Supplementary Materials on Financial Results
FY03/2023 (full-term)

May 10, 2023

EKITAN&Co., Ltd.
TSE Growth: 3646
Copyright© 駅探. All Rights Reserved

Table of Contents
FY03/2023 (full-term)

Section 1

FY03/2023 (full-term)
Financial results overview - company-wide

P 3

Section 2

FY03/2023 (full-term)
Financial results overview - by segment

P 9

Section 3

Performance forecasts for FY03/2024

P 19

Copyright© 駅探. All Rights Reserved2Section 1
FY03/2023 (full-term)
Financial results overview(company-wide)

Copyright© 駅探. All Rights Reserved

3

Highlights
FY03/2023 (full-term)

Higher revenues / Lower earnings(mil. yen)

Net sales

EBITDA

Operating profit＋10.9%–7.0%–24.3%

319

138

2,891

3,206

296

(+/– % YoY)

105

FY03
2022

FY03
2023

FY03
2022

FY03
2023

Copyright© 駅探. All Rights Reserved

FY03
2022

FY03
2023
4

Highlights
FY03/2023 (full-term)

Higher revenues / Lower earnings(YoY)

Net sales

3,206 mil. yen+/– %+10.9％+/– amount+314 mil. yen

FY2022

2,891 mil. yen

EBITDA296 mil. yen

+/– %

–7.0％

+/– amount–22 mil. yen

FY2022319 mil. yen

Operating profit

105 mil. yen+/– %–24.3％+/– amount–33 mil. yen

FY2022138 mil. yen

Factors of higher revenues

Factors of lower revenues

Mobility Support Business
Increased advertising revenues due to more access to Ekitan media
such as Transfer Information site and associated apps; as well as ordertaking for services for corporations such as MaaS

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

Improved profitability of “Cirqua” (advertisement platform)
Despite substantial decrease in earnings affected by the PMD Act revisedin August 2021, profitability status could improve by successfully
applying new criteria for posting advertisings in response to that Act

Advertisement Platform Business: Proud Engine Inc.
Newly joined as a consolidated subsidiary from the last third quarter
consolidated fiscal period

Operating profit
Decreased services for paid subscribers and increased cost for BTOnline
Partly increased sales was not enough to cover decrease in net sales of services for paid subscribers
which provided high profit rate
Increased cost for renovating “BTOnline” (a service for arrangement of ticketless business trip)
Copyright© 駅探. All Rights Reserved5Consolidated Profit and Loss Statement
FY03/2023 (full-term)

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

FY03
2022

Proportion

FY03
2023

Proportion

+/– %

+/–
amountNet sales

2,891

100.0%

3,206

100.0%＋10.9%＋314

Cost of sales

1,910

66.0%

2,259

70.5%

+18.2%+348

Gross profit

980

33.9%

946

29.5%

–3.4%

–33

SG&A expenses

841

29.1%

841

26.2%

–0.0%

–0

Operating profit

138

4.8%

105

3.3%

–24.3%–33

Ordinary profit

140

4.9%

104

3.3%

–25.8%–36

Net profit
attributable toowners of parent

80

2.8%

89

2.8%

+12.0%+9

EBITDA

319

11.0%

296

9.3%

–7.0%

–22

Copyright© 駅探. All Rights Reserved

6Consolidated Balance Sheet
FY03/2023 (full-term)

Consolidated Balance Sheet(YoY)(mil. yen)

Total current assets

FY03
2023

FY03
2022

2,422

+/–
amount

1,868

–554

Property, plantand equipment

70

60

–9

Intangible assets

958

1,139

181

Investments andother assets
Total
non-current assets
Total assets

89

83(mil. yen)

1,284

165

3,541

3,152

–388

FY03
2023

+/–
amountTotal current liabilities

403

438

34

Total non-current
liabilities

298

226

–72

Total liabilities

702

664

–37

Capital stock

291

291

-

Retained earnings

2,926

2,498 –428

Treasury stock

–673

–595

Total shareholders’ equity

2,838

2,487 –350

Total net assets

2,838

2,487 –350

Total liabilities and net
assets3,541

3,152 –388

–6

1,118

FY03
2022

Copyright© 駅探. All Rights Reserved

77

7

Cash Flow Statement
FY03/2023 (full-term)

Cash Flow Statement(mil. yen)

