For the Third Quarter of the Fiscal YearEnding September 30, 2020

Results ofOperations
AirTrip Corp.
TSE 1st Section: 6191
August 14, 2020

Highlights

The AirTrip travel business posted a significant fall in net sales due to the impact of COVID-19.
● However, the AirTrip Group’s existing costs were cut by a massive 55% and the Group’s
downside risk was reduced in other businesses.
During the first nine months, handling volume was 66,900 million yen and operating loss (before● impairment losses) was 100 million yen.

The domestic travel domain shows a tendency for improvement despite COVID-19 and the● Company aims to achieve an early return to profitability on monthly basis by tapping into travel
demand using the Go To Travel campaign.
The Company plans to implement its “AirTrip 2020” growth strategy for the post-COVID-19 era.
The Company will strengthen its business base focusing on the Life Innovation business and● Investment Business, the latter of which has increasingly established a track record in company
listings.
To promote the AirTrip 2020 growth strategy and AirTrip 5000 medium-term management
strategy, the Company announced offensive and defensive financing plans designed for (1) early● stage financing, (2) control of immediate dilution and (3) eliminating the negative impact on the
demand and supply of shares as much as possible.
Copyright © Air Trip Corp. All Rights Reserved.

2

FY20.3Q Financial Summary

Copyright © Air Trip Corp. All Rights Reserved.

3

Changes in Handling Volume

Handling volume: 67%
Severely impacted by COVID-19 from April through June
Handling volume(hundred million yen)

* Changed to pre-cancellation handling volume from FY19.4Q.
Copyright © Air Trip Corp. All Rights Reserved.

4

Changes in Net Sales

Net sales: 118%
Continued to increase despite the impact of
COVID-19
Consolidated net sales(million yen)

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5

Changes in Operating Income

The impact of COVID-19 resulted in an operating loss before therecording of impairment losses of 100 million yen~Operating loss after the recording of impairment losses was 1,140 million yen~

Consolidated operating
income (million yen)

△1,044 △1,147(Before Impairment Losses) Impairment Losses

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6

(Reproduced from 2Q presentation materials)
Recording of Impairment Losses on Assets

Impairment losses were recorded, mainly reflectingchanges of strategy in light of the impact of COVID-19~Total impairment losses of 1,040 million yen were recorded on Group assets~
Impairment losses on some assets related to the travel business (Group total: 1,040 million yen)Labor-intensive
unprofitablebusiness

Deterioration in the profitability of certain labor-intensive products (tourbusiness, etc.) due to COVID-19 prompted the decision to downscale thebusiness and impairment losses on assets such as software and goodwill
were recorded, reflecting this policy.

Subsidiaries
making a loss due
to COVID-19

With respect to certain subsidiaries being considered for sale in the future
following deterioration in profitability due to COVID-19, impairment losses
were recorded based on recent income and outlook.

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7

Statement of Income

Handling volume was below the year-ago level but net sales rose
thanks to the revenue contributions of businesses other than thetravel business~Loss before impairment losses was kept to around 100 million yen~(million yen)

FY19.3Q

Amount

FY20.3Q% to Sales

Amount(BeforeImpairment
Losses)% to Sales

Amount(AfterImpairment
Losses)% to Sales

Handling
Volume98,899ー

66,975

ー

66,975ーNet Sales

16,148100.0%

19,212100.0%

19,212100.0%

Gross Profit

9,134

56.6％

7,199

37.4％

7,199

37.4％

Operating
Income

270

1.7％

△103

ー

△1,147ー

Profit57

ー△1,167ー

Copyright © Air Trip Corp.
All Rights Reserved.
0.4%
△123

8

Summary of Segment Operating Income (YoY Change)

The online travel business performed strongly, posting growth YoY~Operating income is on recovery track despite YoY fall in Investment Businesses~(million yen)First 9 Months
of FY2019

FY20.3Q(Beforeconsideration of
impairment
losses)

147

755

+609

△1,044

△289

134

76

△58

0

76

473

△79

△552

0

△79

Adjustments

△485

△854

△367

0

△854

Consolidated Total

270

△103

△373

△1,044△1,147

Operating Income

AirTrip Travel
Business
IT Offshore
Development
Business
Investment
Businesses

ChangeCopyright © Air Trip Corp. All Rights Reserved.

