FY 2024 (Jul 2023-Jun 2024) 1Q

Financial Result

Contents

Summary of the Results for FY2024 1Q

p.2

Business report of FY2024 1Q
and future business development

p.10

Copyright © 2023 Temairazu, Inc. All rights reserved.

1

1 Summary of the Results

Copyright © 2023 Temairazu, Inc. All rights reserved.

2

１

Summary of the Result for FY 2024 1Q

1Outline of the financial results
Net Sales︓ 12.3％ up YoY

Operating Income ︓13.4% up YoY

FY2024 1Q
Results

Profitmargin onsales

Result of same
period last year

Difference(amount)

Difference(percentage)

Net Sales

JPY 487,160 K－

JPY 433,949 K

JPY 53,210 K

12.3％

Operating
IncomeJPY 361,337 K

74.2%

JPY 318,659 K

JPY 42,678 K

13.4％

Ordinary
IncomeJPY 361,747 K

74.3%

JPY 319,126 K

JPY 42,620 K

13.4％

Net Income

JPY 241,682 K

49.6%

JPY 213,536 K

JPY 28,145 K

13.2％

Net earnings
per share

JPY 37.30－

JPY 32.96

Copyright © 2023 Temairazu, Inc. All rights reserved.

－－3

１2

Summary of the Result for FY 2024 1Q

Sales composition ratio

3.2%

2.2%

1.7%

1.9%

1.6%

1.7%

1.9%

2.1%

2.1%

2.4%

2.1%

1.3%

96.8%

97.8%

98.3%

98.1%

98.4%

98.3%

98.1%

97.9%

97.9%

97.6%

97.9%

98.7%

Internet Media Business
Application Service Business

FY2021 2Q

FY2021 3Q

FY2021 4Q

FY2022 1Q

FY2022 2Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

FY2022 3Q

FY2022 4Q

FY2023 1Q

FY2023 2Q

FY2023 3Q

FY2023 4Q

FY2024 1Q

4１3

Summary of the Result for FY 2024 1Q

Sales and profit per segment

Application Service Segment:
Sales and profits increased and profit margin after cost allocation was 74.5%
Internet Media Segment:
Sales and profits decreased and profit margin margin after cost allocation was 50.4%
Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 396,903 K(JPY 358,137 K)

82.5％(74.5％)

JPY 6,344 K

JPY 3,797 K(JPY 3,200 K)

59.9％(50.4％)-- JPY 39,363 K-

JPY 487,160 K

JPY 361,337 K

74.2％

Segment Sales

Application ServiceBusiness
Internet Media Business

JPY 480,815 K

Adjustment
TOTAL

Copyright © 2023 Temairazu, Inc. All rights reserved.

5

Summary of the Result for FY 2024 1Q

１4 Sales trend of Application Service segment(Temairazu)
YoY: +13.1%

500,000(QoQ: +6.1%)

Unit: JPY 1,000
450,000

400,000

Jul – Dec 2020: Go To Travel Campaign(Tokyo included from Oct 2020)
May 2023: Covit-19 reclassified as Class 5

350,000

Apr – May 2020: The 1stannouncement of State ofEmergency

300,000

Oct 2022:
ü The national travel assistance program started
ü Relaxation of immigration restrictions

250,000

Dec 2019: The 1st case of COVIT19 reported

20
192Q

20193Q

20
194Q

20
20
1Q

2020
2Q

2020
3Q

20
20
4Q20211Q

20212Q

20213Q

20214Q

20221Q

20222Q

20223Q

20224Q

20231Q

20232Q

20233Q

20234Q

20241Q

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

200,000

Copyright © 2023 Temairazu, Inc. All rights reserved.

