For the First Half of the Fiscal YearEnding September 30, 2020

Results ofOperations
AirTrip Corp.
TSE 1st Section: 6191
June 12, 2020

Highlights●

The AirTrip travel business posted decreased net sales due to the impact of COVID-19.
However, the Group’s downside risk was reduced in other businesses.

During the first six months, handling volume was 61,500 million yen (95% YoY) and operating income(before impairment losses) was 380 million yen (215% YoY). However, impairment losses of 1,040 million●
yen were recorded, mainly due to changes of strategy in view of the COVID-19 crisis. Operating loss after
impairment losses was 660 million yen.
The break-even point was lowered chiefly through substantial cost reductions in face of COVID-19. Results● hit bottom in April-May and recent results show a tendency towards improvement driven by the domestic
travel business. An early return to profitability on monthly basis is expected through the busy summer period.

●

The Company plans to implement its “AirTrip 2020” growth strategy for the post-COVID-19 era and toactively take advantage of initiatives such as the Go To Travel campaign.

Copyright © Air Trip Corp. All Rights Reserved.

2

FY20.2Q Financial Summary

Copyright © Air Trip Corp. All Rights Reserved.

3

Changes in Handling Volume

Handling volume: 95%
Held firm despite the impact of the coronavirus
Handling volume (hundred million yen)

* Changed to pre-cancellation handling volume from FY19.4Q.
Copyright © Air Trip Corp. All Rights Reserved.

4

Changes in Net Sales

Net sales: 144%
Continued to increase despite the impact of the coronavirus
Consolidated net sales (million yen)

Copyright © Air Trip Corp. All Rights Reserved.

5

Changes in Operating Income

Despite the impact of COVID-19, operating income before the recording of
impairment losses increased YoY, reaching 380 million yen~ Operating loss after the recording of impairment losses was 660 million yen ~Consolidated operating income (million yen)

-1,044

Copyright © Air Trip Corp. All Rights Reserved.

6

Recording of Impairment Losses on Assets

Impairment losses were recorded, mainly reflecting changes ofstrategy in light of the impact of COVID-19~ Total impairment losses of 1,040 million yen were recorded on Group assets ~Impairment losses on some assets related to the travel business (Group total: 1,040 million yen)Labor-intensive
unprofitablebusiness

Deterioration in the profitability of certain labor-intensive products (tourbusiness, etc.) due to COVID-19 prompted the decision to downscale thebusiness and impairment losses on assets such as software and goodwill
were recorded, reflecting this policy.

Subsidiaries making
a loss due to
COVID-19

With respect to certain subsidiaries being considered for sale in the future
following deterioration in profitability due to COVID-19, impairment losses
were recorded based on recent income and outlook.

Copyright © Air Trip Corp. All Rights Reserved.

7

Statement of Income

Gross profit was mostly unchanged from the 1Q level and operating income
before impairment losses increased YoY. However, impairment losses, among
other factors, resulted in an operating loss after impairment losses.
(million yen)
FY19.2Q

Amount

FY20.2Q% to Sales

Amount(BeforeImpairment
Losses)% to Sales

Amount(AfterImpairment
Losses)% to Sales

Handling
Volume64,849ー

61,535

ー

61,535ーNet Sales

10,643100.0%

15,383100.0%

15,383100.0%

Gross Profit

5,908

55.5%

5,803

37.7%

5,803

37.7%

Operating
Income

178

1.7%

384

2.5%

-660

-4.2%

Profit

78

0.7%

303

1.9%

-741

-4.8%

Copyright © Air Trip Corp. All Rights Reserved.

8

Summary of Segment Operating Income (YoY Change)

The online travel business performed strongly compared to theprevious year
~ Operating income fell YoY in Investment Businesses ~(million yen)First 6 Months of
FY2019FY20.2Q(Beforeconsideration of
impairment losses)

234

1,268

+1,034-1,044

223

111

53

-57

0

53

237

-243

-480

0

-243

Adjustments

-405

-695

-289

0

-695

Consolidated Total

178

383

+205

-1,044-660

Operating Income

AirTrip Travel
Business
IT Offshore
Development
Business
Investment
Businesses

ChangeCopyright © Air Trip Corp. All Rights Reserved.

