Medium-Term Plan
FY 6/2023 ~ FY 6/2027

March 17th, 2023

Contents

１

Medium-Term Vision and Management Goals – P.3

２

Business Environment – P.13

３Home-Use Business – P.15

４

Business-Use Business – P.19

５

Non-Telecommunication Infrastructure Business – p.25

6Achieving Human Capital Management – P.28

７Shareholder Returns – P.31
2
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１．Medium-Term Vision and Management Goals

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Medium-Term Vision: Towards 2027

We will help achieve economic growth and social wealthwith our sustainable, high value-added infrastructure– 6/2022

6/2023 – 6/2027
From now

Until now

“Wi-Fi, Anywhere”➢ Grew our business with Home-Use Wi-Fi
at the core
➢ Laid the groundwork for the expansion ofcore cable telecommunications in linewith our Alternative Carrier vision

Step 1 Thorough strengthening of the Business-Use fieldContinued expansion of the Home-Use field

Realizing the future of infrastructure created
Step 2 by telecoms and renewable energy
Progression of the Home-Use field
Demonstration of synergies between businesses

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Medium-Term Vision: Steps Toward 2027

Step 1

Step 2“Wi-Fi, Anywhere”

Realizing the future ofinfrastructure created bytelecoms and renewable energy

Thorough strengthening of theBusiness-Use field

Progression of the Home-Use field・ Strengthen and expand the terminal businessfield to realize our Alternative Carrier vision
・ Position the Business-Use Business as asecond start-up growth driver

Continued expansion of the Home-Usefield・ Provision of total solutions for lifestyleinfrastructure: IoT, telecoms, renewable energy
・ Create demand for infrastructure with the Real
Estate Business

Demonstration of synergies between
businesses

6/2023 → → 6/2025 → → 6/2027
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Realizing our Medium-Term Vision
We will create high value-added infrastructure through the synergy between
our renewable energy and core telecoms businesses

Step 1

Step 2“Wi-Fi, Anywhere”
Realizing our Alternative Carrier vision

4G/LTE
5G

Realizing the future ofinfrastructure created bytelecoms and renewable energy

Satellite
transmission

Wi-Fi
6©Fibergate Inc. all rights reserved.

Medium-Term Management Goals
Through the actualization of Steps 1 and 2, we will progress and grow our businessWe aim for ¥25bn sales and ¥4.3bn ordinary profit
FY2022
MTP GoalBusinessGrowth

FY2027Sales¥10.6bn¥25.0bn

Ordinary Profit (OPM)¥1.6bn(15.1％)¥4.3bn(17.2%)

ROE

30.9%

>30%

ROA (excluding Non-Telecoms Business)

9.9%

>15%

Contracted units(cumulative)

450,000>800,000

Partner companies

250

500

Flow sales

¥600m

¥4bn

Partner companies

60

150

Home-Use
Business

Business-Use
Business

Note: Partner companies are strategic partners with sales channels in the target area
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7Business DomainsProgress the Home-Use Business and grow the Business-Use Business
Expand the Non-Telecoms Business via its synergy with our customer baseHome-Use Business
Provide an all-units-in-one
internet service to rentalapartments✔ Countermeasure to empty units✔ Improvement of real estate value✔ Private brand offering

Non-Telecoms
Business
Merge real estate,telecoms/IoT, and renewableenergy to produce smart,green apartments
We plan to offer independent
renewable energy solutions

Business-UseBusiness
Provision of Wi-Fi networks tovarious facilities,
transportation, andcorporations✔ Promote repeat visits✔ Strong, independent Wi-Fi fortransport✔ Authentication and security
measures8©Fibergate Inc. all rights reserved.

Medium-Term Earnings Targets
We expect strong, stable growth in the Home-Use Business and the fruits of investment and synergy
between the Business-Use and Non-Telecoms Businesses to deliver CAGR 18.7%

Long-Term Earnings Trends(Million JPY)

25,000
3,500

18.2%
16.3%

非通信インフラ
非通信インフラ

16.4%
15.1%

非通信インフラ
ビジネスユース

12.8%

15.2%
12,900

ビジネスユース
10,624

ホームユース

7,500
CAGR+18.7% ホームユース

ビジネスユース
ビジネスユース
ビジネスユース

1,238
1,244

8,491
7,424

17.2%

14,0005,446
3,977

4,300

8,142510

887

FY 6/18

FY 6/19

1,215
FY 6/20

1,544
FY 6/211,604
FY 6/221,960

FY 6/23

18/06期
19/06期
20/06期
21/06期
22/06期
23/06期Non-Telecom
Sales
Home-Use
Sales
Business-Use
Sales
売上高
ホームユース
売上高
ビジネスユース
売上高
非通信インフラ©Fibergate Inc. all rights reserved.