6

１

Summary of the Result for FY 2024 1Q

5

Breakdown of sales cost and SG&A

30,21930,12731,92230,70933,42035,076

1,749

3,306

1,391

49,676

Labor Cost

Commissions

789

442

51,29551,25543,67848,95536,92343,53236,96934,821

2,038

2,054

40,84945,69247,43649,80421,70818,73019,971

18,81818,715

15,381

17,50914,455

15,963

15,141

FY2023 1Q

FY2023 2Q

FY2023 3Q

FY2023 4Q

FY2024 1Q

36,505

1,807

3,045

48,001Advertising Cost

OthersUnit : JPY 1000

31,167

Sales Cost

123

845

618

47,81544,466

16,891

18,540

FY2021 2Q

17,435

14,911
FY2021 3Q

16,854

20,223

17,794

17,208
16,96818,275

15,59817,187

FY2021 4Q

FY2022 1Q

FY2022 2Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

20,62911,610
FY2022 3Q

FY2022 4Q

7１6

Summary of the Result for FY 2024 1Q

Progress rate against full-year forecast

FY2024 1Q

FY2024 Forecast

Progress Rate

Net Sales

JPY 487,160 K

JPY 1,928,116 K

25.3％

Operating Income

JPY 361,337 K

JPY 1,297,105 K

27.9％

Ordinary Income

JPY 361,747 K

JPY 1,302,023 K

27.8％

Net Income

JPY 241,682 K

JPY 831,888 K

29.1％

JPY 37.30

JPY 128.39

Net earnings
per share

Copyright © 2023 Temairazu, Inc. All rights reserved.

-8１7

Summary of the Result for FY 2024 1Q

Balance Sheet
End of FY2023

End of FY2024 1Q

JPY 5,826,084 K

JPY 5,807,125 K

Other current
assetsJPY 290,803 K

JPY 310,673 K

Fixed assets

JPY 64,621 K

JPY 58,881 K

Deferred tax assets

Total Assets

JPY 6,181,509 K

JPY 6,176,679 K-

JPY 397,108 K

JPY 263,986 K

Income taxes
payable- JPY 159,479 K

JPY 5,784,400 K

JPY 5,912,693 K

Recording of net
income+ JPY 241,682 K

Dividend of surplus- JPY 113,389 K

JPY 6,181,509 K

JPY 6,176,679 K-

93.6%95.7%-CashLiabilities
Capital stock
Total liabilities /net assets

Equity ratio

Copyright © 2023 Temairazu, Inc. All rights reserved.

Key factors of change- JPY18,958 K- JPY 4,291 K

92

Business report andfuture business development

Copyright © 2023 Temairazu, Inc. All rights reserved.

10２1

Business report and future business development

Business Summary of each segment
Application Service Business

Development & provision ofchannel manger “TEMAIRAZU”
seriesInternet Media Business

Operation of meta search site
“Hikaku.com”
Customer derivation service
Direct users to the advertiser's website and earncommission income according to the number ofcontracts.

Develop and offer “Temairazu”, theInformation provision service

channel manager system toaccommodation properties in Japan,

Earn fee income according to the number ofquotation and materials requested for insurancesand moving etc.

enabling them to manage their distribution

Adschannels centrally.

Sell advertisements such as banner, text, article
content etc.

Copyright © 2023 Temairazu, Inc. All rights reserved.

11２

Business report and future business development

2-1 Application Service Business (Temairazu)

Our Channel Manager is a system for accommodation properties to manage theirdistribution channels in effective and efficient way, resulting in increasing the sales
ability and reducing the operation cost.
booking site Abooking

booking site B

auto adjustment
booking site C

Manage multiple
channels easily with only
one operation
Manage rate & inventory at onceand be free from troublesome
operation tasks. Reducing
operation cost by simplifying
channel management workflow.
Copyright © 2023 Temairazu, Inc. All rights reserved.

Avoid overbooking by
fast & auto update
Short interval between acquiring
bookings and able to adjust theinventory quickly. Possible toclose the sale on each channel
all at once even if many
bookings comes in suddenly.

Accessible fromanywhere with internet
connection
Access Temairazu from the anyplaces where internet
connection is available. Sameaccount can be used fromdifferent computers as data isstored in dedicated server.
12２Business report and future business development

2-2 Application Service Business (Temairazu)
Beginning of “TEMAIRAZU” service

New model channel manager”TEMAIRAZU.NET”“TEMAIRAZU”,
advanced and will keep advancing

Copyright © 2023 Temairazu, Inc. All rights reserved.

Soon after online hotel booking sites appeared andpeople started to make bookings online, installed
application “TEMAIRAZU!”, the channel manager wasborn. This system enabling centralized management ofmultiple distribution channels have been used by many
accommodation properties.

In 2010, new ASP model channel manager“TEMAIRAZU.NET” was launched. The ability to be usedanywhere by connecting to internet had much improved
convenience and efficiency of this system. Connected to
not only domestic channels but also overseas/global
channels and travel agents. Also, became able toconnect with CRS, being efficient system for getting
bookings of inbound travelers.

