Financial Results Briefing for the
Fiscal Year Ending June 2024
Listing: Tokyo Stock Exchange Prime, Sapporo Securities Exchange
Securities code: 9450

©Fibergate Inc. all rights reserved.

2

Table of Contents

Fiscal Year Ending June 2024 _P4Mid-term Vision and Future Plans_P17

Full-year Financial Forecast for the Fiscal Year Ending June 2025 _P31
Appendix _P40

©Fibergate Inc. all rights reserved.

3

Key Points
FY2024/6 Results
Company-wide trend

Company-wide trend

Home-Use BusinessBusiness-Use BusinessYoY increase in ordinary
incomeROE

Q4 Cross-selling
flow sales ratio

Q4 operating
income margin

12.0%

32.4%

4.6%

+

29.9%

FY2025/6/medium-term outlook
Company-wide trend

Company-wide trend

Company-wide trend

Business-Use Business

Expected ordinary
income growth rate for
FY2025/6

Expected dividends for
FY2025/6

Growthstage 5

Expected operating
income margin for
FY2025/6+8.5％

9.5yen+OPIIer©Fibergate Inc. all rights reserved.

31.1%

Fiscal Year Ending June 2024

©Fibergate Inc. all rights reserved.

5

Summary of Consolidated Financial Results of FY2024/6⚫

⚫

In FY 2024/6, revenue slightly declined YoY, and ordinary income was up 5% YoY. This is the first decline in revenue since the company's listing in 2018. While thetrend of increasing telecommunications revenue remained unchanged, the decline in real estate had an impact. Operating profit margin was 19.0%, the highest
figure since the company's listing. The emphasis on profit has steadily shown results. Compared with the initial forecast, the performance fell slightly short due to theimpact of overheated competition in the home-use market.
By business segment, the business-use business showed notable growth as the effects of laying the foundation for growth were realized. The home-use business also
remained strong due to an increase in stock projects. However, the real estate business saw a significant decline in revenue and profits due to a decrease in sales.

(in millions of yen)
Rounded down to the nearest million yen
Rounded to the nearest 0.1%

FY2022/6
Results

FY2023/6
Results

FY2024/6 Full Year
Initialforecast

Difference frominitial forecast

Results

YoY comparison
Difference

Rate of change

10,624

12,795

13,71012,613▲1,096

▲182

▲1.4％

Home-Use

8,141

9,600

11,02010,386

▲633

+785

+8.2％

Business-Use

1,244

1,512

1,860

1,675

▲184

+163

+10.8％

Real Estate/Renewable
Energy/Other

1,238

1,682

830

551

▲278

▲1,131▲67.2%

1,652

2,320

2,530

2,387

▲142

+67

+2.9％

Home-Use

2,318

2,970

3,290

2,910

▲379

▲59

▲2.0％

Business-Use

235

289

460

480

+20

+190

+65.9％

Real Estate/Renewable
Energy/Other

52

138

80

64

▲15

▲73

▲53.2％

Adjusted▲953▲1,078▲1,300▲1,068

+231

+9

+0.9％

1,604

2,290

2,520

2,395

▲124

+105

+4.6％

15.1%

17.9%

18.4％

19.0%

+0.6pp+1.1pp

-

1,073

1,482

1,680

1,567

▲112

+84

+5.7%

Sales

Operating Income

Ordinary Income
Ordinary Income Margin
Parent Company Current Net
Income©Fibergate Inc. all rights reserved.

6

Consolidated Financial Results Summary: Quarterly Trends⚫
⚫

In Q4 of FY2024/6, revenue and ordinary income declined by 33% and 13%, respectively, YoY. While the communications business saw an increase in sales, thereal estate business saw a backlash from the concentration of projects in the previous year.
Revenue and profits also declined compared with Q3. Seasonal factors had an impact on the communications business, while a decrease in projects had an impact
on the real estate business. However, sales for the business-use business reached a record high for the quarter.

(in millions of yen)

FY2023/6

FY2024/6

Q3/Q4
Comparison

Year-on-year
Comparison

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2,591

2,612

3,024

4,567

2,852

2,953

3,731

3,075

▲655

▲1,491Home-Use

2,256

2,245

2,632

2,466

2,521

2,565

2,729

2,569

▲159

+103

Business-Use

329

350

381

450

327

356

490

501

+10

+51

Real Estate/Renewable
Energy/Other

5

16

10

1,650

4

31

511

4

▲506

▲1,645

480

511

745

582

525

573

783

504

▲279

▲77

Home-Use

671

717

897

683

714

767

817

610

▲206

▲72

Business-Use

46

70

89

83

56

98

163

162

▲1

+78

Real Estate/Renewable
Energy/Other

▲8

4

▲2

145

▲4

14

63

▲9

▲73

▲154

Adjusted

▲229

▲280

▲238

▲329

▲241

▲307

▲260

▲259

+1

+70

480

500

737

571

548

569

778

499

▲278

▲71

18.5%

19.2%

24.4%

12.5%

19.2%

19.3%

20.9%

16.3%

▲4.6p

+3.7p

337

338

499

306

370

361

524

310

▲213

+4

Sales

Operating Income

Ordinary Income
Ordinary Income Margin
Parent Company Current
Net Income©Fibergate Inc. all rights reserved.

EBITDA Trends

7⚫

Q4 accrual-based EBITDA was 3.8 billion yen on a 12-month basis. EBITDA margin declined slightly but remained in the 30% range. EBITDA margin for FY2024/6 was 32%.

