Results of Operations
For the Fiscal Year Ended September 30, 2017
(4Q FY9/2017)

Evolable Asia Corp.
TSE 1st section: 6191

Highlights

Consolidated handling volume, consolidated net sales and consolidated
operating income all reached new record highs.

Preparations were made for the introduction of IFRS.

Earnings forecasts for the next fiscal year: operating income of 1.5 billion yen

Medium-term vision: achievement of handling volume of 100.0 billion yen one
year ahead of the plan
Copyright © Evolable Asia Corp. All Rights Reserved.

1

Financial Summary for the Fiscal Year Ended September 30, 2017

Copyright © Evolable Asia Corp. All Rights Reserved.

2

Changes in Consolidated Handling Volume

Record high consolidated handling volume,
up 44% year on year
(billions of yen)

5040402830
21201914810426161267015.1Q 15.2Q 15.3Q 15.4Q 16.1Q 16.2Q 16.3Q 16.4Q 17.1Q 17.2Q 17.3Q 17.4Q
Copyright © Evolable Asia Corp. All Rights Reserved.

3

Changes in Consolidated Net Sales

Record high consolidated net sales,
up 38% year on year

(millions of yen)

5,534

6,000

5,000
4,0004,000

1,821

2,000
1,000

2,757

2,754

3,000

1,097

3,968
2,498

1,741832

1,202451015.1Q 15.2Q 15.3Q 15.4Q 16.1Q 16.2Q 16.3Q 16.4Q 17.1Q 17.2Q 17.3Q 17.4QCopyright © Evolable Asia Corp. All Rights Reserved.

4

Changes in Consolidated Operating Income

Record high consolidated operating income,up 18% year on year
(millions of yen)

800

730
618

600

581431400

312292204

200

14320385

198

80015.1Q 15.2Q 15.3Q 15.4Q 16.1Q 16.2Q 16.3Q 16.4Q 17.1Q 17.2Q 17.3Q 17.4QCopyright © Evolable Asia Corp. All Rights Reserved.

5

Statement of Income

Handling volume, net sales and operating income
all reached record highs.
FY9/2016
AmountFY9/2017% to Sales

Amount% to Sales

40,016(millions of yen)

YoY Change

Handling Volume

27,782Net Sales

4,000

100.0%

5,534

100.0%

138.3%

Gross Profit

3,321

83.0%

4,597

83.0%

138.4%

Operating
Income

618

15.4%

730

13.2%

118.1%

Ordinary Income

571

14.2%

695

13.9%

121.7%

Profit

340

8.5%

420

7.5%

123.4%

Copyright © Evolable Asia Corp. All Rights Reserved.

144.4%6Change to IFRS

Operating income increased due to loss (gain) on investments,
non-amortization of goodwill, etc.
(millions of yen)

FY9/2017
Japanese standards
AmountFY9/2017
IFRS *% to Sales

AmountDifference% to Sales

Handling
Volume40,016Net Sales

5,534

100.0%

5,633

100.0%

99

Operating
Income

730

13.2%

1,008

17.9%

278

Profit

420

7.5%

652

11.5

+232

40,116*Provisional values (not audited): change to IFRS is scheduled for the fiscal year ending September 30, 2018.
Copyright © Evolable Asia Corp. All Rights Reserved.

7Comparison to Budget

Substantial achievement of operating income of 1 billion yen
upon change to IFRS
(millions of yen)

FY9/2016

FY9/2017
Japanesestandards

Forecasts

IFRS *Handling
Volume27,78235,36640,016

40,116Net Sales

4,000

6,147

5,534

5,633

Operating
Income

618

1,001

730

1,008

Profit

340

594

420

652

- Prior investment of marketing costs for expansion of the share- Preparation for new business and prior burden of costs due to promotion of M&A* Provisional values (not audited): change to IFRS isscheduled for the fiscal year ending September 30,Copyright © Evolable Asia Corp. All Rights Reserved.
2018.

8

Financial Forecasts

9

Earnings Forecasts for FY9/2018

Expected operating income is 1.5 billion (150%growth).
(millions of yen)

FY9/2017 IFRS
Amount*FY9/2018 IFRS *% to Sales

Amount% to Sales

YoY ChangeHandling
Volume40,116

Sales Revenue

5,633

100.0%

7,050

100.0%

125.1%

Operating
Income

1,008

17.9%

1,500

21.2%

148.8%

Profit

652

11.5

881

12.5%

135.1%

70,000* Provisional values (not audited): change to IFRS isscheduled for the fiscal year ending September 30,2018.
Copyright © Evolable Asia Corp. All Rights Reserved.

