Golf Course Booking

株式会社ゴルフダイジェスト・オンライン www.golfdigest.co.jp

Results Briefing for the First Quarter Ended March 31, 2020(22nd Term)

(Securities Code： 3319)

１、The Impact of COVID-19 ２、Financial Results for the First Quarter （January – March, 2020）

Corporate Profile Our Business

Work Style • After February, we started thorough infection control measures inside and outside the company. • We have made a full-scale switch to the telework, which had been partially introduced.

Service • Started taking measures to put the safety of customers and employees first. • Extended the expiration dates for time-limited tickets (golf course reservation tickets and lesson tickets), discount coupons, points, and shareholder benefits.

Financial Strategy • Tightened domestic and overseas cost management since February. Also implemented cost reduction measures from the second half of March to June. • Conducted cash flow simulations, confirmed and managed cash positions, and increased their levels (Partial increase in borrowing).

項目 Jan, Feb. Mar. Apr. May. ●2/25 Government ●1/30 4/7~ Emergency declaration Established Announcement of basic policy announcement ●3/26 Established a task force Countermeasure ●2/26 based on the Act on Special Measures headquarters encouraging to avoid events ●3/13 U.S. : National emergency declaration GDO Group’s approach

Office / Business trip ●1/29 establish an emergency headquarters

2/26～3/26 3/27～ 1/29～2/24 Work from home(In principle ) Prohibited to go to work Recommended to work from home 2/26～ refrain from business trip

Store 1/29～4/3 Continue store operations 4/4～5/6 5/7～Business （Golf Garage）（wearing the surgical masks, sanitize, temperature check） All stores closed re-opening※

Centers 1/29～3/24 Continue store operations 4/4～All Centers closed （GOLFTEC）（wearing the surgical masks, sanitize, temperature check）（Scheduled until the end of May.）

Events 2/26～ Refrain from Golf events （Determined after carefully considering the spread of infection） 4/1～ Implementation of coupons, points and royalties.

3/24～ U.S. GOLFTEC 5/3～Business Closed operations at corporate re-opening centers and FC centers

3/16～ Head office: started working from home

Q1（Jan. – Mar.） After Q2（Apr.-） Domestic Business Golf Course • Blessed with good weather, the playing • After the emergency declaration , about situation is good 150 golf courses in Japan closed the • Eating and drinking at golf courses and course independently competitions tend to be self-restraint • Since the second half of April, some areas have been requested to take leave to avoid moving out of the prefecture

Golf Equipment • a downturn in consumer confidence • Accelerating a downturn in consumer confidence Market • Some golf makers postponed the release of new products

Golf Media • Since January, overseas tours and major • US Open: postponement (Jun. ⇒ Sept.) tournaments have announced • British Open: 2020 Games canceled cancellations and postponements • U.S. professionals: postponement (May ⇒ Aug.) • Masters tournament: postponement • (Apr. ⇒ Nov.)

New Business Golf Driving • The outdoor range has no big impact. The • There are several ranges that refrains from Range number of visitors has increased at some opening the centers training fields Copyright(c) Golf Digest Online Inc. All Rights Reserved 6 Current business performance

Monthly Sales changes in Golf Equipment Sales ・EC

・Being gradually affected by COVID-19 from mid-March ・April has remained below the level of FY2018 results. ・Special sale held during Golden Week

2017 2018 2019 2020 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

・Used Goods（Includes "Golf Garage" stores and EC sales of used goods）・Since mid-March, the number of customers visiting the store has gradually decreased due to the refraining from going ・All stores are closed in April in response to a request from the prefecture to close. Some internet purchase services are ongoing. ・Reopening of stores that are not 2017 2018 2019 2020 subject to the leave request Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. after May 7 (excluding one Copyright(c) Golf Digest Online Inc. All Rights Reserved store) 7 Current business performance

Monthly change in the number of customers booked on GDO

・After March, golf competitions and group reservations decreased. On the other hand, through play and individual reservations increased. ・The reservation status tends to shift from reservations made several months ahead to reservations just before.