⚫

EBITDA margin has remained at around 30% since the company’s listing. Cash flow generating capability remains strong, and EBITDA levels are on the rise as businessexpands

EBITDA Trends（based on 12-month calculation）(in 100 millions of yen)

EBITDAEBITDA margin

38%
33%
34%

34%

34%

33%

31%

31%
26%

30%

25%

31%

31% 32%

25%

27%

22%

22%

18%

49

46
19%

39

17%
18

FY2018/6

Q1

Q2

17

Q3

FY2019/6

Q4

Q1

Q2

25

27

28

Q1

Q2

Q3

29
22

23

Q4

Q1

34

29

32

34

Q1

Q2

36

38

Q1

Q2

38

14

11

7
Q4

23

21
13

28

33%

32% 32%32%

Q3

FY2020/6

Q4

FY2021/6

Q2

Q3

FY2022/6©Fibergate Inc. all rights reserved.

Q4

Q3

FY2023/6

Q4Q3

FY2024/6

Q4

Ordinary Income Analysis of Factors of Change in Profits

8⚫

⚫

The increase in ordinary income was driven by the effects of increased telecommunications revenue and an improvement in product mix. The effect of increased
telecommunications revenue was contributed to by the home-use business, while the improvement in product mix was contributed to by the business-use business.
In particular, the business-use business saw progress in the realization of profitable projects fromQ2 onwards.
With regard to costs, there was an increase in depreciation expenses and line usage fees. However, the impact of these was absorbed by the improvement in thetelecommunications top line. In particular, labor costs, unlike the recent trend of rapid increases, were slightly restrained. While the unit labor cost increased, laborsaving by improvement of productivity was pursued.

FY 2024/6 Ordinary Income Analysis of Factors of Change in Profits YoY(in 100 millions of yen)

+1.9

22.9

▲2.1

+0.2

23.9

▲0.4
▲3.1

+4.2

+0.4

Factors for profit increase
Factors for profit decrease

FY2023/6
Variable costs
operating income
increase/decrease

Telecommunications
revenue increase

Difference incomposition

Depreciation
increase/decrease

Personnel costs
increase/decrease

Other fixed cost
increase/decrease©Fibergate Inc. all rights reserved.

Variable costs
Unit pricefluctuation

Non-operating
incomeFY2024/6
Variable costs
operating income
increase/decrease

Operating Income Comparison with Initial Forecast

9⚫
⚫

Operating income fell short of the initial forecast by 140 million yen. This was mainly due to the sluggish sales channels for certain customers in the home-use
business.
By contrast, the business use business is progressing favorably, with past sales developments coming to fruition. Main office-related expenses are also being reduced,
mainly through labor costs, due to improvements in productivity.

Initial forecast

Results

2.53 billion yen

2.39 billion yen
Initial forecast comparison▲0.14 billion yen

Home-Use BusinessInitial forecast ▲0.38billion yen：Due to overheated competition, growth in certain customer
sales channels has stagnatedBusiness-Use BusinessInitial forecast +0.02billion yen： Sales strategies have been successful and are progressing
favorably

Real Estate BusinessInitial forecast ▲0.01billion yen： Sales of initially planned projects have been postponed

Main office-related

Initial forecast +0.23billion yen： Productivity improvements have led to progress in reducing
labor costs©Fibergate Inc. all rights reserved.

Home-Use Business: Number of Houses Opened

10⚫
⚫

The number of houses opened for new construction projects in Q4 of FY2024/6 was roughly at the same level as that of the previous year. The ratio of houses
opened for new construction projects to the total number of houses opened increased from 41% in the previous year to 46%.
The number of units is down compared with Q3; this is because new construction projects, unlike existing construction projects, are inevitably affected by seasonality.
Considering the risk of existing potential projects dwindling as the penetration rate of network connections increases, it is recognized that a trend increase in the ratioof new construction projects is essential.

Home-Use Business
Trends of the Number of New Internet Connection Construction Projects
Newly completed construction in
full swing

Start of strengthening sales for
new construction projects

57%

Number of new internet connection construction projects
Ratio of new internet connection construction projects to all projects

1.9
33%

45%
36%

34%
1.0

Q1

Q2

2.2

41%

33%

1.0

48%

2.3
31%

1.3

1.3

46%

43%
38%
1.3

1.1

1.0

1.1

0.8

Q3

FY2022/6

Q4

Q1

Q2

Q3

Q4

FY2023/6*Index showing the number of new internet connection construction projects in FY2022/6 Q1 set at 1

©Fibergate Inc. all rights reserved.

Q1

Q2

Q3

FY2024/6

Q4

Home-Use Business: Cross-selling Status

11
⚫

⚫

Cross-selling, which the company began to focus on in earnest from FY2023/6, is positioned as an approach to drive the growth of the home-use business. Flow sales(recorded at the time of introduction), which is a leading indicator of the business, totaled approximately 70 million yen on an accrual basis in Q4. Sales volume
gradually increased due to active expansion.
The share of flow sales of the home-use business exceeded 10% for two consecutive quarters. While the contribution of seasonal factors such as an increase in thenumber of completed new construction projects in Q3 cannot be ruled out, the cross-selling sales ratio increased even after the impact of the pandemic subsided in
Q4, which is seen as a major step forward for the cross-selling strategy.

Cross-selling flow sales trends
Ratio of cross-selling (flow sales) to Home-Use…

(in millions of yen)

12.0%

FG Smart Call

100

Cross-selling flow sales

10.6%
9.4%
7.6%

75

FGTV

4.8%

Delivery box
installation service

7.4%

6.1%

5.6%

Smart lock/smart sensor

50

25

EV charging station

Network camera
0

Q1

Q2

Q3

Q4

Q1

FY2023/6©Fibergate Inc. all rights reserved.

