Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending September 30, 2020 (FY9/20)(Three Months Ended December 31, 2019) [IFRS]
February 14, 2020
Stock Exchange
Company name:
AirTrip Corp.
TSE
Listing:
Stock code:
6191
URL http://www.evolableasia.com
Representative:
Yusuke Shibata, Representative Director, President and CFO
Contact:
Yusuke Shibata, Representative Director, President and CFO
TEL: +81–(0)3–3431–6191
Scheduled date of filing of Quarterly
Scheduled date of payment of
February 14, 2020－
Report:dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results briefing: Yes (for institutional investors and securities analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (October 1, 2019 to December 31, 2019) of FY9/20(1) Consolidated results of operations(Percentages represent year–on–year changes.)
OperatingincomeNet sales

Three months ended Dec.
31, 2019
Three months ended Dec.
31, 2018

Profit before
income taxes

Total
comprehensive
incomeMillions%%of yenProfit attributable toowners of parent

ProfitMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen

7,980

68.5

800

―

748

―

669

―

692

―

668

―

4,735

191.5

△183

―

△204

―

△150

―

△201

―

△160

―

Profit per share
Three months ended Dec. 31, 2019
Three months ended Dec. 31, 2018

Fully diluted profit per share
Yen

Yen

34.95
△11.3034.30△11.30Total equity

Equity attributable toowners of parent(2) Consolidated financial position
Total assets

Ratio of equity attributableto owners of parent

Millions of yen

Millions of yen

Millions of yen%

36,894
31,216

11,055
10,101

10,711
9,719

29.0
31.1

As of Dec. 31, 2019
As of Sep. 30, 2019

2. Dividends
Dividend per share
1Q–end2Q–endYen

3Q–endYear–end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Sep. 30, 2019―
0.00
Fiscal year ending Sep. 30, 2020―
Fiscal year ending Sep. 30, 2020 (Estimated)
0.00
Note: Revision to the most recently announced dividend forecast: None

―

10.00

10.00

―

13.00

13.00

3. Full-year consolidated financial forecast for FY9/20 (October 1, 2019 – September 30, 2020)(Percentages represent year-on-year changes.)
Net sales

Twelve months ending
September 30, 2020

Millionsof yen38,000

Profit before
Operating income
income taxes
Millions
Millions%of yen%of yen
%
56.3

2,000

194.0

―1―

1,900

222.9

Profit attributable toowners of parent
Millionsof yen
%
1,300

77.1

Profit per share
Yen
65.65

* Notes(1) Changes in significant subsidiaries during the period (changes in specified

:

None

subsidiaries resulting in changes in scope of consolidation)
Newly included:– companies

Excluded:– companies(2) Changes in accounting policies and accounting–based estimates, and restatements
1) Change of the accounting policy required under IFRS:Yes2) Changes in accounting policies other than (i) above

:

None

3) Changes in accounting–based estimates

:

None

(3) Numbers of outstanding shares (common stock)1) Number of shares outstanding as of the end of the

As of Dec. 31, 201920,103,600

As of Dec. 31, 201818,141,500

2) Number of treasury shares as of the end of the period

As of Dec. 31, 201935

As of Dec. 31, 2018―

3) Average number of shares issued during the period

Three months ended

period (including treasury shares)Three months ended
19,805,495

Dec. 31, 201917,859,635
Dec. 31, 2018

* The current quarterly financial report is exempt from the quarterly review procedures performed by certified public accountants or
audit corporations.
* Explanation of appropriate use of earnings forecasts, and other special items
The full-year forecast for the fiscal year ending September 30, 2020, above includes the Company’s forecast based on plans for theyear, as well as assumptions and predictions regarding the Company’s future as of the day these materials have been made public. Items
concerning the future of the Company are based on information currently in the Company’s possession and certain assumptions judged
to be rational. They do not represent a firm commitment by the Company. The forecast may differ greatly from financial results due to anumber of causes over the year, including changes in economic conditions, changes in client needs and user tastes, competition withother companies, changes to laws and regulations, and changes in exchange rates―2―

○Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance ………………………………………...……4(1) Explanation of Results of Operations ……………………………………………………………………………………4(2) Explanation of Financial Position ………………………………………………………………………………………..5(3) Explanation of Consolidated Forecast and Other Forward-looking Statements …………………………………………5
2. Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements ………6
(1) Condensed Consolidated Statement of Financial Position ………………………………………………………………6(2) Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive Income ….7(3) Condensed Consolidated Statement of Changes in Equity ………………………………………………………………9(4) Condensed Consolidated Statement of Cash Flows …………………………………………………………………….10(5) Notes to Condensed Consolidated Financial Statements ……………………………………………………………….11(Notes on going concern assumptions) ……………………………………………………………………………..11(Changes in Accounting Policies) ………………………………………………………………………………..…11(Segment information, etc.) ………………………………………………………………………………………...13(Important subsequent events) …………………………………………………………………………………...…14―3―

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first three months of the fiscal year under review, the global economy maintained a robust performance, mainly driven byadvanced economies. However, the global economic outlook became increasingly uncertain amid trade tensions between the US andChina. The Japanese economy remained on a moderate recovery path, reflecting steady improvement in employment and income
conditions. The economy continued to expand at a solid pace, supported by increased domestic demand and inbound tourist demandagainst the background of the upcoming Tokyo Olympics in 2020 and EXPO 2025 in Osaka.
In the travel industry, the number of Japanese citizens who left Japan in the period from January to December 2019 totaled 20.08
million, increasing about 1.12 million from the same period of the previous fiscal year according to the statistics released by the Japan
National Tourism Organization (JNTO). In addition, the number of foreigners who visited Japan from January to December 2019
surpassed 31.88 million. The number is rising steadily toward 40 million, the target for 2020 set in the Tourism Vision to Support the
Future of Japan, which the Japanese government adopted in March 2016.
Under these conditions, the Company continued expanding its operations by seeking to diversify its service lines with a focus on salesof domestic airline tickets and international airline tickets as an online travel agency and significantly investing in advertising to raise
recognition of its main brand AirTrip. The Company also continued to enhance its services for foreign visitors to Japan, making the mostof its online travel business expertise.
In the IT Offshore Development Business, which was launched in 2012, the Company steadily won customers in numerous businesscategories and increased the number of engineers employed, focusing on the development of lab–type facilities in Vietnam. The numberof engineers hired grew to 1,000 as of the end of December 2019. In the Investment Business, which has been developing in earnest
since the stock was listed, the Company has been investing in growing companies. As of the end of December 2019, the Company has
invested in 62 companies.
In this business environment, during first three months of the fiscal year under review, the Group achieved consolidated net sales of
7,980 million yen, a consolidated operating income of 800 million yen, a consolidated profit before income taxes of 748 million yen,
and a consolidated profit attributable to owners of parent of 692 million yen.
Operating results by segment are as follows.
(1) Online Travel Agency Business
The Group offers the following five services in the Online Travel Agency Business segment.
・BtoC services (operation of PC and smartphone websites for selling travel commodities directly to general consumers)
The Company implemented measures such as conducting mass marketing strengthening SEM and overhauling its backbone systems
to acquire new customers and improving user interfaces to increase the number of repeat customers. These contributed to a steadyincrease in the number of service users.
The recognition of the Company’s brand AirTrip increased, and strategic pricing and the active input of branding costs were conductedto acquire customers.
・BtoBtoC services (travel content provision under brands owned by business partners)
The enhanced development of alliances with major partners, the provision of services to match the needs of major partners, andenhanced communication with partners contributed to an increase in service use. In addition, like the BtoC services, measures formarketing and alliances with an emphasis on increasing customer numbers were promoted.
・BTM services (centralized management of internal approval procedures and arrangements associated with corporate business trips)
These services basically adopt a business model under which net sales expand in a manner that is linked with an increase in the numberof corporate customers and a rise in their usage rate. The services achieved growth attributable to initiatives taken by the Group, including
the addition of salespeople and the identification of existing customers who used the services at a relatively low rate.
・Services for foreign visitors (business of providing various BtoC services to visitors to Japan)
The Company offers various services for foreign visitors to Japan, including Wi-FI rental, camping car rental, currency exchange andweb media serves. In every business line, net sales and income grew steadily due to an increase in visitors to Japan, multilingual customer
service and stronger marketing.

