+1,802		+388			(770)		(235)	+1,388		(1)	+2,572
			April - December 2018

*For cases in which members are in possession of multiple memberships, each of the memberships is counted as one member

XIV+BCC+HM

Total

+3,687

+3,578

5

Hotel and Restaurant Segment's Operating Income for 3Q FY2019 (compared with the same period of the previous FY)

・In FY2019, temporary expenses were incurred such as upfront expenses amounting to 600 million yen for the opening of Trusty Premier hotels, etc. In addition, fixed costs including depreciation cost increased, while occupancy rates at non-membership hotels decreased due to factors such as intensifying competition, and revenue from the operation of membership resort hotels grew little. Mainly for these reasons, the result was lower than the figure for the same period of the previous FY.

（Million yen）

6

Trends in Hotel occupancy rate by 3Q ①

The hotel occupancy rate in 3Q FY2019 was lower than the level of the same period of the previous FY, partly owing to impacts on transportation, mainly in the Kanto region, associated with the typhoons.

（%)	XIV occupancy rate
80.0				Last year	this term
60.0			61.2	61.5
				51.5	47.9
	44.1	44.2
40.0
20.0
0.0	1Q FY2019	2Q FY2019	3Q FY2019
	（Apr.-Jun.）	（Jul.-Sep.）	（Oct.-Dec.）

（%)	< Occupancy rate by east and west area (YtoY) >
2.0
	+0.2	+0.9
0.0
	+0.1	-0.2	-2.1
-2.0
-4.0
	Eastern Japan		-5.1
	Western Japan
-6.0
1Q FY2019	2Q FY2019	3Q FY2019
	（Apr.-Jun.）	（Jul.-Sep.）	（Oct.-Dec.）

40.0< use by large companies (thousand room) >

30.0			26.7	29.5
20.0	13.4	14.5			16.3	16.7
10.0
0.0	1Q FY2019	2Q FY2019	3Q FY2019
	（Apr.-Jun.）	（Jul.-Sep.）	（Oct.-Dec.）

・The decline in the occupancy rate in 3Q was significant, especially
at facilities in east Japan (Hakone Rikyu, Hatsushima, Tateshina,
Yamanakako, Karuizawa, etc.) that were greatly affected by
Typhoon Hagibis (including disruption of expressways and
railways).
・Regarding the use by large companies for welfare programs, the
upward trend continued although the increase in 3Q was rather
small.
<Recent occupancy rate (4Q)>
The occupancy rate turned back to an increase in January. At the
same time, the ratio of guests who have dinner at our hotels and
the spending per visitor both improved.
The occupancy rate in February is also expected to record a YoY
increase, expanding the increase in January.	7

Trends in Hotel occupancy rate by 3Q ②

Regarding Baycourt, we opened two facilities, namely, Ashiya Baycourt Club and Laguna Baycourt Club, in the last two years. In 3Q, the Baycourt occupancy rate was affected by both the decline in the number of memberships per room and the impact of typhoons.

Regarding Trusty, we opened two facilities, namely, Hotel Trusty Premier Nihonbashi Hamacho and Hotel Trusty Premier Kumamoto, in FY2019. We will make them widely known to boost the occupancy rate.

（%)	Baycourt occupancy rate			（%)
80.0						100.0
				Last year	this term
60.0					53.2	80.0
		48.8
			47.4
	43.5	44.6	44.8	60.0
40.0
						40.0
20.0						20.0
0.0	1Q FY2019	2Q FY2019	3Q FY2019	0.0
	（Apr.-Jun.）	（Jul.-Sep.）	（Oct.-Dec.）

< ( References ) Monthly Customer Satisfaction>＊XIV and Baycourt

	4.64
	4.53
FY2018	FY2019
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

		Hotel Trusty occupancy rate			Last year			this term
	90.3	88.7	92.0	87.9		91.8	82.2

1Q FY2019	2Q FY2019	3Q FY2019
（Apr.-Jun.）	（Jul.-Sep.）	（Oct.-Dec.）

The number of memberships per room decreased as a result of the opening of large facilities. Although the positive impact of the opening on the occupancy rate exceeded the negative impact in 1Q, the occupancy rate has been decreasing since 2Q.

Amid intensifying competition across Japan, the takeoff of newly opened facilities such as Hotel Trusty Premier Nihonbashi Hamacho (opened in September) was somewhat slower than our expectations in 3Q, resulting in a lower occupancy rate as a whole. Going forward, we will strengthen publicity for 200,000 total RTTG point club

members.8

HIMEDIC membership progress of sales and

Senior lifestyle business schedule

	• Sales of HIMEDIC memberships remained favorable in 3Q FY2019. Contract values increased because of an
	increase in the unit price (+0.35 billion yen YoY).
	• For the Senior Lifestyle Business, six facilities started operation from 2Q onward. We are implementing
	initiatives to increase the occupancy rate.
◆ HIMEDIC sales ; result of 3Q FY2019		Contract unit price （million yen）		Existing membership
（		）
	Billion yen
	5.00			2.50				New member	Existing HIMEDIC member
										(2 or more)
	4.00			2.00			Price	2.25 million yen		1.75 million yen
		4.31		2.34	Annual fee		500,000 yen
	3.00	3.96		2.12
		1.50			Commencement of new
	2.00			1.00				products on October 2018.
	Contracts total 1,886	Contract Total 1,842
					New line 『GRAND HIMEDIC CLUB Premium』 (Excluding tax)
	1.00	1Q：465	1Q：573	0.50
	2Q：801	2Q：667				New member	Existing HIMEDIC member
		3Q：600	3Q：602
	0.00						(2 or more)
	3Q FY2018	3Q FY2019	0.00	3Q FY2018	3Q FY2019	Price	3 million yen		2 million yen
			Annual fee	Monthly fee 46,000yen／month	『552,000yen/year 』
		（Apr.-Dec.）	（Apr.-Dec.）		（Apr.-Dec.）	（Apr.-Dec.）

