Briefings on Financial Results for the Second Quarter ofthe Fiscal Year Ending September 30, 2021 (FY2021)

May 7, 2021

APAMAN Co., Ltd.
JASDAQ: 8889
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2Q FY2021 Consolidated Results

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1

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

2Q FY2020

Net sales

22,055

Remarks(Major factors)

2Q FY2021

YoY change

22,582

Increase in number of units undermanagement+526

Increase in number of units undermanagement
Lower revaluation on operationalinvestment securities (FY2020)+583

Gross profit

4,415

4,998

SG&A expenses

4,489

4,570

+80

Operating profit(73)428

Lower revaluation on operational
investment securities (FY2020)
Termination of royalty reduction, etc.

Ordinary profit

(532)

324

Increase in share of profit of entities
accounted for using equity method+856

Profit attributable toowners of parent(822)29

Gain on the change in ownership

+851

342

1,196

Increase in ordinary profit+853

EBITDANote+502

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

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2Overview of Consolidated Balance Sheet (vs. end-FY2020)(Millions of yen)

Liabilities andnet assets

End-FY2020

Current liabilities

9,190

9,991+800

Accounts payable-trade

1,023

1,336+312+289

Short-term borrowings Note

1,942

2,239+296

1,191(14)

Other

6,224

6,415+191

4,311

5,016+705

Non-current liabilities

20,621

19,363(1,257)

19,43019,798+367

Long-term borrowings

17,787

16,721(1,066)

Long-term lease andguarantee deposited

1,7571,696(60)

Other

1,076

945

(131)

Total liabilities

29,811

29,354(457)Assets

End-FY2020

Current assets

14,824

13,570(1,254)

7,561

5,326

(2,235)

1,746

2,036

1,205

Cash and deposits
Notes and accounts
receivable-trade
Operational investment
securities
Other

Non-current assets

2Q FY2021

Change2Q FY2021

ChangeProperty, plant andequipment

3,733

3,573

(160)

Intangible assets

9,022

8,969

(52)

Goodwill

6,918

6,534

(383)

Other

2,103

2,434+331

Capital

7,983

7,983

-Investments and otherassets

6,674

7,255+580

Net assets

4,443

4,014(428)

Total assets

34,25533,369(885)

Total liabilities and net
assets34,25533,369(885)Note: Includes current portion of long-term borrowings

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3

Consolidated Results of Operations

3-year Trend(Billions of yen)

Net sales

Gross profit

23.46

22.58

22.05

Operating profit

5.76
4.99

0.82

4.41

0.42(0.07)
2Q FY2019

2Q FY2020

2Q FY2021

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2Q FY2019

2Q FY2020

2Q FY2021

2Q FY2019

2Q FY2020

2Q FY2021

4Consolidated Results of Operations

3-year Trend(Billions of yen)

Profit attributable toowners of parent

SG&A expenses
2Q
FY201919/92Q

2Q
FY202020/92Q

2Q
FY2021
21/92Q

2Q
19/92QFY20192Q
20/92Q
FY20202Q
21/92QFY20210.02(0.77)(4.48)(0.82)(4.57)(4.93)

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Consolidated Results of Operations Composition of Gross Profit(Billions of yen)

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

Higher gross profit due to an increase in the numberof units under management
Lower gross profit due to higher purchase price of theelectric retailing business
3.36

3.29

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

Valuation loss on of operational investment
securities (FY2020)
Online support at directly operated stores

3.39

2.39
1.60
1.12

2Q FY2019

2Q FY2020

2Q FY2021

2Q FY2019

2Q FY2020

2Q FY2021

Note: 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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Consolidated Results of Operations Composition of Gross Profit
 Gross Profit Share of constant-revenue grossprofit in total gross profit

Share of constant-revenue gross profit in total gross profit(Billions of yen)

7.0
70

6.0
60

80%

75%
5.67

5.78

68%

5.75

4.99

5.0
50

58%

70%
60%

4.41
50%

4.0
40

48%

50%
40%

3.0
30
30%
2.0
20
1.0
10

2.74

2.87

3.363.29

3.3920%10%0%02Q FY2017

2Q FY2018

2Q FY2019

2Q FY2020

2Q FY2021

Note: 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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Revisions for reportable segments
The share of fabbit Business in the Sharing Economy Segment declined following its absorption by systemsoft
Corporation through an absorption-type merger on January 1,2021. To reflect this change, the Sharing Economy
segment (fabbit business, parking business) is reclassified and included in the Other Business segment from thesecond quarter.
Furthermore, the Cloud Technology segment is renamed the Technology segment as its operations, formerly limited
to cloud services, were expanded to promote technologies in general, including RPA and web management.

