First Quarter of the Fiscal YearEnding September 30, 2018

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

Highlights⚫ Transaction volume and net sales reached new record highs.
- Progress as planned at the beginning of the year -⚫ Strengthening of promotional campaigns including TVCM

⚫ Launch of the one-stop service with Airbnb

Copyright © Evolable Asia Corp. All Rights Reserved.

1

Financial Summary

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2

Transaction Volume as Compared to the Budget

Handling volume: 176% year on year - sufficient pace to achieve the budget
Actuals for the fiscal year ended September 2017

700

Actuals for the fiscal year ending September 2018

700

(hundredmillion yen)

Budgets for the fiscal year ending September 2018600

Budget:174% year on year

500
400
300
200

127

100
0
1Q

2Q

3Q

4Q

* According to IFRS (non-audited)
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3

Net Sales as Compared to the Budget

Net sales: 135% year on year - sufficient pace to achieve the budget
Actuals for the fiscal year ended September 2017

(millions of yen)

Actuals for the fiscal year ending September 2018

7,050

Budgets for the fiscal year ending September 2018

7,000

Budget: 125% year on year

6,000
5,000

4,000
3,000
2,000

1,630

1,000
01Q

2Q

3Q

4Q

* According to IFRS (non-audited)
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4

Operating Income as Compared to the Budget

Operating income: 69% year on year - progress as planned, such as promotional
campaigns for AirTrip and investments(millions of yen)

Actuals for the fiscal year ended September 2017

1,500

Budgets for the fiscal year ending September 2018

1,400

Budget: 148% year on year

1,200
1,000
800

600
400200

137

01Q

2Q

3Q

4Q

* According to IFRS (non-audited)
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5

Statement of Income

Handling volume and net sales: steady progress(millions of yen)
17.1Q

Amount18.1Q*% to Sales

AmountYoY Change% to Sales

Handling Volume

7,188–

12,778–177.7%Net Sales

1,202

100.0%

1,630

100.0%

135.5%

Gross Profit

1,007

83.7%

1,222

74.9%

121.3%

Operating
Income198

16.4%

1378.4%

69.1%

Ordinary Income20116.7%

134

8.2%

66.6%

Profit

147

12.2%

79

4.8%

53.7%

* According to IFRS (non-audited)
Copyright © Evolable Asia Corp. All Rights Reserved.

6Preparation for Change to IFRSFrom the current fiscal year,
the accounting standards will be changed to IFRS.
(millions of yen)
18.1Q
Japanese GAAP
Amount

18.1Q
IFRS*

% to Sales

AmountYoY Change% to Sales

Handling Volume

11,281–

12,778–+1,497

Net Sales

1,606

100.0%

1,630

100.0%+24

Operating
Income

87

5.4%

137

8.4%

+50

Profit

39

2.4%

79

4.8%

+40

* Tentative values (non-audited)
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7

Balance Sheet

Promotion of investment for growth; specifically, the investment business andpromotional campaigns for AirTrip(millions of yen)

End of FY2017

18.1Q

YoY Change

Current Assets

5,226

6,101+875

Cash and Deposits

2,139

2,644+505

Operational investment
securities

1,099

1,474+375

Non-current Assets

2,320

3,867+1,547

Total Assets

7,547

9,969+2,422

Liabilities

4,252

6,018+1,766Interest-bearing Debts

1,400

3,506+2,106

Net Assets

3,294

3,951+657

Shareholders’ Equity

2,841

3,575+734

Equity ratio

37.6%

35.8%

-1.8

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8

Topics

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9

AirTrip: Promotional Campaigns

In the Kanto and Kansai areas,
start of broadcasting of television commercials

Rap version

Spoken version

Results of broadcasting
Kanto region (Tokyo, Kanagawa, Saitama, Chiba, Ibaraki, Tochigi, Gunma and Yamanashi prefectures)
Kansai region (Osaka, Shiga, Kyoto, Hyogo, Nara, Wakayama and Tokushima prefectures)
Hokkaido (Sapporo), Fukuoka, Okinawa, Kagoshima,※ Kumamoto, Miyazaki, Nagasaki and Ehime prefectures
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10