• HIMEDIC membership started to sales

"HIMEDIC Tokyo Nihonbashi Course" will start on October 16, 2019. Location: 7th floor, Nihonbashi Muromachi Mitsui Tower, 3-2-1Nihonbashi Muromachi, Chuoku, Tokyo

Open: June 2020 (planned)

Number of Members Final target: Approximately 3,000 members

＜Medical Service corporate business＞

Nihonbashi Muromachi Mitsui Tower Midtown Clinic, scheduled to open in April 2020, will conduct health check-ups for corporate clients and general outpatient treatments for internal medicine.

♦Started to operate August, 2019

"Trust Garden Oguikubo" Location: Suginami ward, Tokyo Number of rooms: 51 room

(Private Nursing Home)

♦Start to operate 5 facilities, total 390 room(September, 2019)

Senior Life Company Ltd.

・Felio Tamagawa70 room (Private Nursing Home) Ota ward, Tokyo

・Felio Seijyo65 room (Private Nursing Home) Setagaya ward, Tokyo

・Felio Tenjin95 room (Private Nursing Home) Chuo ward, Fukuoka ・Felio Momochi98 room (Private Nursing Home) Sawara ward, Fukuoka ・Resius Momochi62 room (Residential-type Private Nursing Home)

Nihonbashi Muromachi Mitsui Tower Exterior

Reception(Image)

Private Room(Image)

Sawara ward, Fukuoka

9

Business Forecast for FY2019

	Consolidated Targets				(Million yen)
				FY2018	FY2019	Change		・Difference in deffered realization
				results	targets		＜In the previous FY: Rokko/Laguna ⇒In this FY： Nothing＞
	Net sales		179,542	171,400	(8,142)		・A full-year contribution from operation of Laguna Baycourt Club(2019.3)
								・Increase in Opening two Hotel Trusty Premiers (Nihonbashi/Kumamoto)
	Operating income		18,877	16,000	(2,877)		・Increase in Existing Hotel operation etc.
								・Increase in Income from annual fees and amortization of deposits
	Ordinary income		19,528	16,000	(3,528)
			（Hotel／HIMEDIC）
	Net income		12,358	10,000	(2,358)		・Expansion of Senior lifestyle business （Increased facilities）
								・Expansion of Medical Service corporation Business & Aging Care
	Net income per share (yen)		115.53	93.42			Business
								・Revenue on BNCT equipment
	Annual Cash dividend (yen)		46.00	46.00
		(Billion yen)
	Contract Values of Membership		57.2	59.9	+2.7		・Difference in deffered realization
								＜In the previous FY: Rokko/Laguna ⇒In this FY： Nothing＞
								・Increase due to a decrease in start-up costs associated with opening a new
		(Million yen)		facility
		・Increase in contract values of hotel membership & HIMEDIC membership
				FY2018	FY2019
				Change		・Increase in Income from annual fees and amortization of deposits （Hotel
				results	targets
						／HIMEDIC）
	Membership	Sales	64,029	39,140	(24,889)
		・Decrease due to opening expenses associated with opening of Hotel Trusty
	Operating income	19,004	13,980	(5,024)
								Premier (Nihonbashi / Kumamoto) and preparation expenses for opening
	Hotel and	Sales	80,383	90,630	+10,246
		of Yokohama Baycourt & Kahala (around summer 2020)
	Restaurant	Operating income	2,624	3,160	+535		・Expansion of Medical Service corporation Business & Aging Care
		Sales	34,478	41,020	+6,541
	Medical							Business
	Operating income	6,144	6,760	+615
	Other	Sales	651	610	(41)		・Expansion of Senior lifestyle business （Increased facilities）
	Operating income	572	590	+17
	head office costs	Operating income	(9,468)	(8,490)	+978
	Total	Sales	179,542	171,400	(8,142)
	Operating income	18,877	16,000	(2,877)
							10

FY2019 plan:

Operating income (impact of deferred accounting)

・Although the FY2019 plan calls for a 2.9 billion yen decrease in operating income (from 18.9 billion yen in FY2018 to 16.0 billion yen in FY2019), it also calls for a significant increase in operating income, excluding the special factor of the recording of a profit realized upon opening of Rokko and Laguna. Trusty-brand facilities, etc.>

	Profit from properties that were sold by March 31, 2018
（Billion yen)	was realized (8.2 billion yen) for FY2018 upon opening
of the two facilities (Rokko and Laguna)
	XIV Rokko SV
											【Medical】
									【Hotel】
					【Membership】					Increase in
											HIMEDIC
		【Membership】							Improved		sales, increase
									in occupancy
									operation,
										of facilities
					Increase in			increase in
					contracted			fixed		for the
					value, price			income, etc.		elderly, etc.
		Decrease in
				revision
		expenses for			impact, etc.
		opening of
		Laguna and
		Rokko.

