FY 2023 (Jul 2022-Jun 2023) 3Q

Financial Result
Copyright © 2023 Temairazu, Inc. All rights reserved.

Contents

Summary of the Results for FY2023 3Q

p.2

Business report of FY2023 3Q
and future business development

p.10

Copyright © 2023 Temairazu, Inc. All rights reserved.

1

1 Summary of the Results

Copyright © 2023 Temairazu, Inc. All rights reserved.

2

1 Summary of the Result for FY 2023 3Q

1Outline of the financial results
Net Sales： 11.3% up YoY

Operating Income ：14.8% up YoY

FY2023 3QResultsProfitmargin onsales

Result of sameperiod last year

Difference(amount)

Difference(percentage)

Net Sales

JPY 1,350,121 K－

JPY 1,213,587 K

JPY 136,533 K

11.3%

Operating
IncomeJPY 995,151 K

73.7%

JPY 866,762 K

JPY 128,389 K

14.8%

Ordinary
IncomeJPY 996,600 K

73.8%

JPY 875,120 K

JPY 121,480 K

13.9%

Net Income

JPY 644,173 K

47.7%

JPY 567,963 K

JPY 76,209 K

13.4%

Net earnings
per share

JPY 99.42－

JPY 87.66

Copyright © 2023 Temairazu, Inc. All rights reserved.

－－3

1 Summary of the Result for FY 2023 3Q

2Sales composition ratio

5.1%

3.8%

3.2%

2.2%

1.7%

1.9%

1.6%

1.7%

1.9%

2.1%

2.1%

2.4%

94.9%

96.2%

96.8%

97.8%

98.3%

98.1%

98.4%

98.3%

98.1%

97.9%

97.9%

97.6%

Hikaku.com
Temairazu

FY2020 4Q FY2021 1Q FY2021 2Q FY2021 3Q FY2021 4Q FY2022 1Q FY2022 2Q FY2022 3Q FY2022 4Q FY2023 1Q FY2023 2Q FY2023 3Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

4

1 Summary of the Result for FY 2023 3Q

3Sales and profit per segment

In Temairazu segment, sales and profits increased and profit margin was 82.1%

In Hikaku.com segment, sales and profits increased and profit margin was 74.8%

Segment SalesTemairazu

JPY 1,317,882 K

Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 1,082,475 K(JPY 973,115 K)

82.1%(73.8%)

Hikaku.com

JPY 32,239 K

JPY 24,099 K(JPY 22,035 K)

74.8%(68.3%)

Adjustment--JPY 111,423 K-

JPY 1,350,121 K

JPY 995,151 K

73.7%

TOTAL

Copyright © 2023 Temairazu, Inc. All rights reserved.

51 Summary of the Result for FY 2023 3Q

4Sales trend of Application Service segment(Temairazu)
YoY: +11.3%

Unit: JPY 1,000+6% compared to FY2020 3Q

JPY 1,317,882 K+6.0%450000

JPY 1,242,960 K
Dec 2019: The 1st case of
COVIT-19 was reported+11.3%
JPY 1,192,646 K

400000350000300000250000Jul – Dec 2020] Go To Travel Campaign(Tokyo included from Oct 2020)

Apr – May 2020: The 1st announcementof State of Emergency

200000

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6

1 Summary of the Result for FY 2023 3Q5Breakdown of sales cost and SG&A
Sales Cost
Labor Cost
OthersAdvertising Cost
Commissions

Unit : JPY 1,000

30,60531,16730,12730,21931,92230,70933,42035,076
31,232

2,333

1,749

1,391

3,306

1,807

789
3,045

1,735
47,03248,001

51,29549,676

51,25543,67848,95540,49017,230442

36,96934,821

2,038

2,054

40,84945,69247,436

21,70818,73015,381

17,509FY2023 1Q

FY2023 2Q

36,505845

44,466

20,702

16,891

13,61015,59818,540

FY2020 4Q

FY2021 1Q

FY2021 2Q

16,85417,435

17,794

17,208
16,96818,275

15,59817,187

FY2021 4Q

FY2022 1Q

FY2022 2Q

14,911
FY2021 3Q

20,223Copyright © 2023 Temairazu, Inc. All rights reserved.

11,610
FY2022 3Q

20,629FY2022 4Q

19,971

14,455
FY2023 3Q

7

1 Summary of the Result for FY 2023 3Q

6Progress rate against full-year forecast

FY2023 3Q

FY2023 Forecast

Progress Rate

JPY 1,350,121 K

JPY 1,710,759 K

78.9%

Operating Income

JPY 995,151 K

JPY 1,134,682 K

87.7%

Ordinary Income

JPY 996,600 K

JPY 1,135,985 K

87.7%

Net Income

JPY 644,173 K

JPY 749,936 K

85.9%

JPY 99.42

JPY 115.74

Net Sales

Net earnings
per share

Copyright © 2023 Temairazu, Inc. All rights reserved.

-8

1 Summary of the Result for FY 2023 3Q

7Balance Sheet
End of FY2022

End of FY2023 3Q

JPY 5,047,336 K

JPY 5,548,396 K-

Other current
assetsJPY 275,309 K

JPY 214,147 K-

Fixed assets

JPY 55,674 K

JPY 64,377 K

Deferred tax assets

Total Assets

JPY 5,378,320 K

JPY 5,826,922 K

Liabilities

JPY 289,120 K

JPY 271,951 K

CashCapital stockTotal liabilities /net assets
Equity ratio

JPY 5,089,200 K

JPY 5,554,970 K

JPY 5,378,320 K

JPY 5,826,922 K

94.6%

95.3%

Copyright © 2023 Temairazu, Inc. All rights reserved.

