Consolidated Financial Results for the Fiscal Year Ended September 30th, 2020
(FY9/20) [IFRS]
November 13th, 2020
TSE

Company name:
AirTrip Corp.
Stock Exchange Listing:Stock code:
6191
URL https://www.airtrip.co.jp
Representative: Yusuke Shibata, Representative Director, President and CFO
Contact:
Yusuke Shibata, Representative Director, President and CFO(TEL): +81-(0)3-3431-6191
Scheduled date of holding of
Scheduled date of payment ofDecember 25th 2020
December 28th 2020
ordinary shareholders’ meeting:dividend:
Scheduled date of submission of
December 28th 2020
financial reports:
Preparation of supplementary documents for financial results:
Holding of financial results briefing:Yes
Yes (for institutional investors and securities analysts)(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended September 30th, 2020 (October 1st, 2019 to September 30th, 2020)(1) Consolidated results of operations(Percentages represent year–on–year changes)
Net salesYear ended Sep 2020
Year ended Sep 2019

Millionyen
21,191
24,306

Millionyen△8,760
680

%
△12.8
95.6

Profit per share

Fully diluted profit per share

Yen△418.23
39.07

Year ended Sep 2020
Year ended Sep 2019
Note

Profit before income
taxesMillion%yen%――△8,956588 △48.3△41.0

Operating income

ProfitMillionyen△8,473753

Return on equity

Yen△418.23
37.98

%
―
△24.1

Profit attributable to Total comprehensive
owners of parent
incomeMillionMillion
yen
%
yen
%
―
―
△8,380△8,483733 △14.3
729 △26.0

Return on assets%△140.09.9

Operating income margin

%
△31.1
2.1

%
△41.3
2.7

HIKAWA CO., LTD. was excluded from consolidation in the fourth quarter of the Fiscal Year Ending September 30th 2020, so the businessfrom the company is classified as a discontinued business. As a result, net sales, operating income and profit before income represent the amountof continuing business excluding discontinued business. For details, please refer to "Attachment" on pages 11 and 16.

(2) Consolidated financial position
Total assets
Year ended Sep 2020
Year ended Sep 2019

Total equity

Million yen
22,994
31,253

Million yen
2,849
10,099Equity attributable to Ratio of equity attributable Equity attributable toowners of parent
to owners of parent
owners of parent per share
Million yen
%
Yen
2,255
9.8
110.44
9,716
31.1
490.7

(3) Consolidated cash flow position

Year ended Sep 2020
Year ended Sep 2019

Cash flows from operating
activities
Million yen
△199
△76

Cash flows from investing
activities
Million yen
△240
△678

Cash flows from financing
activities
Million yen△1,501
4,459

Cash and cash equivalents
at end of period
Million yen
7,042
8,997

2. Dividends
Dividend per share
1Q–endYen
Year ended Sep 2019―Year ended Sep 2020

―

0.00

―

10.00

10.00

204

FY21/9 (Estimated)

―

―

―

―

―

―

(Note)

3Q–endYen―

Year-end
Yen
10.00

Total
Yen
10.00

Total dividends(Annual)2Q–endYen
0.00

Million yen
198

Dividends for the fiscal year ended September 30th, 2020, are paid solely from capital surplus. Please see “Breakdown of dividends paid from
capital surplus” below. At this time, the estimated dividend for the fiscal year ending September 2021 is undecided.

3. Full year consolidated financial forecast for FY9/21 (October 1st, 2020 to September 30th, 2021)(Percentages represent year-on-year changes.)
Net salesYear ended Sep 2021

Millon yen
23,500Operating income% Million yen
10.9%
300

%
-

Profit before
income taxes
Million yen
240

―1―

%
-

Profit attributable to ownersof parent
Million yen%
180-

Profit per share
Yen
8 81

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting inchanges in scope of consolidation)
Newly included ― Company ― , Excluded 1 Company HIKAWA CO., LTD.

： Yes

(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Change of the accounting policy required under IFRS
： None2) Changes in accounting policies other than (1) above
3) Changes in accounting–based estimates： None： None(3) Numbers of outstanding shares (common stock)1) Number of shares outstanding as of the end of theYear ended Sep 2020
period (including treasury shares)
2) Number of treasury shares as of the end of the period Year ended Sep 2020
3) Average number of shares issued during the period Year ended Sep 2020

20,419,800

Year ended Sep 2019 19,801,300―

Year ended Sep 2019

20,037,966―

Year ended Sep 2019 18,774,384(Reference) Summary of non–consolidated business results
1. Non-consolidated financial results for the fiscal year ended September 30, 2020 (October 1st 2019 to September 30th 2020)(1) Non-consolidated results of operations(Figures in percentages denote the year-on-year change.)

