FOR TRANSLATION PURPOSE ONLY
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.
In the event of any discrepancy between this translated version and the original Japanese version, the latter shall prevail.
May 10, 2023

Summary of Consolidated Financial Results
for the Full-Term of the Fiscal Year 2023 (FY03/2023)[Japanese standards] (Consolidated)
Company name:

EKITAN&Co., Ltd.

Stock exchange listing:
Securities code:
Representative:
Inquiries:

Tokyo
3646
URL:
https://ekitan.co.jp/
President
Naoyuki Kaneda
Director, Management Strategy Office Chief& General Manager of Finance and Accounting Department
Katsuya Kojima
Scheduled date of ordinary general meeting of shareholders:June 27, 2023
Scheduled date to file Securities Report:
June 28, 2023
Scheduled date to commence dividend payments:
June 28, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (For institutional investors)

TEL: 81-3-6367-5951(Amounts less than one mil. yen are rounded down)

1. Consolidated financial results of FY03/2023 (April 1, 2022 – March 31, 2023)(1) Consolidated operating results
Net sales

FY03/2023
FY03/2022(Percentages indicate year-on-year changes)
Ordinary
Net profit (loss) attributableprofit (loss)
to owners of parent

Operatingprofit (loss)

EBITDA*mil. yen%mil. yen%mil. yen%mil. yen%mil. yen

%

3,206
2,891

10.9
48.4

296
319

(7.0)
27.8

105
138

(24.3)(26.3)

104140(25.8)(31.9)

8980

12.0(35.5)(Note) Comprehensive profit

FY03/2023:
89 mil. yen [12.0%]
FY03/2022:
80 mil. yen [(35.5)%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill
Net profit (loss)
per share

Diluted net profit (loss)
per shareyen

FY03/2023
FY03/2022

17.04
14.56
(2) Consolidated financial position
Total assets

FY03/2023
FY03/2022(Reference) Shareholders equity

Ordinary profit
to toral assets ratio

Return on equity

Operating profit
to toral assets ratio

yen

%

%

%

－
－

3.4
2.8

3.1
4.1

3.3
4.8

Net assets

Equity ratio

Net assets per sharemil. yenmil. yen

%

3,152
3,541

2,487
2,838

78.9
80.2

513.25515.26

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of period

FY03/2023:
FY03/2022:

2,487 mil. yen
2,838 mil. yen(3) Consolidated cash flows
Cash flows fromoperating activities

FY03/2023
FY03/2022

mil. yenmil. yenmil. yenmil. yen

63
345

(265)
(772)

(452)
(77)

1,424
2,079

2. Cash dividends
Annual dividends per share
1Q-endFY03/2022
FY03/2023
FY03/2024 (forecasts)

2Q-end3Q-endYear-end

Dividend
payout ratio(consolidated)

Total cash
dividends

Total

Ratio of dividends
to net assets(consolidated)

yen

yen

yen

yen

yen

mil. yen

%

%

－
－
－

0.00
0.00
0.00

－
－
－

14.00
14.00
14.00

14.00
14.00
14.00

77
67

96.2
82.2
189.7

2.7
2.7

3. Consolidated performance forecasts for FY03/2024 (April 1, 2023 – March 31, 2024)(Percentages indicate year-on-year changes)

Net sales

Operatingprofit (loss)

EBITDA

Ordinary
profit (loss)

Net profit
Net profit (loss) attributableto owners of parent(loss) per sharemil. yen%mil. yen%mil. yen%mil. yen%mil. yen%

yen(cumulative)

2,166

41.7

93

(38.7)

(27)

－

(26)

－

(25)

－

(4.79)

Full year

4,612

43.9

316

6.7

65

(37.3)

70(32.5)

38(56.7)

7.38

2Q

FOR TRANSLATION PURPOSE ONLY
*Notes(1) Changes in significant subsidiaries during the current period(changes in specified subsidiaries resulting in the change in scope of consolidation):

Yes

New: 1 (name) Proud Engine Inc.
Excluded: None
(Note) For details, please see the appendix, page 10, "3. Consolidated Financial Statements and Principal Notes, (5) Notes on
Consolidated Financial Statements (Significant Information regarding the Preparation of Consolidated Financial Statements)".

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements①Changes in accounting policies due to revisions to accounting standards and other regulations:No②Changes in accounting policies due to other reasons:No③Changes in accounting estimates:
No④Restatement of prior period financial statements:
No(Note) For details, please see the appendix, page 11, "3. Consolidated Financial Statements and Principal Notes, (5) Notes on
Consolidated Financial Statements, (Changes in Accounting Principles)".

(4) Number of issued shares (common shares)①Total number of issued shares at the end of the period (including treasury stock)
FY03/2023:

6,018,800 shares

FY03/2022:

6,818,800 shares②Number of treasury stock at the end of the period
FY03/2023:

1,171,316 shares

FY03/2022:

1,309,116 shares

FY03/2022:

5,509,684 shares③Average number of shares during the period
FY03/2023:

5,272,083 shares* Quarterly summary of financial results is not included in a quarterly review by a certified public accountant or an auditing
firm.

