Financial Results
for the Fiscal Year 2023
（July 2022 – June 2023)

Contents

Summary of the Results for FY 2023

p.2

Business report of FY 2023

p.11

FY 2024 Forecasts
and future business development

Copyright © 2023 Temairazu, Inc. All rights reserved.

p.22

1

1 Summary of the Results

Copyright © 2023 Temairazu, Inc. All rights reserved.

2

１

Summary of the Result for FY 2023

1

Outline of the financial results

Net Sales:10.9％ increase YoY

Operating Income:14.0% increase YoY

FY 2023 totalResults

Profitmargin onsales

Result of same
period last yearDifference(amount)

Difference(percentage)

Net Sales

JPY 1,809,499 K－

JPY 1,631,008 K

JPY 178,490 K

10.9％

Operating
IncomeJPY 1,331,929 K

73.6%

JPY 1,168,218 K

JPY 163,711 K

14.0％

Ordinary
IncomeJPY 1,333,546 K

73.7%

JPY 1,179,352 K

JPY 154,193 K

13.1％

Net Income

JPY 873,814 K

48.3%

JPY 782,582 K

JPY 91,232 K

11.7％

Net earnings
per share

JPY 134.86－

JPY 120.78

Copyright © 2023 Temairazu, Inc. All rights reserved.

－－3

１2

Summary of the Result for FY 2023

Sales composition ratio3.8%

3.2%

2.2%

1.7%

1.9%

1.6%

1.7%

1.9%

2.1%

2.1%

2.4%

2.1%

96.2%

96.8%

97.8%

98.3%

98.1%

98.4%

98.3%

98.1%

97.9%

97.9%

97.6%

97.9%

Internet Media Business
Application Service Business

FY2021 1Q

FY2021 2Q

FY2021 3Q

FY2021 4Q

FY2022 1Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

FY2022 2Q

FY2022 3Q

FY2022 4Q

FY2023 1Q

FY2023 2Q

FY2023 3Q

FY2023 4Q

4１3

Summary of the Result for FY 2023

Sales and profit per segment

Application Service Segment:
Sales and profits increased and profit margin after cost allocation was 73.8%
Internet Media Segment:
Sales and profits increased and profit margin after cost allocation was 66.7%

Segment SalesApplication Service

JPY 1,771,152 K

Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 1,452,842 K(JPY 1,306,344 K)

80.2％(73.8％)

Hikaku.com

JPY 38,346 K

JPY 27,771 K(JPY 25,584 K)

72.4％(66.7％)

Adjustment--JPY 148,683 K-

JPY 1,809,499 K

JPY 1,331,929 K

73.6％

TOTAL

Copyright © 2023 Temairazu, Inc. All rights reserved.

5

Summary of the Result for FY 2023

１4 Sales trend of Application Service segment(Temairazu)
YoY: +10.7%

450,000(QnQ: +11.2%)

Unit: JPY 1,000
400,000

Jul – Dec 2020: Go To Travel Campaign(Tokyo included from Oct 2020)
350,000

May 2023: Covit-19 reclassified as Class 5300,000

Apr – May 2020: The 1stannouncement of State ofEmergency

Oct 2022:
ü The national travel assistance program started
ü Relaxation of immigration restrictions

250,000

Dec 2019: The 1st case of COVIT19 reported

20191Q20
192Q20193Q

20
19
4Q20201Q

20202Q

20203Q

20204Q

20211Q

20212Q

20213Q

20214Q

20221Q

20222Q

20223Q

20224Q

20231Q

20232Q

20233Q

20234Q

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

FY

200,000

Copyright © 2023 Temairazu, Inc. All rights reserved.

