The Fourth Quarter of the Fiscal
Year Ending September 30, 2020

Results ofOperations
AirTrip Corp.
TSE 1st Section: 6191
November 13, 2020

“RESTART”~ The beginning of the second stage
after being listed ~~ AirTrip Group will restart ~FY2021 ”Restart” ~The beginning of the second stage after being listed~

Four years and a half after being listed is known as “The firststage” and "Restart” FY2021 as “The beginning of the second stage”~Become better with an impairment loss of approximately 7.4 billion yen
and continue to aim for "AirTrip 5000“~※ Announced in FY20 Results of operations materials (Nov 14th , 2019)

FY16

FY17

FY18

FY19

FY20

FY21～

(After Mar 31st , 2016)

The first stage
After being listed (March 31st, 2016) ~ FY20 (Sep 30th, 2020)

Organize the assets related to the first stage
and make it better”Restart” the beginning of thesecond stage~Restart~
Continue to aim for "AirTrip 5000"

Copyright © Air Trip Corp. All Rights Reserved.

2

FY2021 ”Restart” ~ Outlook and Effort for this term ~1. Entering FY2021 and achieving profitability on monthly basis(consolidated) from October

2. Recovering revenue of AirTrip Travel Business❏ Results of measures up to the previous term
❏ Results of cost reduction, extremely low fixed cost compared to other companies in the same industry
as well as other similar companies❏ Unprecedented tailwind by GoTo Travel

3. Continuing steady growth in 4 existing business domain excepting thetravel domain❏ IT offshore development business❏ Overseas travel business/Wi-Fi business❏ Life innovation business (MAGMAG, etc.)❏ Investment business4. Creating new business domain by starting up healthcare business
Copyright © Air Trip Corp. All Rights Reserved.

3

FY2021 ”Restart” ~ Image of the second stage after being listed ~"Restart“ FY2021 as “The beginning of the second stage"
Creating new business fields by starting up
healthcare businessContinuing steady growth in 4 existing businessfields excepting the travel field

Healthcare
business

Recovering revenue of AirTrip Travel BusinessIT offshoredevelopment business
Foreign travel business/
Wi-Fi businessLife innovation business
Investment
business“Restart”
the beginning of thesecond stage after
being listed~Restart~

AirTrip Travel
Business

FY2020

FY2021
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4

FY2021 ”Restart” ~ From the side of PL/BS~“Restart” and be a profitable month in October from FY2021~ Consider COVID-19 as an “Opportunity” and make it better with animpairment loss of approximately 7.4 billion yen in FY2021~
FY20.1Q

FY20.2Q

Consolidated operating income(before impairment loss)

Consolidated net
operating loss

FY20.3Q

FY20.4Q

Impairment
loss

FY21

(hundred million yen)

“Restart”
by improvement of
PL / BS~Restart~

8

△4

△5

△6

3

△10
① Recovering revenue of
AirTrip Travel business② Reducing large-scale cost
③ Recording impairment loss
*Number of each quarter (3 months)*Aggregated with discontinued projects△63

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Significant
recovery from theprevious term

5

FY2021 “Restart” Summary

Consolidated financial results for the full year of FY2020 are handling volume of 74.7 billion yen, net sales of 23.2
billion yen and operating income of △780 million yen before impairment loss.
Although income of AirTrip travel business have temporarily decreased due to COVID-19, it has been likely to● return from June and currently recovers significantly focusing on domestic travel demand.
Minimizing downside risk, especially in the life innovation business and investment business, such as the largescale cost reduction due to COVID-19 and the listing of MAGMAG subsidiary, investee company Cyber Security
Cloud and the listing of investee company Headwaters Co.,Ltd .
Recording impairment loss of 7.46 billion yen in the cumulative fourth quarter of the fiscal year during COVID-19● Although there was a temporary loss in equity, it's expected to recover in FY2021.
In addition, there is almost no risk of impairment in the future by the efficiency of the balance sheet has improved.
Entering FY2021 with the tailwind of GoTo Travel, we have already achieved profitability on monthly (consolidated
basis) from October.
● Compared to other companies in the same industry as well as other similar companies, because relatively fixed
cost is overwhelmingly low, moreover, the break-even point has been reduced due to the large-scale cost reduction
mentioned above, the profit is assumed to recover and expand.
Finishing the first stage of four years and a half after being listed and beginning "Restart“ the second stage
Releasing consolidated operating income 300 million yen as an earnings forecast for the full year of FY2021.
● In addition to recovery revenue of the AirTrip travel business, While steady growth continues in 4 existing businessfields excepting the travel field, the AirTrip Group will restart based on creating new business fields by starting up
healthcare business.
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6

FY20.4Q Financial Summary

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7

Changes in Handling Volume

Handling volume: 51％
4Q (July-September) is recovering
compared to 3Q (April-June) Handling volume(hundred million yen)

* Changed to pre-cancellation handling volume from FY19.4Q* Aggregated with discontinued projects in 20.4Q
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8

Changes in Net Sales

Net sales: 95％
4Q (July-September) is recovering
compared to 3Q (April-June)
Consolidated Net Sales(million yen)

* Aggregated with discontinued projects in 20.4Q
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9

Changes in Operating Income

Due to COVID-19, operating loss of △780 million yen
before recording impairment loss

~Operating loss of △8.25 billion yen after recording impairment loss~
Consolidated operating profit(million yen)

△7,466* Aggregated with discontinued projects in 20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

10

Record of Impairment Loss on Assets

Reflecting the decrease in demand and recording
impairment loss due to the impact of COVID-19～ Recording 7.46 billion yen of impairment loss in entire Group～
Impairment loss on some assets related to travel business (Group total: 7.46 billion yen)
The impact of demanddecrease due to
COVID-19(4Q)

Rreflecting decrease in inbound/outbound demand or loss of a part ofdomestic demand and recording impairment loss

Labor intensive
unprofitable business(2Q)

Decision to reduce some labor-intensive products (overseas tour arears,etc.) that profitability is getting worse due to COVID-19. That policy reflects
on the impairment loss recorded on software or goodwill.

