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Disclosure of management information for fiscal year 2023

We are pleased to announce that at the Annual General Meeting of Shareholders held today, the business accounts for the fiscal year 2023 were approved.

The men's top team has two ongoing goals: to compete for the championship in the J1 League and to qualify for the ACL. However, in the 2023 J1 League season, the team finished in fourth place, despite being in contention for the championship until the end of the season, and failed to qualify for either the AFC Champions League Elite (ACLE) or AFC Champions League 2 (ACL2) for the 2024/25 season.
In other domestic competitions, the team finished second in the J-League YBC Lewan Cup and in the last 16 of the Emperor's Cup.
The players and staff gave it their all in the 60 official matches of the year, the most ever for Urawa Reds, including the ACL 2022 championship, which led to qualification for the Club World Cup (La Copa Mundial de Clubes de la FIFA) in the new format to be held in 2025. However, we still have some issues to resolve in that we were unable to achieve our long-cherished goal of winning the J-League championship.

In terms of business income for fiscal 2023, the number of home games increased due to the ACL2022 final and the participation in ACL2023/24 following the victory in ACL2022, etc. As a result, admission fee income increased 706 million yen year-on-year, advertising fees (partner sponsorship, RBC membership fees, etc.) increased 175 million yen year-on-year, and merchandise income increased 175 million yen year-on-year. Advertising fees (partner sponsorships, RBC membership fees, etc.) increased by 175 million yen, merchandise income increased by 464 million yen, and other income, including team prize money, increased by 912 million yen.
Total operating revenue for FY2023, which reflects these figures, was 10,384 million yen, up 2,257 million yen year-on-year, exceeding the 10,000 million yen mark for the first time in the club's history.
Operating expenses, including business and team operating expenses, totaled 9,137 million yen, with operating income of 367 million yen, ordinary income of 392 million yen, and net income of 305 million yen.

Admission revenue: Recorded the highest attendance in the J1 League, including home games held at Urawa Komaba Stadium.
Due to the turf replacement work at Saitama Stadium, three home games (two J1 League matches and one J League YBC Lewan Cup match) since the start of the 2023 season have been held at Urawa Komaba Stadium ("Komaba"), which has a capacity of approximately 20,000 people. In addition, due to the team's participation in ACL2023/24, seven J1 League home games were held on weekdays and 10 on weekends and holidays (two of which were held at Komaba), making conditions extremely difficult in terms of drawing crowds. The average attendance for J1 league matches was 30,509, including 32,236 for games held at Saitama Stadium, and 40,777 for games held at Saitama Stadium on Saturdays, Sundays, and holidays, exceeding the 40,000 mark. This was the 23rd time in a row that we have recorded the highest attendance in the J1 League.
In addition to the large number of fans and supporters who cheered for the team at the stadium, the number of home games itself increased due to the second ACL2022 final and the team's participation in ACL2023/24 following the result of the ACL2022 final, etc., which had a positive impact. As a result, admission revenue increased by 706 million yen year-on-year to 2,145 million yen.



Advertising revenue: Further surpassing the previous record of partner sponsorship revenue recorded in the previous fiscal year
Advertising revenue (partner sponsorship fees, RBC membership fees, etc.) was boosted by the men's top team's third ACL victory and the women's team's 2022-2023 WE League victory, as well as increased sponsorship fees from existing partners and successful efforts to acquire new partners through collaboration with affiliated companies and organizations. The number of partner companies increased by 5 compared to the previous period, and the number of RBC members increased by 48, further surpassing the previous record of partner revenue recorded in 2022.
Thanks to strong support from our partners who have supported us for a long time, as well as from companies and organizations that have joined our partners and RBC (Reds Business Club) in recent years, advertising revenue increased by 175 million yen year on year to 4,223 million yen.

