Supplementary Materials on Financial Results
Second Quarter of FY03/2024

November 9, 2023

EKITAN&Co., Ltd.
TSE Growth: 3646
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Table of Contents
FY03/2024, 1-2Q

Section 1

Financial results overview:
1-2Q of FY03/2024 (company-wide)

P3

Section 2

Financial results overview:
1-2Q of FY03/2024 (by segment)

P9

Section 3

RMP framework

P15

Section 4

About performance forecasts of FY03/2024

P22

Section 5

TopicsP24

Copyright© 駅探. All Rights Reserved2Section 1
Financial results overview
1-2Q of FY03/2024(company-wide)

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3

Highlights
FY03/2024, 1-2Q

Higher revenues / Lower earnings
Net sales

EBITDA

Operating profit+26.9%–75.7%

N/A(+/– % YoY)

(mil. yen)

63

1,941

153

1,529

–74

37
2023
1-2Q

2024
1-2Q

2023
1-2Q

2024
1-2Q

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2023
1-2Q

2024
1-2Q
4

Highlights
FY03/2024, 1-2Q

Factors of Higher revenues / Lower earnings(YoY)

Net sales

1,941 mil. yen+26.9％

411 mil. yen

FY2023

1,529 mil. yen

EBITDA

37 mil. yen–75.7％–115 mil. yen

FY2023153 mil. yen

Operating profit–74 mil. yen

N/A–137 mil. yen

FY202363 mil. yen

Factors of higher revenues

Factors of lower revenues

M&A/Incubation Business: EKITAN I&I

Decrease in sales by Cirqua, Inc.

Became a consolidated subsidiary in Apt. 2023 and has contributed to higher
revenues in the current FY

Reduction in major commodities and major media

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

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

Factors of lower revenues
Decrease in sales by Cirqua, Inc.
Increased cost for BTOnline
Increased cost for renovating “BTOnline” (a service for arrangement of ticketless business trip)

Decrease in services for paid subscribers
Temporarily incurred costs in relation to establishment and shareacquisition of EKITAN I&I
Expenses for due diligence, company registration and others
Copyright© 駅探. All Rights Reserved5About allocating extraordinary loss (impairment loss)
FY03/2024, 全社
1-2Q

Extraordinary loss (impairment loss) was allocatedin the financial closing of the 2Q of FY03/2024
Amount of the impairment loss: 793 mil. yen< Reasons for impairment >Cirqua, Inc.
Since the amendment to the PMD Act in Japan, with respect to advertisement of complex
commercial materials by Ad-network system of Cirqua, the market has tended to diminish
such as reduction in commodities for advertising and in advertisement media, andconsequently, business performance of Cirqua has stayed at lower levels than as initially
expected.

Vertical media
Because of tightened regulations on domain lending where evaluation of a search result could
be lowered in case of inconsistent theme of a website, effects of advertisement on revenues
were much lower than as initially planned.

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6Consolidated Profit and Loss Statement
FY03/2024, 1-2Q

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

2023
1-2Q

ratio to sales

2024
1-2Q

ratio to sales+/–%+/– amount

Net sales

1,529

100.0%

1,941

100.0%+26.9%+441

Cost of sales

1,063

69.5%

1,400

72.2%

+31.7%+337

Gross profit

466

30.5%

540

27.8%

+15.9%+74

SG&A expenses

402

26.3%

614

31.7%

+52.6%+211

Operating profit

63

4.2%

–74

–3.8%

N/A

–137

Ordinary profit

65

4.3%

–71

–3.7%

N/A

–136

Net profit
attributable toowners of parent

48

3.2%

–794

–40.9%N/A–843

EBITDA

153

10.0%

37

1.9%

–75.6%–115

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7

Consolidated Balance Sheet
FY03/2024, 1-2Q

Consolidated Balance Sheet(YoY)(mil. yen)

Total current assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets

Total assets

2024
1-2Q

2023
1-2Q

2,260
73

1,040
87

+/–
amount

1,994

70

–266
–3

384

–655

197

109

1,201

650

–550

3,461

2,644

–816

(mil. yen)