―4―

・Life innovation businesses and services
The Company is leveraging the knowledge of various travel-related services it has built up through its AirTrip brand to launch new
business lines aimed at improving convenience in many different aspects of customers’ lives. Current business lines include e-mailmagazines, the manufacture, sale and rental of travel carry cases, and the tea-processing business, and life innovation businesses andservices are expected to expand significantly in the future with the addition of one new service after another.
As a result of the factors stated above, net sales for the Online Travel Agency Business segment amounted to 7,402 million yen, andsegment loss came to 905 million yen in the first three months of the fiscal year under review.
(2) IT Offshore Development BusinessIn the IT Offshore Development Business segment, the Group offers lab-type facility development services to customers consisting
mainly of e-commerce operators, web solution providers, and game and system developers in Ho Chi Minh, Hanoi and Da Nang in
Vietnam.
The Company’s lab-type facility development model is distinctive in that a team is formed with new dedicated staff members hired
for each customer. The model also enables customers to confirm the state of lab-type facility development on demand. The Company
assumes the assignment of dedicated staff members to each team on a medium- to long-term basis. For that reason, the success or failureof development depends on employing workers suited to customer demands and motivating the respective engineers more.
In addition, these services basically adopt a business model under which customers are billed on the basis of man-months and thenumber of workers. The number of engineers supplied to clients and the man-months affect net sales for them significantly. An increasein the number of engineers and a rise in the unit cost due to development streamlining contributed to sales growth in the fiscal year underreview.
As a result of the factors stated above, net sales for the IT Offshore Development Business segment reached 507 million yen, andsegment income totaled 40 million yen.
(3) Investment BusinessIn the Investment Business segment, the Group emphasizes synergies with the existing businesses and expands service lines throughaggressive M&A and capital alliances. The Group is pursuing investment in growing companies to improve profitability. At the end of
the fiscal year under review, the Group had increased the number of companies in which it invests to 62
As a result, net sales for the Investment Business segment stood at 71 million yen, and segment income was 163 million yen.

(2) Explanation of Financial Position(Assets)
Total assets increased 5,678 million yen from the end of the previous fiscal year, to 36,894 million yen at the end of the first quarter
under review. This result was mainly due to an increase of 4,887 million yen in right-of-use assets and a rise of 1,450 million yen in
inventories, offsetting a decrease of 2,519 million yen in cash and cash equivalents.
(Liabilities)
Liabilities increased 4,724 million yen from the end of the previous fiscal year, to 25,839 million yen at the end of the first quarter
under review. This result primarily reflected an increase of 4,953 million yen in lease liabilities, which offset a decrease of 897 million
yen in operating payables and other payables.
(Net assets)
Net assets rose 954 million yen from the end of the previous fiscal year, to 11,055 million yen at the end of the first quarter underreview. This result was mainly attributable to a decrease in retained earnings of 657 million yen.

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The consolidated financial forecast is unchanged from the forecast disclosed in the most recent Consolidated Financial Results(November 14, 2019).

―5―2. Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(Millions of yen)First quarter of the fiscal year
under review(as of Dec. 31, 2019)

FY9/19(as of Sep. 30, 2019)
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable – trade and otherreceivables
Other financial assets
Inventories
Other current assets

8,997

6,477

5,239

4,671

4,606

5,002

428

1,879

868

1,758

20,14019,789

1,324

2,016

-

4,887

Goodwill

5,861

5,893

Intangible assets

2,501

2,596

Other financial assets

1,103

1,395

Other non–current assets

59

64

Deferred tax assets

226

252

Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets

Total non–current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating payables and other operating payables

11,075

17,10531,21636,894

4,414

3,517

Interest–bearing debt
Lease liabilities
Other financial liabilities

7,519
368

7,842
511
380

Accrued income taxes

189

164

Other current liabilities

3,224

2,854

Total current liabilities

15,717

15,270Non–current liabilities
Interest–bearing debt

5,111

5,765

Lease liabilities

-

4,441

Other financial liabilities

41

33

Provisions

85

96

Deferred tax liabilities

136

175

Other non-current liabilities

22

57

Total non-current liabilities

5,397

10,569Total liabilities
EquityCapital stock

21,11425,839

2,922

2,931

Capital surplus

4,175

4,497

Retained earnings

2,601

3,259

Treasury shares△0△0

Other items of equity

19

23

9,719

10,711

Total equity attributable to owners of parent
Non–controlling interests
Total equity
Total liabilities and equity

―6―

382

343

10,101

11,05531,21636,894

(2) Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive Income
Condensed Consolidated Statement of Income
For the Three-month Period(Millions of yen)Three months ended
December 31, 2018
(Oct. 1, 2018 – Dec. 31, 2018)
Net sales