174.4%

10Balance Sheet

Investment businesses and other investment for growth promoted
FY2016FY2017

YoY Change

Current Assets

4,024

5,158+1,134

Cash and Deposits

2,356

2,139-217

Operational
Investment Securities‒1,100+1,100

Non-current Assets

817

2,320+1,503

Total Assets

4,841

7,478

+2,637

Liabilities

2,470

4,252+1,782

331

1,400+1,069

Net Assets

2,371

3,226+855

Shareholders’ Equity

2,276

2,773+497

Equity Ratio

47.0%

37.2%

-9.8

Interest-bearing
DebtsCopyright © Evolable Asia Corp. All Rights Reserved.

(millions of yen)

Promoted investment
businesses proactively

11Growth Strategies and Topics

Copyright © Evolable Asia Corp. All Rights Reserved.

12

Online Travel Agency Business: AirTrip Business Strategy

AirTrip business to be promoted under the three pillars
Promotional
campaigns

2

Improvement ofproducts

Increase ofmerchandise

TVCM

Electronic
billboard
Copyright © Evolable Asia Corp. All Rights Reserved.

13

AirTrip: Promotional Campaign (1) TVCM

TV commercial in the Sapporo/Fukuoka/Okinawa areas to bebroadcast

TV commercial in the Kanto/Kansai
areas to be broadcast during the current fiscalyear

Copyright © Evolable Asia Corp. All Rights Reserved.

14

AirTrip: Promotional Campaign (2) Partnership with mag2 Co., Ltd.

By taking in the mag2 members, the number of AirTrip
members will be 8.0 million.

Members of e-mailmagazine

Existingmembers

7.5 million
persons

0.4 million
persons

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15

AirTrip: Increase of Merchandise

Increase of merchandise, especially for domestic travel
Enterprise,
whichhasanadvantage in domestic travel, is to beacquiredEnterprise will be made a subsidiary. It

has an advantage in domestic travel products(package) for Okinawa/Hokkaido.

Overseasairline
ticketsincreased in dealings

tobeIn addition to the domestic airline tickets that havebeen the major products, sales of overseas airline

tickets will be strengthened in future.
Copyright © Evolable Asia Corp. All Rights Reserved.

16

Online Travel Agency Business: Number of BTM Clients

Increasing BTM clients expanded earnings in the stock business.

1,097

544

572

16.1Q

16.2Q

619

16.3Q

667

16.4Q

722

17.1QCopyright © Evolable Asia Corp. All Rights Reserved.

1,152782

17.2Q

17.3Q

17.4Q
17

Inbound Travel Business: Partnerships with Travel Agencies in China and Taiwan

Promoting partnerships with travel agencies in China and Taiwan
following the partnership with Ctrip, China’s No. 1 agency
Alliances with more than 500
companies

Alliance with Qunar, amajor Chinese OTA

etc

Alliance with LIONTRAVEL, a major
Taiwanese OTA

Domestic Airline Tickets

Copyright © Evolable Asia Corp. All Rights Reserved.

18

Inbound Travel Business: Money Exchange Business

Expanding sales channels by installing fintech currency
exchanging machines and forming an alliance with a hotel chain

UserOur shop

Ourwebsite

ToyokoInn

Installing fintech currency exchanging machines atour shops

Partnership for currency exchanging service at thecounter of the hotel

Installing foreign currency exchanging machines of Extech, which
is developing exchanging machines having the IoT function andfintech function with AI, at our exchange shops

Foreign visitors to Japan can conduct credit card transactions on
our website and receive yen at the counter of Toyoko Inn.

Copyright © Evolable Asia Corp. All Rights Reserved.

19Inbound Travel Business: Camper Rental Business

Expanding sales channels and camper rental offices throughpartnerships with major travel agencies

Narita Airport office

In May 2017, sales at H.I.S. started.
In September 2017, a domestic
experience plan started.

Shiomi Ekimae office

Funabashi office
MeguroHimonya office
Haneda office

In September 2017,
sales at i.JTB started.

Camper rental offices in central Tokyo and close to airports haveincreased through a partnership with Times Car RENTAL.
Copyright © Evolable Asia Corp. All Rights Reserved.

20

IT Offshore Development Business: Progress

Steady progress, including new group companies
Exceeded 800employees

2014

2015

4 new openings

2016

2017

Exceeded 800 engineers
The number of engineers exceeded 800
during the fiscal year under review due toan increase in the number of engineers
for the upstream process by oursubsidiary, EVOLABLE ASIA SOLUTION &BUSINESS CONSULTANCY COMPANY.

Copyright © Evolable Asia Corp. All Rights Reserved.

21

Investment Businesses: Investment Results

Strengthening investment and development: Total investment in22 companies for an aggregate of 1.1 billion yen

Aiming to increase corporate value
with measures such as an IPO

Returns

Investment anddevelopment

etc

Copyright © Evolable Asia Corp. All Rights Reserved.

22

Investment Businesses: Outlook

Sustainable profits are expected through growthat companies that the Company invests in.
Some companies that the Company invests in plan to make an IPO.

Selling after
increasing value

IPO

ReturnGrowth

Venture having
high growth potential
Investment

Copyright © Evolable Asia Corp. All Rights Reserved.