AirTrip: Results of Branding

Increase the recognition of the brand AirTrip through television commercials andother media

Change in the popularity of AirTrip

2017/2

2018/2

Source: Google Trends
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11

AirTrip: Improvement of Products

Renewal of the smartphone apps and the overseas air tickets site

Renewal of the smartphone apps
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Overseas air tickets site
12

AirTrip: Increase and Improvement of Merchandise

Start of the order service for AirTrip WiFi
Use of the service for the rental of Wi-Fi routers for overseas use offered by Vision Inc.*(1) The rental of a Wi-Fi router can be ordered and charged
together with overseas air tickets by using the integrated orderform.

(2) Customer satisfaction will be increased by increasing thecontent.
(3) The average sale per user will increase.
(4) The pricing for the rental of a Wi-Fi router falls within theCompany's own discretion, so the service can be highly unique.

* The strategic business alliance was entered into with Vision Inc. in June 2016.
Copyright © Evolable Asia Corp. All Rights Reserved.

13

Online Travel Agency Business: OEM

Start of collaboration with Seven Bank, Ltd. and d-travel
Alliances with more than 500
companies
Exclusive placement of links to sites for salesof air tickets in multiple languages in theapplication of Seven Bank, Ltd.: “SEVENBANK Money Transfer”

etc.

Domestic Airline Tickets
Exclusive listing of AirTrip’s service forthe reservation of domestic air tickets inthe category for domestic air tickets

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Online Travel Agency Business: Overseas air tickets

Start of the system link between AirTrip’s site for overseas air tickets
and Wego

API link
Overseas air tickets

The largest metasearch in theMiddle and Near East “Wego”

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15

Inbound Travel Business: Subsidiary AirTripStay

Start offering the one-stop service for Airbnb
In the consortium-type agent service exclusively for Airbnb, Japan’s first official partner
Notification of privateresidences taking lodgers
temporarily

Registration of private
residences taking lodgers
temporarily (scheduled)

Registration of the agency for
private residences taking lodgers
temporarily (scheduled)

Host of the property

AirTripStay

Airbnb, etc.

SupportPartner companies, subcontractors
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16

Online Travel Agency Business: Number of BTM Clients

Increasing BTM clients expanded earnings in the stock business.

1,097

1,152

1,207

17.4Q

18.1Q

782
544

572

16.1Q

16.2Q

619

16.3Q

667

16.4Q

722

17.1Q

17.2Q

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17.3Q

17

IT Offshore Development Business: Business Progress

Steady progress, including the group companies
New openings: 6 companies

About 850 persons

2014

2015

2016

2017

Number of engineers: about 850 persons
Stable growth due to the needs forengineers in the upstream process of“Evolable Asia Solutions,” which
continued from the previous fiscal year

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and four other companies

18

Investment Businesses: Merger of Subsidiaries

El Monte and AirTrip Exchange merged- Further business expansion in the area of foreigners visiting Japan and aiming for IPO

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19

Investment Businesses: Results of Investments

Strengthening of investment development:
29 companies; total investment amount: 1.3 billion yen* As of December 31, 2017
Aiming for an increase in corporate value
such as IPO
Returns

Investment anddevelopment

etc.
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20

Financial Strategy: Change of Special Benefit Plan

The ratio of points granted to shareholders witha large number of shares will be increased.

To increase the number of shareholders who hold the shares for a long period of time.
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21

Medium- to Long-term Vision

Transaction volume of 100 billion achieved one year ahead of the plan
1,200

1,000
800600•Acceleration of the growth of the travel business by investment inAirTrip•

Phase for return from the investment business•Stable growth of revenues from the stock business such as
IT offshore and BTM•

Securing of profits from the new businesses such as campers andmoney changing•

Expansion of the scale by implementing M&A

1741

FY08

FY09

1,000700401

400200Change in the handling volume on aconsolidated basis(hundred million yen)

87

100

107

140153FY10FY11FY12FY13FY14206277

0
FY15Copyright © Evolable Asia Corp. All Rights Reserved.

FY16

FY17

FY18

FY19

FY2022•

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