* Explanation regarding appropriate use of the earnings forecast and other special notes
Descriptions about the future such as performance forecasts contained in this document are based on information
currently available to the Company and certain presumptions considered as reasonable, and those are not intended toindicate the Company should assure that it would realize such forecasts. Meanwhile, actual performance in the future
may differ substantially, influenced by a wide variety of factors. For preconditions for performance forecasts andprecaution statements in using such forecasts, please see the appendix, page 3, "1. Overall Operating Results, etc., (4)Forecasts for the future".

Supplementary material on financial results will be posted on the Company's website on May 10, 2023 (Wed.).

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023○ Table of Contents: Appendix
1. Overall Operating Results, etc. .......................................................................................................................................... 2(1) Overall operating results of the current period ............................................................................................................ 2(2) Overall financial position of the current period ........................................................................................................... 3(3) Overall cash flows of the current period ...................................................................................................................... 3(4) Forecasts for the future ................................................................................................................................................ 4
2. Basic Idea for the Selection of Accounting Standards ....................................................................................................... 4
3. Consolidated Financial Statements and Principal Notes ................................................................................................... 5(1) Consolidated Balance Sheets ....................................................................................................................................... 5(2) Consolidated Statements of Income and Statements of Comprehensive Income ........................................................ 7
Consolidated Statements of Income ............................................................................................................................. 7
Consolidated Statements of Comprehensive Income ................................................................................................... 7(3) Consolidated Statements of Changes in Equity ........................................................................................................... 8(4) Consolidated Cash Flow Statements ............................................................................................................................ 9(5) Notes on Consolidated Financial Statements ............................................................................................................... 10(Going Concern Assumption)...................................................................................................................................... 10(Significant Information regarding the Preparation of Consolidated Financial Statements) ....................................... 10(Segment Information) ................................................................................................................................................ 12(Per Share Data) .......................................................................................................................................................... 14(Significant Post-Balance Sheet Events) ..................................................................................................................... 151

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023

1. Overall Operating Results, etc.
(1) Overall operating results of the current period
During the current consolidated FY, despite impacts of COVID-19 infections, Japanese economy has presented a certain
level of recovery trend in domestic economic activities thanks to gradual relaxation of restrictions on economic/social
activities.
At the same time, price escalation dur to rise in energy costs caused by the prolonged conflict between Russia and Ukraine has
become wider little by little, which might have some impacts on individual consumers’ confidence, and accordingly there still
seems to be unpredictable future.
In such a situation, Net sales in the Mobility Support Business segment has grown thanks to increased advertising
revenues due to more access to Ekitan media such as Transfer Information site and associated apps as well as order-taking
for services for corporations such as MaaS (“Mobility as a Service” which means a service aiming at optimizing demandand supply by utilizing data on movements of vehicles and people, leading to solving social issues around such
movements). However, our services for paid subscribers such as Transfer Information have continuously experienced lower
revenues associated with the trend towards decreasing number of paid subscribers, affected by market environment
including commoditization. Meanwhile, in the Advertisement Platform Business segment, with respect to “Cirqua”, anadvertisement service operated by Cirqua, Inc., revenues substantially dropped due to revisions to the PMD Act in August
2021, nevertheless, besides improved profitability thanks to operations based on new criteria for posting advertisings inaccordance with the revised PMD Act, joining Proud Engine Inc. as a new subsidiary from the last third quarter
consolidated cumulative fiscal period helped increase in Net sales. Consequently, Net sales of the entire Group increased ascompared to the previous consolidated FY. As for profit, in addition to cost reduction by insourcing back-office operations
and higher operational efficiency, the Company has put its efforts to thorough cost reduction such as less rental expenses
with smaller office against the background of having employees shift to working from home on a regular basis as a measureagainst COVID-19 infections, but such efforts were not enough to complement decreased sales of services for paid
subscribers which provided high profit rate, and additionally, cost for renovating “BTOnline” (a service for arrangement ofticketless business trip) increased, resulting in decrease in both operating profit and ordinary profit. On the other hand, Net
profit attributable to owners of parent increased due to allocating Gain on forgiveness of debts of Laterra International, Inc.,a consolidated subsidiary, as Extraordinary profit.
Consequently financial results of the current consolidated FY were as follows: Net sales: 3,206,085 thousand yen(increase by 10.9% YoY); EBITDA: 296,856 thousand yen (decrease by 7.0% YoY); Operating profit: 105,084 thousandyen (decrease by 24.3% YoY); Ordinary profit: 104,496 thousand yen (decrease by 25.8% YoY); and Net profit attributableto owners of parent: 89,827 thousand yen (increase by 12.0% YoY).
Operating results of individual business segments are as follows.
①Mobility Support BusinessThis segment experienced downward trend because of continuously decreasing number of paid subscribers due tocommoditization of Transfer Information services. Meanwhile, this segment could make a progress through increased
advertising revenues due to more access to Ekitan media such as Transfer Information site and associated apps, as well asorder-taking for services for corporations such as demonstration experiment of MaaS for local residents in Esashi Town
(Hokkaido Pref.), but such positive aspects were not enough to complement decreased sales and profit of services for paid
subscribers, and additionally, cost for system renovation of “BTOnline” (a service for arrangement of ticketless businesstrip) by its supplier, part of which the Company supported, increased than as initially assumed, resulting in lower
revenues/earnings.
These operations resulted in Net sales of 1,595,863 thousand yen (decrease by 2.4% YoY), EBITDA of 515,738
thousand yen (decrease by 17.2% YoY) and Segment profit of 457,538 thousand yen (decrease by 17.5% YoY).
②Advertisement Platform BusinessWith respect to “Cirqua”, an advertisement service operated by Cirqua, Inc., revenues substantially dropped due torevisions to the PMD Act in August 2021, nevertheless, besides improved profitability thanks to operations based on new
criteria for posting advertisings in accordance with the revised PMD Act, inclusion of Proud Engine Inc. in this segment
since the last third quarter consolidated fiscal period led to higher revenues. On the other hand, as for profit, increased Net
sales contributed to smaller amount of losses, but in addition to allocating amortization of goodwill, up-front investment inenhancement of service genres of the vertical media called “Ekitan PICKS” which has been in operation since the previous
consolidated FY resulted in deficit.
These operations resulted in Net sales of 1,610,222 thousand yen (increase by 28.3% YoY), EBITDA of 66,899
thousand yen (increase by 245.1% YoY) and Segment loss of 61,499 thousand yen (which was 77,228 thousand yen in theprevious FY).