Three months ended
December 31, 2019
(Oct. 1, 2019 – Dec. 31, 2019)

4,735

7,980

Cost of sales△1,988△5,019Gross profit

2,746

2,961

△3,023△3,125105

131

Selling, general and administrative expense
Share of loss (profit) of entities
Other income

9859

Other expenses

△21

△26

△183

800

Operating income (loss)
Finance income

25Finance costs

△24

△58

△204

748

Profit before income taxes (loss)

54

△79

Profit (loss)

△150

669

Profit attributable to
Owners of parent

△201

692

Corporate income tax expenses

51

△23

△150

669

Profit (loss) per share (Yen)△11.3034.95

Fully diluted profit (loss) per share (Yen)△11.3034.30

Non-controlling interests

Profit per share―7―

Condensed Consolidated Statement of Comprehensive Income
For the Three-month Period(Millions of yen)Three months ended
December 31, 2018
(Oct. 1, 2018 – Dec. 31, 2018)

Three months ended
December 31, 2019
(Oct. 1, 2019 – Dec. 31, 2019)

△150

669

△8

△0

△0

△0

Total of items that may be reclassified as profit
or loss△9△0Total of other comprehensive income, net of tax

△9

△0

△160

668

△207

691

46

△23

Profit (loss)
Other comprehensive income, net of tax
Items that may be reclassified as profit or loss
Translation adjustments
operations
Cash flow hedge

offoreignComprehensive income
Comprehensive income attributable to
Owners of parent
Non–controlling interests―8―(3) Condensed Consolidated Statement of Changes in Equity
Three months ended December 31, 2018 (Oct. 1, 2018 – Dec. 31, 2018)(Millions of yen)
Equity attributable to owners of parent

As of October 1, 2018

Capitalstock

CapitalsurplusRetainedearnings

Other items ofequityTreasuryshares

Total

Noncontrollinginterests

Total equity

1,100

2,117

1,865

5

－

5,089

380

5,470

Profit (loss)

－

－

△201

－

－

△201

51

△150

Other comprehensive income

－

－

－

△5

－

△5

△4

△9

Total comprehensive income

－

－

△201

△5

－

△207

46

△160

Dividends of surplus

－

△177

－

－

－

△177

－

△177

Issuance of new shares

403

403

－

－

－

807

－

807

Increase (decrease) throughtransfers and other changes

－

7

△0

4

－

11

△3

8

Total transactions with owners
As of December 1, 2018

403

233

△0

4

－

642

△3

638

1,504

2,350

1,664

5

－

5,524

423

5,948

Three months ended December 31, 2019 (Oct. 1, 2019 – Dec. 31, 2019)(Millions of yen)
Equity attributable to owners of parent

Noncontrollinginterests

Total equity

9,719

382

10,101

-

△34

△18

△52

19

△0

9,684

363

10,048

692

-

-

692

△23

669

-

-

△0

-

△0

△0

△0

-

-

692

△0

-

691

△23

668

Dividends of surplus

-

△198

-

-

-

△198

-

△198

Issuance of new shares

8

8

-

-

-

17

-

17

Increase (decrease) throughtransfers and other changes

-

-

△0

4

-

4

3

7

Increase (decrease) by shareexchanges

-

510

-

-

-

510

-

510

8

321

△0

4

-

334

3

338

2,931

4,497

3,259

23

△0

10,711

343

11,055

Capitalstock

CapitalsurplusRetainedearnings

Other items ofequityTreasuryshares

2,922

4,175

2,601

19

△0

-

-

△34

-

2,922

4,175

2,567

Profit (loss)--

Other comprehensive income-

As of October 1, 2019
Adjustment for changes inaccounting policies
Balance after retrospective
restatement

Total comprehensive income

Total transactions with owners
As of December 1, 2019

―9―

Total

(4) Consolidated Statement of Cash Flows(Millions of yen)Three months ended
Three months ended
December 31, 2018
December 31, 2019
(Oct. 1, 2018 – Dec. 31, 2018) (Oct. 1, 2019 – Dec. 31, 2019)
Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization expense
Investment income (loss)
Negative goodwill

