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.
November 9, 2023

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year ending March 31, 2024 (FY03/2024)[Japanese GAAP]
Company name:
EKITAN & Co., Ltd.
Stock exchange listing: Tokyo
Securities code:
3646
URL:
https://ekitan.co.jp/
Representative:
President, CEO and COO
Naoyuki Kaneda
Inquiries:
Director and CFO
Katsuya Kojima
TEL: 81-3-6367-5951
Scheduled date to file Quarterly Securities Report:
November 9, 2023
Scheduled date to commence dividend payments:
N/A
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors)(Amounts less than one mil. yen are rounded down)

1. Consolidated financial results of the second quarter of FY03/2024 (April 1, 2023 – September 30, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Net sales
2Q of FY03/2024
2Q of FY03/2023

Operatingprofit (loss)

EBITDA*

Ordinary
profit (loss)

Net profit (loss) attributableto owners of parent

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

%

1,941
1,529

26.9
(1.2)

37
153

(75.7)
(1.6)

(74)
63

－
0.8

(71)
65

－
2.0

(794)
48

－
62.3

(Note) Comprehensive profit

2Q of FY03/2024:(791) mil. yen [－%]
2Q of FY03/2023:
48 mil. yen [62.3%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill

Net profit (loss) per share
2Q of FY03/2024
2Q of FY03/2023

Diluted net profit (loss) per share

yen

yen

(163.91)
8.85－－(2) Consolidated financial position
Total assets
2Q of FY03/2024
FY03/2023(Reference) Shareholders equity

2Q of FY03/2024:
FY03/2023:

Net assets

Equity ratio

mil. yenmil. yen

%

2,644
3,152

1,666
2,487

61.8
78.9

1,633 mil. yen
2,487 mil. yen

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

2Q-end3Q-end

yen

yen

－
－

0.00
0.00
0.00

Year-end
yen

Total
yen

yen

14.00

14.00

14.00

14.00

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

3. Consolidated performance forecasts for FY03/2024 (April 1, 2023 – March 31, 2024)
The Company decided not to disclose its quarterly consolidated performance forecasts for FY03/2024. For details, 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".

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):
New: 1(name) EKITAN I&I Co., Ltd.
Excluded: None
(Note)Yes

For details, please see the appendix, page 7, "3. Consolidated Financial Statements and Principal Notes, (4)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 7, "3. Consolidated Financial Statements and Principal Notes, (4) 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)
2Q of FY03/2024:

6,018,800 shares

FY03/2023:

6,018,800 shares② Number of treasury stock at the end of the period
2Q of FY03/2024:

1,176,541 shares

FY03/2023:

1,171,316 shares③ Average number of shares during the period (quarterly cumulative)
2Q of FY03/2024:

4,844,659 shares

2Q of FY03/2023:

5,531,258 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 materials on financial results was posted on the Company's website on November 9, 2023 (Thu.).

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024○ 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 .................................................................................................................... 3(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 second quarter consolidated cumulative period .......................................................................................... 5
Quarterly Consolidated Statements of Comprehensive Income
For the second quarter consolidated cumulative period .......................................................................................... 5(3) Quarterly Consolidated Cash Flow Statements............................................................................................................ 6(4) Notes on Quarterly Consolidated Financial Statements ............................................................................................... 7(Going Concern Assumption)...................................................................................................................................... 7(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ........................................................ 7(Changes in Important Subsidiaries during the Current Consolidated Cumulative Period) ........................................ 7(Application of Special Accounting Methods to the Preparation of Quarterly Consolidated Financial Statements) ............... 7(Notes on Quarterly Consolidated Statements of Income) .......................................................................................... 7(Segment Information) ................................................................................................................................................ 81

