Supplementary Materials on Financial Results
First Quarter of FY03/2024

August 10, 2023

EKITAN&Co., Ltd.
TSE Growth: 3646
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Table of Contents
1Q of FY03/2024

Section 1

Financial results overview:
3Q of FY03/2024 (company-wide)

P3

Section 2 Financial results overview:
3Q of FY03/2024 (by segment)

P8

Section 3 Financial results overview & Performance forecasts:
FY03/2024

P20

Copyright© 駅探. All Rights Reserved2Section 1
1Q of FY03/2024
Financial results overview(company-wide)

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3

Highlights
1Q of FY03/2024

Higher revenues / Lower earnings
Net sales

EBITDA

Operating profit＋29.6%–82.9%－(+/– % YoY)

(mil. yen)

28
770

999

71
–42

12
2023
1Q

2024
1Q

2023
1Q

2024
1Q

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2023
1Q

2024
1Q
4

Highlights
1Q of FY03/2024

Higher revenues / Lower earnings(YoY)

Net sales

999 mil. yen+29.6％+228 mil. yen

FY2023770 mil. yen

EBITDA

12 mil. yen–82.9％–59 mil. yen

FY202371 mil. yen–42 mil. yen－–71 mil. yen

FY202328 mil. yen

Operating profit

Factors of higher revenues

Factors of lower revenues

Advertisement Platform Business: Proud Engine Inc.
Became a fully-consolidated subsidiary in Nov., 2022

Decreased sales of services for paid
subscribers

M&A/Incubation Business: EKITAN I&I

Continuously decreased paid subscribers affected bysuch as market environment including commoditization

Became a fully-consolidated subsidiary in Apr., 2023

Factors of decrease in Operating profit
Decrease in services for paid subscribers
Partly increased sales was not enough to cover decrease in net sales of services for paid subscribers which
provided high profit rate

Increased cost for BTOnline
Increased cost for renovating “BTOnline” (a service for arrangement of ticketless business trip)

Temporarily incurred costs in relation to establishment and share acquisition of EKITAN I&I
Copyright© 駅探. All Rights Reserved5Consolidated Profit and Loss Statement
1Q of FY03/2024

Consolidated Profit and Loss Statement(YoY)(mil. yen)

2023
１Q

ratio to
sales

2024
１Q

ratio to
sales

+/– %

+/–
amountNet sales

770

100.0%

999

100.0%+29.6%+228

Cost of sales

535

69.5%

725

72.6%

+35.5%+190

Gross profit

235

30.5%

273

27.4%

+16.3%+38

SG&A expenses

206

26.8%

316

31.6%

+52.9%+109

Operating profit

28

3.7%

– 42

– 4.3%– 249.9%– 71

Ordinary profit

30

3.9%

– 41

– 4.2%– 239.8%– 71

Net profit
attributable toowners of parent

24

3.2%

– 41

– 4.1%– 269.2%– 65

EBITDA

71

9.3%

12

1.2%

– 82.9%– 59

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6Consolidated Balance Sheet
1Q of FY03/2024

Consolidated Balance Sheet(YoY)(mil. yen)

Total current assets
Property, plantand equipment

2024
１Q

2023
１Q

2,295
67

+/–
amount

1,985

66

–310
0

Intangible assets

1,032

1,209

176

Investments andother assets

89

255

166

Total
non-current assets
Total assets

2023
１Q

(mil. yen)

2024
１Q

+/–
amountTotal current liabilities

407

616

208

Total non-current
liabilities

291

484

193

Total liabilities

698

1,100

401

Capital stock

291

291

-

Retained earnings

2,873

2,389

– 484

Treasury stock

– 673

– 595

77

Total shareholders’ equity

2,786

2,382

– 403

Total net assets

2,786

2,416

– 370

Total liabilities and net

3,485

3,516

31

1,189

1,531

341

3,485

3,516

31 assets

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7Section 2

1Q of FY03/2024
Financial results overview(by segment)

