Supplementary Materials on Financial Results
Third Quarter of FY03/2024

February 08, 2024

EKITAN & Co., Ltd.
TSE Growth: 3646
Copyright© 駅探. All Rights Reserved

Table of Contents
FY03/2024, 1-3Q

Section 1

Financial results overview
1-3Q of FY03/2024 (company-wide)

P3

Section 2

Financial results overview
1-3Q of FY03/2024 (by segment)

P9

Section 3

RMP framework

P15

Section 4

About performance forecasts of FY03/2024

P19

Section 5

TopicsP21

Copyright© 駅探. All Rights Reserved2Section 1
Financial results overview
1-3Q of FY03/2024(company-wide)

Copyright© 駅探. All Rights Reserved

3

Highlights (transition from 2Q to 3Q)
FY03/2024, 1-3Q

Substantial recovery of business performance in 3Q
・Cirqua turned to black figure: Cost reduction and revenues from commercial materials of new genres contributed tosurplus in non-consolidated performance・Higher sales thanks to augmented personnel in Proud Engine Inc.
・Completion of renovation work of BTOnline since FY2023
・Reduction in depreciation by recording impairment loss

Operating profit(mil. yen)

Ordinary profit
59

58

–42

–31

1Q

2Q

3Q

–41

–29

1Q

2Q

Copyright© 駅探. All Rights Reserved

3Q
4Highlights
FY03/2024, 1-3Q

Higher revenues / Lower earnings
Net sales

EBITDA

Operating profit+28.3%–40.1%–125.2%(+/– % YoY)

(mil. yen)

3,044

60

200

2,373

119
–15
2023
1-3Q

2024
1-3Q

2023
1-3Q

2024
1-3Q

Copyright© 駅探. All Rights Reserved

2023
1-3Q

2024
1-3Q
5

Highlights (comparison with FY2023)
FY03/2024, 1-3Q

Higher revenues / Lower earnings(YoY)

Net sales

3,044 mil. yen+28.3％+671 mil. yen

FY2023

2,373 mil. yen

EBITDA

119 mil. yen–40.1％–80 mil. yen

FY2023200 mil. yen

Operating profit–15 mil. yen–125.2％–75 mil. yen

FY202360 mil. yen

Factors of higher revenues

Factors of lower revenues

M&A/Incubation Business: EKITAN I&I

Decrease in sales by Cirqua, Inc.

Became a consolidated subsidiary in Apr. 2023 and has contributed tohigher revenues in the current FY

Reduction in major commodities and major media

Advertisement Platform Business: Proud Engine Inc.
Became a fully-consolidated subsidiary in Nov. 2022 and has contributed tohigher revenues in the current FY

Decreased sales of services for paid subscribers
Continuously decreased paid subscribers affected by such as
market environment including commoditization

Other important points:
Recording extraordinary losses

Factors of decrease in Operating profit
Lower sales by Cirqua, Inc. resulting in lower profit
Increased cost for BTOnline

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

Decrease in services for paid subscribers
Temporarily incurred costs in relation to establishment
and share acquisition of EKITAN I&I

Cirqua, Inc.
Lower results than as planned due to trend of market shrinkage

Vertical media
Effects of revenues are still not as much as anticipated

Expenses for due diligence, company registration and others
Copyright© 駅探. All Rights Reserved

6Consolidated Profit and Loss Statement
FY03/2024, 1-3Q

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

2023
1-3Q

ratio to sales

2024
1-3Q

ratio to sales+/–%+/– amount

Net sales

2,373

100.0%

3,044

100.0%+28.3%+671

Cost of sales

1,674

70.6%

2,180

71.6%

+30.2%+506

Gross profit

698

29.4%

863

28.4%

+23.6%+164

SG&A expenses

638

26.9%

878

28.9%

+37.6%+240

Operating profit

60

2.5%

–15

N/A

–125.2%–75

Ordinary profit

58

2.5%

–11

N/A

–120.1%–70

Net profit
attributable toowners of parent

51

2.2%

–743

N/A

–1539.9%–795

EBITDA

200

8.4%

119

3.9%

–40.1%–80

Copyright© 駅探. All Rights Reserved

7

Consolidated Balance Sheet
FY03/2024, 3Q

Consolidated Balance Sheet(mil. yen)