FY03
2023

FY03
2022

+/– amount

Cash flows fromoperating activities

345

63

–282

Cash flows frominvesting activities

–772

–265

506

Cash flows fromfinancing activities

–77

–452

–374

Increase (decrease)in cash and cash equivalents

–504

–654

–149

Cash and cash equivalents
at beginning of period

2,584

2,079

–504

Cash and cash equivalents
at end of period

2,079

1,424

–654

Copyright© 駅探. All Rights Reserved

(YoY)

8

Section 2
FY03/2023 (full-term)
Financial results overview(by segment)

Copyright© 駅探. All Rights Reserved

9Proportions by segment
FY03/2023 (full-term)

Proportions of Advertisement Platform Business
Gradually breaking away from the business structure which
has relied on Mobility Support (Transfer Information service)

Net sales share increased by 6.8 points from 43.4% to 50.2%, exceeding half
Advertisement EBITDA share increased by 8.5 points from 3.0% to 11.5%,
Platform
meaning greater contribution to profit

Net sales

EBITDA(FY03/2023)(FY03/2023)

Advertisement
Platform Business(FY03/2022)

Advertisement
Platform Business

Mobility
SupportBusiness

3.0%→11.5%

Mobility
SupportBusiness(FY03/2022)

43.4%→50.2% 49.8%

88.5%

Copyright© 駅探. All Rights Reserved

10

Mobility Support Business
FY03/2023 (full-term)
全社

Revenues/earnings are as planned,
but lower than FY2022(YoY)

Net sales

1,595 mil. yen

+/– %

–2.4％

+/– amount–39 mil. yen

FY2022

1,635 mil. yen

EBITDA515 mil. yen+/– %–17.2％+/– amount–106 mil. yen

FY2022622 mil. yen

Segment profit

457 mil. yen+/– %–17.5%+/– amount–97 mil. yen

FY2022554 mil. yen(mil. yen)

Factor 1: Lower revenues
This segment experienced downward trend because ofcontinuously decreasing number of paid subscribers due
to commoditization of Transfer Information service

1,635

Factor 2: Lower earnings
1,595
622

FY03
2022

FY03
2023

Net sales

FY03
2022

515

FY03
2023

EBITDA

554

FY03
2022

457

FY03
2023

Segment profit

Increased advertising revenues due to more access toEkitan media such as transfer information site andassociated apps, as well as order-taking for services forcorporations such as demonstration experiments of MaaS,
contributed to growth of this segment. But such growth
was not enough to supplement decrease in net sales ofservices for paid subscribers which provided high profit
rate, and additionally renovation cost for “BTOnline” (aservice for arrangement of ticketless business trip)
increased.

Copyright© 駅探. All Rights Reserved11Advertisement Platform Business
FY03/2023 (full-term)

Higher revenues and EBITDA; Less segment loss
Net sales

1,610 mil. yen+/– %+28.3％+/– amount354 mil. yen

FY2022(YoY)
1,255 mil. yen

EBITDA66 mil. yen+/– %+245.1％+/– amount

47 mil. yen

FY202219 mil. yen–61 mil. yen

+/– %

－

+/– amount

15 mil. yen

FY2022–77 mil. yen

Segment profit

Factor 1: Higher revenues(mil. yen)

Advertisement service is continuously
in the course of recovery
Operations based on new criteria for posting advertisingsin accordance with the PMD Act revised in August 2021
have brought about smooth recovery trend since
December 2021

1,610

66

1255
19
FY03
2022

FY03
2023

Net sales

FY03
2022

FY03
2023

EBITDA

-2
-6
-10
-14
-18
-22
-26
-30
-34
-38
-42
-46
-50
-54
-58
-62
-66
-70

Factor 2: Higher revenues
Proud Engine Inc.
Newly joined to this segment since the last 3Q

–77

FY03
2022

–61

FY03
2023

Segments loss

Factor 3: Segments loss
Amortization of goodwill
Net sales at a break-even level could not be reached,including amortization of goodwill, etc. of Cirqua Inc.
Up-front investment
Up-front investment, such as website construction in thevertical media “Ekitan PICKS” which has been in
operation since the previous consolidated FY, resulted insegment loss.