2017 2018 2019 2020

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

（Assumed that the national emergency declaration was lifted in May） Golf Course Booking • Normalization of golf course operation and the movement of golfers out of the prefecture after cancellation of emergency declarations • Cooperation system as a GDO in accordance with the safety guidelines for golfers visiting and playing at golf courses

Sales of Golf Equipment • Producing status of new products from golf equipment manufacturers • General consumption trends for golf equipment

Golf Lesson, Golf Events • Event business and group lesson business for kids: Policy for meetings by a certain number of people by the government * Lesson studio "GOLF TEC by GDO": Scheduled to reopen from June

Golf Media • Website Traffic: Domestic / Overseas Pro Tournament Resume • Advertising business: future restart status of the entire industry

Marketing activities • In marketing activities, we are considering investing policies and budgets in consideration of the industry situation Copyright(c) Golf Digest Online Inc. All Rights Reserved 9 Key points for future activities (Oversease)

U.S. GOLFTEC

• Beginning a gradual resumption of business from May 3rd. About half of corporate centers and FC centers are scheduled to resume operations by May. • New online lesson using golf tech app (online swing evaluation service by coach) started free from May 6 (U.S. district only). • Implementing countermeasures and new preparations to limit contact as much as possible.

Sales were strong and set a record high for Q1. Although, COVID-19 affected after mid-March

Net Sales 8.0billion yen YOY ＋500million yen （＋7％）

（Domestic） 6.1billion yen YOY ＋200million yen （＋4％）

（Oversease） 1.8billion yen YOY ＋200million yen （＋18％）

EBITDA recorded a record high for Q1 due to the success of overseas business. Although, COVID-19 affected after mid-March

EBITDA 420million yen YOY ＋200million yen （＋106％）

（Domestic） 380million yen YOY ＋90million yen （＋33％）

（Oversease） 40million yen YOY ＋120million yen （－％）

Withdraw full-year forecast The impact of the global spread of COVID-19 is extremely difficult to calculate at this time, so we will revise the earnings forecast announced on February 12, 2020 to undetermined temporarily. We will promptly announce the performance forecast when

（million yen） 2018 2019 2020

Q1 Q1 （Domestic）（Overseas） YoY

Net sales 5,199 7,553 8,070 6,173 1,896 ＋517 (+ 7%)

Gross profit 1,922 2,851 3,138 ーー＋286 (+ 10%)

SG&A 1,876 2,999 3,095 ーー＋96 (+ 3%)

EBITDA 161 208 427 383 44 ＋219 (+ 106%)

Operating profit 45 △147 42 254 -211 ＋190 ( - %)

Ordinary profit 44 △152 39 ーー＋191 ( - %)

Net income △20 △203 △45 ーー＋158 ( - %)

*The PL consolidation of GDOS*, a subsidiary, began from 2018 Q3, and U.S. GOLFTEC began from 2018 Q4, respectively. *GDOS: Abbreviation for GDO Sports, Inc., a wholly-owned subsidiary of the Company

Net sales by segment Net sales by service Performed good until the first half of March Lesson Services shows Better Performance Sales were strong both in Japan and overseas, until the first Sales of golf Equipment: Securing of hot-selling products was half of March. After the second half of March, affected by successful until first half of March. COVID-19. Golf course Booking: The number of customers is steadily increasing due to the warm winter.

（million yen） Golf Lessons: Overseas subsidiaries were strong. 8,070 YOY + 7％ 8,070（YOY +7％） 7,553 7,553 ■Others 1,896 ■Oversease ■Golf Lessons 1,604 YOY +18％ YOY +17％

■Golf Course Booking YOY +4％ 6,173 5,948 ■Domestic YOY +4％ ■Sales of Golf Equipment YOY +4％

Controlling SG & A expenses was successful Domestic: Use marketing expenses efficiently, Domestic sales ratio improved 1 points by reduced SG & A expense since mid-March, affected by COVID-19.

