Resorttrust : Financial results Presentation For the year Ended March 31, 2024

Financial results Presentation

For the Year Ended March 31, 2024

RESORTTRUST GROUP

"SANCTUARY COURT TAKAYAMA ART GALLERY RESORT" （Open in March 2024）

Resorttrust, Inc. （Securities code 4681）

FY2023 Financial Summary

RESORTTRUST GROUP

① Record-highnet sales, operating income, and ordinary income for the period under review.

FY2023: Net sales 201.8 billion yen and Operating income of 21.1 billion yen

・Net income was down slightly compared with the previous fiscal year, during which the company reported extraordinary income of approximately 9.0 billion. Excluding this, the company achieved record highs in net sales and all profit items, surpassing the profit plan that was revised upward in November 2023.

・" SANCTUARY COURT TAKAYAMA " opened on March 25, and the deferred real estate profit was recorded in a lump sum.

・Looking at Hotel Operations, operating income increased due to higher occupancy rates and unit prices, which more than offset increases in labor and other costs. In 4Q, the company carried out additional repair and maintenance of company dormitories and other facilities.

②Hotel and Medical contract volume for membership sales both reached record highs.

Contract Values of Membership FY2023 93.4 billion yen :Total for Hotel, Medical, and Golf

・Hotel membership value totaled 83.8 billion yen, with robust sales of memberships centered on the SANCTUARY COURT series. This surpassed the previous fiscal year's record high of 82.6 billion yen, which had been driven by the launch of two new properties.

・Medical membership value also reached 8.7 billion yen, surpassing the previous record high of 7.4 billion yen for the fiscal year ended March 31, 2022 by almost 20%.

③The company expects to again achieve record highs in sales, operating income, and ordinary income in the current fiscal year.

Plan for FY2024 : Net sales 233.2 billion yen and Operating income of 22.0 billion yen

・Given the sales inventory situation in the first half of the current fiscal year, contract volume is expected to be down slightly year on year. The company is scheduled to open several new properties from the middle of the fiscal year onward.

・"Sanctuary Court Biwako" will open in October, and the company plans to record a lump sum of deferred real estate gains.

・The company expects to achieve its highest profit for the third consecutive year in the following fiscal year, the third year of the medium-term management plan, which ends in FY2025. Targets for the third year of the plan are currently being scrutinized and reviewed.

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Financial Highlights FY2023	(April to March)	RESORTTRUST GROUP
	RESORTTRUST GROUP
		RESORTTRUST GROUP

【Financial Highlights FY2023】

Announcement in	Announcement in
November, 2023	May, 2023	(Million yen)

	2023/3	2024/3	YoY
	results	results	Difference
Net Sales	169,830	201,803	+18.8%
Operating Income	12,270	21,119	+72.1%
Ordinary Income	13,247	21,807	+64.6%
Net Income	16,906	15,892	(6.0%)
Evaluated net sales	205,304	215,275	+4.9%
Evaluated	22,358	23,899	+6.9%
Operating Income

2024/3	vs. revision	2024/3	vs. initial
revision targets	targets	Initial targets	targets
202,000	(0.1%)	200,000	+0.9%
21,000	+0.6%	18,000	+17.3%
21,200	+2.9%	18,000	+21.2%
15,000	+5.9%	12,000	+32.4%
214,300	+0.5%	208,000	+3.5%
22,300	+7.2%	17,800	+34.3%

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

【Year to date Historical 3-Year Trends in Evaluated Operating Income】

* Figures in blue graphs are operating income on a recorded basis.

2022/3	2023/3	2024/3
result	result	result

	Takayama
	following opening
	(deferred
Takayama	realization)
prior to opening
(deferred)

(Reference)

* Evaluated net sales/Evaluated operating income:

In the pre-opening hotel membership sales, accounting figures for the real estate cost of the membership fee is deferred until the opening of the hotel as the revenue is realized in a lump sum at the time of opening. Evaluated operating income represents income assuming that such income to be deferred had been recorded during the current fiscal year.

In addition, it is used as a management indicator of real performance during the current fiscal year, taking into account the effect of Accounting Standard for Revenue Recognition for medical memberships, etc.

