(E04554) Stock Price

**Asahi Kanko Business Overview**

Asahi Kanko is a company whose primary business is operating and owning golf courses in Kanagawa and Shizuoka prefectures. The company operates two golf courses: Kamakura Country Club and Kamakura Public Golf Course, and owns the facilities of Shuzenji Country Club.

The company's revenue structure consists of two forms: direct golf course income from self-operated facilities and stable rental income from facility leasing. For the two courses in the Kamakura area that it operates, the company leases facilities from Asahi International Corporation and conducts business operations. For Shuzenji Country Club, the company leases its self-owned facilities to Shuzenji Country Club Corporation.

The company's business is geographically divided between the Kamakura area in Kanagawa prefecture and the Shuzenji area in Shizuoka prefecture, serving different customer bases in each region. In the Kamakura area, the company attracts customers by leveraging convenient access from the greater Tokyo area. In the Shuzenji area, the company provides stable facility services to golf course operating companies by capitalizing on its location as a hot spring resort destination.

Asahi Kanko is prioritizing stable revenue generation and improved financial health amid challenging conditions in the golf industry. The company aims to secure visitor numbers through enhanced customer satisfaction while maintaining and increasing sales per transaction. It is making continuous investments in service quality and course improvements. In response to demographic shifts caused by the aging baby boomer generation, the company has positioned attracting younger players as a key strategic priority.

Regarding facility investment and service enhancement, Asahi Kanko is advancing planned equipment upgrades. At Kamakura Public Golf Course, the company has implemented phased investments in sprinkler systems to further improve course conditions. At Kamakura Country Club, following the full clubhouse renovation completed in fiscal 2022, the company is conducting a three-month remedial renovation from January 2025 to ensure quality and enhance member satisfaction.

As part of operational efficiency and differentiation strategy, Asahi Kanko is actively advancing digitalization initiatives. The web reservation system introduced for Kamakura Country Club members provides reservation confirmation and smart payment functions, improving service convenience while enhancing operational efficiency. This initiative also addresses the industry-wide challenge of labor shortages and is expected to generate future cost savings in operations.

Asahi Kanko's management strategy emphasizes balancing quality improvement through capital investment with operational efficiency in an increasingly competitive golf course market. While addressing sharp increases in maintenance equipment, consumables, and utility costs, the company aims to establish competitive advantage through differentiation and build a sustainable long-term business foundation through strengthened financial health.