Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending September 30, 2021
(FY9/21) (Nine Months Ended June 30th, 2021) [IFRS]
August 13th ,2021
Stock Exchange
TSE
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)03 (3431)6191
thScheduled date of filing of Quarterly Report:
August 13 , 2021
Scheduled date of payment of dividend:－
Preparation of supplementary materials for financial results:： Yes
Holding of quarterly financial results briefing:： Yes (for institutional investors and securities analysts）(All amounts are rounded down to the nearest million yen)Company name:

AirTrip Corp.

１．Consolidated Financial Results for the Third Quarter (October 1st 2020 ~ June 30th, 2021)(1) Consolidated results of operations(Percentages represent year–on–year changes)
Net sales

Nine Months Ended June 30th, 2021

Million Yen
14,198

Profit before
income taxes

Operating income

Total
comprehensive
incomeMillion Yen % Million Yen %2,206 2,423 -Profit attributable toowners of parent

Profit% Million Yen % Million Yen % Million Yen %△20.7
3,071 3,018 2,438 -Nine Months Ended June 30th, 2020
17,90811.0△1,882 △2,016 △1,215 △1,167 △1,224 (Note) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’s business is classified as a
discontinued business. Therefore, net sales, operating income, and profit before income represent the amou nt of continuing business excluding discontinued
business.

Profit per share

Fully diluted profit per share

Yen
105.03△58.36Nine Months Ended June 30 th, 2021
Nine Months Ended Jun 30th, 2020

Yen
102.47△58.36(2) Consolidated financial position
Total assets

Ratio of equity
attributable to owners ofparentEquity attributable toowners of parent

Total equity

As of Jun. 30th, 2021

Million Yen
21,551Million Yen
6,860

Million Yen
5,900

%
27.3

As of Sep. 30th, 2020

21,940

2,538

1,983

9.0

2. Dividends
Dividend per share
1Q-endFiscal year ended Sep. 30th 2020
Fiscal year ended Sep. 30th 2021
Fiscal year ending Sep. 30th ,2021(Estimated)

2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

―
―

0.00
0.00

―
―

10.00

10.00

―

―

Note: Revision to the mot recently announced dividend forecast: None
Currently, the expected dividend for the fiscal year ending September 2021 is undecided―1―

3. Full-year consolidated financial forecast for FY9/21 (October 1st, 2020– September 30, 2021)(Percentages represent year-on-year changes.)
Net sales

Full year

Million Yen
19,000Operating income% Million Yen
△10.6
2,600

Profit before
income taxes% Million Yen
2,540－

Profit attributable toowners of parent%－

Million Yen
1,672

Profit per share
%
－

Yen
78.06

Note: Revision to the most recently announced forecast: None
Every change (if any) shall be promptly updated.

※ Notes(1) Changes in significant subsidiaries during the period (changes in specified
subsidiaries resulting in changes in scope of consolidation)
New included: ―Companies ― 、Excluded: 1 Company (National Ryutsu Sangyo Co.,Ltd)： None(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： None3) Changes in accounting-based estimates： None(3) Numbers of outstanding shares (common stock)1) Number of shares outstanding as of the end of theperiod (including treasury shares)
2) Number of treasury shares as of the end of the period
3) Average number of shares issued during the period

As of June 30th, 2021

21,579,665 As of June 30th, 2020

20,119,800

As of June 30th, 2021

271 As of June 30th, 2020

35

Nine months ended
June 30th, 2021

21,002,206

NinemonthsendedJune 30th, 2020

20,009,407

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 above full year consolidated financial forecast includes expectations based on future premise, perspective, and plan asof the day this document is published. These statements about future expectation are based on our company’s currently
available information and rational assumptions, not indicate the achievement that we commit to achieve. The forecast may
differ greatly from financial results due to various factors in the future, such as changes in economic situation, changes inclient needs and user preference, competition, changes in laws and regulations, and changes in exchange rates.