FY20.3Q(Afterconsideration of
impairment
losses)

FY20.3Q(Impairment
losses)9Balance Sheet

Equity was 9,100 million yen, remaining at an
adequate level despite the recording of a(million
loss
yen)
FY19.4Q

FY20.3Q

ChangeCurrent Assets

20,14015,052△5,088Cash and Deposits

8,997

5,744

△3,253Operational Investment
Securities

4,606

4,224

△382

Non-current Assets

11,112

15,899+4,787

Total Assets

31,25330,951△302

Liabilities

21,153

21,777+624

Interest-bearing Debts

12,631

12,408△223

Equity10,099

9,173

△926

Equity ratio

32.3%

29.6%

△2.7

Copyright © Air Trip Corp. All Rights Reserved.

10Measures against COVID-19 Coronavirus andOutcomes

Copyright © Air Trip Corp. All Rights Reserved.

11Outlook for Travel Demand Recovery Given Impact of COVID-19 Coronavirus

Demand is gradually recovering but
there is a long battle ahead until 100% recovery~Demand will go through phases of recovery and contraction until a vaccine is developed,
triggering explosive growth in travel demand~
Development oftreatment/vaccine

1st wave
Number of cases ofinfection

High

Number of
travelers

Decreasein numberof cases

Number of travelers(Travel demand)

2nd wave

Increase in
number ofcases

Higher growth thanpre-coronavirus level100%
recovery

Peoplestay athome

Improvement ofdemandDemandcontraction phase

Low

Now

Demand recovery
phase

Now
Demandcontraction phase

Demand recovery
phase

Demandcontraction phaseTime(1-1.5 years)
Copyright © Air Trip Corp. All Rights Reserved.

Phase of explosive
demand growth

Future12

Impact of COVID-19 on Recent Performance

The domestic travel domain shows a recovery tendency, andthe investment business is also performing strongly~Focus on life innovation business, included in other business domains, from
FY20.4Q~
Declaration of state of
emergency (Apr. 7)

Lifting of state of
emergency (May 25)

2Q results announcement(Jun. 12)

Launch of GoToTravel(Jul. 22)

3Q results announcement(Aug. 14)

August September October(Forecast) (Forecast) (Forecast)

April

May

June

July

Domestic travel
domain

△→×

×→△

△→◯

◯

◯?

◯?

◯?

Overseas travel
domainInvestment businessdomainOtherbusiness domains

×

×

×

×

×?

×?

×?

◯

◯

◯

◯

◯?

◯?

◯?

◯~△

◯~△

◯~△

◯~△

◯~△?

◯~△?

◯?

Copyright © Air Trip Corp. All Rights Reserved.

13

Measures against COVID-19 Coronavirus and Outcomes: Drastic Reduction in Cash Outflow/Costs

Continue to reduce cash outflows across the Group~Control variable expenses and drastically reduce fixed expenses~(hundredmillionyen)

Control of variable expenses according to net sales
Variable expenses

Variable
expenses△85％

Total reductionof 55%

Advertisingexpenses

Advertising expenses

Seek cost optimization through control of variable expenses andadvertising expenses according to the status of the recovery of
the AirTrip travel business

△59％
Costs
beforereduction

Review of fixed expenses and reduction of cash outflow

Personnel
expenses△55％

Personnel
expenses

10.4

Other fixed
expenses

△47％
Costs
after
reduction
Implementation of cost control prioritizing generationof immediate cashflow for the time being

20.2

4.6

Reduced personnel expenses of all Group employees (bothregular and irregular) through return of Directors’ bonuses (2founders and Directors and Audit & Supervisory Board Members
returned 25% of bonuses) and utilization of employment
adjustment subsidy system
Other fixed expenses

Reduced cash outflows by reviewing rents, subcontract
expenses and other fixed expenses in association with shift
towards working from home

20.7
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14

(For Reference) FY21.9 Cash Outflow Reduction Measures (Plan)

Plan to implement measures to reduce future cash outflows/costs~Plan to continue curbing monthly SG&A to around 400-500 million yen after the current fiscal year
through control of variable expenses and further reduction of fixed costs~
Optimization of costs
through variabilization of operation costs(hundred million
yen)
10.0
Variable expenses
Fixed expenses
8.0

Variable
expenses

Implement cost control when business is slack throughvariabilization of operation costs

4.0
0.3

1.3

0.5?
0.5

6.0

Advertising expenses

Continue to optimize ratio of advertising expenses to gross profit

Further reduction of personnel expenses
and other fixed expenses
1.0?

