For the Fiscal Year Ended
September 30, 2018

Results ofOperations
Evolable Asia Corp.
TSE 1st Section: 6191
November 13, 2018

Highlights

1

FY ended Sep. 2018: Sales increased significantly and profit growth was secured.

2

FY ending Sep. 2019: Aim for substantial sales growth and handling volume of above
150 billion yen and maintain profit growth.

3Large-scale promotion using TV ads and other media:
Already the leading air ticket seller, but aim for a dominant position

4

Implemented a subsidiary stock listing project5

Successful post-merger integration of acquired companies: Launched an investment
renewal business

Copyright © Evolable Asia Corp. All Rights Reserved.

1

Financial Summary

Copyright © Evolable Asia Corp. All Rights Reserved.

2

Highlights

Significant sales growth thanks to the contribution of AirTrip promotion andM&A effect

Upward revision of full-year net sales forecast: 225%

Profit growth led by post-merger integration and investment business:
Secured profit growth while making active investment in promotion

Copyright © Evolable Asia Corp. All Rights Reserved.

3

Upward Revision of Full-year Financial Forecasts and ProgressUpward revision of consolidated net sales forecast:
Reached the net profit target(million yen)
Initial Business Forecast
for Fiscal Year Ending
September 2018
Amount% to Sales

Upward Revision 1
Aug. 9Upward Revision 2
Nov. 12AmountAmount% to Sales

Changefrom Initial
Forecast% to Sales

Handling
Volume70,000Net Sales

7,050

100.0%

11,000100.0%

12,447100.0%+5,397

Operating
Income

1,500

21.2%

1,500

13.6%

1,210

9.7%

-290

Profit

881

12.5%

881

8.0%

915

7.3%

+34

85,00083,166

Copyright © Evolable Asia Corp. All Rights Reserved.

+13,166

4Changes in Handling Volume

Handling volume: 207% Full-year handling volume forecast wasraised to 83.1 billion yen
Handling volume(hundred million yen)

831

900
AirTrip effect800

Existing business

700
600

474

500
400
400

157

200
100

263

261

300

127

72

0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

Copyright © Evolable Asia Corp. All Rights Reserved.

18.2Q

18.3Q

18.4Q
5

Changes in Net Sales

Upward revision of full-year net sales forecast 224%
Full-year net sales forecast was raised to 12,447 million yen
Consolidated net sales (million yen)

12,447

14,00012,000

AirTrip effectExisting business

10,000
8,000
5,533

6,000

3,968

4,000
2,000

6,340
3,458

2,498

1,630

1,202

0
17.1Q

17.2Q

17.3Q

17.4Q

18.1Q

Copyright © Evolable Asia Corp. All Rights Reserved.

18.2Q

18.3Q

18.4Q
6

Changes in Operating Income

Secured profit growth while making active investment
for future growth

Consolidated operating income(million yen)

1,210

2,000
Strategic investment

Existing business

1,037

1,500
808

1,008
1,000

1,804
581500

385

134

198

0-594-500-1,000

17.1Q

17.2Q

17.3Q

17.4Q18.1Q

Copyright © Evolable Asia Corp. All Rights Reserved.

18.2Q

18.3Q

18.4Q
7

Statement of Income

Achieved significant sales growth through active investment andsecured profit growth(million yen)
FY9/2017
AmountFY9/2018% to Sales

AmountYoY Change% to Sales

Handling
Volume40,016Net Sales

5,533

100.0%

12,447100.0%

224.9%

Gross Profit

4,596

83.0%

6,811

54.7%

148.1%

Operating
Income

1,088

19.6%

1,210

9.7%

111.2%

Profit

708

12.7%

915

7.3%

129.2%

83,166

Copyright © Evolable Asia Corp. All Rights Reserved.

207.8%8Balance Sheet

Both assets and liabilities increased
due to the acquisition of DeNA Travel(million yen)

End of FY2017

End of FY2018

YoY Change

Current Assets

5,396

15,228+9,832

Cash and Deposits

2,054

5,370+3,316

Operational investment
securities

1,520

3,869+2,349

Non-current Assets

2,491

9,695

+7,204

Total Assets

7,888

24,923+17,035

Liabilities

4,488

19,407+14,919

Interest-bearing Debts

1,405

10,770+9,365

Net Assets

3,400

5,515+2,115

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

3,002

5,134

+2,132

37,9%

20.6%

-17.3

Copyright © Evolable Asia Corp. All Rights Reserved.

9

Topics

Copyright © Evolable Asia Corp. All Rights Reserved.

10

AirTrip: New TVCM

Hired Robert Akiyama as the new face of AirTrip
The new TV ad will start airing in late November.

Copyright © Evolable Asia Corp. All Rights Reserved.