2

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(2) Overall financial position of the current period(Assets)
Current assets was 1,868,574 thousand yen at the end of the current consolidated FY, i.e. decrease by 554,121 thousand
yen as compared to the end of the previous consolidated FY. This is mainly due to decrease in Cash and deposits by
654,593 thousand yen, and increase in Accounts receivable - trade & contract assets by 67,667 thousand yen. Non-current
assets was 1,284,373 thousand yen, i.e. increase by 165,563 thousand yen as compared to the end of the previous
consolidated FY. This is mainly due to increase in Software by 56,898 thousand yen and increase in Intangible assets Others by 83,385 thousand yen. As a result, total assets was 3,152,947 thousand yen, i.e. decrease by 388,558 thousand yen
as compared to the end of the previous consolidated FY.

(Liabilities)
Current liabilities was 438,139 thousand yen at the end of the current consolidated FY, i.e. increase by 34,414 thousand
yen as compared to the end of the previous consolidated FY. This is mainly due to increase in Accounts payable - trade by79,563 thousand yen and decrease in Income taxes payable by 34,409 thousand yen. Non-current liabilities was 226,833
thousand yen, i.e. decrease by 72,007 thousand yen as compared to the end of the previous consolidated FY. This is mainly
due to decrease in Provision for directors’ retirement benefits by 37,098 thousand yen and decrease in Non-current
liabilities - Others by 37,098 thousand yen. As a result, Total liabilities was 664,973 thousand yen, i.e. decrease by 37,593
thousand yen as compared to the end of the previous consolidated FY.

(Net assets)
Total net assets was 2,487,974 thousand yen at the end of the current consolidated FY, i.e. decrease by 350,965
thousand yen as compared to the end of the previous consolidated FY. This is mainly due to Dividends from surplus of
77,135 thousand yen, Net profit attributable to owners of parent of 89,827 thousand yen, and Purchase of treasury stock of
372,353 thousand yen. As a result, Equity ratio decreased from the end of the previous consolidated FY by 1.3 points to
78.9%.

(3) Overall cash flows of the current period
Cash and cash equivalents (hereinafter, "business fund") at the end of the current consolidated FY was 1,424,983
thousand yen, i.e. decrease by 654,593 thousand yen from the end of the previous consolidated FY.
Each cash flow status and factors thereof in the current consolidated FY are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities during the current consolidated FY was 63,211 thousand yen (which was
345,490 thousand yen in the previous FY). This is mainly due to Net profit before income taxes and minority interests of
123,028 thousand yen, Depreciation of 140,461 thousand yen, Others of 140,461 thousand yen, and Income taxes paid of
99,291 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities during the current consolidated FY was 265,555 thousand yen (which was 772,428
thousand yen in the previous FY). This is mainly due to Purchase of intangible assets of 231,520 thousand yen and Payments
for acquisition of new consolidated subsidiary of 20,761 thousand yen.
(Cash flows from financing activities)
Net cash used in financing activities during the current consolidated FY was 452,250 thousand yen (which was 77,987
thousand yen in the previous FY). This is mainly due to Purchase of treasury stock of 375,332 thousand yen and Dividends
paid of 76,917 thousand yen.

