Briefings on Financial Results for the Fiscal Year Ended
September 30, 2020 (FY2020)

November 13, 2020

APAMAN Co., Ltd.
JASDAQ: 8889
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0Impact of Japan’s Declaration of a State of Emergency

1. Because of lockdown orders in the U.S. and other countries,
temporarily closed all overseas fabbit locations
2. Urgently distributed sanitation products to employees, their familymembers, franchised companies and took other actions
3. Supported franchised stores by offering large discounts for fees andother measures
4. Temporarily closed or completely shut down directly operated
locations5. Sharp drop in metered parking users

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1

Results of Operations(Billions of yen)

Year-on-year decline due to the effects of the COVID-19 pandemic

Net sales
45.93

Gross profit

Operating profit

44.11

41.68

11.30

11.63

2.05

9.67

1.62

0.84

FY2018FY2019Copyright © APAMAN Co.,Ltd. All rights reserved.

FY2020FY2018FY2019FY2020FY2018FY2019FY20202

Results of Operations
Year-on-year decline due to the effects of the COVID-19 pandemic, a decrease in
the number of directly managed stores and other factors

SG&A expenses
FY201818/9

FY201919/9(Billions of yen)

Profit attributable toowners of parent
0.27

FY202020/90.16

FY2018FY2019FY2020(8.83)(9.68)(9.58)

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(1.07)

3

Results of Operations (Composition of gross profit)
Solid trend in constant-revenue gross profit

Constant-revenue gross profit
Property management/sub-leasing, cloud/franchiseservices, utilization fees for co-working locations(fabbit) and others

7.25(Billions of yen)

Other gross profit
Brokerage fees, consulting fees, operational
investment securities and others

7.36

6.10
5.20

4.38

2.31

FY2018FY2019FY2020FY2018FY2019FY2020Note: Sales for businesses in the same segment that are divided between constant-revenue and other gross profit include transactions within the segment that areeliminated in the consolidated financial statements.
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4

Business Domain (Constant revenue, Others)

Constant revenue business / Other business
Main business

Constant
revenue

Rental management and subleasing○Management fee

Rental brokerage

×Brokerage fee

Cloud service○

Usage fee

Franchise service○

Royalty fee

fabbit○Utilization fees

fabbit×

Consulting fee

Metered parking○

Parking fee

Segment

Platform

Primary income source

Cloud technology

Sharing economy

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5Size of Customer Base
Segment

Main business

Customers/Market size

Rental management andsub-leasing

92,676 units (up 4,706 units)

Directly operated stores

72 stores (down 20 stores)

Platform

Stores

1,046 stores

Cloud service

Property
management/Subleasing

Approx.
1,030,000 units

Franchise service

Property ownerrelationships

Approx. 200,000
ownersfabbit11,137 members

Metered parking

4,051 parking spaces nationwide(up 462 parking spaces)

Cloud technology

Sharing economy

Notes: Rental management and sub-leasing, directly operated stores and metered parking businesses include directly operated stores, and cloud service, franchiseservice and fabbit businesses include FCs and alliance partners.
The number of property management/sub-leasing units (approx. 1,030,000 units) and the number of property owner relationships (approx. 200,000 owners)
are as of November 2018 using Apaman Network data.
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6

Current Priorities

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7

Current Priorities

Growth ofonline
operations

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Growth ofsources of
constant
revenue8Current Priorities 1. Growth of Online Operations

Activities for the growth of online operations
Online First
Locate and rent anapartment online

Automated rental
management

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Online explanations
and contracts

Shared electronickeys for apartments

Use of AI formarketing activities

Automated rental
brokerage service

Online meetings

Online seminars(Property owners, franchisedcompanies, members)(Property owners, franchisedcompanies, members)

9Current Priorities 2. Growth of Sources of Constant Revenue

Increase the number of managed/subleased properties
Increase the number of managed/subleased properties through M&A
Increase master leases for the provision ofcompany housing

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10Current Priorities 2. Growth of Sources of Constant Revenue

Increase the number of managed/sub-leased properties
Simulation of operating profit growth if 10,000 units are added every year
Assumptions

1.49

50 salespeople needed

1.31

Operating profit of 20 million yen per 1,000 units
1.13

Attrition rate of approximately 1%0.95（単位：億円）(Billions of yen)

0.76
0.57
0.38
0.19
(0.20)

1st year(0.01)

2nd year 3rd year

4th year 5th year 6th year 7th year

8th year 9th year

10th year

Note: This is a simulation and all figures are estimates.
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11

Current Priorities 2. Growth of Sources of Constant RevenueIncrease the number of managed/sub-leased properties
through M&A
Simulation of operating profit contribution from adding 10,000 units using M&A
1.70

Assumptions
Operating profit of 18 million yen per 1,000 units
Attrition rate of approximately 1%（単位：億円）(Billionsof yen)

1.54
1.38
1.21
1.04

0.87
0.70
0.53
0.35
0.18

1st1年目year

2ndyear 3rd3年目
year
2年目

4th
year 5thyear 6th
year 7th7年目
year 8th8年目
year 9th9年目
year
4年目
5年目
6年目

10thyear
10年目

Note: This is a simulation and all figures are estimates.
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12