Oversease: Increase the number of coaches and aggressively carry out marketing activities in February.

3,095 （million yen） 2,999 Ratio to net sales Ratio to net sales 38％ 40％

YOY Oversease Oversease ＋96 SG&A ・Amortization of goodwill SG&A and intangible assets 985 928 + 109 million yen Ratio to net sales Ratio to net sales 52% 58%

Others -48

Domestic SG&A Marketing Domestic SG&A 2,070 Expense 2,109 Ratio to net sales ＋18 Ratio to net sales 35% 34%

Personnel Expense ＋69

EBITDA（=Operating profit + Amortization of goodwill + Depreciation + Operating Profit Long-term prepaid expenses） Domestic: ：Increase in gross profit due to growth in sales Domestic: Increase in gross profit due to growth in sales and and SG & A expenses made more efficient. SG & A expenses made more efficient. Oversease: Amortization of goodwill associated with the Oversease: The performance of new stores and directly consolidated subsidiaries for 109 million yen. operated centers increased significantly, and the company became profitable.

（million yen） 427 YOY +105％ 42 YOY +190million yen

383 209 ■ Domestic EBITDA -147 254 YOY＋32.6％ ■Domestic 164 Operating profit 289 YOY+54％

-211 ■Oversease EBITDA -312 YOY ＋124 million yen ■Oversease 44 Operating Profit YOY＋100 million yen -80

Total assets increased associated with the expansion of operations. Deferred Revenue: Deferred revenue increased attributable to strong sales at U.S. GOLFTEC. Short-Term Debt: We secured cash position in consideration of the impact of COVID-19. Long-Term Debt: Repayment as planned.

（million yen） Total Assets 19,564 Total Assets 19,562

Current Current Current Current Assets Liabilities Assets Liabilities 10,711 12,013 10,799 12,529 ------Cash ＋ 297 million yen Merchandise Deferred Merchandise Deferred Merchandise ＋ 188 million yen 4,692 Revenue 4,880 Revenue 2,542 2,697 Deferred Revenue ＋ 155 million yen Short-Term Debt ＋ 978 million yen Long-Term Debt - 333 million yen

Fixed Liabilities Non- Fixed Liabilities 1,235 Non- Current Current 883 Assets Total Net Assets Total Net 8,853 Assets 8,762 Assets ------Goodwilll 6,315 Goodwill 6,149 3,010 2,960 End of December 2019 End of March 2020

Particularly strong sales of golf wear ・During the warm winter, sales were favorable due to the acquisition of apparel products from popular manufacturers in March. Number of Customers Unit Purchase Price ・On the other hand, after the latter half of March, consumer sentiment has gradually declined due to the impact of COVID-19. New Used Apparel Accessories Balls Year on Year Comparison of Orders Golf Clubs Golf Clubs

Rush demand before October～ Consumption tax increase Consumption tax increase 10％

Release period of new models

2019 2020

*Market…Golf equipment market (golf clubs, balls and accessories). “Year-on-year comparison of the market size estimated based on actual sales of real stores of major golf equipment dealers nationwide” calculated by GfK Lifestyle Tracking Japan KK Copyright(c) Golf Digest Online Inc. All Rights Reserved 18 【Domestic】 Golf Course Booking: KPI Analysis

The number of golfers booked on GDO increased ・Although the number of customers has been favorable due to the warm winter, COVID-19 has slowed the growth after mid-March. ・Since mid-February, the number of cancellations has increased due to refraining from going out due to the influence of COVID-19. Since April, more golf courses are closed and reservations are decreasing. Number of Customers Unit Fee Price Fall in Cancellation Change in Golfers Booked on GDO（YoY)