―2―

○ Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance …..……………………………4(1) Qualitative Information on Quarterly Consolidated Financial Performance .………………………………4(2) Explanation of Financial Position……………………………………………………………………………6(3) Explanation of Consolidated Forecast and Other Forward-looking Statements..……………………………7
2. Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial
Statements……………………………………………………………..………………….………………………8(1) Condensed Consolidated Statement of Financial Position……………………………………………………8(2) Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive
Income…………………………………………………………………………….………………………………10(3) Condensed Consolidated Statement of Changes in Equity……………………………………………………14(4) Condensed Consolidated Statement of Cash Flows…..………………………………………………………15(5) Notes to Condensed Consolidated Financial Statements..……………………………………………………17
Important events on going concern assumptions ……………………………………………………………17
Changes in accounting policies ..……………………………………………………………………………17
Segment information, etc.……………………………………………………………………………………18
Important subsequent events …………………………………………………………………………………22―3―

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations

Nine months ended
June 30th, 2020

Nine months ended
June 30th, 2021

Differences(Unit: Million yen)
Percentage
difference (%)

Consolidated Results of Operations
Net sales

17,90814,198△3,710△20.7

Operating income (Loss)△1,882

3,071

4,953

-

Profit before income taxes (Loss)△2,016

3,018

5,034

-

Profit attributable to owners of parent (Loss)△1,167

2,206

3,373

-

(Note) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’sbusiness is classified as a discontinued business. Therefore, net sales, operating income, and profit before income represent the amountof continuing business excluding discontinued business.
Due to the spread of COVID-19 (Novel COVID-19 virus), the Japanese economy in this period has become unpredictable because
the economic activities have been slowing down, the worldwide travel demand is sluggish caused by measures such as overseas travel
restriction or prohibition or lockdown in many countries. We are now closely observing the changes of the pandemic as well as future
market trends.
Under this circumstance, our company has been working on various measures, as well as cost down methods, as a link ofrestructuring and Group’s business portfolio diversification towards the “Restart” of AirTrip Group. Because the results are getting
well, the existing businesses except for Overseas Travel business, are all growing very well. In addition, the healthcare business, which
was newly started in the current fiscal year, was generally growing because it was able to capture new demand under Covid 19 crisis
such as PCR tests.
Under these circumstances, the Group's Net Sales for nine months ended June 31 s, 2021 reached 14,198 million yen, operating
income gained 30.71 million yen, income before income taxes achieved 3,018 million yen, and quarterly income
attributable to owners of the parent company was 2,206 million yen.
(2) Overview of Segment Business
Online Travel Business(Unit: Million yen)
Nine months ended
June 30th ,2020

Nine months ended
June 30th ,2021

Differences

Percentage
difference (%)

