FOR TRANSLATION PURPOSE ONLY
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.
In the event of any discrepancy between this translated version and the original Japanese version, the latter shall prevail.
May 9, 2024

Summary of Consolidated Financial Results
for the Full-Term of the Fiscal Year 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 of ordinary general meeting of shareholders:June 27, 2024
Scheduled date to file Securities Report:
June 28, 2024
Scheduled date to commence dividend payments:
June 28, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors)

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

1. Consolidated financial results of FY03/2024 (April 1, 2023 – March 31, 2024)(1) Consolidated operating results
Net sales

FY03/2024
FY03/2023(Percentages indicate year-on-year changes)
Ordinary
Net profit (loss) attributableprofit (loss)
to owners of parent

Operatingprofit (loss)

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

%

4,038
3,206

26.0
10.9

184
296

(37.8)
(7.0)

23
105

(77.5)(24.3)

27
104(73.7)(25.8)

(736)
89

－
12.0

FY03/2024:(732) mil. yen [－%]
FY03/2023:
89 mil. yen [12.0%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill(Note) Comprehensive profit

Net profit (loss)
per share

Diluted net profit (loss)
per share

Ordinary profit
to toral assets ratio

Return on equity

Operating profit
to toral assets ratio

yen

yen

%

%

%

(152.02)
17.04(2) Consolidated financial position－－(35.2)
3.4

0.9
3.1

0.6
3.3

FY03/2024
FY03/2023

Total assets

FY03/2024
FY03/2023(Reference) Shareholders equity

Net assets

Equity ratio

Net assets per sharemil. yenmil. yen

%

2,735
3,152

1,700
2,487

62.2
78.9

351.08513.25

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of period

FY03/2024:
FY03/2023:

1,700 mil. yen
2,487 mil. yen(3) Consolidated cash flows
Cash flows fromoperating activities

FY03/2024
FY03/2023

mil. yenmil. yenmil. yenmil. yen

141
63

(161)
(265)

(81)
(452)

1,324
1,424

2. Cash dividends
Annual dividends per share
1Q-endFY03/2023
FY03/2024
FY03/2025 (forecasts)

2Q-end3Q-endYear-end

Dividend
payout ratio(consolidated)

Total cash
dividends

Total

Ratio of dividends
to net assets(consolidated)

yen

yen

yen

yen

yen

mil. yen

%

%

－
－
－

0.00
0.00
0.00

－
－
－

14.00
14.00
14.00

14.00
14.00
14.00

67
67

82.2
－
91.9

2.7
3.2

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

Net sales

Operatingprofit (loss)

EBITDA

Ordinary
profit (loss)

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

yen(cumulative)

1,993

2.7

32

(13.7)

(15)

－

(7)

－

(10)

－

(2.12)

Full term

4,327

7.2

203

10.5

101

328.4

111

304.5

73

－

15.24

2Q

FOR TRANSLATION PURPOSE ONLY
*Notes(1) Changes in significant subsidiaries during the current period(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements①Changes in accounting policies due to revisions to accounting standards and other regulations:No②Changes in accounting policies due to other reasons:No③Changes in accounting estimates:
No④Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)①Total number of issued shares at the end of the period (including treasury stock)
FY03/2024:

6,018,800 shares

FY03/2023:

6,018,800 shares②Number of treasury stock at the end of the period
FY03/2024:

1,176,541 shares

FY03/2023:

1,171,316 shares

FY03/2023:

5,272,083 shares③Average number of shares during the period
FY03/2024:

4,843,459 shares* 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 4, "1. Overall Operating Results, etc., (4)Forecasts for the future".

Supplementary material on financial results will be posted on the Company's website on May 9, 2024 (Thu.).