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024

1. Qualitative Information regarding the Financial Results of the Current Quarter(1) Descriptions regarding operating results
During the current second quarter consolidated cumulative period, Japanese economy has seen progress innormalization of economic/social activities thanks to relaxation of behavioral restrictions for preventing wider spread of
infections, such as transfer of the COVID-19 infection to category 5. However, surrounded by unstable international
circumstances, economic trends are still in unpredictable situations due to, for example, prices of raw materials and energy
resources remaining at high levels, and price escalation against the backdrop of weaker yen.
In such situations, our services for paid subscribers such as Transfer Information, being the Group’s business pillars,
have continuously experienced lower revenues associated with the trend towards decreasing number of paid subscribers,
affected by market environment including commoditization, so it is urgently necessary to create some business that would
be our new business pillar and strengthen our portfolio. As a part of such measures, the Company acquired Proud Engine
Inc. in November 2022 and established EKITAN I&I Co., Ltd. in April 2023 as its consolidated subsidiaries, resulting insubstantial increase in Net sales.
At the same time, with respect to profit, impact of decrease in services for paid subscribers which have highly
contributed to profit is considerable, and in addition, increased cost for renovation of “BTOnline” (a service forarrangement of ticketless business trip) that was carried out during the previous consolidated FY, and temporarily incurred
cost of establishment and share-acquisition of EKITAN I&I Co., Ltd. resulted in recording losses.
In addition, revenues and earnings of Cirqua, Inc. have substantially decreased because of impacts of amendments to
the PMD Act and of even more severe business environment for Cirqua, forcing them to diminish their principal
advertising materials and advertisement media.
Consequently, financial results of the current second quarter consolidated cumulative period were as follows: Net sales:
1,941,207 thousand yen (increase by 26.9% YoY); EBITDA: 37,302 thousand yen (decrease by 75.7% YoY); Operating
loss: 74,117 thousand yen (as opposed to Operating profit of 63,536 thousand yen in the previous FY); and Ordinary loss:
71,577 thousand yen (as opposed to Ordinary profit of 65,212 thousand yen in the previous FY).
Moreover, given the change in external environment around Cirqua which is our consolidated subsidiary, we haveestimated future cash flows based on our business plan that was already reviewed, and consequently we determined that it
would be difficult to recover our intangible assets like goodwill, and additionally, because one of our new businesses called“Ekitan PICKS” was impacted by the changes made to the criteria for judging Web search results ranking on search engines(algorithm) and thus there are significant delays in our initial plan, impairment loss of 793,498 thousand yen was recorded
as extraordinary loss.
As a result, Net loss attributable to owners of parent was 794,068 thousand yen (as opposed to Net profit attributable toowners of parent of 48,932 thousand yen recorded for the previous FY).
Operating results of individual business segments are as follows.
Please note that in conjunction with the establishment of EKITAN I&I Co., Ltd., from the preceding first quarter
consolidated fiscal period, M&A/Incubation Business segment has been newly added.
① Mobility Support BusinessThis segment experienced downward trend because of continuously decreasing number of paid subscribers due tocommoditization of Transfer Information service. Moreover, increased cost for renovation of “BTOnline” (a service forarrangement of ticketless business trip) that was carried out during the previous consolidated FY, resulted in lower
revenues/earnings.
These operations resulted in Net sales of 740,501 thousand yen (decrease by 6.2% YoY), EBITDA of 186,637 thousandyen (decrease by 26.8% YoY) and Segment profit of 159,822 thousand yen (decrease by 29.6% YoY).
② Advertisement Platform Business
Adding Proud Engine Inc. to this segment since the previous third quarter consolidated fiscal period contributed tohigher revenues, but nevertheless revenues and earnings of Cirqua, Inc. have substantially decreased because of impacts ofamendments to the PMD Act and of even more severe business environment for Cirqua, forcing them to diminish theirprincipal advertising materials and advertisement media, which resulted in recording segment loss.
These operations resulted in Net sales of 678,734 thousand yen (decrease by 8.3% YoY), EBITDA of minus 25,995
thousand yen (which was 41,456 thousand yen in the 2Q of FY03/2023) and Segment loss of 97,964 thousand yen (which
was 17,544 thousand yen in the 2Q of FY03/2023).
③ M&A/Incubation BusinessNet sales was 522,762 thousand yen, EBITDA was 23,632 thousand yen, and Segment profit was 13,211 thousand yen.
It should be noted that as this segment has been newly added after establishing EKITAN I&I Co., Ltd. on April 25, 2023,
no comparable figures are available for the previous second quarter consolidated cumulative period; and therefore figures
are shown only for the current second quarter consolidated cumulative period.

2

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024(2) Descriptions regarding financial position(Assets)
Current assets at the end of the current second quarter consolidated fiscal period was 1,994,223 thousand yen , i.e. increase by
125,648 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to increase in Notes, accounts
receivable - trade & contract assets (which was denoted as Accounts receivable - trade & contract assets as of the end of theprevious consolidated FY) by 94,791 thousand yen, in Cash and deposits by 16,843 thousand yen, and in “Others” included under
Current assets by 3,485 thousand yen. Non-current assets was 650,578 thousand yen, i.e. decrease by 633,794 thousand yen ascompared to the end of the previous consolidated FY. This is mainly due to decrease in Goodwill by 307,958 thousand yen and in
Customer-related assets by 244,090 thousand yen.
As a result, Total assets was 2,644,801 thousand yen, i.e. decrease by 508,146 thousand yen as compared to the end of theprevious consolidated FY.