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8Proportions by segment
1Q of FY03/2024

Proportions of net sales arealmost the same for the three segments

Negative EBITDA in Advertisement Platform Business is offset by Mobility Support BusinessNet sales

EBITDA(1Q of FY2024)(1Q of FY2024)

26.4%
M&A/Incubation
Business

2.1%

37.2%
Mobility
SupportBusiness

Advertisement
Platform Business

M&A/Incubation
Business

97.9%
Mobility
SupportBusiness

36.4%* EBITDA in Advertisement Platform
Business is negative
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9

Mobility Support Business1Q of FY03/2024
全社

Lower revenues / Lower earnings(YoY)

Net sales

371 mil. yen–6.7％–26 mil. yen

FY2023398 mil. yen

EBITDA93 mil. yen–23.6％–28 mil. yen

FY2023122 mil. yen

Segment profit

80 mil. yen–25.5%–27 mil. yen

FY2023108 mil. yen(mil. yen)

Factor 1: Lower revenues / Lower earnings
This segment experienced downward trend
because of continuously decreasing number ofpaid subscribers due to commoditization ofTransfer Information service

398
371

122

80

93
2023
1Q

2024
1Q

Net sales

2023
1Q

Factor 2: Lower earnings

108

2024
1Q

EBITDA

2023
1Q

Additional cost was incurred for renovation of“BTOnline” (a service for arrangement of ticketlessbusiness trip) which had already carried out
during the previous consolidated FY

2024
1Q

Segment profit
Copyright© 駅探. All Rights Reserved10Advertisement Platform Business1Q of FY03/2024

Net sales slightly decreased,
EBITDA and Segment profit decreased(YoY)

Net sales

363 mil. yen–2.4％–8 mil. yen

FY2023372 mil. yen

EBITDA–14 mil. yen–154.4％–39 mil. yen

FY202325 mil. yen

Segment profit–49 mil. yenー–47 mil. yen

FY2023–2 mil. yen(mil. yen)

Factor 1: Higher revenues
Proud Engine Inc.
Newly joined to this segment since the last 3Q

25

372

Factor 2: Lower revenues / Lower earnings
-14

363

-2

-49

2023
1Q

2024
1Q

Net sales

2023
1Q

2024
1Q

EBITDA

2023
1Q

With respect to “Cirqua”, an advertisement service
operated by Cirqua, profitability status temporarily
improved thanks to operations based on new
criteria for posting advertisings in accordance withthe revised PMD Act, but increasingly severe
environment around this segment resulted inlower revenues

2024
1Q

Segments loss
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11M&A/Incubation Business1Q of FY03/2024
全社

New segment* YoY not applicable

Net sales

264 mil. yen――

FY2023―

EBITDA

8 mil. yen――

FY2023―

Segment profit

2 mil. yen――

FY2023―(mil. yen)

Background
This segment was newly added due to establishmentof EKITAN&Co., Ltd. on April 25, 2023
* No data is available on the previous FY for comparison,
figures are given only for the current 1Q

264

8
2023
1Q

2024
1Q

Net sales

2023
1Q

2024
1Q

EBITDA

2
2023
1Q

2024
1Q

Segment profit
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12Current progress in primary measures (1Q of FY2024)
Framework
Regional Marketing Platform Framework
Strategies

Measures

Progress【Media business】
・Facilitating the RMP framework- Enhancement of media (Ekitan PICKS, Ekitan LOCAL, and Ekitan
Odekake-Lab- Higher regional XX search ranking achieved by richer regional
information and contents- More revenues from Ad-net/affiliate advertising(By becoming a regionally powerful site attracting more users, visitors
to the media should be increased)