Merchandise revenue: 141.5% higher than the previous quarter, the highest sales ever recorded
In terms of merchandise revenue, positive factors included the men's top team's third ACL victory and the women's team's 2022-2023 WE League victory. In addition, while focusing on being in tune with the feelings of our fans and supporters, we also improved the quality of the three areas of planning, promotion, and sales, as well as strengthened collaboration with partner companies, resulting in record sales of 1,583 million yen, up 464 million yen from the previous period.



Operating expenses: Operating expenses increased due to increased revenue from major revenue generating businesses and an increase in the number of home games played.
As a result of the increase in revenue from the above major revenue-generating businesses, business operating expenses such as ticket sales expenses, match operating expenses, and merchandise sales expenses increased. In addition, team operating expenses such as player compensation and travel expenses also increased due to the increase in the number of games. As a result, business operating expenses and team operating expenses combined came to 9,137 million yen.

Ordinary profit, net profit, retained earnings and net assets
Ordinary income was 392 million yen, and net income was 305 million yen. Although these figures were slightly lower than the previous fiscal year, we were able to secure solid profits.
In addition, retained earnings were 1,224 million yen, and together with capital of 273 million yen and capital reserve of 113 million yen, net assets were 1,610 million yen, which is roughly the same level as in fiscal 2019, before the COVID-19 pandemic.



Club Activities
In the 2024 season, Urawa Reds will not be able to participate in the Emperor's Cup, an important tournament that is one of the three major domestic titles and leads to competition in Asia.
This fact and the circumstances that led to it must never be forgotten as long as Urawa Reds exists, and we strongly believe that it is an issue that must be continually addressed.
We will continue to run the club with the resolve that unless we act based on this awareness, we will not be loved and needed by our hometown community, our partners, and our fans and supporters.

[Initiatives for 2023]
Formulating and implementing measures to prevent the recurrence of violations of match management regulations
Following the reprimand and disqualification from participating in the Emperor's Cup JFA 104th All Japan Football Championship for violations of the Japan Football Association's match management regulations in the Emperor's Cup JFA 103rd All Japan Football Championship Round of 16 (4th round) against Nagoya Grampus, we have formulated and begun implementing the following measures to prevent recurrence: "Establishing new disciplinary standards for violations," "Reviewing the operational process for sanctions and decisions on lifting sanctions," "Establishing a third-party committee," "Taking timely, appropriate and firm action against violators," "Making sure everyone knows the rules for watching matches, including prohibited activities at the stadium," and "Rebuilding communication with fans and supporters." (Ongoing)

Urawa Reds Heart-full Club
Now in its 20th anniversary year, Urawa Reds Heart-full Club has held 367 soccer schools and soccer-related events at Saitama Stadium, Urawa Komaba Stadium and other venues, and supported elementary school classes 120 times. In addition, since July 2011, the club has implemented "Heart-full Soccer in Tohoku," a reconstruction support project for the Great East Japan Earthquake, at elementary schools and nursery schools in Fukushima and Iwate prefectures.
Furthermore, as part of the "Heart-full Soccer in Asia" initiative, which was launched when Japan made its first appearance in the ACL in 2007, the team visited Nepal and Thailand and carried out grassroots international exchange activities to teach children from each country about the joy of soccer and the importance of heart.

Hometown Activities
For the first time, players from the men's top team and the women's team came together to visit shopping districts in Saitama City and distribute posters, among other hometown activities, carrying out more than 1,500 activities throughout the year.
In addition, Saitama City, Saitama Sports Commission, Urawa Reds, and Reds Land signed a "Collaboration Agreement for the Development of the Saitama Sports Schule Promotion Facility (tentative name)" together. In addition, as part of the "Kono Yubi TomaREDS!" initiative launched with the aim of resolving issues in the local community, Urawa Reds worked with partners and the local government to carry out a food drive to reduce food waste, and worked to create a prosperous community and society together with the people of their hometown.