Q2

Q3
FY2024/6

Q4

(Reference) MM Research Institute Share Survey

12⚫
⚫

According to MM Research Institute's survey of property-wide condominium ISP share, the most recent share of the company was 9.1%. The company’s shareranking rose from 4th place last year to 3rd place.
Over time, both the company‘s market share and ranking have steadily increased. Even within the industry, the company's home-use business has a strong presence.

MM Research Institute

Survey of property-wide condominium ISP share*

8.7%
7.6%

Share

8.1%
3

6.6%
5.5%

4

5

9.1%

4

4

4

2022/32023/3

Share ranking*Excluding OEM supply

7

7

2017/3

2018/39
2016/3

2019/32020/32021/3©Fibergate Inc. all rights reserved.

2024/3

Operating Income Margin and Customer Attributes

13⚫
⚫

The business-use business continues to grow. The operating income margin has been maintained at around 30% since Q3, improving to a level comparable to that of
the home-use business.
The breakdown of flow sales in the second half of the year is as follows: On-premise communication infrastructure services 43%, communication device sales 33%,
and others 24%. Free Wi-Fi sales are expanding steadily in the three target areas of medical care/nursing care, public/transportation/logistics, and tourism, which
comprise the mainstay of the business. This is followed by food/retail/services/entertainment.

Business-Use Business
Trends in operating income margin

Business-Use Business
Breakdown of customer attributes for sales during second half of term

12％

33.3%

Medical/Care
32.4%

27.6%

Others

20.6%

17.2%

18.5%

33％

17.3%

14.1%
Q3

FY2022/6

Q4

Q1

Q2

8％
Tourism

Q3

FY2023/6

Q4

Q1

Q2

Q3

Q4

FY2024/6©Fibergate Inc. all rights reserved.

6％
Food/Retail/Service/
Entertainment

10％

Communication
Device Sales

15.1%

Q2

Public/Transportation/
Logistics

Flow sales for thesecond half of
FY2024/6

20.0%

Q1

7％

0.63
billion yen

23.5%

22.9%

Three Target
Areas

24％

Other Free Wi-Fi
On-Premise Communication
Infrastructure Services（Formerly: Free Wi-Fi）

43％

Trends in Key Indicators

14⚫
⚫

The number of homes connected to the residence Wi-Fi service at the end of Q4 was approximately 620,000. The pace of increase in the number of connected homes
slowed slightly to 14,000 per quarter.
Sales of flow business, which is a leading indicator for business-use, totaled 960 million yen. This is a recovery of 1.5 times the level recorded in the June 2022 period,
which fell sharply due to the COVID-19 pandemic. Along with the increase in flow sales, stock sales also steadily rose to higher levels.

Trends in number of residences connected to
the Residential Wi-Fi service

Trends in Business-Use sales by flow/stock(thousands of houses)

Flow

Stock

(in millions of yen)

1,180

Changes over the past 5 quarters
Q4

Q1

Q2

Q3

618

Q4

541

541.1 559.8 581.0 603.7 617.6

956

919

849

451

841

371
280

636
533
454

207
152

©Fibergate Inc. all rights reserved.

505

672
609

720

Consolidated Financial Summary (Balance Sheet)

15⚫
⚫

The equity ratio at the end of the term was 44.3%. This also reached the highest level since the company’s listing. Going forward, the focus will shift from fiscal
soundness to leveraging.
Total assets increased slightly. Although cash and cash equivalents and real estate inventory decreased, this was due to an increase in accounts receivable due toincreased telecommunications sales and an increase in related fixed assets. Regarding the credit side, while the company has continued to reduce contract liabilities
and reduce borrowings, net assets have increased significantly due to increased business performance.

(in millions of yen)

FY2022/6

FY2023/6

FY2023/6
increase/decreasecomparison

FY2024/6

6,028

5,559

5,339

▲220

Cash and deposits

2,303

2,382

2,120

▲262

Accounts receivable

1,375

1,585

1,772

+186

Inventory (Communications)

654

637

666

+29

Inventory (Real estate)

1,426

655

489

▲165

7,057

7,203

7,736

+532

6,204

6,565

7,200

+635

Total Assets

13,087

12,764

13,076+311

Liabilities

9,808

8,005

7,240

▲765

Interest-bearing liabilities

6,653

4,672

4,442

▲229

Contract liabilities

1,958

1,638

1,317

▲321

Net Assets

3,279

4,758

5,836

+1,077

Total Liabilities and Net Assets

13,087

12,764

13,076+311

Current Assets

Fixed Assets
Tangible fixed assets*Rounded down to the nearest million yen Rounded to the nearest 0.1%

©Fibergate Inc. all rights reserved.

Use of cash to increase accounts
receivable and acquire fixed assets

Communications-related
sales growing steadily

Selling progressing

Increase in telecommunications-related
assets due to increase in Wi-Fi contracts

Borrowings once again on a
downward trend
Equity ratio 44.3％

Cash Flow Trends

16⚫
⚫

Free cash flow (FCF) for FY2024/6 was positive (460 million yen). Positive FCF was achieved for two consecutive terms despite declining real estate sales.
Since the company’s listing, the business structure has been one in which business expansion would lead to greater investment burdens, but this trend has now
completely reversed.

