Rizap Group, Inc. · SAPSE:2928
Rizap — Q3 FY2024 Earnings Presentation
95 slides from Rizap's earnings presentation, Feb 14, 2024
Slide 1: Financial Results Briefing
Financial Results Briefing Fiscal Year Ending March 2024 February 14, 2024 RIZAP Group, Inc. (Ambitious Market of Sapporo Securities Exchange; Securities Code: 2928) English translation from the original Japanese-language document Copyright © RIZAP GROUP, Inc. All rights reserved. 1
Slide 2: Today's Topics
Today’s Topics １．Highlights P3 ２．Consolidated Results for Q3 FY 3/24 P4 ３．chocoZAP Business Overview P 21 ４．Existing Business Overview P 32 ５．Revision of Medium-term Management Plan P 44 2
Slide 3: Highlight
Highlight The chocoZAP business has continued to make a profit on a monthly basis since November. Earnings forecast was revised upwardly because chocoZAP achieved profitability early. 1. The chocoZAP business achieved profitability early. No. of members: 1.124 million (as of February 14) *Active me
Slide 4: Consolidated Results for Q3 FY 3/24
Consolidated Results for Q3 FY 3/24 4
Slide 5: Summary of the Consolidated Profit and Loss Statement (IFRS)
Summary of the Consolidated Profit and Loss Statement (IFRS) Cumulative Q3 of FY 3/23 Cumulative Q3 of FY 3/24 [million yen] (Apr. to Dec.) (Apr. to Dec.) Change % Change Net sales 115,259 122,988 +7,729 106.7% Cost of sales 62,720 62,934 ＋214 100.3% SG&A 53,723 65,308 +11,584 121.6% Other revenues/
Slide 6: Variation in Operating Profit/Loss (IFRS)
Variation in Operating Profit/Loss (IFRS) [million yen] Achieved first quarterly July 2022 profit since we started full- Launch of the chocoZAP brand scale investment in the 1,177 chocoZAP business. 391 Profit growth is - 286 expected further - 1,194 Up 4.2 billion yen in Q4. - 2,864 - 3,083 - 3,531
Slide 7: Variation in Operating Profit/Loss of chocoZAP (IFRS)
Variation in Operating Profit/Loss of chocoZAP (IFRS) Continuing a profit on a monthly basis since November The chocoZAP business Achieved 1 million achieved profitability early. members (Operating cash flow is expected to be positive in Q4.) Campaign Campaign Campaign Campaign Apr. May Jun. Jul. Au
Slide 8: Year-on-year Comparison of Consolidated Net Sales
Year-on-year Comparison of Consolidated Net Sales Impact of sale of Shicata business (a subsidiary of BRUNO) [million yen] [Rough breakdown] Auntie Rosa: +2,388 Thanks to healthy performance [Rough breakdown] during the discount sale, sales in REXT: -1,957 Q3 grew 125% year on year. Sales dropped
Slide 9: Year-on-year Comparison of Consolidated Operating Profit/Loss
Year-on-year Comparison of Consolidated Operating Profit/Loss [million yen] [Rough breakdown] MRK Holdings: -737 -In the first half, costs for increasing new clients were posted. (No. of the first visitors to a store: 152% YoY.) -In the second half, we will intensively release new products, and are
Slide 10: Number of Gyms/Stores in RIZAP Group
Number of Gyms/Stores in RIZAP Group chocoZAP gyms* 1,993 Gyms/stores of the 1,811 existing businesses （Stores） We continued to open 1,551 new chochoZAP gyms. 1,322 1,225 We are renovating the gyms/stores of 1,029 1,114 720 the existing businesses. 1,023 (To improve profitability by changing busines
Slide 11: Summary of the Consolidated Statement of Financial Position (IFRS)
Summary of the Consolidated Statement of Financial Position (IFRS) End of Mar. End of Dec. [million yen] Change Notes 2023 2023 Current assets 67,196 60,459 △6,737 Cash and cash equivalents △6,107 Operating and other receivables ＋2,444 Inventories △3,399 Non-current assets 75,452 87,710 ＋12,258 Prop
Slide 12: Summary of the Consolidated Statement of Financial Position (IFRS)
Summary of the Consolidated Statement of Financial Position (IFRS) “Total equity and liabilities” (total assets) increased 5.5 billion yen to 148.1 billion yen (or 110.3 billion yen, when the effects of IFRS 16 (lease) amounting to 37.8 billion yen are excluded). Consolidated Statement of Financial
Slide 13: Effects of IFRS 16 (Leases)
Effects of IFRS 16 (Leases) As the number of chocoZAP increases, rents, which are posted in the balance sheet according to IFRS, increased. J-GAAP IFRS (International Financial (Japanese standards) Reporting Standards) Interest-bearing Right-of-use liabilities assets (Lease liabilities) Ｉ Ｉ Liabilit