Before revisions

After revisions

Platform

Rental management andsub-leasing
Rental brokerage/
associated and included

Platform

Rental management andsub-leasing
Rental brokerage/
associated and included

Cloud Technology

Technology
Franchise service

TechnologyTechnology
Franchise service

Sharing Economy

fabbitParkingOthers

OthersReal estate leasing
Retail locations operating

fabbit (other than fabbit Co.,Ltd.)
Parking
Real estate leasing
Retail locations operating

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8Business Domain (Constant revenue, Others)

Constant revenue business / Other business
Segment

Platform

Main business

Constant
revenue

Rental management and subleasing○

Management fee

Rental brokerage

×Brokerage fee

Cloud service○

Usage fee

Franchise service○

Royalty fee

Co-working, etc.

○Usage fee

Metered parking○Parking fee

Primary income source

TechnologyOthers

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9Size of Customer BaseSegment

Main business

Customers/Market size

Rental management andsub-leasing

90,422 units (up 3,947 units YoY)

Directly operated stores

69 stores

Platform

Cloud service
Technology
Franchise service

OthersMetered parking(down 8 stores YoY)

Stores

1,045 stores

Property
management/Subleasing

Approx.
1,030,000 units

Property ownerrelationships

Approx. 200,000
owners

4,233 parking spaces nationwide(up 616 parking spaces YoY)

Notes: Rental management and sub-leasing, directly operated stores and metered parking businesses include directly operated stores, and cloud service and franchiseservice include FCs.
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 September 2020 using Apaman Network data.

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10Change in Customer Base
Number of units undermanagement

Directly managed stores(Units)(Stores)

87,516 86,475

90,422

Metered parking(Vehicles)
4,233

105

108

106
3,486

75,144

3,617

71,078
77
69
2,309

2Q
2Q2Q2Q
2Q
FY2017 FY2018 FY2019 FY2020 FY2021

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2Q
2Q
2Q
2Q
2Q
FY2017 FY2018 FY2019 FY2020 FY2021

2,386

2Q
2Q
2Q
2Q
2Q
FY2017 FY2018 FY2019 FY2020 FY2021

11

2Q FY2021 Results by Segment

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12

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

Platform
17,175

TechnologyOthers

17,948
Left: 2Q FY2020
Right: 2Q FY2021

Net sales
4,038

3,913
1,378962

1,179958

Operatingprofit36187(364)(706)

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Platform Business (YoY comparison)(Millions of yen)

2Q FY2020

Net sales
Operating profit

Number of directly managed
franchised stores
77 stores (2Q FY2020) →stores NoteYoY change

2Q FY2021

Amount%17,175

17,948

+773

+4.5％

962

958-4-0.5%

Number of units under management
86,475 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

774 million yen (2Q FY2020) →million yen

Note: Due to COVID-19 and other factors
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14

Technology Business (YoY comparison)(Millions of yen)

2Q FY2020

Net sales
Operating profit

YoY change

2Q FY2021

Amount%4,038

3,913-125-3.1%

36187+151+416.9%

Technology services

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Analysis of Operating Profit by Segment (YoY)(Millions of yen)

2Q FY2020
Net sales

2Q FY2021

Gross profit

Gross profit
marginNet sales

YoY change

Gross profit

Gross profit
marginNet sales

Gross profit

Gross profit
marginPlatform

17,175

4,384

25.5%

17,948

4,616

25.7%

+773

+232

+0.2%

Technology

4,038

534

13.2%

3,913

640

16.4%

-125

+106

+3.1%

OthersAdjustment(elimination orcorporate)

1,378

(71)

(5.2)%

1,179

95

8.1%

-199

+167

+13.3%

(537)

(431)

-(459)(354)-+77+77-

22,055

4,415

20.0%

22,582

4,998

22.1%

+526

+583

+2.1%

Total
SG&A expenses(SG&A expenses ratio)
Operating profit(operating margin)

4,489

20.4%

4,570

20.2%+80-0.1%(73)(0.3)%

428

1.9%+502+2.2%

Operating profit

SG&A
expenses

Gross profit
Platform

TechnologyOthers+232+106+167

Adjustment+77

Operating profit
2Q FY2021

-80

428

2Q FY2020-73

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16

FY2021 Consolidated Forecast

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

FY2020Results

FY2021
Forecast

Change44,11944,500+380

Operating profit840

1,800+959

Ordinary profit

81,000+991

166550+383

Net sales

Profit attributable toowners of parent

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1. Growth of online operations

Challenges
hampering growth

2. Increase the number of managed/subleased properties
3. Launch of the company-rented housingbusiness (New business)

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Challenges hampering growth

1. Growth of online operations

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

Automated rentalmanagement

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Online explanations
and contracts

Shared electronic
keys for apartments

Use of AI for
marketing activities

Automated rental
brokerage service

Online meetings

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

20Challenges hampering growth 2. Increase the number of managed/sub-leased properties
3. Launch of the company-rented housing business(New business)

Increase the number of managed/subleased properties through M&A
Results: up 3,947 properties YoY

Increase master leases for theprovision of company housing
Results: 20 contracted companies

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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 atthe time these materials were prepared. Actual results may differ significantly from these forecasts as a result of a variety of factors going forward. The information
contained in these materials 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.
Copyright © APAMAN Co.,Ltd. All rights reserved.

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