FY20.2Q(After considerationof impairment
losses)

FY20.2Q(Impairment
losses)9Balance Sheet

Equity was 9,600 million yen, remaining at an adequate level despite
the recording of the latest loss
(million yen)

FY19.4Q

FY20.2Q

ChangeCurrent Assets

20,14018,903-1,237

Cash and Deposits

8,997

6,067

-2,929Operational Investment
Securities

4,606

4,790

+183

Non-current Assets

11,075

15,917+4,841

Total Assets

31,21634,821+3,604

Liabilities

21,11425,213+4,098Interest-bearing Debts

12,631

12,974+343

Equity10,101

9,607

-494

Equity ratio

32.4%

26.5%

-5.9

Copyright © Air Trip Corp. All Rights Reserved.

10Measures against COVID-19 Coronavirus and Outcomes

Copyright © Air Trip Corp. All Rights Reserved.

11Outlook for Travel Demand Recovery Given Impact of COVID-19 Coronavirus

Demand is gradually recovering but
there is a long battle ahead until 100% recovery~ Demand will go through phases of recovery and contraction until a vaccine is developed,
triggering explosive growth in travel demand ~Development oftreatment/vaccine

1st wave
Number of cases ofinfection
Number of travellers(Travel demand)High

Number of
travellers

Decreasein numberof cases

2nd wave
Higher growth thanpre-coronavirus level

Increasein numberof cases100%
recovery

Peoplestay athome

Now
Improvementof demand

Low

Demandcontraction phase

Now

Demand recovery
phase

Demandcontraction phase

Demand recovery
phase

Demandcontraction phaseTime(1-1.5 years)
Copyright © Air Trip Corp. All Rights Reserved.

Phase of explosive
demand growth

Future12

Impact of COVID-19 on Recent Performance

Since March, COVID-19 has had dramatic and far-reaching impacts on businessperformance. Drop in demand has now bottomed out.
~ Earnings are expected to recover starting with the domestic travel domain ~1Q Financial Results
Announcement (Feb. 14)

Declaration of state of
emergency (Apr. 7)

Lifting of state of
emergency (May 25)

Go To Travel

January

February

March

April

May

June
July(Forecast) (Forecast)

Domestic travel
domain

◎

〇

〇→△

△→×

×

×→△?

△→◯?

Overseas travel
domainInvestment businessdomainOtherbusiness domains

〇→△

△→×

×

×

×

×？

×→△?

〇

〇→△

×

〇

〇

〇？

〇？

〇

〇～△

〇～△

〇～△

Copyright © Air Trip Corp. All Rights Reserved.

〇～△ 〇～△？ 〇～△？
13

Measures against COVID-19 Coronavirus and Outcomes: Drastic Reduction in Cash Outflow/Costs

Achieved Group-wide reduction in cash outflows/costs~ Controlled variable expenses and drastically reduced fixed expenses including
personnel expenses ~(hundred million yen)Control of variable expenses according to net sales
Variable expenses
Variable
expenses-85%

Total reductionof 61%

10.4-73%

Review of fixed expenses and reduction of cash outflow
Personnel expenses

Personnel
expenses-46%

Other fixed
expenses-6%

Implementation of cost control prioritizing generationof immediate cashflow for the time being

20.2

Advertising expenses
Drastically reduced advertising expenses to a level at which
profitability could be achieved

Advertising expenses

Costs
beforereduction

Sought to optimize costs through control of variable expenses inline with the decreased net sales of the travel business

Costs
after
reduction

4.1

Reduced personnel expenses of all Group employees (bothregular and irregular) through return of Directors’ bonuses (twofounders returned 100% and other Directors and Audit &Supervisory Board Members returned 40%) and utilization of
employment adjustment subsidy system

Other fixed expenses
Reduced cash outflows by reviewing rents, subcontract
expenses and other fixed expenses in association with shift
towards working from home

20.5
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14

(For Reference) Measures for Reducing Cash Outflow from September 2020

Plan to implement measures to reduce future cash outflows/costs~ Break-even point is expected to improve through the variabilization of operation costs
and further reduction of fixed expenses ~Optimization of costs
through variabilization of operation costs(hundred million yen)
10.0

Variable expenses

Variable
expenses

Fixed
expenses

Implement cost control when business is slack throughvariabilization of operation costs

4.0
8.0

0.3

Fixed
expenses-33%
Oct. 2020 vs.
Feb. 2020?

