For the First Half of the Fiscal YearEnding September 30, 2019

Results ofOperations
Evolable Asia Corp.
TSE 1st Section: 6191
May 15, 2019

Highlights

Handling volume and net sales increased sharply, up 245%
and 307% YoY, respectively.
Investment in AirTrip promotions as planned produced goodresults.
Aiming for YoY income growth on full-year basis alongside
investment drive
Good progress was made during the first half.

Copyright © Evolable Asia Corp. All Rights Reserved.

1

Financial Summary

Copyright © Evolable Asia Corp. All Rights Reserved.

2

Changes in Handling VolumeHandling volume: 245% Increased sharply
Handling volume(hundred million yen)

1,000

831
800

648
600

474

400

400263261200

72157

295

112

0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

18.2Q

18.3Q

Copyright © Evolable Asia Corp. All Rights Reserved.

18.4Q

19.1Q

19.2Q
3

Changes in Net Sales

Net Sales: 307% Increased sharply
Consolidated net sales(million yen)

14,00012,451

12,00010,61810,000

8,000

5,533

6,000

3,968

4,000
2,000

6,340

2,498

1,202

3,449

4,735

1,624

0
17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q 19.2Q
Copyright © Evolable Asia Corp. All Rights Reserved.

4

Changes in Operating Income

Secured income while bolstering investment inpromotions as planned
Consolidated operating income(million yen)
1,400

1,229

Income from existing businesses

1,200

1,087

1,037

1,039

1,000

790

800

Strategicinvestment
949

581

600

385

400
200

198

90

129

Earned incomeof 330 millionyen

0200

400

245
17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q
Copyright © Evolable Asia Corp. All Rights Reserved.

19.2Q5Statement of Income

Sharp increase in sales thanks to an aggressive
investment to promote AirTrip(million yen)
FY18 2Q
Amount

FY19 2Q% to Sales

Amount% to Sales

YoY Change

Handling
Volume26,363

Net Sales

3,449

100.0%

10,618100.0%

307

Gross Profit

2,230

64.6%

5,883

55.4

263%

Operating
Income

790

22.9%

90

Profit513

14.8%

964,849

Copyright © Evolable Asia Corp. All Rights Reserved.

245

0.8%

11%

6

Balance Sheet

Improvement in equity ratio through fundraising(million yen)

End of FY2018

19.2Q

YoY Change

15,202

18,689+3,487

Cash and Deposits

5,320

6,932+1,612

Operational investment
securities

3,889

4,547+658

Non-current Assets

9,276

9,969+693

Total Assets

24,92928,658+3,729Liabilities

19,371

20,817+1,446Interest-bearing Debts

10,811

11,516+705

Net Assets

5,557

7,841+2,284

Equity attributable to equity
holders of the parent

5,176

7,393+2,217

Ratio of equity attributable toequity holders of the parent

20.7%

25.8%

+5.1

Current Assets

Copyright © Evolable Asia Corp. All Rights Reserved.

7Topics

Copyright © Evolable Asia Corp. All Rights Reserved.

8

AirTrip: New CM

Airing of new CM for summer sale from May 18

Ultra Summer Sale
with great summer holiday deals

Complimentary nights
on domestic tours

Copyright © Evolable Asia Corp. All Rights Reserved.

9

Karaoke no Tetsujin Collaborative Campaign

Collaborative campaign by AirTrip and Karatetsu at all
Karaoke no Tetsujin stores

Display of posters in store

Showing of CM on instore monitors

Copyright © Evolable Asia Corp. All Rights Reserved.

10Event Sponsorship

STARSON ICEto raise recognition of AirTrip

Special sponsorship of event
supporting recovery from Great
East Japan Earthquake

Rinkfigure skating show

Copyright © Evolable Asia Corp. All Rights Reserved.

11

AirTrip: Effect of Branding (1)Improvement in brand recognition raised level of search trend
CM had lasting effect even during periods when CM was not being aired

AirTrip

CMairedApr 2018

CMnotairedApr 2019
Copyright © Evolable Asia Corp. All Rights Reserved.

