Real Estate×Technology

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

February 5, 2021

APAMAN Co., Ltd.
JASDAQ: 8889
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1Q FY2021 Consolidated Results

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1

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

1Q FY2020

Remarks(Major factors)

1Q FY2021

YoY change

Net sales

10,630

11,100

Increase in number of units under management+470

Gross profit

2,331

2,526

Increase in number of units under management
Improvement in rental brokerage service+194

SG&A expenses

2,298

2,381

Operating profit

33

144

Increase in number of units under management
Improvement in rental brokerage service+111

Ordinary profit

(198)

55

Increase in share of profit of entities accounted forusing equity method+254

Profit attributable toowners of parent

(325)

(122)

237

493

EBITDANote+82+203
Increase in ordinary profit+255

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

9,611+420

Accounts payable-trade

1,023

1,188+164-12

Short-term borrowings Note

1,942

2,134+191

1,180

-25

Other

6,224

6,288

+63

4,311

4,482+171

Non-current liabilities

20,621

19,986-634

19,43019,187-243

Long-term borrowings

17,787

17,240-546

Long-term lease andguarantee deposited

1,757

1,722

-34

Other

1,076

1,023

-53

Total liabilities

29,811

29,597-214

Assets

End-FY2020

Current assets

14,824

14,393

-430

7,561

6,995-565

1,746

1,734

1,205

Cash and deposits
Notes and accounts
receivable-trade
Operational investment
securities
OtherNon-current assets

1Q FY2021

Change1Q FY2021

ChangeProperty, plant andequipment

3,733

3,670

-63

Intangible assets

9,022

8,794-227

Goodwill

6,918

6,720-197

Other

2,103

2,073-30

Capital

7,983

7,983

-

Investments and otherassets

6,674

6,722

+48

Net assets

4,443

3,984-459

Total assets

34,25533,582-673

Total liabilities and net
assets34,25533,582-673

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
11.29
10.63

Gross profit
11.10

2.64

Operating profit
2.52

0.17

2.33

0.14

0.03

1Q FY2019

1Q FY2020

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1Q FY2021

1Q FY2019

1Q FY2020

1Q FY2021

1Q FY2019

1Q FY2020

1Q FY2021

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Consolidated Results of Operations 3-year Trend(Billions of yen)

SG&A expenses

Profit attributable toowners of parent

1Q
19/9
FY20191Q

1Q
19/9
FY20191Q

1Q
20/9
FY20201Q

1Q
21/9
FY2021
1Q

1Q
20/9
FY20201Q

1Q
21/9
FY2021
1Q(0.12)(0.32)(2.29)(2.47)

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(2.38)(1.20)

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Consolidated Results of Operations Composition of Gross Profit
Solid trend in constant-revenue gross profit
Other gross profit includes revenue from online operations for directly
operated locations

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

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

1.88
1.62

1.74

1.02
0.58

1Q FY2019

1Q FY2020

1Q FY2021

1Q FY2019

1Q FY2020

0.64

1Q 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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6

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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7

Size of Customer Base
Segment

Platform

Main business

Customers/Market size

Rental management andsub-leasing

91,822 units (up 5,316 units YoY)

Directly operated stores

69 stores(down 18 stores YoY)

Stores

1,044 stores

Cloud service

Property
management/Subleasing

Approx.
1,030,000 units

Franchise service

Property ownerrelationships

Approx. 200,000owners

fabbit12,711 members

Metered parking

4,167 parking spaces nationwide(up 567 parking spaces YoY)

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 September 2020 using Apaman Network data.
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8

1Q FY2021 Results by Segment

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9

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

Platform
8,236

Cloud technology

Sharing economy

Other business

8,695
Left: 1Q FY2020
Right: 1Q FY2021

Net sales
1,963

1,878587

Operatingprofit

159262215

12287(108)(92)

253(30)

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673(101)10

Platform Business (YoY comparison)(Millions of yen)

1Q FY2020

Net sales
Operating profit

Number of directly managed
franchised stores
87 stores (1Q FY2020) →stores

YoY change

1Q FY2021

Amount%8,236

8,695+458+5.6%

159262+103+64.9%

Number of units under management
86,506 units →(1Q FY2020)

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

339 million yen (1Q FY2020) →million yen

Note: Due to COVID-19 and other factors
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11

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

1Q FY2020

Net sales
Operating profit

YoY change

1Q FY2021

Amount%1,963

1,878-84-4.3%

215

253

+38+17.9%

Cloud technology services

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12

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

1Q FY2020

YoY change

1Q FY2021

Amount%Net sales

587673+86+14.7%

Operating profit

(30)

(101)

-70

-

Directly managed locations
45 (1Q FY2020) →3,600 parking spaces (1Q FY2020)→parking spaces

Note: The number of locations includes sites that have been leased but not yet started operations.
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13

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

1Q FY2020
Net sales

1Q FY2021

Gross profit

Gross profit
marginNet sales

YoY change

Gross profit

Gross profit
marginNet sales

Gross profit

Gross profit
marginPlatform

8,236

1,895

23.0%

8,695

2,093

24.1%

+458

+198

+1.1%

Cloud technology

1,963

466

23.8%

1,878

499

26.6%

-84

+32

+2.8%

Sharing economy

587

142

24.3%

673

99

14.8%

+86

-43

-9.5%

Other business

122

42

34.9%

87

16

19.3%

-35

-26

-15.6%

(279)

(216)

-(234)(182)-+45+33-

10,630

2,331

21.9%

11,100

2,526

22.8%

+470

+194

+0.8%

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

2,298

21.6%

2,381

21.5%

+83-0.2%

330.3%

144

1.3%+111+1.0%

Operating profit

SG&A
expenses

Gross profit
Platform+198

Cloud technology

Sharing economy+32-43

Other business

Adjustment-26+33-83

Operating profit

1Q FY2021

144

1Q FY2020

33

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14

Current Priorities

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15

Current Priorities

Growth ofdigitaloperations

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Growth ofsources of
constant
revenue16Current Priorities 1. Growth of Digital Operations

Activities for the growth of digital operations
Online FirstOnline explanations
and contracts

Shared electronic
keys for apartments

Use of AI for
marketing activities

Automated rental
management

Automated rental
brokerage service

Online meetings

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

Locate and rent anapartment online

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17

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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18

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

166

550+383

Net sales

Profit attributable toowners of parent

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20

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

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