Slide 14: Financial Indicators
Financial Indicators Interest-bearing liabilities Augmentation of interest-bearing [100 million yen] liabilities due to the investment in chocoZAP business will the chocoZAP business enter the investment 875 recoupment phase. 827 Debt will decrease (Schematic 658 diagram) (Schematic diagram) Effects
Slide 15: Variation in Debt
Variation in Debt The chocoZAP business achieved profitability early and the increase of debt has peaked out. [100 million yen] +11 +36 +31 480 491 +49 444 439 413 364 102 152 167 ＋ 50 89 160 28 5 billion yen from equity For chocoZAP subordinated loans (executed in January 2024) Decrease in debt due
Slide 16: Financial Indicators: Equity ratio
Financial Indicators Equity ratio Equity ratio 38.3% is expected to rise 34.0% 29.8% 25.4% from this term. 27.6% 22.4% Ratio of net assets 26.5% After adjustment Adjustment IFRS (Excluding the 21.7% 16.9% (Effects of IFRS 16) effects of IFRS 16) 13.5% Equity ratio Ratio of net 14.4％ 8.0％ 22.4％ 17.2%
Slide 17: Financial Indicators: D/E ratio
Financial Indicators D/E ratio (net D/E ratio) Improvement in the D/E ratio. The ratio will improve from the second half. 3.2 2.9 3.1 2.4 2.3 2.4 2.4 D/E ratio 1.8 1.9 1.9 1.5 Net D/E ratio 1.2 1.0 1.0 1.0 0.3 0.3 0.3 End of End of End of End of End of End of End of End of End of Mar. 2022 Jun. 2022
Slide 18: Cash Flows Overview
Cash Flows Overview Operating cash flow:1,261 million yen (△106 from the previous term) Operating CF Investing CF Financing CF [million yen] [million yen] [million yen] Adjustment of depreciation (non asset item) 12,216 million yen(＋3,388) ･interest expense 1,883 million yen(+719) Profit/loss befo
Slide 19: Operating Cash Flow Overview
Operating Cash Flow Overview Operating cash flow decreased temporarily due to the payment website change, but an improvement is expected from Q4 onward. Operating CF Operating cash flow of Q3 (3 months): -1,034 million yen (-4,012 from Q2) (3 months) [million yen] 2,977 Adjustment of depreciation (
Slide 20: Revision to the Full-year Consolidated Earnings Forecast for FY 3/24
Revision to the Full-year Consolidated Earnings Forecast for FY 3/24 Full-year earnings forecast was revised upwardly as the chocoZAP business achieved profitability early. [100 million yen] Previously announced Revised Change forecast Profit growth as the forecast (October 26, 2023) chocoZAP busine
Slide 21: chocoZAP Business Overview
chocoZAP Business Overview 21
Slide 22: Number of chocoZAP Members
Number of chocoZAP Members (Forecast) (members) We will focus on 1,124,000 improving quality in the 1,010,000 +260,000 second half of the year. +200,000 750,000 550,000 +250,000 We will accelerate the pace to 295,546 +195,000 increase members again from +35,000 Launch of the 100,156 the next fiscal
Slide 23: Improvement in Machine Failure Rate
Improvement in Machine Failure Rate Machine failure rate Introduced new services on a full- We will focus on Visualization of failure Enhanced maintenance scale basis Number of users rapidly increased RIZAP trainers dealt with improving quality in the Swifter response over 2,500 failures. through th
Slide 24: Measures for Improving Sanitation and Management Systems
Measures for Improving Sanitation and Management Systems We will focus on improving quality and strengthening management structures in the second half of the year. Improvement of sanitation surveys Enhancement of DX-based Increase of cleaning partners (It became possible to identify monitoring at re
Slide 25: Initiatives to Improve Exercise Habits
Initiatives to Improve Exercise Habits We will focus on improving quality and customer satisfaction in the second half of the year. Trophy AI advisor campaign Comprehensive report Targets: New members in January Started providing the beta Period: February 1 to 29 version in December. Rolled out serv
Slide 26: New Year Campaign Status
New Year Campaign Status We will focus on placing a curb on advertising investment/gym openings and improving quality in Q4. Ad costs (indicator) No. of gym opening Members 1.00 281 gyms 1.124 million 1.01 million 145 gyms 0.19 As of the announcement As of the announcement Oct. 2023 Jan. 2024 Q3 of