FY 6/27

Ordinary
経常利益
Profit27/06期

Ordinary Profit Margin
経常利益率

9

Market Position For Each Business
Home-Use: Ample room to grow share in a market of stable growthBusiness-Use, Non-Telecoms: Markets with ever-growing demandHigh

非通信インフラ¥3.5bn¥7.5bn¥1.2bn¥1.2bnNonTelecoms¥14bn
FY 6/27

MarketGrowthRate

FY 6/22

BusinessUse¥8.1bnHome-UseLowHighMarket Share
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10

Stock and Flow Sales
The trend of earnings growth from strong stock sales growth will continue, andshort-term flow sales expansion will lay the foundation for further stock sales

Stock and Flow (excluding Non-Telecoms) Sales
ストック収入・フロー収入（除く非通信インフラ）の推移（Million JPY）

14,0002.15x Growth
7,300
6,503
5,344
3,132
2,155
2,314
1,822

FY 6/18
18/06期

FY 6/19
19/06期

4,264
3,160

FY 6/20
20/06期3,077

FY 6/2121/06期

2,883

FY 6/22
22/06期
Stock Sales
ストック売上FY 6/23

FY 6/27
27/06期

Flow Sales
フロー売上

11
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２．Business Environment

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The Business Environment and Changes in Public AwarenessWe continue to handle the negative impact of the semiconductor shortage and sharp rises
in traffic, and we aim for new business opportunities that will arise with changes in themarket environment– 6/2022

6/2023 –Until now

From now on

Cost increasesCost increases① Sharp increase in traffic due to COVID-related
telecoms demand② Rises in the cost of producing telecoms
equipment due to the weak Yen① Manage volatility with bandwidth allocation control② Implement countermeasures to FX risks

Procurement risks③ Delays in stocking and installations due to thesemiconductor shortage
Market environment④ Belief that most existing builds have been
approached⑤ Delays in supplying new builds⑥ Sharp decline in tourism demand due to COVID⑦ Capex stagnation

Procurement risks③ Stabilize supply via diversification of products andsuppliersMarket environment④ Understand that the existing build market isexpanding⑤ Strengthen product options with new builds andrefurbishments⑥ Strengthen sales with recovery of inbound demand⑦ Respond to the demand for security and corporate
telecoms

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The Winning Pattern of Home-Use and Business-Use
We will adhere to the winning pattern established in the Home-Use Business, align ourselves with the changing
business environment, and build the same pattern in the Business-Use Business

Home-Use BusinessBusiness-Use Business

Target facilities

Small- to mid-sized rental apartment complexes(existing and new builds)

Areas/facilities where people spend time; SMEs

Customers

Rental apartment owners

Business owners/municipal bodies

Customers’ goals

Retention and acquisition of tenants

Customer acquisition by improving services;
promotion of customer satisfaction;
improvement of efficiency via DX; security
improvements

Customers’ concerns

Insufficient Wi-Fi installation know-how; lack ofknowledge of IT/telecoms; property too small
for large telecom companies to supply

Insufficient Wi-Fi installation know-how; lack ofknowledge of IT/telecoms; property too small
for large telecom companies to supply

Competitors

FewFew

Private brands

Available

Available

Strategic partners

Yes (to be increased as needed)

Yes (to be increased as needed)

Demand trend

Continued expansion

Rapid expansion

Spread potential

Large (spread of IoT/renewable energy, large
lifestyle infrastructure needs)

Large (large need for holistic management oftelecom systems, not just Wi-Fi)
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３．Home-Use Business

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Scale of the Home-Use Market
Our view
We have revised our view on the Home-Use field‘Apartment-related demand will slowly saturate’ → ‘The market will continue to expand’
The standards for apartment complex facilities will rise higher
We will follow our winning pattern and double our partners
By acquiring contracts for new and existing builds, we will continue to grow

Breakdown of Total Number ofApartments
共同住宅総数内訳● Our main targets are rental properties (apartment complexes)● The number of private rental apartments was 16,840,000 (est.) in2018

Condominiums/
Social housing/OtherWe expect the number to increase by approx. 18,000,000 units by 2027

Total apartments

23.3m● The market service penetration rate (including other companies) isapprox. 20%. The number of serviced units is increasing by approx.
20% per year

Privateapartments
16.8m(est.)