11

AirTrip: Website Integration

Website integration of AirTrip and former DeNA travel
Services became mutually available to existing members.

On a mobile phone

On a PC
Copyright © Evolable Asia Corp. All Rights Reserved.

12

AirTrip: Results of Branding

Search trend ranking rose as a result of promotion
such as TV ads

AirTrip
websiteSecure a large searchvolume during thesummer high season

January 2018

October 2018
Copyright © Evolable Asia Corp. All Rights Reserved.

13

Online Travel Agency Business: Partnership with LINE Corporation

Started providing LINE Travel.jp with domestic airline tickets

domestic airlinetickets

Copyright © Evolable Asia Corp. All Rights Reserved.

14

Online Travel Agency Business: Partnership with NAVITIME

Started providing NAVITIME Travel with international airline tickets
Further market expansion in addition to domestic airline tickets already provided

Domestic airticket API
partnership

International airticket API
partnership

Available in 6 languages
Copyright © Evolable Asia Corp. All Rights Reserved.

15

Online Travel Agency Business: Partnership with Bank, Inc

Providing TRAVEL Now with domestic air tickets
Further market expansion in addition to package tours
Package
Tours

18/6

Domestic
AirlineTickets

Start to selldomestic air tickets
Copyright © Evolable Asia Corp. All Rights Reserved.

16

Online Travel Agency Business: Number of BTM Clients

Increase in customers accelerated after the acquisition of DeNA Travel(No. of corporate customers)

AirTrip BTM

Increase due to acquisitionof DeNA Travel

2,906
2,815

AirTrip
corporate customer desk
customer websites
1,097
544

572

619

16.1Q

16.2Q

16.3Q

667

722

782

16.4Q

17.1Q

17.2Q

17.3Q

1,152

1,207

17.4Q

18.1Q

Copyright © Evolable Asia Corp. All Rights Reserved.

1,273

18.2Q

18.3Q

18.4Q

17

IT Offshore Development Business: Business Progress

Steady progress, including the group companies
New orders received: 8 companies

About 1,000 persons

20142015201620172018

Number of engineers: about 1,000 persons
Stable growth due to the needs
for engineers in the upstream

from the previous fiscal year

Copyright © Evolable Asia Corp. All Rights Reserved.

and 6 other companies
18IT Offshore Development Business: Group Expansion

Made Kayac Hanoi a subsidiary

Strengthened the game, VR, and 3D segment
Copyright © Evolable Asia Corp. All Rights Reserved.

19

Investment Businesses: Results of Investments

Strengthening of investment development:
49 companies; total investment amount: 1.9 billion yen* As of November 2018etc

Copyright © Evolable Asia Corp. All Rights Reserved.

20

Investment Businesses: Investment Performance

Approval for the listing of PIALA shares as the 2nd IPO

ListingSale

Increase in value+ 1 companies+ 10 companies* Listing is scheduled for
December 11, 2018.
Copyright © Evolable Asia Corp. All Rights Reserved.

21

Financial Forecasts andManagement Strategies

Copyright © Evolable Asia Corp. All Rights Reserved.

22

Earnings Forecasts and Expected Dividends

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

FY18

FY19
ForecastHandling
Volume40,00183,166

Notdisclosed

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 growth through active
investment

Secure profit growth while making
investment

Keep the dividend payout ratio at the
20% level

Copyright © Evolable Asia Corp. All Rights Reserved.

23

Vision of Handling Volume

Handling volume of more than 150 billion yen:
substantial increase

Handling volume(hundred million yen)More than 150billion yen

1,800
1,600

AirTrip effectExisting business

1,400
1,200831

1,000
800
6004034002761787541100

FY07

FY08

FY09

FY10

FY11200107140153

FY12

FY13

FY14206

0
FY15Copyright © Evolable Asia Corp. All Rights Reserved.

FY16

FY17

FY18

FY19
Forecast
24

Vision of Investment and Profit

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

8,000

X3

Strategic investment
Existing business

7,000

Achieve profit growth
while making investment

6,000

X2Y3

Y2

5,000
X1Y1

4,000

1,210

3,000
2,000
1,0001,008
3121,804

X1X2X-594-Y1-Y2-Y3

990-1,000-2,000

Control investment andachieve high profit growth-3,000

FY15

FY16

FY17

FY18

FY19
Forecast

Copyright © Evolable Asia Corp. All Rights Reserved.

FY20
Forecast

FY21
Forecast
25

AirTrip: Marketing Strategy

Large-scale promotion using TV ads and other media
From the leading air ticket seller to the dominantly top seller

TVCM

SNSCopyright © Evolable Asia Corp. All Rights Reserved.

