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.
February 8, 2022

Summary of Consolidated Financial Results
for the Third Quarter 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://www.ekitan.co.jp/
President (in charge of Management Strategy Office)Management Strategy Office Chief& General Manager of Finance and Accounting Department
Scheduled date to file Quarterly Securities Report:
February 8, 2023
Scheduled date to commence dividend payments:
N/A
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:No

Naoyuki Kaneda
Katsuya Kojima

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

1. Consolidated financial results of the third quarter of FY03/2023 (April 1, 2022 – December 31, 2022)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Net sales

3Q of FY03/2023
3Q of FY03/2022

Operatingprofit (loss)

EBITDA*Net profit(loss)attributable toowners of parent

Ordinary
profit (loss)

mil. yen%mil. yen%mil. yen%mil. yen%mil. yen

%

2,373
2,120

11.9
42.3

200
211

(5.2)
13.1

60
74

(19.7)(47.9)

5876(23.2)(52.7)

5134

48.2(62.8)(Note) Comprehensive profit 3Q of FY03/2023:
51 mil. yen [ 48.2%]
3Q of FY03/2022:
34 mil. yen [(62.8)%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill
Net profit (loss) per share

3Q of FY03/2023
3Q of FY03/2022

Diluted net profit (loss) per share
yen

yen

9.55
6.33

－
－

(2) Consolidated financial position
Total assets

3Q of FY03/2023
FY03/2022(Reference) Shareholders equity

3Q of FY03/2023:
FY03/2022:

Net assets

Equity ratio

mil. yenmil. yen

%

3,094
3,541

2,446
2,838

79.1
80.2

2,446 mil. yen
2,838 mil. yen

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

2Q-end3Q-endYear-end

Total

yen

yen

yen

yen

yen

－
－

0.00
0.00

－
－

14.00

14.00

14.00

14.00

(Note) Revisions to dividend forecasts published most recently: No

3. Consolidated performance forecasts for FY03/2023 (April 1, 2022 – March 31, 2023)(Percentages indicate year-on-year changes)

Net sales

Full term

Operatingprofit (loss)

EBITDANet profit (loss)
attributable to owners ofparentOrdinary
profit (loss)

Net profit(loss) per sharemil. yen%mil. yen%mil. yen%mil. yen%mil. yen

%

yen

3,511

21.5

386

21.2

180

30.4

182

29.5

133

66.7

24.26

(Note) Revisions to performance forecasts published most recently: No

FOR TRANSLATION PURPOSE ONLY
*Notes(1) Changes in significant subsidiaries during the current quarter consolidated cumulative 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 6, "2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes
on Quarterly Consolidated Financial Statements".

(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement:
Yes(Note) For details, please see the appendix, page 6, "2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes
on Quarterly Consolidated Financial Statements".

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements① Changes in accounting policies due to revisions to accounting standards and other regulations: No② Changes in accounting policies due to other reasons:No③ Changes in accounting estimates:
No④ Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)① Total number of issued shares at the end of the period (including treasury stock)
3Q of FY03/2023:

6,018,800 shares

FY03/2022:

6,818,800 shares② Number of treasury stock at the end of the period
3Q of FY03/2023:

1,171,316 shares

FY03/2022:

1,309,116 shares③ Average number of shares during the period (quarterly cumulative)
3Q of FY03/2023:

5,411,043 shares

3Q of FY03/2022:

5,509,684 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. Qualitative Information regarding
the Financial Results of the Current Quarter: (3) Descriptions regarding future prospects such as consolidated
performance forecasts".
Supplementary material on financial results was posted on the Company's website on February 8, 2023 (Wed.).

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023○ Table of Contents: Appendix
1. Qualitative Information regarding the Financial Results of the Current Quarter .............................................................. 2(1) Descriptions regarding operating results...................................................................................................................... 2(2) Descriptions regarding financial position .................................................................................................................... 2(3) Descriptions regarding future prospects such as consolidated performance forecasts ................................................... 3
2. Quarterly Consolidated Financial Statements and Principal Notes ................................................................................... 4(1) Quarterly Consolidated Balance Sheets ....................................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income ........................................ 5
Quarterly Consolidated Statements of Income
For the third quarter consolidated cumulative period .............................................................................................. 5
Quarterly Consolidated Statements of Comprehensive Income
For the third quarter consolidated cumulative period .............................................................................................. 5(3) Notes on Quarterly Consolidated Financial Statements ............................................................................................... 6(Going Concern Assumption)...................................................................................................................................... 6(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ........................................................ 6(Changes in Important Subsidiaries during the Current Consolidated Cumulative Period) ........................................ 6(Application of Special Accounting Methods to the Preparation of Quarterly Consolidated Financial Statements) .. 6
(Segment Information) ................................................................................................................................................ 61

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023

1. Qualitative Information regarding the Financial Results of the Current Quarter(1) Descriptions regarding operating results
During the current third quarter consolidated cumulative fiscal period, Japanese economy has presented acertain level of recovery trend in domestic economic activities despite impacts of COVID-19 infections (8thwave) but 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 aswell as order-taking for services for corporations such as MaaS. 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”, an advertisement 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 in accordance with the revised PMD
Act, joining Proud Engine Inc. as a new subsidiary from the current third quarter consolidated cumulative fiscal period
helped increase in Net sales. Consequently, Net sales of the entire Group increased as compared to the previous 3Q of
FY03/2022.