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024○ Table of Contents: Appendix
1. Overall Operating Results, etc. .......................................................................................................................................... 2(1) Overall operating results of the current period ............................................................................................................ 2(2) Overall financial position of the current period ........................................................................................................... 3(3) Overall cash flows of the current period ...................................................................................................................... 3(4) Forecasts for the future ................................................................................................................................................ 4
2. Basic Idea for the Selection of Accounting Standards ....................................................................................................... 4
3. Consolidated Financial Statements and Principal Notes ................................................................................................... 5(1) Consolidated Balance Sheets ....................................................................................................................................... 5(2) Consolidated Statements of Income and Statements of Comprehensive Income ........................................................ 7
Consolidated Statements of Income ............................................................................................................................. 7
Consolidated Statements of Comprehensive Income ................................................................................................... 7(3) Consolidated Statements of Changes in Equity ........................................................................................................... 8(4) Consolidated Cash Flow Statements ............................................................................................................................ 9(5) Notes on Consolidated Financial Statements ............................................................................................................... 11(Going Concern Assumption)...................................................................................................................................... 11(Significant Information regarding the Preparation of Consolidated Financial Statements) ....................................... 11(Notes on Consolidated Statements of Income) .......................................................................................................... 14(Segment Information) ................................................................................................................................................ 15(Per Share Data) .......................................................................................................................................................... 17(Significant Post-Balance Sheet Events) ..................................................................................................................... 181

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024

1. Overall Operating Results, etc.
(1) Overall operating results of the current period
During the current consolidated FY, Japanese economy has seen progress in normalization 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, andprice 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, havecontinuously experienced lower revenues associated with the trend towards decreasing number of paid subscribers, affected bymarket 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 in substantial increase in Net
sales.
On the other hand, concerning profit, until the end of second quarter consolidated cumulative period, we had been affected bydecreased revenues from services for paid subscribers and even more severe business environment for Cirqua Inc., resulting insluggish performance. However, during the third quarter consolidated fiscal period, Cirqua Inc. reconsidered its business structure
and carried our cost reduction by shrinking expenses, as well as having commercial materials of new genres contribute torevenues, and thus could eventually restore profitability as a standalone entity. Moreover, renovation work of “BTOnline” (aservice for arrangement of ticketless business trip) finally came to an end, and depreciation could be shrunk by virtue of bookingof impairment loss of intangible assets such as goodwill. As a result, for the third quarter consolidated fiscal period and onward,
operating profit and ordinary profit of the entire Group were 97,741 thousand yen and 99,034 thousand yen respectively, both ofwhich substantially improved.
Concerning Net profit attributable to owners of parent, the Company had estimated future cash-flows of Transfer Information
services, Cirqua Inc., and a new business of “Ekitan PICKS” in the current consolidated FY, then determined that it would be
difficult to recover intangible assets such as goodwill, and consequently recorded impairment loss of 855,627 thousand yen as
extraordinary loss, which resulted in recording substantial negative figure.
Consequently financial results of the current consolidated FY were as follows: Net sales: 4,038,300 thousand yen (increase by
26.0% YoY); EBITDA: 184,667 thousand yen (decrease by 37.8% YoY); Operating profit: 23,623 thousand yen (decrease by
77.5% YoY); Ordinary profit: 27,457 thousand yen (decrease by 73.7% YoY); and Net loss attributable to owners of parent:
736,292 thousand yen (as opposed to Net profit of 89,827 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 current consolidated FY,
M&A/Incubation Business segment has been newly added.
①Mobility Support Business
For the current consolidated FY, profit of this segment decreased YoY because of continuously decreasing number ofpaid subscribers due to commoditization of Transfer Information services.
During the current consolidated FY, in addition to the abovementioned continuously decreasing number of paid
subscribers, extra cost was incurred for renovation work of “BTOnline” (a service for arrangement of ticketless businesstrip) that was carried out during the previous consolidated FY, resulting in lower revenues/earnings.
These operations resulted in Net sales of 1,485,549 thousand yen (decrease by 6.9% YoY), EBITDA of 380,042
thousand yen (decrease by 26.3% YoY) and Segment profit of 323,554 thousand yen (decrease by 29.3% YoY).
②Advertisement Platform Business
For the current consolidated FY, Cirqua Inc. reconsidered its business structure and carried our cost reduction byshrinking 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.
For the current consolidated FY, although Proud Engine Inc. has been added to this segment since the third quarter
consolidated fiscal period of FY2023 and 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 to revenues from new commercial materialsof new genres carried out during the third quarter consolidated fiscal period, such efforts were not enough to cover write-off
cost for such as goodwill incurred during the preceding second quarter consolidated cumulative period, which resulted inrecording segment loss.
These operations resulted in Net sales of 1,486,001 thousand yen (decrease by 7.7% YoY), EBITDA of 22,530 thousandyen (decrease by 66.3% YoY) and Segment loss of 55,545 thousand yen (which was 61,499 thousand yen in the previous
FY).
③ M&A/Incubation Business
For the current consolidated FY, financial results of this segment were as follows: Net sales: 1,071,286 thousand yen;
EBITDA: 73, 951 thousand yen; and Segment profit: 51,998 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 theprevious consolidated FY; and therefore figures are shown only for the current consolidated FY.