Slide 27: Variation in the number of chocoZAP gyms
Variation in the number A temporary plateau of chocoZAP gyms created by systematically refraining from opening gyms (gyms) 1,370 A temporary plateau will be created by 1,320 1,333 (est.) (As of Feb. 14) systematically refraining from opening gyms. 1,160 1,225 1,150 Gym openings will be accelerated a
Slide 28: Expansion of Gym Openings in Regional Areas
Expansion of Gym Openings in Regional Areas Ratio of gym openings in regional areas with respect to the total number of gym openings The membership base was Gyms in large Gyms in large expanded as we increased cities cities 70.1% 51.0% gym openings to regional Average number of members Average numbe
Slide 29: Effects of Members Who Use Multiple Gyms
Effects of Members Who Use Multiple Gyms Weight loss rate (index) Great results in weight loss rate among Members who use one chocoZAP gym Members who use multiple chocoZAP gyms members using multiple gyms -1.00 -2.28 *Value of members who use one chocoZAP gym was assumed to be -1.00. 29
Slide 30: EC Business Initiatives: New chocoZAP Brand Products
EC Business Initiatives: New chocZAP Brand Products Bpro: High Cost-effective DayMe: Beauty Protein Protein Raked 1st in the daily Raked 1st in the ranking*1 category ranking*2 *1 As of December 19, 2023 *2 As of December 27, 2023 30
Slide 31: Main Awards Received by chocoZAP
Main Awards Received by chocoZAP Nikkei Trendy 2023 Hit Prediction Ranking 1st Nikkei Trendy 2023 Hit Products 2nd DIME Trend Awards: Lifestyle Category Award Gold Award Nikkei MJ 2023 Hit Product Ranking East Komusubi (ranked 4th) Marketer of the Year 2023 Excellence Award Japan Naming Award 2023:
Slide 32: Existing Business Overview
Existing Business Overview 32
Slide 33: Shift to the Subscription Model
Shift to the Subscription Model Revision to the sales posting policy following the shift to the RIZAP prime membership system (from the one-shot model to the subscription model) Basic members One-shot Prime members (Conventional model) model (New membership system) Subscription model Sales from sess
Slide 34: Ratio of Prime Members
Ratio of Prime Members （%） 76.8 74.5 73.2 72.2 56.9 Ratio of prime members 36.2 is 73.2% 22.0 7.2 Q4 of Q1 of Q2 of Q3 of Q4 of Q1 of Q2 of Q3 of FY 3/22 FY 3/23 FY 3/23 FY 3/23 FY 3/23 FY 3/24 FY 3/24 FY 3/24 34
Slide 35: To "Lifelong" Services
To “Lifelong” Services Where We Will Support Customers for the Rest of Their Lives Retention rate a year later and average spending per customer have improved considerably compared with Q2. Average spending per customer (LTV) Retention rate a year later 12 months after sign-up 5.3x ※3.0x in Q2 2.3x
Slide 36: chocoZAP and RIZAP Collaboration
chocoZAP and RIZAP Collaboration Promoting synergy measures in the chocoZAP and body transformation business chocoZAP opening support chocoZAP opening support chocoZAP machine failure and (interior work) (machine installation) replacement support Point 1 Point 1 Point 1 RIZAP staff members conduct R
Slide 37: chocoZAP and RIZAP Collaboration
chocoZAP and RIZAP Collaboration chocoZAP members are enrolling in the RIZAP body transformation business. Launched from Jan. 2024 Serious Desire to get in 7.8% of new RIZAP shape seriously members (January) Middle Offer for chocoZAP Desire to members Freely go to the gym and have fun Light 37
Slide 38: Corporate Users of RIZAP Programs
Corporate Users of RIZAP Programs Cumulative number of 310,000 participants Cumulative number of companies/participants Over 1,900 companies 310k participants Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 (Random ord
Slide 39: Contributing to Health-oriented Business Administration with New Plan
Contributing to the Health-oriented Business Administration of Enterprises with Our New Plan RIZAP approaches the increasing people subject to the specific health guidance. Over 270 companies and 24,500 people are expected to sign up. In addition to the significant price revisions, we will refund if
Slide 40: Results of RIZAP Program for Specific Health Guidance
Results of RIZAP Program for Specific Health Guidance (Over 9,700 people have adopted this program) The measurements exceeded the evaluation standards set by the Ministry of Health, Labor and Welfare (body weight: -2.0 kg, abdominal girth: -2.0 cm) considerably. Body weight Abdominal girth BMI ｰ3.2k
