(E04655) Stock Price

**Nankoku Industrial Development's Business Operations**

Nankoku Industrial Development is a company whose primary business is golf course management. The company operates and manages golf courses it owns, generating revenue primarily through greens fees. In addition to golf course operations, the company also provides ancillary services at its facilities.

The company's main revenue source is greens fees paid by individual and corporate golfers. Beyond regular play by amateur golfers, important revenue streams include corporate entertainment, training events, and tournament hosting. Business performance is characterized by fluctuations in usage based on season and day of the week.

While disclosure materials provide limited details on business operations, ancillary services associated with golf course management likely include restaurant and pro shop operations, golf equipment sales, and banquet and event facility rentals. These supplementary businesses are believed to contribute to enhanced customer satisfaction and revenue diversification.

Nankoku Industrial Development operates under the corporate philosophy of being "a golf course where customers can experience tradition and history" and "a golf course with top-tier customer satisfaction." The company is pursuing competitive golf course management strategies while prioritizing customer-focused facility development in a challenging business environment, with the goal of establishing a stable revenue base.

The company's key investment focus is on improving facility safety and comfort. Priority initiatives include repairing and upgrading cart roads throughout the course and renovating the clubhouse. Player safety is positioned as the top priority, with continuous course maintenance designed to enhance convenience and comfort, thereby differentiating the facility from competitors. Through these capital investments, the company aims to simultaneously improve customer satisfaction and strengthen competitive advantage.

In response to the COVID-19 pandemic, the company has positioned infection prevention measures as a new value proposition. The company continues to provide a safe golf course environment through disinfection measures such as alcohol sanitizer stations and enhanced ventilation systems in facilities. This approach addresses diversifying leisure demand in the post-pandemic era. As the golf market matures and price competition intensifies, the company is pursuing sustained customer retention by emphasizing service quality centered on safety.