4.0

6.4
2.0

3.8

3.3

3.3

Personnel
expenses

Reduce total personnel expenses by 130 million yen per
month
Make group-wide cuts in areas such as a directors’
remuneration, regular employees, engineers and temporary
and part-time workers
Other fixed expenses

Optimize system development structure and reduce rent
and other fixed expenses

0.0

20.2

20.5

20.7

20.10~(Plan)

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15

Monthly Changes in Gross Profit: Forecast of Early Recovery and Return to Monthly Profitability

Gross profit: Early return to profitability on a monthly basis expected~Seek early return to monthly profitability in the domestic travel domain and life innovation businessdomain~New business(Life innovation business domain)(hundredmillion
10.0
yen)

Other business domains

2.1
2.1

2.1

Overseas travel domain

1.9

Domestic travel domain

2.2

8.0

3.7
6.0

3.7

2.4

3.2

Early return to monthly
profitability expected

4.1
1.9

4.0

1.8

0.8

1.5

0.7
1.6

2.8

2.5

2.5

2.5

20.6
19.10
19.11
19.12
20.1
20.2
20.3
20.4
20.5
* Figures may differ from figures in consolidated P/L statement as they are preliminary figures used for Group business management.
Copyright © Air Trip Corp. All Rights Reserved.

20.7

20.8
(Plan)

20.9(Plan)

1.7
2.0

4.7

4.7

5.0

5.2

4.6
3.3

0.0

1.9

1.8

△0.1

△0.1

0.8

0.7

1.7

16

Progress Versus Forecasts During FY20.3Q

Forecasts will not be disclosed in view of impact of COVID-19~A slight operating loss before impairment losses was recorded in FY20.3Q
Full-year operating income (loss) before impairment losses is expected to bewithin the range of a loss of 600 million yen to income of 400 million yen~(million yen)

FY20
Initial Plan

FY20.3Q
BeforeImpairment
Losses

FY20.3Q
After
Impairment
Losses3Q
Rate of
Progress

Handling
Volume180,000

66,97566,975

37.2％

Net Sales

38,00019,212

19,212

50.5％

Operating
Income

2,000

△103

△1,147ー

Profit

1,300

△123

△1,167ーーー

Dividend

13Copyrightyen © Air Trip Corp. All Rights
ー Reserved.

17

Outcomes of Actions in FY20.3Q~Actions related to Go To Travel campaign~

Copyright © Air Trip Corp. All Rights Reserved.

18

Opening of Special Go To Travel Campaign Site

Opened special Go To Travel campaign site!!
~Expect to tap into domestic travel demand by starting to sell eligible

products in the domestic travel domain~

Copyright © Air Trip Corp. All Rights Reserved.

19

Significant Improvement in Handling Volume due to Launch of Go To Travel Campaign

Handling volume improved significantly due to launch of
Go To Travel campaign~Post-launch handling volume was 205% of pre-launch volume, reflecting

capturing of Go To Travel demand~
Significant improvement
in handling volume after
launch of Go To Travel
campaign

Post-launchPre-launch

Announcement of Go To
Travel launch date (Jul. 10)

Launch of Go To Travel(Jul. 22)

*Handling volume based on domestic airline ticket + hotel bookings and domestic hoteland domestic tour bookings

July 1, 2020

July 28, 2020
Copyright © Air Trip Corp. All Rights Reserved.

20

Combination of Go To Travel Campaign and AirTrip Special Campaign to Support “Appropriate Travel”

Combination of Go To Travel Campaign and AirTrip
Special Campaign to Support “Appropriate Travel”~Launched AirTrip’s own campaign for customers who agree to comply

with new travel etiquette published by Japan Tourism Agency~
Display of information about “appropriate
travel” on opening of AirTrip app
When app is opened, the need for “appropriate
travel” is stressed to all users through display of“New Travel Etiquette”
Launch of AirTrip campaign round one
Launched AirTrip campaign where customers
who book accommodation at a hotel in Japan
with AirTrip are rewarded with 17% AirTrip
points, in addition to the 35% Go To Travel
Discount, giving them a total discount of up to52%
Copyright © Air Trip Corp. All Rights Reserved.

21

Evolution of “AirTrip 2020” Growth Strategy~Strategy for overcoming upheaval caused by COVID-19 andpreparing for the post-coronavirus era~

Copyright © Air Trip Corp. All Rights Reserved.