Including

business related

expenses.

FY2018 results

（Right: Breakdown of the impact of realization of deferred profit）

						No
						membership
【Head office】		【Hotel】
		hotels to
						open
	Decrease in	Related to
	indirect			opening of
	expenses			Trusty and
				Kahala
				Yokohama

*For hotel membership of property before completion of construction, Sales or Cost of the real estate will be deferred until the Hotel	11
opens. For details, please refer to p. 31.

Initiatives and Summary by Segment

FY2018（first year of "Connect 50"）

Member ‣+2% YoY in productivity per hour

*Increased from FY2017 when there was a positive impact of starting sales of new facility memberships

ship ‣Increase in the number of contracts concluded through referrals for occupancy of facilities for the elderly◎Synergy effect

Hotel
‣Online reservations, introduction of the app (from October 2018)
‣Change in the operating structure, revitalization of utilization by large-scale
and	corporate customers, etc.
XIV occupancy rate increased in the second half compared with the same period of
FY2017
Restaurant
‣Operational improvement, enhancement of efficiency
‣Reorganization
‣Multitasking
‣Digital innovation, etc. Annual total working hours reduced by 720,000 hours
	(Sales started in October 17)
	‣+18% YoY in HIMEDIC contracted value in the second half
Medical	HIMEDIC-exclusive sales bases>
‣Expansion of Kyoto base
Senior-life Business and Medical Service
	‣24 cases of sales of hotel memberships through referrals by HIMEDIC
	sales reps◎Synergy effect
	Corporation Business >
	‣ Of 30 rooms occupied upon opening of Trust Grace Shirakabe in March 2019,
Office	Group members accounted for 70% of the occupancy.◎Synergy effect
Head
	‣Increase in the number of holidays per year (from 105 days to 110 days)
	‣Enhancement in the efficiency of RPA, etc.
	‣Reform of the structure of the organizations for IT promotion and HR strategy
	‣Related contract value amounted to 600 million yen.

FY2019（second year of "Connect 50"）

‣Revision of prices of Laguna

‣Consideration of new products for existing buildings

‣Target +10% YoY in productivity per hour by digitalization

‣Point app (from April 2019), spread of online reservation ‣Enhancement of customer satisfaction by enhancing owner benefits

‣Approach to corporate customers' utilization in view of the enforcement of a rule to take paid holidays compulsorily

‣Enhancement of productivity (annual reduction of 80 hours per shift) ‣Increase of fixed income, etc.

(Nihonbashi in September, Kumamoto in October)

Plan:+15% YoY in contract value ‣Membership sales of a new base in Nihonbashi area scheduled in the second half ‣Enrichment of service by introduction of the HIMEDIC app

‣Expansion of sales by inbound businesses and through tie-ups

• Senior Lifestyle Business: Increase of the number of facilities and enhancement of the occupancy rate>

‣Smooth operation of facilities opened/acquired (+6 facilities) ‣Increase in the occupancy rate of existing facilities

‣Consideration of new facilities (Medium-term management plan target: 3,000 rooms)

Delivery of research equipment and start of clinical trial (scheduled)

‣Increase in the number of holidays per year (from 110 days to 120 days) ‣Thorough utilization of IT and digital infrastructure, and evaluation of investment impact

‣Examination and review of the costs of head office and indirect operations

12

Consolidated Balance Sheets

(Million yen)

	2019/3	2019/12	Change		2019/3	2019/12	Change
Total current assets	135,754	137,295	+1,541	Total current liabilities	70,764	73,536	+2,772
Cash and deposits	26,742	28,997	+2,254	Notes and accounts payable-trade	1,471	1,857	+385
Notes and accounts receivable-trade	8,891	9,648	+757	Short-term loans payable	6,839	13,789	+6,950
Operating loans	46,623	51,942	+5,318	Current portion of bonds	250	200	(50)
Short-term investment securities	4,647	3,000	(1,647)	Accounts payable-other and accrued expenses	33,495	13,962	(19,533)
Merchandise, raw materials and supplies	2,511	2,527	+15	Advance received	12,209	18,735	+6,525
Real estate for sale	30,049	23,550	(6,499)	Other	16,497	24,992	+8,495
Real estate for sale in process	11,845	12,322	+476	Total noncurrent liabilities	198,611	206,093	+7,482
Other	4,442	5,306	+864	Bonds payable and long-term loans payable	39,573	38,193	(1,380)
Total noncurrent assets	265,671	276,646	+10,975	Long-term guarantee deposited	101,595	100,234	(1,361)
Property, plant and equipment, net	180,001	194,322	+14,320	Bonds with subscription rights to shares	29,813	29,781	(31)
Intangible assets	11,806	11,142	(664)	Other	27,628	37,884	+10,255
Investments and other assets	73,862	71,181	(2,681)	Total liabilities	269,375	279,630	+10,254
				Net Assets	132,050	134,312	+2,261
				Shareholders' equity	127,927	129,621	+1,694
				Treasury shares	(1,852)	(1,802)	+49
				Accumulated Other Comprehensive Income	1,355	1,353	(2)
				Subscription rights to shares	292	313	+21
				Non-controlling interests	4,326	4,825	+498
Total assets	401,426	413,942	+12,516	Total liabilities and net assets	401,426	413,942	+12,516	13