6.0

Advertising expenses
Continue to reduce ratio of advertising expenses to gross profit

Further reduction of personnel expenses and other fixed
expenses
Personnel expenses

4.0

6.4
2.0

3.8

4.3

Reduce total personnel expenses by 130 million yen per
month
Make cuts across-the-board including system development
expenses, directors’ compensation, regular employees,
temporary and part-time workers
Other fixed expenses

0.0

20.2

20.5

20.10~(Plan)
Copyright © Air Trip Corp. All Rights Reserved.

Reduce total other fixed expenses by 40 million yen per
month
Rent, etc.: Reduce by 10 million yen per month15

Monthly Changes in Gross Profit: Early Return to Profitability on a Monthly Basis Expected

Gross profit: Early return to profitability on a monthly basis expected~ Signs of expected return to profitability on a monthly basis, with confirmation of bottoming-out of impact
on domestic travel domain in addition to recording of stable monthly gross profit of around 200 million yen
in other business domains and cost reductions mentioned earlier ~(hundredmillion yen)

10.0

Other business domains

2.1

2.1
2.1

Overseas travel domain

1.9

Domestic travel domain

2.2

8.0

3.7
6.0

3.7
2.4

3.2

4.1
1.9
1.8

4.0

2.0

Early return to monthly
profitability expected

4.7

4.7

5.0

5.2

2.0

1.9

4.6
3.3

1.9
-0.1
0.8

0.0

19.10

19.11

19.12

20.1

20.2

20.3

20.4

Copyright © Air Trip Corp. All Rights Reserved.
* Figures may differ from figures in consolidated P/L statement as they are preliminary figures used for Group business management.

1.8
-0.1
0.7
20.5

1.6

20.6
(Est.)

2.5

20.7(Est.)

16

Progress Versus Forecasts During FY20.2Q

Forecasts will not be disclosed in view of impact of COVID-19(million yen)
FY20
Initial Plan

FY20.1Q
Result

FY20.2Q
BeforeImpairment
LossesRate of
Progress

FY20.2Q
After
Impairment
Losses2Q
Rate of
Progress

Handling
Volume180,000

36,046

20.0%

61,53561,535

34.1%

Net Sales

38,000

7,980

21.0%

15,383

15,383

40.4%

Operating
Income

2,000

800

40.0%

384

-660

ー

Profit

1,300

692

53.2%

303

-741

ー

Dividend

13 yen

ー

ー

ー

ー

ー

Copyright © Air Trip Corp. All Rights Reserved.

17

Evolution of “AirTrip 2020” Growth Strategy~ Strategy for overcoming upheaval caused by COVID-19 andpreparing for the post-coronavirus era ~Copyright © Air Trip Corp. All Rights Reserved.

18

Goals under “AirTrip 2020” Growth Strategy: Growth Strategy for Preparing for Post-coronavirus Era

Evolution into strategy for overcoming upheaval caused by COVID-19
and preparing for post-coronavirus era~ Take full advantage of the Go To Travel campaign and adapt to the ‘new normal’ for travel ~3

Utilize IT literacy and development capabilities to offer flexible
services for the ‘new normal’Utilize IT capabilities to develop services for the ‘new normal’ for travel
Aim to develop new services based on understanding of anticipated changes in styles of travel
and lifestyles in the post-coronavirus era

2Conduct large-scale promotions that take advantage ofrecognition of AirTrip
Implement marketing strategies that take advantage of recognition of AirTrip
Implement marketing strategies which take advantage of the all-time high recognition(45%) recorded in FY20.2Q and organic CV capability

1

Steadily capture domestic travel demand by taking advantage of
Go To Travel campaign
Strengthen collaboration with government agencies, local partners and airlines
Take full advantage of government measures to stimulate domestic travel demand
including the Go To Travel campaign, which pays half of travel expenses
Copyright © Air Trip Corp. All Rights Reserved.