Note: Estimated from March 2022 figures by the MM Research InstituteSource: Statistics Bureau, Ministry of Internal Affairs and Communications, 2018 Housing and Land Statistical Survey● We provided our services to 500,000 units by January 2023,
leaving plenty of room in the market for expansion
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Progress in expanding the Home-Use Market Field
We will develop new services and a new market with housing as a theme
Using IoT and renewable energy, we will build a framework so we can accommodate growing societal
needs and respond to future change

Newmarket

Existing (products, services)

New (products, services)

Market Development

Diversification

Wi-Fi services for detached houses, condominiums,
and serviced housing for seniors

Services for housing that respond to renewableenergy needs

Develop services to respond to all kinds ofresidential needs

Expansive growth through synergies between
the Telecoms and Renewable Energy Businesses

Market Penetration
ExistingmarketService Expansion

Total Wi-Fi services for rental apartments
Continued growth via market andpartnership expansion

Services that respond to smart home needs such as
renovation or IoT
Respond to new needs from existingcustomers and strengthen upselling

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Home-Use Business KPIs
We aim to raise our contracted units to over 800,000 by FY 6/27 via continued growth as we expand ourpartnerships, and via the development of new markets (detached housing, condominiums) and services(IoT and renewable energy)

Residence
Wi-Fi Contracted Units
レジデンスWi-Fi契約戸数（Units）

800.0

1.8x growth
544.8
451.3
371.2
279.9
207.0
151.5

FY 6/18
18/06期

FY 6/19
19/06期

FY 6/20
20/06期

FY 6/2121/06期

FY 6/22
22/06期

FY 6/23
23/06期

FY 6/27
27/06期

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４．Business-Use Business

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How the Business-Use Market will Develop

Our View
Wi-Fi needs continue to be strong in facilities/areas where people spend time.
The 5G spread has changed the environment, but as demand recovers in tandem with postCOVID movement, demand will expand for Wi-Fi as it is necessary DX infrastructure.
Demand is high for SME security measures and telecoms network overhauling.
Cyber-attacks have increased in recent years, and risk is high regardless of company size.
A strong network and associated security measures are urgently needed even amongst
SMEs.

Action Plan
① Expand partner companies 2.5x
② Expand product line-up③ Strengthen sales
We will focus on handling the Wi-Fi needs of our expanding partnercompanies, and the acquisition of new demand for our improved
security service line-up.
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Target Fields for the Business-Use BusinessBy growing our partnerships 2.5x (by FY 6/27), we aim to expand our target fields
We will also provide information systems to SMEs
Corporate Network Target Field: SMEs inneed of a stronger telecoms network

Free Wi-Fi Target Field: facilities/areas wherepeople spend time
Entertainment
Events/conventions

SME telecom networks
Information systems

Hospitals

Carehomes

Education

Expansion of Free
Wi-Fi Needs

CorporateNetwork+Inter-facility
communication

Publicoffices

Accommodation
Offices
Factories/warehouses

Cybersecurity

Tourism
Commerce

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Thorough Strengthening of Business-Use Fields
We will roll out Wi-Fi to all facilities to realize our Alternative Carrier vision
With our second start-up growth driver, we will respond to rising demand and further exploit our target fields

New
marketExisting (products, services)

New (products, services)

Market Development

Diversification

Services for large-scale facilities and wide
areas (smart cities etc.); DX demand
Expand target fields

New services, development within newmarkets

Market Penetration
Existingmarket

High-speed satellite communication services,
local 5G services, development overseas

Service/Product Expansion

Free Wi-Fi services for facilities, events, &transportation
Expansion of sales channels with ourpartnership strategy; growth by engaging withemergent needs

Demand for SME cyber-security measures,information systems, equipment customization
Uncover new demand

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Business-Use Business KPIs ①
We have set our flow sales as a KPI as they are an advance indicator of stock sales

Flow Sales
フリーWi-FiFree Wi-Fi

Corporate Network

Long Contract

Long Contract(paid in advance)(paid in advance)

Tourism, medical/carehomes,
public offices, commerce, offices

SMEs

Short Contract
Events, construction sites,conventions, conferences

Lead-time

SHORT

Lead-time

LONG

Lead-time

LONG

Stock Sales
Free Wi-Fi

Continuousrevenue

Corporate Network

Continuous revenue+Measures against
cyber-attacks

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Business-Use Business KPIs ②
With our second start-up growth driver, we will accelerate regrowth in existing markets andexpand our business to new markets, products and services: we aim for Y4bn flow sales