Consolidated Cash Flows FY2019

(April to December)

		(Million yen)
	2018/12	2019/12
Cash flows from operating activities	6,913	12,106
Cash flows from investing activities	(4,510)	(8,251)
Cash flows from financing activities	(11,934)	1,468
Effect of exchange rate changes on	12	(6)
cash and cash equivalents
Net increase (decrease) in cash and cash equivalents	(9,518)	5,317
Cash and cash equivalents at end of period	22,950	29,212

14

Group's Development Schedule

15

Trend of sales inventories (contract value basis)

• During the period of the before the last medium-term management plan (April 2008 to March 2013) when the Group postponed development in view of the collapse of Lehman Brothers and the impact of the earthquake, inventories shrank.
• During the period of the previous medium-term management plan (April 2013 to March 2018), inventories temporarily increased to over 160 billion yen as the Group accelerated development and sales in response to the accumulated demand.
• Following the launch of the current medium-term management plan, the Group has abundant sales inventories exceeding 102 billion yen as of September 30, 2019 on a contract value basis, although no new projects are scheduled for sale in the plan's second year.

（Billion yen)										Yokohama Baycourt Club
180.0					"Next 40"			"Connect 50"
Excellent Hospitality Plan
(2008.4～2013.3)			(2013.4～2018.3)					Laguna Baycourt Club
160.0
140.0										XIV Rokko SV
										Ashiya Baycourt Club
120.0										XIV Yugawara Rikyu
100.0										XIV Toba Bettei
80.0									30.6	XIV Karuizawa Paseo&
									8.7	XIV Karuizawa SV Museo
60.0									XIV Arima Rikyu
								13.4
									XIV Hakone Rikyu
40.0									17.6
								Tokyo Baycourt Club
									16.3
20.0									XIV Yamanakako SV
									16.2
0.0										Other XIVs
2011.3	2012.3	2013.3	2014.3	2015.3	2016.3	2017.3	2018.3	2019.3	2019.9	＊the data is updated by semiannual
										period of FY2019.

*Acquired development site：Kinugawa, Chiba(Suzumejima・Hota), Karuizawa, Hakonegora, Atamiizusan, Hamanako, Takashima.(Seotember, 2019)

16

Quantitative plan (consolidated) Medium-term Management Plan "Connect 50"

(Billions of yen)	FY2017	FY2020	FY2022
(Final year of Next40)	(Third year of Connect 50)	(Final year of Connect 50)
Net sales	165.4	195.0	210.0
Operating income	17.7	20.0	24.0
Ordinary income	19.4	20.0	24.0
Net income attributable to	11.8	13.5	16.0
owners of parent

17

Summary by Segment

Medium-term Management Plan "Connect 50"

18

Initiatives to strengthen and entrench the Group brand

"RTTG Point Club" was launched in April 2019 as part of initiatives to strengthen and entrench the Group brandunder the Medium-term Management Plan "Connect 50".

In addition to this measure, we will enhance the points of contact with customers to take initiatives with an aim to become a distinguished corporate group with its unique Group brand by fostering close membership ties that last for a lifetime, going beyond creation of value across individual businesses and product brands.

Progress of RTTG Point Club

（Thousand people）						Membership Holders				Others
200
180				Group members has joined grown steadily.
			About 30 thousand increased from April to December.
														54
160																																							52
																																49
140																											46
																					43
120																	39
												36
						32
100
			25
80
																																										144
																																						136
60																					118				124				129
											101				109
40				86			95
20
																Others include 140 thousand mail order
0																	customers for aging care products

• Acquisition and use of points for the Group's various services are available
• Making it suitable for a wide range of scenes of use by promoting registration of family members, which is also beneficial to owners

• Approximately 200,000 total point club members including the general public as of the end of 2019.12.

• Of these, membership holders increased to approximately 54,000.	19

Our group's ESG Outline①

Resorttrust Group Management Philosophy

Hospitality Charter ［Code of Conduct］

medium-term management plan "Connect 50"

＜Categorization based on ESG issues＞

Materiality for the Group's business (risks and opportunities)

• Demand for stay and accommodation facilities for affluent people and general consumers (Japan & overseas)
• Tourism-orientednation, regional revitalization, labor shortages, promotion of diversity
• Enrichment of high-quality and safe services and facilities for seniors
• Rising needs for health maintenance and preventative medical care through early detection
• R&D for highly advanced medical treatment and development of the aging care business.

