The Sponsor

ABOUT ACCORDIA GOLF CO., LTD. (THE "SPONSOR")

The Sponsor is the leading golf course operator in Japan, operating 136 golf courses and 26 driving ranges as at 31 March 2016. The Sponsor was incorporated in Japan in 1981 and was listed on the Tokyo Stock Exchange in 2006. The Sponsor engages mainly in the management and operation of golf courses and driving ranges, focusing mainly in the large metropolitan areas and major regional urban centres in Japan. The Sponsor has an established track record of acquiring and turning around non-profitable golf courses with its expertise in golf course management and operational know-how.

The Sponsor runs its business by adopting a number of measures centered on the "Four Principles of Services stated below.

The Sponsor

This is part of the key strategy to meet the demand for "private golf" played by families and friends and to promote an environment where everyone can enjoy playing golf under the concept of "It's a New Game". The operating revenue of the Sponsor consists of the revenues from the following:

  1. golf courses operating business;
  2. golf-course/driving-range, restaurant business; and
  3. golf equipment sales business.

ASSET-LIGHT STRATEGY OF THE SPONSOR

The Sponsor has adopted an asset-light strategy to enhance operational efficiency. This include reducing the number of assets (such as golf courses) owned by the Sponsor within its group while focusing on golf course operations. Through the implementation of the asset-light strategy, the ownership of assets and operation of golf courses are separated. This enables the Sponsor to pursue high growth and profitability by focusing on operating golf courses as well as new investments. Such efforts are expected to contribute positively to the growth of AGT.