△204
211
△105
-

748
378
△131
△705

(Increase) decrease in trade and other receivables

429

878

Decrease (increase) in inventories

19

△122

Increase (decrease) in trade and other payables△851△1,392

Decrease (increase) in advance payments - trade

△52

△576

8

△177

△144
301
△388
2
△25
△44
△456

△122
△80
△1,3035△47△200△1,545

△343
△38
81

△67
△257
1

-

504

-

△150

△111
△412

19
50

1,035

△349

Decrease (increase) in guarantee deposits
Decrease (increase) in investment securities for sale
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Purchase of intangible assets
Payments for lease deposits
Collection of lease deposits
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for transfer of business
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short–term loans payable
Proceeds from long–term loans payable

700-

Repayments of long–term loans payable

△681

△319

Proceeds from issuance of common shares

797

-

-

△121

△166

△189

Repayments of lease obligations
Dividends paid to owners of the parent company
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

―10―

△2

14

1,683

△966

△6

9

808
5,320

△2,451
8,997

-

△68

6,128

6,477

(5) Notes to Condensed Consolidated Financial Statements(Notes on going concern assumptions)Not applicable.
（Changes in Accounting Policies）
Application of IFRS 16 Leases
The Group applied IFRS 16 Leases (issued in January 2016) (hereinafter referred to as “IFRS 16”) starting from the first
three months of the consolidated fiscal year under review. On applying IFRS 16, the Group chose the method of recognizing
the cumulative effect of application of the standard at the date of initial application (October 1, 2019), which is permitted undertransition provisions, and not retrospectively restating comparative information.
Definition of lease(i)

As a result of the application of IFRS 16, at the inception of a contract, the Group assesses whether the contract is, or
contains, a lease. A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a periodof time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group considers whether acontract includes use of an identified asset, whether the Group has the right to obtain substantially all of the economic benefits
from the use of the asset throughout the period of use, and whether the Group has the right to direct use of the asset.
(ii)

Accounting for leases
Leases as lessee
At the commencement of the lease, with respect to the lease components of leases except for short-term leases and low
value asset leases, the Group recognizes a right-of-use asset and the related lease liability. At the commencement date, theGroup measures the right-of-use asset at cost and measures the lease liability at the present value of the lease payments thatare not paid at that date.
The cost of the right-of-use asset consists of the amount of the initial measurement of the lease liability, any initial direct
costs, any lease payments made before the commencement date and other adjustments. The discount rate used to determine
the present value of leases payment is the interest rate implicit in the lease, if that rate can be readily determined, and if thatrate cannot be readily determined, the Group uses the Group’s incremental borrowing rate
The lease term is the noncancellable period of the lease including the period covered by the option to extend the lease(when the Group is reasonably certain to exercise an option to extend the lease) and the period covered by the option toterminate the lease (when the Group is reasonably certain not to exercise the option to terminate the lease).
After the commencement date, the right-of-use asset is measured at cost less accumulated depreciation and impairment
losses. When depreciating right of use assets, the Group applies the depreciation requirements in IAS 16 Property, Plant
and Equipment. The Group also applies IAS 36 Impairment of Assets when assessing whether to depreciate right-of-use
assets and when accounting for identified impairment losses.
If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the Group isreasonably certain to exercise the lessee’s purchase option, the Group depreciates the right-of-use asset from thecommencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use
asset by the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use
asset or the end of the lease term.
After the commencement date, the Group measures the lease liability by increasing the carrying amount to reflect intereston the lease liability and reduces the carrying amount to reflect the lease payments made. The Group also remeasures the
carrying amount to reflect any fluctuation of lease payments or lease modifications or to reflect revised in-substance fixedlease payments.
The Group expenses lease payments related to short-term leases and low value leases by the straight-line method.