Resolution of social issues

Sustainable enhancement

of corporate value

	Materiality for the Group's business (risks and opportunities)		Specific initiatives (examples)
E	• Harmony with the natural environment, conservation of the ecosystem		• Shift to LED, mega-solar,eco-stay
	• Reduction of environmental impacts during development, energy saving, resource saving, promotion		• Use of eco-cars
	of recycling, prevention of contamination		• Origami Action (biodiversity)
			• Use of coffee beans certified by Rainforest Alliance
	Relevant policies: Environmental Policy (established in 2005)		• Tree-planting during development, green campaign, etc.
S	• Response to labor shortages by enhancing productivity, such as through promotion of digitization		• Enhancement of employment of persons with disabilities (received
	• Active participation of women in the hospitality industry to promote leisure, health and beauty		various awards)
	• "Diversity" of human resources to respond to rapid change in society		• Revision and reduction of working hours, increase of the number of
			holidays
	Medium-term target: Male employees taking childcare leave: 50%(March, 2024), ratio of female managers:		• Establishment of the Diversity Promotion Office, promotion of activities
		• Declaration of "Health and Productivity Enterprise," White 500
	25%(April, 2025), number of holidays per year (hotel employees): 105 days→120 days (working hours:
		• Kurumin certification obtained, enrichment of various internal plans
	2,085H→1,920H)
		• Promotion of workstyle reform by promoting systematization.
	• Contribution to regional vitalization and revitalization, enrichment of facilities corresponding to		• Local recruitment (creation of employment in regions)
	inbound demand		• Local production for local consumption, dietary education and
	• Joint research and technological innovation with medical institutions: To "create a society where		regional activities
	cancer claims no precious lives"		• Planning and participation in experiences in nature
	• Enrichment of nursing care facilities and services to create safe and affluent lifestyles		• Securing of safety and quality of facilities and products
			• Enhancement of facilities for health check-ups, enrichment of
	discover and celebrate the very finest that life has to offer>		medical and nursing care facilities
	During the period covered by the current medium-term management plan: Development of hotels based on requests		• Development of equipment for Boron Neutron Capture Therapy
		(BNCT) → Start of clinical trial in November 2019
	from and cooperation with local governments, such as the cities of Ashiya, Kumamoto, and Yokohama
	Double the profit by expanding the Medical Business (senior lifestyle facilities: approx. 1,500 rooms→3,000 rooms)
G	• Strong relationships of trust with stakeholders, management of various risks		• Structure: Company with Audit and Supervisory Committee
	• Securing management transparency (enhancement of the ratio of outside directors, promotion of		• Voluntary committees: 2 (Remuneration Advisory Committee,
	diversity)		Appointment Advisory Committee)
	• Averting the risk of "galapagosization" of corporate management because of the distinctive nature of		• Ratio of outside directors: 35.0%, ratio of female directors: 11.8%
	the Group's business		• Establishment of the Risk Management Committee, enrichment of
			the structure

20

Our group's ESG Outline②

＜External evaluation associated with ESG＞

	Reception of Encouragement Award (President of Japan Organization for
	Employment of the Elderly, Persons with Disabilities and Job Seekers Award)	January.
	for "Fiscal Year 2019 Good Example of Workplace Improvement for
	Employment of Persons with Disabilities" (Sponsor: Japan Organization for	2020
	Employment of the Elderly, Persons with Disabilities and Job Seekers (independent
	administrative organization); Benefactor: Ministry of Health, Labour and Welfare).
								ISO 27001 (standard for information security
								management systems): The head office and	October.
								certain branches have been certified (started
								2019
								acquiring certifications in 2015)
								Selected as an excellent company from among	October.
								the "Aichi Shining Women Companies" for
								2019
								FY2019 (Aichi Prefecture)
								The Company's 24 employee cafeterias received	October.
								the highest recognition (three stars) under the
								Healthy Meal and Dietary Environment	2019
								Consortium Smart Meal certification system.
								ISO 14001 (standard for environmental	July.
								management systems): Acquired at 37 principal
								2019
								sites (started acquiring certifications in 2015)
								Selected as a constituent of the MSCI Japan	June.
								ESG Select Leaders Index (MSCI)	2019
								Selected as a constituent of the SNAM	June.
								Sustainability Index for FY2019 (Sompo Japan
								2019
								Nipponkoa Asset Management)
								Certified as one of the enterprises in the "Health
								and Productivity Enterprises 2019 ~ White 500	February.
								~" list for the third consecutive year (Ministry of
								2019
								Economy, Trade and Industry, Nippon Kenko
								Kaigi)
								Received "Ikumen Ikuboss Award" as part of	February.
								the Aichi Prefecture Family Friendly Company
								2019
								Commendations for FY2018 (Aichi Prefecture)

				Obtained the Next-generation Certification Mark
				known as "Kurumin certification" for the second time	January.
				in 2019 (Ministry of Health, Labour and Welfare)
				2019
				*Obtained Kurumin certification for the first time in
			2016.
Received the Excellent Company Award for Employment of Persons with
Disabilities under Tokyo Metropolis' program for commendation of excellent	September.
companies for employment of persons with disabilities for FY2017 (Tokyo	2017
Metropolis)
Received the FY2015 Japan Organization for Employment of the Elderly,
Persons with Disabilities and Job Seekers President's Award for Effort	September.
(excellent site for employment of persons with disabilities) (Japan
2015
Organization for Employment of the Elderly, Persons with Disabilities and
Job Seekers)
				Selected for inclusion in FY2014 Diversity	March.
				Management Selection 100 (Ministry of Economy,
				2015
				Trade and Industry)
Received the Minister of Health, Labour and Welfare Award (the highest
award) for FY2013 for "Workplace improvement best practices for	September.
employment of persons with disabilities"
2013
(hosted by Japan Organization for Employment of the Elderly, Persons with
Disabilities and Job Seekers under the auspices of the Ministry of Health,
Labour and Welfare)

