For the Third Quarter of the Fiscal
Year Ending September 30, 2018

Results ofOperations
Evolable Asia Corp.
TSE 1st Section: 6191
August 14, 2018

Highlights

Full-year consolidated handling volume and net sales forecasts were revised
upwardConsolidated operating income: strong growth of 178% YoY, satisfactory
progress over the full-year forecast

Post-merger integration of AirTrip (previously DeNA Travel) progressed well

Major news releases were issued recently.

Copyright © Evolable Asia Corp. All Rights Reserved.

Revision of Full-Year Business Forecasts

Consolidated net sales forecast was revised upward from 7
billion yen to 11 billion yen (+56%)(million yen)

Initial Business Forecast for Fiscal
Year Ending September 2018 IFRS
AmountRevised Business Forecast forFiscal Year Ending September 2018IFRS
Amount% to Sales

YoY Change% to Sales

Handling
Volume70,000–85,000–+15,000

Net Sales

7,050

100.0%

11,000100.0%+3,950Operating
Income

1,500

21.2%

1,500

13.6%

–

Profit

881

12.5%

881

8.0%

–

Copyright © Evolable Asia Corp. All Rights Reserved.

Financial Summary

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Changes in Handling VolumeHandling volume: 181% year on year

Full-year handling volume forecast was raised to 85 billion yen
Actuals for the fiscal year ended September 2017

(hundred million yen)

Actuals for the fiscal year ending September 2018
900
800
700
600
500
400
300
200
100
0850

474
400
263
72

127

1Q

261

157

2Q

3Q

* According to IFRS (non-audited)
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4Q

Changes in Net Sales

Net sales: 159% year on year
Full-year net sales forecast was raised to 11 billion yen
Actuals for the fiscal year ended September 2017
(million yen)

Actuals for the fiscal year ending September 2018
12,00011,00010,000
8,000

6,340

6,000
3,458

4,000
2,000

5,534

3,968

2,498
1,202

1,630

01Q

2Q

* According to IFRS (non-audited)
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3Q

4Q

Changes in Operating Income

Operating income: 178% year on year
satisfactory progress over the full-year forecast
Actuals for the fiscal year ended September 2017

(million yen)

Actuals for the fiscal year ending September 2018
1,600

1,500

1,400
1,200

1,037

1,000

808

800

581

6004002001,008

385
198

13401Q

2Q* According to IFRS (non-audited)
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3Q

4Q

Statement of Income

Both sales and profits grew steadily(million yen)

17.3Q
Amount18.3Q*
Amount% to Sales

YoY Change% to Sales

Handling
Volume26,114–47,406–181.5%Net Sales

3,968

100.0%

6,340

100.0%

159.7%

Gross Profit

3,332

83.9%

3,980

62.7%

119.4%

Operating
Income

581

14.6%

1,037

16.3%

178.4%

Profit

553

13.9%

716

11.3%

129.4%* According to IFRS (non-audited)
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Changes in Results by Segment

Overall profit grew while promoting investment in theonline travel agency business
FY17.3Q
JapaneseGAAP

Online Travel AgencyBusiness
IT Offshore
Development Business

838
124

Investment Business

FY18.3Q
IFRS

YoY
Change-178-1,016135+111,422+1,422

Expenses of all thebusiness of theCompany-382-342+40

Operating Income

581

1,037+456

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Profits gained by theinvestment business wereappropriated to growthinvestment for AirTrip

Difference from GAAPOperating Income (million yen)
1,200
1,000

Profits frominvestment(listed)
+858

800
600
400

Profits from Amortization ofgoodwill
investment+174(not listed)
+488

200

0-200-400-600

J-GAAP-449
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IFRS
1,037
Others-34

Balance Sheet

Both assets and liabilities increased due to theacquisition of DeNA Travel(million yen)
End of FY2017

18.3Q

YoY Change

Current Assets

5,158

14,481+9,323

Cash and Deposits

2,139

4,641+2,502

Operational investment
securities

1,100

2,632+1,532

Non-current Assets

2,320

8,420+6,100

Total Assets

7,547

22,901+15,354

Liabilities

4,252

18,450+14,198

Interest-bearing Debts

1,400

9,775+8,375

Net Assets

3,294

4,450+1,156

Shareholders’ Equity

2,841

4,078+1,237

Equity ratio

37.2%

17.8%

-19.4

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Topics

Copyright © Evolable Asia Corp. All Rights Reserved.