OOH

26

Implementation of Subsidiary Stock Listing ProjectCurrently implementing IPO of 3 subsidiaries

Inbound Platform Corp.
Operating a business targeting foreign visitors to Japan, including camper car rental,
money exchange, and Wi-Fi device rental

MagmagOperating an established eMagmag
businesses such as MAG2NEWS and TRiP EDiTOR

Evolable Asia Solutions
All-Vietnamese staff operating an IT development solution business
Providing upstream process such as planning and design to one-stop, high quality
services including upstream process such as planning and design
Copyright © Evolable Asia Corp. All Rights Reserved.

27

M&A: Effect of Post-merger Integration

Performance of acquired companies improved
through post-merger integration

Large increase of 221% inoperating income*••••

Launch of TRiP EDiTOR
Cooperation of e-mail magazine
authors and advertising in sales
activities
Management rationalization
System development support* Comparison between 12 months
before and after the merger

Large increase of 273% inoperating income*••••

System and UI modification
Improvement of SEO and SEM
Increased operation efficiency
Merger with El Monte andExchange to aim for IPO

Successfully turned a profit
4 months after the merger••••

Integration as AirTrip brandService integration
Member integration
Management rationalization* Comparison between 12 months
before and after the merger
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28

New Business: Renewal Business

Launched investment renewal business:
will operate two core businesses, CVC and renewal

Corporate Venture Capitalbusiness

Invest & Turnaround business

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29

Shareholder Returns: Dividend Policy

Dividend payout ratio of approx. 20% will continue
to be applied for FY9/2019.
FY9/2017

FY9/2018

Dividend forecast forFY9/2019

Record date

September 30, 2017

September 30, 2018

September 30, 2019

Dividend pershare7 yen

10 yenTotal dividends
paid

117 million yen

177 million yen

Effective date

September 30, 2017

September 30, 2018

September 30, 2019

Source ofdividends

Earned surplus

Earned surplus

Earned surplus

Copyright © Evolable Asia Corp. All Rights Reserved.

Maintain the dividend
payout ratio of FY ended
September 201830

Shareholder Returns: Shareholder Benefit Program

Maintain the shareholder benefit program based on a point system

Number of shares held

Number of points awardedin the first year

Number of points awarded after holding
shares for one year or more (note)

More thanLess than

500

600

8,000 points

8,800 points

600

700

11,000 points

12,100 points

700

900

13,000 points

14,300 points

900

1000

16,000 points

17,600 points

1000

2000

18,000 points

19,800 points

2000

5000

20,000 points

22,000 points

25,000 points

27,500 points

5000

Note: Shareholding of one year or more: listed in the share register as of September 30 or March 31 two consecutive times or more under the same shareholder
numberCopyright © Evolable Asia Corp. All Rights Reserved.

31Summary

1

FY ended Sep. 2018: Sales increased significantly and profit growth was secured.

2

FY ending Sep. 2019: Aim for substantial sales growth and handling volume of above
150 billion yen and maintain profit growth.

3Large-scale promotion using TV ads and other media:
Already the leading air ticket seller, but aim for a dominant position

4

Implemented a subsidiary stock listing project5

Successful post-merger integration of acquired companies: Launched an investment
renewal business

Copyright © Evolable Asia Corp. All Rights Reserved.

32

Appendix

Copyright © Evolable Asia Corp. All Rights Reserved.

33

Business Overview

Online Travel Agency

IT Offshore Development

Inbound Travel

Investment

Copyright © Evolable Asia Corp. All Rights Reserved.

34

Overview of EVOLABLE ASIA Group

95.3%

100%100%100%

65%100%96%

51%*Former DeNA Travel61%

100%100%100%

Copyright © Evolable Asia Corp. All Rights Reserved.

66%

100%100%

Application of IFRS

(millions of yen)
FY9/2018
Japanese standards (Ref.)

FY9/2018
IFRS
Difference

AmountAmount% to Sales% to Sales

Handling Volume

83,152–83,166–+14

Sales Revenue

12,437100.0%12,447

100.0%+10Gross Profit

6,900

55.4%

6,811

54.7%

-89

Operating
Income-587

–

1,210

9.7%

+1,797

Profit-463

–

915

7.3%

+1,3787, Evolable Asia Corp. has been
applying the IFRS in lieu of the conventional Japanese accounting standards to its consolidated financial statements beginning with the full-year results for the fiscal year
ended September 2018 announced on November 13, 2018.
The report of financial results released on November 13, 2018, is not subject to audits performed by an audit corporation. Evolable Asia Corp. plans to releaseconsolidated financial statements with an audit opinion attached in the consolidated financial report or securities report scheduled to be released in December 2018.
Copyright © Evolable Asia Corp. All Rights Reserved.

36

•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 differences fromthe 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.

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