For the Third Quarter of the Fiscal YearEnding September 30, 2019

Results ofOperations
Evolable Asia Corp.
TSE 1st Section: 6191
August 14, 2019

Highlights

Handling volume and net sales increased sharply,up 208% and 254% YoY, respectively.

Investment in AirTrip promotions as planned produced good results.

New AirTrip brand was announced.

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1

Financial Summary

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2

Changes in Handling Volume

Handling volume: 208% Increased sharply
Handling volume(hundred million yen)1,200

988

1,000

831
800

648

600

400

400

200

474263

261
72

157

295

112

0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

18.2Q

18.3Q

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18.4Q

19.1Q

19.2Q

19.3Q
3

Changes in Net Sales

Net Sales: 254% Increased sharply
Consolidated net sales(million yen)

20,00016,12315,00012,451

10,61810,000

6,324

5,533
5,000

1,202

4,735

3,449

3,968
2,498

1,624

0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

18.2Q

18.3Q

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18.4Q

19.1Q

19.2Q

19.3Q
4

Changes in Operating Income

Secured income while bolstering investmentin promotions as planned
Consolidated operating income(million yen)

2,000
Income from existing businesses

1,500

1,239
1,087

1,000

1,050

Strategic
investment
1,443

790

581
500

1,626

385
198

129

90

183

0245
500
17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q 19.2Q 19.3Q
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Statement of Income

Sharp increase in sales thanks to an aggressive(million yen)investment to promote AirTrip
FY18AmountQ

FY19% to Sales

AmountQ

YoY Change% to Sales

Handling Volume

47,40698,899Net Sales

6,324

100.0%

16,123100.0%

254

Gross Profit

3,965

62.6%

9,109

56.4

229%

Operating
Income

1,050

16.6%

183

Profit

661

10.4%

29

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208

1.1%

17%

6

Balance Sheet

Improvement in equity ratio through fundraising(million yen)

End of FY2018

YoY Change

19.3Q

15,202

19,752+4,550Cash and Deposits

5,320

8,365+3,045

Operational investment securities

3,889

4,649+760Non-current Assets

9,736

10,636+900

Total Assets

24,93930,388+5,449

Liabilities

19,371

21,345+1,974

Interest-bearing Debts

10,811

11,674+863

Net Assets

5,567

9,043+3,486

Equity attributable to equity holdersof the parent

5,188

8,614+3,426

Ratio of equity attributable to equity
holders of the parent

20.8%

28.3%

+7.5

Current Assets

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7

Topics

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AirTrip
The Next Stage for AirTrip:
New Brand

AirTrip Plus
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9

Copyright © Evolable Asia Corp. All Rights Reserved.

10

AirTrip Plus: Freely Combinable

Shifting from standalone airline ticket sales
to airline ticket + hotel packages
Customers can choose freely fromover 400 domestic and overseas airline and 600,000 hotels

AirTrip Plus

Standalone airline tickets

Free combination
Handling volume

Domestic & overseas overDomestic & overseas overNo.1

400

600,000

companies

hotelsCopyright © Evolable Asia Corp. All Rights Reserved.

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AirTrip Plus: Value airline ticket and hotel packagesWith AirTrip Plus
airline tickets and hotel packages are even better value

Overseas hotel fees

Free!! (best deal)

Domestic hotel fees

Copyright © Evolable Asia Corp. All Rights Reserved.

70% off !!
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AirTrip Plus: Becoming the biggest Japanese OTA

Target: sales volume of ¥50 billion for airline ticket + hotel packages
and to become the biggest Japanese OTA

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13

AirTrip Plus: Launch of new commercial

New AirTrip Plus commercial launches August 28
Illustrative image of the commercial

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14

FUJI BOXING Sponsorship

Sponsorship of WBA world middleweight title match
between Ryota Murata and Rob Brant:

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Athlete No.1 Golfer Decisive Battle

Athlete No.1 Golfer Decisive Battle to be held on October 8, 2019
(hosted jointly by AirTrip and GolfLife)

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16

AirTrip Promotion: Ad Truck

Launched ad truck advertisements
in Tokyo, Kanagawa and Chiba

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17

AirTrip: Effect of Branding (1)Improvement in brand recognition raised level of search trend
Maintained a high level throughout the year

AirTrip

Jul 2018

Jul 2019
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AirTrip: Effect of Branding (2)Shift from customer acquisition through web advertising tocustomer acquisition through brand recognition
450%

Percentage increase involume of transactions
with individual customers

After acquisition of DeNA travel

135%

400%

130%

350%

125%

300%

Increase in Handlingvolume due to brand 120%
recognition

250%

115%
Percentage
increase inWEB advertisingexpenses

200%
150%

110%
Increase in handling volume 105%
due to web advertising100%

100%April

MayCopyright © Evolable Asia Corp. All Rights Reserved.