23

Financial Strategy: Alliances with Regional BanksBusiness alliances with 3 regional banks
to promote sales of corporate services
Alliances with regional banks will continue to be promoted proactively.

• IT offshore• Introducing
Airbnbcustomers
Introducing BTM
customers

Yokohama
Bank

Shikoku Bank

Keiyo Bank
Copyright © Evolable Asia Corp. All Rights Reserved.

24

Financial Strategy: Stock Acquisition Rights

Satisfy conditions for stock acquisition rights early and raise funds
9th stock acquisition rights

Method of issuance of stock acquisition rights

10th stock acquisition rights

11th stock acquisition rights

Third-party allotment to Credit Suisse Securities (Japan) Limited

Net rough estimates

10,122 million yen

Planned financing amount

2,030 million yen

3,044 million yen

5,053 million yen

Number of shares to be issued

572,200 shares

673,200 shares

841,500 shares

Exercise period

24 months

Total issue price

10,129 million yen

Exercise price3,500 yen

4,500 yen

6,000 yen

Surplus rate*1

20%

28%

33%

Ratio of shares to be issued to issued shares

3.4%

4.0%

5.0%

Total rate of potential dilution

12.4%
Higher surplus rate setting to reduce dilution
Gradual setting of exercise price for gradual issue of new shares

Major characteristics of these stock acquisition rights

Terms for amendment of exercise price to meet any flexible needs for funds
System for approval of exercise to control time of financing
Higher equity ratio to increase financial strength*1: The surplus rate is calculated according to the following calculation formula:
9th stock acquisition rights: (exercise price/closing price on the day preceding the date of resolution for issue thereof - 1) x 100
10th and 11th stock acquisition rights: (exercise price/exercise price for the previous stock acquisition rights - 1) x 100
Copyright © Evolable Asia Corp. All Rights Reserved.

25

Financial Strategy: Dividend Policy

Dividend payout ratio of approx. 20% will continue
to be applied for FY9/2018.
FY9/2017

Dividend forecast for FY9/2018

Record date

September 30, 2017

September 30, 2018

Dividend per share

7 yen

10 yenTotal dividends paid

118 million yen

171 million yen

Effective date

September 30, 2017

September 30, 2018

Source of dividends

Earned surplus

Earned surplus

Copyright © Evolable Asia Corp. All Rights Reserved.

26

Strengthening the Management Structure

Strengthen the management structure by establishingnew business divisions

BTM division

Investment divisionetc

Copyright © Evolable Asia Corp. All Rights Reserved.

27

Medium-term Vision

Achievement of handling volume of 100 billion one year
ahead of the plan
Change in consolidated trading
volume (billions of yen)

1,200
•

1,000

Acceleration of growth of the travel business by

1,000

investment in AirTrip

800600•Phase for collection of returns from investment businesses•

Stable growth of IT offshore, BTM and other stocks•

Securing profits from new businesses such as campers

700and money exchange

401

400
200
1741871001071401532062770FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20Copyright © Evolable Asia Corp. All Rights Reserved.

28

Profile of Full-time Directors
Representative Director and President Hideki Yoshimura Born in 1982,
graduated from the University of Tokyo
Founded Kabushiki Kaisha Valcom while a college student/in 2007, jointly founded
Kabushiki Kaisha Tabi Capital. Took the office of Representative Director andPresident of our company

Director and Chairman Munenori Oishi Born in 1972, graduated fromMeiji University
Founded Kabushiki Kaisha IVT while a college student/in 2007, jointly
founded Kabushiki Kaisha Tabi Capital
Took the office of Director and Chairman of our company

Director and CFO
Yusuke Shibata

Born in 1982, graduated from The University of Tokyo
In charge of control of the administrative department
Certified public accountant, seconded to Deloitte Touche Tohmatsu LLC/thedepartment for review of subscription of Nomura Securities Co., Ltd.
Took the office of director of our company in 2015

Director and CMOToru Matsunami

Born in 1972, graduated from Tokyo Metropolitan University
In charge of control of the marketing solution office/manager responsible for Yahoo!
travel business of Yahoo Japan Corporation/executive manager for the travelindustry of Google advertising headquarters/in 2015, took the office of director ofour company

Director O Shin

Born in 1987, graduated from Keio University
General manager of the management planning office/consulting fortransfer pricing strategy of Deloitte Tohmatsu Tax Co./advisory forinternational business of KPMG/in 2016, took the office of director ourcompany
Copyright © Evolable Asia Corp. All Rights Reserved.

29Disclaimer

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 andunknown risks, uncertainties, and other factors may result in differences from the statements included in assertions related toforward-looking statements.
The Company’s actual future business and operating performance may differ from the forward-looking statements containedin 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.

Copyright © Evolable Asia Corp. All Rights Reserved.

Evolable Asia Corp.
19th Fl. Atago Green Hills Mori Tower, 2-5-1 Atago, Minato-ku, Tokyo
105-6219
Phone. +81-3-3431-6191