2019 2020 ー GDO: The number of golf course players who played golf by booking through the Company and Jalan Golf ー Market: The number of golf course players in eight prefectures published by the Ministry of Economy, Trade and Industry *Market: Source: Ministry of Economy, Trade and Industry “Survey of Selected Service Industries.” Comparison of total golf course players of eight prefectures (Hokkaido, Miyagi, Tokyo, Aichi, Osaka, Hiroshima, Kagawa and Fukuoka) Copyright(c) Golf Digest Online Inc. All Rights Reserved 19 【Overseas】 U.S. GOLFTEC Performance

It remained strong until the first half of March. Affected by COVID-19 from the first half of March. ・Embarked on new store openings with the promotion of the acquired franchised stores. ・As a result of implementing marketing activities ahead of schedule, sales of lesson packages and club fittings were strong from January to February, and sales increased by 20% from the previous year. ・EBITDA achieved profitability due to strong sales. ・Since mid-March, Cash EBITDA * has dropped significantly due to the impact of COVID-19.

U.S. GOLFTEC non-consolidated results 17 ■Net Sales （$’s in millions） YOY +20％ 15

5.0 ■Cash EBITDA YOY - 4.7mil.

0.3 0.5 ■EBITDA YOY＋0.6mil. -0.1 2019 Q1 2020 Q1 *Cash EBITDA：It is EBITDA calculated at the Copyright(c) Golf Digest Online Inc. All Rights Reserved time of cash acquisition, and it is a measure 20 before accounting standard adjustment 【Overseas】 U.S. GOLFTEC: KPI Analysis

The effect of the coach development program.

GOLF Magazine Names GOLFTEC Top 50 Club Fitters Number of Number of in North America operating centers Students 10 new graduates from the coach development program "GOLFTEC University" become certified Growth rate of coaches. Sales of Club Fitting Number of existing centers and Fitting Golf Clubs coaches ・Certification not only for lessons but also for fitting Number of Operating Centers in the program ・New store openings and the acquisition of franchised stores made steady progress

・From March, all corporate centers and some FC stores were closed due to COVID-19. Corporate Started preparing test preparation courses for future FC Total Centers GOLFTEC coaches End of March 2019 106 96 202 ・Started offering a practical skill test (PAT) preparation program for free to PGA Professional test takers. End of December 2019 114 95 209 ・PGA Pro is the business base for U.S. GOLFTEC, which employs Corporate Centers openings -1 － -1 many PGA-certified professionals. The acquisition of *To become a PGA professional, you must pass the Practical +1 -1 ＋0 franchised stores Exam (PAT), and the pass rate is less than 20 Franchised store openings － -1 -1 End of March 2020 114 93 207 Copyright(c) Golf Digest Online Inc. All Rights Reserved 21 （Appendix) Domestic Golf Equipment Market

Golf equipment market has remained flat Golf e-commerce market is gradually expanding.

Domestic Changes in the golf Domestic Net sales of Equipment golf equipment Sales ranking of golf equipment market equipment market and net sales of golf of GDO (billion yen) equipment of GDO (billion yen) retailers in Japan

st Company A 1 80.8billion yen （Sports Volume Retailer）

nd Company B 2 61.1billion yen （Sports Volume Retailer）

rd Company C 3 21.1billion yen （Golf Volume Retailer）

4th GDO 17.3billion yen

th Company D 5 14.7billion yen （Golf Volume Retailer）

GDO controls the Japan’s top market share in Golf e-commerce market

*resource *resource Domestic golf equipment market: source： “Leisure White Paper” Sales Ranking：Created by our research Domestic golf equipment e-commerce market: source： Copyright(c) Golf Digest Online Inc. All Rights Reserved 22 “Survey of Selected Service Industries” （Appendix）Domestic Golf Market

Changes in number of golf course and golf course user *source：Golf course management association

Golf course user attributes（2019） Changes in playing cost and number of annual plays