2

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(2) Overall financial position of the current period(Assets)
Current assets was 2,109,795 thousand yen at the end of the current consolidated FY, i.e. increase by 241,220 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 by 193,544 thousand yen, increase in “Others” included in Current assets by 101,169 thousand yen,and decrease in Cash and deposits by 56,093 thousand yen. Non-current assets was 625,373 thousand yen, i.e. decrease by
658,999 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decrease in Goodwillby 319,332 thousand yen and decrease in Software by 264,481 thousand yen. As a result, Total assets was 2,735,168
thousand yen, i.e. decrease by 417,779 thousand yen as compared to the end of the previous consolidated FY.

(Liabilities)
Current liabilities was 666,983 thousand yen at the end of the current consolidated FY, i.e. increase by 228,843
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 136,216 thousand yen and in Current portion of long-term loans payable by 66,691 thousand
yen. Non-current liabilities was 368,147 thousand yen, i.e. increase by 141,313 thousand yen as compared to the end of theprevious consolidated FY. This is mainly due to increase in Long-term loans payable by 201,250 thousand yen and decreasein Deferred tax liabilities by 110,272 thousand yen. As a result, Total liabilities was 1,035,130 thousand yen, i.e. increase by
370,157 thousand yen as compared to the end of the previous consolidated FY.

(Net assets)
Total net assets was 1,700,038 thousand yen at the end of the current consolidated FY, i.e. decrease by 787,936
thousand yen as compared to the end of the previous consolidated FY. This is mainly due to Net loss attributable to ownersof parent of 736,292 thousand yen and Dividends from surplus of 67,864 thousand yen. As a result, Equity ratio decreased
from the end of the previous consolidated FY by 16.8 points to 62.2%.

(3) Overall cash flows of the current period
Cash and cash equivalents (hereinafter, "business fund") at the end of the current consolidated FY was 1,324,577
thousand yen, i.e. decrease by 100,405 thousand yen as compared to the end of the previous consolidated FY.
Each cash flow status and factors thereof in the current consolidated FY are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities during the current consolidated FY was 141,944 thousand yen (which was
63,211 thousand yen in the previous FY). This is mainly due to Impairment loss of 855,627 thousand yen, Net loss before
income taxes and minority interests of 839,423 thousand yen, and Depreciation of 114,780 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities during the current consolidated FY was 161,303 thousand yen (which was 265,555
thousand yen in the previous FY). This is mainly due to Collection of short-term loans receivable of 112,500 thousand yen,
Payments for acquisition of new consolidated subsidiary of 97,102 thousand yen, Purchase of intangible assets of 89,352
thousand yen, and Payments of short-term loans receivable of 67,500 thousand yen.
(Cash flows from financing activities)
Net cash used in financing activities during the current consolidated FY was 81,046 thousand yen (which was 452,250
thousand yen in the previous FY). This is mainly due to Repayments of long-term borrowings of 68,421 thousand yen,
Dividends paid of 67,625 thousand yen, and Proceeds from long-term borrowings of 60,000 thousand yen.