The former Emperor and the Empress visited the Tokyo Head Office Clerical Work Support Center in connection with the Company's receipt of the Minister of Health, Labour and Welfare Award

21

22

＜Reference＞Topics for Fiscal Year 2019

(1)	Group point system "RTTG Point Club" was started to operate. (April, 2019)
(2)	It was resolved to discontinue the "Measures Against Large-scale Purchases of Company Shares" at the conclusion of
	the 46th Annual General Meeting of Shareholders. (June 27, 2019)
(3)	Held of the Resorttrust Ladies golf championship was held at Grandee Hamanako Golf Club.
	(from May 31 to June 2, 2019)
(4)	The Dunlop Srixon Fukushima Open was held at Grandee Nasu Shirakawa Golf Club's course for consecutive years.
	(from June 27 to June 30, 2019)
(5)	Opening a Private Nursing Home "Trust Garden Ogikubo". (August 1, 2019)
(6)	Trust Garden Co., Ltd., a company in the Group, has acquired shares of Senior Life Company Ltd. from LIXIL
	Corporation and started to operate of five facilities (390 rooms) owned by Senior Life Company Ltd.
	(September 2, 2019)
(7)	"Hotel Trusty Premier Nihonbashi Hamacho" started to operate. (September 12, 2019)
(8)	"Hotel Trusty Premier Kumamoto" started to operate. (October 9, 2019)
(9)	Membership Sales Launch for Grand HIMEDIC Club "HIMEDIC Tokyo Nihonbashi Course".
	(October 16, 2019)
(10) Cancer Intelligence Care Systems, Inc., a Group company, started a clinical trial of Boron Neutron Capture Therapy
	(BNCT) for malignant melanoma and angiosarcoma. (November 2019)
(11) Started contracted operation of ENGLISH GARDEN Rosa & Berry Tawada's DAICHI no Restaurant (Maibara City,
	Shiga Prefecture) (January 8, 2020)
(12) Reception of Encouragement Award for Fiscal Year 2019 Good Example of Workplace Improvement for Employment
	of Persons with Disabilities. (January 29, 2020)	23

＜Reference＞

Contract Values of Membership 3Q FY2019 (April to December)

							(Billion yen)
	2019/12	2019/12		2018/12	YoY	2019/12	2020/3
	Difference	Progress rate
	results	targets	results	Change	of contract	targets
						(cumulative)
Yokohama Baycourt Club	16.9	10.8	+6.2	10.0	+6.9	59.6%	14.4
Laguna Baycourt Club	8.6	10.2	(1.6)	14.7	(6.1)	93.8%	13.7
XIV Rokko SV	0.7	1.5	(0.8)	0.9	(0.1)	48.4%	2.0
Ashiya Baycourt Club	6.1	5.9	+0.2	4.7	+1.5	83.4%	7.9
XIV Yugawara Rikyu	2.1	2.6	(0.5)	1.3	+0.8	76.9%	3.5
Other Hotels	7.9	9.0	(1.1)	7.1	+0.8	－	12.1
Hotel Membership Total	42.4	39.9	+2.5	38.7	+3.7	－	53.6
Golf	0.3	0.1	+0.1	0.2	+0.1	－	0.2
HIMEDIC	4.3	4.5	(0.2)	4.0	+0.4	－	6.1
Total	47.0	44.5	+2.4	42.8	+4.1	－	59.9

* Progress rate of the total contract amount

24

＜Reference＞

Sales of Membership Segment 3Q FY2019(April to December)

								(Billion yen)
			2019/12	2019/12	Difference	2018/12	YoY	2020/3
			results	targets	results	Change	targets
Yokohama Baycourt Club	15.1	9.7	+5.4	9.0	+6.1	13.0
Laguna Baycourt Club	7.8	9.3	(1.5)	13.4	(5.6)	12.5
	XIV Rokko SV	0.7	1.4	(0.7)	0.8	(0.1)	1.8
Ashiya Baycourt Club	5.6	5.4	+0.2	4.2	+1.3	7.2
XIV Yugawara Rikyu	1.8	2.4	(0.6)	1.1	+0.7	3.2
	Other Hotels	6.6	5.3	+1.3	5.1	+1.5	7.1
Hotel Membership Total	37.6	33.5	+4.1	33.7	+3.9	44.9
		Yokohama Baycourt Club	(8.0)	(5.1)	(2.9)	(4.8)	(3.2)	(6.9)
Deferred
	Laguna Baycourt Club	-	-	-	(7.5)	+7.5	-
Sales
		XIV Rokko SV	-	-	-	4.7	(4.7)	-
		All Hotels	29.5	28.3	+1.2	26.1	+3.4	38.0
		Other	0.5	0.7	(0.2)	0.1	+0.5	1.1
Membership Operations Total	30.1	29.1	+1.0	26.1	+3.9	39.1

