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, 2024

Summary of Consolidated Financial Results
for the Third 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
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

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

1. Consolidated financial results of the third quarter of FY03/2024 (April 1, 2023 – December 31, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Net sales
3Q of FY03/2024
3Q 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

%

3,044
2,373

28.3
11.9

119
200

(40.1)
(5.2)

(15)
60

－
(19.7)(11)58－(23.2)

(743)
51

－
48.2

(Note) Comprehensive profit

3Q of FY03/2024:(740) mil. yen [ －%]3Q of FY03/2023:
51 mil. yen [48.2%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill

Net profit (loss) per share
3Q of FY03/2024
3Q of FY03/2023

Diluted net profit (loss) per share

yen

yen

(153.55)
9.55－－(2) Consolidated financial position
Total assets
3Q of FY03/2024
FY03/2023(Reference) Shareholders equity

3Q of FY03/2024:
FY03/2023:

Net assets

Equity ratio

mil. yenmil. yen

%

2,677
3,152

1,689
2,487

63.1
78.9

1,689 mil. yen
2,487 mil. yen

2. Cash dividends
Annual dividends per share
1Q-endFY03/2023
FY03/2024
FY03/2024 (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 FY03/2024 (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):No(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement:

Yes(Note) For details, please see the appendix, page 7, "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 FY03/2024:

6,018,800 shares

FY03/2023:

6,018,800 shares② Number of treasury stock at the end of the period
3Q of FY03/2024:

1,176,541 shares

FY03/2023:

1,171,316 shares③ Average number of shares during the period (quarterly cumulative)
3Q of FY03/2024:

4,843,856 shares

3Q of FY03/2023:

5,411,043 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 February 8, 2024 (Thu.).

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third 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 ........................................ 6
Quarterly Consolidated Statements of Income
For the third quarter consolidated cumulative period .............................................................................................. 6
Quarterly Consolidated Statements of Comprehensive Income
For the third quarter consolidated cumulative period .............................................................................................. 6(3) 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 Third Quarter of FY03/2024