3

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(4) Forecasts for the future
Services for paid subscribers such as Transfer Information which is the mainstay of our business have been commoditizedand continuously reduced profitability, so it is urgently necessary for us to create some business that should become a new
mainstay. Amid such a business environment, in accordance with the mid-term management plan announced on May 11,
2021, the Company has promoted a variety of measures based on its own “Regional Marketing Platform” concept which is anapproach to making use of its business resources to the maximum extent possible while associating “needs of local residents”
with “services provided by local business entities”, in order to create a new mainstay for profitability. Specifically, more
contents were added to the regional media “Ekitan LOCAL”, “MaaS (Mobility as a Service) Package” provided by theCompany was enhanced, affiliate advertisings strongly related to Transfer Information services for buyers of such as
Shinkansen (bullet train) tickets were added, and provision of an SaaS type CRM tool called “LIneON” started.
Given these measures, the next FY03/2025 is considered a phase to expand profitability, during which decrease inrevenues from services for paid subscribers is expected to be supplemented by increase in advertising revenues throughrealizing the “Regional Marketing Platform” concept and by expanding profitability through provision of a variety ofsolutions.
Also, in addition to earlier acquisition of Cirqua Inc. and Proud Engine Inc. for portfolio reinforcement, three subsubsidiaries acquired by EKITAN I&I Co., Ltd. substantially contributed to overall revenues as well, and thus sales
proportion of Mobility Support Business segment of the Group reached nearly half, which is a great outcome with respect toboth sales and profit. Moreover, for Laterra International, Inc. which is another subsidiary, although sales of guidebooks fortourists had been devastatingly impacted by the COVID-19 infections, such a situation came to an end and it could restore
profitability during the current consolidated FY and anticipates further profitability expansion for the next FY03/2025.
On the other hand, with respect to cost, we are going to make use of offshore development which has not been made sofar, improve productivity by utilizing generative AI and RPA, and shrink depreciation by virtue of booking of impairment
loss of intangible assets such as goodwill, all of which would lead to cost reduction.
Consequently, performance forecasts for the next FY03/2025 are as follows: Net sales: 4,327,568 thousand yen (increaseby 7.2% YoY); EBITDA: 203,981 thousand yen (increase by 10.5% YoY); Operating profit: 101,214 thousand yen (increaseby 328.4% YoY); Ordinary profit: 111,077 thousand yen (increase by 304.5% YoY); and Net profit attributable to owners ofparent: 73,825 thousand yen (as opposed to Net loss attributable to owners of parent of 736,292 thousand yen).
The abovementioned performance forecasts are based on currently available information. Actual results may differ fromthese forecasts due to various factors in the future.
2.

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

4

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024

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

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

5

Current consolidated FY(March 31, 2024)

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

1,368,889
582,354599
16,573933
141,737(1,292)
2,109,795

27,63933,345－60,98432,88537,787
1,568
72,241

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

49,303
26,625
131,911
119,161
327,001

18,702
21,81842,955－83,476
1,284,373
3,152,947

42,47073,104
111,989(1,433)
226,131625,3732,735,168

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term 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 loss on order received
Valuation allowance for purchase contracts
OthersTotal current liabilities
Non-current liabilities
Long-term loans payable
Asset retirement obligations
Provision for directors’ retirement benefits
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

6

Current consolidated FY(March 31, 2024)

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

231,270
75,851
18,62352,177
9,888
10,660268,511
666,983

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

292,090
17,31020,51026,9269,309
2,000
368,147
1,035,130

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

291,956
309,595
1,693,919(598,290)
1,697,180－－
2,487,974
3,152,947

2,858
2,858
1,700,038
2,735,168

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(2) Consolidated Statements of Income and Statements of Comprehensive Income(Consolidated Statements of Income)(thousand yen)

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
Income taxes - deferred
Total income taxes
Net profit (loss)
Net profit (loss) attributable to non-controlling shareholders
Profit (loss) attributable to owners of parent

Previous consolidated FY(Apr. 1, 2021 – Mar. 31, 2023)

Current consolidated FY(Apr. 1, 2023 – Mar. 31, 2024)

3,206,085
2,259,529
946,556
841,471
105,084

4,038,300
2,863,370
1,174,929
1,151,306
23,623

26
－
157
1,500
－
1,250
869
3,802

2,996
1,078
80
－
963
684
439
6,243

1,250
2,978
161
4,390
104,496

2,328
－
81
2,410
27,457－－－－－123,028
46,825(13,624)
33,20189,827－89,827648
1,320*855,627
9,284
866,880(839,423)
25,647(129,861)(104,214)(735,209)
1,083(736,292)

Previous consolidated FY(Apr. 1, 2021 – Mar. 31, 2023)

Current consolidated FY(Apr. 1, 2023 – Mar. 31, 2024)

89,827(735,209)－－
89,8272,998
2,998(732,210)

89,827－(733,434)
1,224(Consolidated Statements of Income)(thousand yen)

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

7

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(3)

Consolidated Statements of Changes in Equity
Previous consolidated FY (Apr. 1, 2022 – Mar. 31, 2023)(thousand yen)

Shareholders' equity
Capitalstock
Balance at beginning ofcurrent period

Capitalsurplus291,956

Retainedearnings

293,531

Treasurystock

2,926,669

Total
shareholders'equityTotal
net assets

2,838,940

2,838,940(673,216)

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

Net profit attributable toowners of parent

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

43,197

－

－

8,696

8,696

406,783－－

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

Stock compensation withtransfer restrictions

8,696

Retirement of treasurystock(406,783)