Long-term Cash Flow Trends(in millions of yen)

(Full-year trends)(Half-year trends)

Cash flow from operating activities

500 0

Cash flow from investing activities
4,296

FCF
3,343

400 0

2,833
300 0

2,295
200 0

1346

1,751

2,107

608

455
-339

-520

-546

-331

172

-836
-1,329-1,390-1,579-2,257-152-863-1,047-2,072

-3000

92

-504

-1000

-2000

1,053

955

-44

-293

-179

1,779

2,015

543

106
-73

1,711

809

544

100 0

0

1,733

-1,328-1,206-1,171

Secondhalf ofterm

First halfof term

Secondhalf ofterm-2,189-2,377-2,626FY2016/6* FY2017/6 FY2018/6 FY2019/6 FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6*FY2016/6 is a six-month accounting period.

First halfof term

Secondhalf ofterm

FY2022/6©Fibergate Inc. all rights reserved.

First halfof term

FY2023/6

FY2024/6

Mid-term Vision and Future Plans©Fibergate Inc. all rights reserved.

18

Previous Stages and New Growth Stage
2024

Concept of growth stages of the company

Change in business model to meet achanging environment

2015
⚫
⚫
2000
⚫
⚫
⚫
⚫

Founded as an NTT agency
Start of free Wi-Fi service
FGBB.
for condominium residents
Promotion of private brand(PB) strategy

Stage 4

Independent Wi-Fi solutions company
Becoming an on-premise infrastructure integrator

2018Stage 3⚫
⚫

Stage 2
2009
Stage 1

Stage 5

Start of telecommunications
equipment manufacture by
Taiwanese subsidiary
Construction of a one-stop
system for products to services⚫
⚫

Start of free Wi-Fi service
for businesses
Expanding business areas
to include home-use andbusiness-use⚫

Listing as a public company
Building a growth strategy
and internal structure thatcan withstand the pressure ofexternal shareholders
Expanding into real estate
and renewable energy fields©Fibergate Inc. all rights reserved.

19

On-Premise Infrastructure Integrator
On-Premise Infrastructure Integrator(OPIIer)
FG Smart Call

Network camera

Solar Panels

Comprehensive provision of optimalcommunication environments to users

FGTV

Peripheraldevices/IoT services

Energy Storage

High-Voltage
Power Services

Wi-Fi, Anywhere
Renewable
EnergyPBXEV charging station

RouterTelecommunications
equipment

Smart Lock
Smart Sensor

Real
Estate©Fibergate Inc. all rights reserved.

Delivery box
installation service

20

Expected Major Targets

Home-Use Business

Providing the optimalcommunication environment
for each user, withno excess and no lack

Small and medium-sizedbusinesses/businessowners unfamiliar with
network creation

Real Estate Business

Shops

Local
governments

Nursing
homes

Renewable Energy
Business

Lodgingfacilities

Entertainment
facilities

Educational
facilities

Medicalfacilities

Apartments/ Transportation
condominiums

Business-Use Business

Concerns of small and medium-sizedbusinesses/business owners⚫
Major vendors only supply
unnecessarily high-spec
specifications⚫
Proposals from small and mediumsized vendors often lack scalability
and functionality©Fibergate Inc. all rights reserved.

Target Market Position of the Company⚫
⚫

Many small and medium-sized enterprises need to build their own infrastructure, but it is non-core and inefficient.
The company can cover areas that are difficult for large companies to handle due to their scale.

Major telecommunications
companies, etc.

High

Large
corporations

Project unit price21

Small and mediumsized corporations
The number of potential
customers seeking network
development is overwhelming
Small-scale electricalconstruction business
Small and microcorporations
The area of ​the circles represents
the number of potential customers.

Low

High
Project difficulty©Fibergate Inc. all rights reserved.

22

Mid-term Vision and Growth Stage
Future growth stage

Growth stage 5

Comprehensive infrastructure
integrator

On-premise
infrastructure integrator

Independent Wi-Fi
solutions company

Mid-term Vision
Step1

Step2

“Wi-Fi anywhere”
Realizing our Alternative Carrier vision

Realizing the future of infrastructure
created by telecoms and renewableenergy● Continued expansion of the Home-Use field● Progression of the Home-Use field● Thorough strengthening of the Business-Use field● Demonstration of synergies between businesses

4G/LTE
5G

Satellite
transmission

Wi-Fi©Fibergate Inc. all rights reserved.

Home-use Business Strategy

23

Market size and share steadily expanding
Deepening understanding of customer needs and increasing profits through cross-selling
Promotion of sales channel development through collaboration with partner companies, including private brands⚫
⚫
⚫

Number of property side condominiums with ISP provision（Unit: 10,000 units）

1000

MM Research Institute Survey
800

Total of 5.79 million units(580,000 units up from last year)
Net increase in units expected to be justunder 600,000 units annually

CAGR 9.2%

Initiatives until FY2024/6✓ Increasing partner companies✓ Increasing adoption in new properties✓ Expanding services through cross-selling products suchas IoT
Future measures including the above✓ Improvement of operational efficiency system investment✓ Developing diverse and strong partner companies thatare not dependent on specific sales channels andincreasing the number of sales personnel✓ Further strengthening product planning and enhancing
cross-selling services

600

400

200

FY2022/6

FY2024/6

FY2027/6 Target

Number ofcontracted units（Cumulative）

450,000
units

620,000
units

800,000
units

Number of partnercompanies

250
companies

365
companies

500
companies

0

Target/Results
Source: MM Research Institute Total number of property-wide condominiums with ISP(as of the end of March)©Fibergate Inc. all rights reserved.