2

Financial Outline (1) Contract Values of Membership

RESORTTRUST GROUP

FY2023/Increase in the number of members RESORTTRUST GROUP

RESORTTRUST GROUP

• Contract Values of Membership FY2023/ Increase in the number of members 】 (Hotel + HM)

(billion yen)	(unit)

・Hotel contract volume further exceeded the record contract volume of the previous fiscal year (FY2022), which included the effects of the sale of two properties of Biwako and Nikko. HM contract also maintained a record high sales pace, which accelerated particularly in the second half of the fiscal year.

・While growth in new members (number of units) is slightly down year on year, partly due to strategic switching in line with inventory progress by property and type, there was a solid increase of over 7,500 units.

3

Financial Outline (2)

FY2023 Occupancy rate/Spending per visitor

【FY2023 Occupancy rate/Spending per visitor 】

RESORTTRUST GROUP RESORTTRUST GROUP

RESORTTRUST GROUP

(yen)

・The membership hotel occupancy rate further exceeded the level in the same period of the previous fiscal year, when it recovered significantly beyond pre-COVID-19 levels.

・The unit price also rose solidly year on year, due to the full-year contribution of the price revisions of November 2022. (FY2020, unit prices rose due in part to lower utilization rates at COVID-19.)

4

Financial Outline (3):Operating Income FY2023

(compared with the same period of the previous FY)

RESORTTRUST GROUP

• Year to date consolidated operating income change (vs. previous year) 】

・In the membership segment and hotel operations, there was a rise in personnel costs and increase in repairs to employee dormitories and other facilities, etc., but it was compensated by the rise in hotel occupancy rates and unit prices and operating income increased year on year.

・Sales of hotel memberships and medical memberships were extremely strong. A recovery in profitability in the Senior-life business was also a contributing factor.

5

(announced as "Early Adopter" in Davos)

Financial Outline (4) :Topics for which measures were implemented

in FY2023	RESORTTRUSTGROUP
	* Underlined are changes/progress from January to March.
	Enhancing earning power and improving profitability

・Revision of membership prices: Approx. 5% hike in price from June (from end of September for SANCTUARY COURT NIKKO).

・Deliberation on new facilities scheduled to start construction in the next fiscal year: Construction of at least two more sites to be started in the next fiscal year, taking into account the inventory situation in Tokyo, Nagoya, and Osaka.

・Penetration of web-based reservations and smart check-in/out⇒Web-based reservation rate is rising, target 50%.

・Announced the opening of new HIMEDIC facilities (Osaka, Tokyo, and Yokohama), and launched solicitation of applications for the Osaka Nakanoshima membership at a new price in December.

・Announced a plan for the first new senior residence property in the central Tokyo area and expanded facilities with hospice care.

• Concluded agreements with overseas clubs on facility mutual use to launch the services in January.

・Expansion of sales channels (increase in prospective customers) and enhancement of efficiency in sales activities including the promotion of contracts using digital methods.

・Official LINE account: Increased the number of "friends" (Increased from 215,000 as of March 31, 2023 to 319,000 as of March 31, 2024)

Human resources ・ Sustainability

・Improvement of compensation: Across-the-board pay + wage hike, raise and stabilize the bonus multiplier, and revise the system of long breaks during the shifts of employees, dormitory maintenance and repairs carried out.

・Conducted to grant treasury sharesto employees through the Resorttrust Employee Shareholding Association.

＜ES/engagement score increased.＞

・Enhancement of recruiting activities: Referral hiring, on-the-spot hiring, hiring of foreign nationals, etc. ・Solar power generation installed at all locations, Registered as "TNFD Adopter"

・Holding of regular sustainability forums and deliberation on activities in cooperation with the community and customers ・Launch of inter-sectionalcross-training

Capital efficiency ・ Governance

・Appointment of 3 new Outside Directors in June to strengthen the governance system and improve the independence of the Board of Directors

・Realization of management that emphasizes capital efficiency even more towards the target ROE of 12%: Already conducted 3.0 billion yen share buyback

・Resorttrust selected for inclusion in the MSCI Japan ESG Select Leaders Index in addition to the MSCI Japan Empowering Women (WIN) Select Index

Promote the new medium-term management plan "Sustainable Connect"	6

Financial Outline (5) Appendix: Policy-related date for FY2023

RESORTTRUST GROUP

GROUP

GROUP

【Reference】As the company implements measures to achieve its mid-term plan, it is improving various indicators other than PL items, mainly those related to human resources.