AirTrip: Renewal

New product categories were added to create an integrated travelingservice platform
Shinkansen
Car Hire
対象外

HotelLuxury Ryokan
Activity

Seven new product categories
were added
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Domestic TourInternational Flight Ticket + HotelAirTrip: Results of Branding

Increase the recognition of the brand AirTrip throughtelevision commercials and other media
100

Searches with “Airtrip” as the keyword
75

50

25

2017/8

2018/7

Source: Google Trends
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Online Travel Agency Business: Partnership with Expedia

Start of partnership with Expedia Japan for the sale ofdomestic airline tickets
Domestic
Airline Tickets

Expedia, world’s largest OTA based on
handling volume
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Online Travel Agency Business: Partnership with Bank

Provision of travel products to “TRAVEL Now”
Planning in collaboration with Bank, Inc., which operates “CASH”

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Online Travel Agency Business: Number of BTM Clients

The number of BTM clients increased sharply due to acquisitionof DeNA Travel
No. of corporate customers
Name changed from TABI Pro-BTM to AirTrip BTM

Increase due to acquisition ofDeNA Travel

2,815

AirTrip BTM
1,097

544

572

619

16.1Q

16.2Q

16.3Q

667722

782

16.4Q

17.1Q

17.2Q

17.3Q

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1,152

1,207

17.4Q

18.1Q

1,273

18.2Q

18.3Q

Online Travel Agency Business: Business Partnership with Concur for Provision of BTM Services

Business partnership with Concur, the world’s leading provider oftravel, expense and invoice management solutions
To increase recognition of AirTrip BTM and acquire new customers

AirTrip BTM
Partnership forprovision of businesstrip solutions
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Inbound Travel Business: Inbound Platform Corp.

Merger of subsidiaries engaged in inbound-related business
Aim to list newly formed subsidiary which was renamed Inbound Platform Corp.

OEMInbound Platform Corp.
Minpaku
MinpakuCamper rental

MergerMoneyMonge
Exchange
WIFI

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foreign visitors

Inbound Travel Business:Capital and Business Alliance with Airbnb

Capital participation in subsidiary AirTrip Stay by Airbnb, the world’s
largest private accommodation provider

Subsidiary

Commitment through capital
participation

AirTrip Stay
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IT Offshore Development Business: Business Progress

Steady progress, including the group companies
New orders received: 10 companies

About 950 persons

2014

2015

2016

2017

2018

Number of engineers: about 950 persons
Stable growth due to the needs
for engineers in the upstream
process of “Evolable AsiaSolutions,” which continued fromthe previous fiscal year
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and eight other companies

Investment Businesses: Results of Investments

Strengthening of investment development:
41 companies; total investment amount: 1.7 billion yen* As of August 2018

Aiming for an increase in corporate
value such as IPOReturns

Investment anddevelopment

etc
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Investment Businesses: Investment Performance

Partial exit through sale of hachidori shares

ListingSale

Increase in value+ 5 companies
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M&A

AirTrip PMI Results

Both revenue and costs improved as a result of integration
Integration of operations

Brand integration◼ Consolidation of operations◼ Optimization of allocation ofhuman resources andorganizations◼ Unification of company and services
under “AirTrip” name◼ Integration of marketing including TVcommercials◼ Referral of customers between theservices of both companies

Cost reductions

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◼ Review of transaction terms andconditions including various typesof commission◼ Withdrawal from unprofitablebusinessFinancial Strategy: Stock Acquisition Rights

Conditions of stock acquisition rights were changed to increase
fundraising flexibility
Cancellation of 9th stock acquisition rights
Exercise
3,500 yen
priceCall Option

Plannedfinancing 2 billion yen
amountCall Option

Cancellation of 10th stock acquisition rights
Exercise
4,500 yen
priceCall Option

New issuance of 13th stockacquisition rights

Plannedfinancing 3 billion yen
amountCopyright © Evolable Asia Corp. All Rights Reserved.

◼ Plan to raise around 5 billion yen◼ Aimed at increasing fundraisingflexibility◼ Allotment: Merrill Lynch Japan
Securities Company, Limited

Trend of Business Results (Handling Volume, Operating Income)Handling Volume (hundred million yen)

Operating Income (million yen)

1800
1600
1500

1400

Listed on 1st
Section of TSE

12001008

1000

850

800
600
400

1,500

Ranked No. 1
based ondomestic flighthandling
volume*1

Foundation ofEA

Listed on TSEMothers
Launched
Investment
BusinessRanked No.1
Japanese IT
Offshore
DevelopmentCompanyLaunched IT
Offshore
Development
Business

403.9276.8
206.4

2005.9

17.6

41.7

87.2

100.3

FY0814080

153.72531299200

FY07107.2

Acquisition ofAirTrip
previouslyDeNA Travel)

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

* Accounting*Accounting
period: 11 months period: 6 months(*1) No. 1 OTA (According to a survey undertaken by the Company) (*2) As of September 2014

Nikkei Sangyo Shimbun, August 26, 2014

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FY18FY19(計画)(Plan)

Medium- to Long-term Vision

To become the second-ranked general OTA in the industry(*1)
with a handling volume of 140 billion yen in total
Aim for a handling volume of 200 billion yen
The largest OTA
in domestic air tickets(*2)

The largest OTA in overseas
air tickets and foreign travel(*2)

Fiscal year ending September 30, 2018

Fiscal year ending March 31, 2018

Estimated handling volume: 70 billion

Handling volume: 70 billion*1 According to a survey undertaken by the Company; in the Japanese general OTA industry*2 According to a survey undertaken by the Company
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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 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