19Evolution of “AirTrip 2020” Growth Strategy: Strengthening of AirTrip Travel Business

Improve service quality and increase business efficiency focusing on
domestic travel domain~ In addition to previous strategies, use technology to further automate operations ~Products
AirTrip
TravelBusiness

・Focus on UI/UX improvements as before and aim to drastically improve service quality
・Conduct various campaigns focusing on domestic travel domain in preparation for recovery of travel
demand・Continue aiming to increase recognition of AirTrip by implementing the optimum marketing

MarketingTechnology

measures・Reduce the ratio of advertising expenses to gross profit to efficiently attract customers

・Increase use of technology to further automate operations and achieve higher
business efficiency in call center functions

Steadily capture domestic travel demand, which is now starting to pick up, byimplementing “AirTrip 2020” growth strategy which anticipates post-coronavirus era
Copyright © Air Trip Corp. All Rights Reserved.

20

Evolution of “AirTrip 2020” Growth Strategy: Financial Strategy

Strategy of further increasing on-hand liquidity
while maintaining healthy financial position~ Maintain financial health through combination of significant cost-cutting measures described earlier andmeasures to boost cash balances ~Financial health (consolidated basis)

Financial strategy of improving financial healthand on-hand liquidity

Cash
Equity ratio

Cash

6,100

Restructuring ofGroup portfolio

Reduce Group’s relative
dependence on travel industry

Preparation for
IPO ofsubsidiaries

Continue to prepare for IPO
of three major subsidiaries

million yen* End of
FY20.2Q

Fundraising
FY19.2Q

Continue to consider diverse
fundraising methods, including theborrowing discussed later

FY20.2Q
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21

Evolution of “AirTrip 2020” Growth Strategy: Restructuring of AirTrip Group’s Business Portfolio

Consider sales of some subsidiaries in travel-related domains~ Restructure the Group’s business portfolio based profitability and growth potential ~Conduct M&A seizing the momentum for restructuring
within the travel sector

High

Make active investment aimed at continued
expansion in business scale

Domains for active investment

Domains considered for businesswithdrawal or business sale

Domains considered for businessrevivalGrowth potential

Domains with potential for growth inprofitability

Low
Low

High

Profitability

Consider sale (wind down) of some businesses
in travel-related domains

Conduct M&A for growth of next businesses
after travel business

Copyright © Air Trip Corp. All Rights Reserved.

22

Evolution of “AirTrip 2020” Growth Strategy: Progress of Preparations for Listing of Major Group Subsidiaries

Made steady progress with preparations for listing of major Group subsidiaries~ All three companies performed well and further increased pace of growth in preparation for listing ~Life innovation businessJapan inbound travel businessIT offshore development businessNet sales in FY20.2Q

Net sales in FY20.2Q

Net sales in FY20.2Q

660 million yen

720 million yen

490 million yen

Overview of most recent reporting period

Overview of most recent reporting period

Overview of most recent reporting periodBusiness of operating one of industry’s
largest e-mail magazine distribution platforms
performed solidly and the impact of COVID19 was insignificant.
Plan to leverage contents and customer baseto accelerate growth of media advertisingbusiness.

Acquired Global Mobile, Inc. in April 2020 and
accelerated growth of Wi-Fi business.
Also entered ticket-type concierge businessthrough acquisition of “Tabiko” business, withaim of establishing new earnings base.

Posted substantial increase in net sales
thanks to the provision of hybrid development
services that pursue high quality and cost
performance.
Voted highest ranking Japanese company inVietnam Best IT Companies for second
consecutive year.

Copyright © Air Trip Corp. All Rights Reserved.

23

Evolution of “AirTrip 2020” Growth Strategy: Conclusion of Commitment Line Agreement with Mizuho Bank

Concluded commitment line agreement with Mizuho Bank
~ Secured working capital facility to guard
against the far-reaching impacts of COVID-19 ~Conclusion ofcommitment line
agreement
Mizuho Bank

Effective date/Expiry date: From May 29, 2020 to Sep. 30, 2020
Agreed facility: 1.5 billion yen
Use of funds: Short-term working capital

Copyright © Air Trip Corp. All Rights Reserved.