June
19

AirTrip: Effect of Branding (3)AirTrip
2.1 times higher than the year-ago level
Lastmonths

Year-ago level

Stable increase in inflow
Apr 2019

Jun 2019
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Online Travel Agency Business: Number of BTM Clients

Number of BTM clients rose steadily to over 3,000
No. of corporate customers

3,168
2,815

Increase due to acquisitionof DeNA Travel

2,906

2,997 3,083Increase due to acquisitionof Tokyo Masters
1,207
1,097 1,152
544

572

619

16.1Q

16.2Q

16.3Q

667

722

782

16.4Q

17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

1,273

18.2Q

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18.3Q

18.4Q

19.1Q

19.2Q

19.3Q

21

Currency Exchange Business

Opened a new AirTrip curreny exchange store inAmeyoko, Ueno (Tokyo)

Ameyoko store
opened July 25,
2019

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22

IT Offshore Development Business: Business Progress

Steady progress continued,with orders received from 12 new companies
Number of engineers: about 1,000 persons

New orders received: 12 companies

About 1,000 persons

2014

2015

2016

2017

2018

2019

and 8 other companies
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23

Investment Businesses: Results of Investments

Strengthening of investment development:
57 companies; total investment amount: 2.1 billion yen* As of August 2019etc
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24Investment Businesses: Investment Performance

Third IPO project: Branding Technology listed on stock market

Listing

Sale

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Stock Acquisition Rights

Completed exercising of all stock acquisition rights forexternal entities: eradicated potential dilutive shares

11th stockacquisition rights

13th stockacquisition rights

Acquired andcancelled

Exercised
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26

Future Growth Strategies

Bolster investment to promote AirTrip.

Achieve consolidated transaction volumeof more than 150 billion yen.

Ensure YoY income growth alongside investment drive.

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27

Earnings Forecasts and Expected Dividends

Achieve high sales growth through active investment
and secure profit growth while making investments(million yen)

FY17

FY18

FY19 Forecast

Handling
Volume40,001

83,166

Not disclosed

Net Sales

5,533

12,451

Not disclosed

Operating
Income

1,088

1,239

Not disclosed

Profit708

942

Not disclosed

Dividend

7 yen

10 yenNot disclosed

Supplement

Achieve high sales growththrough active investment

Secure profit growth
while making investment

Keep the dividend payout ratioat the 20% level

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Vision of Handling Volume

Handling volume of more than 150 billion yen:
Substantially higher sales expected
One of top 10 travel sector businesses based on handling volume
More than150 billion yen

1,600
1,400

Handling volume(hundred million yen)

1,200831

1,000

800600403
400
200051741

FY07

FY08

FY0987100107140153

FY10

FY11

FY12

FY13

FY14206

FY15276

FY16

FY17

FY18

FY19Forecast

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29

Vision of Investment and Profit

Continue strategic investment in FY2019:
recover investment from FY2020
Consolidated operating income(million yen)
8,000
Strategic investment
Existing business

Achieve profit growth
while making
investment

6,000

4,000

1,087

2,000

991,239312

02,000Control investment
and achieve highprofit growth

4,000

FY15

FY16

FY17

FY18

FY19

FY20

FY21Forecast

Forecast

Forecast

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30

•These materials contain forwardexpectations, estimates, and forecasts.

•A variety of risks and uncertainties are inherent in the assertions made in these forward-looking statements. Known and unknown risks, uncertainties, and other factors
may result in differences from the statements included in assertions related to forward-looking statements.

••-looking statements contained in these materials.
The assertions related to forward-looking statements made in these materials are based on the best information currently available to the Company and will not update orrevise any forward-looking statements to reflect future events or conditions.
Evolable Asia Corp.
19th Fl. Atago Green Hills Mori Tower, 2-5-1 Atago, Minato-ku, Tokyo 105-6219
Phone. +81-3-3431-6191
http://www.evolableasia.com