2023
1-2Q

2024
1-2Q

+/–
amountTotal current liabilities

365

622

257

Total non-current liabilities

283

355

71

648

978

329

Capital stock

291

291

N/A

Retained earnings

2,857

1,636

–1,221

Treasury stock

–630

–598

–31

Total shareholders’ equity

2,812

1,632

–1,180

2,812

1,666

–1,146

3,461

2,644

–816

Total liabilities

Total net assets
Total liabilities and net assets

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

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9Proportions by segment
FY03/2024, 1-2Q

Proportions of net sales are almost
the same for the three segments
Negative EBITDA in Advertisement Platform Business is offset
by Mobility Support Business and Mobility Support BusinessNet sales

EBITDA(FY2024, 1-2Q)(FY2024, 1-2Q)

26.9%
M&A/Incubation
Business

Mobility Support Business

38.1%
Mobility
SupportBusiness

Advertisement
Platform Business

35.0%

184 mil. yen

Advertisement Platform
M&A・インキュ–24 mil. yen
Business
ベーション事業
M&A/Incubation Business
Total

モビリティ

モビリティ
サポート事業
サポート事業Copyright© 駅探. All Rights Reserved

23 mil. yen
184 mil. yen

10

Mobility Support Business
FY03/2024, 全社
1-2Q

Lower revenues / Lower earnings(YoY)

740 mil. yen
186 mil. yen
159 mil. yen

Net sales
EBITDA
Segment profit–6.2％–48 mil. yen

FY2023789 mil. yen–26.8％–68 mil. yen

FY2023

255 mil. yen–29.6%–67 mil. yen

FY2023226 mil. yen(mil. yen)

Factor 1: Lower revenues / Lower earnings
This segment experienced downward trend
because of continuously decreasing number ofpaid subscribers due to commoditization ofTransfer Information service

789

Factor 2: Lower earnings

740
255

186
2023
1-2Q

2024
1-2Q

Net sales

2023
1-2Q

2024
1-2Q

EBITDA

226

159
2023
1-2Q

Additional cost was incurred for renovation of“BTOnline” (a service for arrangement ofticketless business trip) which had alreadycarried out during the previous consolidated FY

2024
1-2Q

Segment profit
Copyright© 駅探. All Rights Reserved11Advertisement Platform Business
FY03/2024, 1-2Q

Net sales, EBITDA, and Segment profit decreased(YoY)

678 mil. yen–25 mil. yen–97 mil. yen

Net sales

EBITDA
Segments loss

–8.3％

–61 mil. yen

FY2023740 mil. yen

N/A–67 mil. yen

FY202341 mil. yen

N/A–80 mil. yen

FY2023–17 mil. yen(mil. yen)

Factor 1: Higher revenues / Higher earnings
Proud Engine Inc.

-17

Since it was added to this segment in the 3Q
consolidated cumulative fiscal period of FY03/2023,
both revenues and earnings increased YoY.

41
740

-97

678

Cirqua, Inc.

-25
2023
1-2Q

2024
1-2Q

Net sales

Factor 2: Lower revenues / Lower earnings

2023
1-2Q

2024
1-2Q

EBITDA

Market contraction because of amendment to the PMD
Act and worsened business environment for Cirqua(suspended advertisement in major media)
2023
1-2Q

2024
1-2Q

Segments loss
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12M&A/Incubation Business
FY03/2024, 全社
1-2Q

New segment* YoY not applicable

522 mil. yen
23 mil. yen
13 mil. yen

Net sales

EBITDA
Segment profit

N/A

N/A

FY2023

N/A

N/A

N/A

FY2023

N/A

N/A

N/A

FY2023

N/A

Background(mil. yen)This segment was newly added due toestablishment of EKITAN&Co., Ltd. on April 25,
2023* No data is available on the previous FY for comparison,
figures are given only for the current 2Q

522
23

13
2023
1-2Q

2024
1-2Q

Net sales

2023
1-2Q

2024
1-2Q

EBITDA

2023
1-2Q

2024
1-2Q

Segment profit
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13Current progress in primary measures (FY03/2024, 1-2Q)
Framework
Progress of RMP (Regional Marketing Platform) framework
Strategies