【 Engagement Survey 】

【ES（ Employee Satisfaction ） Survey 】

Simple average of 4 main items, including trust and attachment to the company and satisfaction with joining the company / Maximum: 5

Introduction of

"Wevox "

（Atrae, Inc.）

from April

2023

【Retirement rate 】

Compared to the service and lodging industry averages, the level is low to begin with, but even in the most recent fiscal year, it declined by 1.7 points.

※Aggregation of Hotel Divisions

※Aggregate for the entire group

※Resorttrust Non-consolidated Aggregate

【 Hotel Web Reservation Rate 】	【 Percentage of hotel members holding	【 Shareholder return(billion yen)】
Number of app		HIMEDIC memberships 】
34.9％		Billion yen
registrations tied
to memberships :	17.2％
Currently about
150,000
units(75%)

【ROE】

Promote the new medium-term management plan "Sustainable Connect

7

Financial Outline (5) Appendix:

Long-term trends in contract and usage unit prices

RESORTTRUST GROUP GROUP

GROUP

• Membership Sales 】 In addition to the increase in the price range of main sales products, the unit price per contract is also on the rise due to the increase in the ratio of new contracts.

9.49million yen

3.82million yen

Started selling sanctuary court

（ Price revision in FY2023 ）

• Facility Operation 】Occupancy will gradually shift to relatively high unit-price hotels such as the Rikyu series, and continue to rise in a long-term trend.

1,682 thousand people

2,391 thousand people

Impact of

COVID-19

Revised room and meal charges

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Segment Sales and Operation Income FY2023

3 main business segments

(April to March )

RESORTTRUST GROUP

RESORTTRUST GROUP

【Segment Sales and Operation Income FY2023】

【 Year to date Historical 3-Year Trends in Evaluated

Operating Income】

(Million yen)

2023/3

2024/3

YoY

2024/3

vs. revision

2022/3

2023/3

2024/3

results

results

Difference

revision targets

targets

result

result

result

Membership

Sales

34,945

58,701

+68.0%

60,610

(3.1%)

◆Membership

Operating Income

11,182

18,798

+68.1%

18,400

+2.2%

Hotel and

Sales

89,747

95,492

+6.4%

94,130

+1.4%

Restaurant

Operating Income

4,167

4,494

+7.9%

5,180

(13.2%)

Medical

Sales

44,422

46,899

+5.6%

46,590

+0.7%

Operating Income

6,053

7,164

+18.4%

6,930

+3.4%

2023/3

2024/3

YoY

2024/3

vs. revision

results

results

Difference

revision targets

targets

Membership

Evaluated net sales

69,011

69,658

+0.9%

72,000

(3.3%)

◆Hotel and Restaurant

Evaluated Operating Income

19,861

20,179

+1.6%

20,190

(0.1%)

Hotel and

Evaluated net sales

89,747

95,492

+6.4%

94,130

+1.4%

Restaurant

Evaluated Operating Income

4,577

4,494

(1.8%)

5,180

(13.2%)

Hotel Trusty

Medical

Evaluated net sales

45,831

49,414

+7.8%

47,500

+4.0%

Withdrawal

costs

Evaluated Operating Income

7,461

9,679

+29.7%

7,840

+23.5%

・Membership: In addition to the 7.4 billion yen in deferred income on Takayama through the previous fiscal year, the company recorded 1.1 billion yen in opening- related expenses in the current fiscal year.

・Hotel and Restaurant: While both occupancy rates and	◆Medical
unit prices rose significantly during the period under
review, unscheduled repairs-including those to
employee dormitories-were made in 4Q (1.3 billion
yen increase year on year, 1.0 billion yen increase vs.
plan).
・Medical: In addition to growth in HIMEDIC, enhanced
profitability in the Senior-life business was a
contributing factor.	9