■ Activity Achievements

1. Achievements of New Store Openings

In the first half of the fiscal year ending February 2025, a total of three new stores were opened. Specifically, the Japanese Restaurant "Mizuiro" was opened on the high floor of Caretta Shiodome (May 22) *1, "BAGUS Umeda" was opened in Osaka Umeda (May 30) *2, and "Sakezen Honohomare" was opened in Nishi-Shinjuku (June 27) *3, each starting up at a pace exceeding expectations. While the pace of new openings will continue to be somewhat restrained, the two stores in the "Dining Business" represent new brands with excellent locations and concepts, showcasing the unique operational development capabilities of DD Group <3073>. Additionally, in the "Hotel and A-REIT ETF Business," as previously mentioned, "3S HOTEL ATSUGI" was rebranded and opened on March 15 *4.

*1 With the concept of "Borderless Japanese Cuisine," it offers innovative Japanese cuisine that is not bound by form. The view of the Tokyo Bay Area unfolds right in front, allowing guests to enjoy a space and cuisine themed around the harmony of Japanese spirit and Western elements (based on the company's release summarized by us. The same applies below).

*2 This marks the second store opening in the Kansai area under BAGUS following the "BAGUS Shinsaibashi".

*3 A new brand of Japanese cuisine with rice as the main ingredient. Sake is carefully selected based on the concept of "Sake that tells a story," with a focus on sake breweries, providing delicious rice and dishes that pair well with each.

*4 A hotel themed around the new sauna & stay experience in Shonan, aiming to make "time spent in a hotel more enjoyable!" It features a total of 263 rooms, making it one of the largest in the central Kanagawa area, and newly established separate men’s and women’s authentic Finnish-style sauna & large public bath that can also be used for day trips.

2. Creation of New Services and Markets

As a new initiative utilizing Licensed Intellectual Property (IP) content, the subsidiary Stem Inc has been entrusted with the operation of "Chikawa Ramen Tonkotsu"*, which will open for a limited time at Nagoya Parco (March 19) and Shibuya Parco (August 23), as well as Shinsaibashi Parco (November 15), operated by Parco Co., Ltd. This can be seen as a result of the evaluation of their expertise in managing stores using the company's group IP content.

* A store inspired by the popular ramen shop that appears in the popular work "Chikawa" by illustrator Nagano.

3. Initiatives based on the Joint Business Plan with Google Cloud.

On April 22, 2024, an announcement will be made regarding initiatives in line with the Joint Business Plan with Google Cloud Japan Inc. The company is advancing the integration of internal data infrastructure and the construction of a common management database as part of its medium-term management plan's key initiatives. This project aims to leverage cutting-edge cloud technology, practice and provide innovative work styles, and utilize Google Cloud's Technology in the field of digital marketing for AI-based data analysis and utilization. Each initiative will be jointly pursued according to the four key points: 'Optimal configuration of business systems', 'Maximization of LTV', 'Strengthening group management capabilities', and 'Development of next-generation human resources.'

(Written by Fisco Guest Analyst Ikuo Shibata)