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Hakone Kowakien Ten-yu Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. FUJITA KANKO INC. Financial Results for the Six Months Ended June 30, 2025 August 8, 2025 (Code number: 9722)
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2025 2Q Cumulative actual 2024 2Q Cumulative actual YoY1Q Actual Jan. to Mar. 2Q Actual Apr. to Jun. Net sales 18,765 21,189 39,955 35,882 +4,072 Operating profit 2,954 3,922 6,877 5,123 +1,753 Ordinary profit 2,500 4,296 6,797 5,615 +1,182 Extraordinary income - 25 25 139 (114) Extraordinary losses - 61 61 784 (722) Income taxes 874 1,369 2,244 966 +1,277 Profit attributable to owners of parent 1,626 2,891 4,517 4,004 +513 Consolidated Statements of Income Net sales and operating profit increased by ¥4.07 billion and ¥1.75 billion, respectively, year on year Unit: Million yen 1 • Captured robust inbound demand in cherry blossom season, etc. by strengthening overseas sales activities • Labor costs were driven upward by across-the-board wage raises, higher bonus payouts, etc. • Tax expenses rose due to elimination of loss carryforwards
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2025 2Q Cumulative actual 2024 2Q Cumulative actual YoY1Q Actual Jan. to Mar. 2Q Actual Apr. to Jun. Net sales 18,765 21,189 39,955 35,882 +4,072 WHG Business 11,670 12,786 24,457 21,416 +3,040 Luxury & Banquet Business 4,270 5,514 9,784 8,970 +814 Resort Business 2,530 2,569 5,099 4,889 +210 Other (including adjustments) ２９３ 319 612 ６０５ +7 Operating profit (loss) 2,954 3,922 6,877 5,123 +1,753 WHG Business 2,782 3,249 6,031 4,331 +1,700 Luxury & Banquet Business 9８ 647 746 ５７７ +168 Resort Business 81 28 109 １８２ (72) Other (including adjustments) (8) (2) (10) ３１ (42) Net Sales & Operating Profit Breakdown by Business 2 Unit: Million yen Net sales increased year on year in all businesses • Average daily rate (ADR) rose in the WHG Business • The Luxury & Banquet Business saw an increase in wedding and banquet users • Despite growth in net sales driven by higher ADR, the Resorts Business experienced a drop in operating profit due to pressures such as higher labor costs
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2024 2Q Cumulative WHG Accommodation Other Luxury & Banquet Banquet Wedding Accommodation Restaurant Other Resort Accommodation Day trip and leisure Other Other (including adjustments) 2025 2Q Cumulative Net Sales: Increase/Decrease by Business 35,882 +69 +5 ＋133 ＋21 +１ +12 3 Unit: Million yen +60 +306 +298 +2,980 Increased average daily rate (ADR) drove a significant increase in net sales in the accommodation business ＋188 39,955
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2024 2Q Cumulative Increase of marginal profit due to the increase of net sales WHG Luxury & Banquet Resort Increase in labor costs Increase in depreciation Increase in land rent Increase in other costs 2025 2Q Cumulative Operating Profit: Increase/Decrease by Factor 6,877 +2,334 +588 +149 (810) (108) (118) 4 Unit: Million yen Ratio of fixed operating costs (to net sales) 202４ ６2.９％ ▼ 2025 ６0.0% (281) Profit rose YoY, buoyed by higher marginal profit from increased net sales 5,123 • Increase in marginal profits of all businesses overcame the downward pressure of higher labor costs from new hires, across-the-board wage raises, and higher bonus payouts
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86% 89% 82% 87% 89% 84% WHG Business 10,749 Net sales ADR rose by 12% YoY, while occupancy rate remained mostly level ⇒ Net sales and operating profit increased by ¥3.04 billion and ¥1.70 billion, respectively, year on year, in the business as a whole ２０２5 2Q Cumulative ２０２4 2Q Cumulative ２０２5 2Q Cumulative ２０２4 2Q Cumulative Operating profit Total Tokyo Other than Tokyo ADR (Yen) 2024 2Q Cumulative 2025 2Q Cumulative 15,320 17,367 12,290 17,217 19,592 13,614 Occupancy Rate Total Tokyo Other than Tokyo (Million yen) (Million yen) 6,031 4,331 5*Serviced apartments ISORAS CIKARANG is excluded for operational indicators 9,352 921 877 21,416 19,626 1,790 22,606 24,457 1,851 Accommodation +2,980 Other +60 • Inbound demand was captured through sales activities tailored to regional characteristics and channels, including trade fairs in Europe, the U.S., and Australia and travel expos in Southeast Asia • ADR was buoyed by price-setting attuned to demand trends (cherry blossom season, etc.)