22

Goals under “AirTrip 2020” Growth Strategy: Growth Strategy for Preparing for Post-coronavirus Era

Evolution into strategy for overcoming upheaval caused by COVID-19
and preparing for post-coronavirus era~Take full advantage of the Go To Travel campaign and adapt to the ‘new normal’ for travel~3

Utilize IT literacy and development capabilities tooffer flexible services for the ‘new normal’Utilize IT capabilities to develop services for the ‘new normal’ for travel
Aim to develop new business models and services based on understanding ofanticipated changes in styles of travel and lifestyles in the post-coronavirus era

2Conduct large-scale promotions that takeadvantage of recognition of AirTrip
Implement marketing strategies that take advantage of recognition of AirTrip
Formulate and implement marketing strategies which take advantage of recognition of“AirTrip” brand built up to date and organic inflows

1

Steadily capture domestic travel demand by taking
advantage of Go To Travel campaign
Strengthen collaboration with government agencies, local
partners and airlines
Take full advantage of government measures to stimulatedomestic travel demand including the Go To Travel campaign,
Copyright © Air Trip Corp. All Rights Reserved.
which pays 35% of travel expenses

23

“AirTrip 2020” Growth Strategy: Creation of New Business in Life Innovation Business Domain

Started up health care business as new business base
~Further strengthened Life Innovation Business Domain~
Creation of new business in Life Innovation
Business Domain

ヘルスケア事業
Health Care

Copyright © Air Trip Corp. All Rights Reserved.

24

“AirTrip 2020” Growth Strategy: Strengthening of AirTrip Travel Business

Improve service quality and increase business efficiency focusing on
domestic travel domain~In addition to previous strategies, use technology to further automate operations~
Products
AirTrip
TravelBusiness

・Focus on UI/UX improvements as before and aim to drastically improve service quality
・Conduct various campaigns focusing on domestic travel domain in preparation for recovery of travel
demand・Continue aiming to increase recognition of AirTrip by implementing the optimum marketing

MarketingTechnology

measures・Reduce the ratio of advertising expenses to gross profit to efficiently attract customers

・Increase use of technology to further automate operations and achieve higher
business efficiency in call center functions

Steadily capture domestic travel demand, which is now starting to pick up, byimplementing “AirTrip 2020” growth strategy which anticipates post-coronavirus era
Copyright © Air Trip Corp. All Rights Reserved.

25

“AirTrip 2020” Growth Strategy: Financial Strategy

Strategy of further increasing on-hand liquidity
while maintaining healthy financial position~Maintain financial health through combination of significant cost-cutting measures described earlier andmeasures to boost cash balances~
Financial health (consolidated basis)

Financial strategy of improving financial healthand on-hand liquidity

Cash
Equity ratio

Restructuring ofbusiness
portfolio

Cash

5,700

Reduce Group’s relative
dependence on travel industry

Preparation forContinue to prepare for IPO
IPO ofof three major Group subsidiaries
subsidiaries

millionyen* End of
FY20.3Q

Fundraising
FY19.3Q

Continue to consider diverse
fundraising methods

FY20.3Q
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26

Overview of Convertible Bonds (CB) and Stock Acquisition Rights (Warrants)
1st Issuance of CBs

14th Issuance of Warrants

Planned Funding Amount

1 billion yen

5.1 billion yen(initial exercise price equivalent)Issue Price

102 yen per 100 yen

25 million yen(total issue price)

Maturity Value

103 yen per 100 yen-

Interest Rate

0.00%

-

Maturity Date / Final Day of Exercise
PeriodSeptember 13, 2023

September 13, 2023

Initial Conversion Value / Initial Exercise
Value

1,500 yen
(104% of closing price on August 26)

1,438 yen
(100% of closing price on August 26)

Minimum Conversion Value / Minimum
Exercise Value

1,007 yen
(70% of closing price on August 26)

1,007 yen
(70% of closing price on August 26)

Number of Potential Shares

Initial conversion price equivalent:
666,666 shares
Minimum conversion price equivalent:
993,048 shares

3,550,000 shares (fixed)

Voting Rights Dilution Rate

Initial conversion price equivalent: 3.3%
Minimum conversion price equivalent:
4.9%

17.7%

Allottees

SBI Securities

Mizuho Securities / SBI Securities

Copyright © Air Trip Corp. All Rights Reserved.

27

Highlights of Financing Plans●

To deal with the downside risks from COVID-19, the AirTrip will effectively utilize the capital
market as a listed company to make improvements to its cash position and financial health while
financing the defensive and offensive measures carried out in support of the AirTrip 2020
growth strategy and AirTrip 5000 medium-term management strategy.