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 forpaid subscribers which provided high profit rate, resulting in lower earnings. 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, consolidated financial results of the current third quarter consolidated cumulative period wereas follows: Net sales: 2,373,228 thousand yen (increase by 11.9% YoY); EBITDA: 200,259 thousand yen(decrease by 5.2% YoY); Operating profit: 60,094 thousand yen (decrease by 19.7% YoY); Ordinary profit:
58,903 thousand yen (decrease by 23.2% YoY); and Net profit attributable to owners of parent : 51,655 thousandyen (increase by 48.2% YoY).
Operating results of individual business segments are as follows.
① Mobility 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 throughincreased advertising revenues due to more access to Ekitan media such as Transfer Information site andassociated apps, as well as order-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, resulting in lower revenues/earnings.
These operations resulted in Net sales of 1,183,703 thousand yen (decrease by 3.2% YoY), EBITDA of
363,339 thousand yen (decrease by 21.7% YoY) and Segment profit of 320,195 thousand yen (decrease by 22.6%
YoY).
②Advertisement Platform BusinessWith respect to “Cirqua”, an advertisement 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 in accordance with the revised PMD Act, inclusion of Proud Engine
Inc. in this segment from the current third quarter consolidated fiscal period led to increased Net sales. On theother hand, as for profit, increased Net sales contributed to smaller amount of losses, but in addition to allocating
amortization of goodwill, up-front investment in enhancement 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 1,189,525 thousand yen (increase by 32.4% YoY), EBITDA of
53,812 thousand yen (which was 3,991 thousand yen in the 3Q/FY2022) and Segment loss of 39,392 thousandyen (which was 67,775 thousand yen in the 3Q/FY2022).

2

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023(2) Descriptions regarding financial position(Assets)
Current assets was 1,801,881 thousand yen at the end of the current third quarter consolidated fiscal period, i.e.
decrease by 620,814 thousand yen as compared to the end of the previous consolidated FY. This is mainly due todecrease in Cash and deposits by 646,330 thousand yen, and increase in Accounts receivable - trade & contract assets
by 13,183 thousand yen. Non-current assets was 1,292,498 thousand yen, i.e. increase by 173,688 thousand yen ascompared to the end of the previous consolidated FY. This is mainly due to increase in Software by 57,045 thousand
yen, increase in Goodwill by 49,048 thousand yen, and increase in Intangible assets - Others by 60,807 thousand yen.
As a result, Total assets was 3,094,379 thousand yen, i.e. decrease by 447,126 thousand yen as compared to the end of
the previous consolidated FY.

(Liabilities)
Current liabilities was 386,260 thousand yen at the end of the current third quarter consolidated fiscal period, i.e.
decrease by 17,465 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to increasein Accounts payable - trade by 37,434 thousand yen, decrease in Income taxes payable by 44,260 thousand yen andincrease in Provision for bonuses by 12,533 thousand yen. Non-current liabilities was 261,577 thousand yen, i.e.
decrease by 37,263 thousand yen as compared to the end of the previous consolidated FY. This is mainly due todecrease in Current liabilities - Others by 37,098 thousand yen. As a result, Total liabilities was 647,837 thousand yen,i.e. decrease by 54,728 thousand yen as compared to the end of the previous consolidated FY.

(Net assets)
Total net assets was 2,446,541 thousand yen at the end of the current third quarter consolidated fiscal period, i.e.
decrease by 392,398 thousand yen as compared to the end of the previous consolidated FY. This is due to decrease in
Retained earnings by 470,025 thousand yen. As a result, Equity ratio decreased from the end of the previous
consolidated FY by 1.1 points to 79.1%.

(3) Descriptions regarding future prospects such as consolidated performance forecasts
Concerning the consolidated performance forecasts for the full term of FY03/2023, although Proud Engine Inc. has
been a consolidated subsidiary from the 3Q of the current consolidated fiscal period, at present its influence has been sosmall that the Company considered it did not need to amend these performance forecasts and thus they are same as thoseannounced on May 11, 2022.