Current Priorities 2. Growth of Sources of Constant Revenue
Increase master leases for the provision of company housing

Companyhousing
mediation
service

Leasedcompany
housingCompany
housingagency service

Contracted withapproximately
10,000 companies

Insignificant

Alliances withother companies

Note: Including FCs

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13

Sharing Economy Business

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141. Co-working

Co-working

As of September 30, 201945 locations
As of September 30, 2020

46 locations
fabbit Global Gateway "ACROS Fukuoka"
Note: The number of locations includes sites that have been leased but not yet started operations.
Also, the number of locations includes sites operated directly and by franchisees or companies where APAMAN has made an investment.
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15

1. Co-working

Significant increase in the number of members

Number of members

Number of locations

Number of matches

Number of events held

11,137

46

121,8762,959

All events were cancelled from the end of February 2020 to prevent the COVID-19 pandemic.
Some online seminars have taken place and events resumed in July that combine in-person and online formats.
Note: As of September 30, 2020.
- The number of members includes fabbit, Compass and companies where the APAMAN Group has made an investment.
- The number of locations includes sites where design or construction work is under way and also includes Workbar, which has received an investment from theAPAMAN Group.
- The number of matches is the cumulative number of matches between members. One match is when two people are introduced to one person who attended anevent or other gathering.
- The number of events is the cumulative number of events held by fabbit, Compass, Fukuoka Growth Next and companies where the APAMAN Group has made aninvestment. All events are included regardless of their size.
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16

1. Co-working (Overseas locations)

シェアリングエコノミー

All overseas locations have reopened following the endof lockdowns

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17

2. ParkingParking

As of September 30, 2019

3,589 parking spaces
As of September 30, 2020

4,051 parking spaces
Note: The number of locations includes sites that have been leased but not yet started operations.

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18

FY2020 Consolidated Results

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19

1. Overview of Consolidated Results (YoY comparison)(Millions of yen)

FY2019Remarks(Major factors)

FY2020YoY change
Amount%Temporarily closed or completely shut down
directly operated locations (Platform)

Net sales

45,934

44,119-1,815-4.0%-1,959-16.8%

-744

-7.8%

-1,214-59.1%

Share of loss of entities accounted forusing the equity method-721-98.8%

Loss on sales and retirement of noncurrent assets, costs involving COVID-19
pandemic countermeasures, etc.

-105

-38.9%-728-29.5%

Discounts to FCs (Cloud Technology)

Lower revenue on operational investment
securities (Sharing Economy)
Temporarily closed or completely shut down
directly operated locations (Platform)

Gross profit

11,637

9,678

Discounts to FCs (Cloud Technology)

Lower revaluation on operational investment
securities (Sharing Economy)

SG&A expenses

9,582

8,837

Operating profit(operating margin)

2,055

840

(4.5%)(1.9%)

7298Ordinary profit
Profit attributable toowners of parent
EBITDANote

272

166

Decrease in number of stores

Same as the above

Tax effect

2,471

1,743

Decrease in ordinary profit

Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill
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20

2. Overview of Consolidated Balance Sheet (vs. end-FY2019)(Millions of yen)

Liabilities andnet assets

EndFY2019

EndFY2020

Current liabilities

10,2239,190-1,033

909

1,023+114

Short-termborrowings Note

2,053

1,942-111

Other7,260

6,224-1,036

18,844

20,621+1,776Long-term
borrowings

16,076

17,787+1,711-566

Long-term lease andguarantee deposited

1,642

1,757

+114

9,022+355

Other

1,125

1,076

-49

6,741

6,918+177

Total liabilities

29,06829,811

+743

1,925

2,103+177

Capital

7,983

7,983

-

Investments andother assets

5,839

6,674

+834 assets: +882

Net assets

4,861

4,443

-417

Total assets

33,92934,255

Total liabilities andnet assets

33,92934,255+325

AssetsEndFY2019

EndFY2020

Current assets

15,122

14,824-297

Cash and deposits

7,959

7,561

-398

Accounts payabletrade

Notes and accounts
receivable-trade

1,669

1,746+77

Operational
investment securities

1,105

1,205+99

Other

4,388

4,311

-76

18,807

19,430+623

Property, plant andequipment

4,299

3,733

Intangible assets

8,667

Goodwill
Other intangible
assetsNon-current assets

YoYchangeNote: Includes current portion of long-term borrowings
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Remarks

Non-current liabilities

Deferred tax+325

YoY
changeRemarks

21FY2020 Results by SegmentCopyright © APAMAN Co.,Ltd. All rights reserved.