Transfer to capital surplus
from retained earnings

441,284(441,284)－－(428,592)

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

291,956

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

2,487,974

2,487,974

Total changes of items during
periodBalance at end of current
periodCurrent consolidated FY (Apr. 1, 2023 – Mar. 31, 2024)(thousand yen)
Shareholders' equity

Balance at beginningof current period
Changes of items
during period
Dividends fromsurplus
Net profit
attributable toowners of parent
Purchase oftreasury stock
Disposal oftreasury stock
Stockcompensation withtransfer restrictions
Purchase of sharesof consolidated
subsidiaries
Changes of items
other thanshareholders' equity(net)
Total changes of items
during period
Balance at end ofcurrent period

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock

291,956

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

Total
shareholders'equity2,487,974

Accumulated othercomprehensive income
Valuation
Total other
difference on
available-forcomprehensi
saleve incomesecurities

－

－

Total
net assets

2,487,974(67,864)(67,864)(67,864)(736,292)(736,292)(736,292)

3,921(3,921)－－(1,220)

1,220

－

－

12,13812,13812,138

1,224

1,224

1,224

2,858

2,858

2,858

－

16,063(804,157)(2,700)(790,794)

2,858

2,858

(787,936)

291,956

309,595

1,693,919(598,290)

1,697,180

2,858

2,858

1,700,038

8

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(3) Consolidated Cash Flow Statements(thousand yen)Previous consolidated FY Current consolidated FY(Apr. 1, 2022 –(Apr. 1, 2023 –Mar. 31, 2023)
Mar. 31, 2024)

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
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in liabilities for retirement benefits
Increase (decrease) in provision for loss on order received
Increase (decrease) in valuation allowance for purchase contracts
Interest income
Interest expenses
Purchase of treasury stock
Gain on forgiveness of debts
Loss (gain) on valuation of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade & contract assets
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Dividend income
OthersSubtotalInterest income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments of short-term loans receivableCollection of short-term loans receivable
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Payments for acquisition of new consolidated subsidiary
Net cash provided by (used in) investing activities

9123,028
140,461－
51,310(157)
1,259(19,800)
－
－
9,100
－
(26)
1,250
(18,531)－－(583)(12,389)(3,996)－(111,428)
162,476(18,531)26－
0(99,291)
63,211(839,423)
114,780
855,627
46,262)
26
3,537
1,449
(912)
(7,955)787(2,496)(2,996)
2,328
－
9,284
648
16,8795,561(39,897)(1,078)44,771
207,187－
3,023(1,538)150(66,879)
141,944(15,524)250(231,520)
－
－
－
－
－
－
－
2,000
(20,761)(265,555)(32,081)－(89,352)(12,400)
31,619(67,500)
112,500(6,256)
1,292(10,412)
8,391(97,102)(161,303)

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(thousand yen)Previous consolidated FY Current consolidated FY(Apr. 1, 2022 –(Apr. 1, 2023 –Mar. 31, 2023)
Mar. 31, 2024)

Cash flows from financing activities
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury stock
Dividends paid
Purchase of shares of subsidiaries not resulting in change in scope of consolidation
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 end of period

10

－
－
－
(375,332)(76,917)－－(452,250)(654,593)
2,079,577
1,424,983(5,000)60,000(68,421)－(67,625)(32,000
32,000(81,046(100,405)
1,424,983
1,324,577

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(5) Notes on Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Information regarding the Preparation of Consolidated Financial Statements)
1. Matters on the scope of consolidation(1) Number of consolidated subsidiaries:

7

Names of the consolidated subsidiaries
Laterra International, Inc.
Cirqua, Inc.
Proud Engine Inc.
EKITAN I&I Co., Ltd.
Growth and Communications Co., Ltd.
Cybernet Co., Ltd.
Information Technology Japan Co., Ltd.
During the current consolidated FY, EKITAN I&I Co., Ltd. was newly established, which has been includedin the scope of consolidation.
In addition, EKITAN I&I Co., Ltd. acquired Growth and Communications Co., Ltd., Cybernet Co., Ltd., andInformation Technology Japan Co., Ltd. as its subsidiaries, all of which have been included in the scope of
consolidation.
(2) Non-consolidated subsidiary
Not applicable.
2. Matters on application of equity method(1) Affiliate company to which equity method is applied
Not applicable.
(2) The affiliate company to which equity method is not applied (Mocosuku Co., Ltd.) would have no major
influence on the Company’s consolidated financial statements if it were excluded from the scope of equity
method from the perspective of its current term profit/loss and retained earnings (those commensurate with its
equity), etc., and also it had no significance as a whole, so it was excluded from the scope of application ofequity method.
3. Matters on business year and other factors of the consolidated subsidiaries
End of business year of the consolidated subsidiaries is the same as the consolidated closing date.
4. Matters on accounting policies(1) Standards and methods for evaluating important assets①Securities• Available-for-sale securities• Other than equity securities without market valueMarket value method (evaluation difference is treated with recognition directly into net assets infull, and cost of products sold is calculated by moving average method) is adopted.
• Equity securities without market value
Cost method using moving average method is adopted.
②Inventories• Merchandise:
Cost method based on individual method (method of devaluating book value based on decline inprofitability) is adopted.
• Work in process:
Cost method based on individual method (method of devaluating book value based on decline inprofitability) is adopted.
• Raw materials and supplies:
Cost method based on individual method (method of devaluating book value based on decline inprofitability) is adopted.

11

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(2) Depreciation methods for important depreciable assets①Property, plant, and equipment
Fixed-rate method is applied. However, straight-line method is applied for buildings and accompanying
facilities and structures acquired on or after April 1, 2016.
Meanwhile, useful lives of major buildings are 8-15 years and those of major tools, furniture and fixture are
3-10 years.
In addition, for assets acquired prior to April 1, 2007, method of straight-line depreciation over 5 years isapplied starting from the next year following the end of depreciation up to the final depreciable limit.
②Intangible assets
Straight-line method is applied.
Meanwhile, for software intended for marketing, depreciation method based on the expected effective period(within 2 years) is adopted; and for software intended for internal use, straight-line method based on theinternally available period (5 years) is adopted.
And for customer-related assets identified upon business combination, straight-line method based on the
period on which such combination has effects (within 12 years) is adopted.
(3) Basis for allocating important provisions① Allowance for doubtful accounts
In order to protect against losses due to uncollectible receivables, amount calculated based on historicaldefault rates is allocated for general receivables, and for specific ones such as those with default possibilities
respective collectibilities are taken into account and estimated uncollectible amount is allocated.
② Provision for bonuses
In order to prepare for payments of bonuses to employees, estimated amount for such payments which isincurred during the current consolidated FY is allocated.
③ Provision for loss on order received
In preparation for the future loss related to order received, estimated amount of loss on order received as ofthe end of the current FY is allocated.
④ Valuation allowance for purchase contracts
In order to protect against losses due to decline in profitability of merchandise in the future, amount which isestimated as uncollectible out of purchase prices based on merchandise purchase contracts is allocated.
⑤ Provision for directors’ retirement benefits
In order to prepare for payments of directors’ retirement benefits, amount required to be paid is allocated,based on internal regulations of some of the consolidated subsidiaries.
(4) Accounting treatment method concerning retirement benefit
Some of the consolidated subsidiaries apply a simplified method when calculating liabilities on retirement
benefits and retirement benefit expenses, where amounts required to be paid in case of voluntary termination for
retirement benefits is deemed as retirement benefit obligations.
(5) Basis for allocating important revenues and expenses
Points of time when revenues and contents of major performance obligations in the Group’s principal businesses
are usually recognized are as described below.
① Providing services
Mainly services for paid subscribers related to transfer information, API services and data licenses areprovided. For relevant performance obligations, contracts are executed for certain periods of time and revenues
are recognized when such performance obligations are fulfilled in the course of those service periods.
② Software development
Custom-made softwares are developed and provided.
Relevant performance obligations are considered as those to be fulfilled over a certain period of time andrevenues are recognized based on progress level in relation to such fulfillment of performance obligations.
Progress level is calculated, for each contract, as percentage of actual cost relative to total estimated cost.
Meanwhile, for introduction works the periods of which from start-up date of contract to the point of time whenrelevant performance obligations are expected to be completely fulfilled are very short, alternative treatments areapplied and revenues are not recognized for a certain period of time but are recognized at the time of suchcomplete fulfillment.