Net Sales

15,894

12,725△3,169△19.9

Segment profit or loss

△1,025

2,160

3,185

-

(Note) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’sbusiness is classified as a discontinued business. Therefore, net sales, segment profit represent the amount of continuing businessexcluding discontinued business.
1. AirTrip Online Travel Business
Since our founding, as a company specialized in online travel, we have been providing convenient services to customers. We aredeveloping the following services centered on our 3 strengths: “Buying Power”, “Various sales channel”, “System Development
Ability”.
(1) BtoC services (Directly managed by our company)
We have achieved strong competitiveness by handling the largest volume of domestic airline tickets of the and making alliances―4―with the airlines and East Japan Railway Company. We are operating "AirTrip", a website where you can easily compare and reserve
domestic and overseas travel products. We are even more focusing on making the website easier to use and providing our customers
the best travel options.
(2) BtoBtoC services (Travel Contents OEM Provision)
We provide domestic airline tickets / travel, overseas airline tickets / hotel to other companies' mass media as travel conte nt. We
have increased the content lineup and helped improving media users’ customer satisfaction.
(3) Business travel management (BTM)"AirTrip BTM" arranges tickets for daily business trips and develops an efficient management business system. This system is now
free for any company with needs of business trip. Direct cost + indirect has been reduced.
2. Inbound Travel Agency / Wi-Fi Rental BusinessWe are quickly developing the know-how accumulated in the AirTrip Online Travel Business as a service for foreigners’ visitors inJapan and a service for private lodging management companies.
(1) Wi-Fi rental for foreign visitors in Japan
Inbound Platform Corp., a subsidiary of AirTrip, develops Wi-Fi router rental service for foreign visitors in Japan. With over
200,000 rentals, we have established a brand with many years of trust and good review. In addition to renting camper vans, we areplanning to expand services to meet inbound demand.
(2) Dynamic package for foreign visitors in JapanFor the increasing number of individual tourists from Southeast Asia, we will strengthen our support for each country's language. At
first, we prepare information about hotels and inns in Japan in Thai language, and provide them on the "Dynamic Package forforeigners’ first visit to Japan" sold by JALPAK Co., Ltd. We are also improving sales promotion environment for other countries’
visitors to Japan.
(3) One-stop service for private lodging hosts
To utilize vacant houses, which are currently increasing year by year in Japan, "AirTrip stay Co., Ltd." is proposing the operationof rooms in accordance with the Housing Accommodation Business Law. Among the increasing number of foreign visitors to Japan,
we have become Japan's first official partner with "Airbnb"; the app is used by 1 in 5 people. We provide one-stop support fromproperty registration to property management, and we are planning to expand the service.
3. Media BusinessIn collaboration with MagMag Co., Ltd., one of our subsidiaries with the slogan "To those who want to know, To those who want totell”, we have developed a channel to collect content from creators from all over the world and deliver it to those who feel that
information valuable. You can subscribe on article basis with “mine”, including "Magmag!", a free and paid e-mail newsletter
distribution service. We also operate WEB media "MAG2 NEWS", "MONEY VOICE", "TRiP EDiTOR", and "by them" which candiscover contents and deliver them to many people who want to know.
4. Healthcare BusinessWe connect medical institutions and customers, build a smooth implementation system for various tests such as PCR tests, andprovide medical services compatible with the COVID-19 period.
Making a comprehensive approach in the fields of "travel / business trip" x "medical care", we are now able to provide testing methods
that suitable with customers’ situation. We have succeeded in capturing demand for PCR tests, etc. in the healthcare business.
Under these circumstances, segment Net Sales of the online travel business reached 12,725 million yen, and segment
income achieved 2,160 million yen for 9 months ended June 30th ,2021.

―5―

IT Off-shore Development Business(Unit: Million yen)
Nine months ended Nine months ended
June 30th, 2020
June 30th, 2021
Net Sales

Percentage
difference (%)

Differences

1,461

1,088

△373

△25.5

76

602

526

692.1

Segment profit or loss

In the IT Offshore Development Business segment, the Group offers lab-type facility development services to customers consisting
mainly of e-commerce operators, web solution providers, and game and system developers in Ho Chi Minh, Hanoi, and Da Nang in
Vietnam.
The Company’s lab-type facility development model is distinctive in that a team is formed with new dedicated staff members hired foreach customer. The model also enables customers to confirm the state of lab-type facility development on demand.
As a result of the factors stated above, IT offshore development business segment’s Net Sales gained 1,088 million yen, and segment
profit reached 602 million yen for 9 months ended June 30th, 2021.
Investment Business(Unit: Million yen)
Nine months ended Nine months ended
June 30th, 2020
June 30th, 2021

Percentage
difference (%)

Differences

Net Sales

553

382

△171

△30.9

Segment Profit

△79

908

987

-

In the Investment Business segment, the Group emphasizes synergies with the existing businesses and expands service lines throughaggressive M&A and capital alliances. The Group is pursuing investment in growing companies to improve profitability.
In the current fiscal year, we have expanded the number of investees to 66 companies.
As a result, investment business segment’s Net Sales reached 382 million yen, and segment profit reached 908 million yen for ninemonths ended June 30th, 2021.

(2) Explanation of Financial Position(Asset)Total assets decreased 389 million yen from the end of the previous fiscal year to 21,515 million yen at the end of the third quarter.
This result was mainly due to a decrease of 996 million yen in Notes and accounts receivable – trade and other receivable, and 826
million yen in Right-of-use assets, while Investments accounted for using the equity method gained 558 million yen and Other
Financial Assets and Other Liabilities gained 905 million yen.
(Liabilities)
Liabilities decreased 4,711 million yen from the end of the previous fiscal year to 14,690 million yen at the end of the thir d quarter
under review. This result primarily reflected decrease of 2,938 million yen in interest-bearing liabilities and 1,022 million yen in
Operating payables and other operating payables.
(Capital)
Net assets increased 4,322 million yen from the end of the previous fiscal year to 6,860 million yen at the end of the third quarter
under review. This result was mainly due to the decrease of 204 million yen in dividends of surplus from the first quarter consolidated
accounting period, while there is increase in retained earnings related to profit in the third quarter consolidated cumulative period andthe use of 1,466 million yen of convertible bond.