Net salesYear ended Sep 2020
Year ended Sep 2019

Operating income

Million yen
4,530
5,951

%
△23.9
50.9

Profit per share

Million yen
△585
△698

Ordinary income
%
△16.2
△4.9

Million yen
△214
△777

Profit
%
△72.1
△17.0

Million yen△6,750△787%△857.7△21.2

Fully diluted profit per share

Year ended Sep 2020

Yen
△336.88

Year ended Sep 2019△41.92Yen――(2) Non-consolidated financial position
Total assets
Million yen
11,092

Year ended Sep 2020
Year ended Sep 2019
(Reference)

Net assets
Million yen
459

18,033

Shareholders’ equity

Equity ratio

6,579

Year ended Sep 2020

459

million yen

Net assets per share
%
4.1

Yen
22.49

36.5
Year ended Sep 2019332.25
6,579

million yen* The current quarterly financial report is exempt from the quarterly review procedures performed by certified public accountants or
audit corporations.
* Explanation of appropriate use of earnings forecasts, and other special items
The full year forecast for the fiscal year ending September 30, 2020, above includes the Company’s forecast based on plans for theyear, as well as assumptions and predictions regarding the Company’s future as of the day these materials have been made public. Items
concerning the future of the Company are based on information currently in the Company’s possession and certain assumptions judged
to be rational. They do not represent a firm commitment by the Company. The forecast may differ greatly from financial results due to anumber of causes over the year, including changes in economic conditions, changes in client needs and user tastes, competition withother companies, changes to laws and regulations, and changes in exchange rates. Please see [Attachment] Page 8 “1. Consolidated
Results of Operations Etc., (5) Qualitative Information on Consolidated Earnings Forecasts” for more about the results forecast.
* Breakdown of dividends paid from capital surplus
The following table shows a breakdown of dividends paid from capital surplus for the fiscal year ended September 30th, 2020.
Benchmark date
Dividend per share
Total dividends

Year-end

Total
10 yen

10 yen204 million yen

204 million yen*The Company is currently calculating percentage gain/loss in net assets and will disclose this information as soon as it is determined.

―2―

○Contents of Attachments
1. Overview of Consolidated Results of Operations ………………………………………………………… 4(1) Overview of Consolidated Results of Operations ………………………………………………………4(2) Overview of Segment Reporting …………………………………………………………………….… 5(3) Operational Measures for the current consolidated fiscal year ………………………………………… 7(4) Overview of Financial Position ………………………………………………………………………… 8(5) Qualitative Information on Consolidated Earnings Forecasts ……….………………………………… 9
2. Consolidated Financial Statements and Key Notes ……………………………………………………...… 10(1) Consolidated Balance Sheet …………………………………………………………………………… 10(2) Consolidated Statements of Income and Comprehensive Income ……………………….........…….… 11(3) Consolidated Statements of Changes in Equity …………………………………………………….…. 13(4) Consolidated Statement of Cash Flows ……………………………………………………………...… 14(5) Notes on going concern Assumptions …………………………………………………………………. 15(6) Notes to Consolidated Financial Statements …………………………………………………………... 15―3―

1. Consolidated Results of Operations(1) Overview of Consolidated Results of Operations(Million yen)
FY9/19FY9/20

Increase/Decrease

Rate of change (%)

Consolidated Results of Operations
Net sales

24,306

21,191△3,115△12.8%

Operating Income (Loss)

680△8,760△9,440-

Profit before income taxes (Loss)

588△8,956△9,544-

Profit attributable to owners of parent (Loss)

733△8,825△9,558-(Note) HIKAWA Co., Ltd. was excluded from the current consolidated fiscal year, so the company's business is classified as a
discontinued business. Therefore, net sales; operating income; profit before income taxes and profit attributable to owners of parent
represent the amount of continuing business excluding discontinued business. For details, please refer to page 11 and 16.
Because of US – China Trade Friction; slowdown on China and Europe’s economy; and the expansion of COVID-19 (infectious
disease by new type of Corona Virus) this year, many countries has imposed some actions such as restriction on travelling abroad or
lockdown, Japanese economy during the current consolidated cumulative period is on the situation that travel demand is stagnated allover the world. The prospect is still uncertain because of the stagnation of the economy’s activities due to the expansion of COVID-19(infectious disease by new type of Corona Virus), with the transition of the disease, we are thinking that it’s important to take muchattention on the future market trends.
Under these circumstances, we have been providing convenient services to customers as a specialized Online Travel agency company
since establishing. We have developed our business centered on 3 strengths: “Purchasing ability”, “Various sales channels" and "Systemdevelopment ability".
Besides, in the current fiscal year, by unifying trade name and brand name to “Airtrip”, we are building a strong business base as an
operating company and aiming to raise the recognition of the Company’s brand.
our company’s planning to build a strong business foundation as an operating company, and to improve brand awareness.
Moreover, we have rearranged Group’s business domains, created a new Life Innovation business for Online Travel Agency business,and developed business that enhances the convenience of life scenes by utilizing the know-how of travel-related services.
From 2020 March, Net sales for the current fiscal year has been significantly impacted in online travel agency business and IT offshoredevelopment business by the worldwide expansion of COVID-19 and the influence of each country’s disease control policies. Online
Travel Agency business decreased 12.6% year-on-year to 18,744 million yen, IT offshore development business decreased 24.1% yearon-year to 1,888 million yen. On the other hand, in the investment business, sales increased 61.7% year on year to 558 million yen by
the transfer of the shares associated with the new listings of our company’s IPO investees. Based on the above, Net sales for the current
fiscal year decreased 12.8% year on year to 21,191 million yen.
Operating income for the fiscal year has been significantly impacted by the decreasing of net sales and the recording of an impairment
loss due to expansion of COVID-19. In the Online Travel business, operating loss decreased 800.1% year-on-year to 7,211 million yen,in the IT offshore development business, operating loss decreased 115.2% year-on-year to 24 million yen, and in the investment business,
operating loss decreased 162.3% year-on-year 257 million yen.
Regarding impairment loss, we have already recorded an impairment loss of 1,044 million yen in the second quarter of the current
consolidated fiscal year. In the fourth quarter of the same consolidated fiscal year, an additional impairment loss of 5,851 million yen
has been recorded, resulting in a total impairment loss of 6,896 million yen.
This is due to the above infection diseases have significantly impaired the Group's inbound and outbound demand and some domestic
demand. Therefore, impairment loss has been recorded for goodwill of 4,225 million yen and fixed assets of 1,626 million yen centeredon other software. Based on the above, operating income decreased by 9,440 million yen year-on-year to an operating loss of 8,760
million yen.
For details, please refer to “(2) Overview of Segment Reporting” on page 5. In the difficult business environment, we have significantly
reviewed variable costs and fixed costs focusing on advertising expenses, labor costs and rent expenses in selling, general andadministrative expenses (SG&A expenses). As a result of making variable cost of operation costs in Online Travel business,
implementing cost control according to the frequency, and controlling rent expense by the significant shift to working from home, wehave achieved reductions in selling, general and administrative expenses (SG&A expenses) in the current fiscal year and have establisheda system for early recovery from the next fiscal year.