RMP
strategies*【Advertisement business】
・ Sales expansion by advertisement media
・ Expansion of Proud Engine and Cirqua (matching of advertisers andmedia)(Applying both companies’ own technologies relating to advertisement
and other elements to the RMP framework will lead to profitability
expansion)【Solutions business】
・ Development of solutions services in line with the RMP framework
For municipalities and railway companies- (services related to transfer information for corporations)
・ Providing services which contribute to regional revitalization- For municipalities and railway companies- Existing services (MaaS package, etc.)- Providing new solutions services

M&A/alliancestrategy

Faster promotion of M&A/Incubation Business・ Releasing articles like “XX from YY station” which weare good at・ Adding information about various events in eachregion・ Adding information about each spot

・ Demonstration experiments were started in order for
profitability expansion of Ekitan PICKS by making useof Ad-network system of Cirqua and SNS
advertisement operation of Proud Engine

・ Adopted as a “Co-creation Model Operational
Demonstration Project (2023)” sponsored by MLIT
- “Esashi MaaS” which is an earnings circularity model
aiming at maintaining and revitalizing regional public
transportation

・ EKITAN I&I Co., Ltd. was established(Apr. 28, 2023)* RMP (Regional Marketing Platform) strategy: To create new sources of earnings by using EKITAN’s business assets namely media
clients such as transfer information technologies and EKITAN.com. It is an effort to “connectbusiness entities and users around a regional axis”.
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13Media businessEkitanMy town as usual may be more convenient and interesting
Regional media which provide information useful for
housing/living around local information about outing and events

Adding information about
various events in each region

In conjunction with strengthening relationship with municipalities / railway
companies, reinforcement and enhancement of regional information are sought
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14Media businessEkitan Odekake-Lab

A website that gathers events informationand distributes regional information

Areas surrounding a station are analyzed using our own data and transfer information technologies
Regional information is provided, such as recommended events and outing spots

Releasing articles like “XX from YY station” which we are good at

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15Media business

Adding information about each spot
Featuring information about tourist spots
Information about amusement parks and themeparks nationwide is provided

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16Solutions businessTook part in demonstration experiments of “digital boarding tickets + service usage”
conducted by Tokyo Metro at every station of Marunouchi Line
PurposeTo make sales of tickets open and to realize external ticket sales by entities other than railway companies
Demonstration experiments to examine how “service usage + movement” are facilitated■Role of each participating company
Name■Diagram of service provision
Railway operator

Role overview

ticket info

Tokyo Metro

As a railway company to provide
experimental fields

Toshiba Infrastructure
Systems & Solutions

To provide digital boarding ticket system

EKITANTo provide, with via-at, UI for purchasingboarding tickets and substitute settlement
services

via-atTo provide services for co-working spaces

EKITAN&Co., Ltd.

TISS

Platform formaking salesof transport
tickets open

fare payment

Approve useof PF functionuser
Purchasing
websitepurchasetickets

fare payment*
Issuing tickets
via QR code

Authentication/managementof boarding/usage
attracting users andpromoting usage

Service operator■Overview of the demonstration experiments
PeriodApril 25 - June 25, 2023 * This period is subject to change.
Relevant stations: Marunouchi Line of Tokyo Metro (5 stations as shown below)
Shinjuku / Yotsuya 3-chome / Awaji-cho / Ochanomizu / Ikebukuro (east gate of central passage only)
Relevant services
via-at, Marunouchi Line
Eligible user
users of the above relevant services

This demonstration experiment will lead to enhancement of the following services of EKITAN
・Integration of Transfer Information site run by EKITAN with other contents sites
which support from sales to issuance of boarding tickets
・Obtaining new paid subscribers from contents additional to existing services
for paid subscribers of Transfer Information
・Adding functions of EKITAN’s own MaaS packages
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17Solutions business
Adopted as a “Co-creation Model Operational Demonstration Project (2023)” sponsored by MLIT
“Esashi MaaS” which is an earnings circularity model aiming at maintaining and revitalizing regional public transportation
We have participated in the final demonstration experiment so that it would become our actual business in 2024
■Key functions
1 On-demand car
reservation (phone/callcenter, LINE app) andmovement
2