Copyright© 駅探. All Rights Reserved

12Current progress in primary measures (FY03/2023)
Framework
Regional Marketing Platform Framework
Strategies

Measures

Progress

1) Hybrid type vertical
media deployment

Adding more service categories such as realestate, food service

Following Ekitan PICKS, services of Ekitan
LOCAL and Ekitan Odekake-Lab started2) Cirqua’s adnet
business deployment

Expanding advertisement spaces by means ofmedia exploitation under the new criteria in
response to the revised PMD Act

Media expansion for recommend-widget
framework.
Expansion of commercial materials otherthan those for women.

3) MaaS businessdeployment

Development of MaaS packages and deploymentof them to further more regions

Demonstration experiments of “Esasi
MaaS” and “Mirai Univ. AI MaaS”(Hakodate City) were completed
Took part in demonstration experiments ofdigital boarding ticket by Tokyo Metro

4) Regional targetingbusiness deployment

Building up a system for regional targeting by
data incorporation, transfer information andCirqua’s technologies“MaaS-type advertising” started, a joint
campaign for transit advertisement with
Tokyo Monorail.

5) M&A/alliance strategy

To collect information and promote M&A/alliancein accordance with the Company’s policies and in
partnership with financial institutions andintermediary companies

Proud Engine Inc. which has an Internet
advertising agency functionality became aconsolidated subsidiary.
Established a joint venture with ITLHD, tostrengthen investment/incubation business

Copyright© 駅探. All Rights Reserved

13Hybrid type vertical media deployment
EkitanConvenient services can be found from the stations

Centered on specific genres such as real estate, restaurants, beauty salons, dental clinics, andpersonal gyms, information about visit-type shops and various services based at “stations” iscollected, on which local residents may compare/consider what they would like to use.

<Dehairing><Fitness><AGA>

Expanded profitability is sought by obtaining more inbound links andeditorial supervisors, and by adding wider variety of contents
Copyright© 駅探. All Rights Reserved

14Hybrid type vertical media deployment
EkitanMy town as usual may be more convenient and interesting
Regional media which provide information useful for
housing/living around local information about outing and events
Upon selecting a region such as station, municipality or
prefecture, useful real-time information is provided including
various local information as well as weather information,
real estate information and transfer information

searching

In conjunction with strengthening relationship with municipalities / railway
companies, reinforcement and enhancement of regional information are sought
Copyright© 駅探. All Rights Reserved

15

Ekitan Odekake-Lab

Hybrid type vertical media deployment
A website that gathers events information and distributes regional information

Areas surrounding a station are analyzed using our own data and transfer information technologies
Regional information is provided, such as recommended events and outing spots

Regional recommended informationinterpreted from data
Research results are converted to contents by making
use of transfer information functions and accumulateduser data, which can be realized exclusively by“EKITAN” being the transfer information company
having the largest number of users in Japan.
It is strongly recommended to not only thoseinterested in how their local stations are utilized but
also those who want to know outing spots on their
way home from work or on weekends.

Copyright© 駅探. All Rights Reserved

16

MaaS business deployment
Took part in demonstration experiments of “digital boarding tickets + service usage”
conducted by Tokyo Metro at every station of Marunouchi Line
PurposeTo make sales of tickets open and to realize external ticket sales by entities other than railway companies
Demonstration experiments to examine how “service usage + movement” are facilitated■Role of each participating company

Name■Diagram of service provision
Railway operator

Role overview

ticket info

Tokyo Metro

As a railway company to provide
experimental fields

Toshiba Infrastructure
Systems & Solutions

To provide digital boarding ticket system

EKITANTo provide, with via-at, UI for purchasingboarding tickets and substitute settlement
services

via-atTo provide services for co-working spaces

EKITAN&Co., Ltd.

TISS

Platform formaking salesof transport
tickets open

fare payment

Approve useof PF functionuser
Purchasing
websitepurchasetickets

fare payment*
Issuing tickets
via QR code

Authentication/managementof boarding/usage
attracting users andpromoting usage

Service operator■Overview of the demonstration experiments
PeriodApril 25 - June 25, 2023 * This period is subject to change.
Relevant stations: Marunouchi Line of Tokyo Metro (5 stations as shown below)
Shinjuku / Yotsuya 3-chome / Awaji-cho / Ochanomizu / Ikebukuro (east gate of central passage only)
Relevant services
via-at, Marunouchi Line
Eligible user
users of the above relevant services