24Summary●

The AirTrip travel business posted decreased net sales due to the impact of COVID-19.
However, the Group’s downside risk was reduced in other businesses.

During the first six months, handling volume was 61,500 million yen (95% YoY) and operating income(before impairment losses) was 380 million yen (215% YoY). However, impairment losses of 1,040 million●
yen were recorded, mainly due to changes of strategy in view of the COVID-19 crisis. Operating loss after
impairment losses was 660 million yen.
The break-even point was lowered chiefly through substantial cost reductions in face of COVID-19. Results● hit bottom in April-May and recent results show a tendency towards improvement driven by the domestic
travel business. An early return to profitability on monthly basis is expected through the busy summer period.

●

The Company plans to implement its “AirTrip 2020” growth strategy for the post-COVID-19 era and toactively take advantage of initiatives such as the Go To Travel campaign.

Copyright © Air Trip Corp. All Rights Reserved.

25

FY20.2Q Business Progress

Copyright © Air Trip Corp. All Rights Reserved.

26

Marketing: Airing of TV Commercials

Began airing TV commercials with new creative content from January 2020!
~ Aired three different commercials nationally in record volumes ~TV Commercial for Airline Ticket Brand New Spring SaleTV Commercial for AirTrip Plus Brand New Spring Sale

Copyright © Air Trip Corp. All Rights Reserved.

TV Commercial for Reward Points

27Marketing: Organization of Various Events in Connection with Airing of TV Commercials

Held talk show to commemorate completion of new TV commercials!
~ Increased recognition through a high level of media exposure
including TV and WEB news ~Copyright © Air Trip Corp. All Rights Reserved.

28

Marketing: Effect of TV Commercials

Recorded substantial growth in search volume
after airing of TV commercials!
~ Achieved reduction in cost of customer acquisition
through increase in inflow through AirTrip keyword ~<SEM (Brand Name) UU Growth>

Before commercials<Organic UU Growth>

UU

UU

150%

130%

* Comparedwith before
commercials* Comparedwith before
commercials

After commercials

Before commercials After commercials
Copyright © Air Trip Corp. All Rights Reserved.

29

Marketing: Effect of Branding (1)Improvement in recognition of “AirTrip” bolstered search volume~ Search volume was far higher than that of competitors
both on a full year basis and during the COVID-19 outbreak ~AirTrip

Competitors

Sharp increase
after airing ofcommercials

Search volume during
summer high season

March 2020

May 2019

Copyright © Air Trip Corp. All Rights Reserved.

30

Marketing: Effect of Branding (2)Benefited from inflow through “AirTrip” keyword
despite upheaval caused by COVID-19~ Inflow through “AirTrip” keywork in January was far higher than the year-ago level andwas mostly unchanged year on year despite the impact of COVID-19 ~Same perioda year ago

Most recent
3 months

Mostly unchanged year on year
despite impact of COVID-19

January 2020

March 2020

Copyright © Air Trip Corp. All Rights Reserved.

31

Domestic Airline Tickets: Substantial Increase in Share of Bookings Via the App

Share of bookings via the app increased substantiallythrough offer of up to 25% reward points~ Compared with FY19.2Q, share of booking via the app reached 156%
and app gross margin reached 112% ~Gross margin
Share ofbookings
via theapp

Launched a 20% reward points campaign for bookings madevia the app‼

GrossmarginThe launch of a 20% reward points campaign for customers
booking via the app helped increase handling volume and CVR

112%* Compared toFY19.2Q

Completely revamped AirTrip app UI

Share ofbookings
via the app

156%* Compared toFY19.2Q

FY19.2Q

Reflection of customer feedback received via surveys, etc.
in UI/UX helped improve handling volume and CVR

Offered 5% reward points for all cashless payments
Offer of up to 25% reward points (20% reward points + 5%
reward points for cashless payments) helped improve shareof bookings via the app

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

32

Domestic AirTrip Plus: UU Growth due to New Spring Campaign

Distributed coupons offering up to 10,000 yen off
in new spring campaign~ Number of monthly unique users increased 110% compared with FY20.1Q ~UU