Slide 41: Collaboration with Local Governments (35 Municipalities)
Collaboration with Local Governments (35 Municipalities) We are having discussions with some local Hokkaido governments, to establish convenience Kaminokuni Town gyms based on the collaboration between private and public sectors. Nagano Pref. Aomori Pref. Fukui Pref. Kawakami Village Ina City Mutsu
Slide 42: REXT
REXT Profitability improved through the shift to highly profitable business models. Trading cards Entertainment Reuse business business business (Bato-loco Kawasaki-ekimae shop) (WonderGOO+ Tsukuba shop) (WonderREX Hitachino Ushiku shop) As trading cards remained popular, we opened 2 new Due to the
Slide 43: Auntie Rosa (J-GAAP)
Auntie Rosa (J-GAAP) Net sales Incerased 125% year on year Net sales 11,764 Enhancement [million yen] of EC Sales increased for 7 9,376 8,294 consecutive terms, as we 6,948 enhanced EC measures. 4,366 1,724 1,985 1,392 Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative Cumu
Slide 44: Revision of Medium-term Management Plan
Revision of Medium-term Management Plan 44
Slide 45: Revisions to the Medium-term Management Plan
Revisions to the Medium-term Management Plan 1. Progress on the Medium-term Management Plan 2. Competitive Advantage and Business Model 3. Revisions to the Medium-term Management Goals 4. Future Growth Strategy 5. Shareholder Return Policy 45
Slide 46: Progress on the Medium-term Management Plan
Progress on the Medium-term Management Plan Basic Strategically invest in the chocoZAP business to grow it policy into a core business Making steady progress beyond initial plans No. of gyms No. of members per gym Progress rate: 66% 2,000 gyms Increase rate: 176% 843 members 1,333 gyms 477 members A
Slide 47: Progress on the Medium-term Management Plan: Market Share
Progress on the Medium-term Management Plan Share of the top five companies in the Japanese fitness market in terms of number of members 338,000 (as of the end of Sep. 2023) 1,124,000 Reached number one in (as of Feb. 14, 2024) 392,000 9.8% (as of the end of Dec. 2023) Japan in terms of 11.3% 32.3%
Slide 48: Revisions to the Medium-term Management Plan
Revisions to the Medium-term Management Plan 1. Progress on the Medium-term Management Plan 2. Competitive Advantage and Business Model 3. Revisions to the Medium-term Management Goals 4. Future Growth Strategy 5. Shareholder Return Policy 48
Slide 49: Factors in Rapid Growth and Keys to Differentiation
Factors in Rapid Growth and Keys to Differentiation Rapidly opening many directly-managed convenience gyms Scientific marketing based on the analysis of an enormous volume of data Factors in Expansion of customer base through democratization of rapid services (Provide opportunities to be able to eas
Slide 50: Primary Targets
Primary Targets Creating a new market as a convenience gym for workout beginners Workout Seniors Women Workout experts beginners 36 million people 36 million people (not targeted) 100 million people (aged 65 years or older) (aged 15-64 years) (Japanese population aged 15-89 years: Prospective fitnes
Slide 51: Reduction of Costs for Opening chocoZAP Gyms
Reduction of Costs for Opening chocoZAP Gyms Equipment installation cost per tsubo* (≒ 3.3 m2) We reduced the cost by about 30% with the economies of 1.00 1.00 0.96 0.95 scale as the number of gyms 0.91 0.87 increased. We conducted additional investment in new services with 0.83 0.82 funds obtained
Slide 52: Marketing Concept of chocoZAP
Marketing Concept of chocoZAP Evolved as “chocoZAP made by customers” through the development of services based on the voices of potential customers Visualization of latent voices Identification of latent needs Scientific verification Development and design for meeting needs based on data 52
Slide 53: Verification with Landing Pages
Verification with Landing Pages (LPs) (Over 260 Kinds of Pages)
Slide 54: Verification with Banner Ads
Verification with Banner Ads (Over 8,600 Kinds of Banner Ads)
Slide 55: Verification with Flyers
Verification with Flyers (Over 560 Kinds of Flyers)
Slide 56: Cancellation Rate of chocoZAP