Total current assets

Property, plant and equipment

Intangible assets

2023
4Q

2024
3Q

1,868

2,009

60

1,139

77
388

+/–
amount

+16
–751

83

202

+119

Total non-current assets

1,284

667

–616

3,152

2,677

–475

2024
3Q

+/–
amountTotal current liabilities

438

641

+203

Total non-current liabilities

226

346

+119

664

988

+323

Capital stock

291

291

0

Capital surplus

293

306

+13

Retained earnings

2,498

1,686

–811

Treasury stock

–595

–598

–2

Total shareholders’ equity

2,487

1,686

–801

Total net assets

2,487

1,689

–798

Total liabilities and net assets

3,152

2,677

–475

+141

Investments and other assets

Total assets(mil. yen)

2023
4Q

Total liabilities

Copyright© 駅探. All Rights Reserved8Section 2
Financial results overview
1-3Q of FY03/2024(by segment)

Copyright© 駅探. All Rights Reserved

9Proportions by segment
FY03/2024, 1-3Q

Proportions of net sales are almost the same for the three segments
EBITDA in Advertisement Platform Business which had been negative in 2Q recovered to positive

Net sales

EBITDA(FY2024, 1-3Q)(FY2024, 1-3Q)

Mobility Support Business

26.1%
M&A/Incubation
Business

36.1%
Mobility
SupportBusiness

Advertisement
Platform Business

37.8%

274 mil. yen

Advertisement Platform
Business

15 mil. yen
M&A・インキュ
ベーション事業
M&A/Incubation Business49 mil. yen
Corporate expenses
モビリティ
モビリティ
サポート事業–219 mil. yen

Total

119 mil. yen

Copyright© 駅探. All Rights Reserved

サポート事業10

Mobility Support Business
FY03/2024,全社
1-3Q

Lower revenues / Lower earnings(YoY)

Net sales

1,101 mil. yen–7.0％–82 mil. yen

FY2023

1,183 mil. yen

EBITDA274 mil. yen–24.4％–88 mil. yen

FY2023363 mil. yen

Segment profit

233 mil. yen–27.0%–86 mil. yen

FY2023320 mil. yen＜Factor 1: Lower revenues / Lower earnings＞
This segment experienced downward trend because of continuously decreasing number of paid subscribers due to commoditizationof Transfer Information service＜Factor 2: Lower earnings＞
Additional cost for renovation of “BTOnline” (a service for arrangement of ticketless business trip) which had been carried out since
FY2023 eventually ceased during the current 3Q(mil. yen)

1,183

1,101
363

2023
1-3Q

2024
1-3Q

Net sales

2023
1-3Q

274

320

2024
1-3Q

2023

EBITDA

80

78

2024
1Q

2024
2Q

73

233
1-3Q

2024
1-3Q

Segment profit
Copyright© 駅探. All Rights Reserved

2024
3Q

QoQ transition of Segment profit
11Advertisement Platform Business
FY03/2024, 1-3Q

Lower revenues / Lower earnings(YoY)

Net sales

1,152 mil. yen–3.2%–37 mil. yen

FY2023

1,189 mil. yen

EBITDA

15 mil. yen–71.3%–38 mil. yen

FY202353 mil. yen

Segment profit–59 mil. yen

N/A–20 mil. yen

FY2023–39 mil. yen＜Factor 1: Higher revenues / Higher earnings＞
Proud Engine Inc.
As it was added to this segment in the previous 3Q (FY03/2023), both revenues and earnings increased YoY; and sales increased thanks to augmented
personnel (recruitment)＜Factor
2: Lower revenues / Lower earnings＞(単位:百万円)
Cirqua, Inc.
Market shrinkage because of amendment to the PMD Act and worsened business environment for Cirqua (suspended advertisement in major media);On the other hand, non-consolidated business performance turned to surplus during the current 3Q due to cost reduction by reexamination of businessstructure and curtailing expenses, as well as contribution by revenues from commercial materials of new genres

Cirqua, Inc.
-39

38

-59

1,189 1,152
53–49

・ Contribution byrevenues fromcommercial
materials of new
genres

–48

15
2023
1-3Q

2024
1-3Q

Net sales

2023
1-3Q

2024
1-3Q

EBITDA

2023
1-3Q

2024
1-3Q

Segments loss

2024
1Q

2024
2Q

・ Cost reduction byreexamination ofbusiness structure
and curtailingexpenses

2024
3Q

Substantial
improvement due toturning to surplus asa standalone entity

QoQ transition of Segment profit

Copyright© 駅探. All Rights Reserved

12M&A/Incubation Business
FY03/2024,全社
1-3Q

New segment* YoY not applicable

Net sales

793 mil. yen

+/–%

N/A

+/– amountN/A

FY2023

N/A

EBITDA

49 mil. yen

+/–%

N/A

+/– amountN/A

FY2023

N/A

Segment profit

33 mil. yen

+/–%

N/A

+/– amountN/A

FY2023

N/A＜Background＞
This segment was newly added due to establishment of EKITAN&Co., Ltd. on April 25, 2023
* No data is available on the previous FY for comparison, so figures are given only for the current 1-3Q
(mil. yen)