1. Qualitative Information regarding the Financial Results of the Current Quarter(1) Descriptions regarding operating results
During the current third quarter consolidated cumulative period, Japanese economy has seen progress innormalization of economic/social activities thanks to relaxation of behavioral restrictions for preventing wider spreadof infections, such as transfer of the COVID-19 infection to category 5. However, surrounded by unstableinternational 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, during the current third quarter consolidated fiscal period, Cirqua Inc. reconsidered its businessstructure and carried our cost reduction by shrinking expenses, as well as having commercial materials of new genres
contribute to revenues, could consequently restore profitability as a standalone entity. And in addition, renovation work of“BTOnline” (a service for arrangement of ticketless business trip) finally came to an end, depreciation could be shrunk by
virtue of booking of impairment loss of intangible assets such as goodwill, and as a result, operating profit and ordinary
profit of the entire Group during the period were 58,964 thousand yen and 59,747 thousand yen respectively, both of which
substantially improved.
During the current third quarter cumulative period, 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 tocreate some business that would be our new business pillar and strengthen our portfolio. As a part of such measures, theCompany acquired Proud Engine Inc. in November 2022 and established EKITAN I&I Co., Ltd. in April 2023 as its
consolidated subsidiaries, resulting in substantial increase in Net sales.
At the same time, with respect to profit of the Company, impacts of decrease in sales of services for paid subscribers
which have highly contributed to profit is considerable, and of decrease in revenues due to reduction in Cirqua Inc.’sprincipal advertising materials and distribution media were significant, and in addition, increased cost for renovation of“BTOnline” (a service for arrangement 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 lower earnings.
Concerning Net profit attributable to owners of parent, the Company had estimated future cash-flows of Cirqua Inc. anda new business of “Ekitan PICKS” in the second quarter consolidated fiscal period, then determined that it would be
difficult to recover intangible assets such as goodwill, and consequently recorded impairment loss of 793,498 thousand yen
as extraordinary loss, which resulted in recording substantial negative figure.
Consequently, financial results of the current third quarter consolidated cumulative period were as follows: Net sales:
3,044,472 thousand yen (increase by 28.3% YoY); EBITDA: 119,968 thousand yen (decrease by 40.1% YoY); Operating
loss: 15,152 thousand yen (as opposed to Operating profit of 60,094 thousand yen in the previous FY); Ordinary loss:
11,829 thousand yen (as opposed to Ordinary profit of 58,903 thousand yen in the previous FY); and Net loss attributableto owners of parent: 743,768 thousand yen (as opposed to Net profit attributable to owners of parent of 51,655 thousand
yen in 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 Business
For the current third quarter consolidated fiscal period, profit of this segment decreased YoY because of continuously
decreasing number of paid subscribers due to commoditization of Transfer Information services.
During the current third quarter cumulative period, in addition to the abovementioned continuously decreasing numberof paid subscribers, extra cost was incurred for renovation work of “BTOnline” (a service for arrangement of ticketlessbusiness trip) that was carried out during the previous consolidated FY, resulting in lower revenues/earnings.
These operations resulted in Net sales of 1,101,208 thousand yen (decrease by 7.0% YoY), EBITDA of 274,707
thousand yen (decrease by 24.4% YoY) and Segment profit of 233,726 thousand yen (decrease by 27.0% YoY).
② Advertisement Platform Business
For the current third quarter consolidated fiscal period, Cirqua Inc. reconsidered its business structure and carried ourcost reduction by shrinking expenses, as well as having commercial materials of new genres contribute to revenues, could
consequently restore profitability as a standalone entity, thus profit of this segment substantially improved.
While Proud Engine Inc. has been added to this segment since the previous third quarter consolidated fiscal period, as
for the current third quarter consolidated cumulative period, although Cirqua Inc. has shown movement towards
improvement, impacts of amendment to the PMD Act and more severe environment for Cirqua were still significant,resulting in lower revenues. In term of profit, as mentioned above, despite cost reduction by Cirqua and contribution torevenues from new commercial materials of new genres, such efforts were not enough to cover write-off cost for such as
goodwill incurred during the second quarter consolidated cumulative period, which resulted in recording segment loss.

2

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

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

These operations resulted in Net sales of 1,152,045 thousand yen (decrease by 3.2% YoY), EBITDA of 15,452
thousand yen (decrease by 71.3% YoY), and Segment loss of 59,569 thousand yen (which was 39,392 thousand yen in theprevious FY).
③ M&A/Incubation BusinessProfit of this segment increased YoY during the third quarter consolidated fiscal period, dur to such as delivery forlarge-scale projects by package sales, and cost reduction.
For the current third quarter consolidated cumulative period, Net sales was 793,801 thousand yen, EBITDA was 49,117
thousand yen, and Segment profit was 33,346 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 third
quarter consolidated cumulative period; and therefore figures are shown only for the current third quarter consolidated
cumulative period.

(2) Descriptions regarding financial position(Assets)
Current assets at the end of the current third quarter consolidated fiscal period was 2,009,846 thousand yen , i.e. increase by
141,271 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to increase in “Others”
included under Current assets by 96,009 thousand yen, in Notes, accounts receivable - trade & contract assets (which was denoted
as Accounts receivable - trade & contract assets as of the end of the previous consolidated FY) by 88,265 thousand yen, anddecrease in Cash and deposits by 46,836 thousand yen. Non-current assets was 667,725 thousand yen, i.e. decrease by 616,648
thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decrease in Goodwill by 313,796
thousand yen and in Customer-related assets by 244,977 thousand yen. As a result, Total assets was 2,677,571 thousand yen, i.e.
decrease by 475,376 thousand yen as compared to the end of the previous consolidated FY.

(Liabilities)
Current liabilities at the end of the current third quarter consolidated fiscal period was 641,734 thousand yen, i.e.
increase by 203,594 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 116,212 thousand yen and in Current portion of long-term loans payable by
60,348 thousand yen. Non-current liabilities was 346,666 thousand yen, i.e. increase by 119,832 thousand yen as comparedto the end of the previous consolidated FY. This is mainly due to increase in Long-term loans payable by 175,774 thousand
yen. As a result, Total liabilities was 988,400 thousand yen, i.e. increase by 323,427 thousand yen as compared to the endof the previous consolidated FY.