Unprofitablesubsidiaries caused by
COVID-19(2Q)

As regards some subsidiaries are started to being considered for salebecause profitability’s getting worse due to COVID-19, impairment loss isrecorded based on current income and prospection.
Copyright © Air Trip Corp. All Rights Reserved.

11

Statement of Income

Decrease in handling volume compared to previous year
On the other hand, based on contribution margin that excludes travelling、
Net sales is almost the same
～Deficit before impairment is controlled at about 700 million yen～
FY19.4Q
Amount（million yen）

FY20.4Q% to Sales

Amount（Beforeimpairment
loss）% to Sales

Amount（Afterimpairment
loss）% to Sales

Handling
volume146,000ー

74,700ー

74,700ー

Net Sales

24,306100.0%

23,206100.0%

23,206100.0%

Gross Profit

11,285

46.4％

7,861

33.9％

7,861

33.9％

Operating
Income

680

2.8％

△786

ー

△8,252ーProfit

733

3.0%

△914

ー

△8,380ー

Copyright © Air Trip Corp. All Rights Reserved.

※Discontinued operations included in 20.4Q 12

Balance Sheet

Although there was a temporary loss in equity, it's expected to recover
the next period by recording impairment loss
（million yen）

FY19.4Q

FY20.4Q

YoY Change

Current Assets

20,14015,073△5,066

Cash and Deposits

8,997

7,042

△1,954

Operational Investment
Securities

4,606

4,411

△195

Non-current Assets

11,112

7,920△3,191

Total Assets

31,25322,994△8,258

Liabilities

21,153

20,144△1,009Interest-bearing Debts

12,631

11,061△1,570Equity10,0992,849△7,249Equity Ratio

32.3%

12.4%

△19.9%

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13

Strategies and Results against the impact of
COVID-19

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14

Travel Demand Recovery’s Prospect in the future based on the impact of COVID-19

Demand is recovering by GoTo Travel but it still a long term battle ahead to 100%
recovery~ Demand will repeat to reduce then recover until a boost after the development of vaccine ~The number of cases ofinfection
The number of travellers(Travel Demand)

1st WaveHigh

Numberof people

Decrease in
number ofcases

Development of vaccine andtreatment

Boost in travel demandthan ever before

Now

2nd Wave

3rd Wave

Increase in
number ofcases

Compared tothe previous
year

100%

Refrainfrom goingout

recovery

Increase indemandLow

Demand Decrease
Phase

Now

Demand Recovery
Phase

Demand Decrease
Phase

Demand Recovery
Phase

Time
(1～1.5Year)
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Demand Decrease
PeriodDemand Explosion
Phase

Future15

Impact of COVID-19 on Recent Performance

Continuing strongly domestic travel domain by GoTo Travel
and Residents of Tokyo discount effect~The investment business domain and other business domain are extremely
good by the listing of our MAGMAG subsidiary and investee’s headwaters~
Launch of GoTo
Travel (Jul 22)

Domestic travel
domainOverseas travel
domainInvestment businessdomainOther businessdomain3Q results
announcement (Aug14)

MAGMAG being
listed (Sep 24)

Launch of Residents ofTokyo discount(Oct 23)

4Q results
announcement(Nov13)

Nov
Dec
Jan~
(Forecast) (Forecast) (Forecast)

Jul

Aug

Sep

Oct

◯

◯

◯

◎

◎

◎

◎

×

×

×

×

×?

×?

×?

◯

◯

◯

◎

◯?

◯?

◯?

△～◯

△～◯

◎

◯

◯?

◯?

◯?

Copyright © Air Trip Corp. All Rights Reserved.

16

Measures and results for the impact of COVID-19 ~ Continue to reduce cash out cost~

Continue to reduce cash out cost in the entire Group~Optimize variable cost and control fixed costaccording to GoTo travel demand~(hundred million yen)

Variable cost control according to net sales
Variable
cost
△63％

Costs
beforereduction

Advertising
Expense△73％

Total reduction
57％

Review fixed costs and control cash out

Labor
Cost
△42％

Labor Cost
Other fixed
cost
△50％

10.4

Cost after
reduction

Implement cost control with the top
priority on securing cash

20.2

Variable cost Advertising Expense
Aim to optimize costs by implementing variable
cost control and advertising expense according to
the recovery situation of Airtrip travel business by
GoTo travel demand.