25

＜Reference＞

Sales of Hotel and Restaurant Segment 3Q FY2019

(April to December)

The Kahara		Other
9.3%			10.6%
Income from				XIV
amortization of				41.0%
deposits
4.2%
Income from
annual fees
9.9%					Sun Members
		Baycourt	Hotel Trusty
			5.4%
		11.3%	8.3%
						(Million yen)
		2019/12	2019/12		2018/12	2020/3
		results	targets		results	targets
XIV		26,085	29,388		27,447	37,451
Sun Members		3,462	3,810		3,556	5,002
Hotel Trusty		5,294	5,954		5,138	8,140
Baycourt		7,187	8,627		5,431	11,268
Income from annual fees		6,323	6,274		5,770	8,408
Income from amortization of deposits		2,665	2,713		2,388	3,618
The Kahara		5,898	6,088		6,031	8,174
Other		6,690	6,912		6,330	8,566
Total		63,607	69,770		62,095	90,630		26

＜Reference＞

Operations by category 3Q FY2019 (April to December)

＜HOTEL＞

Number of overnight visitors			(Thousands)
	2019/12	2019/12	2018/12	2020/3
	results	targets	results	targets
XIV	1,411	1,510	1,445	1,944
Sun Members	308	331	316	435
Hotel Trusty	553	585	525	797
Baycourt	223	278	163	364
Occupancy rates				（％）
	2019/12	2019/12	2018/12	2020/3
	results	targets	results	targets
XIV	51.2	54.7	52.3	52.4
Sun Members	61.7	64.9	60.2	64.4
Hotel Trusty	88.4	91.7	91.3	90.7
Baycourt	45.6	56.0	48.5	55.1
Spending per visitor				（yen）
	2019/12	2019/12	2018/12	2020/3
	results	targets	results	targets
XIV	18,482	19,453	18,990	19,259
Sun Members	11,228	11,487	11,232	11,482
Hotel Trusty	9,573	10,177	9,783	10,205
Baycourt	32,114	31,015	33,214	30,898

		(Thousands)
	2018/3	2019/3
	results	results
	1,864	1,839
	431	418
	696	689
	145	217
		（％）
2018/3	2019/3
	results	results
50.8	50.2
60.4	60.4
91.7	90.4
54.6	48.3
		（yen）
2018/3	2019/3
	results	results
19,340	18,915
11,139	11,268
9,752	9,612
32,940	32,671

27

＜Reference＞

Sales of Medical Segment 3Q FY2019 (April to December)

Other 4.5%

Senior-life Business

30.8%

HIMEDIC Business

42.3%

Aging Care	Medical service
Business	corporation
(Product Sales)	Business*
6.6%	15.8%			(Millions yen)
	2019/12		2019/12	2018/12	2020/3
	results		targets	results	targets
HIMEDIC Business	12,342		12,409	11,527	16,731
Medical service corporation Business*	4,617		4,684	4,502	6,211
Aging Care Business(Product Sales)	1,936		2,266	2,071	3,076
Senior-life Business	8,984		9,896	7,646	13,627
Other	1,296		1,382	(85)	1,373
Total	29,177		30,640	25,663	41,020

※Operation support for general medical service business, etc.

＜Senior residences and private nursing homes＞

	2019/12	2019/12	2018/12	2020/3
	results	targets	results	targets
Occupancy rates(%)	87.1	93.3	86.5	94.7
number of rooms	2,100	2,100	1,587	2,100

*Life Assist Bashamichi : Started to operate on July, 2018, Trust Grace Shirakabe : Stated to operate on March, 2019	28
*Trust Garden Ogikubo Started to operate on August, 2019, Started to operate 5 facilities(total 390 room) on September, 2019. P9 for an overview.

Effects of Deferred Revenue from properties before hotel opening (FY)

≪Method of recording sales and income from property before hotel opening≫P.31

Registration fee treated as Sales upon signing.

Sales or Cost of the real estate

deferred until the Hotel opens

*Discribed "+" is in realized period. And discribed "()" is in unrealized period.

Fiscal year

Results for FY2014

Results for FY2015

Results for FY2016

Results for FY2017

Results for FY2018

Targets for FY2019

(2015/3)

(2016/3)

(2017/3)

(2018/3)

(2019/3)

(2020/3)

（ＸＩＶ Yugawara）

（XIV Rokko SV）

（Laguna Baycourt）

（Yokohama Baycourt）

Contract amount of properties

4.5 billion

20.0 billion

7.2 billion

（Yokohama Baycourt）

（Yokohama Baycourt）

9.2 billion

（Ashiya Baycourt）

（XIV Rokko SV）

（Laguna Baycourt）

before completion of construction

（XIV Toba Bettei）

30.1 billion

3.2 billion

20.8 billion

13.0 billion

14.4 billion

11.8 billion

（ＸＩＶ Yugawara）

（Ashiya Baycourt）

（XIV Rokko SV）

12.3 billion

12.5 billion

2.5 billion

Deferred sales and income

from

Sales

Income

Sales

Income

Sales

Income

Sales

Income

Sales

Income

Sales

Income

properties

Yokohama Baycourt

Value deferred

(3.5)

(1.2)

(6.2)

(2.1)

(6.9)