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Hotel Chinzanso Tokyo 55,042 56,354 ２０２4 2Q Cumulative ２０２5 2Q Cumulative Luxury & Banquet Business Golf, etc. ＋133 Net sales Wedding +298 ２０２5 2Q Cumulative ２０２4 2Q Cumulative ADR (Yen) Wedding Number of ceremonies 746 577 Banquet +306 Accommodation +69 Restaurant +5 62% 65% Occupancy Rate ２０２4 2Q Cumulative ２０２5 2Q Cumulative ２０２4 2Q Cumulative ２０２5 2Q Cumulative 667 707 48 48 Wedding Average number of guests per ceremony 3,942 4,035 Wedding Sales per ceremony (thousand yen) *Calculation of these three metrics did not include cases where only a ceremony was held ２０２4 2Q Cumulative ２０２5 2Q Cumulative ２０２4 2Q Cumulative ２０２5 2Q Cumulative 6 ２０２5 2Q Cumulative ２０２4 2Q Cumulative 9,784 8,970 3,484 1,724 1,982 926 3,186 1,654 1,675 792 Operating profit (Million yen) (Million yen) 1,667 1,661 Strong performance of wedding and banquet segments drove growth in net sales ⇒ Net sales and operating profit increased by ¥ 0.81 billion and ¥0.16 billion, respectively, year on year, in the business as a whole Hotel Chinzanso Tokyo • Wedding: Efforts to increase product competitiveness through tangible and intangible improvements paid off with higher number of ceremonies • Banquet: Realignment of target customers and other measures led to the capture of large-scale events such as lectures, award ceremonies, and organizational anniversaries • Accommodation: ADR rose mainly for suite rooms, driven by effect of high value-added services, including exclusive lounge opened in 2024
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7 Resort Business Other +１ Net sales ２０２5 2Q Cumulative ２０２4 2Q Cumulative ２０２5 2Q Cumulative ２０２4 2Q Cumulative Operating profit ADR (Yen) 5,099 (Million yen) (Million yen) １09 １82 Accommodation +１88 Day trip and leisure +21 4,889 Occupancy Rate Ten-yu Kowakien Hotel Ten-yu Kowakien Hotel 205 203 Yunessun Visitors (thousand people) ２０２4 2Q Cumulative ２０２5 2Q Cumulative 53,615 31,516 56,203 35,674 2024 2Q Cumulative 2025 2Q Cumulative 88% 77% 90% 77% 4,147 706 246 3,959 684 245 Higher ADR at Hakone Kowakien Ten-yu and Hakone Kowakien Hotel contributed to increase in net sales ⇒ Net sales increased by ¥0.21 billion while operating profit decreased by ¥0.07 billion year on year, in the business as a whole • Hakone Kowakien Ten-yu: Both ADR and occupancy rate were at high levels, supported by improvement of hospitality through Japanese etiquette/culture training for employees, and by capture of inbound demand through enhancement of product competitiveness • Hakone Kowakien Hotel: ADR grew as a result of price-setting based on demand trends, and capture of weekday inbound demand • Hakone Kowakien Yunessun: Although the 2Q cumulative number of visitors declined slightly YoY, the quarterly number for 2Q (April-June) rose by 6,400, owing to attraction power of March renovations to water slides and Mori No Yu
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2024 ２Q Cumulative U.S. China Australia U.K. Italy Other 202５ ２Q Cumulative Status of Inbound Tourism 202５ 2Q Cumulative actual YoY Number of inbound accommodation guests (at domestic facilities only) 1,247 thousand people +16.7％ Total number of accommodation guests (at domestic establishments only) 2,157 thousand people +4.9％ Ratio of inbound guests 57.8％ +5.9％pt WHG Total 59.7％ +5.9％pt Hotel Gracery Shinjuku 95.4％ +1.4％pt Shinjuku Washington Hotel (Main building and ANNEX) 7４．７％ +6.0％pt Hotel Chinzanso Tokyo ３６．