4.4

Reduce labor cost for all Group employees(official employees, unofficial employees, engineers,etc.) by reducing officer compensation (reduce 25% of
2 founders and directors/inspectors) and utilizing theemployment adjustment allowance system

Other fixed cost
Continue to reduce office rental by shifting toworking from home and review other fixed costsuch as outsourcing cost

20.9
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17

FY2021 Cash out cost reduction plan

Optimize variable cost and advertising expense
while continuing to reduce fixed cost
~Control SG&A expense monthly about 450~600 million yen in FY2021 by optimizing
variable cost and advertising expense during the GoTo Travel period~
Optimize variable costand advertising expense(hundred million yen)
10.0
Variable
cost
Fixed 8.0
cost

Variable cost
4.0

1.0?

Implement cost control according to the operation
volume during the GoTo Travel period

Advertising Expense
1.7

1.7

1.9

6.0

Continue to optimize the ratio of advertisingexpenses ratio in gross profit

Control labor cost and review other fixed cost
Labor cost

4.0

0.5?

Reduce about 120 mill yen/month in total labor cost
Continue to reduce partial officer compensation
Reduce employee labor cost by utilizing theemployment adjustment allowance system

2.7

2.7

Other fixed cost

20.9

20.10~

6.4
2.0

2.0
0.0

20.2

20.7

(Planning)
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Optimize system development organization
Reduce office rental by shifting to working from home
Continue to review other fixed cost (outsourcing cost,
etc.)
18

Monthly changes in gross profit ~ Forecast of monthly profit form FY2021~

Forecast of monthly profit in gross profit form FY2021～Early implement revenue in life innovation field (healthcare business) and recover
revenue in domestic travel domain by Results of measures up to the previous term~(hundred million yen)

New business (Life innovation business)

2.1

10.0

2.1

2.1

1.9

Other business

8.0

Domestic travel

3.7
6.0

Expected to achievemonthly profit from FY2021

Foreign travel

2.2

3.7

2.4

3.2

0.6

4.1

1.7

1.9
0.5
1.6

1.8

4.0

1.7
2.0

4.7

4.7

5.0

5.2

1.5

1.6

1.5

0.1

1.9

1.8

19.12

20.1

20.2

• It is preliminary figures for group business management,so there is a deviation with the consolidated PL numerical value

0.1

△0.1

△0.1

0.8

0.7

20.4

20.5

2.8

2.5

2.5

2.6

20.6

20.7

20.8

20.9

3.6

3.8

20.10
(Plannedvalue)

20.11(Plannedvalue)

0.0
19.11

0.1

5.5

4.6
3.3

19.10

0.5
1.5

20.3

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20.12(Plannedvalue)
19

Evolution of “AirTrip 2020” Growth Strategy~ "Restart" ~ New growth strategy for after COVID-19~ "AirTrip Group will restart" ~Copyright © Air Trip Corp. All Rights Reserved.

20

Aim for "AirTrip 2021“ growth strategy ~ ”Restart” ~ New growth strategy for after COVID-19 ~“Restart” ~ New growth strategy after COVID-19~In addition to the recovery revenue of the AirTrip travel business by tailwind of GoTo Travel,
Aim for the growth of the entire groupby continuing the growth of existing business and creating new business ~3

Creating new business domain by starting up
healthcare business

Create new business of growth field after COVID-19
Accurately capture the business environment that is expected
to change after coronavirus, and create new businesses ingrowth field that the strengths of the Group can be utilized2

Continuing steady growth in 4 existing businessdomain excepting the travel domain
Build a business portfolio after COVID-19
Aim to continue growth in 4 existing business fields,
mainly in the life innovation business and theinvestment business

1

Recovering revenue of AirTrip travel business byutilizing GoTo Travel
Take a chance of the increased demand of domestic travel
during COVID-19
Definitely capture domestic travel demand after COVID-19
by utilizing GoTo travel and digital marketing
Copyright © Air Trip Corp. All Rights Reserved.

“Restart”
the beginning of thesecond stage after
being listed~Restart~21

"AirTrip 2021“ growth strategy ~ ”Restart” ~ AirTrip travel business

Revenue expansion focusing on the domestic travel domain
by utilizing GoTo Travel~ Definitely capture domestic travel demand by effective digital marketing centered on
WEB video advertising~
Growth strategy of AirTrip travel business●●

Action plan of AirTrip travel businessIn the domestic travel domain, we aim at revenue expansion
throughout the year by continuing high rate of growth in 1Q~2Q
with utilizing GoTo Travel, increasing travel demand during GW in
3Q and increasing travel demand during summer in 4Q.
In the overseas travel field, we aim at stabilizing by travel
restriction in 1Q~2Q, assuming recovery demand by relaxation
restriction mainly in business travel in 3Q and increasing overseas
airline ticket demand by the effect of Tokyo Olympic in 4Q.
Changes in forecast revenue of AirTrip travelbusiness FY2021(Revenue)

Measures to utilize GoTo Travel for revenue expansion
・ Strengthen sales of all target products of GoTo Travel
・ Strengthen cross-selling sales of domestic airline ticketand domestic hotel

Domestic
travelDomestic travel
Overseas travel

Overseas
travel

1Q

2Q

3Q

4Q

(Period)
Copyright © Air Trip Corp. All Rights Reserved.