Business-use Business Strategy

24
⚫
⚫
⚫

Continue to focus on three target areas (hospitals/nursing homes, tourism, and public services)High demand for hospital rooms, care DX, tourism, and venues.
Strengthening key sales, and enhancing expertise to meet needs

Hospitals

Entertainment Facilities
Event and Exhibition Venues

Educational Institutions
Nursing Homes

Clients

Future measures including the above✓ Strengthening sales staff: 10-20% future increase in staff
expected
Enhancing Expertise to Meet Customer Needs✓ Strengthening sales via the web✓ Aug 2024: Establish a joint venture with a collaboratingcompany and develop sales channels

Buses
Local Governments
Hotels
Offices
Warehouses

Initiatives until FY2024/6✓ Increasing unit price through more sophisticated projects
Meeting diverse customer needs, including business use
and peripheral equipment provision✓ Promoting customer benefits through one-stop service✓ Strengthening sales structure and developing partnercompanies in key industries

Tourist Attractions
Commercial Facilities

FY2022/6

FY2024/6

Flow sales

0.6
billion yen

0.96
billion yen

4billion yen

Number ofpartnercompanies

60
companies

92
companies

150
Companies【 Partial market data for key industries 】✓✓✓

General hospitals: 7,314 facilities
General clinics: 102,105 facilities
Nursing care and welfare facilities: 8,494 facilities✓✓✓

Housing for the elderly with home-careservices provided: 287,687homes
Charter buses: 43,649 buses
Municipalities : 1,724

Source: 2022 Ministry of Health, Labour and Welfare Medical Facility Trends Survey / 2022 Ministry of Health, Labour and Welfare
Medical Facility Trends Survey / Overview of the 2022 Ministry of Health, Labour and Welfare Survey on Nursing Care
Facilities/Businesses / 2024 Ministry of Land, Infrastructure, Transport and Tourism: Current Status of Housing for the Elderly with
Home-care Services Provided / 2021 Nihon Bus Association "Bus Business in Japan"

Target/Results©Fibergate Inc. all rights reserved.

FY2027/6 Target

Growth Potential of Non-telecommunications Infrastructure(Renewable Energy and Real Estate) Businesses

25⚫
⚫

The third pillar, the renewable energy business, is the next growth driver
Develop businesses with a shared customer basePromote the Expansion of Renewable Energy Services

Shared customer baseHome-Use
Property owners,
managementcompanies, developers

Real Estate

Initiatives until FY2024/6✓ Introducing and expanding services to local governments✓ Service demonstrations in model homes

Business-Use
Facility management,
owners,store management,
general corporations,
local governments

Future measures including the above✓ Starting offering shared area plans and private area plans
for apartment complexes✓ Continuing to promote expansion into local government
projects✓ Starting construction and proposal of on-site VPP service
modelsRenewable
EnergyRenewable energy has a high affinity with existing sales
channels for telecommunication services, and cross-selling
between telecommunication services and renewable energy(electricity) services can also be expected.

Target/Results

Nontelecommunications infrastructuresales(including sales
from renewableenergy)©Fibergate Inc. all rights reserved.

FY2022/6

FY2024/6

FY2027/6 Target

1.2
billion yen(None)

0.64
billion yen(0.027billion yen)

3.5
billion yen(3.0 billion yen)Promotion of Sustainability Management Creating
Synergistic Effects

26⚫

Contributing to society through telecommunications and renewable energy, ultimately leading to synergistic effects that will expand business opportunities⚫

Engaging in business with an awareness of improving daily living and solving various social issues

Contributing to society throughtelecommunications solutions
Contributing to regional
revitalization

Improving daily living

Promoting carbon offsetting
Lowering energy/environmental costs

Contributing to decarbonization

Renewable Energy BusinessTelecommunications Business©Fibergate Inc. all rights reserved.

27

Mid-Term Business Performance Target
Long-term performance trends(in 100 millions of yen)

19.0%

18.2%

16.3%

18.1%

17.9%

16.4%

Aiming toexceed current
standards

15.1%

12.8%

106

128

126

144

85

74

CAGR
+28.6%

5440
5
FY2018/6

Home-Use

9

12

15

FY2019/6

FY2020/6

FY2021/6

Business-Use

Revised stance toprioritize achieving
profit targets
regardless of sales

16
FY2022/6

23

FY2023/6

Non-telecommunications Infrastructure24

FY2024/6

Ordinary Income©Fibergate Inc. all rights reserved.

43

26

FY2025/6
forecast

FY2027/6
forecast

Ordinary Profit Margin

28

Operational Efficiency Targets

Long-term performance trends
ROE

37.2%

34.8%
32.8%
30.8%

11.4%

11.8%

31.9%

12.4%

29.9%

30.0%

15.0%

ROA
11.5%

12.1%

FY2023/6

FY2024/6

9.5%

8.4%

FY2018/6

30.9%

FY2019/6

FY2020/6

FY2021/6

FY2022/6©Fibergate Inc. all rights reserved.

FY2027/6
forecastTrends in Stock and Flow Income

29⚫
⚫

The path to business growth driven by steady stock growth remains unchanged
Short-term flow expansion is a stepping stone to new stock

Quarterly Trends in Stock and Flow Income (Excluding Real Estate)(in millions of yen)

Stock income

Flow income
14,0001.7 times increase

7,474

8,384

7,300

6,503
5,344
4,264
2,155
1,822

3,132

3,160

3,077

2,883

3,638

3,677

2,314

FY2018/6 FY2019/6 FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6©Fibergate Inc. all rights reserved.

©Fibergate Inc. all rights reserved.