Information about
stores/shopping-mall3

Distribution of
shopping coupons

4

Information aboutmunicipal events

5

Borrow/return books
from/to library① Assignment via mobile
devices (smartphone app
or automated phonesystem)E.g. Demand-Bus Assignment System

Reservation
done

AI Smart
Access Vehicle
System② Assignment
by telephone① Taxi company
Computes
optimum route■Operating period
Nov. 2023 - Feb. 2024
■Covered area

Esashi Town (almost all)Tablets placed at MaaS spots

Upon reservation, SAVS gives
route notification to drivers

reservation■Eligible user
Residents of Esashi Town ■This system increases demands for travel/purchase, and tries a revenue cycle model(operating area) andin which income of the business entity is returned for service operation
visitors from Okushiri■This is an attempt to increase convenience for residents such as introduction ofTown to Esashi Town

cashless payment with Esashi EZOCA card
Copyright© 駅探. All Rights Reserved18M&A/alliance strategy

Established EKITAN I&I Co., Ltd.
Joint venture established with ITL Holdings(a group company affiliated to Bold Investment which is a top shareholder of EKITAN)
to strengthen investment/incubation business×

fellow subsidiary of Bold Investment
which is a top shareholder of EKITAN

Purposes
Purpose 1: Accelerating M&A/alliance strategy
By making use of ITLHD’s own insights into and know-howsof investment/incubation

Purpose 2: Measures to convert affiliatedcompanies to subsidiaries (under a joint venture)for expanded profitability
By ensuring stable profitability of Bold and its affiliatedcompanies, and convert several companies which would realize
synergies with the Group to subsidiaries of the joint venture,
improvement in the Group’s profitability should be sought.
(Stage 1) Three companies of GC, CYB and ITJ became
subsidiaries of the joint venture (sub-subsidiaries of EKITAN)

These companies have abundant track records and know-hows ofdispatching engineers to multiple fields, system-engineering, andsoftware systems development

Corporate profile of EKITAN I&I Co., Ltd.
Name:

EKITAN I&I Co., Ltd.

Address:

5-4, Kojimachi, Chiyoda Ward,Tokyo

Established:
Business activities:

April 25, 2023
Overall management control
over the Group’s subsidiaries,
etc. and any other contingent
business operations

Capital stock:

160 mil. yen

Fiscal year end:

March 31

Capital contribution ratio: 90.0% by EKITAN
10.0% by ITL Holdings

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19Section３
Performance forecasts
FY03/2024

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20Performance forecasts (FY03/2024)

Higher revenues / Lower earnings (forecasts)
Advertisement Platform BusinessFor growth of the next mainstay business in FY03/2025 and onward, various measures and investment should be carried out sothat business foundation could be built up

Mobility Support Business
There will be temporary cost increase influenced by renovation of “BTOnline” (a service for arrangement of ticketless business trip)

M&A/Incubation Business
There will be some amount of temporary cost associated with establishment and share acquisition of EKITAN I&I Co., Ltd., but thiscompany is projected to contribute to the Group’s overall earnings

Net sales＋43.9%EBITDA＋6.7%

Operating profit–37.3%(+/- % YoY)

(mil. yen)

4,612
3,206

296

316
105

FY03
2023

FY03
2024

FY03
2023

FY03
2024

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FY03
2023

65
FY03
2024

21

~ From the Stations ~【Contact for IR】
EKITAN Co., Ltd. IR staff

These materials are intended only for providing information for reference concerning current business performance, and therefore investors are encouraged to make their
final decisions on investment or any other matters based on their own judgements.
Of course these materials have been created with extreme care as much as possible. However, the Company shall not assume any responsibility for their completeness.
In addition, the Company shall not assume any responsibility for any results and other matters concerning investment decided based on these materials.
Forecasts and plans presented in these materials have been created based on currently available information. Actual business performance to be achieved in the future
may differ from such forecasts and/or plans due to various factors including overall economic situations.
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