―6―

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There is no change in Consolidated Financial Results compared to the forecast result in "Notice Concerning Revision of
Earnings Forecast" published on May 31st, 2021. Every change (if any) shall be promptly updated.

―7―2. Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial
Statements(1) Condensed Consolidated Statement of Financial Position(Unit: Million yen)
FY 9/20(As of Sep.30th, 2020)

Third Quarter of FY 9/21
(As of Jun. 30th, 2021)

AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable –trade and other receivables
Other financial assets

7,042

7,375

2,364

1,397

4,359

5,265

Inventories

435

293

Other current assets

821

595

Total current assets

15,023

14,928480

434

Right-of-use assets

3,156

2,330

Goodwill

1,172

1,149

Intangible assets
Investments accounted for using theequity method
Other financial assets

1,091

1,029

-

558

970

876

Non-current assets
Property, plant and equipment

Other non-current assets

34

35

Deferred tax assets

10

208

6,916

6,622

21,94021,551

2,646

1,623

6,185

5,550

Lease liabilities

416

365

Other financial liabilities

251

173

Accrued income taxes

132

575

Other current liabilities

1,858

1,397

Total current liabilities

11,4909,685Interest-bearing debt

4,842

2,540

Lease liabilities

2,873

2,109

Other financial liabilities

25

21

Provisions

83

56

Deferred tax liabilities

78

267

Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating payables and otheroperating payables
Interest-bearing debt

Non-current liabilities

Other non-current liabilities

7

9

Total non-current liabilities

7,911

5,005

19,402

14,690Capital stock

3,138

830

Capital surplus

4,887

1,250

Retained earnings△6,135

3,731

△0

△0

Total liabilities
EquityTreasury shares―8―Other items of equity
Total equity attributable to owners ofparent company
Non-controlling interests

92

88

1,983

5,900

555

960

Total equity

2,538

6,860

21,94021,551

Total liabilities and equity―9―(2) Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive
IncomeCondensed Consolidated Statement of Income
For the Nine-month Period(Unit: Million yen)
Nine months ended June 30th, 2020 Nine months ended June 30th, 2021
(Oct. 1st, 2019 – Jun. 30th 2020
(Oct. 1st, 2020 – Jun. 30th, 2021
Continuing BusinessNet sales

17,90814,198

Sales Cost

△10,928△8,537

6,980

5,660

△7,414△3,924

△564

595
613

-

12

239

231

△1,122△118△1,882

3,071

6

59

△140

△112

△2,016102△579△1,913

2,438

698

-

△1,215

2,438

Profit attributable to (Loss)
Owners of parent company△1,1672,206

Non-controlling interests

△48

232

Profit (Loss)△1,215

2,438

Profit per share
Profit per share(Loss) (Yen)Continuing Business△58.36105.03△93.25105.03

34.88-△58.36102.47△93.2534.88

102.47-Gross profit
Selling, general and administrative
expenseProfit from loss of control subsidiaries
Investment Gain/Loss (Loss)
Investment by equity method Gain/Loss(Loss)
Other income
Other expenses
Operating income (Loss)
Finance income
Finance costs
Profit before income taxes (Loss)
Corporate income tax
Quarterly income from continuing business(Loss)
Discontinued Business
Quarterly income from discontinued
businesses
Profit (Loss)

Discontinued Business
Fully diluted profit (Loss) per share(Yen)
Continuing Business
Discontinued Business