110%* Compared toFY20.1Q

FY20.1Q

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

33

Domestic Hotels: Substantial Improvement in Top Priority KPIs

All top priority KPIs for AirTrip domestic hotel operations
showed substantial improvement~ Achieved substantial growth compared with FY19.2Q, with handling volume reaching 310%,
CVR reaching 260% and number of unique users reaching 170% ~<Top priority KPIs for domestic hotel operations><Number of unique users in domestic hotel operations>Handling volume
CVR

CVR

260%
* Compared toFY19.2Q

FY19.2Q

UU in
FY20.2Q
Handling
volume170%

310%* Compared toFY19.2Q

UU in
FY19.2Q* Compared toFY19.2Q

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

34

Domestic Hotels: Business Strategies for Post-coronavirus Era

Provide services which meet accommodation needsin post-coronavirus era~ Capture accommodation demand by thoroughly implementing COVID-19 countermeasuresand taking advantage of Go To Travel campaign ~Formulate COVID-19 guidelines foraccommodation facilities
Formulate Company COVID-19 guidelines
for accommodation facilities and offer
accommodation facilities which customers
can use safely and with peace of mind

Strengthen collaboration withaccommodation facilities which comply
with COVID-19 countermeasures

Design a site which meets new
accommodation needs in a postcoronavirus era

Combine planning related to government’s
Go To Travel campaign for stimulating
domestic travel demand with own
promotions

Strengthen collaboration withaccommodation facilities which implement
COVID-19 countermeasures in accordancewith the Company guidelines and consider
displaying labels recognizing compliance

Redesign site to facilitate searches basedon the assumption of new accommodationneeds in a post-coronavirus era

Steadily capture accommodation demandby combining Go To travel campaign
planning with promotions for summer travel

Strongercollaboration

Source: Government’s website
Copyright © Air Trip Corp. All Rights Reserved.

35

Overseas Airline Tickets and Hotels: Improvement of ROI through increased advertising efficiency

Minimized impact of COVID-19 through advertisingin light of market conditions~ ROI was 140% compared with FY19.2Q due to increased advertising efficiency
amid upheaval caused by COVID-19 ~Thoroughly reviewed keywords and intensity for ad placement
ROI

ROI

Conducted thoroughgoing review of ad placement based on large
volumes of data including searches and CVR and fine tuned adplacement on a daily basis

140%* Compared toFY19.2Q

Optimized pricing in view of marketing conditions
Carefully examined appropriate pricing based on daily user trends
and optimized pricing according to conditions

Carefully examined scope for cost reductions and reduced somefixed expenses

FY19.2Q

FY20.2Q

Carefully examined scope for cost reductions through business
inventory and reduced some fixed expenses which made no business
sense

Copyright © Air Trip Corp. All Rights Reserved.

36

Overseas AirTrip Plus: UU Growth due to New Spring Campaign

Stepped up attraction of customers through new spring campaign
linked with TV commercials~ Number of unique users grew, reaching 120% compared with FY19.2Q ~
UU

120%

* Compared toFY19.2Q

FY19.2Q

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

37

AirTrip BTM: Number of Contracted Companies

Number of contracted companies topped 3,500,
reflecting steady growth in BTM clients(Number of contracted companies)
Increase due to acquisition ofDeNA Travel

3,516

Increase due to acquisition ofTokyo Masters

Copyright © Air Trip Corp. All Rights Reserved.

38

IT Offshore Development Business: Increase in Number of New Orders

Number of new orders for development projects increased steadily

Number of new orders11
and 9 other companies
Copyright © Air Trip Corp. All Rights Reserved.

39

IT Offshore Development Business: Campaign to Beat COVID-19

EASBC* ran campaign encouraging businesses not to be beaten by COVID-19 andoffering discounts on contracts signed within the campaign period~ Ran exceptional campaign offering 10% off throughout the year on contracts signed within the campaign period ~* EVOLABLE ASIA SOLUTION & BUSINESS CONSULTANCY COMPANY LIMITED
Copyright © Air Trip Corp. All Rights Reserved.

40

Investment Businesses: Results of Investments

Strengthening of investment development:
62 companies; total investment amount: 2.1 billion yen* As of May 2020･･･etcCopyright © Air Trip Corp. All Rights Reserved.