●

A scheme combining convertible bonds (CB) with stock acquisition rights (warrants) will achieve(1) early stage financing and (2) financing accounting for phases in the future recovery ofstock prices (controlling immediate dilution)●

By looking at the phases of the future recovery of stock prices, the Company aims to procure
funds at a higher market capitalization level than previous financing. Exercising of thewarrants will be permitted when a share price consistent with Company policy has been reached.
Depending on the movement of share prices, the progress of financing and the demand for funds,
the Company will acquire remaining warrants at its discretion and also ensure flexibility in theability to control dilution.

●

By (3) fully utilizing the investor client bases of two companies, SBI Securities and Mizuho
Securities, the Company will place an emphasis on procuring funds while eliminating thenegative impact on the demand and supply of shares as much as possible.
Copyright © Air Trip Corp. All Rights Reserved.

28

“AirTrip 2020” Growth Strategy: Restructuring of AirTrip Group’s Business Portfolio

Push ahead with new M&A and the sale of some subsidiaries~Restructure the Group’s business portfolio based profitability and growth potential~
Conduct M&A seizing the momentum for restructuring
within the travel sector

High

Make active investment aimed at continued
expansion in business scale

Domains with potential for growth inprofitability

Domains for active investment

Domains considered for businesswithdrawal or business sale

Domains considered for businessrevivalGrowthpotential

Low
Low

Profitability

Consider sale (wind down) of some businesses intravel-related domains

High
Conduct M&A for growth of next businesses
after travel business

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29

Evolution of “AirTrip 2020” Growth Strategy: Formation of Capital and Business Alliance with Upsell-Technologies
Inc.

Strengthened capital and business alliance with investee
Upsell-Technologies
Outsourcing ofoperations

Allotmentof shares
Operations
business•••

Operations
business

Transfer
Optimization of costs and variabilizationof expenses
Strengthening of structure in preparation
for demand recovery phase (Go To Travel
campaign, etc.)
Strengthening of development of investee••

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•

Entry to travel business andpursuit of synergy with existing
business
Discontinuous growth through
M&A
Strengthening of IPO
preparations

30

“AirTrip 2020” Growth Strategy: Serious Focus on Health Care Business through Private Placement of New Sharesby PikaPaka.

Made investment in PikaPaka in connection with startup
of health care business~Creation of businesses encompassing travel/business trip and healthcare
fields and launch of PCR/antibody test service~
Investment

Capital increase throughprivate placement

Copyright © Air Trip Corp. All Rights Reserved.

31

“AirTrip 2020” Growth Strategy: Progress of Preparations for Listing of Major Group Subsidiaries

Made steady progress with preparations for listing of major Group subsidiaries
Magmag was approved for listing. Two other companies are also accelerating growth ahead of being listed.
Sept. 24 planned
listing dateLife innovation businessJapan inbound travel businessIT offshore development business

Handling volume in FY20.3Q 910
million yen

Handling volume in FY20.3Q 890
million yen

Net sales in FY20.3Q
1,540 million yen

Overview of most recent reporting period

Overview of most recent reporting period

Overview of most recent reporting periodBusiness of operating one of industry’s largest email magazine distribution platforms performed
solidly and the impact of COVID-19 was
insignificant.
Plan to leverage contents and customer base toaccelerate growth of media advertising business.

Acquired Global Mobile, Inc. in April 2020 and
accelerated growth of Wi-Fi business.
Also entered ticket-type concierge businessthrough acquisition of “Tabiko” business, with aimof establishing new earnings base.

Posted substantial increase in net sales thanks tothe provision of hybrid development services that
pursue high quality and cost performance.
Voted highest ranking Japanese company inVietnam Best IT Companies for second
consecutive year.

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32

Investment Businesses: Return on Investment

In the fifth IPO project, Cyber Security Cloud was listed and soldIn the sixth IPO project, Headwaters received approval for listing.*~Many exit projects and value enhancement projects~

Listing

Sale

Value
enhancement

and 4 other companies* Listing approval on August 24. Planned listing date of September 29. Note that as stated in theannouncement materials issued on January 16, 2018, investment is through the Primerock 2
Investment Business Limited Partnership (Head Office: Shibuya-ku, Tokyo, Representative Partner:
Kentaro Sugihara).

Copyright © Air Trip Corp. All Rights Reserved.

33

Progress of the AirTrip 2020 Growth Strategy:Entered into Commitment Line Agreement with Mizuho Bank

Conclusion of a commitment line
agreement with Mizuno Bank
Ensuring a stable line of credit for operating funds to prepare for theaftermath from the effects of expanding COVID-19 infections
Conclusion ofCommitment Line
Agreement

MizuhoBank, Ltd.

