Fitness Clubs in Japan Today

&
“Renaissance” of the Future

Misao Mochizuki

Executive Vice President

General Manager, Health Care Business Division
Renaissance Inc.
Misao Mochizuki
Executive Vice President,
General Manager, Health Care Business Division
Renaissance Corporation
Director of the Synapsology® Institute

Tomoko Iwai
Vice President at Club Business Japan, Inc
Today’s Topics
① About Renaissance

② Situation of Japanese Fitness Clubs Before COVID-19

＆ the Impact of COVID-19

③ Current situation of the Japanese fitness industry after the

settling down of COVID-19（State of the major players)

④ Renaissance’s challenges from COVID-19

⑤ Summary: What we should aim for in the future!

About RENAISSNCE
Number of total facilities in Japan
270 2 clubs in Vietnam
Renaissance since
Sports Small Service Rehabilitation
Management Facilities
Clubs Gyms Contracts GENKI GYM

104 ２ 62 42
Affiliated Companies
Sports Clubs Service Outdoor Hanoi 1 club
Tokyu Sports Management Fitness Clubs
Oasis Contracts BEACH TOWN
Long Bien 1 club
As of March. 2023

31 13 16
Fitness Industry Fitness Industry
As of March 2023 Sales Ranking in Japan Global Sales Ranking
Number of sports club members

renaissance 332,000 1th th

Source: Club Business No.100 Source Club Business International
JULY 2018
About RENAISSANCE
“Full Service” Sports Club Business
School Business
Our existing school businesses, with 145,000 members, had a low dropout rate and a fast return post-COVID!

GOLF

SWIMMING TENNIS
About RENAISSANCE
 State of Japan's Fitness Industry During COVID-19
2019 2020 2021 2022
Net sales (billions） ¥494b ¥320b ¥411b ¥450b
(¥130 = USD$1)

Number of members (millions) 5.55 4.25 4.35 4.59

Population % belonging to a
fitness club 4.4 3.4 3.5 3.7
Frequency of club use/year 76x 64x 77x 85x
In ¥100 Pre- and Post-COVID Comparisons of Major Players
millions Fiscal Year End of March ‘19, ’20, ’21, ‘22 and ‘23
¥700
¥635

¥590 End of March '19 Sales End of March '20 Sales End of March '21 Sales
¥600
¥543 End of March '22 Sales End of March '23 Sales
¥534

¥500 ¥130=USD $1
¥461
¥450
¥435 ¥436
¥420 ¥410
¥403
¥400 ¥364 ¥371
¥360

¥302 ¥280
¥300 ¥280 ¥251 ¥275
¥247

¥200
¥140
¥113 ¥131
¥110
¥100 ¥80

¥0
 How was Renaissance able to recover?
４ primary factors
① The further development of our school business, in addition to fitness clubs.

② Promotion of our long-term care business (not subject to lockdown) and a

health care business for corporate and municipal customers.

③ Early launch of online services, in partnership with a major insurance company,

and rapid launch of new revenue sources.

④ During lockdown we dispatched our personnel to companies and municipalities

to reduce costs and promote new business development.
Importance of School Business
Our existing school businesses, with 145,000 members, had a low dropout rate and a fast return post-COVID!

During COVID, we launched

3 new fitness schools,
growing to 8,000 new
SWIMMING TENNIS GOLF 1 memberships.

TRYnations Team Training Body REmake Group Training FitnessBeginnerGATE

Development of a long-term care business (based on
the national long-term care insurance system)
• Renaissance operates 30 long-term care facilities nationwide which continued
during COVID, at the request of the government.
• The unique strengths of these 30 directly managed and franchise facilities are
services that include personalized rehabilitation to improve function, and an
original method to prevent cognitive decline in the brain.
 What is Synapsology?
• An original method developed by Renaissance which has been shown to be
effective in improving the cognitive functions of the brain.
• The method activates the brain by responding to simple movements through
changing stimuli from sensory organs such as sight and hearing, and stimulating
cognitive functions, such as attention and memory, at appropriate times.

In addition to the effectiveness of the

In more than 300 nursing homes,
clinics, and other facilities
treatment in Japan, it has also been published
in international journals Alzheimer's &
Dementia: Translational Research & Clinical
Interventions (TRCI), the official journal of the
worldwide Alzheimer's Association, and the
world's leading journal of gerontology, AGING.
Japan's top-class
dementia Medical Advisor
Early launch of online services

Sumitomo Life Insurance Co.

We collaborated on creating an online program with

Vitality, an insurance company that promotes health-
promoting insurance policies globally. Our online
program currently has 36,000 members, including
insurance policyholders (as of March 31, 2023).

Company Health Issues

COMPANY
RENAISSANCE
employees

Online Program Offerings

Sending Staff to Companies and Municipalities During Lockdown.
We are utilizing a government program to dispatch health
promotion personnel to municipalities throughout Japan. We also
dispatch personnel to vocational schools for training sports club
leaders and nursing care facilities.
We have acquired a wide variety of know-how and are expanding
this business!

Dispatch of personnel Dispatching staff to work Temporary staffing for

to municipalities in vocational schools nursing homes
Summary Thus Far
The various experiences from COVID have had a great impact on our business and have been a
major turning point for us to expand our business!
Where do we plan to go from here?
Regarding Sports Clubs:
• Further refine the value that "real" "people" can provide.
• Increase efficiency by leveraging the power of digital for tasks
such as those in which people do not provide value.
• Deepen relationships with local governments and companies
near sports clubs and discover potential customers

In addition...
Where do we plan to go from here?
There are many people outside sports club who need exercise!
To meet those people, we need to turn our eyes outward and get outside our clubs!
Let's tag-team with people from various industries who can be our partners, and get moving!

Insurance
Corporations
Companies

Pharmacies Municipalities

Hospitals
Schools

Sports Clubs
Let’s Communicate Our Value!

To increase the number of people who

can live a long and healthy life,

we must be the first to make a move!

The future of the health industry is bright!