<Thoroughly improve UI/UX to increase CVR>
・Optimal design UI/UX for GoTo travel users
・ Provide UI/UX that captures travel demand after
COVID-19<Capture demand by digital marketing>・ Acquire new customers by Youtube video
advertising
・ Optimize SEM to capture GoTo travel demand<Formulate a profit recovery plan by assuming
relaxation restriction>
・ Delivery travel information according to overseas
relaxation restriction information
・ Capture from business travel demand to travel demand・ Prepare cross-selling sales of overseas travel and PCR
test
22

"AirTrip 2021“ growth strategy ~ ”Restart” ~ Continue to develop 4 existing business and start with healthcare business

Creating various business portfolios for After Covid-19 period~Continue to develop existing businesses focus on life innovation and investment, create
many different business portfolios for the new healthcare domain～
Growth Strategy for 4 existing and 1 new business●●●

Aim to acquire new customers and increase profit by promoting
various content distribution and renewing the function of “MagMag
Live”, a Live streaming service operated by MagMag
The healthcare business (PCR Test Reservation Agent service)developed by PikaPaka company aim to build profit basis and gainincreasing PCR test demand by expanding Testing methods (Testat hospital/ Office visiting test / Home test kit) and by various
methods to attract customers, sales promotion.
Other IT offshore development business and overseas travel aim toestablish a business foundation focus on domains which haveprospect to grow in medium and long term by grasp the need of
After Covid 19 period

Action plan for 4 existing and 1 new businessLive
Streaming
Service<Renew functions of Live streaming service>
・To be able to use on not only on app but also on PC
・Expand functions pursuing UX on both streaming sideand viewer side.
<Gain demand by different contents streaming>
・Develop contents such as sport event videos
・Get new customers by large events or live games.

Healthcare
Business<Expand services that meet the increasing demand of PCR test>
・Gain demand by develop test methods (Test at hospital/ Home
visiting test / Home delivery test kit)・Attract customers and promote sales both online and offline
・Build examination reservation reception system in English andChineseOther
businessfoundation<Build a business portfolio that has prospect to
grow>・Consider new value provided after corona・Identify business domain with growth potential tofocus onCopyright © Air Trip Corp. All Rights Reserved.

23

“AirTrip 2020” Growth Strategy ~ “Restart” ~ Started up health care business as new business base

Started up health care business as new business baseCut out from the life innovation business and started up as a new business

ヘルスケア事業
Health Care

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24

“AirTrip 2020” Growth Strategy ~ “Restart” ”～Investment Strategy

Continue to strategically and strongly invest on developing domains～Grasp the precise image of business environment after Covid-19、
continue strong investment in growing domains which well synergy with our Group～
Growth Strategy of Investment Business●●●

Action Plan of Investment Business

Accurately grasp changes in the business environment inafter-corona and strategically aggressively invest in
growth areas that emphasize synergies with the Group
Strategic investment decisions will be focused on (1) how
much synergies can be expected with the Group, (2)business areas where growth is expected over the
medium to long term, and (3) whether early profit
contributions can be expected
Aim to improve the accuracy of a series of processes
from M&A target selection to DD → negotiation →contract → PMI, further systematize the process, andimprove the growth rate after grouping<Estimation Key Points of strategical investment on investment business>

Synergywith ourGroup

Medium andlong term
growing
domainStrategicall
y strong
investment<Plan of strategical investment after Covid-19>
・Grasp the precise image of business environment after Covid-19
・Determine medium to long tearm growth and profitability of target
domains.
・Estimate whether investment can cause discontinuos growth or not

Determine
Investment
domains<Identification of after Covid-19 investment domain>・Emphasize on synergistic effects with our Group・Determine if the domain could grow or not
・Quantitatively evaluate the early profit contribution rate
after investment

Increase
Growthrate after
M&A<Pursues growth rate improvement after grouping
through M&A>
・ Systematize a series of processes in M&A
・ Increase the M&A contract rate by committing management
・ Verify the feasibility of synergies with precise DD
・ Improve PMI accuracy and improve growth rate after M&A

Early profit
contribution

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25

“AirTrip 2020” Growth Strategy ~ “Restart” ~ Financial Strategy (1)：Maintain healthy financial structure by increasing liquidity

Continue to maintain the high level of on-hand liquidity～Forecast of the financial health improvement from this term～
Financial Strategy●●

Action plan of Financial Strategy

Maintain a healthy financial structure of the businessenvironment that uncertainty is growing after COVID-19 bystrategically increasing on-hand liquidity
Action to increase on-hand liquidity: (1) Cut down entire
company’s cash out (2) Visualize the whole group on-handcurrent account balance (3) By various fundraising method,
aim to increase financial health focusing on ensuring cash.

<The transition of Group’s consolidated financial health>Financialstrategy
formulation<After Corona’s financial strategy formulation>
・Capture the business environment after COVID-19
・Raise on-hand liquidity to increase financial health・Increase financial and investment capacity for thedevelopment

Increasingliquidity
plan<Plan to increase on-hand liquidity for maintaining
financial health>・Restrain cash out in entire company.
・Visualize the whole group’s on-hand account balance.
・Consider different fundraising methods.

Mid-tolong term
policy<Mid-to-long term policy to increase on-handliquidity>
・Relatively reduce dependance on travel domain.
・Continue the preparation of listing of 2 main
subsidiaries (IPC/HT)・Establish new revenue basis by growth investment.

Cash
Equity RatioCash

7 billion
yen*End of FY20.4Q

3Q

4Q
Copyright © Air Trip Corp. All Rights Reserved.