6

１

Summary of the Result for FY 2023

5

Breakdown of sales cost and SG&A

31,16730,21930,127

1,749

30,70933,420

3,306

1,391

48,001

Commissions

789

442

49,676

51,29551,25543,67848,955

36,92336,96934,821

2,038

2,054

40,84945,69247,43649,80421,70818,73019,971

18,81815,381

17,50914,455

15,963

FY2023 1Q

FY2023 2Q

FY2023 3Q

FY2023 4Q

36,505

1,807

3,045

47,032

Labor Cost

31,92235,0762,333

Advertising Cost

OthersUnit : JPY 1000

30,605

Sales Cost

123

845

44,466

20,702

16,891

15,59818,540

FY2021 1Q

FY2021 2Q

17,435

14,911
FY2021 3Q

16,854

20,223

17,794

17,208
16,96818,275

15,59817,187

FY2021 4Q

FY2022 1Q

FY2022 2Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

20,62911,610
FY2022 3Q

FY2022 4Q7

１6Net Sales

Operating
IncomeOrdinary
IncomeNetearnings
per share

Summary of the Result for FY 2023

Progress rate against full-year forecast

1,710,759

105.8%

1,809,499

117.4%

1,134,682

117.4%

1,135,985

116.5%

1,331,929

1,333,546

749,936
873,814

FY2023 Forecast(announced on Jul 29, 2022)
Copyright © 2023 Temairazu, Inc. All rights reserved.

Unit: JPY1,000
FY2023 Result8１7

Summary of the Result for FY 2023

Balance SheetEnd of FY 2022

End of FY 2023

JPY 5,047,336 K

JPY 5,826,084 K

Other current
assetsJPY 275,309 K

JPY 290,803 K

Accounts
receivable+ JPY 8,954 K

Fixed assets

JPY 55,674 K

JPY 64,621 K

Deferred tax assets+ JPY 3,217 K

Total Assets

JPY 5,378,320 K

JPY 6,181,509 K-

JPY 289,120 K

JPY 397,108 K

Income taxes
payable+ JPY 71,198 K

Capital stock

JPY 5,089,200 K

JPY 5,784,400 K

Net Income
Dividend of surplus+ JPY 873,814 K- JPY 181,417 K

Total liabilities /net assets

JPY 5,378,320 K

JPY 6,181,509 K-Equity ratio

94.6%

93.6%

-ROE

16.4％

16.1％

ROA

23.2％

23.1％

CashLiabilities

Copyright © 2023 Temairazu, Inc. All rights reserved.

Key factors of change+ JPY 778,747 K

9

１8

Summary of the Result for FY 2023

Statements of Cash Flows
End of FY 2023

Variable Factors

Operating CF

JPY 964,778 K

Net income before income tax
Income taxes payment

JPY 1,333,546 K- JPY 394,013 K

Investing CF- JPY 4,473 K

Acquisition of fixed assets- JPY 4,612 K

Financial CF- JPY 181,557 K

Dividend payments- JPY 181,159 K

Changes in CF

JPY 778,747 K-

CF balance at
beginning of FY

JPY 5,047,336 K-

CF balance at endof FY

JPY 5,826,084 K-

JPY 960,304 K-

Free Cash Flow

*Free Cash Flow is calculated by adding Operating CF and Investing CF
Copyright © 2023 Temairazu, Inc. All rights reserved.

10

2

Business report

Copyright © 2023 Temairazu, Inc. All rights reserved.

11

2

Business report

1

Business Summary of each segment

Application Service Business

Development & provision ofchannel manger “TEMAIRAZU”
seriesInternet Media Business

Operation of meta search site
“Hikaku.com”
Customer derivation service
Direct users to the advertiser's website and earncommission income according to the number ofcontracts.

Develop and offer “Temairazu”, theInformation provision service

channel manager system toaccommodation properties in Japan,

Earn fee income according to the number ofquotation and materials requested for insurancesand moving etc.

enabling them to manage their distribution

Adschannels centrally.

Sell advertisements such as banner, text, article
content etc.

Copyright © 2023 Temairazu, Inc. All rights reserved.

122Business report2-1 Application Service Business (Temairazu)
Our Channel Manager is a system for accommodation properties to manage theirdistribution channels in effective and efficient way, resulting in increasing the sales ability
and reducing the operation cost.
booking site A

bookingbooking site B

auto adjustment
booking site C

Manage multiple
channels easily with only
one operation
Manage rate & inventory at onceand be free from troublesome
operation tasks. Reducing
operation cost by simplifying
channel management workflow.
Copyright © 2023 Temairazu, Inc. All rights reserved.