―10―

3,018

For the Third Quarter Period(Unit: Million Yen)
Note

Third Quarter of FY 9/20
(April 1st, 2020 – June 30th, 2020

Third Quarter of FY 9/21
(April 1st, 2021 – June 30th, 2021

Continuing BusinessNet sales

3,166

2,995

Sales costs△1,888△1,190Gross profit

1,278

1,804

△1,534△1,279

△293

448

-

12

55

156

Selling, general and administrative expense
Profit from loss of control subsidiaries
Investment Gain/Loss (Loss)
Investment by equity methods Gain/Loss(Loss)
Other income
Other expenses
Operating income (Loss)
Finance income
Finance costs
Profit before income taxes (Loss)
Corporate income tax
Quarterly income from Continuing Business(Loss)
Discontinued Business
Quarterly income from Discontinued Business

△55

△73

△549

1,069

△3

26

△36
△590
113

△32
1,063

△477

973

△89

40

-

△436

973

Owners of parent company

△426

919

Non-controlling interests

△9

53

△436

973

△21.2042.94△22.64

42.94

1.44

-

△21.2041.70△22.64
1.44

41.70

Profit (Loss)
Profit attributable to (Loss)

Profit (Loss)
Profit per share
Profit per share(Loss) (Yen)Continuing Business
Discontinued Business
Fully diluted profit per share(Loss) (Yen)Continuing Business
Discontinued Business

―11―

-

Condensed Consolidated Statement of Comprehensive Income
For the Nine-month Period(Unit: Million Yen)
Nine months ended June 30th, 2020 Nine months ended June 30th, 2021
(Oct. 1st, 2019 – Jun. 30th, 2020) (Oct. 1st, 2020 – Jun. 30th, 2021)△1,215

2,438

△8

△15

△0

-

△8

△15

△8

△15

△1,2242,423

Owners of parent company△1,172

2,198

Non-controlling interests

△52

225

Profit (Loss)
Other comprehensive income (after tax)
Items that may be reclassified as profit or loss
Exchange
Differencesofforeign
operations.
Cash flow hedge
Total of items that may be reclassified as
profit or loss
Total of other comprehensive income (after tax)
Comprehensive income

Comprehensive income attributable to―12―For the Third Quarter Period(Unit: Million Yen)
Third Quarter of FY 9/20
(Apr. 1st, 2020 – Jun. 30th, 2020)

Third Quarter of FY 9/21
(Apr. 1st, 2021 – Jun. 30th, 2021 )

△436

973

Items that may be reclassified as profit or loss
Exchange
Differencesofforeign
operations.
Cash flow hedge

3

6

-

-

Total of items that may be reclassified as
profit or loss

3

6

Total of other comprehensive income (after tax)

3

6

Comprehensive income

△432

979

Comprehensive income attributable to
Owners of parent company

△424

922

△8

56

Profit (Loss)
Other comprehensive income (after tax)

Non-controlling interests―13―(3) Condensed Consolidated Statement of Changes in Equity
Nine Months ended June 30th, 2020 (October 1st, 2019 – June 30th, 2020)(Unit: Million Yen)
Equity attributable to owners of parent company
Capital stock Capital surplus
As of October 1st, 2019

Retainedearnings

Other items ofequityTreasuryshares

Total

Noncontrollinginterests

Total equity

2,922

4,175

2,598

19

△0

9,716

382

10,099

-

-

△34

-

-

△34

△18

△52

2,922

4,175

2,564

19

△0

9,682

363

10,046

Profit (Loss)--△1,167--△1,167△48△1,215

Other comprehensive
income

-

-

-

△4

-

△4

△3

△8

Total comprehensive income--△1,167△4-△1,172△52△1,224

Dividends of surplus

-

△198

-

-

-

△198

-

△198

Issuance of new shares

13

13

-

-

-

26

-

26

-

510

-

-

-

510

-

510

-

△22

△3

13

-

△12

24

11

Adjustment for changes inaccounting policies
Balance after retrospective
restatement

Increase (decrease) by
share exchanges
Increase (decrease) throughtransfers and other changes
Total transactions with owners
As of June 30th, 2020

13

330

△3

13

-

326

24

351

2,936

4,479

1,392

28

△0

8,836

336

9,173

Nine Months ended June 30th, 2021 (October 1st, 2020 – June 30th, 2021)(Unit: Million Yen)
Equity attributable to owners of parent company
Capital stock Capital surplus
As of October 1st, 2020

Retainedearnings

Other items ofequityTreasuryshares92△0Noncontrollinginterests

Total equity

1,983

555

2,538

Total

3,138

4,887

△6,135

Profit (Loss)