(Liabilities)
Current liabilities at the end of the current second quarter consolidated fiscal period was 622,793 thousand yen, i.e.
increase by 184,653 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to increase in“Others” included under Current liabilities by 106,092 thousand yen and in Current portion of long-term loans payable by
63,123 thousand yen. Non-current liabilities was 355,264 thousand yen, i.e. increase by 128,431 thousand yen as comparedto the end of the previous consolidated FY. This is mainly due to increase in Long-term loans payable by 185,495 thousand
yen and in Liabilities on retirement benefits by 49,980 thousand yen.
As a result, Total liabilities was 978,057 thousand yen, i.e. increase by 313,084 thousand yen as compared to the end of
the previous consolidated FY.

(Net assets)
Total net assets at the end of the current second quarter consolidated fiscal period was 1,666,743 thousand yen, i.e.
decrease by 821,231 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decrease
in Retained earnings by 861,933 thousand yen.
As a result, Equity ratio decreased from the end of the previous consolidated FY by 17.1 points to 61.8%.

(3) Descriptions regarding future prospects such as consolidated performance forecasts
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. For details, please refer to "Notices
on recording extraordinary loss (impairment loss), on differences between performance forecasts and actual achievementsof the second quarter cumulative period of FY03/204, and on amendment to the full term performance forecasts” releasedon November 9, 2023.

3

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(thousand yen)Previous consolidated FY(March 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes, accounts receivable - trade & contract assets
MerchandiseWork 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
OthersAllowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
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
Asset retirement obligations
Liabilities on retirement benefits
Deferred tax liabilities
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

Current second quarter
consolidated fiscal period(September 30, 2023)

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

1,441,826
483,602786
23,482
1,515
44,052(1,042)
1,994,223

60,984

70,133313,784
272,490451,244
102,392
1,139,911

118,289
28,400143,285
94,848384,823

83,476－
83,476
1,284,373
3,152,947

197,084(1,463)
195,621650,578
2,644,801

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

195,303
72,28325,09869,3209,244
13,156238,386
622,793

90,84014,411－
119,5812,000
226,833
664,973

276,335
14,411
49,98012,5372,000
355,264
978,057

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

291,956
302,446
1,636,144(598,290)
1,632,255－－－
2,487,974
3,152,947

1,263
1,263
33,224
1,666,743
2,644,801

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the second quarter consolidated cumulative period)(thousand yen)Previous second quarter
Current second quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)

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
Surrender value of insurance
Interest subsidy
OthersTotal non-operating profit (loss)
Non-operating expenses
Interest expenses
OthersTotal non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Loss on retirement of non-current assets
Loss on cancellation of lease contracts
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses
Net profit (loss) before income taxes and minority interests
Income taxes
Net profit (loss)
Profit (loss) attributable to non-controlling shareholders
Profit (loss) attributable to owners of parent

1,529,671
1,063,502

1,941,207
1,400,882

466,168
402,631
63,536

540,324
614,442(74,117)

14
61
1,500
－
626
100
2,301

1,738
80
－
812
625
701
3,957

626
－
626
65,212

1,363
54
1,417
(71,577)－－－－－
65,212
16,27948,932－
48,932130
1,320※ 793,498
9,284
804,233(875,810)(82,825)(792,984)
1,083(794,068)(Quarterly Consolidated Statements of Income)(For the second quarter consolidated cumulative period)(thousand yen)Previous second quarter
Current second quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)

Net profit (loss)
Valuation difference on available-for-sale securities
Comprehensive income (loss)(detail)Comprehensive income (loss) attributable to owners of parent
Comprehensive income attributable to non-controlling interests

548,932－
48,932(792,984)
1,403(791,580)

48,932－(792,804)
1,224

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024(3) Quarterly Consolidated Cash Flow Statements(thousand yen)Previous second quarter
consolidated cumulative
period(Apr. 1, 2022
- Sep 30, 2022)

Cash flows from operating activities
Net profit (loss) before income taxes and minority interests
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in provision for directors' retirement benefits
Interest income
Interest expenses
Decrease (increase) in notes and accounts receivable - trade & contract assets
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in liabilities for retirement benefits
Increase (decrease) in provision for loss on order received
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
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
Purchase of intangible assets
Payments into time deposits
Proceeds from withdrawal of time deposits
Collection of short-term loans receivable
Payments of leasehold and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payments for acquisition of new consolidated subsidiary
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of short-term borrowings
Repayments of long-term borrowings
Dividends paid
Proceeds from share issuance to non-controlling shareholders
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at the end of the quarter

6

Current second quarter
consolidated cumulative
period(Apr. 1, 2023
- Sep. 30, 2023)