―11―

Accounting on transition
On applying IFRS 16, the Group applies the practical expedient that does not require it to reassess whether existing
contracts contain a lease. Accordingly, assessment of leases in accordance with the definition of a lease under IFRS 16
applies only to contracts concluded or amended on or after October 1, 2019.
Leases as lessee(Leases classified as an operating lease under IAS 17)
A lease liability at transition is measured at present value of the remaining lease payments as of the transition datediscounted at the Group’s incremental borrowing rate as of October 1, 2019. A right-of-use asset at transition is measured
by one of the methods shown below:
・carrying value as if IFRS 16 had always been in place calculated from lease commencement; provided, however, thatthe discount rate is the lessee’s incremental borrowing rate as of the date of initial application; or・set equal to the lease liability, adjusted for any prepaid or accrued lease payments.
When applying IFRS 16 to leases previously classified as operating leases under IAS 17, the Group applies the practical
expedients shown below:
・apply a single discount rate to a portfolio of leases with reasonably similar characteristics;
・account for leases for which the lease term ends within 12 months of the date of initial application by the same method
used for short-term leases;
・exclude initial direct costs from the measurement of the right-of-use asset as of the date of initial application; and・use hindsight with respect to contracts with options to extend or cancel when determining the lease term, etc.
(Lease classified as a finance lease under IAS 17)
The carrying value of the right-of-use asset and the lease liability is determined based on the carrying value of the leaseasset and lease liability under IAS 17 immediately before the date of initial application.
(iii)

Impact on the condensed quarterly consolidated financial statements
On application of IFRS 16, in the condensed quarterly consolidated statements of financial position at the beginning of
the period, the Group additionally recognized right-of-use assets of 4,819 million yen and lease liabilities of 4,871 million
yen, and recognized decreased of 34 million yen in retained earnings and 18 million yen in non-controlling interests.
The weighted average of the lessee’s incremental borrowing rates applied to lease liabilities recognized in the condensed
quarterly consolidated statements of financial position as of the date of initial application is 0.7％～4.8%.

―12―

(Segment information, etc.)(1) Summary of reportable segments
The Company’s reportable segments are its business units that have separate financial information available and that are subject
to periodical examinations by the Board of Directors for the purpose of determining the allocation of management resources andevaluating performance.
Under its “One Asia” vision, the Group aims to serve as a bridge connecting various opportunities and engineers in Asia. With
the Online Travel Agency Business, IT Offshore Development Business and Investment Business as its three mainstay businesses,
the Group classifies these businesses, with their highly unique business models, as its main reportable business segments and draws
up and determine Group strategies accordingly.
The businesses and main products belonging to each reportable segment are as follows:
Online Travel Agency Business: AirTrip travel agency services, services for foreign visitors in Japan, life innovation services
IT Offshore Development Business: Lab-type offshore development services and BPO services
Investment Business: Investment in growing companies and turnarounds(2) Calculation method of segment income (loss) and segment performance
The accounting process for the reportable business segments is the same as that used for the preparation of the condensed
consolidated financial statements.
Transactions between reportable segments are conducted based on the same general terms and conditions that apply to externalcustomers.
The Group does not allocate assets or liabilities to reportable segments.
(3) Information about segment income(loss) and segment performance
Three months ended December 31, 2018 (Oct. 1, 2018 – Dec. 31, 2018)(Millions of yen)
Reportable segments
OnlineIT Offshore
TravelInvestment
Developme
AgencyBusiness
nt BusinessBusiness

Total

Other
(Note 1)

Total

Adjustme
Consolidatents
d Total(Note 2)External sales revenue

4,124

611

0

4,735

0

4,735

－

4,735

Intersegment revenue

16

108

－

124

－

124

△124

－

Total sales revenue

4,140

719

0

4,860

0

4,860

△124

4,735

Segment profits (losses)(Note 3)

△196

91

97

△7

△0

△7

△175

△183

Financial income

2

Financial expenses△24

Incometaxes

beforeincome△204(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising
revenue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the quarterly consolidated statement ofincome.

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Three months ended December 31, 2019 (Oct. 1, 2019 – Dec. 31, 2019)(Millions of yen)
Reportable segments
OnlineIT Offshore
TravelInvestment
Developme
AgencyBusiness
nt BusinessBusiness

Total

Other
(Note 1)

Total

Adjustme
Consolidatents
d Total(Note 2)External sales revenue

7,402

507

71

7,980

0

7,980

-

7,980

Intersegment revenue

-

215

-

215

-

215

△215

-

7,402

723

71

8,196

0

8,196

△215

7,980

905

40

163

1,109

△0

1,109

△309

800

Total sales revenue
Segment profits (losses)(Note 3) (Note 4)
Financial income

5

Financial expenses△58

Incometaxes

beforeincome748(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising
revenue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the quarterly consolidated statement ofincome.
(Note 4) The segment profits of the Online Travel Agency Business include negative goodwill arising from the acquisition of
HIKAWA.
(Important subsequent events)
Not applicable.

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