Measures

Progress【Media business】
・Facilitating the RMP framework- Enhancement of media (Ekitan PICKS, Ekitan LOCAL, and Ekitan
Odekake-Lab- Increase in inflows via search engines with keywords “region XX” dueto obtaining more inbound links and adding regional contents- More revenues from Ad-net/affiliate advertising(By becoming a regionally powerful site attracting more users, visitors
to the media should be increased)

RMP strategies*【Advertisement business】
・ Sales expansion by advertisement media
・ Expansion of Proud Engine and Cirqua (matching of advertisers andmedia)(Applying both companies’ own technologies relating to advertisement
and other elements to the RMP framework will lead to revenue
expansion)【Solutions business】
・ Development of solutions services in line with the RMP framework
For municipalities and railway companies- (services related to transfer information for corporations)
・ Providing services which contribute to regional revitalization- Promotion services for municipalities and railway companies- MaaS package- Development of new solutions services

M&A/alliancestrategy

・ Faster promotion of M&A/Incubation Business•

Region-based contents will be added (e.g. real-estate, hotel,
tourist spot)•

Improved link functions of EKITAN.com•

Strengthened cooperation with regional media (partnering withthree companies is under consideration)•

Linkage and promotion with other media started in order to stop
decrease in paid subscribers (courtesy discount services)
started (Aug. 2023)•

Expansion of commercial materials handled by Cirqua•

Utilization of Cirqua’s Ad-network to build up region-based
advertisement systems→Introduction is under consideration with one media
company•

Promotion of joint development with companies having tools to
operate LINE official accounts→To be released in Dec. 2023•

Development of promotion services for municipalities andrailway companies→ Test marketing with municipalities is under consideraition•

M&A and alliance are proactively considered/promoted in orderfor realizing RMP framework

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14Section３
RMP framework
RMP: Regional Marketing Platform

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15

RMP framework
FY03/2024, 1-2Q

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

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

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

housing

tourist site

clinicgym

meal

incorporate

schoolconnect

flightbus stop
public facility

stationentertainment parking

stationhotel

bus
stationIncorporating information on users and business entities

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

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

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16Image of business growth
FY03/2024, 1-2Q

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

Realization of RMP framework
Solutions business

Advertisementbusiness
Media business

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

Transfer information business
By increasing contents, inbound links, clients, and partner websites,business models of value accumulation are built up to expand revenue
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17Strategies (summary)
FY03/2024, 1-2Q

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

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18Strategy 1: To transform EKITAN.com to RMP (Media business)
FY03/2024, 1-2Q

By optimizing link structure of Ekitan media and by increasing regional information, contents andinbound links, inflow from search results with regional keywords (which would be presented at higher
positions) will be increased, leading to expansion of revenues from advertising✖

UU

Revenue model(unique user)✖

Page Per
SessionPV unit price

Measures

送客(regional media)

Ekitan LOCAL

more inbound links

more contents(tourism, special products,
gourmet, hotel, etc.)(municipalities, tourism
associations, corporationsof tourism and regional
revitalization)

Measures
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optimization oflink structure

attracting
guestssending
customerscommodities of EC
and mail order

EKITAN.com

partnering
media

SEO

attracting
guests(transfer information)

local stores andservice operators

attracting
guestsReinforcement of EKITAN.com

advertisers

online adoperation* link juice:
Evaluation that is passed from a particular page to another byplacing a link from the former to the latter

19

Strategy 2: RMP extension (Media business and Advertisement business)* RMP: Regional Marketing Platform

FY03/2024, 1-2Q

Not only partnering with regional media and others to reinforce contents and links of EKITAN.com,
but also placing recommendation widgets of Cirqua’s Ad-network, will lead to revenue expansion
Regional ad networking
regional media / personal website

revenue model
website A
EKITAN.com

information networking
bidirectionaldelivery of
information

widgetwebsite B

click count✖
click unit pricewidgetlink networking

advertisement
mutual link

website C
widgetRelevant website

Regional media

Examples of specific contents
relocation, workcation, souvenir, life style,recruitment, tourism, hometown tax donation,
various events (nationwide or regionallyspecialized)

website Z

tourerIndividuals/NPO

revenue sharing

tourism creator for local revitalization

widgettourism NPO for local revitalization
Copyright© 駅探. All Rights Reserved

20Strategy 3: PR engines & options (Solutions business)
FY03/2024, 1-2Q

EKITAN.com and RMP extension will be utilized to the maximum, and services will berolled out to improve awareness of municipalities and business entities which carryout regional marketing and to draw their attention

revenue model

monthly fee✖

number of contracts

EKITAN.com

special pagefor each store
駅探カフェ
最寄り駅：麹町（徒歩３分）
ネット予約 電話(station)e.g. Shinjuku(destination)

posted article

input

input

municipalities
person in chargeroll out(top page)roll out

EKITAN.com

posted article

transfer information
search result

駅探カフェ

person in charge(each store)

