Medium-Term Management Plan

Medium-term Management Plan Explanatory Video

medium-term management plan materials

Long-term Vision " For The Next Future3&3&3"

Vision for 2030

At the milestone of our 50th anniversary: Further improvement of customer satisfaction, employee satisfaction, brand power, labor productivity, and expansion of newly developed areas

Medium-term Management Plan Framework

Management that positions social value enhancement and shareholder value enhancement as the two wheels driving the realization of our Group's mission and sustainable growth

Enhancement of Social Value

Basic Policy

Sustainable improvement of satisfaction for all stakeholders, including customers and employees

2028 Target

Actively promote initiatives toward realizing a sustainable society

Four Important Themes

Environment	human resources
Food	Governance

Enhancement of Shareholder Value

Basic Policy

Establishment of a sound and strong business foundation that responds to future environmental changes for the realization of sustainable growth

2028 Target

Quantitative Targets

Achieve steady growth centered on the dormitory and hotel businesses, targeting a 5-year average sales growth rate of 10% and an average operating profit growth rate of 30%

External Growth

Increase the number of rooms through new development and optimize selling prices to improve the top line

Development Plan for Dormitory Business

Quantitative Target	50,000 rooms (+6,700 rooms)
Growth Strategy	Actively open new facilities around major national and public universities nationwide, expanding the market to areas where we have not yet established a presence Increase market share by deepening relationships with schools and companies Optimize selling prices in line with cost inflation

Development Plan for Dormy Inn Business

Quantitative Target	20,000 rooms (+3,600 rooms)
Growth Strategy	Focus on roadside-type establishments, including the Nono series and EXPRESS Optimize selling prices through daily control, taking into account cost inflation Actively attract inbound foreign tourists (target inbound ratio over 30%) Open new facilities in areas not yet covered among all 47 prefectures for nationwide expansion

Development Plan for Resort Business

Quantitative Target	5,500 rooms (+1,300 rooms)
Growth Strategy	Open an average of 3-4 new facilities per year from candidate locations nationwide Optimize selling prices through daily control, taking into account cost inflation Actively attract inbound foreign tourists (inbound ratio over 15%) Preparation stage for establishing sub-brands

Internal Growth

Striving to increase profitability by normalizing marketing costs and improving labor productivity through digital transformation (DX)

Investment, Shareholder Returns, and Financing

Plan aggressive development investments and large-scale renewal/DX investments to realize the next growth stage
Utilize recovering operating cash flow, real estate liquidation, and financing from financial institutions for investment funds
Real estate liquidation is being materialized through the signing of a "New Comprehensive Basic Agreement" with SMFL Mirai Partners Co., Ltd.

DX Strategy

By utilizing digital technology, we aim to improve service quality, customer convenience and satisfaction, as well as labor productivity and profitability through business efficiency

Business Site Renewal, Improvement of Sales Support Systems	Construction and Utilization of Integrated Core Database
Enhancement of Service Value	Enhancement of Intellectual Asset Value
Renewal of hotel reservation system Introduction of hotel smart check-in system Provision of web support services for dormitory residents Renewal of corporate sales and contract management systems	Continuous review of business processes Construction of databases for "customers," "buildings," and "human resources" System risk analysis and countermeasures Strengthening network security

Human Resources Strategy

Improve employee satisfaction through enhancement and review of training and personnel systems, and secure stable excellent human resources as the basis for business expansion

Organizational Revitalization through Improved Employee Satisfaction	Create comfortable workplaces and aim to improve engagement Promote the use of various leave systems and enhance welfare benefit systems Expand work styles that match lifestyles
Organizational Standardization through Functional Integration of Labor Management, Recruitment, and Education	Centralized management of quantitative and qualitative personnel information across departments Standardization of personnel information throughout the Group
Problem Solving through Expanded Recruitment of Diverse Human Resources and System Review	Enhancement of recruitment channels Establishment of diverse employment and work formats Revision to personnel evaluation system and appropriate salary system
Issue Identification through Enhanced Education and Training	Strengthening of new employee training programs Enhanced development of executive candidates through OJT Subdivision of training by job responsibilities

Sustainability Strategy

Anticipating changes in the environment surrounding the Group, we have established four important themes and 11 materiality items in line with our Group's mission, aiming to enhance corporate value in the medium to long term and realize a sustainable "Healthy & Happy People" society.

Mission

To contribute broadly to social development through food and housing services

	Important Themes	Materiality (Important Issues)	Specific Initiatives
Environment	Environment	Reduction of greenhouse gases Reduction of disposable plastics Effective utilization of water resources	Performance management of industrial waste Switching to energy-saving equipment Promotion support for eco-cars including EVs Secondary use of hot spring exhaust heat Review of amenity provision Implementation of linen non-exchange (consecutive stay WECO cleaning) Introduction of water-saving equipment
Social	Human Resources	Creation of new employment Active participation of diverse human resources Investment in human resources Provision of learning opportunities	Active job creation Employment of persons with disabilities Promotion of increased female manager ratio Introduction of genderless uniforms Enhancement of training systems Implementation of dormitory RA system Provision of educational support programs Support for international students through the Kyoritsu International Exchange Scholarship Foundation
	Food	Food safety and security Reduction of food waste Health consciousness	Food safety and security through hygiene management compliant with HACCP Reduction and recycling of food waste Provision of health-conscious meals
Governance	Governance	Strengthening governance	Development of governance structure Promotion of compliance Implementation of harassment education

Development Business and Overseas Business Expansion

• Actively expand the Senior Life business (senior housing business) being developed as the third pillar
• Regarding overseas expansion that was interrupted due to the impact of COVID-19, we will resume surveys and move to the business verification stage during the new medium-term management plan period, focusing on the dormitory and Dormy Inn businesses

Development Business

Senior Business

Overseas Business Expansion

Dormitory Business

Dormy Inn Business