This demonstration experiment will lead to enhancement of the following services of EKITAN
・Integration of Transfer Information site run by EKITAN with other contents sites
which support from sales to issuance of boarding tickets
・Obtaining new paid subscribers from contents additional to existing services
for paid subscribers of Transfer Information
・Adding functions of EKITAN’s own MaaS packages
Copyright© 駅探. All Rights Reserved17M&A/alliance strategy

Established EKITAN I&I Co., Ltd.
Joint venture established with ITL Holdings(a group company affiliated to Bold Investment which is a top shareholder of EKITAN)
to strengthen investment/incubation business×

fellow subsidiary of Bold
Investment which is a top
shareholder of EKITAN

Purposes
Purpose 1: Accelerating M&A/alliance strategy
By making use of ITLHD’s own insights into and know-howsof investment/incubation

Purpose 2: Measures to convert affiliatedcompanies to subsidiaries (under a joint venture)for expanded profitability
By ensuring stable profitability of Bold and its affiliatedcompanies, and convert several companies which would realize
synergies with the Group to subsidiaries of the joint venture,
improvement in the Group’s profitability should be sought.
(Stage 1) Three companies of GC, CYB and ITJ became
subsidiaries of the joint venture (sub-subsidiaries of EKITAN)
These companies have abundant track records and know-hows ofdispatching engineers to multiple fields, system-engineering, andsoftware systems development

Corporate profile of EKITAN I&I Co., Ltd.
Name:

EKITAN I&I Co., Ltd.

Address:

5-4, Kojimachi, Chiyoda Ward,Tokyo

Established:
Business activities:

April 25, 2023
Overall management control
over the Group’s subsidiaries,
etc. and any other contingent
business operations

Capital stock:

160 mil. yen

Fiscal year end:

March 31

Capital contribution ratio: 90.0% by EKITAN
10.0% by ITL Holdings

Copyright© 駅探. All Rights Reserved

18Section３
Performance forecasts
FY03/2024

Copyright© 駅探. All Rights Reserved

19Performance forecasts (FY03/2024)

Higher revenues / Lower earnings (forecasts)

Advertisement Platform BusinessFor growth of the next mainstay business in FY03/2025 and onward, various measures and investment should be carried out sothat business foundation could be built up

Mobility Support Business
There will be temporary cost increase influenced by renovation of “BTOnline” (a service for arrangement of ticketless business trip)

Investment/Incubation Business
There will be some amount of temporary cost associated with establishment and share acquisition of EKITAN I&I Co., Ltd., but thiscompany is projected to contribute to the Group’s overall earnings

Net sales

EBITDA

Operating profit＋43.9%＋6.7%–37.3%(+/– % YoY)

(mil. yen)

4,612
3,206

296

316
105

FY03
2023

FY03
2024

FY03
2023

FY03
2024

Copyright© 駅探. All Rights Reserved

FY03
2023

65
FY03
2024

20

Strategies (FY03/2024 and onward)
Strategy 1) RMP (Regional Marketing Platform) strategy
To create new sources of earnings by using EKITAN’s business assets namely media clientssuch as transfer information technologies and EKITAN.com. It is an effort to “connect business
entities and users around a regional axis”.

Media business

Facilitating the RMP framework
Based on existing EKITAN.com, new media (Ekitan PICKS, Ekitan LOCAL, and Ekitan
Odekake-Lab) should be reinforced in line with the RMP framework.
Enhancement of regional information/contents, and even higher ranking in searching“regional XX” should be sought.
By becoming a regionally powerful site attracting more users, visitors to the media
should be increased and profitability of adnet/affiliate advertisement should be
expanded.

Advertisementbusiness

Sales expansion by advertisement media
Expansion of Proud Engine and Cirqua (matching of advertisers and media)→ Applying both companies’ own technologies relating to advertisement and otherelements to the RMP framework will lead to profitability expansion.

Solutions business

By deploying current services related to transfer information for corporations in linewith the RMP framework and then applying them to municipalities and railway
companies, solution services which would contribute to marketing activities such as
attracting customers should be deployed around a regional axis.
Provision of existing services such as MaaS packages and novel solution services should
contribute to regional revitalization.

Strategy 2) M&A/alliance strategy
Promotion of the new Investment/Incubation Business should be accelerated
around newly established EKITAN I&I.
Copyright© 駅探. All Rights Reserved21

~ From the Stations ~【Contact for IR】
EKITAN Co., Ltd. IR staff

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.

Copyright© 駅探. All Rights Reserved