12

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024③ Advertisement
Advertisings are distributed via an ad network system.
Revenues are recognized when relevant performance obligations are considered as fulfilled quantitatively
along with advertising transactions such as clicking.
④ Engineer dispatch
Concerning engineer dispatch business, the Company considers that performance obligations are fulfilled fora certain period of time because control over services is transferred to the customer for the duration of dispatch
based on the dispatch contract, and therefore revenues are recognized based on the march of time.
It should be noted that compensations for these performance obligations are received generally within one year
after their fulfillment and therefore no important financial element is included.
(6) Method and period of amortization of goodwill
Goodwill is amortized equally over 10 years or less during which it exert effects, based on a reasonableestimation.
(7) Scope of business fund for the consolidated cash flow statement
It consists of cash on hand, demand deposit, and short-term investment with maturity date within three months
after its acquisition which is highly liquid, easily realizable and involves only de minimis risk concerning valuechange.

13

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(Notes on Consolidated Statements of Income)* Impairment loss
For the current consolidated FY, the Group allocated impairment loss to the assets groups as listed below.
Place

PurposeChiyoda Ward, Tokyo

Business assets for Transfer Information
services

Chiyoda Ward, Tokyo

Business assets for Ekitan PICKS

Chiyoda Ward, Tokyo

TypeBusiness assets for Cirqua, Inc.

Impairment loss
(thousand yen)

Software59,434

Software in progress

2,695

Software

96,963

Software in progress

13,446

Software107,033

Goodwill

345,855

Customer-related assets

230,199

The Group divides its assets into groups mainly in accordance with business units as representing minimum units togenerate cash flows.
In measuring impairment loss, recoverable values are determined according to their use values, and the use values are
deemed as zero because they are negative based on future cash flows.
Please note that backgrounds to recognizing impairment losses for individual business assets are as follows:① Business assets for Transfer Information services
Transfer Information services became commoditized and thus revenues from them have continued to decrease,thus showing signs of impairment. So the Company considered future collectability and consequently decided toallocate Impairment loss of 62,129 thousand yen as Extraordinary loss in terms of Software in progress.
② Business assets for Ekitan PICKSIn November 2021, the Company launched “Ekitan PICKS” which utilized its Transfer Information website withhigh domain authority (ranking score within a search engine), but regulations became even tight on domain lending
where evaluation of a search result could be lowered in case of theme of a website being determined as inconsistent.
and as a result, there was very little effects of Ekitan PICKS on revenues, thus showing signs of impairment. So theCompany considered future collectability and consequently decided to allocate Impairment loss of 110,409 thousand
yen as Extraordinary loss in terms of Software and Software in progress relevant to thus service.
③ Business assets for Cirqua, Inc.
Since the amendment to the PMD Act in Japan, external environment for Cirqua, Inc. has become more severe
especially concerning its commercial materials for advertising and shrinking advertisement media, and thus themarket as a whole was inclined to diminish and Cirqua could not achieve business performance as initiallyenvisioned. So the Company considered future collectability and consequently decided to allocate Impairment loss of
683,088 thousand yen as Extraordinary loss in terms of Cirqua’s Software, Goodwill, and Customer-related assets.

14

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(Segment Information)
1. Overview of reportable segments
The Company's reportable segments are those being its constituent units for which separated financial information isavailable and are subject to periodic review by the board of directors for determining allocation of management
resources and for evaluating business performance. The Company consists of several segments each of which deals
with different services, and sets two reportable segments as "Mobility Support Business" and "Advertisement Platform
Business".
“Mobility Support Business” segment is responsible for business relating to mobility operated mainly by EKITAN
Co., Ltd. and Laterra International, Inc.; “Advertisement Platform Business” segment is responsible for business
relating to advertisement operated mainly by Cirqua, Inc. and Proud Engine Inc.; and “M&A/Incubation Business”
segment is responsible for investment mainly by EKITAN I&I Co., Ltd. and for system-related operations (systemdevelopment/maintenance, SES and others) undertaken by EKITAN I&I’s subsidiaries.
From the current FY, in association with establishment of EKITAN I&I Co., Ltd. which operates “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 consolidated fiscal year is disclosed based on the
categories of reportable segments after such change.
2. How to calculate amounts of net sales, profit/loss, assets, liabilities and other items for each reportable segment
Accounting treatment methods for the business segments as reported herein are identical to the accounting
principles for producing the consolidated financial statements. Figures of segment profit of individual reportablesegments are based on their operating profit.
3. Information on amounts of net sales, profit/loss, assets, liabilities and other items for each reportable segment
Previous consolidated FY (Apr. 1, 2022 – Mar. 31, 2023)(thousand yen)