―4―(2) Overview of Segment Reporting
Online Travel Agency Business(Million yen)
FY9/191.

FY9/20

Increase/Decrease

Rate of change (%)

Net sales

21,50518,744△2,761△12.6

Segment income

1,113△7,211△8,324△747.9Airtrip Travel Agency Business
The Company have been providing convenient services to customers as a specialized Online Travel agency company since establishing.

With 3 main strengths: “Purchasing ability”, “Various sales channels" and "System development ability", we’ve developed the following
services:(1) BtoC services (Directly managed by the company)
The Company have achieved a strong competitiveness by being partner with Japan Railways Group and each airline company wwith
the biggest domestic flight ticket agencies. We are operating "AirTrip", a site where you can easily compare and reserve domestic andoverseas travel content. We have even put much effort on making the site easy-to-use to provide the most suitable travel options.
(2) BtoBtoC services (travel content posting to OEM)
We provide domestic flight tickets and travel products; oversease flight tickets and hotels to other company’s media as travel content.
By increasing content lineup, it will help improve customer’s satisfaction for media users.
(3) Business Travel Management (BTM)
At “Airtrip BTM”, we develop ticket arrangement and an efficient management business system for daily business trips, and provide
free system for companies have business trips’ needs, direct cost and indirect cost could be reduced.
2.

Travel to Japan businessWe have developed accumulated know-how at Airtrip Travel Agency as a service for the foreign visitors to Japan as soon as possible

and for private lodging management companies(1) Wifi rental for the foreign visitors to Japan
Inbound Platform Corp., a subsidiary of AirTrip, offers a Wi-Fi router rental service for foreign visitors. With over 200,000 Wi-fibeing rented, we have established the brand with long-standing trust and good online review. We are planning to expand camping car
rental service according to inbound demand.
(2) Dynamic Package for the foreign visitors to JapanFor the increasing number of individual tourists from Southeast Asia, we’ve strengthened the ability to support each country’s language.
At first, domestic hotels, Japanese style hotel (ryokan)’s information has been prepared in Thai language. Information about domestic
hotel and Japanese style hotel (ryokan) can be found in “Dynamic Package for the foreign visitors to Japan for the first time” sold byJALpak Co., Ltd. We are also improving promotion campaign for other countries’ visitors.
(3) One-stop service for private lodging hosts
To utilize vacant houses that tend to increase every year in Japan, “Airtrip Stay Co. Ltd.” proposes operation of rooms in accordancewith Business law on private lodging. Among the increasing number of foreign visitors, “Airbnb” which is used by 1 in 5 people, is thefirst official partner in Japan, provide one-stop support from property’s registration to management. We are planning to expand thisservice.
3.

Life innovation business
By utilizing the accumulated “know-how” of various travel related services through “Airtrip”, we are developing the following―5―

businesses with the aim of making every scene of customers’ life more convenient.
(1) Healthcare
Direct health check are being questioned due to the impact of COVID-19, we provide not only online health check to replace simple
direct health check, but also daily 24-hour/365-day health check services by combining community health check /at-home health checkand the Internet according to users’ situation or need.
By implementing comprehensive effort on the field of “Travel/Business Trip” x “Health check”, medical institutions and clinics
cooperate with our subsidiary company “PikaPika Co. Ltd.” are planning to provide PCR test and antibodies test services during domestic
or overseas travel and business trips.
(2) E-magazine / WEB Media
By cooperating with , our subsidiary company “MAGMAG Inc.”, which principle is “Tell the things you want to the people want tohear”, we are developing and providing a mechanism to collect content such as creators from all over the world and deliver those
information to people who might value them.
With “Mine”, you can be subscribed on each article basis, including a free/paid magazine distribution service “MAGMAG!”. Moreover,
we also operate WEB Media like “MAG2 NEWS”, “MONEY VOICE”, “TRiP EDiTOR” and “by them”, which could discover contents
and deliver information to many people who want to know.
(3) Suitcase selling/rental
We rent and sell related-to-travel products such as suitcases and provide our own products to major and mass retail stores, and also
develop EC, OEM. We will always develop and provide high quality, easy-to-use and durable products.
Segment net sales from Online Travel business for the current consolidated fiscal year decreased 12.6% year on year to 18,744 million
yen. This reduction is caused by the expansion of COVID-19 and each country’s policy to prevent the expansion.
Segment income from Online Travel business for the current consolidated fiscal year decreased 747.9% year-on-year to 7,211 million
yen. The main reason for the decrease is the recording of impairment loss due to the expansion of COVID-19.
IT Offshore Development Business(Million yen)
FY9/19Net sales
Segment income

FY9/20

Increase/Decrease

Rate of change (%)

2,455

1,888

△567

△23.1

172

△24

△196

△114.0IT Offshore Development Business provides Lab-type development services for customers mainly with E-commerce/ Web solution/
Game/ System development companies based on Ho Chi Minh City, Hanoi or Danang of Vietnam.
Our Group’s Lab-type development services has created teams with new and dedicated staffs for each customer and the style that allow
customers to check the lab’s situation every time they want to.
Segment net sales from the IT offshore development business segment for the current consolidated fiscal year decreased 23.1% year on
year to 1,888 million yen. This reduction is caused by the expansion of COVID-19 and each country’s policy to prevent the expansion.
Segment income from the IT offshore development business segment for the current consolidated fiscal year decreased 114.0% year on
year to 24 million yen.