26

“AirTrip 2020” Growth Strategy ~ “Restart” ~ Financial Strategy (2)：For a stronger financial structure

Realize BS slimming by recording impairment loss for this term
The actual situation BS becomes more stronger by unrealized gains
and fundraising of MAGMAG～ “Restart” with the stronger financial structure from FY2021~

FY19.4Q

FY20.4Q

Liabilities

Liabilities

Interest –bearing
Debts

Streamlining BS(Impairment Loss
Recorded etc.)

Interest–
bearing
Debts

FY20.4Q(Curent Sittuation)

Liabilities
For a stronger
financial structure
than it looks

Net
AssetsInterestbearing
Debts
Net
AssetsMAGMAG’s
Unrealized
gain
FundraisingNet
assetsCopyright © Air Trip Corp. All Rights Reserved.

Net
AssetsAdded
27

“AirTrip 2020” Growth Strategy ~ “Restart” ~ Earnings Forecast on FY2021

By implementing new growth strategy “Airtrip 2021 - Restart”,
taking the lead in the industry and forecast to achieve profitability
from FY21.1Q（million yen）

FY21.9 Period
Forecast
Handling volume

45,000Net Sales

23,500Operating Income

300

Profit180

Dividend-

Strategies based on Earnings Forecast
Expand revenue in Airtrip’s Travel Business
Make profit from Business Portfolio except for Travel
domain.
Guarantee profit by strongly invest in growing domains.

Increase profit by controlling cash-out cost

Aim for payout ratio level of 20%
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28

FY20.4Q Recent Actions and Achievements

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29

Launch of discount sales for all objected products of GoTo Travel Campaign
AirTrip travel business

Launch of discount sales for all objected products on the same day
after exclusion cancellation announcement of Tokyo from GoTo Travel~ Promotion of discount sales of objected products on GoTo Travel
special site ~Copyright © Air Trip Corp. All Rights Reserved.

30

Significant improvement in handling volume by the effect of GoTo Travel Campaign
AirTrip travel business
Improved significantly in handlingvolume by the effect of GoTo Travel Campaign!!

~Steadily increasing daily sales and October handling volume is expected to reach
643% compared to July~
After launching of
GoTo Travel Continue GoTo Travel DiscountBefore launchingof GoTo Travel

Sales (announce restriction on
discount sales in other companies)

Significant improvement
in handling volume after
launching of GoTo Travel

Launch of GoTo Travel(Jul 22)

Launch of GoTo travel common
region coupon (Oct 1st)
Exclusion cancellation
announcement of Tokyo from
※国内航空券＋ホテル、国内ホテル、国内ツアーの予約ベース取扱高となります。
GoTo Travel (Sep 18)

July 2020

October 2020
エアトリ旅行事業* Handling volume based on domestic airline ticket + hotel, domestic hotel, domestic tour reservation.
Copyright © Air Trip Corp. All Rights Reserved.

31

Launch of sale of accommodations with the Tokyo Metropolitan Discount "Motto Tokyo"
AirTrip travel businessStart to sell accommodations with
the Residents of Tokyo discount "Motto Tokyo"!!

~After selling at AirTrip domestic hotels,
assigned accommodations was sold out in a few hours~

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32

New listing on Tokyo Stock Exchange JASDAQ of Subsidiary Magmag, Inc.
Life innovation businessSubsidiary Magmag, Inc. is listedon the Tokyo Stock Exchange JASDAQ‼

~Achieved the first listing of a consolidated subsidiaryof the AirTrip Group~

Magmag, Inc. (Securities Code: 4059) was listed on the Tokyo Stock
Exchange JASDAQ Standard Market on September 24, 2020
Copyright © Air Trip Corp. All Rights Reserved.

33

Transfered all shares of subsidiary HIKAWA CO., LTD.
Life innovation businessTransfered Hikawa Co., LTD.,
subsidiary, a tea manufacturing company to San-Ei Gen F.F.I.,Inc., afood additive manufacturer‼
~Transfer of shares by "selection and concentration"in the life innovation business field~

Transfer of all shares
Transfer on September 30, 2020

San-Ei Gen F.F.I.,Inc.
(Food additive manufacturer)

Copyright © Air Trip Corp. All Rights Reserved.

34

Build healthcare business base ~ Launch of new PCR test at our partner T Care Clinic ~Life innovation businessAs part of measures to strengthen the healthcare businessbase, launched to provide PCR test that issue negative certificate
for travelling to Hawaii or China at partner T Care Clinic!!
~ It is possible to travel to Hawaii or China by presenting a negativecertificate of PCR test ~Copyright © Air Trip Corp. All Rights Reserved.

35

FY20.4Q Business Progress

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36

Marketing ~ Branding Effect ① ~Raise the search trends by increasing
the brand recognition of "AirTrip"

AirTrip travel business~ Surpass the competitors during the year
and GoTo Travel period ~AirTrip
Competitors

Outperform the competition during
GoTo Travel period
Secure search volume
by CM broadcast

Oct 2019

Oct 2020

Jan 2020

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37

Marketing ~ Branding Effect ② ~AirTrip travel business

Recovered significantly the number ofbrand searches of keyword “AirTrip” by Goto travel effect~ Recovered significantly search trends after launch of GoTo Travel ~Exclusion cancellation
announcement of Tokyo
from GoTo Travel (Sep 18)

Recovered significantly
search trends by GoTo
Travel effect* Handling volume based on domestic airline ticket + hotel, domestic hotel, domestic tour reservation

Oct 2020

Aug 2020
Copyright © Air Trip Corp. All Rights Reserved.

