Omuro spa Co. , Ltd (E00045) Stock Price

**Securing Stable Revenue Through Hot Spring Supply Business**

Omuro Onsen is a company operating a hot spring supply business in the Omuro Kogen villa district in Ito City, Shizuoka Prefecture. The company secures three hot spring sources within its vast business area of approximately 3 million square meters and supplies hot water stably to regional hotels, pensions, and villa owners.

**Community-Based Customer Foundation**

The company's primary customers are hotels, pensions, and villa owners located within its business area. Due to the nature of providing hot springs as essential infrastructure, the company has built a continuous and stable revenue structure. Its community-rooted business operations support revenue stability.

**Efficient Supply System in Place**

The company has installed hot water supply facilities at key locations throughout its business area and has established an efficient supply system by dividing the region into blocks. By securing stable hot spring supply from three sources and fulfilling supply responsibilities across the entire area, the company has established its position as a critical infrastructure provider in the Omuro Kogen villa district.

Omuro Hot Spring is pursuing a steady growth strategy built on two pillars: reducing operating costs and maintaining and expanding its customer base. Because the company's hot spring has a low temperature of 36°C, heating with heavy fuel oil is necessary, creating a structure where fluctuations in fuel prices directly impact profitability. In response, the company is prioritizing precise boiler temperature adjustments based on outside air temperature and actively replacing aging hot water pipes to reduce water loss.

As a priority investment area for operational efficiency, the company is focusing on equipment upgrades and energy efficiency improvements. The company plans systematic replacement of old hot water pipes with new ones and will establish an early repair system using hot spring leak detection technology to minimize loss of this valuable resource. Additionally, to address rising electricity costs, the company is considering installing inverters to reduce power consumption, aiming for comprehensive operating cost reduction.

In its customer acquisition strategy, recognizing that over half a century has passed since the residential development began and existing users are aging, the company is accepting this reality while intensifying efforts to acquire new customers. The company is strengthening information gathering on real estate market trends and, through partnerships with real estate agents and construction companies, regularly promotes "hot spring-inclusive sales and brokerage." The company plans to increase users through steady promotional activities, emphasizing courteous and attentive service in document mailings and telephone communications.

Regarding service innovation, the company prioritizes building user-friendly systems from the customer perspective. Through comprehensive service reviews including pricing structures, the company aims to improve customer satisfaction and retention rates, while advancing foundational improvements toward long-term business stability.