NOVARESE INVESTOR RELATIONS SITE

Our Strengths

1. Simple, modern design that sets us apart from our competitors

While there are many gorgeous and extravagantly designed Western-style wedding facilities, our store strategy based on private rental wedding facilities with simple, modern designs has gained support by filling a niche that is catered to by only a handful of domestic wedding service providers.

Positioning of venue attributes^*

* Created based on our own analysis

Dedicated venues with simple, modern designs that differentiate us from others

Suburban guest houses

［ AMANDAN ］

Venues developed around locations blessed with beautiful scenery. Resort-like suburban guest houses surrounded by greenery, light, and water.

Urban guest houses

［ MONOLITH ］

Venues located mainly in highly convenient urban areas. Simple yet stylish guest houses with a mature, grown-up feel.

Awards
Received

Details

Award-winning venues / stores

IES Illumination Awards
(North America Illuminating Engineering Society)

Kitayama Monolith
・Takasaki Monolith
・Himeji Monolith
・Niigata Monolith

BEST STORE OF THE YEAR

Takasaki Monolith
・Himeji Monolith

BELCA Awards (Long Life Category)

Ashiya Monolith
・James-Tei

Osaka Urban Landscape Architecture Award

James-Tei

Osaka Urban Landscape Architecture Award

Kyusakuranomiya Kokaido

Good Design Award

Kyusakuranomiya Kokaido

Received 24 times in total.

2. Store opening strategy centered on regional cities, and business model with excellent investment efficiency and return on investments.

By opening venues / stores mainly in regional cities where competition is moderate, we are able to reduce land rent and advertising costs, and maintain high investment efficiency.

Comparison of typical wedding facilities and our wedding facilities

Typical wedding facilities

High investment

A larger investment is required to handle large-scale weddings and produce a luxurious atmosphere. Periodic renovation is required to respond to changing trends

High break-even point

Many companies have multiple reception facilities at a site in order to enhance the operation rate of luxurious chapels. Large advertising expenses are required in order to enhance the operation rate of reception facilities

Our wedding facilities

Low investment

Simple facilities mean reasonable investment

Low break-even point

Low investment enables a management style with reasonable targets for customers and operation rates, aiming for 120 weddings per year

Investment return model (traditional wedding hall operators) (image)^*

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The initial investment tends to be high as wedding venues need to be large, have a luxury feel, and contain many banquet halls
At least ten years are required to recover investment
As a result, the return on assets tends to be low

* Created based on interviews conducted by NOVARESE (this is an example and does not necessarily apply to all other companies in the same industry)

Our investment return model (image)

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Opening stores in rural areas
Initial investment is low (around 800 million yen) because advertising costs can be reduced due to minimal competition
Numerous monetization points as a result of internalization
Return on investment within 5 years
As a result, we can achieve high asset profitability.

3. High product power and profitability through internalization

Although we have strengths in each phase from initial venue tours to the actual wedding day, our greatest strength is in our internalization of wedding-related businesses, which differentiates us from our competitors.

Selling internalized services to external businesses

Internalization of wedding-related services allows us to create earnings opportunities in areas where many competitors outsource.This contributes to achieving high profitability. By selling our in-house services to external businesses, we are able to secure new earnings opportunities.

Improved profitability through insourcing wedding related businesses

Higher profitability

Improved profitability through external sales

Ratio of external sales of wedding-related services

Monetization through external sales of in-house services
Areas we focus as growth drivers

Differentiation from competitors by improving profitability through in-house dress rental

In particular, the internalization of the dress rental business is a key element that underpins our high profitability. This business is a major asset for NOVARESE, and we receive many inquiries from other companies in the same industry.

Breakdown of net sales in the wedding business

Comparison with competitors

Competitors (example)

Relatively few partner brands and insufficient sales expertise as they have only recently started insourcing
It is difficult to insource the wedding dress business as they receive large deposits from their tenant dress shops and use them for initial investment

Novarese

We started as a dress shop, so we have c.20 years of sales expertise
We understand the characteristics of our wedding facilities and customer trends, so can reflect them in the design of dresses, resulting in higher customer satisfaction
Insourcing of dress shops improves profitability

* The revenue for the wedding department and our achievement in dress leasing is based on results for the fiscal year ended in December 2023

Dress leasing enabling the achievement of high profitability

High customer satisfaction that can only be achieved through internalization

Through internalization of wedding-related services, we have created a PDCA cycle from product development to service launch and improvements reflecting customer feedback. Based on our awareness that wedding attendees are also potential customers, we have created a positive cycle model in which our weddings are rated highly by the guests who attend them, leading to the attraction of new customers.