With valuable feedbacks from users, new “TEMAIRAZU”
with various additional features was launched in 2015. InJuly 2016, advanced version “TEMAIRAZU YIELD” waslaunched. And in Mar 2020, new version “TEMAIRAZUmini” was launched. We will always listen to voices ofcustomers and “TEMAIRAZU” will keep advancing.
13２Business report and future business development

2-3 Report on Application Service Business (Temairazu)

New system connectivity for improving operational efficiency and convenience■ Use of PalaceLink Inc.'s "TOMARO+" to provide support for short-staffed acommodation
facilities, mainly for check-in processes, and enable efficient on-site operations

Sales channel expansion to accommodation facilities: Cooperation withaccommodation booking sites, etc.
■ Use of the "Hoterea" on-line service of HOTELSKIP Co., Ltd., which provides real-timebookings at the cheapest rates at more than 150,000 hotels globally

Enhancement of features of "TEMAIRAZU" series■ Release of optional features to contribute to automation and labor-saving processes forcancellation waitlists
Copyright © 2023 Temairazu, Inc. All rights reserved.

14

２Business report and future business development

2-4 Temairazu segment (Application service segment)
Composition of Sales in Application Services Business:n Fixed Monthly Income (Basic monthly charges and option charges)
n Monthly variable income (Communication charges according tothe number of reservations)
Status︓n Fixed Monthly Income
ü The churn rate is on decreasing trend.
ü New inquiries are on increase.
n Monthly variable income
ü The variable income is on increase due to increasing demand foraccommodation industry.
Result in FY2024 1Q︓
n Fixed Monthly Income:n Monthly Variable Income :n Other Income :Copyright © 2023 Temairazu, Inc. All rights reserved.

JPY368 million
JPY 104 million
JPY 7.2 million

76.7% （YoY +6.6%）
21.8% （YoY +42.9%）
1.5%
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２2-5

Business report and future business development

Report on Application Service Business (Temairazu)

Segment profit（after cost allocation）
YoY +14.4％(QoQ +7.3%)< Topics >358,137
313,101

FY2023 1Q

FY2024 1Q

n Increase in number of accommodation bookings
ü As a result of summer holiday breaks not
impacted by activity restrictions and border
entry restrictions, both domestic and inboundtourism increasedn Although there was a certain number ofcancellations mainly of small-scaleaccommodations due to closure etc., the churnrate is on decreasing trend.

Unit: JPY 1,000
Copyright © 2023 Temairazu, Inc. All rights reserved.

16

２Business report and future business development

2-6 Future business development of Application Service Business(Temairazu)• Responding to returning demand.
• Aiming for products that will contribute to further sales
expansion and operational efficiency, which will help secure
the revenues of accommodation properties.

Connecting with sales
channels

Connecting with varioussystems

Strengthening sales anddevelopment capabilities

Strengthening Temairazu
functions

Copyright © 2023 Temairazu, Inc. All rights reserved.

17２Business report and future business development

3 Report on Hikaku.com segment (Internet Media segment)

Segment profit（after cost allocation）
YoY -42.4％(QoQ 2.4%)< Topics >Unit: JPY 1,000

5,557■ Due to effect from search engine algorithms,site traffic declined
3,200

FY2023 1Q■Continuous implementation of the followingmeasures
・ Search Engine Optimization・ User interface improvements
・ Mobile usability improvements

FY2024 1Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

18Company Profile
Trade NameTemairazu, Inc.

Establishment

August 4, 2003

Account closing monthJune

Capital fund

JPY 717,041,935 (As of Jun 30, 2023)

Number of shares issued

6,479,834 (As of Jun 30, 2023)

Share trading unit

100 (As of Jun 30, 2023)

Address

7F Ebisu NR Bld, 1-21-3 Ebisu, Shibuya-ku, Tokyo JAPAN

Securities code

2477 (Prime Market of the Tokyo Stock Exchange)

Auditing firm

Deloitte Touche Tohmatsu LLCWebsites“HP”“TEMAIRAZU”“Hikaku.com”

Copyright © 2023 Temairazu, Inc. All rights reserved.

https://www.temairazu.co.jp/
https://www.temairazu.com/
https://www.hikaku.com/
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Notes on this Financial Result document
This material is intended to provide information on the performance of the financial
results of the fiscal year ending June 2023. In no way is the information intended to solicit
an investment in securities issued by the Company. The information is prepared basedon data as of the end of June 2023. Accordingly, the opinions or forecasts on thispresentation are dependent on the judgment of the Company at the time of thepreparation, and do not guarantee nor pledge accuracy or integrity of the information.
In addition, such opinions or forecasts may be changed without notice.
IR Contact
Temairazu, Inc. Corporate Planning Division
Tel: +81 (0)3-5447-6690 email: ir@temairazu.com
IR Information
https://www.temairazu.co.jp/ir/news
Press Release
https://www.temairazu.co.jp/press
Copyright © 2023 Temairazu, Inc. All rights reserved.

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