Avoid overbooking by
fast & auto updateShort interval between acquiring
bookings and able to adjust theinventory quickly. Possible toclose the sale on each channel
all at once even if many
bookings comes in suddenly.

Accessible fromanywhere with internet
connection
Access Temairazu from the any
places where internet
connection is available. Sameaccount can be used fromdifferent computers as data isstored in dedicated server.
13

2Business report

2-2 Application Service Business (Temairazu)
Beginning of “TEMAIRAZU” service

New model channel manager”TEMAIRAZU.NET”“TEMAIRAZU”,advanced and will keep advancing

Copyright © 2023 Temairazu, Inc. All rights reserved.

Soon after online hotel booking sites appeared andpeople started to make bookings online, installed
application “TEMAIRAZU!”, the channel manager wasborn. This system enabling centralized management ofmultiple distribution channels have been used by many
accommodation properties.

In 2010, new ASP model channel manager“TEMAIRAZU.NET” was launched. The ability to be usedanywhere by connecting to internet had much improved
convenience and efficiency of this system. Connected tonot only domestic channels but also overseas/global
channels and travel agents. Also, became able toconnect with CRS, being efficient system for getting
bookings of inbound travelers.

With valuable feedbacks from users, new “TEMAIRAZU”
with various additional features was launched in 2015. InJuly 2016, advanced version “TEMAIRAZU YIELD” waslaunched. And in Mar 2020, new version “TEMAIRAZU
mini” was launched. We will always listen to voices ofcustomers and “TEMAIRAZU” will keep advancing.
14

2

Business report

2-3 Application Service Business (Temairazu)
Numbers of foreign visitors to Japan (announced by JNTO)

6,000

Total
Asia total

5,000

In 2017, Japanese Gov. had announced the target of 40 million in 2020 and60 million in 2030 of foreign visitors. The target of 40 million in 220 was notachieved. Target of 60 million in 2030 has not been revised but difficult topredict whether it is achievable or not.

Total number of visitors in year 2022: 3,832,110
Compared to total number of 2019 was -88%
The total number of visitors during Jan to Jun 2023 is 10,711,979, recovering to-35.6% compared to the same period of year 2019.

4,000

3,000

2,000

1,000

2030･･･20032004
2005
2006
200720082009201020
11201220132014201520162017201820192020202120222023.60Unit: 10K
Copyright © 2023 Temairazu, Inc. All rights reserved.

15

22-4

Business report

Application Service Business (Temairazu)

Impact of COVIT-19
Composition of Sales in Application Services Business:n Fixed Monthly Income (Basic monthly charges and option charges)
n Monthly variable income (Communication charges according tothe number of reservations)
Impact︓n Fixed Monthly Income
ü Although there was a certain number of cancellations mainly ofsmall-scale accomodations due to closure etc., the churn rate is on
decreasing trend.
ü New inquiries are on increase.
n Monthly variable income
ü The variable income is on increase due to increasing demand foraccommodation industry.
Result in FY2023︓
n Fixed Monthly Income:
JPY1,405 millionn Monthly Variable Income :JPY 336 millionn Other Income :JPY 30 million
Copyright © 2023 Temairazu, Inc. All rights reserved.

79.3%
19.0%
1.7%
16

2Business report

2-6 Application Service Business (Temairazu)
New system connectivity for improving operational efficiency andconvenience“RemoteLOCK”, smart lock provided by KOZO KEIKAKU ENGINEERING Inc.
” STAYNAVI”, a website specializing in direct booking for accommodations
operated by PEERTO Co., Ltd.
(reducing the time and effort required to register and issue coupons)“suitebook booking engine”, a new feature of cloud based accommodation
operation system “suitebook” provided by SQUEEZE Inc.
“b→dash”, a data marketing solution provided by dataX Inc.
“Payn”, a solution which digitalize the cancelation fee charge and collectiontasks provided by Payn, Inc.
Copyright © 2023 Temairazu, Inc. All rights reserved.