Flow/Stock Business-Use Sales（Million JPY)

7,500

4,000

1,115

1,373

1,712

1,354

1,830
1,244

3,500586658
FY 6/18
18/06期

FY 6/19
19/06期

FY 6/20
20/06期

FY 6/2121/06期

FY 6/22
22/06期
Stock Sales
ストック売上FY 6/23
23/06期
Flow Sales
フロー売上©Fibergate Inc. all rights reserved.

FY 6/27
27/06期

24

５．Non-Telecommunication Infrastructure
Business

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Development of the Non-Telecoms Infrastructure Business
Home-Use Business demand has levelled up via the Real Estate BusinessWe will provide sustainably high value-added renewable energy infrastructure toour Home-Use customer base

Provide lifestyle infrastructure:telecoms, renewable energy

Provides IoT systems/satellite communication Wi-Fi

Acquire new renovations totake demand to a new level

Develops, owns and buys real estate
Provides IoT systems and equipment for P2P residences

Developed at Fibergate

Supplies renewable energy

Buys and holds real estate

TM Asset26©Fibergate Inc. all rights reserved.

Roadmap of the Non-Telecoms Infrastructure Business (Energy)● Phase 2: Introductions to local governments are in progress● We have begun to develop high cost performance storage batteries in-house✔ Phase 1: July 2021～ Began substantiative experiments for storage battery/control system development
Jan 2022～ Began substantiative experiments at a model complex in Kawaguchi City, Saitama
Also considering joint experiments with collaborators/sponsors

Phase 2: 2023～

Began installation in local government offices, schools, large evacuation sites, and apartment complexes

etc.

Phase 3: 2025～

Begin virtual power plant service

Phase 4: 2030～

Target over 30,000 residential complexes with power generationequivalent to one nuclear power plant (approx. 1GW)

Toward the establishmentof an off-grid system
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６． Achieving Human CapitalManagement

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Diversity of Roles
Our strength is in our diversity of roles that allow us to fashion our company as a one-stop-shop

Hardwareengineers

Firmwareengineers

Projectmanagement

Constructionengineers

Sales staff

Partner
supportCustomer
supportAdministrative
staff

Network
engineers

Systemengineers

29©Fibergate Inc. all rights reserved.

Realizing Human Capital Management
Building a company culture that can respond to change● Personnel strategy as a management strategy●Support for self-actualization through work・ Selection and education of next generation leaders

・ Enhancement of in-house education and a system tosupport certification acquisition

・ In-house recruitment system
・ Amendments based on employee engagement
visualization● Response to diverse personnel and workstyles

・ Establishment and operation of an awards system
・ Active use of side-job system

Percentage of women inmanagement

Percentage of globalpersonnel(As of FY6/22)(As of FY6/22)27%

・ Promotion of diversity and inclusion

13%

・ Promotion of flexible workstyles (flextime, childcareleave)・ Introduction of an appropriate evaluation system for amultifunctional organization

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７．Shareholder Returns

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Shareholder Returns
Our FCF has increased as stock sales increase and Business-Use expands
We plan to raise the payout ratio from the previous FY as a result of earnings growth and FCF growth

Cashflows

Payout Ratio

キャッシュフローの推移
Operating Cashflows
営業キャッシュフロー

Investing Cashflows
投資キャッシュフロー

FCF（Million JPY)

2,295

11.0%

1,710
9.7%
8.0%

-546

-331

-2,256-2,626

FY 6/2122/06期
21/06期
FY 6/22FY 6/27
27/06期

8.6%

FY
FYFY
FY
20/06
21/06
22/06
23/06
6/20

期

6/21

期

6/22

期

6/23

期

FY
27/06
6/27

期

32
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Cautionary Note Regarding Forward-Looking Statements

The forward-looking statements such as earnings forecasts in these materials are basedon the information available to the Company at the time of preparation, and are notintended to guarantee forecast figures or measures.
Actual results may vary significantly according to domestic and overseas economic
environments, exchange rate fluctuations and other unpredictable factors. We will notify
the market in the event of a significant event through timely disclosure.

Contact
Headquarters – IR Department
0120-772-322
fgir@fibergate.co.jp
33©Fibergate Inc. all rights reserved.