-

-

2,206

-

-

2,206

232

2,438

Other comprehensive income

-

-

-

△7

-

△7

△7

△15

Total comprehensive income

-

-

2,206

△7

-

2,198

225

2,423

Dividends of surplus

-

△204

-

-

-

△204

-

△204

Issuance of new shares

954

954

-

-

-

1,908

-

1,908

△3,262

3,262

-

-

-

-

-

-

-

△7,656

7,656

-

-

-

-

-

-

4

-

-

-

4

174

179

-

2

4

4

△0

10

5

16

△2,308△3,637

7,660

4

△0

1,719

179

1,899

830

1,250

3,731

88

△0

5,900

960

6,860

Transfer to capital surplus
from capital stock
Transfer to earned surplus
from capital surplus
Changes in owner’s equity inunder-control subsidiaries
Increase (decrease) throughtransfers and other changes
Total transactions with ownersth

As of June 30 , 2021―14―

(4) Condensed Consolidated Statement of Cash Flows(Unit: Million Yen)
Nine Months ended Jun. 30th, 2020
(Oct. 1st, 2019 – Jun. 30th, 2020)

Nine Months ended Jun. 30th, 2021
(Oct. 1st, 2020 – Jun. 30th, 2021)△1,269
1,092
568
△755
1,044

3,018
659
△613
-

1,313

341

108

△32

△2,299
160
△187

△437
126
19

△315

△291

352
△187
6
△143
△239
△563

15
2,272
2
△108
△48
2,118

Purchase of investment securities

△111

△208

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Payments for lease deposits
Collection of lease deposits
Proceeds from withdrawal of time deposits
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries resulting inchange in scope of consolidation

△191

△157

73

65

△554
66
52

△228
△7
19
-

553

-

△233

-

Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation

157-

Payments for sales of shares of subsidiaries
resulting in change in scope of consolidation

-

△310

Payments for transfer of business
OthersNet cash provided by (used in) investing activities

△150
△25
△361

△12
△838

△333
△1,45126△1,316814△1,050
883

-

179

△367
△197
△5
△2,328△313△203
0△1,006

Cash flows from operating activities
Profit (Loss) before tax
Depreciation and amortization expense
Investment Gain/Loss
Negative goodwill
Profit from loss of control subsidiaries
Impairment losses
Decrease (Increase) in trade and other receivables
Decrease (Increase) in inventories
Increase (decrease) in trade and other payables
Decrease (increase) in advance payments – trade)
Decrease (increase) in guarantee deposits
Decrease (increase) in investment securities for
sale
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

△595
62

Cash flows from investing activities

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 common shares
Proceeds from share issuance to non-controllingshareholders
Repayments of lease obligations
Dividends paid to owners of the parent company
OthersNet cash provided by (used in) financing activities―15―Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

060△3,253

332

Cash and cash equivalents at beginning of period

8,997

7,042

Cash and cash equivalents at end of period

5,744

7,375

―16―

(5) Notes to Condensed Consolidated Financial Statements(Notes on going concern assumptions)Not applicable.
(Changes in 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 the first
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, 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 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 and low
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 non-cancellable 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 and impairment
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 to depreciate 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-of
use 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 also remeasures the carrying amount to reflect any fluctuation of lease payments or lease modifications or to reflect revised insubstance fixed lease payments.
The Group expenses lease payments related to short-term leases and low value leases by the straight-line method.

―17―

Accounting on transition
On applying IFRS 16, the Group applies the practical expedient that does not require it to reassess whether existing
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 the practical
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 the leaseasset and lease liability under IAS 17 immediately before the date of initial application.
(3) Impact on the condensed quarterly consolidated financial statements
On application of IFRS 16, in the condensed quarterly consolidated statements of financial position at the beginning of theperiod, the Group additionally recognized right-of-use assets of 4,819 million yen and lease liabilities of 4,871 million yen
and recognized decreased of 34 million yen in retained earnings and 18 million yen in non-controlling interests.
The weighted average of the lessee’s incremental borrowing rates applied to lease liabilities recognized in thecondensed quarterly consolidated statements of financial position as of the date of initial application is 0.7% to 4.8%.
(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 to periodical 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 andengineers in Asia. With the Online Travel Agency Business, IT Offshore Development Business and Investment Businessas its three mainstay businesses, the Group classifies these businesses, with their highly unique business models, as its
main reportable business segments and draws up and determine Group strategies accordingly.
The businesses and main products belonging to each reportable segment are as follows:
Online Travel Agency Business: AirTrip Online Travel Business, Japan Inbound Travel
Business/ Wi-Fi Rental Business, Media Business, Healthcare
Business.