FY2027/6

Estimated Capital Allocation30⚫

To realize the On-Premise Infrastructure Integrator (OPIIer), we have established a strategic investment framework that includes management strengthening, positioning it as
an investment for the next growth stage.

⚫

At the same time, we will uphold our “three-way satisfaction” shareholder return policy, while maintaining investments in business expansion and strategically increasing
leverage.

Capital Sourcing

Capital Allocation
Dividends（Payout ratio ＞ 33％）
3-year total ＞ 2.5 billion yen

Operating CF

Strategic Investments

10 billion yen

3-year total > 3.0 billion yen

3-year total

Fixed Asset Investment
For Business Expansion
External Financing or
Cash Reserves Drawdown

3-year total 5 to 7 billion yen©Fibergate Inc. all rights reserved.

Full-year Financial Forecast for
the Fiscal Year Ending June
2025

©Fibergate Inc. all rights reserved.

Forecast of Consolidated Financial Results for FY2025/6

32⚫

Revenue is expected to increase by 14% and ordinary income by 9% in FY2025/6. In the telecommunications-related field, business-use sales will continue to grow rapidly,and even in non-telecommunications fields, sales recognition for renewable energy and other areas will likely begin, driving revenue growth. In terms of profit and loss, theordinary income margin is expected to be somewhat conservative, but double-digit profit growth is again in sight.

⚫

By segment, home-use is stable, business use is favorable, and real estate and others are expanding rapidly. However, all of these are expected to reach new highs. While thecompany expects an increase in main office costs to strengthen the corporate structure, this will be absorbed by an increase in home-use stock, increase in business-use flow,
and increase in non-telecommunications sales.

(in millions of yen)
Rounded down to the nearest million yen
Rounded to the nearest 0.1%

Sales

FY2022/6
Results

FY2023/6
Results

FY2024/6
Results

FY2025/6
forecast

YoY comparison
Difference

Rate of change

10,624

12,795

12,613

14,370+1,756+13.9％

Home-Use

8,141

9,600

10,386

11,140

+753

+7.3％

Business-Use

1,244

1,512

1,675

2,220

+544

+32.5％

Real Estate/Renewable
Energy/Other

1,238

1,682

551

1,010

+458

1.8x

1,652

2,320

2,387

2,620

+232

+9.7％

Home-Use

2,318

2,970

2,910

3,110

+199

+6.8％

Business-Use

235

289

480

690

+209

+43.6％

Real Estate/Renewable
Energy/Other

52

138

64

180

+115

2.7x

Adjusted▲953▲1,078▲1,068▲1,360▲291▲27.3％

1,604

2,290

2,395

2,600

+204

+8.5％

15.1%

17.9%

19.0%

18.1％

▲0.9pp

-

1,073

1,482

1,567

1,650

+82

+5.3％

Operating Income

Ordinary Income
Ordinary Income Margin
Parent Company Current Net
Income©Fibergate Inc. all rights reserved.

Forecast of Consolidated Financial Results by Segment for
FY2025/6

33⚫

Home-use is expected to remain strong. Operating income is expected to reach a record high. Profit margins are expected to decline slightly due to the promotion of more
flexible sales methods.

⚫

Business-use continues to be strong. Operating income is set to reach a record high for the first time in five years. By exceeding pre-COVID-19 levels, the fruits of the new
approach have been confirmed.

⚫

Regarding the non-telecommunications sector, no remarkable increase in real estate is expected, but record sales in the renewable energy sector is predicted.

Home-Use BusinessBusiness-Use Business(in 100 millions of yen)
Operating Income
Operating Income Profit

35

Operating Income
Operating Income Profit

40.0%

28.0%

25

26.0%

26.5%

40.0%

32.6%

35.0%

28.5%

31.1%

29.6%
27.9%

(in 100 millions of yen)(in 100 millions of yen)

30.9%

30

Non-Telecommunications Business

35

Operating Income
Operating Income Profit

40.0%

35.0%

35.0%
30

28.7%
30.0%

30.0%

30.0%

25

25.0%
25.0%

25.0%

20
20

18.9%

19.2%

17.8%

20.0%

30

15

29

31

15

15.0%

11.7%

15.0%

23
10

19

10

7

10.0%

15

5
5.0%

8.8%

8.2%
10.0%

4.2%
5

3

5.0%

0

1

1

1

0

FY2020/6

0.0%

FY2022/6

FY2024/6

FY2022/6

FY2024/6©Fibergate Inc. all rights reserved.

FY2020/6

2

5.0%

0.0%

0.0%

FY2020/6

15.0%

10.0%

5

4
2

5

0

20.0%

20.0%

FY2022/6

FY2024/6

Key Assumptions for the FY2025/6 Consolidated Financial
Forecast

34⚫

The number of residence Wi-Fi services connected at the end of the fiscal year is expected to be approximately 700,000. While sluggish growth in certain sales channels is
expected, sales are expected to pick up again due to an increase in partner companies.

⚫

Regarding business-use, flow sales, a leading indicator of business expansion, are expected to be 1.47 billion yen. The targets will continue to be the three areas of medicalcare/nursing care, public/transportation/logistics, and tourism. However, based on experience that it takes a considerable amount of time for sales effects to show results, thecompany will also begin developing other areas at the same time.

Trends in number of residences connected to the
Residential Wi-Fi service

Trends in Business-Use Sales by Flow/Stock(thousands of houses)(in millions of yen)

700

Flow

Stock

1,465

618
1,180

541
451

956

919

849

371

841
636

280
454

207

533

505

FY2020/6

FY2021/6

672

720

755

609

152

FY2017/6

FY2018/6

FY2019/6

FY2020/6

FY2021/6

FY2022/6

FY2023/6

FY2024/6

FY2025/6

FY2019/6

forecast©Fibergate Inc. all rights reserved.