Cancellation Rate of chocoZAP Cancellation※ rate The cancellation rate dropped significantly. 1.13 1.08 1.03 1.00 (The ratio of members who go to a gym once or more times a 0.83 week exceeded 80%.) 0.81 0.77 0.76 0.75 0.72 0.70 0.69 0.67 0.67 0.65 0.61 0.61 0.60 Jul. Aug. Sep. Oct. Nov. Dec. Jan. Fe
Slide 57: Increasing opportunities to make exercise a habit with new services
Increasing the number of opportunities to make a habit of exercising by expanding new services (Members can use any services as they want without paying any additional fees.) Existing services New services Exercise Self-beauty care Self-whitening Self-manicuring Choco Cafe *Effects of medicinal whit
Slide 58: Making special services more accessible
Democratization of services Making special services more accessible Providing accessible services which can be used by anyone Locational Self-beauty Self- Exercise Self-whitening Choco Cafe convenience care manicuring (Multiple gyms) *Effects of medicinal whitening solvent and brushing Open 24 hours
Slide 59: Effect of New Services
Effect of New Services No. of visit No. of users Number of visit, number of users, number of new members, and cancellation rate were increased and improved. Gyms without Gyms with Gyms without Gyms with new services new services new services new services No. of new Improvement of members cancellatio
Slide 60: Utilization of Member IDs and Life Logs
Utilization of Member IDs and Life Logs To propose optimal solutions by utilizing member IDs and life logs Accumulation of life Visualization To propose logs linked with and analysis of data personalized solutions member IDs Heart rate and sleep behavior Gym visit Body composition Content data viewi
Slide 61: DX Conducted Almost All by Ourselves
DX Conducted Almost All by Ourselves Through in-house production, we accumulate knowledge assets and increase development speed. (DX personnel: Over 130) As of October 2022 Present External In-house In-house 77% 100% 23% *DX personnel: Total number of employees of RIZAP TECHNOLOGIES, Inc. and the me
Slide 62: Revisions to the Medium-term Management Plan
Revisions to the Medium-term Management Plan 1. Progress on the Medium-term Management Plan 2. Competitive Advantage and Business Model 3. Revisions to the Medium-term Management Goals 4. Future Growth Strategy 5. Shareholder Return Policy 62
Slide 63: Medium-term Management Goal
Medium-term Management Goal Updated medium-term management goals as the chocoZAP business achieved profitability early. Target operating profit: 30 billion yen for FY 3/26 (initial target) / 40 billion yen for FY 3/27 (additional target) Term before last Previous term This term FY 3/23 FY 3/24 FY 3/
Slide 64: Medium-term Management Goal (Operating Profit)
Medium-term Management Goal (Operating Profit) We added target operating profit and aim to achieve sustainable growth. 30 billion yen for FY 3/26 (initial target) / 40 billion yen for FY 3/27 (additional target) 40,000 [million yen] (additional target) Full-scale launch of the 30,000 chocoZAP (initi
Slide 65: Medium-term Management Goal (Number of chocoZAP Gyms)
Medium-term Management Goal (Number of chocoZAP Gyms) Upwardly revised the gym opening target 3,800 (additional (gyms) target) 2,800 (upward revision) 1,370 (estimate) 2,000 479 16 FY 3/22 FY 3/23 FY 3/24 FY 3/26 FY 3/27 65
Slide 66: Potential for Opening chocoZAP Gyms
Potential for Opening chocoZAP Gyms No. of offices/stores/shops/ gyms in Japan 23,623 21,501 We assume more than 10 (Target) Over 10,000 gyms (target) times the current number of 12,043 gyms in the future. 1,901 1,370 End of Mar. 2024 (est.) 1,229 800 687 1,158 733 638 840 730 603 *Surveyed by our c
Slide 67: chocoZAP Business Area
chocoZAP Business Area Distance between the addresses of chocoZAP members and chocoZAP gyms More than 3 km chocoZAP business 2 to 3 km 8% 7% area is small. (60% of members live within 1 km.) Living within 1 km 1 to 2 km 25% 60% Great potential to open gyms around Japan (Currently investigating over
Slide 68: Profit/Loss per Gym
Profit/Loss per Gym Visualized variation in operating profit/loss Period for Upfront Investment recoupment attracting Recoupment customers investment period period period brough forward due to Present (Feb. 14, 2024) strong business results As of the announcement of financial results for Q4 (May 15,