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

Investment Business: Investment in growing companies and turnarounds(2) Calculation method of segment income (loss) and segment performance―18―

The accounting process for the reportable business segments is the same as that used for the preparation of the condensed
consolidated financial statements.
(3) Information about segment income (loss) and segment performance
Nine months ended June 30th, 2020 (Oct. 1st, 2019 – June. 30th, 2020)(Unit: Million Yen)
Reportable segments
OnlineTravelAgencyBusiness

IT Offshore
Development
Business

Investment
Business

Other(Note 1)

Total

Total

Adjustments Consolidated(Note 2)
Total

External sales revenue

15,894

1,461

553

17,9080

17,908-17,908Intersegment revenue

-

585

-

585

-

585

△585

-

Total sales revenue

15,894

2,046

553

18,4930

18,493△585

17,908Segment profits (losses)(Note 3)

△1,02576△79△1,028△0△1,028△854△1,882Financial income

6

Financial expenses△140

Income before income
taxes△2,016(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising rev enue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment and in tersegment
transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated statement of income.
(Note 4) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’s business isclassified as a discontinued business. The above table shows the amount of continuing business excluding discontinued business.

Nine months ended June 30th, 2020 (Oct. 1st, 2019 – June. 30th, 2020)(Unit: Million Yen)
Reportable segments
Other(Note 1)

Adjustments Consolidated(Note 2)
Total

OnlineTravelAgencyBusiness

IT Offshore
Development
Business

Investment
Business

External sales revenue

12,725

1,088

382

14,196

1

14,198-14,198Intersegment revenue

-

147

-

147

-

147

△147

-

Total sales revenue

12,725

1,235

382

14,344

1

14,345△147

14,198Segment profits (losses)(Note 3)

2,160

602

908

3,672

△0

3,672

△601

3,071

Total

Total

Financial income

59

Financial expenses△112

Income before income
taxes

3,018

(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising rev enue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment and intersegment
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―Third Quarter ended June 30th, 2020 (April 1st, 2020 – June 30th, 2020)(Unit: Million Yen)
Reportable segments
AirTrip
IT Off-shore
OnlineDevelopment
TravelBusiness
Business

Investment
Business

Total

Other
(Note 1)

Total

Adjustments Consolidated(Note 2)
Total

External sales revenue

2,240

444

481

3,166

0

3,166

-

3,166

Intersegment revenue

-

160

-

160

-

160

△160

-

Total sales revenue

2,240

605

481

3,327

0

3,327

△160

3,166

Segment profits (losses)(Note 3)

△551

22

164

△365

△0

△365

△184

△549

Financial income

0

Financial expenses△41

Income before income
taxes

△590

(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising rev enue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment and intersegment
transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated statement of income.
(Note 4) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’s business isclassified as a discontinued business. The above table shows the amount of continuing business excluding discontinued business.

―20―

Third Quarter ended June 30th, 2021 (April 1st, 2021 – June 30th, 2021)(Unit: Million Yen)
Reportable segments
Other(Note 1)

Adjustments Consolidated(Note 2)
Total

OnlineTravelAgencyBusiness

IT Offshore
Development
Business

Investment
Business

External sales revenue

2,794

162

37

2,994

1

2,995

-

2,995

Intersegment revenue

-

5

-

5

-

5

△5

-

2,794

167

37

2,999

1

3,000

△5

2,995

756

△1

473

1,228

△0

1,228

△159

1,069

Total sales revenue
Segment profits (losses)(Note 3)

Total

Total

Financial income

26

Financial expenses△32

Income before income
taxes

1,063

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

―21―

(Important subsequent event)Not applicable―22―