38

Marketing ~ AirTrip Branding Measures ~Implementing advertisement development
to promote the GoTo Travel Campaign[Web-CM] Youtube video advertising

AirTrip travelbusiness[Traffic advertising] Reform design of existing 7 media

Copyright © Air Trip Corp. All Rights Reserved.

39

Domestic flight tickets ～ Recovery of handling volume since GoTo Travel started~
Airtrip Travel Business

Recovery of handling volume by increasing domestic travel demand Since
GoTo Travel started~Recovery of 168% handling volume and 114% organic CVR compared to 3Q this term~
Handling
volume168%

Recover handling volume of domestic flight ticket byincreasing domestic travel demand!!

※Compared toFY20.3Q

Continue to recover handling volume of domestic flight ticket byincreasing domestic travel demand Since GoTo Travel started

CVR

114%
※Compared toFY20.3Q

FY20.3Q

Steady recovery trend of organic CVR
CVR with organic influx is steadily recovering by increasing
domestic travel demand

FY20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

40

Domestic Airtrip Plus (Flight tickets + Hotels ~ Increased significantly in handling volume by GoTo Travel effect～
Airtrip Travel Business

Increased significantly in handling volume by GoTo Travel effect~Achieved 630% handling volume and 180% organic CVR compared to 3Q this term~

Handling
volumeIncrease in handling volume of flight tickets + hotels
by GoTo Travel effect630%※Compared toFY20.3Q

Achieved a significant increase in handling volume of
Airtrip plus (Flight tickets + Hotels) by GoTo Travel effectContinue to grow a high rate Organic CVR
CVR

180%

Organic CVR continues to grow high rate by UI/UX
improvements after assuming the use of GoTo travel※Compared toFY20.3Q

FY20.3Q

FY20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

41

Domestic Hotel ~ Cash-out cost cut down & Significant recover in handling volume～
Airtrip Travel Business
While continuing to restrain cash out、
Handling volume raise sharply due to the efficiency of GoTo Travel and Tokyo
Citizen Discount～55% Cost cut down compared to 2 months before Corona disease, handling volume grew 775%
compared to 3Q～＜Airtrip Domestic Hotel cash out cut down situation＞＜Transition of Airtrip Domestic Hotel’s Handling volume＞（%）
Handling volume(Actual value)

100

10%

Handling volume(Prediction value)

4%“Motto Tokyo Campaign”
Promotion for Tokyo Citizen start
selling(10/23)

80
GoTo Travel announcement toremove Tokyo restriction(9/18)

Variable Cost
Fixed Cost

Handling
volume60

40

Launch of GoTo Travel
Campaign(7/22)
SG&A Expense

775%（Cash out）

※Compared to FY20.3Q

90%

49%

20

(4Q monthly actual
value)△55%

Significant increase in handlingvolume due to the efficiency of GoTo
Travel and Tokyo Citizen discount※Compared
to20.2

0

20.2

20.9

(Before Corona)(End of current period)Jul
Copyright © Air Trip Corp. All Rights Reserved.

Aug

Sep

Oct

Nov

Dec
42

Domestic Hotel ～ Business Strategy by ultilizing GoTo Travel and Residents of Tokyo discount Campaign～
AirTrip travel business

Implementing various measures to gain accommodation demandusing GoTo Travel and Residents of Tokyo discount Campaign~Gaining accommodation demand by Returning big points x Promoting accommodation
purchase×Improving UI/UX~
Return up to 70% points fordomestic booking using GoTo
TravelStart to handle accommodation
facilities operated by JR EastGroup

Improve all UI/UX compatible to
GoTo Travel and Residents ofTokyo discount Campaign

In addition to GoTo Travel discount、
return up to 70% of 20% Airtrip points tocustomers who book domestic hotel.

Promote accommodation purchase bysigning package sales contract with the
big Hotel Chain of JR East Group

Improve CVR by specially focusing on
UI/UX improvement to fully compatible
with GoTo Travel and Residents of Tokyo
discount Campaign

Copyright © Air Trip Corp. All Rights Reserved.

Launch of Residents of Tokyo
discount “Motto Tokyo”
Gain travel demand of Tokyo Residents
through GoTo Travel 70% OFF+
Launch of selling 5.000 yen promotionof Tokyo Residents Discount Campaign“Motto Tokyo”

43Domestic Tours/Needs Tour Co., Ltd ~ Significant growth in Handling volume results from GoTo Travel effect ~AirTrip travel businessAirtrip domestic tours and Needs Tour
Handling volume is raising dramatically which results from GoTo Travel effect～ Airtrip Domestic Tour achieved the highest Handling volume ever ～＜Comparison of Airtrip Domestic Tour’s Handling Volume＞＜Comparison of Needs Tour’s Handling Volume＞

Handling
volume※Handling
volume※

550%

290%

※Compared toFY20.3Q※Compared toFY20.3Q

FY20.3Q

FY20.4Q

FY20.3Q

FY20.4Q※Domestic Tour’s payment base and Needs Tour is booking base handling volume
Copyright © Air Trip Corp. All Rights Reserved.

44

Domestic tour ~ Start of discount sales of special tour products by utilizing GoTo Travel~
AirTrip travel businessStart to sale of special tour products by utilizing GoTo Travel which
combines partner airlines and hotels‼
~ Positively develop sales strengthen campaign with business partners ~Copyright © Air Trip Corp. All Rights Reserved.