※*Source: “Survey of Selected Service Industries” of the Ministry of Economy, Trade and Industry. *source： “Leisure White Paper2019”

Changes in the population of golf driving ranges and year-on-year changes in the total number of users

*Source: ` Leisure White Paper 2019 '', Ministry of Economy, Trade and Industry “Statistical Survey of Specific Service Industry Dynamics”

Breakdown of golf driving range Changes in domestic play unit price and number of annual plays (FY2019)

Indoor facilities 30％ Outdoor Facilities 70％

（Appendix）The World’s Golf Market

America's golf market is the world's largest （$’s ）

st USA 1 Japan 2nd No. of golfers 23.8million U.K. No. of golfers 7.8million No. of golf course 14,800 No. of golf course 2,270 No. of rounds 475million No. of golfers 3.9million No. of rounds 90million million No. of golf course 2,800 Equipment market 2,078million Equipment market 3,585 Equipment market 440million

China Korea Canada

No. of golfers 0.6million No. of golfers 2.9million No. of golfers 5.5million No. of golf course 380 No. of golf course 450 No. of golf course 2,300 Equipment market 110million Equipment market 562million Equipment market 387million

*Source: Yano Research Institute “2019 World Golf Market Report”

Changes in the number More rainfall in the Golf Players top season than usual (million times) of course rounds  6.4% increase in the last two years

 1 in 9 Americans are golf players  Boasts a higher play rate than basketball or tennis. 34.2million people

No. of on course golfers 24.3million

Junior Golfer million 2.5 Number of rounds Average cost Golf Beginners 2.5million per person per play

24.3million Composition ratio by age 18.2 $36

Utilizing the customer database, our services are developed through the Internet as the four pillars (four different revenue sources) of “Golf Media", “Golf Lessons", “Golf Equipment sales", and "Golf Course Bookings"

GDO Events Total Golf platform Golf media

Golf Golf lessons course Database Custom club booking fitting

Sales of Golf equipment Other offline channels Stores

Sales continue to grow by expanding and improving

services specialized for golf. July, 2018 Strengthening the capital relation It is also helping to popularize of the Internet in the golf with GOLFTEC Enterprises LLC industry.

2012 Golf Lesson Service 2014.9 34.2 Established GDO Golftec billion yen （subsidiary as managing company of May, 2012 Domestic GOLFTEC FC centers ） Make a business partnership with GOLFTEC Enterprises LLC （Indoor Golf Lesson Service in U.S.） May, 2000 Established GDO Golf Course Booking service Media Service

2011-2018 Enter into licensing agreements 2001 with Conde Nast Golf Retail Service

Change the accounting ¥12.0B 2014 Closing Month Established a distribution center 2011-2019 Sales CAGR 16％

Approx.60% of golfers in Japan are GDO Club Members It is increasing as it was before COVID-19.

As of March 2020

4.2million people

（as of December 2019） Characterized by business influence and high purchasing power

Annual Income Age group 10 Million or more 25% Average age 46

Gender Occupation 86％ of users are males Company executives + Management level employees+ Self employed Female 14％ over 30% Male 86％ Average golf score Score around 90

（as of December 2019 ） Stock Overview Number of Share Authorized 59,164,000 shares Total Number of Issued Shares 18,274,000 shares Main Shareholders Number of Shareholders 12,894 persons No. of Perscentage Name held Shares （％）

１ Golf Digest Sha Co., Ltd. 3,250,000 17.8 Shareholder Composition ２ Nobuya Ishizaka 3,121,000 17.1

３ Genichi Kimura 1,250,000 6.8

STATE STREET BANK AND ４ 932,000 5.1 TRUST COMPANY 505019

５ Masahiro Kimura 900,000 4.9

Japan Trustee Service Bank, ６ 879,000 4.8 Ltd. (Trust Account) The Master Trust Bank of ７ 658,000 3.6 Japan, Ltd. (Trust Account) SMBC Trust Bank Ltd. ８ 300,000 1.6 (Custodial bank) J.P. MORGAN BANK ９ 297,000 1.6 LUXEMBOURG S.A. 380578