今月のイチオシ

regional
information

list of posted
articles
今月のイチオシe.g. Koto Wardregional
information

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store list

post

500円

(municipalities)

guide

relocation/workcation
announcements for local
residents and tourists

主要エリアから探す

guide

appeal local attractiveness【20個限定】駅探パンケーキ

regional page

post

appeal local
attractivenessappeal each store’s
attractivenessStore information, flyer, bestrecommended menu and otherarticles are posted (this can beused as a HP)

21

Section 4
About performance
forecasts of FY03/2024

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22About performance forecasts of FY03/2024

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

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

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23Section 5
TopicsCopyright© 駅探. All Rights Reserved

24Media business
June 22, 2023 Ability of “Ekitan LOCAL” to deliver information and its contents were strengthened
Reinforcing services of “Ekitan LOCAL”, a web medium that disseminates regional attractiveness, is promoted
Places for municipalities, tourism associations and transport operators
to deliver regional information are provided, to which events/spots information are added
Regional page (e.g. prefectures/municipalities/railways/stations)Search transfer routes

Regional events list

Ekitan top page

Regional information is provided

Transfer information search results

Regional page

Event details

Notices / Events information

Spot details

Event details

Link toofficial website

Link toofficial website

Spots to visit near event venues
are introduced

Events/tourism information; notices on relocation and workcation; announcements for local residents and tourists areprovided to nationwide Ekitan users who use Transfer Information and time table services (monthly UUs are 10 mil.)25

Solutions businessAugust 1, 2023 Adopted as a “Co-creation Model Operational Demonstration Project (2023)” sponsored by MLIT
“Esashi MaaS” which is revenue circularity model aiming at maintaining and revitalizing regional public transportation
We have participated in the final demonstration experiment so that it would become our actual business in 2024

■This system increases demands for travel/purchase, and tries a revenue cycle model in which incomeof the business entity is returned for service operation■This is an attempt to increase convenience for residents such as introduction of cashless payment
with Esashi EZOCA card
■Key functions
1. On-demand car
reservation (phone/callcenter, LINE app) andmovement
2. Information about
stores/shopping-mall
3. Distribution of shopping
coupons
4. Information aboutmunicipal events
5. Borrow/return books
from/to library■Operating period
Nov. 2023 - Feb. 2024
■Covered area
Esashi Town (almost all)■Eligible user
Residents of Esashi Town
(operating area) and visitorsfrom Okushiri Town to Esashi
Town① Assignment via mobile devices(smartphone app or
automated phone system)

E.g. Demand-Bus Assignment System

Reservation done
AI Smart
Accesss
Vehicle System② Assignment
by telephone① Taxi company
Computes
optimum route

Tablets placed at MaaS spots

Upon reservation, SAVS gives
route notification to drivers

reservation

Ekitan’s roles are:・To develop systems/UI utilizing its Transfer Information technologies
・To provide reservation systems based on automated voice functions
・To open and design its LINE official account・To establish information linkage with existing public transport
operators and to obtain mobility-related data
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~ From the Stations ~【Contact for IR】

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

These materials are intended only for providing information for reference concerning current business performance, and therefore investors are encouraged to make their
final decisions on investment or any other matters based on their own judgements.
Of course these materials have been created with extreme care as much as possible. However, the Company shall not assume any responsibility for their completeness.
In addition, the Company shall not assume any responsibility for any results and other matters concerning investment decided based on these materials.
Forecasts and plans presented in these materials have been created based on currently available information. Actual business performance to be achieved in the future
may differ from such forecasts and/or plans due to various factors including overall economic situations.
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