Mobility Support
Business

Reportable segments
Advertisement
M&A/Incubation
PlatformBusiness
Business

Total

Net sales
1,595,863

1,610,222－

3,206,085

－

－

－

－

Total

1,595,863

1,610,222－

3,206,085

Segment profit (loss)

457,538(61,499)－

396,038

Segment assets

554,694

1,476,184－

2,030,879

57,336

77,952－

135,288863

50,447－51,310515,738

66,899－582,638

93,261

151,574－

244,835

Sales to external customers
Inter-segment sales or transfer

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

1.
2.

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

15

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024

Current consolidated FY (Apr. 1, 2023 – Mar. 31, 2024)(thousand yen)

Mobility Support
Business

Reportable segments
Advertisement
M&A/Incubation
PlatformBusiness
Business

Total

Net sales
1,483,895

1,485,518

1,068,886

4,038,300

1,654

482

2,400

4,537

Total

1,485,549

1,486,001

1,071,286

4,042,837

Segment profit (loss)

323,554(55,545)

51,998320,007

Segment assets

517,569

535,593939,221

1,992,385

56,48746,352

7,414

110,254－

31,723

14,53846,262

380,042

22,53073,951

476,523

90,377

18,133

10,698119,209

Sales to external customers
Inter-segment sales or transfer

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

1.
2.

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

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

Net sales

Previous consolidated FY

Reportable segments total
Inter-segment transactions elimination
Net saleson the Consolidated Financial Statements

Current consolidated FY

3,206,085－

4,042,837(4,537)3,206,085

4,038,300(thousand yen)

Profit (loss)

Previous consolidated FY

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

Current consolidated FY

396,038(290,954)

320,007(296,383)

105,084

23,623

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

AssetsPrevious consolidated FY

Reportable segments total

Current consolidated FY

Corporate assets (see Note)

2,030,879
1,122,068

1,992,385
742,783

Total assets
on the Consolidated Financial Statements

3,152,947

2,735,168

Note:

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

16

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(thousand yen)

Other items

Reportable segments
total

Amount allocated on theConsolidated Financial
Statements

Adjustment

FY03/2023

FY03/2024

FY03/2023

FY03/2024

FY03/2023

FY03/2024

Depreciation

135,288

110,254

5,172

4,526

140,461

114,780

Amortization of goodwill

51,31046,262－－51,31046,262244,835

119,209

1,544

489

246,379

119,699

Increase in property, plantand equipment and inintangible assets
Notes

1.
2.

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

(Per share data)
Previous consolidated FY(Apr. 1, 2022 – Mar. 31, 2023)

Current consolidated FY(Apr. 1, 2023 – Mar. 31, 2024)

Net assets per share

513.25 yen

351.08 yen

Net profit (loss) per share

17.04 yen(152.02) yen

Notes

1.

2.

Diluted net profit per share of the current consolidated FY is not disclosed because net loss per share has been posted
and no residual securities exist. Also, diluted net profit per share of the previous consolidated FY is not disclosed
because no residual securities exist.
Calculation bases of net profit (loss) per share are as follows.

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

Current consolidated FY(Apr. 1, 2023 – Mar. 31, 2024)

89,827(736,292)－－

89,827(736,292)

5,272,083

4,843,459

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

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

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

17

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the Full-Term of FY03/2024(Significant Post-Balance Sheet Events)(Purchase of treasury stock)
The Company, at its board meeting on May 9, 2024, decided to purchase its treasury stock, based on the provisions ofArticle 156 of the Companies Act of Japan which apply mutatis mutandis pursuant to Article 165, Paragraph 3 of that Act.
1. Reasons for purchasing treasury stockThis purchase is done in order for carrying out agile capital policies responsive to changing management environment
and for improving capital efficiency, and also as part of measures for shareholders return.
2. Matters concerning the purchase(1) Type of the stock to be purchased:(2) Total number of shares to be purchased:

Common stock of the Company
150,000 shares (upper limit)(percentage to the total number of outstanding shares (excluding treasury stock): 3.1%)(3) Total value of the stock to be purchased:

50,000,000 yen (upper limit)(4) Period for the purchase:

From May 20, 2024 to December 30, 2024

(5) How to purchase:Open market purchase on the Tokyo Stock Exchange18