3

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(4) Forecasts for the future
Services for paid subscribers such as Transfer Information which is the mainstay of our business have been commoditizedand continuously reduced profitability, so it is urgently necessary for us to create some business that should become a new
mainstay. Amid such a business environment, in accordance with the mid-term management plan announced on May 11,
2021, the Company has carried out a variety of activities making use of its business resources to the maximum extent
possible while associating “needs of local residents” with “services provided by local business entities”, based on its own“Regional Marketing Platform” framework which is an approach to embrace respective business segments in order to create
a new mainstay for profitability, and such efforts have gradually proved fruitful. Specifically, in addition to entering intoadvertisement platform business by acquiring Cirqua, Inc. and Proud Engine Inc. as its consolidated subsidiaries, andlaunching “Ekitan PICKS” which is a service introducing actual shops for each region, the Company has achieved someresults also in the field of MaaS such as demonstration experiments carried out in Esashi and Hakodate areas (both in
Hokkaido Pref.).
On the other hand, with respect to profit, because of slow expanding profitability of “Ekitan PICKS” impacted bymodification to the criteria (algorithm) for determining search results ranking of search engines and delay in working on new
business due to prioritizing other fundamental development such as those in response to the revised Pharmaceutical andMedical Device Act by Cirqua Inc., decreased revenues from services for paid subscribers such as Transfer Information have
not yet been sufficiently supplemented.
For the next consolidated FY, the Company will put its efforts to investment and carrying out various measures in order toaccelerate realization of the “Regional Marketing Platform” framework which should be fostered as a business to be a new
mainstay of profitability. Advertisement Platform Business segment considers the next term as the year of reinforcing its basefor growth in FY03/2025 and onward, so it will work on personnel enhancement and many other new efforts. And Mobility
Support Business segment aims at strengthening its relationships with municipalities/railway companies and boosting
provision of Ekitan’s own solutions such as MaaS packages. However, renovation work of “BTOnline” (a service forarrangement of ticketless business trip) is continuously required for the next consolidated FY, and accordingly cost for thatwork adds also during the next consolidated FY, which would have some impact on overall financial results. On the other
hand, in conjunction with establishment of Ekitan I&I Co., Ltd. as announced on April 20, 2023, the Company set up its new
segment named “Investment/Incubation Business”. In relation to this Investment/Incubation Business, although temporary
cost associated with establishment of the aforementioned company and share acquisition will be incurred during the next
consolidated FY, the Company anticipates substantial contribution by this segment to profit.
Consequently, performance forecasts for the next FY03/2024 are as follows: Net sales: 4,612,177 thousand yen (increaseby 43.9% YoY); EBITDA: 316,772 thousand yen (increase by 6.7% YoY); Operating profit: 65,844 thousand yen (decreaseby 37.3% YoY); Ordinary profit :70,524 thousand yen (decrease by 32.5% YoY); and Net profit attributable to owners ofparent: 38,908 thousand yen (decrease by 56.7% YoY).
It should be noted that regarding performance forecasts for the second quarter of FY03/2024 (cumulative), the Company
predicts operating loss of 27,908 thousand yen since much one-time expenses will be allocated during the preceding firstquarter of the same FY such as those for establishment of a joint venture and for acquiring shares of three companies by thatjoint venture, renovation cost of “BTOnline”, and recruitment cost. For the following third quarter and onward, sales related
to advertising and commissioned projects are much likely to concentrate in December and March every year, so our businessperformance will turn around favorably. As a result, looking throughout the year, operating loss that would be registeredduring the second quarter is to be covered during the latter half.
The abovementioned performance forecasts arethese forecasts due to various factors in the future.
2.

based on currently available information. Actual results may differ from

Basic Idea for the Selection of Accounting Standards
The Company adopts Japanese accounting standards to ensure comparability with other companies in the same trade inJapan.

4

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023

3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(thousand yen)Previous consolidated FY(March 31, 2022)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade & contract assets
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings (net)
Tools, furniture and fixtures (net)OthersTotal property, plant and equipment
Intangible assets
Software
Customer-related assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OthersTotal investments and other assets
Total non-current assets
Total assets

5

Current consolidated FY(March 31, 2023)

2,079,577
321,142273
1,963
20,310(570)
2,422,696

1,424,983
388,810
12,866
1,760
40,567(412)
1,868,574

30,43538,6581,870
70,964

27,63933,345－60,984

256,886
266,546
415,890
19,007
958,330

313,784
272,490451,244
102,392
1,139,911

18,70225,19645,61589,514
1,118,810
3,541,506

18,702
21,81842,95583,476
1,284,373
3,152,947

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(thousand yen)Previous consolidated FY(March 31, 2022)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for loss on order received
Valuation allowance for purchase contracts
OthersTotal current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Asset retirement obligations
Deferred tax liabilities
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Total net assets
Total liabilities and net assets

6

Current consolidated FY(March 31, 2023)

167,826－
47,654
12,533－
13,156
162,554403,725

247,390
9,160
13,244
13,792
9,100
13,156132,294438,139

100,000
19,80014,412
125,529
39,098298,841
702,566

90,840－14,411
119,5812,000
226,833
664,973

291,956
293,5312,926,669(673,216)
2,838,940
2,838,940
3,541,506

291,956
293,5312,498,077(595,589)
2,487,974
2,487,974
3,152,947

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(2) Consolidated Statements of Income and Statements of Comprehensive Income(Consolidated Statements of Income)(thousand yen)Previous consolidated FY(Apr. 1, 2021 – Mar. 31, 2022)