０％ +0.6％pt Hakone Kowakien Ten-yu 5７．８％ +6.6％pt Hakone Kowakien Hotel 2５．２% +7.2％pｔ Number of inbound accommodation guests Increase/Decrease by country 8*Figures for China include guests from Hong Kong +46 thousand people +３５ thousand people +15 thousand people +１１ thousand people +９ thousand people +５９ thousand people 1,068 thousand people 1,247 thousand people China 22.6% U.S. 11.7% Taiwan 8.7% 2024 ２Q Cumulative 1,068 thousand people 202５ ２Q Cumulative 1,247 thousand people Other 26.9% South Korea 20.7% South Korea 16.6% China 22.3% Number of inbound accommodation guests Breakdown by country Other 27.3% Australia 6.5% Thailand 3.3% Taiwan 6.6% Thailand ３.4% U.S. 13.8% Australia 6.8% *Set 1,068 thousand people and 1,247 thousand people as 100 percent for 2024 and for 2025, respectively U.K. ３.3%
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Consolidated Balance Sheets End of June 202５ End of December 202４ Change Current assets 21,455 23,703 (2,247) Non-current assets 70,347 70,338 ＋９ Total assets 91,803 94,041 (2,238) Current liabilities 27,360 31,217 (3,856) Non-current liabilities 34,381 37,172 (2,790) Total liabilities 61,742 68,389 (6,647) Total net assets 30,061 25,651 ＋4,409 Total liabilities and net assets 91,803 94,041 (2,238) Equity ratio 32.7％ ２７．３％ ＋5.5％pt Total borrowings 31,691 37,429 (5,737) • Liabilities fell by 6.64 billion yen compared to the end of the previous year due to repayment of borrowings and other factors • Net assets rose by 4.4 billion yen to 30.06 billion yen compared to the end of the previous year 9 Unit: Million yen ■ Redemption of Class A preferred shares The Company resolved to redeem 20 Class A preferred shares (purchase and cancellation) Date of resolution: August 8, 2025 Scheduled date of purchase (cancellation): August 25, 2025 This will complete the redemption of all 150 Class A preferred shares issued in 2021
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Statements of Cash Flows 2025 ２Q Cumulative 2024 ２Q Cumulative YoY Cash flows from operating activities 7,042 5,754 +1,287 Cash flows from investing activities (1,217) (1,916) +699 Free cash flows 5,824 3,838 +1,986 Cash flows from financing activities (6,313) (172) (6,141) Balance of cash and cash equivalents at end of period 13,935 17,387 (3,451) • Cash flows from operating activities were a net inflow of 7.04 billion yen due to the recording of operating profit • Cash flows from investing activities were a net outflow of 1.21 billion yen due to investments such as redevelopment of Yunessun and guestroom renovations • Cash flows from financing activities were a net outflow of 6.31 billion yen due to repayment of borrowings and other factors 10 Unit: Million yen
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First half (Jan. to Jun.) Second half (Jul. to Dec.) Full year Actual Forecast announced on February 13 Compared to previous forecast Forecast announced on August 8 Forecast announced on August 8 Forecast announced on February 13 Compared to previous forecast Net Sales 39,955 38,100 +1,855 40,544 80,500 78,600 +1,900 WHG Business 24,457 23,300 +1,157 23,942 48,400 47,200 +1,200 Luxury & Banquet Business 9,784 9,200 +584 9,815 19,600 19,000 +600 Resort Business 5,099 5,000 +99 6,100 11,200 11,100 +100 Other (including adjustments) ６12 ６００ +12 ６87 1,300 1,300 ±０ Operating Profit 6,877 5,500 +1,377 6,422 13,300 12,000 +1,300 WHG Business 6,031 4,800 +1,231 4,968 11,000 9,800 +1,200 Luxury & Banquet Business 746 650 +96 653 1,400 1,300 +1００ Resort Business １09 100 +９ 940 1,050 1,050 ±０ Other (including adjustments) (10) (５０) ＋39 (139) (１50) (150) ±０ Ordinary Profit 6,797 5,500 +1,297 6,202 13,000 11,700 +1,300 Profit attributable to owners of parent 4,517 3,700 +817 4,282 8,8００ 8,000 +800 Business Performance Forecast for the Fiscal Year Ending December 31, 2025 Full year business performance forecast was revised upward to reflect 2Q financial results Unit: Million yen 11