Agreement Expiry: September 30, 2020 → extension to March 31, 2021 planned
Agreed credit line: 1.5 billion yen
Use of funding: short-term operating funds

Copyright © Air Trip Corp. All Rights Reserved.

Highlights

The AirTrip travel business posted a significant fall in net sales due to the impact of COVID-19.
● However, the AirTrip Group’s existing costs were cut by a massive 55% and the Group’s
downside risk was reduced in other businesses.
During the first nine months, handling volume was 66,900 million yen and operating loss (before● impairment losses) was 100 million yen.

The domestic travel domain shows a tendency for improvement despite COVID-19 and the● Company aims to achieve an early return to profitability on monthly basis by tapping into travel
demand using the Go To Travel campaign.
The Company plans to implement its “AirTrip 2020” growth strategy for the post-COVID-19 era.
The Company will strengthen its business base focusing on the Life Innovation business and● Investment Business, the latter of which has increasingly established a track record in company
listings.
To promote the AirTrip 2020 growth strategy and AirTrip 5000 medium-term management
strategy, the Company announced offensive and defensive financing plans designed for (1) early● stage financing, (2) control of immediate dilution and (3) eliminating the negative impact on the
demand and supply of shares as much as possible.
Copyright © Air Trip Corp. All Rights Reserved.

35

FY20.3Q Business Progress

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36

Marketing: Effect of Branding (1)Search trend bottomed out as a result of improvement in
AirTrip recognition~Search volume was higher than that of competitors
both on a full year basis and during the COVID-19 outbreak ~AirTrip
Competitors

Higher volume than that ofcompetitors during the
COVID-19 outbreak
Search volume during
summer high season

August 2019

Search volume after
airing of commercials

January 2020

Copyright © Air Trip Corp. All Rights Reserved.

August 202037

Marketing: Effect of Branding (2)Search volume through “AirTrip” keyword showed recovery
tendency despite upheaval caused by COVID-19~Recovered to level before the declaration of state of emergency~
Declaration of state of
emergency (Apr. 7)

Substantial
recovery in searchvolume after liftingof state of
emergency

Lifting of state of
emergency (May 25)

April 2020

May 2020

June 2020

Copyright © Air Trip Corp. All Rights Reserved.

July 202038

Domestic Airline Tickets: Tendency for Recovery of Handling Volume after Lifting of State of Emergency

Handling volume showed recovery tendency due to growing travel
demand after lifting of state of emergency~Compared to April level, handling volume was 274% and organic CVR was 179％~
Handling
volume274%
Substantial recovery in handling volume
after lifting of state of emergency‼
Handling volume recovered rapidly due to
growing summer holiday travel demand after
the lifting of the state of emergency* Compared toApr. 2020 level

CVR

179%
* Compared toApr. 2020 level

20.4

Recovery of organic CVR to pre-COVID-19
levelsOrganic inflow CVR recovered to pre-COVID-19
levels, contributing to improvement in handlingvolume and gross profit

20.6
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39

Domestic AirTrip Plus: Launch of Plan with Rental Camping Car

Launched plan with rental camping car~Expanded product lineup for greater convenience~
Offering travel and leisure “avoiding the
3Cs” during and after COVID-19
・75% of people are interested in “road trips”
as a way to travel during and after COVID-19!!!
・Proposing road trips not only as a way to travel
but with the added benefit of a camping car forovernight stops !!
・Offering a new travel experience for group
trips including family trips and student trips*Feature only available on smartphone app

Copyright © Air Trip Corp. All Rights Reserved.

40

Domestic AirTrip Plus: Growth in Handling Volume due to Go To Travel Campaign

Launched Go To Travel campaign products~Handling volume after launch of Go To Travel campaign reached 219%of year-ago
level~
After launch of Go To Travel campaign,
handling volume reached 219% of level in same
period of previous year

AirTrip Plus provided rigorously selected campaign
products which follow company guidelines, offeringsafety and peace of mind

Handling
volume219%* Compared toFY19.3Q

FY19.3Q

FY20.3Q
Copyright © Air Trip Corp. All Rights Reserved.