FY2022/6

FY2023/6

FY2024/6

FY2025/6
forecast

Embarking on Transformation Looking Toward the Future

35⚫

The company has started transformation to become an on-premise infrastructure integrator (OPIIer), preparing to build a profitable business structure and developing strategies
to withstand the next growth stage.

⚫

The goal is to ensure a profitable structure that can raise the level of operating income per person. In addition to the effects of business expansion, it is aimed to increase
operating income per person by about 50% in FY2027/6.

Strengthening the corporate structure to withstand growth✓

Trends in operating income per person

Labor productivity improvement✓ Core system/analytical tool introduction*✓ Human capital investment (regular salary
increases, office facility development)✓ Utilizing outsourcing (changing non-core
operations into variable costs)✓ Increasing flexibility in sales methods✓ Promoting the sale of telecommunications
equipment in the home-use business (reducing
assets + reducing future tax burden)(in million yen/person)

15

10
7

Strengthening of telecommunications construction
work*✓ Focus on core businesses that require expertise✓ Also explore ways to shorten time by utilizing
M&A
Foundation for increasing operating income per
employee

76Strategic investment for growth
✓

8

10

3

4

FY2017/6 FY2019/6 FY2021/6 FY2023/6

Targeted for a three-year cumulative strategic investment
budget of over 3 billion yen©Fibergate Inc. all rights reserved.

FY2027/6
forecast

Forecast of Consolidated Financial Results for FY2025/6
Quarterly Overview

36⚫

Ordinary income is expected to grow each quarter. While profits typically peak in Q3 due to seasonal factors like new construction, the fiscal year ending June 2025 is anticipated tohave reduced seasonality.

⚫

This is due to continued growth in Business-Use projects and contributions from accumulating Home-Use stock projects.

Image of Trends in Ordinary Income by Quarter(in 100 millions of yen)

7.8

7.4

4.6

4.1

3.8

4.5

4.4

4.2

2.4

2.8

2.8

Q4

Q1

5.1

4.8

5.0

Q1

Q2

5.7

5.5

5.7

Q4

Q1

Q2

5.0

3.8

1.2
Q1

Q2

Q3

FY2020/6

Q4

Q1

Q2

Q3

FY2021/6

Q2

Q3

FY2022/6

Q4Q3

FY2023/6

Rounded down to the nearest million yen Rounded to the nearest 0.1%

©Fibergate Inc. all rights reserved.

Q3

FY2024/6

Q4

Q1

Q2

Q3

Q4

FY2025/6 forecast

Dividend Policy

37⚫

As previously expected, dividends for FY2024/6 are planned to be 17.5 yen per share, an increase of 7.5 yen from the previous year. The dividend payout ratio is expected to
be 22.7%.

⚫

Dividends for FY2025/6 are expected to be 27 yen. The dividend payout ratio is set at 33.2% to achieve a healthy and sustainable profit distribution and realize favorability ingrowth, shareholder returns, and strengthening of financial standing.

Dividend Trends
Interim dividend

Year-End dividend

Commemorative dividend

Dividend payout ratio

(yen)

33.2%

22.7%

9.7%

10.9%
8.0%

8.5%

13.5

12.5

2.0
13.5
8.0

0.0%
0.0
FY2019/6

3.5

4.0

4.5

FY2020/6

FY2021/6

FY2022/6

5.0
FY2023/6

Note: Dividend payout ratio is calculated based on
ordinary dividends only.

©Fibergate Inc. all rights reserved.

FY2024/6

FY2025/6

forecast

forecast

Cost of Capital-Conscious and Stock Price(Update)

38⚫

Historically, the company's ROIC has far exceeded expected WACC. Increasing corporate value is regarded as a top priority.

⚫

The company plans to maintain ROIC at just over 15% in FY2025/6. However, WACC is expected to gradually rise due to increasing interest rates and improving equity ratio.
The company will work to curb WACC while promoting the establishment of highly efficient management in order to improve ROIC to a level greater than the increase in
WACC.

ROIC and WACC Changes

15.3%

15.0%

16.8%

12.6%

ROIC

11.8%

16.9%

15.8%

Our assumed WACC level

FY2018/6

FY2019/6

FY2020/6

FY2021/6

FY2022/6©Fibergate Inc. all rights reserved.

FY2023/6

FY2024/6

FY2025/6
forecast

Cost of Capital-Conscious and Stock Price(Update)

39⚫
⚫

ROE is expected to remain at around 30% in FY2025/6. Despite favorable business performance, the expansion of equity capital will be curbed by increasing
dividends, etc.
However, the long-term downward trend in PBR remains unchanged. While the company is making progress in increasing corporate value, it is recognized thatthe effects may be offset by a decline in growth expectations. The company pursues a growth scenario that raises market expectations by evolving from a WiFi solutions company to an infrastructure integrator.

PBR and ROE
25

ROE
20

35％

31％

32％

37％
31％

(x)

15

10

PBR
5

0

©Fibergate Inc. all rights reserved.

30％

Appendix©Fibergate Inc. all rights reserved.

41

Company Introduction

A future infrastructure company thatcomprehensively develops
communications and renewable energy,
starting as an independent Wi-Fi
solutions company**Independent Wi-Fi solutions company
An independent public wireless LAN operator that comprehensively providing solutions from
communication equipment development to services. Currently, in the field of public wireless LAN (Wi-Fi)
access services, there are 14 companies that are under the jurisdiction of the Ministry of Internal Affairs
and Communications and have nationwide service areas, and our company is on par with major carriers.
©Fibergate Inc. all rights reserved.

