FY 2023 (Jul 2022-Jun 2023) 2Q

Financial Result
Copyright © 2023 Temairazu, Inc. All rights reserved.

Contents

Summary of the Results for FY2023 2Q

p.2

Business report of FY2023 2Q
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

Summary of the Result for FY 2023 2Q

１

1Outline of the financial results

Net Sales： 10.7% up YoY

Operating Income ：15.0% up YoY

FY2023 2QResultsProfitmargin onsales

Result of sameperiod last year

Difference(amount)

Difference(percentage)

Net Sales

JPY 889,373 K－

JPY 803,767 K

JPY 85,606 K

10.7%

Operating
IncomeJPY 653,142 K

73.4%

JPY 568,108 K

JPY 85,033 K

15.0%

Ordinary
IncomeJPY 654,214 K

73.6%

JPY 572,504 K

JPY 81,709 K

14.3%

Net Income

JPY 425,336 K

47.8%

JPY 382,079 K

JPY 43,257 K

11.3%

Net earnings
per share

JPY 65.65－

JPY 58.97

Copyright © 2023 Temairazu, Inc. All rights reserved.

－－3

１2

Summary of the Result for FY 2023 2Q

Sales composition ratio

2.9%

5.1%

3.8%

3.2%

2.2%

1.7%

1.9%

1.6%

1.7%

1.9%

2.1%

2.1%

97.1%

94.9%

96.2%

96.8%

97.8%

98.3%

98.1%

98.4%

98.3%

98.1%

97.9%

97.9%

Hikaku.com
Temairazu

FY2020 3Q FY2020 4Q FY2021 1Q FY2021 2Q FY2021 3Q FY2021 4Q FY2022 1Q FY2022 2Q FY2022 3Q FY2022 4Q FY2023 1Q FY2023 2Q

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１

Summary of the Result for FY 2023 2Q

3Sales and profit per segment

In Temairazu segment, sales and profits increased and profit margin was 81.9%
In Hikaku.com segment, sales and profits increased and profit margin was 70.0%

Segment SalesTemairazu

JPY 871,109 K

Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 713,716 K(JPY 641,816 K)

81.9％(73.7％)
70.0％(62.0％)

Hikaku.com

JPY 18,263 K

JPY 12,792 K(JPY 11,325 K)

Adjustment--JPY 73,367 K-

JPY 889,373 K

JPY 653,142 K

73.4％

TOTAL

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１

Summary of the Result for FY 2023 2Q

4 Sales trend of Application Service segment(Temairazu)
Unit: JPY 1,000

Jul – Dec 2020] Go To Travel Campaign(Tokyo included from Oct 2020)

YoY: +10.1% QoQ : +4.9%+5% compared to FY2020 2Q(before COVIT-19)

Apr – May 2020: The 1st announcement of State of Emergency
450000Dec 2019: The 1st case of COVIT-19 reported

400000350000300000250000200000

Copyright © 2023 Temairazu, Inc. All rights reserved.

6１5

Summary of the Result for FY 2023 2Q

Breakdown of sales cost and SG&A
Including cost for market change(about JPY 15 million.)

Sales Cost

Advertising Cost

Labor Cost

Commissions

OthersUnit : JPY 1,000

30,5093,792
30,60531,16730,21930,12731,92230,70933,42035,076

31,232
48,215

2,333

1,749

3,306

1,391

1,807

789

442
3,045

1,735
47,03248,00149,676

51,29551,25543,67848,95540,49036,96936,5052,038
845

40,84945,692

21,70818,73015,381

17,509FY2023 1Q

FY2023 2Q

44,46635,755

17,23023,284FY2020 3Q

20,702

16,891

13,61015,59818,540

FY2020 4Q

FY2021 1Q

FY2021 2Q

17,435

14,911
FY2021 3Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

16,854

20,223

17,794

17,208
16,96818,275

15,59817,187

FY2021 4Q

FY2022 1Q

FY2022 2Q

20,62911,610
FY2022 3Q

FY2022 4Q

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１6

Summary of the Result for FY 2023 2Q

Progress rate against full-year forecast

FY2023 2Q

FY2023 Forecast

Progress Rate

Net Sales

JPY 889,373 K

JPY 1,710,759 K

52.0%

Operating Income

JPY 653,142 K

JPY 1,134,682 K

57.6%

Ordinary Income

JPY 654,214 K

JPY 1,135,985 K

57.6%

Net IncomeJPY 425,336 K

JPY 749,936 K

56.7%

JPY 65.65

JPY 115.74

Net earnings
per share

Copyright © 2023 Temairazu, Inc. All rights reserved.

-8

１

Summary of the Result for FY 2023 2Q

7Balance Sheet
End of FY2022

End of FY2023 2Q

JPY 5,047,336 K

JPY 5,398,076 K

Other current
assetsJPY 275,309 K

JPY 260,675 K

Fixed assets

JPY 55,674 K

JPY 66,034 K

Deferred tax assets

Total Assets

JPY 5,378,320 K

JPY 5,761,583 K-

JPY 289,120 K

JPY 341,032 K

Income taxes
payableJPY 32,674 K

JPY 5,420,551 K

Recording of net
incomeJPY 425,336 K

Dividend of surplus- JPY 97,184 K

CashLiabilities

Capital stock
Total liabilities /net assets

Equity ratio

JPY 5,089,200 K

Key factors of change
JPY 350,739 K

JPY 1,036 K

JPY 5,378,320 K

JPY 5,761,583 K-94.6%

94.1%-Copyright © 2023 Temairazu, Inc. All rights reserved.