12

AirTrip: Effect of Branding (2)Shift from customer acquisition through web advertising tocustomer acquisition through brand recognition
450%
400%

Percentage increase involume of transactions withindividual customers

350%

Increase in Handlingvolume due to brandrecognition

300%

250%
200%
150%

Percentage increase inWEB advertisingexpenses

Increase in handlingvolume due to web
advertising

100%January

February

MarchCopyright © Evolable Asia Corp. All Rights Reserved.

13

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

Year-ago levelJan 2019

Mar 2019
Copyright © Evolable Asia Corp. All Rights Reserved.

14

Online Travel Agency Business: Number of BTM Clients

Number of BTM clients rose steadily to over 3,000
3,083
Increase due to acquisitionof DeNA Travel

2,815

2,906

2,997

Increase due to acquisitionof Tokyo Masters
1,097
544572619667722

1,152 1,207

1,273782

16.1Q 16.2Q 16.3Q 16.4Q 17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q 19.2Q

Copyright © Evolable Asia Corp. All Rights Reserved.

15

Camping Car Rental Business

Global Expansion

Launch of camping car rental in Canada

Copyright © Evolable Asia Corp. All Rights Reserved.

16

IT Offshore Development Business: Business Progress

Steady progress, including the group companies
Number of engineers: about 1,000 persons

New orders received: 12 companies

About 1,000persons

20142015

2016

2017

2018

2019

and 8 other companies
Copyright © Evolable Asia Corp. All Rights Reserved.

17

Progress of Preparations for Listing of Subsidiary

Changed trade name to HYBRID TECHNOLOGIES

Copyright © Evolable Asia Corp. All Rights Reserved.

18

Investment Businesses: Results of Investments

Strengthening of investment development:
56 companies; total investment amount: 2.1 billion yen* As of May 2019etc
Copyright © Evolable Asia Corp. All Rights Reserved.

19

Investment Businesses: Investment Performancevalue of a number of companies increased

Increase invalue+ 3 companies
Copyright © Evolable Asia Corp. All Rights Reserved.

20

Corporate GovernanceCorporate governance was strengthened, with three
new Executive Officers taking up their posts

Takahiro
Kanda

Sho Niiya

ShuichiNakazakiWorld Travel System Inc.

Accenture Japan Ltd.

Mizuho Financial GroupStrengthening ofoverseas tour sales

Strengthening ofmanagement strategy

Strengthening ofadministrative functions

Copyright © Evolable Asia Corp. All Rights Reserved.

21

Reorganization

Marketing of each product was further strengthened
through reorganizationDomestic Airticket Sales
Business Dept.

Domestic Tour Sales
Business Dept.

Copyright © Evolable Asia Corp. All Rights Reserved.

Hotel Reservations
Business Dept.

22

Future Growth Strategies

Bolster investment to promote AirTrip.

Achieve consolidated transaction volumeof more than 150 billion yen.

Ensure YoY income growth alongside investment drive.

Copyright © Evolable Asia Corp. All Rights Reserved.

23

Earnings Forecasts and Expected Dividends

Achieve high sales growth through active investment
and secure profit growth while making investments(million yen)
FY17FY18

FY19ForecastHandling
Volume40,001

83,166

Not
disclosed

Net Sales

5,533

12,451

Not
disclosed

Operating
Income

1,088

1,229

Not
disclosed

Profit

708

932

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 ratio at
the 20% level

Copyright © Evolable Asia Corp. All Rights Reserved.

24

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
1,600
1,400

More than 150
billion yen

Handling volume(hundred million yen)

1,200
1,000

831

800
600403400
200051741

FY07

FY08

FY0987100

107140153

FY10

FY11

FY12

FY13

FY14206

FY15276

FY16

FY17

FY18

FY19
Forecast

Copyright © Evolable Asia Corp. All Rights Reserved.

25

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

1,0872,000

991,229312

02,000Control investment andachieve high profit
growth

4,000

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Forecast

Forecast

Forecast

Copyright © Evolable Asia Corp. All Rights Reserved.

26

•

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