Reds Land
Reds Land aims to expand the places and opportunities for "playing" and "learning" sports, thereby contributing to the healthy development of young people, creating a sense of purpose in life, and the development and promotion of sports culture. The number of active members of the comprehensive local sports club, which consists of six sports - badminton, yoga, karate, cheer dance, volleyball, and general sports - has exceeded 100.
In addition, the total number of participants in school activities such as tennis, futsal, kids' soccer and running reached approximately 7,000 people throughout the year, and a total of approximately 2,500 people took part in events such as the Reds Land Kids Festa, Make Summer Memories, Sakura Ward Music Concert and Fireworks Display and New Year's Full-Power Mochi Pounding. Reds Land was enjoyed by many people, not just soccer fans.
In addition, we participated in the "Challenge School" project implemented by Saitama City, sending instructors to elementary schools in Sakura Ward, and through the "Nurturing Partner" project, which is made up of 21 companies and organizations in Saitama City, we opened our grounds to various events and for local youth soccer teams, and held classes, among other activities both inside and outside the facility.

Academy Center
We set a goal of having 30% of players on the men's top team come from the Academy Center, and worked to develop these players.
In addition to developing players, the project is also steadily producing results on the business side, with Atsuki Ito being selected for the Japanese national team, Jumpei Hayakawa winning the New Hero Award at the 2023 J.League YBC Levain Cup, and the transfer fee for Hashioka Daiki to an overseas club enabling the artificial turf on the training ground used by the academy team to be replaced (and donated to Saitama City after replacement).

Exchange Program with Frankfurt
The club engaged in exchanges with Germany's Eintracht Frankfurt, with whom the club has a partnership, focusing on player development, including the sharing of the coaching methods and philosophies of both clubs.

Exchange program with Feyenoord
With our partner club Feyenoord of the Netherlands, we engaged in exchanges with the main theme of player development, including sharing the coaching methods and coaching philosophies of both clubs.

Exchange program with Muangthong United
From Thailand's Muangthong United, with whom we have an alliance, three players who have played for the Thai national team participated in the training of the men's top team for two weeks, after which Ekanit Panya joined the team on a loan transfer. In addition, Urawa Reds Heart-full Club held "Heart-full Soccer in Asia" at the team's home ground, Thunderdome Stadium, and the Urawa Reds Diamond U-14 team held a joint training camp in Thailand with the Muangthong United U-14 team, and participated in the second Mitsubishi Heavy Industries Diamond Cup U-14 Thailand 2023, which was held locally.
These activities are funded by the J.League's overseas business activity subsidy for J.League clubs.

Urawa Reds Ladies
Although they missed out on winning the WE League Cup for the second consecutive year, they won all three group stage matches at the AFC Women's Club Championship 2023 - Invitational Tournament (held in Thailand) in November, and have now qualified for the final (against Incheon Hyundai Steel Red Angels) to be held at Urawa Komaba Stadium on May 10, 2024.
They also finished as runners-up in the 45th JFA Empress's Cup and are currently leading the 2023-24 WE League, aiming to win it again for the second time in a row.

SDGs In-house Promotion Project
We have sought to raise awareness of SDGs within the company by inviting external experts to hold training sessions on SDGs for club staff and seminars to deepen understanding of people with disabilities. We have also posted information about these activities on a dedicated page on the club's official website.

Saitama Stadium Designated Management Project
Through the Saitama Stadium Toilet Improvement Project (Toilet Renewal), a collaborative project with Saitama Prefecture, we have completed the renovation of all toilets in the second floor concourse, and after discussing and coordinating with Saitama Prefecture and the Saitama Park and Greenery Association, we have striven to improve the convenience and business viability of Saitama Stadium by installing a new LED electronic scoreboard in the lower part of the back stand. In addition, as a collaborative project with Saitama Prefecture and others, we have implemented various measures related to the SDGs, such as holding a "Sustainable Day" that included a demonstration experiment of the circular economy.

lastly
The management information for fiscal 2023 reported in this report contains many positive figures, but it goes without saying that these figures were not achieved solely through the business activities of Urawa Red Diamonds Co., Ltd.
We understand that this achievement is a reflection of the support, encouragement, and expectations of all stakeholders who support Urawa Reds, including our hometown community, partners, and fans and supporters, as well as the culmination of the efforts of our players, team staff, and club staff.