―6―

Investment Business

FY9/19FY9/20

Increase/Decrease(Million yen)
Rate of change(%)

Net Sales

345

558

213

61.7

Segment income

332

△257

△589

△177.4In the Investment Business, the Group is promoting the M&A strategy by building a business portfolio within the group focusing on
profitability and growth potential such as (1) Promotion of M&A that captures the reorganization momentum of the Travel Business, (2)Promotion of aggressive investment aimed at continuous business scale expansion, (3) Promotion of M&A for continuous businessgrowth of the Travel Business, and (4) Consideration for the sale of some businesses in terms of adjacent sectors.
In order to support the current and future needs of individual users and corporate clients, we continue to invest in innovative anddifferentiated domain such as new work styles support services. In the current consolidated fiscal year, we have expanded the number ofinvestment destinations to 64 companies.
Net sales for the investment business segment during the current consolidated fiscal year increased 61.7% year on year to 558 million
yen. Net sales increased by the sale of the shares associated with the initial public offering of the 3 investee companies in the Company's
IPO project in the current consolidated fiscal year.
Profit and loss for the investment business segment during the current consolidated fiscal year decreased 177.4% year on year to -257
million yen.

(3) Operational Measures for the current consolidated fiscal year
Risk Impact of the Group regarding the aftermath of the COVID-19
Although the aftermath of the COVID-19 infection worldwide and the effect of measures to prevent the aftermath of the infection ineach country have had a significant impact on the AirTrip Travel Business since March 2020, due to the contribution of profits excepting
Travel Business, Net sales for the current consolidated fiscal year decreased 12.8% year-on-year to 21,191 million yen. However, since
March 2020, the impact has been strongly affected by the operating income of the Online Travel Business, and the situation of the second
and third waves of infection, the recovery speed of travel demand and financial market conditions remain uncertain.
Operational Measures of the Group regarding the aftermath of the COVID-19
Although the Group is affected by the risks of business to the Group due to the aftermath of the above-mentioned COVID-19, We aremaking effort on business activities while continuing to ensure safety of our stakeholders such as employees and their families, individual
users, clients and external cooperation partners and preventing

the aftermath of infection.

In addition, to deal with the risks effect to Group by infectious disease, we have implemented the following management measures.
1.

Reduction of cash-out costs at the group-wide level
We have significantly reviewed variable costs and fixed costs focusing on advertising expenses, labor costs and rent expense. As aresult of making variable cost of operation costs in Online Travel business, implementing cost control according to the frequency, andcontrolling rent expense by the significant shift to working from home, we have achieved reductions in selling, general and administrative
expenses (SG&A expenses) in the current fiscal year and have established a system for early recovery from the next fiscal year.
2.

Issuance of Convertible bonds with stock acquisition rights (CB) and Share warrant (warrant)With a view to with corona/after corona, we are implementing the following finance while giving maximum consideration to the profit

of existing shareholders, and implementing a maximum fundrasing limit of over 6 billion yen.
Fundrasing methods

Capital raising ability

Convertible bonds with stock acquisition rights (CB)

About 1 billion yen

Share warrant (warrant)

About 5 billion yen―7―Please refer to below for more information on the above.
August 27th, 2020
AirTrip Corp. "Explanatory Material for Finance"
https://contents.xj-storage.jp/xcontents/AS99831/53d7ead6/6141/46d4/9c0e/edea0a59285c/140120200827486439.pdf
3. Conclusion of commitment line contract
In preparation for the aftermath of the COVID-19 pandemic, we have secured 1.5 billion yen as a short-term working capital limit.
4. The Sale of consolidated subsidiary
Due to the impact of the the COVID-19 pandemic, the Group's main travel demand has slumped sharply, the consolidated subsidiary
was sold as part of the restructuring of the Group's business and the Group's financial base has improved.
The Company has appropriately responded to the business risks that the disease cause to the Group by implementing the abovemeasures and determined that there are no significant uncertainty concerning the Assumption of Going Concern.

(4) Overview of Financial Position(Million yen)
FY9/19(from Oct 1st 2018
to Sep 30th 2019)

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

31,25322,994△8,259△26.4%

Total current assets

20,14015,073△5,067△25.2%

Total non–current assets

11,112

7,920△3,192△28.7%

21,153

20,144△1,009△4.8%

Total current liabilities

15,717

11,483△4,234△26.9%

Total non-current liabilities

5,436

8,660

3,224

59.3%

10,0992,849△7,250△71.8%

9,716

2,255

△7,461△76.8%

382

594

237

62.0%

Total Assets

Total Liabilities

Total Equity
Total equity attributable to owners of parent
Non–controlling interests

Increase/
Decrease

Rate ofchange (%)(Assets)
Assets decreased 8,259 million yen from the end of the previous fiscal year. This result was mainly due to a decrease of 1,954 million
yen in cash and cash equivalents, a decrease of 2,877 million yen in operating receivables and other receivable, a decrease of 6,877
million yen in property, plant and equipment, intangible assets and goodwill, and an increase of 3,462 million yen in the right-of-use
assets.
(Liabilities)
Liabilities decreased 10,09 million yen from the end of the previous fiscal year. This result was mainly due to a decrease in operating
payable and other operating payable of 1,788 million yen, a decrease in interest–bearing debt of 1,569 million yen, and an increase inother liabilities of 2,348 million yen.
(Equity)
Equity decreased 7,250 million yen from the end of the previous fiscal year. This result was mainly due to the recording of an impairment
loss of 7,416 million yen in the current consolidated fiscal year.