10 Dai Nippon Printing Co., Ltd. 276,000 1.5

Overview

Company Name Golf Digest Online Inc. (GDO) Group Companies TOKYO -Golf Digest Online Inc. Head Office 2-10-2 Higashi-Gotanda, Shinagawa-ku, Tokyo -GDO GOLFTEC Co., Ltd

Capital 1,458 million yen COLORADO, USA -GOLFTEC Enterprises LLC Employees 1,139 *Including part-time employees （Consolidated) CALFORNIA, USA Date of May 1, 2000 -GDO Sports, Inc. Establishment Directors & Auditors

President & CEO Nobuya Ishizaka Domestic Business Sites Executive Vice President Takehiro Yoshikawa

Member of the Board of Director Hiroshi Nishino

Member of the Board of Director（outside） Genichi Kimura Headquarters Shinagawa-ku, Tokyo

Member of the Board of Director（outside） Masahiro Kimura Nagoya Office Nagoya-shi, Aichi Member of the Board of Director（outside/ Osaka Office Osaka-shi, Osaka Independent Director） Hironari Hashioka

Member of the Board of Director（outside/ Fukuoka Office Fukuoka-shi, Fukuoka Toshinori Iwasawa Independent Director） Hiroshima Office Hiroshima-shi, Hiroshima Auditor & Supervisory Board Member Kazuhiko Oyama

Auditor & Supervisory Board Member （outside） Keiichi Uezumi

Auditor & Supervisory Board Member （outside） Kyoko Hamada

Golf Garage Stores Distribution Center（Akanehama, Chiba） GDO GOLFSHOP （Function as be in stock and ３PL：Sumisho Global Logistics (PC Web site, Smartphone Web site, application) distribution center）

 Number of items dealt with  Stores also opened on the following websites New items : Approx. 100,000 Yahoo! Shopping, Yahoo! Auction, Amazon.co.jp, Used items: Approx. 40,000 Rakuten Ichiba, LOHACO, Wowma! Award Number of brands dealt with : 2015, 2017 Rakuten shop of the Year Approx. 390 brands in Japan and overseas Won Golf genere award One of the world’s largest with the Yahoo! Shopping BEST STORE AWARDS 2017 most extensive selection of goods Won Golf Category award

 Major services - Online sales of golf equipment Year 2018 - Purchase/sales of secondhand golf equipment “Golf Garage” (6 stores in Kanto) EC market share Online purchase service 12.5％（Top share in Japan） Domestic Retail sales ranking 4th

Sales Composition ratio by item The composition ratio will varies depending on the status of new products and seasonal products released by golf manufacturers .

【Gross profit rate in 2019】（HIGH↑） Accessories ＞ Apparel ＞ Golf clubs ＞ Ball （LOW↓）

YoY comparison of orders

Golf clubs Rush demand before Consumption tax increase Consumption tax 10％from October increase

Release period of new models

Apparel

Warm Winter

GDO Golf Course Booking Hosting of competitions and events GDO Premium Club (PC Web site, Smartphone Web site, application)

 Number of partner golf course  Major services 2,000 course or more（japan and Overseas） - Golf course booking (Overseas : Hawaii, Guam, American mainland, - Provides information on golf course guides Singapore, Thailand, Malaysia, Australia, etc) throughout Japan. The largest Golf portal site in Japan

 Revenue Models of Golf Course booking - Sales of web booking system for golf courses ASP service “ GDO Web Pack ” selling Backbone System ” Yardage Club ” , Booking service Provide golf course Cooperation system service ” GOLF XML ” fee x number of Booking services players System support for reservation reception, Golf course booking customer management, aggregation, that golf courses perform on the website.