41

Domestic Hotels: Cost Reduction & Sharp Recovery of Handling Volume During COVID-19 Crisis

Achieved sharp recovery in handling volume during COVID-19 crisis by steadily
tapping into accommodation needs whilst at the same time curbing business
operating costs~Costs were down 31% compared with Feb. 2020, while handling volume reached 390% compared withprevious month~＜Reduction in cash outflows during COVID-19
crisis＞（%）＜Trend of domestic hotel handling volume during
COVID-19 crisis＞
Handling volume (actual)Handling volume (forecast)

100

10%

4%

Launch of Go To Travel campaign (Jul.
22)

80
Variable expenses
Fixed expenses

60

40

90%

SG&A
65%

Handling
volume(July actual)390%（Cash outflows）

-31%

20

Sharp recovery ofhandling volume
after lifting of stateof emergency* Compared withFeb. 2020* Compared with
Jun. 2020

Declaration of state of
emergency (Apr. 7)
Lifting of state of
emergency (May 25)

0

20.2

20.7

April
Copyright © Air Trip Corp. All Rights Reserved.

May

June

July

August September
42Domestic Hotels: Business Strategies Taking Advantage of Go To Travel Campaign

Provided services to meet accommodation needs of Go To Travel
campaign users~Captured accommodation demand by rewarding Go To Travel campaign users with a
discount of up to 52 %~Started selling products eligible
for Go to Travel campaign at
discounted price

Gave Go To Travel campaign
users a discount of up to 52% on
domestic hotel bookings

Improved UI/UX of booking sitefrom customer perspective to fully
meet Go To travel conditions

Offered Go To Travel campaign
users accommodation facilities
which comply with COVID-19
countermeasures

Started selling travel products at 35%
discount to quickly meet accommodation
demand of Go To Travel campaign users

Rewarded customers with 17% AirTrip
reward points in addition to Go To Travel
campaign discount, giving them a total
discount of up to 52%

Made improvements to UI/UX of booking
site from a customer perspective to fully
meet the complex conditions of the Go
To Travel campaign

Designed site on which accommodation
facilities eligible for Go To Travel
campaign are immediately
distinguishable for each popular area

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43

Domestic Tours~Sale of Go To Travel Campaign Products at Discounted Price~

Started selling products eligible for Go To Travel
campaign at discounted price~Handling volume after launch of Go To Travel Campaign exceeded
level a year earlier~

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44

Overseas Airline Tickets, Hotels and AirTrip Plus: Drastic Cost Reduction Through Review of Advertising
Expenses

Minimized impact of COVID-19 through drastic cost
reductions~Achieved 95% compared with 1Q level through review ofadvertising expenses due to COVID-19~
Advertisingexpenses
Advertisingexpenses-95%* Compared toFY20.1Q

FY20.1Q

FY20.3Q

Radical review of marketing costs
Suspended paid advertising to attract
customers during COVID-19 crisis andexamined resumption based on assessmentof signs of recovery

Optimal pricing based on market situation
Carefully examined reasonable price brackets
based on daily user trend and adopted optimal
pricing according to situation
Careful examination of scope for cost
reduction and reduction of some fixed
expenses
Carefully examined scope for cost reduction
by taking stock of operations and reduced
Copyright © Air Trip Corp. All Rights Reserved.
45
some fixed expenses which made no

AirTrip BTM: Number of Contracted Companies

Number of BTM clients: Business base is still robust
despite slowdown in number of contracted companies due
to COVID-19(Number of contracted companies)
Increase due to acquisition ofDeNA Travel

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3,516

46

AirTrip BTM: Launch of PCR Test/Antibody Test Booking Service for Corporate Clients

Launched PCR Test/Antibody Test Booking Service for
Corporate Clients as Part of Support for Fight Against
COVID-19!!
PCR test andantibody test booking
service

AirTrip
corporateclients

Partner testing
medicalinstitution

PikaPaka(AirTrip Group company)

Employees andtheir families

Test
proposal

AirTrip
individual
customers

AirTrip
members

Test
booking

Test
request・Test booking service
・Health (negative result)certificate mailing service
・Settlement of invoices
・Provision of information
about COVID-19 situationworldwide

Copyright © Air Trip Corp. All Rights Reserved.