17

2Business report

2-5 Application Service Business (Temairazu)
Expanding sales opportunities for accommodations : Strengthening
the connectivity with distribution channels“Chii-Pla”, a regional-specific booking system platform provided
by NYANGO Co., Ltd.
“HafH”, a travel subscription platform operated by KabuK Style Inc“VHSHUB”, a booking system provided by Hong Kong-based Harvest EliteInternational Ltd.

Increasing direct booking for accommodations: new connectivity
with booking engines etc.
“TabiChat engine”, a booking engine helping accommodations to increase directbookings provided by NinNin, Inc.
“Free Booking links” of Google
Copyright © 2023 Temairazu, Inc. All rights reserved.

18

2Business report

2-7 Application Service Business (Temairazu)

Enhancement of Temairazu functions
Increasing the convenience of Booking Engine system
Connecting “TEMANASHI NEXT”, the Booking Engine provided as an optional
function of TEMAIRAZU, with “JTB Book&Pay”, a booking system with settlement
function provided by JTB BUSINESS INNOVATORS Corp. , to increase theconvenience on payment
UI Design Renewal for Temairazu
To increase the convenience of the operability, completely renewed the userinterface design of Temairazu
Implementation of Plan-Group function
To increase the convenience of rate management, implemented a new function“Plan-Group” that helps the rate management which the operation is different fromaccommodation to accommodation.
Copyright © 2023 Temairazu, Inc. All rights reserved.

19

2Business report

2-8 Report on Application Service Business (Temairazu)

Segment profit（after cost allocation）
YoY +13.3％< Topics >Unit: JPY 1,000

1,306,344
1,153,365

FY2022

FY2023Copyright © 2023 Temairazu, Inc. All rights reserved.

n Increase in number of accommodation bookings
ü Increase of domestic travelers due to ease of
behavioral restrictions and the government’s
national travel assistance programü Increase of inbound travelers due to relaxationof immigration restrictions and termination ofborder control measuresn Although there was a certain number ofcancellations mainly of small-scaleaccommodations due to closure etc., the churnrate is on decreasing trend.
20

2Business report

3 Report on Internet Media Business (Hikaku.com)

Segment profit（after cost allocation）
YoY +72.3％
25,584■Continuous implementation of the following
measures・ Review of ads placement
・ Search Engine Optimization
・ User interface improvements
・ Mobile usability improvements
・ Expansion of contents

14,852

FY2022< Topics >FY2023Copyright © 2023 Temairazu, Inc. All rights reserved.

21

３Forecast and future business

Copyright © 2023 Temairazu, Inc. All rights reserved.

development22

3

FY2024 Forecast and future business development

1Business Forecast
Forecasts taking into account the impact of COVID-19

Unit: JPY 1,000

1,809,499

FY2023 result
FY2024 Forecast

1,928,116

1,331,929 1,297,105

1,333,546

1,302,023

873,814

831,888

+6.6%

-2.6%

-2.4%

-4.8%

Net Sales

Operating Income

Ordinary Income

Net Income

Copyright © 2023 Temairazu, Inc. All rights reserved.

23

3FY2024 Forecast and future business development

2-1 Business Forecast for Application Service Segment

The assumptions used in forecast
p Impact of Spread of COVIT-19 is mitigated.
p Downside risks due to energy and cost-of-living etc price hike.
p Uncertain outlook for Chinese travelers, which had accounted for much of
the inbound business.
ü Re-expansion of COVIT-19
ü Slowing economic growth prospects
p Slow recovery in accommodation demand for business use.
p Plans for new accommodation properties, including small properties,
remain at a certain level.
Due to various factors, inbound demand is not expected to return to preCOVIT-19 levels until spring 2025 at the earliest, and in FY2024, theaccommodation industry is expected to continue to be revitalized by thereturn of accommodation demand.
Net sales and operating income are projected based on this assumption.
Copyright © 2023 Temairazu, Inc. All rights reserved.