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First half (Jan. to Jun.) Second half (Jul. to Dec.) Full year Actual Announce- ment on February 13 Change Announce- ment on August 8 Announce- ment on August 8 Announce- ment on February 13 Change WHG Total Occupancy Rate 8７％ 8６％ ＋１％pt ８5％ 8６％ 8６％ ±０％pt ADR ¥17,217 ¥16,537 +¥６８0 ¥17,151 ¥17,184 ¥16,844 +¥３４２ WHG Tokyo Occupancy Rate 8９％ 87％ +２％pt 85％ 8７％ ８６％ +１％pt ADR ¥19,592 ¥18,838 +¥７５４ ¥19,169 ¥19,384 ¥19,003 +¥３８１ WHG other than Tokyo Occupancy Rate 84％ 84％ (0)％pt 86％ 85％ 8５％ (０)％pt ADR ¥13,614 ¥13,108 +¥５06 ¥14,225 ¥13,921 ¥13,666 +¥２５5 Hotel Chinzanso Tokyo Occupancy Rate 6５％ 64％ +１％pt 69％ 6７％ 6７％ ±０％pt ADR ¥56,354 ¥55,586 +¥７６８ ¥55,443 ¥55,884 ¥５5,512 +¥372 Hakone Kowakien Ten-yu Occupancy Rate ９０％ ８7％ +３％pt 90％ ９０％ 8８％ +1％pt ADR ¥56,203 ¥53,840 ＋¥2,363 ¥58,138 ¥57,175 ¥56,033 ＋¥1,142 Hakone Kowakien Hotel Occupancy Rate 77％ 81％ (３)％pt ８６％ 8２％ 8３％ (2)％pt ADR ¥35,674 ¥33,350 +¥2,324 ¥3８,552 ¥37,200 ¥36,054 +¥1,146 Hotel Chinzanso Tokyo Wedding: number of ceremonies 707 ６80 +２７ ８５０ 1,5５７ 1,5３０ ＋２７ Wedding: sales per ceremony ¥4,035 thousand ¥3,９26 thousand +¥１０８ thousand ¥3,８５５ thousand ¥3,９３６ thousand ¥3,8８６ thousand +¥５０ thousand Wedding: average number of guests per ceremony ４８ ４８ ±０ ４６ ４7 ４７ ±０ Hakone Kowakien Yunessun Visitors 203 thousand people 210 thousand people (６) thousand People ３３０ thousand people 5３３ thousand people 5４０ thousand people (６) thousand People Assumptions Underlying Performance Forecast for the Fiscal Year Ending December 31, 2025 (Operational Indicators) 12*Serviced apartments ISORAS CIKARANG is excluded for operational indicators
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Operational Indicators 2024 2025 １Q ２Q 3Q ４Q １Q ２Q WHG Total Occupancy Rate 86％ 86％ 87％ ９０％ 86％ 8７％ ADR ¥14,849 ¥15,774 ¥15,３75 ¥1７,３０３ ¥16,597 ¥17,821 WHG Tokyo Occupancy Rate 90％ 88％ 88％ ９１％ 8９％ 8９％ ADR ¥16,920 ¥17,791 ¥16,884 ¥1９,５４４ ¥18,933 ¥20,237 WHG other Than Tokyo Occupancy Rate 82％ 83％ 8６％ 8９％ 83％ 85％ ADR ¥11,847 ¥12,728 ¥13,158 ¥1４,０３8 ¥13,029 ¥14,179 Hotel Chinzanso Tokyo Occupancy Rate 53％ 70％ ５９％ ７２％ 5６％ ７5％ ADR ¥55,437 ¥54,705 ¥53,747 ¥5６,０６４ ¥57,535 ¥55,483 Hakone Kowakien Ten-yu Occupancy Rate 89％ 87％ ８５％ ９７％ ９3％ ８７％ ADR ¥54,102 ¥53,113 ¥55,218 ¥55,０８５ ¥54,503 ¥57,992 Hakone Kowakien Hotel Occupancy Rate 73％ 81％ ９２％ ７９％ 76％ 7９％ ADR ¥32,791 ¥30,371 ¥39,721 ¥3５,7７2 ¥36,829 ¥34,568 Hotel Chinzanso Tokyo Wedding: number of ceremonies 282 385 ２６３ ５６３ 263 ４４４ Wedding: sales per ceremony 4,044 thousand 3,868 thousand 3,894 thousand 3,９３４ thousand 4,127 thousand 3,980 thousand Wedding: average number of guests per ceremony ４9 ４8 ４６ ４６ 50 ４７ Hakone Kowakien Yunessun Visitors 107 thousand people 97 thousand people ２０４ thousand people ９０ thousand people ９9 thousand people 104 thousand people 13*Serviced apartments ISORAS CIKARANG is excluded for operational indicators