45

Overseas Air Tickets/Overseas Hotels/Overseas AirTrip Plus (Airline Tickets + Hotels)~Continue to reduce cost thoroughly~

Minimize the impact of COVID-19 bycontinuing to reduce cost thoroughly

AirTrip travel business~Achieved 97% reduction in comparison with 1Q of this term by minimizing
advertising expenses~
Comparison with advertising costs in the overseas travel area
Advertising
costs
Advertising
costs

△97%
* In comparison
with FY20.1Q

Minimize marketing costs and prepare to restart
While continuing to interrupt paid advertising, we
observe trends in Japan and around the world andprepare to restart advertising.
Optimal pricing in consideration of market
situation
Carefully examine the suitable price range fromdaily user trends and implement optimal pricing
according to the situation.
Carefully examine marginal cost reduction andreduce fixed costs
Review the business content based on the cost
reduction results in 3Q and reduce fixed costs

FY20.1Q

FY20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

46

Overseas Air Tickets/Overseas Hotels/Overseas AirTrip Plus (Flight Tickets + Hotels)~ Examination of sales methods after COVID-19~
AirTrip travel businessStart to prepare for introducing sales methods
that combine overseas travel and PCR test
~Consider sales methods that ease away travel anxiety of COVID-19 ~Prepare cross-selling of overseas travel x PCR test
It is assumed that PCR test will be required for overseas
travel, we prepare cross-selling PCR test.

Ease away risk bearing of reservation cancellation
fees
Plan to provide an insurance service that exempts
reservation cancellation fees for positive test result of
COVID-19
Promote visualization of overseas travel procedures
to each country
Visualize the travel flow or procedure and plan to deliver
due to many complicated conditions for overseas travel
to each country
Copyright © Air Trip Corp. All Rights Reserved.

47

Group companies: Seven Four Seven Enterprise
AirTrip travel business

Promote to prepare for the sale of business trips andstudy abroad trips by relaxing regulations of Hawaii entry
Examination of services cooperation in partner
clinics
Receive certification of partner clinics as a medical
institution for PCR test designated by the state of
Hawaii and consider a one-stop service before
travelling
Strengthen cooperation in partner suppliers

Obtain the newest information from partner airlines andhotels and delivery in a timely manner everyday

Copyright © Air Trip Corp. All Rights Reserved.

48

Group companies: Airtrip Ticket
AirTrip travel business

Recovered significantly in net sale by promoting productsthat capture customer trends~Achieved 135% net sales compared to FY20.3Q~

1,600(million yen)

1,928

2,000

Identify customer transaction trends and promote
products to sell
1,427

1,200

Steadily increase sales and profits by paying close
attention to the transaction trends of active customers
and setting prices that stimulate demand.

Handling
Volume35%

800* In comparison
with FY20.3Q

Implement cost reduction according to the
profitability of the store

400

0Reduce costs by reducing fixed costs due to closureof unprofitable stores, business suspended, etc.
FY20.3Q

FY20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

49

Group companies: AirTrip BTM ~ AirTrip BTM Co., Ltd. started on September 1st, 2020
AirTrip travel businessLife innovation business

AirTrip BTM Co., Ltd. started on September 1st , 2020
~ Widely develop valuable services for corporations andnot limited to the travel field ~AirTrip BTM Co., Ltd.

PCR test reservation service

Company split and Business succession

Start test reservation service for corporate
customers as part of support for measures against
COVID-19 infection

AirTrip Corp.
BTM business“MoshiCoro～もしコロ～”service
AirTrip International Corp.
Airtrip's corporation desk

Start to provide coronavirus infection guideline"Moshi Coro" with insurance compensation

Copyright © Air Trip Corp. All Rights Reserved.

50

Group companies: AirTrip BTM ~ Changes in the cumulative number of contracted companies ~AirTrip travel business

The number of BTM clients and contracted companies has slowed
due to the impact of COVID-19 but the trading base remains
unchanged(The number ofcontract companies)

Increase by acquisition ofDeNA Travel Co., Ltd.

Copyright © Air Trip Corp. All Rights Reserved.

3,529

51

Group companies: AirTrip BTM ~ Significant increase in the number of registered companies to build a PCR test
system ~Life innovation business
Significant increase in the number ofregistered companies to build a PCR test system~Response in emergency case and buy now pay later transactionstransactions by company registration~<Changes in the number of registeredcompanies for PCR test>
Significant increasein the number ofregistered companies

Increase the number of registered companies by
capturing the demand for various PCR test
By expanding the three patterns of test methods, test
at hospital, home visiting test, home delivery test, wehave various PCR test demands and realized asignificant increase in the number of registeredcompanies.
Achieved a reasonable test price from FY202

Introduced new PCR test equipment and realized areduction in testing prices from October with the startof GoTo Travel.
20.8

20.9

20.10
Copyright © Air Trip Corp. All Rights Reserved.

52

(Repost) Group companies: AirTrip BTM ~ Start reservation service for PCR tests and antibody tests for corporate
customers ~Life innovation businessStart reservation service for PCR test and antibody test forcorporate customers as part of support for measures against
Coronavirus infection!!
Reservation service
for PCR test andantibody test

Corporate
customers

Designatedmedicalinstitutions

Pika Paka Co., Ltd.
(AirTrip Group Company)

Employee andtheir family
Inspection
proposal

Inspection
requestInspection
reservation

Individual
customer

AirTrip member

・ Inspection reservation
agency・ Health (negative)
certificate sending agency
・ Invoice settlement
support・ Providing information
Coronavirus in eachcountry

Copyright © Air Trip Corp. All Rights Reserved.