47

IT Offshore Development Business: Increase in Number of New Orders

Number of new orders for development projects increased
steadilyNumber of neworders6

and 4 othercompanies
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48

IT Offshore Development Business: Launch of Development/Production Service Combining Grant Application
SupportLaunch of development/production service combining grantapplication support!!
~Supporting IT use with the help of grant recipients ~Development/Production Service Combining Grant Application Support
One-stop shop service covering every stage from application to development andreport submission after delivery
Consultation
Application support
Selection
Development/Production
Report submission support
Issuance of grant
Manufacturing grant
Up to 10 million yen!
Grant rate: 2/3
Self-employed/ SMEs
IT introduction grant
Up to 4.5 million yen!
Grant rate: 3/4
SMEs
Small Business Sustainability Grant
Up to 1 million!
Grant rate: 3/4
Small businesses*Details are based on issuance regulations.
Other support such as business succession grants and financial assistance for
introduction of non-face-to-face services is also available

Copyright © Air Trip Corp. All Rights Reserved.

49

Investment Businesses: Results of Investments

Strengthening of investment development:
64 companies; total investment amount: 2.3 billion yen* As of July 2020･･･etcCopyright © Air Trip Corp. All Rights Reserved.

50

Core Subsidiaries: Inbound Platform Corp.

Covered decline in inbound demand by capturing domestic
demand~Handling volume was 86% compared to FY19.3Q~(millionyen)

Handling
volume

1,500

86%

1,200

1,039

* Compared toFY19.3Q

893

900

Strong performance in camping car business
Demand for camping cars that enable travellers
to avoid the 3Cs was solid among Japanesecustomers

600

300

0

FY19.3Q

Increased corporate demand in WiFi businessCorporate demand grew due to increase in
telework, offsetting decline in inbound demand

FY20.3Q

Increased cost efficiency through measures
such as closure of currency exchange store
Improved efficiency of fixed expenses throughclosure of Ueno currency exchange store andreview of purchases

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51

Core Subsidiaires: HYBRID TECNOLOGIES

No. 1 in Japanese offshore development
in Southeast Asia through hybrid development~Net sales were 157% compared to FY19.3Q~
300

Net sales(million
yen)

295

157%
240

180

Made Dentsu Techno Camp into a wholly
owned subsidiary
Aim to strengthen digital marketing domain andto increase added value by combining hybrid
development and DTC’s solutions* Compared toFY19.3Q

188

120

60

0
FY19.3Q

FY20.3Q

Launched One-stop AI Development
Service
Formed business alliance with Nishika which
specializes in high precision AI model
development to realize provision of a one-stopshop service combining AI models andoffshore development

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52

Hikawa

Established business base by combining tea manufacturingexpertise with AirTrip assets~Further strengthened life innovation business~
Achieved cost reductions by strengthening
operating baseAchieved higher income through realization oforganizational reform and drastic cost reductions
Prepared for growth through operation of EC sites
and overseas expansion, etc.
Improved profitability through expansion of ecommerce with individual consumers and expansionof sales channels focusing on Asia
Prepared for development of new businesses
Strengthened business base through the developmentof new businesses combining Hikawa processing
technology with AirTrip knowhow
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53

747 Enterprise

Made huge cost reductions and took various actions in
response to COVID-19
Drastically cut costs
Reduced previous cash outflows by 89% in
response to COVID-19 without making any job
cuts
Maintained communication with Hawaiian
tourist destinations
Gave daily updates on situation at Hawaiian
tourist destinations including hotels andrestaurants
Started handling Okinawa wedding tours!!
Informed customers wanting a resort wedding in
Hawaii about wedding options in Okinawa
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54

AirTrip Ticket

Net sales recovered sharply through appeal of products based on
assessment of market trends~Net sales reached 190% compared with April 2020 level~
800(millionyen)

Net sales

320

Increased sales and profits based on
assessment of market trends
Steadily increased sales and profits byappealing to customers with a lineup of
products tailored to the season based on an
accurate understanding of active customer
trends160

Made cost reductions according to earning
capacity of stores

640

190%
* Compared toApr. 2020 level

480

0
20.4

20.5

20.6

Reduced costs by closing stores or shortening
their opening hours according to their earning
capacity

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55

AirTrip Stay

Increased productivity by replacing listed properties
and sharing knowhow
Net sales reached 198% of level in 3Q of previous year
Net sales

Increased productivity through careful
examination and replacement of listed properties
Whilst the total number of properties remained mostly
unchanged during COVID-19, productivity improved
significantly through careful examination andreplacement of properties listed

198%* Compared toFY19.3Q

Increased handling volume by sharing knowhow
on improving occupancy
Developed unique expertise in improving theoccupancy of properties. The occupancy rate ofalmost all properties and handling volume improved
significantly through the sharing of this knowledge.
FY19.3Q

FY20.3Q
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56

・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 differencesfrom the 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.

AirTrip 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