20

793

49

33

・ Delivery for largescale projects
through packagedsales
・ Cost reduction

10
2

2023
1-3Q

2024
1-3Q

Net sales

2023
1-3Q

2024
1-3Q

EBITDA

2023
1-3Q

2024
1-3Q

Segment profit

2024
1Q

2024
2Q

2024
3Q

QoQ transition of Segment profit* This segment consists of investment business by EKITAN I&I Co., Ltd. and businesses in connection
with systems (systems development/maintenance, SES, etc.) by subsidiaries of the former
Copyright© 駅探. All Rights Reserved

13Current progress in primary measures (FY03/2024, 1-3Q)
Framework
Progress of RMP (Regional Marketing Platform) framework
Strategies

Measures

Progress【Media business】
・Facilitating the RMP framework- Enhancement of media (Ekitan PICKS, Ekitan LOCAL, andEkitan Odekake-Lab- Increase in inflows via search engines with keywords “region XX”
due to obtaining more inbound links and adding regional
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 through advertising business・Expansion of Proud Engine and Cirqua (matching of advertisers andmedia)(Applying both companies’ own technologies relating toadvertisement and other elements to the RMP framework will lead torevenue 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- Promotion services for municipalities and railway companies- MaaS package- Development of new solutions services
M&A/alliancestrategy

・Faster promotion of M&A/Incubation Business
Copyright© 駅探. All Rights Reserved

・Region-based contents will be added(e.g. real-estate, hotel, tourist spot)・Improved link functions of EKITAN.com
・Enhanced linkage with regional media
and released information
・Linkage and promotion with other media started in order tostop decrease in paid subscribers(courtesy discount services) started (Aug. 2023)

・Expansion of commercial materials handled by Cirqua
・Utilization of Cirqua’s Ad-network to build up region-based
advertisement systems→Integration with regional media started
・Promotion of joint development with companies having tools
to operate LINE official accounts→Sales started in Dec. 2023
・Development of promotion services (PR engine) formunicipalities and regional business entities→ Test marketing with municipalities is under consideraition
・User authentication function was added to “Ekitan MaaS
Solution”, which utilizes My Number Card (official personal
identification card)

・M&A and alliance are proactively considered/promoted inorder for realizing RMP framework

14Section 3
RMP framework
RMP: Regional Marketing Platform

Copyright© 駅探. All Rights Reserved

15

RMP framework
FY03/2024, 1-3Q

RMP* framework
Realizing RMP frameworkthat connects users with services on regional basis
RMP: Regional Marketing Platform~ From the Stations ~Aspired orientation

By utilizing Ekitan Group’s business assets, and based on“stations” where many people gather, business entities(services) and local people (users) are connected

By utilizing transfer information technologies and advertisement
technologies, business entities and users are “connected”

housing

tourist site

clinicgym

meal

incorporate

schoolconnect

flightbus stop
public facility

stationentertainment parking

stationhotel

bus
stationIncorporating information on users and business entities

hotelThis is analyzed/organized around a “station” by utilizing EKITAN Group’s business assets
expressway bus

Connecting business entities and users
Users are provided with beneficial information and their explorations around the station are supported
New ways of monetization are realized<Revenues from various media, enhanced services for corporations, etc.>

Copyright© 駅探. All Rights Reserved

16Image of business growth
FY03/2024, 1-3Q

Four businesses (Transfer information business, Media business, Advertisement business,
Solutions business) plus M&A will be reinforced, aiming at revenue expansion

Realization of RMP framework
Solutions business

Advertisementbusiness
Media business

Expansion of profitability＋M&A* RMP: Regional Marketing Platform(courtesy discount services)

Transfer information business
By increasing contents, inbound links, clients, and partner websites,business models of value accumulation are built up to expand revenue
Copyright© 駅探. All Rights Reserved