―8―(5) Qualitative Information on Consolidated Earnings Forecasts
The Group's consolidated Net sales in October 2020 was higher than in September of the previous month, although there are signs of arecovery in business results, the situation in each country is different from before, and there is a possibility that lockdown will continue
or resume in the future. In addition, due to the economic outlook remains uncertain, we believe that the aftermath of the COVID-19
pandemic will have a considerable impact on our business results from this fiscal year.
However, the AirTrip Group offers the following strategies for with COVID-19 and after COVID-19 by developing (1) AirTrip Travelbusiness as the main axis, (2) Travel to Japan business, (3) IT offshore development business, (4) Life Innovation business and (5)Investment business.
1.

Reliable capture domestic travel demand by utilizing the GoTo Travel Campaign
Promote the strengthening of cooperation with government agencies, local partners and airlines, and actively utilize the destinations

that stimulate domestic travel demand through the GoTo Travel Campaign, such as partial subsidies for travel prices.
2.

Consideration large-scale promotion for mass using the recognition of the Company’s brand AirTrip
Respond to new forms of travel by utilizing the AirTrip brand and promoting marketing strategies that take advantage of the influx oforganic products.
3.

Business development that supports new travel and lifestyles by utilizing IT literacy and development capabilities
Aim to develop new business models and services by grasping travel styles and lifestyles that are expected to change due to after

COVID-19.
4.

Start-up a new healthcare bussinessStart-up a new healthcare business as a further strengthening of the Life Innovation business domain. An comprehensive efforts arebeing made in the fields of "Travel/Business Trip" x "Medical Care", and medical institutions and clinics affiliated with our subsidiary
PikaPaka Co., Ltd. Are also providing PCR tests and antibody test services during travel and business trips in Japan and overseas.
5.

Preparation for listing of major group subsidiaries
MAGMAG Co., Ltd., which operates the long-established "MAGMAG!" on the distribution platform of the email magazine (e-zine),

was newly listed on the JASDAQ standard on September 24th, 2020. We are also preparing for listing of other major subsidiaries of theGroup, and will continue to improve the corporate value of the entire Group.
For details on the above, please refer to the November 13th, 2020 "Financial Results Material for the Fiscal Year Ended September 30,
2020" announced on the same day.

―9―

2. Consolidated Financial Statements and Key Notes(1) Consolidated Statements of Financial Position(Million yen)
FY9/19(As of Sep 30th 2019)
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable – trade andother receivables
Other financial assets
Inventories
Other current assets
Total current assets

FY9/20(As of Sep 30th 2020)

8,997

7,042

5,239

2,362

4,606
428
868

4,411
435
821

20,14015,073

Non-current assets
Property, plant and equipment

1,324

379

Right-of-use assets
Goodwill
Intangible assets
Other financial assets
Other non-current assets
Deferred tax assets

5,770
2,628
1,103
59
226

3,462
1,255
1,210
970
34
607

Total non-current assets

11,112

7,920

31,25322,994

4,414

2,625

Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating payables and other operating
payablesInterest-bearing debt

7,519

6,188

Lease liabilities
Other financial liabilities
Accrued income taxes
Other current liabilities

368
189
3,224

424
251
133
1,860

Total current liabilities

15,717

11,483

5,111
41
85
175
22

4,873
3,148
25
77
528
7

Non-current liabilities
Interest-bearing debt
Lease liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

5,436

8,660

21,153

20,144

Capital stock
Capital surplus

2,922
4,175

3,138
4,887

Retained earnings
Treasury shares

2,598
△0
19

△5,843
△0
72

9,716

2,255

Total liabilities
EquityOther items of equity
Total equity attributable to owners of parent
Non-controlling interests

382

594

Total equity

10,0992,849

Total liabilities and equity

31,25322,994―10―

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Million yen)
FY9/19(from Oct 1st 2018
to Sep 30th 2019)

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

Continuing businessNet sales

24,306

21,191

Cost of sales△11,385△13,689

Gross profit

12,920

7,502△12,865
150
546
△71
680
18

△9,069△527
327△6,994△8,760-

Selling, general and administrative expense
Share of loss (profit) of entities
Other income
Other expenses
Operating income
Finance income
Finance costs

△110

△195

Profit before income taxes
Corporate income tax expenses

588
165

△8,956△37

Profit from continuing business

753△8,919-445

Profit (loss)

753△8,473

Profit attributable to
Owners of parent
Non-controlling interests733
19△8,825△93753△8,473

Profit per share
Profit per share (Yen)

39.07△418.23

Continuing business
Discontinued business

39.07
-

△440.45
22.21

Fully diluted profit per share (Yen)