24

3FY2024 Forecast and future business development

2-2Future business development of Application Service Business (Temairazu)• Responding to returning demand.
• Aiming for products that will contribute to further sales
expansion and operational efficiency, which will help secure
the revenues of accommodation properties.

Connecting with sales
channels

Connecting with varioussystems

Strengthening sales anddevelopment capabilities

Strengthening Temairazu
functions

Copyright © 2023 Temairazu, Inc. All rights reserved.

25

3FY2024 Forecast and future business development

2-3 Profit forecast on Application Service Business (Temairazu)

Segment profit（after cost allocation）

1,306,344
1,270,171

Predicting-2.8％ decline YoY

1,153,365

FY2022

FY2023

FY2024(Forecast)
Unit: JPY 1000

Copyright © 2023 Temairazu, Inc. All rights reserved.

26

3

FY2024 Forecast and future business development

3 Profit forecast on Internet Media Business(Hikaku.com)

Segment profit（after cost allocation）

26,93325,584

Predicting
5.3% increase YoY
・ Search Engine Optimization

14,852・ User interface improvements
・ Improve mobile usability
・ Expansion of contents

FY2022

FY2023

FY2024(Forecast)
Unit: JPY 1000

Copyright © 2023 Temairazu, Inc. All rights reserved.

27

3FY2024 Forecast and future business development

4Key Investment Areas•

Returning
DemandResponding to the returning demand for accommodation(Application Service Business）
Increase sales and development personnel to strengthen organizational structure.
Help our customers to take in the returning demands.
→ acquire new contracts and provide solid support to customers→ System enhancements in anticipation of an increase in the number ofaccommodation reservations→ strengthen product capabilities by developing new functions and improving
usability through enhancements(value-added improvement of products)

・ New initiatives (new services, new businesses) for mid- to long-term growth
Something
New→ Utilize our strength of "centralized information management” and engage in
new and interesting things→ Create a new business portfolio★We plan to invest more than 10% of ordinary income in those two areas over thenext 2~3 years.
Copyright © 2023 Temairazu, Inc. All rights reserved.

28

3FY2024 Forecast and future business development

5 Dividend (forecast)Continued target of 22.5% dividend payout ratio
Annual dividend for the year ending June 2024
is expected to be total JPY 29.0Trend of dividend per ordinary share (Unit: JPY)
30.5

29.0

27.5
27.0
26.5

FY2020

FY2021

Copyright © 2023 Temairazu, Inc. All rights reserved.

FY20212

FT2023(Planned)

FY2024(Forecast)

29Company Profile
Trade Name

Temairazu, Inc.

Establishment

August 4, 2003

Account closing monthJune

Capital fund

JPY 717,041,935 (As of Jun 30, 2023)

Number of shares issued

6,479,834 (As of Jun 30, 2023)

Share trading unit

100 (As of Jun 30, 2023)

Address

7F Ebisu NR Bld, 1-21-3 Ebisu, Shibuya-ku, Tokyo JAPAN

Securities code2477 (Prime Market of the Tokyo Stock Exchange)

Auditing firm

Deloitte Touche Tohmatsu LLC

Websites“HP”“TEMAIRAZU”“Hikaku.com”

Copyright © 2023 Temairazu, Inc. All rights reserved.

https://www.temairazu.co.jp/
https://www.temairazu.com/
https://www.hikaku.com/
30

Notes on this Financial Result document
This material is intended to provide information on the performance of the financial
results of the fiscal year ending June 2023. In no way is the information intended to solicit
an investment in securities issued by the Company. The information is prepared basedon data as of the end of June 2023. Accordingly, the opinions or forecasts on thispresentation are dependent on the judgment of the Company at the time of thepreparation, and do not guarantee nor pledge accuracy or integrity of the information.
In addition, such opinions or forecasts may be changed without notice.
IR Contact
Temairazu, Inc. Corporate Planning Division
Tel: +81 (0)3-5447-6690 email: ir@temairazu.com
IR Information
https://www.temairazu.co.jp/ir/news
Press Release
https://www.temairazu.co.jp/press
Copyright © 2023 Temairazu, Inc. All rights reserved.

31