53

IT offshore development business ~ Increase in the number of new orders ~IT offshore development business

Steadily increase the number of new orders fordevelopment projects

The number of new orders

6 Companies
4 other companies
Copyright © Air Trip Corp. All Rights Reserved.

54

IT Offshore development business〜 Selected for “IT Import Operating Supporter” of “2020 IT Import Subsidy” ～IT Offshore Development BusinessSelected for “IT Import Operating Supporter” of “2020 IT
Import Subsidy” !!
～Supporting small businesses; small and medium enterprises in considering EC Import site ～Approved /Instructed

IT Import
Subsidy Office( IT Import Operating Supporter)
Order
Discuss on Support
operations

Support reqest
Create EC site / Renew after support

Apply

Small and medium enterprises/ Small
businesses (Applicant)Provide Subsidy

Copyright © Air Trip Corp. All Rights Reserved.

55

Core Subsidiaries： HYBRID TECNOLOGIESIT offshore development BusinessNo.1 in Japanese offshore development in Southeast Asia by Hybrid
Development～Net sales fell 62% compared to previous period 4Q, number of orders currently tends to recover ～600

Net sales
547(million yen)

62%

Although the influence of COVID-19, the business currently
tends to recover.

* Compared toFY19.4Q

Despite the decrease due to Corona disease’s influence in 4Q,
the number of new received orders is likely to recover. Therefore,
the preparation for listing is kept doing.

480

341

360

Start to support for manufacturing assistancepayment/IT introduction assistance payment

240

Started support for promoting digital transformation ofsmall and medium-sized enterprises, and increased bothnew lead acquisition and orders

120

0

FY19.4Q

FY20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

56

Core Subsidiaries: Inbound Platform Corp.
Inbound Travel Business

Decrease in inbound is covered by gaining domestic demand～Handling volume was remained at 102% on this period compared to 3Q～
Handling
volume250(million yen)102%
* Compared toFY20.3Q

200
158

160

Prospect on Camping Car
Camping Car Outdoor for Japanese people
steadily develop due to outdoor recreation
demand rise.

150

100

50

0

Increase in corporate demand in Wi-Fi
business.
The growth of working from home leads to theincrease in corporate demand, so that thedecrease in inbound demand is covered.

FY20.3Q

FY20.4Q

Increase in cost effectiveness by cutting
down fixed cost.
Improving cost effectiveness by changing
purchasing efficiency and closing currency
exchange store.

Copyright © Air Trip Corp. All Rights Reserved.

57

Group Company：Airtrip Stay
Inbound Travel Business

Guarante the demand of remote working or Long stay andincreased significantly in Occupancy Rate
～Achieved 252% property occupancy rate compared to 3Q～
Occupancy
Rate

Achieve remote working demand by improving theBusiness environment.
Succeed on obtaining domestic remote working demandby improving Business environment such as Wi-Fi
environment or working desks on property management.

252%* Compared toFY20.3Q

Gain more long stay demand by adding more
information about nearby facilities
Gain Long stay demand by bring up full information
about facilities used in daily life such as nearby
convenience stores or restaurants.
FY20.3Q

FY20.4Q
Copyright © Air Trip Corp. All Rights Reserved.

58

Investment Business ～ Continuation of further growth investment ～Investment Business

Strengthen the investment development 64 companies
Total investment amount about 2.3 billion yen※As of September 2020･･･etcCopyright © Air Trip Corp. All Rights Reserved.

59

Investment Business ~ Our investee company Headwaters Co.,Ltd., newly listed on TSE Mothers
Investment Business

Our investee company Headwaters Co.,Ltd.
newly listed as the 6th IPO project～Achieved IPO with a total of 3 investees in FY20.9～

Listing

WAGOKOROPIALA

BRANDING TECHNOLOGY(“Mothers”：9271) Listed on Mar 2018(“Mothers”：7044) Listed on Dec 2018(“Mothers”：7067) Listed on Jun 2019

Changed to 1st Section on Jul 2020

AI CROSSCYBER SECURITY CLOUDHEADWATERS("Mothers”：4476) Listed on Oct 2020(“Mothers”：4493) Listed on Mar 2020(“Mothers”：4011) Listed on Sep 2020

Copyright © Air Trip Corp. All Rights Reserved.

60

(Repost) FY2021 "Restart" ~ The beginning of the second stage after being listed ~Four years and a half after being listed is known as "The 1st stage", “Restart”
FY2021 as “The beginning of the second stage"~Make it better with an impairment loss of approximately 7.4 billion yen
and continue to aim for "AirTrip 5000“~* Announced in FY20 Results of operations materials(Nov 14th, 2020)

FY16
FY17
(After Mar 31st ,
2016)

FY18

FY19

FY20

FY21～

The first stage“Restart” the beginningof the second stage

After being listed (Mar 31st, 2016)~ FY2020 (Sep 30th 2020)~Restart~
Organize the assets related to the first stage
and make it better

Continue to aim for "AirTrip 5000"

Copyright © Air Trip Corp. All Rights Reserved.

61

・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.
(Tokyo Stock Exchange 1st Section：6191)
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