Slide 69: Variation of Ratio of Existing Gyms among All Gyms
Variation of Ratio of Existing Gyms among All Gyms Ratio of existing gyms To make a profit in the 22% New gyms (0 to 4 months chocoZAP business by 49% 40% after opening) increasing the ratio of 58% 57% existing gyms Existing gyms 100% (5 or more months after opening) 78% 60% 51% 43% 43% Sep. Dec. Ma
Slide 70: Investment Plan (chocoZAP Business)
Investment Plan (chocoZAP Business) Making progress on the investment plan ahead of schedule (progress rate: 73%). Planning to investment 40 billion yen over the next three years. Initial plan Results Progress Future investment plan (million yen) (FY 3/23 to FY 3/26) (FY 3/23 to FY 3/24) rate (Next
Slide 71: Policy for Selection and Concentration
Policy for Selection and Concentration Investment for improving the services of existing chocoZAP gyms and developing new services Investment recoupment in the past Selection and business sale projects*1 concentration Total investment amount: 8,750 million yen*2 Sale of 10 businesses since 2018 To
Slide 72: Revisions to the Medium-term Management Plan
Revisions to the Medium-term Management Plan 1. Progress on the Medium-term Management Plan 2. Competitive Advantage and Business Model 3. Revisions to the Medium-term Management Goals 4. Future Growth Strategy 5. Shareholder Return Policy 72
Slide 73: Future Growth Strategy
Future Growth Strategy 1. Creation of the secondary 2. Contribution to solving source of revenue social issues 73
Slide 74: Sustainable Growth Model for the chocoZAP Business
Sustainable Growth Model for the chocoZAP Business Toward sustainable growth by creating the secondary source of revenue Loop diagram of chocoZAP Jeff Bezos’ loop diagram sustainable growth (reference) Secondary source of Sustainable growth Secondary revenue source of (advertising business, etc.) lo
Slide 75: chocoZAP Partners
A new source of revenue in the chocoZAP business: Advertising Platform Business New business committed to all partners: “chocoZAP Partners” Achieve your own extra self-fulfillment with hands-on experience-style commitment advertising Full-scale launch on February 13, 2024 75
Slide 76: Overview of the chocoZAP Partners Business
Overview of the chocoZAP Partners Business Full-scale launch of our unique advertising business utilizing the management base of chocoZAP Commitment to the product Commitment to the self-fulfillment of promotion of advertisers members High potential Personalized platform with 1 advertising million m
Slide 77: Uniqueness of the chocoZAP Partners Business
Uniqueness of the chocoZAP Partners Business Measurement of User selection Real points of Digital points of Measurement of behavioral 1 (characteristics) 2 contact 3 contact 4 effectiveness 5 changes (vital data) i. ID cannot be identified, ii. Data continuity and central management advertising stra
Slide 78: Characteristics of the chocoZAP Partners Business: Advertising potential
Characteristics of the chocoZAP Partners Business Profitability Productivity Safety Advertising potential Little withdrawal risk due Trend for the retail media improves in proportion to market is expanding. to no initial investment in an increase in the number fixed assets of chocoZAP members. Japan
Slide 79: Characteristics of the chocoZAP Partners Business: Growth Potential
Business Characteristics of the chocoZAP Partners Business Growth Potential Plan to place the advertisements of many companies two months after launch of the business. ライフネット生命グループ えがお 79
Slide 80: Future Growth Strategy
Future Growth Strategy 1. Creation of the secondary 2. Contribution to solving source of revenue social issues 80
Slide 81: Initiatives to Solve Social Issues Using chocoZAP
Initiatives to Solve Social Issues Using chocoZAP Problems faced by local chocoZAP’s convenience gyms based on the collaboration between private and governments public sectors to solve social issues Making exercising a regular habit and preventing Increase in medical and nursing care decline in ph
Slide 82: Toward the Spread of Convenience Gyms Based on Public-Private Collaboration
