First Quarter of the Fiscal YearEnding September 30, 2019

Results ofOperations
Evolable Asia Corp.
TSE 1st Section: 6191
February 14, 2019

Highlights

Handling volume and net sales increased sharply, up
259% and 290% YoY, respectively.
Investment in AirTrip promotions as planned produced
good results.
Aiming for YoY income growth on full-year basis
alongside investment drive

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1

Financial Summary

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2

Changes in Handling Volume

Handling volume: 259% Increased sharplyHandling volume(hundred million yen)

1,000

831
800
600

474400

292

400

263

261
157

200

112

72
0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

18.2Q

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18.3Q

18.4Q

19.1Q
3

Changes in Net Sales

Net Sales: 291% Increased sharply
Consolidated net sales (million yen)

14,00012,447

12,00010,000

8,000

5,533

6,000

4,735

3,968

4,000
2,000

6,340
3,458

2,498

1,624

1,202

0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

18.2Q

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18.3Q

18.4Q

19.1Q
4

Changes in Operating Income

Bolstered investment in promotions as planned
Consolidated operating income (million yen)
1,400

1,210

Income from existing
businesses

1,200

1,008

1,000

1,037
808

800

581

600
400
200

Strategicinvestment
265
510

385
198

134

0(200)

(245)

(400)

17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q
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5

Statement of Income

Sharp increase in sales thanks to an aggressive investment topromote AirTrip(million yen)

FY18 1Q
AmountFY19 1Q% to Sales

Amount% to Sales

YoY Change

Handling
Volume11,281Net Sales

1,624

100.0%

4,735

100.0%

291.5

Gross Profit

1,133

69.7%

2,746

57.9

242.3%

Operating
Income

129

7.9%

(245)

Profit

67

4.1%

(264)

29,258

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259.3

6

Balance Sheet

Funds for investment raised(million yen)
End of FY2018
Current Assets

YoY Change

19.1Q

15,202

15,927+725

Cash and Deposits

5,320

6,128+808

Operational investment
securities

3,889

4,170+281

Non-current Assets

9,276

9,749+473Total Assets

24,92925,676+747

Liabilities

19,371

19,703+332

Interest-bearing Debts

10,811

11,823+1,012

5,557

5,973+416

5,176

5,549+373

20.7%

21.6%

+0.9

Net Assets

Equity attributable to equity
holders of the parent
Ratio of equity attributable
to equity holders of theparent

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7

Topics

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8

AirTrip: New TVCM

2nd TVCM campaign starring Robert Akiyama
Alongside launch of poster ad campaign on all JR lines in Tokyo Metropolitan Area

New TVCM

Poster ads on JR trains in Tokyo
Metropolitan Area
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9

FUJI BOXING: The Triple

Advertising all around ring at FUJI BOXING

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10

AirTrip: Effect of Branding (1)Search trend ranking rose as a result of large-scale promotion

Launch ofnew CM

AirTrip
websiteFeb 2018

Jan 2019
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11

AirTrip: Effect of Branding (2)Shift from customer acquisition through web advertising tocustomer acquisition through brand recognition
YoY percentage increase in volume of transactions with individual customers
YoY percentage increase in WEB advertising expenses

500%

400%

Increase in Hnadlingvolume due to brandrecognition

300%
200%
100%0%

OctoberNovember
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December
12

AirTrip: Effect of Branding (3)AirTrip
4.3 times higher than the year-ago level
3,750
Last 28 days
Year-ago level
2,500

1,250

1/13

2/9
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13

Online Travel Agency Business: Agreement with Airline

Agreed to enter OTA agreement with Cebu Pacific Air

APIpartnership

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14Online Travel Agency Business: Number of BTM Clients

Number of BTM clients rose steadily, to around 3,000(No. of corporate customers)

2,997
Increase due toacquisition of DeNATravel
Increase due toacquisition of Tokyo
Masters
1,097
544

572

619

667

722

1,152 1,207

2,815

2,906

1,273

782

16.1Q 16.2Q 16.3Q 16.4Q 17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q

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15

BTM Partnerships

Collaboration with American Express and Rakus

Solves all problems
related tobusiness trip
arrangements andreimbursement ofexpenses

Consolidation of all kinds ofexpense payments in a
corporate card

Cloud-based system with no
introduction or operating
expensesCentral management of all
expense-related processing
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16

IT Offshore Development Business: Business Progress

Steady progress, including the group companies
About 1,000persons

2014

2015

2016

New orders received: 7 companies

2017

2018

Number of engineers: about 1,000 persons
Stable growth due to theneeds for engineers in theupstream process ofEvolable
which continued from theprevious fiscal year
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and 4 other companies

17Investment Businesses: Results of Investments

Strengthening of investment development:
52 companies; total investment amount: 2.0 billion yen* As of January 2019etc

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18

Investment Businesses: Investment Performance

PIALA shares listed in December, and value of a number ofcompanies increased

Listing

Increase in value+ 1 company
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19

Corporate GovernanceCorporate governance was strengthened through the election ofnew officers

13

One new
Representative
DirectorThreenew Directors

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Four newExecutiveOfficers
20Future Growth Strategies

Bolster investment to promote AirTrip.
Achieve consolidated transaction volume of more than150 billion yen.
Ensure year-on-year income growth alongside
investment drive.

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21

Earnings Forecasts and Expected Dividends

Achieve high sales growth through active investment andsecure profit growth while making investments(million yen)
FY17

FY18

FY19
ForecastHandling
Volume40,001

83,166

Not
disclosed

Net Sales

5,533

12,447

Not
disclosed

Operating
Income

1,088

1,210

Not
disclosed

Profit

708

915

Not
disclosed

Dividend

7 yen

10 yenNot
disclosed

Supplement

Achieve high sales growththrough active investment

Secure profit growth while
making investment
Keep the dividend payout
ratio at the 20% level

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22

Vision of Handling Volume

Handling volume of more than 150 billion yen:
substantial increase
More than 150
billion yen

1,600

Handling volume
1,400 (hundred million yen)
1,200

1,000

831800600

403400200051741

FY07

FY08

FY0987100107

FY10

FY11

FY12140153

FY13

FY14206

FY15276

FY16

FY17

FY18

FY19
Forecast

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23

Vision of Investment and Profit

Continue strategic investment in FY2019:
recover investment from FY2020 Consolidated operating
income (million yen)

8,000
Strategic investment
Existing business

Achieve profit growth
while making
investment

6,000

4,0001,008

2,000

99

1,210

312

0-2,000

Control investment
and achieve highprofit growth-4,000

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Forecast

Forecast

Forecast

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24

•These materials contain forwardexpectations, 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 differences from the statements included in assertions related to forward-looking statements.

••-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 orrevise any forward-looking statements to reflect future events or conditions.
Evolable Asia 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