BUSINESS ENVIRONMENT

During the cumulative third quarter of the fiscal year under review, the Japanese economy as a whole remained on a moderate recovery trend, with the effects of various policies becoming apparent, such as a pick-up in personal consumption and private capital investment, and improvements in the employment and income environment. Ta. However, the future remains uncertain due to supply chain disruptions due to rising geopolitical risks, and soaring energy costs and raw material prices.
 In this environment, our group strives to create new value in the bridal market, hotel market, and wellness and relaxation (W&R) market, create high-quality and attractive stores, and provide high-value-added services to diversify. We have strived to expand sales and improve profitability by accurately responding to the needs of our customers.
 In the hotel business, the number of foreign visitors to Japan has increased to 2 million due to the increase in the number of domestic tourists due to the lowering of the new coronavirus infection to Category 5 and the lifting of travel restrictions (Japan National Tourism Organization, "Number of foreign visitors to Japan (September 2023 estimate) The same number has recovered to 96.1% compared to the same month in 2019. As a result of these factors, the occupancy rate and unit price increased and remained stable. In addition, the number of weddings held in the wedding business and hotel business is returning to normal times, with almost no postponements due to the impact of the new coronavirus infection, which frequently occurred until last year. However, it is difficult to predict the future outlook for the unit price of weddings, as the return is stagnant due to an increase in the number of small weddings.