Resorttrust, Inc.

Q2 Financial Results Briefing for the Fiscal Year Ending March 2021

November 11, 2020

Event Summary

[Company Name]

Resorttrust, Inc.

[Company ID]

4681-QCODE

[Event Language]

JPN

[Event Type]

Earnings Announcement

[Event Name]

Q2 Financial Results Briefing for the Fiscal Year Ending March2021

[Fiscal Period]

FY2020 Q2

[Date]

November 11, 2020

[Number of Pages]

22

[Time]

11:00 - 11:44

(Total: 44 minutes, Presentation: 20 minutes, Q&A: 24 minutes)

[Venue]

Dial-in

[Venue Size]

[Participants]

[Number of Speakers]

2

Ariyoshi Fushimi

President

Hitomi Yagi

General Manager, Investor Relations Division

[Analyst Names]*

Hirofumi Oda

SMBC Nikko Securities Inc.

Junko Yamamura

Nomura Securities Co., Ltd.

*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A.

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Presentation

Operator: Thank you for standing by. Welcome to the financial results briefing conference call of Resorttrust, Inc. for the second quarter of the fiscal year ending March 31, 2021.

Please go ahead, Ms. Yagi.

Yagi: Hello. This is Yagi from IR of Resorttrust. Thank you very much for taking time out of your busy schedule today to join us on the financial results briefing conference call for the second quarter of the fiscal year ending March 2021. You can find the presentation material, "Financial Results Presentation for the second quarter of the fiscal year ending March 2021," on TDnet, which was uploaded at 4:00 PM on November 10. Please have it ready at hand. We will proceed mostly by following the presentation material.

We have revised the full-year forecast for the fiscal year ending March 2021, and Fushimi, President, will explain about it.

Please turn to page two of the presentation material.

The results for the second quarter of the current fiscal year were net sales of JPY86.276 billion, operating income of JPY9.98 billion, ordinary income of JPY11.159 billion, and net income of JPY5.696 billion.

In the first quarter, the declaration of a state of emergency was issued accompanying the spread of COVID- 19, which had a major impact on suspensions of hotels and medical checkup facilities, hotel operations, and

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membership sales. However, in Q2, real estate revenues from the opening of Yokohama Baycourt Club were realized, and sales of hotel memberships were strong. Sales rose by approximately JPY2.1 billion YoY, partly due to GoTo Travel Campaigns, amid recovery in operations of membership hotels. Operating income increased by approximately JPY1.5 billion.

Some subsidy income was recorded in non-operating income, amounting to JPY980 million, resulting in an increase in ordinary income of JPY2.4 billion from the previous year.

In addition, an extraordinary loss of JPY3.542 billion was recorded as the loss due to COVID-19. The facilities were closed under the declaration of a state of emergency in the first quarter, and the amount equivalent to the fixed cost burden, such as personnel expenses and rent, incurred during this period was recorded at JPY2.9 billion. Similarly, in Q2, the equivalent value of the Kahala Hotel & Resort in Hawaii, which is about approximately JPY600 million, was added.

In addition, JPY1.5 billion of subsidy income was recorded as extraordinary income during the down period. Due to these factors, net income increased by approximately JPY200 million.

Please turn to page three. I will explain the segments.

In the Membership Business Segment, net sales were JPY42.036 billion, and operating income was JPY14.39 billion. Sales of Yokohama Baycourt Club, which opened in September, were strong, and sales advanced to 88% of the contract value, which is a record high. In the current fiscal year, the opening of Yokohama Baycourt Club contributed to sales of JPY20.1 billion and income of JPY7.1 billion for the realized deferred profit of the sales made until the end of the previous fiscal year, resulting in YoY increases in sales of JPY19.8 billion and operating income of JPY6.2 billion.

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Japan

03.4405.3160

North America

1.800.674.8375

Tollfree

0120.966.744

Email Support

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Resorttrust Inc. published this content on 13 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2020 06:40:04 UTC