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2

Business report andfuture business development

Copyright © 2023 Temairazu, Inc. All rights reserved.

10

2

Business report

1

Business Summary of each segment
Temairazu segment

Development & provision ofchannel manger “TEMAIRAZU”
seriesHikaku.com segment

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2Business report

2-1 Temairazu segment (Application service segment)
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 A

bookingbooking 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

Accessible fromanywhere with internet
connection

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.

Access Temairazu from the any
places where internet
connection is available. Sameaccount can be used fromdifferent computers as data isstored in dedicated server.
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2

Business report

2-2 Temairazu segment (Application service segment)
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. In
July 2016, advanced version “TEMAIRAZU YIELD” waslaunched. And in Mar 2020, new version “TEMAIRAZU
mini” 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 Temairazu segment(Application service segment)

Segment profit（after cost allocation）
YoY +13.8％

Unit: JPY 1,000

641,816(QoQ +4.9%)

Impact of COVIT-19
・Despite of occurrence of 8th wave of COVID-19
spread, no activities restriction was laid.
・Japan National Travel Support campaign andeasing of Entry Restrictions into Japan began onOctober 11, 2022

564,070⇒ Monthly variable income increased mainly due
to increased demand for travel
FY2022 2Q

FY2023 2Q

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14

２

Business report and future business development

2-4 Temairazu segment (Application service segment)
Measures to increase the direct bookings for properties◼ Supporting Google's Free Booking links
Accommodation properties using TEMAIRAZU in combination with a compatible booking
engine for their official website can automatically display the rates and availability of theirofficial website in real-time when users search for hotels on Google's various services. This canbe expected to increase the flow of visitors to the official website and increase the numberof direct bookings, leading to the acquisition of repeat customers and maximization ofrevenue.

Improving convenience and operational efficiency■”TEMANASHI NEXT” the booking engine offered as an optional function of TEMAIRAZU has
connected to “JTB Book&Pay” the Reservation and Settlement System offered by JTB
Business Innovators Corp.
■Renovated the User Interface of TEMAIRAZU

Updated with the design that even first-time users can operate the system intuitively,
improving user operability and visibility to enhance business efficiency.
Copyright © 2023 Temairazu, Inc. All rights reserved.

15

２Business report and future business development

2-5 Temairazu segment (Application service segment)

Impact of COVIT-19
Composition of Sales in Application Services Business:◼ Fixed Monthly Income (Basic monthly charges and option charges)◼ Monthly variable income (Communication charges according to the numberof reservations)
Impact：◼ Fixed Monthly Income→ Cancellations mainly of small-scale properties are still occurring but thenumber continue to decrease.
◼ Monthly variable income→ Increase of monthly variable income due to the recovery of theaccommodation demands.
Result in FY2023 2Q：■Fixed Monthly Income:

JPY 696 million

80.0%■Monthly variable Income :JPY 158 million

18.2%■Other Income :JPY 16 million

1.9%

Copyright © 2023 Temairazu, Inc. All rights reserved.

16２Business report and future business development

2-6 Future business development of Temairazu segment• Responding to recovering demand of accommodation both with ourproduct and customer support.
• Aiming for products that will contribute to further sales expansion andoperational efficiency, which will help secure the revenues ofaccommodation properties

Connecting with
with
Connecting
distribution channels
channels
distribution

Connectingwith
withvarious
variousConnecting
systems
systems

Strengtheningsalessales andandStrengthening
customer support
support forcesforces
customerStrengthening TEMAIRAZUTEMAIRAZUStrengthening
functionalities
functionalities

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17

２Business report and future business development

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

Segment profit（after cost allocation）
YoY +180.5%

11,325
Unit: JPY 1,000

4,037

FY2022 2Q

FY2023 2Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

■Continuous implementation of the following
measures・ Review of ads placement
・ Search Engine Optimization
・ User interface improvements・ Improving mobile usability■Although lower than peak demand for online
shopping due to staying at home decreased,sales increased YoY and also compared to2Q before corona outbreak.

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Company Profile
Trade Name

Temairazu, Inc.

Establishment

August 4, 2003

Account closing monthJune

Capital fund

JPY 717,041,935 (As of Dec 31, 2022)

Number of shares issued

6,479,834 (As of Dec 31, 2022)

Share trading unit

100（As of Dec 31, 2022）

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 LLC

Website“TEMAIRAZU”“Hikaku.com”

Copyright © 2023 Temairazu, Inc. All rights reserved.

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 thefinancial results of the 2nd quarter of fiscal year ending June 2023. In no way is

the information intended to solicit an investment in securities issued by theCompany. The information is prepared based on data as of the end of Dec 31,2022. Accordingly, the opinions or forecasts on this presentation are dependent
on the judgment of the Company at the time of the preparation, and do notguarantee nor pledge accuracy or integrity of the information. In addition,such opinions or forecasts may be changed without notice.

Copyright © 2023 Temairazu, Inc. All rights reserved.

20

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.