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List of Facilities (As of August 8, 2025) WHG Business <<Lodging facilities>> 35 properties, 11,027 rooms ■ Washington Hotel (20 properties, 6,619 rooms) ■ Hotel Gracery (10 properties, 3,198 rooms) Sendai 223 rooms Sapporo 440 rooms Shinjuku (Main building, ANNEX) 1,617 rooms Ginza 270 rooms Akihabara 369 rooms Tamachi 216 rooms Tokyo Bay Ariake 830 rooms Asakusa 125 rooms Yokohama Sakuragicho 553 rooms Shinjuku 970 rooms Urawa (scheduled to cease operation on August 31, 2025) 140 rooms Kyoto Sanjo (North/South) 225 rooms Hiroshima 266 rooms Osaka Namba 170 rooms Canal City, Fukuoka 423 rooms Naha 198 rooms Yamagata Nanokamachi [FC] 213 rooms Seoul 336 rooms Yamagata Eki Nishiguchi [FC] 100 rooms Taipei 248 rooms Aizu Wakamatsu [FC] 154 rooms Koriyama [FC] 184 rooms ■ Hotel Fujita (1 property, 354 rooms) Iwaki [FC] 148 rooms Fukui [FC] 354 rooms Tachikawa [FC] 170 rooms Kisarazu [FC] 146 rooms ■ HOTEL TAVINOS (3 properties, 656 rooms) Tsubame Sanjo [FC] 103 rooms Hamamatsucho 188 Rooms Kansai Airport [FC] 504 rooms Asakusa 278 rooms Kanku Izumiotsu [FC] 151 rooms Kyoto 190 rooms Takarazuka [FC] 135 rooms Sasebo [FC] 190 rooms ■ Serviced apartments (1 property, 200 rooms) ISORAS CIKARANG (Indonesia) 200 rooms Resort Business <<Lodging facilities>> 11 properties, 554 rooms Hakone Kowakien Ten-yu 150 rooms Hakone Kowakien Hotel 150 rooms Hakone Kowakien Mikawaya Ryokan 25 rooms Hakone Kowakien Miyama Furin 15 rooms Ito Kowakien 50 rooms Ito Ryokuyu 7 rooms Fujino Kirameki Fuji Gotemba 25 rooms Hakujukan, Shinzen-no-yado, Eihei-ji Temple 18 rooms Yugawara Onsen Chitose [MC] 38 rooms Hotel Yamanami [MC] (Yamanashi Pref.) 26 rooms Towada Hotel [Business alliance] 50 rooms <<Restaurants>> 3 properties Akashiatei (Akita Pref.) Hakone Kowakien Soba Kihinkan Hakone Kowakien Teppan Shabu Geihinkan <<Leisure facilities>> 5 properties Hakone Kowakien Yunessun Hakone Kowakien Mori No Yu Hakone Kowakien Camp & Spa Yama No Ne Fuji Camp Base Kirameki (within premises of Fujino Kirameki Fuji Gotemba) Shimoda Aquarium Luxury & Banquet Business <<Lodging facilities>> 1 property, 265 rooms Hotel Chinzanso Tokyo 265 rooms <<Weddings>> 2 properties Remercier Motoujina (Hiroshima Pref.) The South Harbor Resort (Hiroshima Pref.) <<Leisure facilities>> 1 property Camellia Hills Country Club (Chiba Pref.) <<Restaurants>> 2 properties University of Tokyo Ito International Research Center Restaurant [MC] Meiji University Shikonkan Foresta Chinzanso [MC] FC: Franchising model Ownership, management and operation all belong to owner companies. The Company licenses the brand usage rights and gives instruction on facility operation. MC: Management contracting model Ownership and management belong to owner companies. The Company is entrusted with facility operation. 14
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Company Overview Listed exchange Tokyo Stock Exchange Prime Market Company name FUJITA KANKO INC. Stock code 9722 Share unit Ordinary shares: 100 shares Class A preferred shares: 1 share Fiscal year January 1 to December 31 of each year Record date December 31 Ex-dividend dates (ordinary shares) December 31, and June 30 when interim dividends are issued Annual shareholders meeting March of each year Total number of issued shares Ordinary shares: 12,207,424 shares Total: 12,207,444 sharesClass A preferred shares: 20 shares Total number of authorized shares Ordinary shares: 44,000,000 shares Total: 44,000,150 sharesClass A preferred shares: 150 shares Fiscal term December 31 of each year 15