(Net assets)
Total net assets at the end of the current third quarter consolidated fiscal period was 1,689,170 thousand yen, i.e.
decrease by 798,803 thousand yen as compared to the end of the previous consolidated FY. This is due to decrease in
Retained earnings by 811,633 thousand yen. As a result, Equity ratio decreased from the end of the previous consolidated
FY by 15.8 points to 63.1%.

(3) Descriptions regarding future prospects such as consolidated performance forecasts
Considering movement of our business performance up to the current third quarter cumulative period, and because
business environment surrounding the Group tends to change drastically, it is still difficult to calculate highly reliable
figures of the Group’s performance forecasts, so we have decided not to disclose those forecasts.

3

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third 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

4

Current third quarter
consolidated fiscal period(December 31, 2023)

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

1,378,146
477,076557
17,187
1,321
136,577(1,020)2,009,846

60,98477,850313,784
272,490451,244
102,392
1,139,911

117,339
27,512
137,448
106,115
388,41583,476－
83,476
1,284,373
3,152,947

202,906(1,448)201,458
667,725
2,677,571

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2024(thousand yen)Previous consolidated FY(March 31, 2023)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' 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
Total net assets
Total liabilities and net assets

5

Current third quarter
consolidated fiscal period(December 31, 2023)

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

276,90269,508
8,626
14,707504
9,822
13,156
248,507
641,734

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

266,614
14,41151,49912,1402,000
346,666
988,400

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

291,956
306,633
1,686,443(598,290)
1,686,741－－
2,487,974
3,152,947

2,429
2,429
1,689,170
2,677,571

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2024(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, 2022 – Dec. 31, 2022) (Apr. 1, 2023 – Dec. 31, 2023)

Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit (loss)
Non-operating profit (loss)
Interest income
Dividend 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
Purchase of treasury stock
OthersTotal non-operating expenses
Ordinary profit (loss)
Extraordinary profit
Gain on forgiveness of debts
Total extraordinary profit
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

2,373,228
1,674,386
698,841
638,746
60,094

3,044,472
2,180,730
863,741
878,894(15,152)

18
－
157
1,500
－
941
111
2,729

2,403
705
80
－
963
939
384
5,476

941
2,978
－
3,920
58,903

2,098
－
54
2,153
(11,829)

18,531
18,531

－
－

－
－
－
－
－
77,43525,77951,655－51,655648
1,320*793,498
9,284
804,751(816,580)(73,895)(742,685)
1,083(743,768)(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, 2022 – Dec. 31, 2022) (Apr. 1, 2023 – Dec. 31, 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

6

51,655－51,655(742,685)
2,569(740,115)

51,655－(741,339)
1,224

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Third Quarter of FY03/2024(3) 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 third quarter consolidated
fiscal period.
(Notes on Quarterly Consolidated Statements of Income)* Impairment loss
For the current third quarter consolidated cumulative period (Apr. 1, 2023 – Dec. 31, 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 Third Quarter of FY03/2024(Segment Information)
I

Previous third 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
Business

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

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

Total
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 to adjustment
of difference)(thousand yen)

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

Amount280,803(220,708)
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 scope of
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.

8

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

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

II Current third 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

1,099,907
1,300
1,101,208
233,726
40,980－274,707

1,151,563
482
1,152,045(59,569)
45,46529,556
15,452

Total

793,001
800
793,801
33,346
4,922
10,847
49,117

3,044,472
2,583
3,047,056
207,504
91,36840,404339,277

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

Amount207,504(222,657)(15,152)

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
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 812,182 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 were previously
categorized as “Mobility Support Business” and “Advertisement Platform Business”.
It should be noted that segment information for the previous third 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 third 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.
Also, since impairment loss of goodwill was recorded for the “Advertisement Platform Business” segment,
amount of goodwill decreased accordingly. 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