Current consolidated FY(Apr. 1, 2022 – Mar. 31, 2023)

2,891,166
1,910,854

3,206,085
2,259,529

980,312
841,503138,809946,556
841,471
105,084

27
138
1,800
1,249
153
3,369

26
157
1,500
1,250
869
3,802

1,267
0
－
－
1,267
140,911

1,250
－
2,978
161
4,390
104,496－－

18,531
18,531

Loss on retirement of non-current assets

188－

Total extraordinary losses

188－

140,722
79,584(19,068)
60,51580,20680,206

123,028
46,825(13,624)
33,20189,82789,827

Previous consolidated FY(Apr. 1, 2021 – Mar. 31, 2022)

Current consolidated FY(Apr. 1, 2022 – Mar. 31, 2023)

80,20680,20689,82789,82780,20689,827

Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit (loss)
Non-operating profit (loss)
Interest income
Gain on forfeiture of unclaimed dividends
Subsidy income
Interest subsidy
OthersTotal non-operating profit (loss)
Non-operating expenses
Interest expenses
Foreign exchange losses
Purchase of treasury stock
OthersTotal non-operating expenses
Ordinary profit (loss)
Extraordinary profit
Gain on forgiveness of debts
Total extraordinary profit
Extraordinary losses

Net profit (loss) before income taxes and minority interests
Income taxes
Income taxes - deferred
Total income taxes
Net profit (loss)
Profit (loss) attributable to owners of parent(Consolidated Statements of Income)(thousand yen)

Net profit (loss)
Comprehensive income (loss)(detail)Comprehensive income (loss) attributable to owners of parent

7

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(3)

Consolidated Statements of Changes in Equity
Previous consolidated FY (Apr. 1, 2021 – Mar. 31, 2022)(thousand yen)

Shareholders' equity
Capitalstock
Balance at beginning ofcurrent period

Capitalsurplus291,956

Retainedearnings

293,5312,923,598

Treasurystock(673,216)

Total
shareholders'equityTotal
net assets

2,835,868

2,835,868

Changes of items during
periodDividends from surplus(77,135)(77,135)(77,135)

Net profit attributable toowners of parent

80,20680,20680,206

Total changes of items during
periodBalance at end of current
period

－

－

3,071

－

3,071

3,071

291,956

293,5312,926,669(673,216)

2,838,940

2,838,940

Current consolidated FY (Apr. 1, 2022 – Mar. 31, 2023)(thousand yen)

Shareholders' equity
Capitalstock
Balance at beginning ofcurrent period

Capitalsurplus291,956

Retainedearnings

293,5312,926,669

Treasurystock(673,216)

Total
shareholders'equityTotal
net assets

2,838,940

2,838,940

Changes of items during
periodDividends from surplus(77,135)(77,135)(77,135)

Net profit attributable toowners of parent

89,82789,82789,827(372,353)(372,353)(372,353)

43,197

－

－

8,696

8,696

406,783－－

Purchase of treasury stock
Disposal of treasury stock(43,197)

Stock compensation withtransfer restrictions

8,696

Retirement of treasurystock(406,783)

Transfer to capital surplus
from retained earnings

441,284(441,284)－－(428,592)

77,626(350,965)(350,965)

291,956

293,5312,498,077(595,589)

2,487,974

2,487,974

Total changes of items during
periodBalance at end of current
period8

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(3) Consolidated Cash Flow Statements(thousand yen)Previous consolidated FY Current consolidated FY(Apr. 1, 2021 –(Apr. 1, 2022 –Mar. 31, 2021)
Mar. 31, 2023)

Cash flows from operating activities
Net profit (loss) before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for loss on order received
Interest income
Interest expenses
Foreign exchange losses (gains)
Purchase of treasury stock
Gain on forgiveness of debts
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade & contract assets
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
OthersSubtotalInterest income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Proceeds from collection of lease and guarantee deposits
Payments for asset retirement obligations
Payments for acquisition of new consolidated subsidiary
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury stock
Dividends paid
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period

9140,722
132,664
47,840
459
64
2,160
－
(27)
1,267
0
－
－
188
(68,160)(132)
114,053
50,310421,41127(20)
0(75,928)
345,490123,028
140,461
51,310(157)
1,259(19,800)
9,100
(26)
1,250
－
2,978
(18,531)－(583)(12,389)(3,996)(111,428)
162,47626－
0(99,291)
63,211(2,112)－(61,123)
27,607(6,800)(730,000)(772,428)(15,524)250(231,520)
2,000－(20,761)(265,555)－(76,745)(1,242)(77,987)(0)(504,926)
2,584,503
2,079,577(375,332)(76,917)－(452,250)－(654,593)
2,079,577
1,424,983

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(5) Notes on Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Information regarding the Preparation of Consolidated Financial Statements)
1. Matters on the scope of consolidation(1) Number of consolidated subsidiaries:

3

Names of the consolidated subsidiaries
Laterra International, Inc.
Cirqua, Inc.
Proud Engine Inc.
* During the current consolidated FY, Proud Engine Inc. became a subsidiary of the Company by shareacquisition, and therefore it has been included in the scope of consolidation.
(2) Non-consolidated subsidiary
Not applicable.
2. Matters on application of equity method(1) Affiliate company to which equity method is applied
Not applicable.
(2) The affiliate company to which equity method is not applied (Mocosuku Co., Ltd.) would have no major
influence on the Company’s consolidated financial statements if it were excluded from the scope of equity methodfrom the perspective of its current term profit/loss and retained earnings (those commensurate with its equity), etc.,
and also it had no significance as a whole, so it was excluded from the scope of application of equity method.
3. Matters on business year and other factors of the consolidated subsidiaries
End of business year of the consolidated subsidiaries is the same as the consolidated closing date.
4. Matters on accounting policies(1) Standards and methods for evaluating important assets①Securities• Available-for-sale securities• Equity securities without market value
Cost method using moving average method is adopted.
②Inventories• Work in process:
Cost method based on individual method (method of devaluating book value based on decline inprofitability) is adopted.
• Raw materials and supplies:
Cost method based on individual method (method of devaluating book value based on decline inprofitability) is adopted.
(2) Depreciation methods for important depreciable assets①Property, plant, and equipment
Fixed-rate method is applied. However, straight-line method is applied for buildings and accompanying
facilities and structures acquired on or after April 1, 2016.
Meanwhile, useful lives of major buildings are 8-15 years and those of major tools, furniture and fixture are
3-10 years.
In addition, for assets acquired prior to April 1, 2007, method of straight-line depreciation over 5 years isapplied starting from the next year following the end of depreciation up to the final depreciable limit.
②Intangible assets
Straight-line method is applied.
Meanwhile, for software intended for marketing, depreciation method based on the expected effective period(within 2 years) is adopted; and for software intended for internal use, straight-line method based on theinternally available period (5 years) is adopted.
And for customer-related assets identified upon business combination, straight-line method based on the
period on which such combination has effects (within 12 years) is adopted.

10

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(3) Basis for allocating important provisions① Allowance for doubtful accounts
In order to protect against losses due to uncollectible receivables, amount calculated based on historicaldefault rates is allocated for general receivables, and for specific ones such as those with default possibilities
respective collectibilities are taken into account and estimated uncollectible amount is allocated.
② Provision for bonuses
In order to prepare for payments of bonuses to employees, estimated amount for such payments which isincurred during the current consolidated FY is allocated.
③ Provision for loss on order received
In preparation for the future loss related to order received, estimated amount of loss on order received as ofthe end of the current FY is allocated.
④ Valuation allowance for purchase contracts
In order to protect against losses due to decline in profitability of merchandise in the future, amount which isestimated as uncollectible out of purchase prices based on merchandise purchase contracts is allocated.
⑤ Provision for directors’ retirement benefits
In order to prepare for payments of directors’ retirement benefits, amount required to be paid as of the end of
the current consolidated FY is allocated, based on internal regulations of some of the consolidated subsidiaries.
However, no provision for directors’ retirement benefits was allocated for the current consolidated FY.

(4) Basis for allocating important revenues and expenses
Points of time when revenues and contents of major performance obligations in the Group’s principal businesses
are usually recognized are as described below.
① Providing services
Mainly services for paid subscribers related to transfer information, API services and data licenses areprovided. For relevant performance obligations, contracts are executed for certain periods of time and revenues
are recognized when such performance obligations are fulfilled in the course of those service periods.
② Software development
Custom-made softwares are developed and provided.
Relevant performance obligations are considered as those to be fulfilled over a certain period of time andrevenues are recognized based on progress level in relation to such fulfillment of performance obligations.
Progress level is calculated, for each contract, as percentage of actual cost relative to total estimated cost.
Meanwhile, for introduction works the periods of which from start-up date of contract to the point of time whenrelevant performance obligations are expected to be completely fulfilled are very short, alternative treatments areapplied and revenues are not recognized for a certain period of time but are recognized at the time of suchcomplete fulfillment.
③ Advertisement
Advertisings are distributed via an ad network system.
Revenues are recognized when relevant performance obligations are considered as fulfilled quantitatively
along with advertising transactions such as clicking.
It should be noted that compensations for these performance obligations are received generally within one year
after their fulfillment and therefore no important financial element is included.
(5) Method and period of amortization of goodwill
Goodwill is amortized equally over 10 years or less during which it exert effects, based on a reasonableestimation.
(6) Scope of business fund for the consolidated cash flow statement
It consists of cash on hand, demand deposit, and short-term investment with maturity date within three months
after its acquisition which is highly liquid, easily realizable and involves only de minimis risk concerning valuechange.