(2.3)

Value realized

I

Laguna

Value deferred

(10.2)

(3.2)

(10.4)

(3.4)

It will open in Summer FY2020

Baycourt

Value realized

+20.5

*

+7.1

XIV Rokko SV

Value deferred

(2.1)

(0.4)

(1.4)

(0.3)

(1.1)

(0.2)

Value realized

+4.7

*

+1.1

Ashiya

Value deferred

(15.3)

(5.4)

(6.1)

(2.2)

Baycourt

Value realized

+21.2

* +8.2

XIV

Value deferred

(4.7)

(1.3)

(5.5)

(1.7)

Yugawara Rikyu

Value realized

+10.2

* +3.4

XIV Toba Bettei

Value deferred

(6.3)

(1.7)

(From FY 2013)

Value realized

+9.8

* +3.0

Value affected(Single Year)

(11.0)

(3.0)

(13.2)

(4.6)

(7.5)

(2.3)

+6.2

+3.4

+18.9

+6.1

(6.9)

(2.3)

* Realized Value (Results) includes the difference between the preliminary cost and the fixed cost

Financial highlights

Results for FY2014

Results for FY2015

Results for FY2016

Results for FY2017

Results for FY2018

Targets for FY2019

(2015/3)

(2016/3)

(2017/3)

(2018/3)

(2019/3)

(2020/3)

of consolidated results

Sales

Operating

Sales

Operating

Sales

Operating

Sales

Operating

Sales

Operating

Sales

Operating

income

income

income

income

income

income

Disclosed figures (Recorded value)

120.4

16.0

142.2

18.6

143.5

13.5

165.4

17.7

179.5

18.9

171.4

16.0

(For reference)①

131.4

19.1

155.4

23.2

151.0

15.8

159.2

14.3

160.7

12.8

178.3

18.3

Value excluding effects of deferred values

(For reference)②	131.4	19.1	155.4	23.8	151.0	17.0	159.2	16.2	160.7	14.4	178.3	18.5	29
①+ Excluding effects of extra costs

Effects of Deferred Revenue from properties before hotel opening (3Q)

≪Method of recording sales and income from property before completion of constructioｎ≫p.31
Registration fee treated as Sales upon signing.
Sales or Cost of the real estate		deferred until the Hotel opens			(Billions yen)
*Discribed "+" is in realized period. And discribed "()" is in unrealized period.
Fiscal year		Results for 3Q FY2019	Targets for 3Q FY2019	Results for 3Q FY2018
	(2019/12)	(2019/12)	(2018/12)
Contract amount of properties	Yokohama	16.9 billion	Yokohama	10.8 billion	Yokohama	10.0 billion
before completion of construction	Laguna	14.7 billion
Deferred sales and income from properties	Sales	Income	Sales	Income	Sales	Income
Yokohama Baycourt		Value deferred	(7.9)	(2.6)	(5.1)	(1.7)	(4.8)		(1.6)
Laguna Baycourt		-	-	-	-	(7.3)		(2.4)
Sub Total		(7.9)	(2.6)	(5.1)	(1.7)	(12.1)		(4.0)
XIV Rokko SV		Value realized	-	-	-	-	+4.7		+1.1
(opened on April 2018)
Sub Total		-	-	-	-	+4.7	＊	+0.9
				＊	(0.2) Decrease	in expenses for	opening of XIV Rokko SV.
Total		(7.9)	(2.6)	(5.1)	(1.7)	(7.5)		(3.1)

30

＜Reference＞

＜Reference＞

Income and Accounting for a Core XIV Facility

(Before completion of construction)

Contract

Framework

Completion of Construction

Total payment

60% of sale price

80% of sale price

100% of sale price

(100%)

received

received

received

Security deposit

Member pays deposit

Liability incurred when

*2 After facility opens,

(10%)

upon signing contract

contractsigned*2

sale is amortized.

Registration fee

Member pays

registration fee upon

Sale recorded when

(40%)

signing contract

contract signed

Member pays 10% of

total payment upon

Real estate cost

signing contract

Sale recorded when

Member pays 20% of total at

(50%)

facility opens

framework raising

Member pays 20% of

total upon completion

Example: Membership price of 10 million yen

Completion of

Contract Framework Construction

At Opening	Earnings
Recorded

Security deposit: 1 million yen

Registration fee: 4 million yen

Real estate:	5 million yen

Total contract amount:

10 million yen

Sale amount recorded

1 million yen

Balance-sheet liability

recorded *2

4 million yen

Sale recorded (when

contract signed)

1 million yen*1

2 million yen*1

2 million yen*1

Sale recorded (when

facility opens)

6 million yen

2 million yen

2 million yen

4 million yen

－－

－

5 million yen*1

Cost of Sales 3.5 million yen

*1

The real estate cost is deferred until the facility opens and is treated as

revenue after the facility opens.

Annual fee:

31

*2

After facility opens, sale is amortized.

0.13 million yen

Resorttrust, Inc. IR Division

https://www.resorttrust.co.jp/

Disclaimer Regarding Forward-looking Statements

Any statements in this presentation document, other than those of historical fact, are forward-looking statements about the future performance of Resorttrust, Inc. and its group companies, which are based on management's assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts.

32