37.98△418.23

Continuing business
Discontinued business

39.98
-

△440.45
22.21

Discontinued businessProfit from discontinued businessProfit (loss)―11―

Consolidated Statement of Comprehensive Income(Million yen)
FY9/19(from Oct 1st 2018
to Sep 30th 2019)
ProfitOther comprehensive income, net of tax
Items that cannot be reclassified as profit or loss
Equity financial assets measured at fair value through othercomprehensive income
Total of items that cannot be reclassified as profit or loss
Items that may be reclassified as profit or loss
Translation adjustments of foreign operations
Cash flow hedge
Total of items that may be reclassified as profit or loss

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

753△8,473

△8

-

△8

-

△14

△9

△0

△0

△15

△9

Total of other comprehensive income, net of tax
Comprehensive income

△24
729

△9
△8,483Comprehensive income attributable to
Owners of parent

716△8,385

12

△97

729

△8,483

Non–controlling interests―12―(3) Consolidated Statement of Changes in Equity
FY9/19 (from Oct 1st 2018 to Sep 30th 2019)(Million yen)
Equity attributable to owners of parent

As of October 1st, 2018
Profit (loss)
Other comprehensive
incomeTotal comprehensive
incomeDividends of surplus
Issuance of new shares
Increase (decrease) by
share exchanges
Changes in equity bycontinuing control
subsidiary
Decrease in subsidiarysurplus throughconsolidation rangechangesAcquisition of treasury
stock
Increase (decrease)through transfers andother changes
Total transactions withowners
As of Sep 30th, 2019

CapitalCapital Retained Treasury Other items ofstock
surplus earnings
sharesequity
1,100
2,117
1,876
5
－
733
－
－
－
－

Noncontrolling Total equity
interests

Total
5,099
733

380
19

5,480
753

－

－

－

－

△16

△16

△7

△24

－

－

733

－

△16

716

12

729

－
1,822

△177
1,822

－
－

－
－

－
－

△177
3,644

－
－

△177
3,644

－

413

－

－

－

413

－

413

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

－

－

－

△0

－

△0

－

△0

－

－

△8

－

30

22

△11

11

1,822

2,058

△8

△0

30

3,902

△11

3,891

2,922

4,175

2,598

△0

19

9,716

382

10,099FY9/20 (from Oct 1st 2019 to Sep 30th 2020)(Million yen)
Equity attributable to owners of parent

As of October 1st, 2019
Cumulative impact by
new accounting standard
application
Balance after
retrospective restatement
Profit (loss)
Other comprehensive
incomeTotal comprehensive
incomeDividends of surplus
Issuance of new shares
Increase (decrease) by
share exchanges
Changes in equity bycontinuing control
subsidiary
Decrease in subsidiarysurplus in change inscope of consolidation
Increase (decrease)through transfers andother changes
Total transactions withowners
As of Sep 30th, 2020

CapitalCapital Retained Treasury Other items ofstock
surplus earnings
sharesequity
2,922
4,175
2,598
19
△0

Noncontrolling Total equity
interests

Total
9,716

382

10,099

-

-

△34

-

-

△34

△18

△52

2,922

4,175

2,564

△0

19

9,682

363

10,046--△8,380--△8,380△93△8,473

-

-

-

-

△4

△4

△4

△9

-

-

△8,380-△4△8,385△98△8,483

216

△198
216

-

-

-

△198
432

-

△198
432

-

510

-

-

-

510

-

510

-

204

-

-

-

204

-

204

-

-

△7

-

-

△7

-

△7

-

△22

△19

-

57

15

328

344

216

711

△27

-

57

958

328

1,286

3,138

4,887

△5,843

△0

72

2,255

594

2,849

―13―

(4) Consolidated Statement of Cash Flows(Million yen)
FY9/19(from Oct 1st 2018
to Sep 30th 2019)
Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization expense

FY9/20(from Oct 1st 2019
to Sep 30th 2020)
588
889

Loss (gain) on investments
Negative goodwill

△150
△209
-

Impairment losses
Gain on sale of businesses△313△8,437
1,310
723
△755
6,896
1,654

(Increase) decrease in trade and other receivables
Increase (decrease) in trade and other payables△1,358△35

Decrease (increase) in investment securities for sale
Other

△662
1,232

SubtotalInterest and dividend income received

△19
15

217

Interest expenses paid
Income taxes paid or return

△102
30

△180

Net cash provided by (used in) operating activities

△76

△199

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible asset

△267
116
△1,105

△267
73
△794
-

△1,947
△315
1,087
9
△246

Payments for lease deposits
Proceeds from withdraw deposits
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from sale of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from transfer of busines
Payments for transfer of business

641

-

△138

Other

△126

△150
△320

Net cash provided by (used in) investing activities

△678

△240

18
3,478

△1,224309△2,456
3,601△1,965
1,020
432

-

394

Cash flows from financing activities
Net increase (decrease) in short–term loans payable
Proceeds from long–term loans payable
Repayments of long–term loans payable
Proceeds from issuance of corporate bondProceeds from issuance of common shares

△84
153

66

133

553

-

△253

-

852

Proceeds form paid of non-controlling interests
Proceeds from sale of shares of subsidiaries equity to noncontrolling interest
Dividends paid to owners of the parent company
Other

-

89

△176
△5

△197

Net cash provided by (used in) financing activities

4,459△1,501

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

△27
3,677
5,320

△1,954
8,997

Cash and cash equivalents at end of period

8,997

7,042

Effect of exchange rate change on cash and cash equivalents

―14―

△360

△13

(5) Notes on going concern Assumptions
Not applicable.