Golf fee

Sales Composition ratio by service(2019)

Gross profit ratio will varies depending on the ratio of customer service to golf courses and system sales services.

Change in golfers booked on GDO (players)（YoY）

Cooperated with Jalan Golf（First Year）

2018 2019 2020 ー GDO: The number of golf course players who played golf by booking through the Company and Jalan Golf ー Market: The number of golf course players in eight prefectures published by the Ministry of Economy, Trade and Industry Copyright(c) Golf Digest Online Inc. All Rights Reserved 38 Golf Lessons

GOLFTEC lesson studio Club fitting services Lesson approach that visualized improvement  U.S. GOLFTEC The world’s largest provider of golf lessons 5 Countries・207 Centers （Direct centers：114、FC：93） Center in Japan『GOLFTEC by GDO』 13 centers

190 centers in USA / Canada 9 centers in Kanto 13 centers in Japan 1 center in Chubu 2 centers Hong Kong 2 centers in Kansai 1 center in Singapore 1 center in Kyushu 1 center in China

 Major services Swing Evaluation One on One indoor golfr lessons Club Fitting + Sales of custom golf club GOLFTEC Becomes Official Golf Instruction Partner of the NFL Alumni

What is NFL Alumni? NFL Alumni is Comprised Of Former NFL Players, Coaches, Staffers, Cheerleaders, Spouses, And Associate Members Whose Mission Is To Serve, Assist And Inform Former Players And Their Families. The Alumni Offers A Variety Of Medical, Financial, And Social Programs To Help Members Lead Healthy, Productive And Connected Lives.

Developed mainly for golf indoor lesson service and club fitting service It features the largest number of centers in the United States, high coach quality, and services using the latest IT technology.

VIDEO CAMERAS

TECFIT TECPUTT

6 Countries GOLFTEC University 207 Centers

Company Overview With International Recognition Company Named GOLFTEC Enterprises LLC and Awards Head office Denver, Colorado, USA

Date of 50+ COACHES October 24, 2001 ALL-TIME PGA SECTION AWARD WINNERS Establishment 2,478 million yen Capital （as of December 31, 2019） TOP 100 Shareholder GDO 60％、 Others 40％ 2018 NGF TOP 100 BUSINESSES IN GOLF composition

Chairman Nobuya Ishizaka President, CEO Joseph Assell 36 LOCATIONS Director Director Tom Gart 2018 GOLF DIGEST TOP 100 CLUB FITTERS Director Takehiro Yoshikawa Director Hiroshi Nishino MOST INNOVATIVE 2012 Make a business partnership with GDO COMPANIES GOLFTEC FC centers opens in 2017 FAST COMPANY MOST INNOVATIVE Relationship Japan COMPANIES IN SPORTS with GDO 2016 8% Investments Ishizaka join the board of directors Jul, 2018 Additional investments to 60% Become subsidiary in GDO group

Age group Age55~74 58％

Annual Income 100thousands dollars or more 80%

Average golf score Female 10％ 96

Gender Male 90％ 90％ of users are males

BRUDER GDO golf news (PC Web site, Smartphone Web site, application)

 Viewer rate in the golf category No.1 in the World

“Top Websites Ranking” (as of January 1, 2020）Golf Category No.1 in the world “LINE NEWS Presents NEWS AWARDS 2019” Sports Category Award

 Major services

Golf media（News, BRUDER, Club information） Internet advertising/ Marketing service Mobile services（Free/ pay per use service）

GDO Credit card GDO credit card

■ Consolidated Net Sales ■ Consolidated Gross Profit

（YoY） +28％（million yen）

（million yen）

＋24％

＋12％＋7％

■ SG&A ■ Consolidated EBITDA （million yen）（million yen）

■ Consolidated Operating Profit ■ Consolidated ordinary income （million yen）（million yen）

■ Profit Attributable to Owners of Parent ■ Net Income Per Share （million yen）（yen）