11

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(Segment Information)
1. Overview of reportable segments
The Company's reportable segments are those being its constituent units for which separated financial information isavailable and are subject to periodic review by the board of directors for determining allocation of management
resources and for evaluating business performance. The Company consists of several segments each of which deals
with different services, and sets two reportable segments as "Mobility Support Business" and "Advertisement Platform
Business".
“Mobility Support Business” segment is responsible for business relating to mobility operated mainly by EKITAN
Co., Ltd. and Laterra International, Inc.; and “Advertisement Platform Business” segment is responsible for business
relating to advertisement operated mainly by Cirqua, Inc. and Proud Engine Inc.
2. How to calculate amounts of net sales, profit/loss, assets, liabilities and other items for each reportable segment
Accounting treatment methods for the business segments as reported herein are identical to the accounting
principles for producing the consolidated financial statements. Figures of segment profit of individual reportablesegments are based on their operating profit.
3. Information on amounts of net sales, profit/loss, assets, liabilities and other items for each reportable segment
Previous consolidated FY (Apr. 1, 2021 – Mar. 31, 2022)(thousand yen)

Reportable segments
Mobility Support
Business

Advertisement Platform
Business

Total

Net sales
Sales to external customers

1,635,863

1,255,303

2,891,166

－

－

－

Total

1,635,863

1,255,303

2,891,166

Segment profit (loss)

554,574(77,228)

477,346

Segment assets

519,259

1,203,094

1,722,353

Depreciation

66,22650,498116,724

Amortization of goodwill

1,726

46,11447,840622,527

19,384

641,91149,59736,19585,793

Inter-segment sales or transfer

Other items

EBITDA (see Note 2)
Increase in property, plant andequipment and in intangible assets
Notes

1.
2.

Amounts of segment liabilities are not regularly provided/used in the highest decision-making body.
EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

12

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023

Current consolidated FY (Apr. 1, 2022 – Mar. 31, 2023)(thousand yen)

Reportable segments
Mobility Support
Business

Advertisement Platform
Business

Total

Net sales
Sales to external customers

1,595,863

1,610,222

3,206,085

－

－

－

Total

1,595,863

1,610,222

3,206,085

Segment profit (loss)

457,538(61,499)

396,038

Segment assets

554,694

1,476,184

2,030,879

57,336

77,952

135,288863

50,44751,310515,738

66,899582,638

93,261

151,574

244,835

Inter-segment sales or transfer

Other items
Depreciation
Amortization of goodwill
EBITDA (see Note 2)
Increase in property, plant andequipment and in intangible assets
Notes

1.
2.

Amounts of segment liabilities are not regularly provided/used in the highest decision-making body.
EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

4. Difference between the total amounts of reportable segments and the amount presented on the Consolidated Financial
Statements; and main contents of said difference (items in relation to adjustment of difference)(thousand yen)

Net sales

Previous consolidated FY

Reportable segments total
Net saleson the Consolidated Financial Statements

Current consolidated FY

2,891,166

3,206,085

2,891,166

3,206,085(thousand yen)

Profit (loss)

Previous consolidated FY

Reportable segments total
Corporate expenses (see Note)
Operating profit (loss)
on the Consolidated Financial Statements
Note:

Current consolidated FY

477,346(338,537)

396,038(290,954)

138,809

105,084

Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.
(thousand yen)

AssetsPrevious consolidated FY

Reportable segments total
Corporate assets (see Note)
Total assets
on the Consolidated Financial Statements
Note:

1,722,353
1,819,153

2,030,879
1,122,068

3,541,506

3,152,947

Corporate assets comprises of cash and cash deposits not attributable to reportable segments.

13

Current consolidated FY

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(thousand yen)

Other items

Reportable segments
total

Amount allocated on theConsolidated Financial
Statements

Adjustment

FY03/2022

FY03/2023

FY03/2022

FY03/2023

FY03/2022

FY03/2023

Depreciation

116,724

135,288

15,9405,172

132,664

140,461

Amortization of goodwill

47,84051,310－－47,84051,31085,793244,835

242

1,544

86,035

246,379

Increase in property, plantand equipment and inintangible assets
Notes

1.
2.

Adjusted depreciation refers to depreciation of buildings and others not attributable to the reportable segments.
Adjusted increase in property, plant and equipment and in intangible assets comprises mainly of capital investment buildings
not allocated to the reportable segments.

(Per share data)
Previous consolidated FY(Apr. 1, 2021 – Mar. 31, 2022)

Current consolidated FY(Apr. 1, 2022 – Mar. 31, 2023)

Net assets per share

515.26 yen

513.25 yen

Net profit (loss) per share

14.56 yen

17.04 yen

Notes

1.
2.

"Diluted net income per share" is not disclosed because there is no dilutive shares.
Calculation bases of net profit (loss) per share are as follows.