Toward the Spread of Convenience Gyms Based on the Collaboration Between Private and Public Sectors Aiming to be a part of health infrastructure by promoting the spread of convenience gyms based on the collaboration between private and public sectors to over 100,000 candidate locations Convenience g
Slide 83: First Convenience Gym Based on Public-Private Collaboration (Yabu City)
First Convenience Gym Based on the Collaboration Between Private and Public Sectors (Yabu City, Hyogo Prefecture) Number of members per approx. 3.3 square meters of gym area Successfully secured members even at a gym in 16.9 a depopulated area. 2.2 Regular Yabu Y Town Gym gyms* (Yabu City, Hyogo Pre
Slide 84: Second Convenience Gym Based on Public-Private Collaboration (Kisosaki Town)
Second Convenience Gym Based on the Collaboration Between Private and Public Sectors (Kisosaki Town, Mie Prefecture) Population ranking by municipality (Total of 1,718 municipalities) Decided to open convenience gyms Municipality Population based on the collaboration between 1 Yokohama City, Kanagaw
Slide 85: Contribution to Solving Social Issues
Contribution to Solving Social Issues Acceleration in the pace of gym openings in order to contribute to solving the 2024 problem in logistics Creation of new opportunities for Health issues for transportation drivers refreshment 1. Open gyms on expressways Business partnership with Central Nippon E
Slide 86: Envisioned Image of chocoZAP Gym on an Expressway (Exterior)
Envisioned Image of the Opening of a chocoZAP Gym on an Expressway (Exterior) Decided to open around May 2024 as a tenant on the second floor of Nihondaira Rest Area (Inbound)
Slide 87: Envisioned Image of chocoZAP on an Expressway
Envisioned Image of chocoZAP on an Expressway
Slide 88: Global Expansion of chocoZAP
Global Expansion of chocoZAP Scheduled to expand into six cities in three countries Currently opening nine gyms as test marketing Beijing, China Shanghai, China Los Angeles, US Opened 3 gyms Opened 2 gyms Opened 1 gym Chengdu, China Hong Kong, China Taiwan Scheduled to open 2 gyms Opened 2 gyms Open
Slide 89: Revisions to the Medium-term Management Plan
Revisions to the Medium-term Management Plan 1. Progress on the Medium-term Management Plan 2. Competitive Advantage and Business Model 3. Revisions to the Medium-term Management Goals 4. Future Growth Strategy 5. Shareholder Return Policy 89
Slide 90: Special Benefits to Commemorate chocoZAP Becoming Largest Gym in Japan
Special Benefits to Commemorate chocoZAP for Becoming the Gym with the Largest Number of Members in Japan (Rights are determined at the end of March 2024.) Yield improvement with the expansion of chocoZAP benefits and special benefits Yield Number of compared to chocoZAP benefits Special benefits Gi
Slide 91: Dividend Policy
Dividend Policy Dividend per share (yen) Consolidated dividend payout ratio: 20% Resumption of dividends in the investment (Same dividend policy as FY 3/18 and before) recoupment period 3.34 2.77 *Policy to pay a dividend based on the premise of achieving profitability in FY 3/25 and securing 1.74 d
Slide 92: Summary
Summary 1. The chocoZAP business achieved profitability early, and we will accelerate growth again from the next fiscal year. The chocoZAP business has continued to make a profit on a monthly basis since November 2023. Profit growth is expected further in Q4. A temporary plateau will be created by
Slide 93: We are here so that everyone can lead a life to realize his/her own value
We are here so that everyone can lead a life to realize his/her own value. 93
Slide 94: Corporate Profile (As of the End of March 2023)
Corporate Profile (As of the End of March 2023) Corporate RIZAP Group, Inc. name Securities 2928 (Ambitious Market of Sapporo code Securities Exchange) Established April 2003 Takeshi Seto, Representative Founder / CEO Capital 19,200,440,000 yen No. of outstanding 556,218,400 shares shares Consolidat
Slide 95: Disclaimer
Disclaimer This material was produced by RIZAP Group, Inc. (hereinafter referred to as “our company”) for providing information on our company and our group companies (hereinafter collectively referred to as “our corporate group”) and is not intended for soliciting you to buy the shares or other sec