(6) Notes to Consolidated Financial Statements(Change of the accounting policies)
Application of IFRS 16 "Leases"
The Group applied IFRS 16 Leases (issued in January 2016) (hereinafter referred to as “IFRS 16”) starting from thefirst three months of this consolidated fiscal year. On applying IFRS 16, the Group chose the method of recognizing the
cumulative effect of application of the standard at the date of initial application (October 1 st, 2019), which is permitted undertransition provisions, and not retrospectively restating comparative information.
(1) Definition of lease
As a result of the application of IFRS 16, at the inception of a contract, the Group assesses whether the contract is, or
contains, a lease. A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for aperiod in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group considers whether acontract includes use of an identified asset, whether the Group has the right to obtain substantially all of the economic
benefits from the use of the asset throughout the period of use, and whether the Group has the right to direct use of theasset.
(2) Accounting for leases
Leases as lessee
At the commencement of the lease, with respect to the lease components of leases except for short-term leases andlow value asset leases, the Group recognizes a right-of-use asset and the related lease liability. At the commencement
date, the Group measures the right-of-use asset at cost and measures the lease liability at the present value of the lease
payments that are not paid at that date.
The cost of the right-of-use asset consists of the amount of the initial measurement of the lease liability, any initial
direct costs, any lease payments made before the commencement date and other adjustments. The discount rate used todetermine the present value of leases payment is the interest rate implicit in the lease, if that rate can be readily
determined, and if that rate cannot be readily determined, the Group uses the Group’s incremental borrowing rate.
The lease term is the noncancellable period of the lease including the period covered by the option to extend the lease(when the Group is reasonably certain to exercise an option to extend the lease) and the period covered by the option toterminate the lease (when the Group is reasonably certain not to exercise the option to terminate the lease).
After the commencement date, the right-of-use asset is measured at cost less accumulated depreciation andimpairment losses. When depreciating right of use assets, the Group applies the depreciation requirements in IAS 16
Property, Plant and Equipment. The Group also applies IAS 36 Impairment of Assets when assessing whether todepreciate right-of-use assets and when accounting for identified impairment losses.
If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the Group isreasonably certain to exercise the lessee’s purchase option, the Group depreciates the right-of-use asset from thecommencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the right-ofuse asset by the straight-line method from the commencement date to the earlier of the end of the useful life of the rightof-use asset or the end of the lease term.
After the commencement date, the Group measures the lease liability by increasing the carrying amount to reflect
interest on the lease liability and reduces the carrying amount to reflect the lease payments made. The Group alsoremeasures the carrying amount to reflect any fluctuation of lease payments or lease modifications or to reflect revised
in-substance fixed lease payments.
The Group expenses lease payments related to short-term leases and low value leases by the straight-line method.
Accounting on transition
On applying IFRS 16, the Group applies the practical expedient that does not require it to reassess whether existing―15―

contracts contain a lease. Accordingly, assessment of leases in accordance with the definition of a lease under IFRS 16
applies only to contracts concluded or amended on or after October 1, 2019.
Leases as lessee(Leases classified as an operating lease under IAS 17)
A lease liability at transition is measured at present value of the remaining lease payments as of the transition datediscounted at the Group’s incremental borrowing rate as of October 1, 2019. A right-of-use asset at transition ismeasured by one of the methods shown below:
・carrying value as if IFRS 16 had always been in place calculated from lease commencement; provided, however, thatthe discount rate is the lessee’s incremental borrowing rate as of the date of initial application; or・set equal to the lease liability, adjusted for any prepaid or accrued lease payments.
When applying IFRS 16 to leases previously classified as operating leases under IAS 17, the Group applies thepractical expedients shown below:
・apply a single discount rate to a portfolio of leases with reasonably similar characteristics;
・account for leases for which the lease term ends within 12 months of the date of initial application by the same
method used for short-term leases;
・exclude initial direct costs from the measurement of the right-of-use asset as of the date of initial application; and・use hindsight with respect to contracts with options to extend or cancel when determining the lease term, etc.
(Lease classified as a finance lease under IAS 17)
The carrying value of the right-of-use asset and the lease liability is determined based on the carrying value of thelease asset and lease liability under IAS 17 immediately before the date of initial application.
(3) Impact on the consolidated statements of financial position at the date of initial application
On application of IFRS 16, in the consolidated statements of financial position at the beginning of the period, the Group
additionally recognized right-of-use assets of 4,819 million yen and lease liabilities of 4,871 million yen, andrecognized decreased of 34 million yen in retained earnings and 18 million yen in non-controlling interests.
(Segment information, etc.)
1. Summary of reportable segments
The Company’s reportable segments are its business units that have separate financial information available and that are subject toperiodical examinations by the Board of Directors for the purpose of determining the allocation of management resources and evaluating
performance.
Under its “One Asia” vision, the Group aims to serve as a bridge connecting various opportunities and engineers in Asia. With theOnline Travel Agency Business, IT Offshore Development Business and Investment Business as its three mainstay businesses, the Group
classifies these businesses, with their highly unique business models, as its main reportable business segments and draws up anddetermine Group strategies accordingly.
The businesses and main products belonging to each reportable segment are as follows:
Online Travel Agency Business：Online general travel agency service

IT Offshore Development Business：Lab-type offshore development services and BPO services

Investment Business：Investment in growing companies and turnarounds

2. Discontinued businessAt the board of directors meeting held on September 30th 2020, the Company resolved to transfer all of the shares of HIKAWA Co.,
Ltd., which is wholly owned by the Company (hereinafter referred to as the "Share Transfer") and concluded a share transfer agreementon the same date. HIKAWA Co., Ltd. was excluded from the scope of consolidation of the Group and the company's business is classified
as a discontinued business according to the transfer of shares. The share transfer was completed on the same date. In addition, for thecorresponding previous consolidated fiscal year, the same rearrangement is not displayed because the company was included in the
consolidated scope in December 2019.