65,21265,747－23,920
(97)
383
1,080
(14)
626
6,208
(1,066)(13,831)－－－－－(24,681)
123,48814－
0(41,773)
81,730(875,810)
76,797
793,498
34,622(193)
20,680－(1,738)1,363
108,130
3,635(69,751)(912)(3,963)
143
9,284
130
31,767
127,683
1,738
(690)
150
(19,968)
108,913)(4,510)(169,684)
－
－
－
－
2,000
－
(172,194)(14,555)(57,675)(6,300)4,800
90,000(10,412)2,460(97,102)(88,785)－－(76,750)－(76,750)(167,214)
2,079,577
1,912,362(5,000)(27,744)(67,572)
32,000(68,316)(48,188)
1,424,983
1,376,794

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024(4) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Changes in Important Subsidiaries during the Current Consolidated Cumulative Period)
During the first quarter consolidated fiscal period, EKITAN I&I Co., Ltd. was newly established and has been includedin the scope of consolidation. EKITAN I&I Co., Ltd. is a specified subsidiary of the Company.
In addition, although not applicable to changes in particular subsidiaries, during the first consolidated fiscal period,
EKITAN I&I Co., Ltd. acquired Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information Technology
Japan Co., Ltd. as its subsidiaries, all of which have been included in the scope of consolidation.
(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 second quarter consolidated
fiscal period.
(Notes on Quarterly Consolidated Statements of Income)* Impairment loss
For the current second quarter consolidated cumulative period (Apr. 1, 2023 – Sep. 30, 2023)
Considering the change in external environment around Cirqua, Inc. which is our consolidated subsidiary, and that oneof our new businesses called “Ekitan PICKS” has experienced significant delays in its initial plan, relevant intangible assets
like goodwill are recorded as impairment loss (extraordinary loss).

7

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024(Segment Information)
I

Previous second quarter consolidated cumulative period (Apr. 1, 2022 – Sep. 30, 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
M&A/Incubation
PlatformBusiness
Business789,214－789,214226,953
27,320863
255,137

Total

－
－
－
－
－
－
－

740,457－
740,457(17,544)
35,94423,05741,456

1,529,671－
1,529,671
209,408
63,26523,920296,594

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 to adjustment
of difference)(thousand yen)

ProfitReportable segments total
Corporate expenses (see Note)
Operating profit (loss)
on the Quarterly Consolidated Statements of Income

Amount209,408(145,871)
63,536

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
Not applicable.

II Current second quarter consolidated cumulative period (Apr. 1, 2023 – Sep. 30, 2023)
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
M&A/Incubation
PlatformBusiness
Business

739,710791
740,501
159,822
26,815－
186,637

678,734－
678,734(97,964)
44,57727,390(25,995)

522,762－
522,762
13,211
3,189
7,231
23,632

Total
1,941,207
791
1,941,999
75,06974,582
34,622
184,274

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 to adjustment
of difference)(thousand yen)

ProfitReportable segments total
Corporate expenses (see Note)
Operating profit (loss)
on the Quarterly Consolidated Statements of Income

Amount75,069(149,187)(74,117)

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

8

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Second Quarter of FY03/2024

3.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment

During the first consolidated fiscal period, EKITAN I&I Co., Ltd. was established, which thereafter acquired
shares of Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information Technology Japan Co., Ltd., allof which have been included in the scope of consolidation.
Consequently, amount of assets of reportable segments of the Company during the current second quarter
consolidated fiscal period increased by 845,890 thousand yen for the newly added “M&A/Incubation Business” ascompared to the end of the previous consolidated FY.
4.

Information on changes in reportable segments, etc.
From the first quarter consolidated fiscal period, in association with establishment of EKITAN I&I Co., Ltd.
which jointly manages “M&A/Incubation Business” of the Group, reportable segments have been categorized as“Mobility Support Business”, “Advertisement Platform Business” and “M&A/Incubation Business”, which werepreviously categorized as “Mobility Support Business” and “Advertisement Platform Business”.
It should be noted that segment information for the previous second quarter consolidated cumulative period isdisclosed based on the categories of reportable segments after such change.

5.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment(Important impairment loss on non-current assets)
Impairment loss on non-current assets was recorded for the “Advertisement Platform Business” segment.
Recorded amount of the impairment loss was 793,498 thousand yen in the current second quarter consolidated
cumulative period.
(Significant changes in amount of goodwill)In the “M&A/Incubation Business” segment, during the first consolidated fiscal period, EKITAN I&I Co., Ltd.
acquired shares of Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information Technology Japan
Co., Ltd., all of which have been included in the scope of consolidation. This event caused increase in the amount of
goodwill by 68,961 thousand yen in the first quarter consolidated fiscal period.
This event caused decreased in the amount of goodwill by 345,855 thousand yen in the first quarter consolidated
cumulative period. This event caused decrease in the amount of goodwill by 345,855 thousand yen in the current
second quarter consolidated cumulative period.
Meanwhile, the amount as described in the paragraph (Important impairment loss on non-current assets) above
includes this impairment of goodwill.

9