Key factors of change

JPY 1,963 K-

Income taxes
payable- JPY 44,565 K

Recording of net
incomeJPY 644,173 K

Dividend of surplus- JPY 181,417 K

9

2Business report andfuture business development

Copyright © 2023 Temairazu, Inc. All rights reserved.

10

2 Business report

1

Business Summary of each segment
Temairazu segment

Development & provision ofchannel manger “TEMAIRAZU”
seriesHikaku.com segment

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.

112 Business report

2-1 Temairazu segment (Application service segment)
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 update

Accessible fromanywhere with internet
connection

Short 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.

Access Temairazu from the any
places where internet
connection is available. Sameaccount can be used fromdifferent computers as data isstored in dedicated server.
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2 Business report

2-2 Temairazu segment (Application service segment)
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 to
not 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. In
July 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.
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2 Business report

2-3 Report on Temairazu segment(Application service segment)

Segment profit（after cost allocation）
YoY +13.4％

Unit: JPY 1,000

973,115(QoQ +0.8%)

Impact of COVIT-19
・Transition to 'Living with Covid-19’
・New Year holiday and Spring Break with no858,358

restrictions on activities for the first time in 3 years
・Recovery of accommodation demand by inboundtravelers⇒ Monthly variable income increased mainly due
to increased demand for travel
FY2022 3Q

FY2023 3Q

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14

2 Business report

2-4 Temairazu segment (Application service segment)

Improving convenience and operational efficiency■Connected with “STAYNAVI,” a website specializing in direct bookings for accommodation
properties, provided by Peerto. Inc. This will improve convenience for reservation holders andincrease operational efficiency at accommodation properties.

Sales & Promotion Activities◼ Exhibited at HCJ2023 (International Hotel Restaurant Show)
Japan's largest hospitality and foodservice exhibition, held at Tokyo Big Sight from February 7to 10, 2023. According to the organizer's announcement, the number of visitors increased

significantly from 28,328* last year to 46,457 this year. Our booth also attracted many visitors.
(*Including the number of visitors to other concurrent exhibitions.)

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15

2 Business report

2-5Temairazu segment (Application service segment)

Impact of COVIT-19
Composition of Sales in Application Services Business:◼ Fixed Monthly Income (Basic monthly charges and option charges)◼ Monthly variable income (Communication charges according to the number ofreservations)
Impact：■ Fixed Monthly Income- Continued decline in number of cancellations directly attributable to COVIT-19- New inquiries are on the increase trend■Monthly variable income- Increase of monthly variable income due to the recovery of theaccommodation demands.
Result in FY2023 3Q(Cumulative total)：■Fixed Monthly Income:

JPY 1,048 million

79.5%■Monthly variable Income :JPY 245 million■Other Income :JPY 24 million

18.6%
1.8%

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16

2 Business report

2ｰ6 Future business development of Temairazu segment• Responding to the growing demand for return demand due to thetransition to 'Living with Covid-19’.
• Aiming to create a product that contributes to further expansion of sales
channels and operational efficiency, which will lead to securing revenue
for accommodation properties.

Connecting
Connecting with
distribution channels
channels
distribution

Connecting
Connectingwith
with various
varioussystems
systems

Strengthening sales
sales andStrengtheningandcustomer support
support forces
customerforcesStrengthening
Strengthening TEMAIRAZUTEMAIRAZU
functionalities
functionalities

Copyright © 2023 Temairazu, Inc. All rights reserved.

17

2 Business report

3 Report on Hikaku.com segment (Internet Media segment)

Segment profit（after cost allocation）
YoY +162.2%

Unit: JPY 1,000

22,0358,404

FY2022 3Q

FY2023 3Q

Copyright © 2023 Temairazu, Inc. All rights reserved.

■Continuous implementation of thefollowing measures
・ Review of ads placement
・ Search Engine Optimization
・ User interface improvements
・ Improving mobile usability
・ Further enhancing the contents

18Company Profile
Trade Name

Temairazu, Inc.

Establishment

August 4, 2003

Account closing month

June

Capital fund

JPY 717,041,935 (As of Dec 31, 2022)

Number of shares issued

6,479,834 (As of Dec 31, 2022)

Share trading unit

100（As of Dec 31, 2022）

Address

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

Securities code

2477 (Prime Market of the Tokyo Stock Exchange)

Auditing firm

Deloitte Touche Tohmatsu LLC

Website“TEMAIRAZU”“Hikaku.com”

Copyright © 2023 Temairazu, Inc. All rights reserved.

https://www.temairazu.com/
https://www.hikaku.com/
19

Notes on this Financial Result document

This material is intended to provide information on the performance of thefinancial results of the 3rd quarter of fiscal year ending June 2023. In no way isthe information intended to solicit an investment in securities issued by theCompany. The information is prepared based on data as of the end of Mar 31,
2023. Accordingly, the opinions or forecasts on this presentation are dependent
on the judgment of the Company at the time of the preparation, and do notguarantee nor pledge accuracy or integrity of the information. In addition,such opinions or forecasts may be changed without notice.

Copyright © 2023 Temairazu, Inc. All rights reserved.

20

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.