We would like to continue to run the club together with you, sharing the good times and the bad, so we appreciate your continued support.

Club balance (unit: million yen)
 20192020202120222023年度
business income8,2185,7716,8918,12710,384
Entrance fee income2,3004236261,4392,145
Advertising revenue3,8413,7503,8984,0484,223
goods income9038148411,1191,583
J League distribution (*1)468400471567473
Other (*1)7063841,0559541,960
Operating expenses (*2)8,0826,5396,9907,70010,017
business expenses7,1715,7966,1426,9179,137
business operating expenses3,1802,0832,2932,9333,831
team operating expenses3,9913,7133,8493,9845,306
(Including player/manager/coach fees) (*3)(3,228)(3,119)(3,089)(2,853)(3,860)
General and administrative expenses911743848783881
Operating income136-768-99427367
Ordinary income139-5992492392
net income62-6122412305
  • Amounts are rounded to the nearest million yen.
  • (*1) “Others” includes player transfer-related income, participation fees, performance fees, school membership fees, training (academy)-related income, etc.
  • (*2) The main breakdown of operating expenses is as shown in the reference information on the next page.
  • (※3) From fiscal 2022, the figures for player, manager, and coach compensation include only the personnel expenses of the top team.
    Figures for fiscal 2021 and earlier include development and ladies' compensation.
(Reference information) Main breakdown of operating expenses (unit: million yen)
business operating expenses3,831 
stadium management expenses1,146"Match-related costs [stadium usage fee, security costs, operation and construction costs]", ticket fees, advertising costs, JFA/J League payments, event costs, etc.
Advertising related expenses877Barter transaction equivalent, advertising expenses for Redsland, advertising agency fees, outsourcing expenses, etc.
Merchandise-related expenses and other business expenses1,650Commodity cost, goods operation management fee, REX CLUB activity fee, PR activity fee, etc.
Hometown Related Expenses158Hometown Activity Fee, Heartful Activity Fee
team operating expenses5,306 
Player/manager/coach compensation3,860Total remuneration for top team players and coaches
Top team operating expenses817Transportation-related expenses, facility-related expenses, dormitory-related expenses, agency fees, etc.
Training (academy) operating expenses224Academy instructor remuneration, transportation-related expenses, facility-related expenses, etc.
Ladies' team operating expenses405Women's team player/leader compensation, transportation-related expenses, facility-related expenses, etc.
General and administrative expenses881 
Club property status (unit: million yen)
 20192020202120222023年度
Total assets3,1412,9952,8753,0763,451
total debt1,5221,9881,8671,7711,841
net worth1,6191,0071,0081,3051,610
Capital/capital reserve386386386386386
  • Amounts are rounded to the nearest million yen.
Club Other Indicators
 20192020202120222023年度
J1 league annual standings14th place10th6th place9th place4th
YBC Levain Cup Cup resultsQuarterfinalgroup
stage
Best 4Best 4runner up
Emperor's Cup resultsround 16 win3rd Round Lostround 16
AFC Champions League
(ACL) performance
runner up  winEliminated in the group stage
FIFA Club World Cup
(FCWC) results
    4th
J1 league attendance (people)581,135133,780156,636401,489518,648
J1 league average attendance (people)34,1847,8698,24423,61730,509
Number of attendees for sponsored matches (persons)802,786153,369191,398451,823603,332
Average annual income for all J1 clubs
(One million yen)
4,9513,8904,1594,864 
Average ticket revenue for all J1 clubs
(One million yen)
926324399704 
All J1 league clubs
Average number of visitors (people)
20,7515,7966,66118,993 

Disclosure of management information for fiscal year 2023

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