―16―

The profit and loss from the discontinued business and the cash flow from the discontinued business are as follows:(Million yen)
Profit and loss of discontinued business

FY9/19(from Oct 1st 2018
to Sep 30th 2019)

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

Revenue (note)

-

2,786

Expenses (note)

-

2,269

Profit before income taxes from the discontinued business-

516

Corporate income tax expenses-

71

Profit from the discontinued business-

445

Owners of parent-

445

Non-controlling interests--

Profit from the discontinued business-

445

Attribution of profit from the discontinued business(Note) Profit/loss on sale and incidental expenses related to acquisition/sale due to the transfer of all shares of Hikawa Co., Ltd. in thecurrent consolidated fiscal year are included.
(Million yen)
Cash flow from the discontinued business

FY9/19(from Oct 1st 2018
to Sep 30th 2019)

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

Cash flows from operating activities (Net amount)

-

△309

Cash flows from investing activities (Net amount)-

477

Cash flows from financing activities (Net amount)

-

△427

(Note) In the current consolidated fiscal year, negative goodwill due to the acquisition of all shares of Hikawa Co., Ltd., and payments
and deposits from the acquisition/sale of all shares of the company, as well as incidental expenses related to acquisition/sale of theseshares are included.

―17―

3. Information related to net sales and profits (losses), assets, liabilities, and other amounts for the respective reportable segments
The accounting process for the reportable business segments is the same as that used for the preparation of the consolidated financial
statements.
The “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment and intersegment transactions.
The “Other” includes the business segments not included in the reportable segments, such as advertising revenue.
FY9/19 (from Oct 1st 2018 to Sep. 30th 2019)(Million yen)
Reportable segments
Online Travel IT Offshore
Investment
AgencyDevelopment
Business
Business
Business

Total

Other

Total

Adjustments Consolida
ted

External sales revenue

21,5052,455

345

24,306024,306―24,306

Intersegment revenue

―

548

―

548

―

548

△548

―

Total sales revenue

21,505

3,004

345

24,855024,855△548

24,306

1,113

172

332

1,619

△0

1,619

△938

680

Segment(losses)

profits

Financial income

18

Financial expenses△110

Income before income
588
taxes
(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising revenue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated
statement of income.

―18―

FY9/20 (from Oct 1st 2019 to Sep 30th 2020)(Million yen)
Reportable segments
Online Travel IT Offshore
Investment
AgencyDevelopment
Business
Business
Business

Total

Other

Total

Adjustments

ConsolidatedExternal sales revenue

18,744

1,888

558

21,191

0

21,191-

21,191

Intersegment revenue

-

634

-

634

-

634

△634

-

Total sales revenue

18,744

2,523

558

21,826

0

21,826△634

21,191△7,211△24△257△7,493△0△7,493△1,267△8,760

Segment(losses)

profits

Financial income-

Financial expenses△195

Income before income△8,956
taxes((Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising revenue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated
statement of income.

―19―(Per share information)
FY9/19(from Oct 1st 2018
to Sep 30th 2019)

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

Shareholders’ equity per share (yen)489.57

Shareholders’ equity per share (yen)106.51

Profit per share (yen)

39.07

Profit per share (yen)△440.45

Fully diluted profit per share (yen)

37.98

Fully diluted profit per share (yen)△440.45

The basics for the calculation of basic earnings per share and diluted earnings per share is as follows:
FY9/19(from Oct 1st 2018
to Sep 30th 2019)

FY9/20(from Oct 1st 2019
to Sep 30th 2020)

Profit per share
Profit attributable to owners of parent (million yen)733

△8,380－－733△8,38018,774,384

20,037,967－

0

Number of common shares increased (shares)

540,858

373,207(of which subscription rights to shares)

540,858

373,207

Amount not attributable to common shareholders(million yen)
Income applicable to common stock (million yen)
Average number of outstanding common shares
during the period (shares)
Fully diluted profit per share
Adjustment on net income (million yen)

FY9/19(from Oct. 1st 2018
to Sep. 30th 2019)

FY9/20(from Oct. 1st 2019
to Sep. 30th 2020)

Profit from continuing business attributable to owners ofparent (million yen)733

△8,825Adjustment on net income (million yen)－

0

Profit used to calculate of fully diluted profit per share(million yen)733

△8,825

Profit from discontinued business attributable to owners ofparent (million yen)－

445,124

Profit from discontinued business used to calculate fully
diluted profit per share (million yen)－

445,124

18,774,384

20,037,967

The effect of potential dilutive common shares (shares)

540,858

373,207

Convertible bonds with stock acquisition rights (shares)－

12,35019,315,242

20,411,173

Profit per share (yen)39.07△418.23

Continuing business

39.07△440.45

Discontinued business

－

22.21

37.98

△418.23

Average number of outstanding common shares
during the period (shares)

Average number of outstanding common shares
during the period after fully diluting (shares)

Fully diluted profit per share (yen)―20―Continuing business

37.98△440.45

Discontinued business

－

22.21

(Note) For fully diluted profit per share, in the current consolidated fiscal year, potential stocks do not have a dilutive effect due to theexercise of the subscription rights to shares reduces the loss per share for the period.
(Important subsequent events)
Not applicable.

―21―