17Strategies (summary)
FY03/2024, 1-3Q

In order for realizing RMP framework,businesses are promoted with three strategies as their pillars* RMP: Regional Marketing Platform(Strategy 1) To reinforce EKITAN.com (Media business)• By changing configuration of Ekitan media which were independent each other and by increasing inboundlinks, search results with regional keywords would be presented at higher positions than before, leading toincrease in UU and PV• By adding OTA* and other players, PV unit price would increase, leading to revenue expansion* OTA (Online Travel Agent): Travel agents which carry out their businesses only online(Strategy 2) RMP extension (Media business and Advertisement business)• Information networking: Bidirectional delivery of information (partner regional media and EKITAN.com)• Link networking: Formation of mutual links (partner regional media and EKITAN.com)• Ad networking: Recommendation widgets provided by Cirqua’s Ad-network will be posted on partnering
regional media, leading to sharing revenues(Strategy 3) PR engines & options (Solutions business)• EKITAN.com and RMP extension will be utilized to the maximum, and services will be rolled out to improveawareness of municipalities and business entities which carry out regional marketing and to draw theirattention

Copyright© 駅探. All Rights Reserved

18Section 4
About performance
forecasts of FY03/2024

Copyright© 駅探. All Rights Reserved

19About performance forecasts of FY03/2024

Considering movement of our business performance up to the current
second quarter cumulative period, and because business environment
surrounding the Group tends to change drastically, it is difficult to

calculate highly reliable figures of the Group’s performance forecasts,
so we have decided not to disclose those forecasts. However, upon
considering our progress from now on, such forecasts will be disclosed
promptly when it becomes possible to figure out.

Copyright© 駅探. All Rights Reserved

20Section 5
TopicsCopyright© 駅探. All Rights Reserved

21

Solutions business
Agreement executed with Koriyama City (Fukushima Pref.)for revitalization of regional public transport (November 15, 2023)
An agreement was executed with Koriyama City (Fukushima Pref.)regarding collaborative activities for revitalization of regional public transportutilizing our WEB media “Ekitan LOCAL” to publicize attractiveness of the local region
Efforts to solve various issues around regional public transport in Koriyama City,
such as decrease in users, maintenance/formation of sustainable public transport,
and measures against diversified/multifaceted mobility needs

SDGs Future City

Koriyama
Key roles:
・ Providing information about events around railway
stations

Key roles:
・ Presenting and appealing information about
events around railway stations on “EKITAN.com”
and “Ekitan Local”

・By utilizing “Ekitan LOCAL” to dispatch information from “Stations” about various events,
usage of public transport and regional revitalization would be facilitated・By making effective use of resources and know-hows which the Koriyama City andEkitan have, usage of public transport and regional revitalization in the City would befacilitated
Copyright© 駅探. All Rights Reserved

22

Solutions business
User authentication function was added to “Ekitan MaaS Solution”,
which utilizes My Number Card (official personal identification card), to contribute to SDGs (January 23, 2024)

In collaboration with “xID app” for personal authentication available from xID Inc.,
functions for user authentication and for app login using My Number Card are provided.
This will improve usability and prevent “spoofing” and data alteration by someone else.

【Image of usage】

Ekitan MaaS app

Get
authentication app

Authentication via
My Number Card

Login

Start using service

For the future as well, we work on functional improvement towards
making Ekitan MaaS solution more secure, safe and convenient.
Copyright© 駅探. All Rights Reserved23Advertisement business
Released “LIneON”, an SaaS type CRM tool on December 20, 2023
“LIneON” is a product jointly developed in collaboration with Lifex Co., Ltd.
which was released following development and version upgrade■Attracts guests, makes them visit and purchase more easily■This can be user intuitively for wide range of businesses from restaurants (where guests come) to EC
shops such as mail-order shops (where guests don’t come)■Main functions
1 Questionnaire
2 Segmental distribution
3 Rich menu
4 Customer support using chat
5 Flexible and creative appeal
6 Dashboard

More sales with intuitively usable tool
linked with LINE app

Collecting personalized data via questionnaire

Personalized stepwise distribution

Customer support
using LINE chat

Visualizing users via dashboard■ Features of LIneON・Enables effective distribution of information according to each customer’s attributes and situation
・Completes entire process from order-taking to acceptance of changes on LINE・Supports 1-to-1 chat operation with customers
Realizes cost reduction and higher efficiency with support by both human and chatbot
Copyright© 駅探. All Rights Reserved24

~ From the Stations ~【Contact for IR】

EKITAN Co., Ltd. IR staff E-mail ir@ekitan.co.jp
URL https://ekitan.co.jp/

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.
Copyright© 駅探. All Rights Reserved