3

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(thousand yen)Previous consolidated
fiscal year
(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
Intangible assets
Software
Customer-related assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
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

4

Current third quarter
consolidated fiscal period(December 31, 2022)

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

1,433,246
334,326
1,941
1,778
31,048(459)
1,801,881

70,96467,496

256,886
266,546
415,890
19,007
958,330
89,514
1,118,810
3,541,506

313,931
279,435
464,939
79,814
1,138,120
86,881
1,292,498
3,094,379

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

205,261
3,394－
13,156
164,448386,260

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

100,000
21,42014,412
123,7442,000
261,577
647,837

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

291,956
293,5312,456,644(595,589)
2,446,541
2,446,541
3,094,379

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the third quarter consolidated cumulative period)(thousand yen)Previous third quarter
Current third quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2021 – Dec. 31, 2021) (Apr. 1, 2022 – Dec. 31, 2022)

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
Total non-operating expenses
Ordinary profit (loss)

2,120,616
1,393,847

2,373,228
1,674,386

726,768
651,953
74,815

698,841
638,746
60,094

17
138
1,600
941
107
2,805

18
157
1,500
941
111
2,729

958
0
－
958
76,661

941
－
2,978
3,920
58,903Gain on forgiveness of debts－

18,531

Total extraordinary profit－

18,531

188－

188
76,472
41,618－77,43525,77934,85434,85451,65551,655Extraordinary profit

Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Net profit (loss) before income taxes and minority interests
Income taxes
Net profit (loss)
Profit (loss) attributable to owners of parent(Quarterly Consolidated Statements of Income)(For the third quarter consolidated cumulative period)(thousand yen)Previous third quarter
Current third quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2021 – Dec. 31, 2021) (Apr. 1, 2022 – Dec. 31, 2022)

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

534,85434,85451,65551,65534,85451,655

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023(3) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
The Company, based on the decisions taken at its board meeting held on November 9, 2022, purchased 746,200
shares of its treasury stock as of November 10, 2022, and then canceled 800,000 shares of its treasury stock as ofNovember 30, 2022. Consequently, during the current third quarter consolidated cumulative fiscal period Retained
earnings and Treasury stock decreased by 406,783 thousand yen and 34,429 thousand yen respectively; and accordingly
the former was 2,456,644 thousand yen and the latter was 595,589 thousand yen at the end of the current third quarter
consolidated fiscal period.
(Changes in Important Subsidiaries during the Current Consolidated Cumulative Period)
During the third quarter consolidated fiscal period, Proud Engine Inc. became a subsidiary of the Company by shareacquisition, and therefore it has been included in the scope of consolidation. Proud Engine Inc. is a specified subsidiaryof the Company.
(Application of Special Accounting Methods to the Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
Tax expenses are calculated by multiplying the net profit before income taxes by a reasonably evaluated effective
tax rate on the net profit before income taxes for the consolidated fiscal year including the current third quarter
consolidated fiscal period.
(Segment Information)
I

Previous third quarter consolidated cumulative period (Apr. 1, 2021 – Dec. 31, 2021)

1. Information on net sales and profit/loss of each reportable segment(thousand yen)

Mobility Support
Business
Net sales
Sales to external customers
Inter-segment sales or transfer
Total
Segment profit (loss)
Depreciation
Amortization of goodwill
EBITDA (see Note)

Reportable segments
Advertisement Platform
Business

1,222,202
1,222,202
413,549
49,3781,295
464,222

Total

898,414－
898,414(67,775)
37,181
34,585
3,991

2,120,616
2,120,616
345,773
86,56035,880468,214

Note: EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

2. Difference between the total amount of profit or loss of reportable segments and the amount presented on the
Quarterly Consolidated Statements of Income; and main contents of said difference (items in relation toadjustment of difference)(thousand yen)

ProfitAmountReportable segments total

345,773

Corporate expenses (see Note)(270,958)

Operating profit (loss)
on the Quarterly Consolidated Statements of Income

74,815

Note: Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.

3.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment(Significant changes in amount of goodwill)In the “Advertisement Platform Business” segment, Cirqua, Inc. has been included in the scope of
consolidation due to acquisition of its shares during the first quarter consolidated fiscal period.

6

EKITAN Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2023

II Current third quarter consolidated cumulative period (Apr. 1, 2022 – Dec. 31, 2022)
1. Information on net sales and profit/loss of each reportable segment(thousand yen)

Mobility Support
Business
Net sales
Sales to external customers
Inter-segment sales or transfer
Total
Segment profit (loss)
Depreciation
Amortization of goodwill
EBITDA (see Note)

Reportable segments
Advertisement Platform
Business

1,183,703－
1,183,703
320,195
42,280863
363,339

Total

1,189,525－
1,189,525(39,392)
56,45236,75253,812

2,373,228－
2,373,228
280,803
98,73337,615417,152

Note: EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

2. Difference between the total amount of profit or loss of reportable segments and the amount presented on the
Quarterly Consolidated Statements of Income; and main contents of said difference (items in relation toadjustment of difference)(thousand yen)

ProfitAmountReportable segments total

280,803

Corporate expenses (see Note)(220,708)

Operating profit (loss)
on the Quarterly Consolidated Statements of Income

60,094

Note: Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.

3. Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment(Significant changes in amount of goodwill)In the “Advertisement Platform Business” segment, Proud Engine Inc. has been included in the scopeof consolidation due to acquisition of its shares during the current third quarter consolidated fiscal period.
This event caused increase in the amount of goodwill by 84,497 thousand yen in the current third
quarter consolidated fiscal period.

7