Previous consolidated FY(Apr. 1, 2021 – Mar. 31, 2022)

Current consolidated FY(Apr. 1, 2022 – Mar. 31, 2023)

80,20689,827－－80,20689,827

5,509,684

5,272,083

Net profit (loss) per share
Net profit attributable to owners of parent(thousand yen)Amount not attributable to common
stockholders(thousand yen)

Net profit (loss) attributable to owners ofparent applicable to common shares(thousand yen)

Average number of common shares
outstanding during the period(shares)

14

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023(Significant Post-Balance Sheet Events)(Establishment of a joint venture and share acquisition by the joint venture)
The Company decided at its board meeting held on April 20, 2023, to execute a contract regarding establishment of a
joint venture with ITL Holdings Co., Ltd. (hereinafter “ITLHD”), and at the same time to execute a basic agreement
stipulating that the newly established joint venture (hereinafter the “Joint Venture”) should acquire the entire shares ofGrowth and Communications Co., Ltd. (hereinafter “GC”), Cybernet Co., Ltd. (hereinafter “CYB”) and Information
Technology Japan Co., Ltd. (hereafter “ITJ”) all of which were wholly-owned subsidiaries of ITLHD. ITLHD was alreadyestablished on April 25, 2023 and on the same day a share transfer agreement was executed. And on April 28, 2023, thoseshares were transferred.
1. Objectives of establishing the joint venture and of the share acquisition
The Company had set its vision as “To create novel services and contribute to society”, and has worked on providing
transfer information service which nowadays has become essential for our daily lives.
Currently, the Group sets its business vision as “From the Stations”, and in addition to the Transfer Information service,technologies, media and customer assets, while utilizing the Group’s own business assets, moves ahead on realizing theconcept of Regional Marketing Platform framework that links “needs of local residents” and “services provided by local
business entities” together. The Company promotes “M&A/Alliance Strategy” as one of its business strategies, according
to which Cirqua Inc. and Proud Engine Inc. became its subsidiaries in April 2021 and in November 2022, respectively, andhas carried out functional reinforcement of the Regional Marketing Platform framework and strengthened its businessportfolio. In this strategy, the Company considered collaboration with its top shareholder, Bold Investment Co., Ltd., having
a track record in the fields of investment and incubation (hereinafter “Bold”), as well as Bold’s affiliated companies.
As one of such efforts, the Company made repeated considerations with ITLHD which was a fellow subsidiary of Bold
leading several IT companies with which high synergies would be realized, and consequently decided to establish the Joint
Venture to carry out joint operation of investment/incubation business of the Group. The Joint Venture is named after two
initial letters of Investment and Incubation.
The Joint Venture will push forward the following matters and aims at improving the Group’s corporate values.
(1) To accelerate the Group’s M&A/Alliance strategy by making use of ITLHD’s own insights into and know-hows ofinvestment/incubation(2) As one of the Group’s measures for expanded profitability, to ensure stable profitability of Bold and its affiliatedcompanies, and to manage several companies which would realize synergies with the Group as the Joint Venture’s
subsidiaries
As the first stage of the above (2), a basic agreement was also executed stipulating that three companies comprising
GC, CYB and ITJ with high level of track records and know-hows of, for example, system engineering and software systemdevelopment in addition to staffing of a wide variety of engineers should be subsidiaries of the Joint Venture (meaning subsubsidiaries of the Company).
2. Establishment of a joint venture(1) Outline of the joint venture that was established① Name:EKITAN I&I Co., Ltd.

② Address;③ Business activities:

5-4, Kojimachi, Chiyoda Ward, Tokyo
Overall management control over the Group’s subsidiaries, etc. and any othercontingent business operations
160,000 thousand yen
April 23, 2023
90.0% by EKITAN and 10.0% by ITLHD④ Capital:⑤ Established:⑥ Capital contribution ratio:

15

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2023

3. Share acquisition by the Joint Venture(1) Summary of business combination① Name and business activities of the acquired company
a. Growth and Communications Co., Ltd.
Name of the acquired company

Business activities

Growth and Communications Co., Ltd.
•

Commissioned system development/operation•

System engineering services•

Worker dispatch businessb. Cybernet Co., Ltd.
Name of the acquired company

Business activities

Cybernet Co., Ltd.
•

Commissioned system development/operation•

Worker dispatch / SES business•

School businessc. Information Technology Japan Co., Ltd.
Name of the acquired company

Business activities

Information Technology Japan Co., Ltd.
•

Commissioned system development/operation•

Planning, development and sales of software packages•

Worker dispatch business② Date of business combination
As described under “1. Objectives of establishing the joint venture and of the share acquisition”.
③ Date of business combination
April 28, 2023
④ Legal form of business combination
Share acquisition in exchange of cash
⑤ Name of the company after combination
No change.
⑥ Percentage of voting rights acquired
100%⑦ Main ground for determining acquiring company
Since the Joint Venture acquired the shares in exchange of cash, the Joint Venture is the acquiring company.
(2) Cost of acquiring the acquired company, by type of consideration
Total acquisition cost was 320,000 thousand yen for the abovementioned three companies. It should be noted thatfor assuring fairness and validity, a third party institution calculated appropriate stock prices and examined validity of
the amount.
(3) Details and amount of major expenses related to acquisition
Advisory expenses, etc. (approximation):

15,000 thousand yen(4) Amount of goodwill that occurred, cause for the occurrence, amortization method and amortization period
Not yet established at present.
(5) Amount and principal breakdown of assets and labilities assumed on the date of business combination
Not yet established at present.

16