Business Flow

Apartment Owners

Service Agreement

Home-Use Business

Internet connection usage(Private brand support)
Service agreement
Service
Agreement

Real estate managementcompanies, residence
manufacturers, etc.
Real Estate Business
Purchase/Sales
Purchase/Sales

Users

Commercial facility operators,
location owners, etc.

42

Renewable Energy BusinessElectricity usage agreement

Solar power generation equipment sales/
maintenance contract

Service agreements/
telecommunications equipment sales
Business-Use Business
Facility-related
business
operators
Service Agreement(Private brand support)
Service Agreement©Fibergate Inc. all rights reserved.

Internet connection usage

Sustainability Management Initiatives

43⚫

Aiming to provide “Wi-Fi to all facilities,” the company aims to enrich daily living by building an infrastructure environment centered on communications, and to focus on management that is conscious of thesustainable development of society by solving various issues.

Identifying important issues (materiality) in the group's sustainability management
Materiality

Details

Contribution to society through communication
solutions① Contribution to everyday living

Promoting carbon offsets through renewable energy
projects① Reduction of CO2 emissions through the
installation of solar power generation systems

Promotion of human capital management① Employee health management② Contributing to community revitalization② Improvement of employee skills③ Development of executive candidates④ Improvement of per employee profitability

Sustainability Affiliates

Regional Revitalization SDGs
Public-Private Partnership
Platform

TCFD Consortium

Human CapitalManagement Consortium©Fibergate Inc. all rights reserved.

GX League

General Incorporated Association

44

History
Year

Event

2000

➢ Founded in Wakabayashi Ward, Sendai City for the purpose of handling subscriptions for domestic and international telephone services.

2003➢ Head office relocated to Chuo Ward, Sapporo City
➢ Building networks for companies with multiple locations and selling broadband lines over the Internet established as the company's main
businesses

2004➢ Residential Wi-Fi business launched

2005➢ Wi-Fi broadband service launched

2006➢ Free internet service for apartment complexes through private brand support launched

2009➢ Free Wi-Fi service business launched2013➢ Established subsidiary NOIS, which handles computerware planning and development and provides Internet line agency services.

2014➢ Started sales business for telecom devices developed by the company (Wi-Fi product business)➢ Launched Wi-Fi service for stores and commercial facilities through private brand support

2015➢ Acquired Telecommunications Contractor Authorization (Governor of Hokkaido Authorization)➢ Established Fibergate Taiwan Inc. as a wholly owned subsidiary in Taiwan➢ Obtained a license for telecommunications business under the Telecommunications Business Act

2018➢ Listed on the Tokyo Stock Exchange Mothers Index

2019➢ Changed listing market to the First Section of the Tokyo Stock Exchange (currently the Prime Market)➢ Listed on the Sapporo Securities Exchange

2020➢ Established product development subsidiary FG-Lab

2021➢ Established subsidiary FG Smart Asset to operate real estate-related business➢ Established subsidiary Off Grid Lab to operate renewable energy business2022➢ Acquired shares in TM Asset, a real estate trading and holding company

2023➢ Renewable energy business began operations

2024➢ Established Enepulse Inc., a joint venture company that operates as an energy agency©Fibergate Inc. all rights reserved.

45

Financial Highlights
Fiscal Year

FY2018/6

FY2019/6

FY2020/6

FY2021/6

FY2022/6

FY2023/6

FY2024/6

Sales(in millions of yen)

3,977

5,446

7,424

8,491

10,624

12,795

12,613

Ordinary Income(in millions of yen)

510

886

1,215

1,543

1,604

2,290

2,395

Current net income(in millions of yen)

312

550

722

1,019

1,073

1,482

1,567

Capital(in millions of yen)

401

426

479

488

494

494

494

4,761

9,807

20

20,487

20,591

20,591

20,593

Total number of shares issued（thousands ofshares）

Net assets(in millions of yen)

1,380

1,981

2,710

3,677

3,279

4,758

5,836

Total assets(in millions of yen)

4,364

5,311

6,984

9,397

13,087

12,764

13,076144.92
81.62
31.62
34.82

202.06
57.60
37.30
32.77

133.52
36.19
38.80
30.81

180.40
50.11
39.13
31.92

160.74
52.60
25.06
30.86

230.12
72.70
36.80
37.19

285.59
77.20
44.27
29.90

Net assets per share（yen）

Net income per share（yen）

Equity ratio（％）

Return on equity（％）

Cash flow from operating activities(in millions of yen)

808

1,345

1,732

1,710

2,295

4,296

2,833

Cash flow from investing activities(in millions of yen)

▲1,328▲1,389▲2,071▲2,256▲2,626▲2,189▲2,377

Cash flow from financing activities(in millions of yen)

868

▲15

699

1,326

436

▲2,027▲723

Cash and cash equivalents at end of term(in millions of yen)

1,118

1,058

1,415

2,196

2,303

2,382

2,120

141

159

180

221

231

232

230

Number of employees（persons）©Fibergate Inc. all rights reserved.

46"Wi-Fi, Anywhere"～Realizing our Alternative Carrier vision～＜ Note Regarding Forecasts＞
The contents of this presentation are based on certain assumptions and do not constitutea promise or guarantee of the realization of future planned figures or policies.

Contact Information
Investor Relations, Corporate
Planning Division
fgir@fibergate.co.jp©Fibergate Inc. all rights reserved.