41

Core Subsidiaries: Inbound Platform Corp.

Leveraged stable operating base to increase net sales andadvance into new domains~Handling volume was 128% compared to FY19.2Q~

1,000(million yen)Handling
volumeWelcomed leading WiFi rental company Global Mobile, Inc. to
the Group

128%
800

600

* Compared toFY19.2Q

Acquired leading Japanese WiFi rental company Global Mobile, Inc.
in April and further strengthened earnings base

734

572

Entered chat-based concierge businessEntered concierge business through acquisition of “Tabiko”
business from FAST JAPAN, Inc.

400

Significantly expanded camping car business

200

Achieved gains in net sales and income on the back of firm
camping car demand0

FY19.2Q

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

42

Core Subsidiaires: HYBRID TECNOLOGIES

No. 1 in Japanese offshore development
in Southeast Asia through hybrid development~Net sales were 172% compared to FY19.2Q~
500

Net sales

494 (million yen)

172%
400

300

Substantial growth in net sales and number of new orders
received* Compared toFY19.2Q

Provision of a hybrid development service pursuing both highquality and cost performance contributed to growth in net sales
and the number of new orders received.

287

200

Voted highest ranking Japanese company in Vietnam Best IT
Company for second consecutive year
Recognized by Vietnamese engineers both inside and outside of
the Company as excellent company in terms of salary, training,
management, corporate culture and office environment

1000FY19.2Q

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

43

Hikawa Co., Ltd.

Established business base by combining tea manufacturingexpertise with AirTrip assets~ Further strengthened life innovation business ~Achieved cost reductions by strengthening operating baseAchieved higher income through realization of organizational reform anddrastic cost reductions

Prepared for growth through operation of EC sites and overseas
expansion, etc.

Improved profitability through expansion of e-commerce with individual
consumers and expansion of sales channels focusing on Asia

Prepared for development of new businesses
Strengthened business base through the development of new
businesses combining Hikawa processing technology with AirTrip
knowhow
Copyright © Air Trip Corp. All Rights Reserved.

44

AirTrip Ticket: Expansion of Business Base

Pursued expansion in business base by strengthening
collaboration with AirTrip corporate business
Expanded business with AirTrip corporate customers
Expanded customer base and improved profit margins by
capturing customers in Kanto region

Started sales of vintage brand items
Started handling vintage brand items at two stores aimed atincreasing earnings generated from existing customers andcapturing new customers

Tightened cost control
Tightened cost control, including reviewing opening hours
according to store profitability

Copyright © Air Trip Corp. All Rights Reserved.

45

AirTrip Stay: Substantial Increase in Gross Profit

Gross profit increased sharply due to increase in number ofproperties managed and strengthening of operating structure~ Gross profit reached 314% compared with FY19.2Q ~Grossmargin314%

Gross profit increased sharply due to steady increase in number ofproperties managed* Compared toFY19.2Q

Net sales increased steadily, reflecting the large number of properties
managed, especially for large corporations. Gross profit also rose
sharply alongside sales growth.

Achieved efficient operating structure through tighter operations
Leverage knowledge within company to establish own revenue
management technique. Strengthened operating structure and achieved
operations with higher productivity.

FY19.2Q

FY20.2Q
Copyright © Air Trip Corp. All Rights Reserved.

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・These materials contain forward-looking statements related to industry trends and the Company’s business development based on the Company’s current expectations, estimates, and forecasts.
・ A variety of risks and uncertainties are inherent in the assertions made in these forward-looking statements. Known and unknown risks, uncertainties, and other factors may result in differencesfrom the statements included in assertions related to forward-looking statements.
・ The Company’s actual future business and operating performance may differ from the forward-looking statements contained in these materials.
・ The assertions related to forward-looking statements made in these materials are based on the best information currently available to the Company and will not update or revise any forward-

looking statements to reflect future events or conditions.

AirTrip Corp.
19th Fl. Atago Green Hills Mori Tower, 2-5-1 Atago, Minato-ku, Tokyo 105-6219
Phone. +81-3-3431-6191
http://www.evolableasia.com