22

1. Net Sales and Operating Profit by Segment (YoY comparison)(Millions of yen)

Platform
35,746

Cloud technology

Sharing economy

Other business

34,822Left:

FY2019Right:FY2020Netsales
8,067

7,573
3,165

1,837

2,368

511

400

(398)

(386)

1,819
1,263

Operatingprofit

847
352

(720)

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2. Platform Business (YoY comparison)(Millions of yen)

FY2019YoY change

FY2020

Amount%Net sales

35,74634,822-923-2.6%

Operating profit

1,837

1,819-17-0.9%

Number of directly managed
franchised stores
92 stores →stores

Number of units under management
87,970 units →units

Insurance

Rent guarantees

Emergency
assistanceElectricity/Gas

Money transfers

Telecommunications

Key exchange

Collection of feesfor NHK
subscriptions

Collection of fees
for CATV
subscriptions

Gross profit of included and associated services

1,889 million yen →million yen

Note: Due to COVID-19 and other factors

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24

3. Cloud Technology Business (YoY comparison)(Millions of yen)

FY2019YoY change

FY2020Amount%

Net sales

8,067

7,573-493-6.1%

Operating profit

1,263847-415-32.9%■ Cloud technology services
Introduction CLOUD

Appraisal CLOUD

Sharing key

Note: The sharing key is a product of a company in which APAMAN has made an investment.
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25

4. Sharing Economy Business (YoY comparison)(Millions of yen)

FY2019Net sales

Operating profit

YoY change

FY2020

Amount%3,165

2,368-796-25.2%

352(720)-1,072‐

Directly managed locations
45 →3,589 parking spaces→parking spaces

Note: The number of locations includes sites that have been leased but not yet started operations.
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26

5. Analysis of Net Sales and Operating Profit by Segment (YoY)(Millions of yen)

FY2019Net sales

FY2020profitGross profit GrossmarginYoY change

profitGross profit GrossmarginNet sales

Net sales

profitGross profit GrossmarginPlatform

35,746

9,382

26.2%

34,822

8,639

24.8%

-923-742-1.4%

Cloud technology

8,067

2,284

28.3%

7,573

1,761

23.3%

-493-522-5.1%

Sharing economy3,165

1,109

35.1%

2,368

(10)

-0.5%

-796

-1,120-35.5%

Other business

511

131

25.8%

400

123

30.9%

-111

-8

+5.1%

(1,556)(1,270)-(1,046)

(835)

-+510

+434

-

45,934

11,63725.3%

44,119

9,678

21.9%

-1,815-1,959-3.4%

Adjustment (elimination or corporate)
Total
SG&A expenses (SG&A expenses ratio)
Operating profit (operating margin)

9,582

20.9%

8,837

20.0%

-744

-0.8%

2,055

4.5%

840

1.9%

-1,214-2.6%

Operating profit

SG&Aexpenses

Gross profitPlatform-742

Cloud technology-522

Sharing economy-1,120

Other business-8

Adjustment+434

Operating profit

SG&A expenses+744

FY20192,055

FY2020840

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27

FY2021 Consolidated Forecast

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28

1. Overview of Consolidated Forecast (YoY comparison)(Millions of yen)

FY2020Results

Net sales

Operating profit(operating margin)

Ordinary profit

Profit attributable to ownersof parent

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YoY change

FY2021
ForecastAmount%

44,11944,500+380+0.9%840

1,800+959(1.9%)(4.0%)(+2.1%)+114.2%8

1,000+991-166

550+383+230.0%

29Merger of fabbit and Systemsoft

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30

1. Impact of the fabbit-Systemsoft Merger

Sharing economy 2.3
Other 0.2

Parking 0.9

fabbit 1.2

Cloud technology:

7.5

fabbit (non-consolidated)
Net sales
1.3 billion yen
Operating profit (0.1) billion yen

Platform:

34.8

fabbit 1.3

Others / eliminations:(0.6)

X-digital・SES

Note: Based on consolidated figures for FY2020; Unit: billions of yen
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31

2. Reason for the fabbit-Systemsoft Merger• Selection andconcentration on Re-Tech→ Platform→ Cloud technology• Expect orders andcollaboration with fabbitmembers• Increase x-digital initiatives• Strengthen collaboration
with overseas IT firms
fabbit performance figures

Number ofmembers
Rental management+ sub-leasing

Appraisal CLOUD

Number oflocations

Number ofmatches

Number ofevents held

Sharing key

Note: As of September 30, 2020

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32

Cautionary Statements
Amounts are rounded down to the nearest million yen and percentages are rounded off to the first decimal place. Accordingly, figures calculated using mathematicalformulas and the resulting figures stated in this material may not agree. The information presented in these materials, excluding past results but including management
strategies, plans, and forecasts, is forward-looking information, based on certain assumptions deemed reasonable in light of the information available at the time thesematerials were prepared. Actual results may differ significantly from these forecasts as a result of a variety of factors going forward. The information contained in thesematerials is subject to change without notice.
Every effort has been made to ensure the accuracy of the information contained herein, but APAMAN makes no guarantee regarding the accuracy, usefulness, ortimeliness of such information. APAMAN assumes no responsibility for losses incurred as a result of errors in the information contained herein.
These materials were prepared for the purpose of presenting the business overview of APAMAN and its affiliates, and are not intended as a solicitation or offer forinvestment. Investment decisions are entirely those of the investors.
This presentation uses numbers that are accurate at this time and makes no guarantee regarding numbers used in past presentations concerning results of operations.
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33