F i n a n c i a l Re s u l t sfo r t h e F i s c a l Ye a r 2 0 2 2（July 2021 – June 2022)

Contents

Summary of the Results for FY 2022

p.2

Business report of FY 2022

p.11

FY 2023 Forecasts
and future business development

Copyright © 2022 Temairazu, Inc. All rights reserved.

p.22

1

1 Summary of the Results

Copyright © 2022 Temairazu, Inc. All rights reserved.

2

１

Summary of the Result for FY 2022

1Outline of the financial results

Net Sales： 1.3％ increase YoY

Operating Income ：2.1% increase YoYFY 2022 total
Results

Profitmargin onsales

Result of same
period last year

Difference(amount)

Difference(percentage)

Net Sales

JPY 1,631,008 K－

JPY 1,610,382 K

JPY 20,626 K

1.3％

Operating
IncomeJPY 1,168,218 K

71.6%

JPY 1,144,273 K

JPY 23,944 K

2.1％

Ordinary
IncomeJPY 1,179,352 K

72.3%

JPY 1,147,529 K

JPY 31,823 K

2.8％

Net Income

JPY 782,582 K

48.0%

JPY 758,413 K

JPY 24,169 K

3.2％

Net earnings
per share

JPY 120.78－

JPY 117.06

Copyright © 2021 Temairazu, Inc. All rights reserved.

－－3

１

Summary of the Result for FY 2022

2

Sales composition ratio

1.5%

1.5%

2.9%

5.1%

3.8%

3.2%

2.2%

1.7%

1.9%

1.6%

1.7%

1.9%

98.5%

98.5%

97.1%

94.9%

96.2%

96.8%

97.8%

98.3%

98.1%

98.4%

98.3%

98.1%

Internet Media Business
Application Service Business

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

Copyright © 2021 Temairazu, Inc. All rights reserved.

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１3

Summary of the Result for FY 2022

Sales and profit per segment

Application Service Segment:
sales and profits slightly increased and profit margin after cost allocation was 71.6%
Internet Media Segment:
sales and profits declined and profit margin margin after cost allocation was 48.1%
Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 1,284,097 K(JPY 1,153,365 K)

80.2％(72.1％)

JPY 30,881 K

JPY 17,319 K(JPY 14,852 K)

56.1％(48.1％)--JPY 133,199 K-

JPY 1,631,008 K

JPY 1,168,218 K

71.6％

Segment SalesApplication Service

Hikaku.com

JPY 1,600,126 KInternet MediaTOTAL

Copyright © 2021 Temairazu, Inc. All rights reserved.

5

１

Summary of the Result for FY 2022

4 Sales trend of Application Service segment(Temairazu)
Jul – Dec 2020] Go To Travel Campaign(Tokyo included from Oct 2020)
Apr – May 2020: The 1st announcement of State of Emergency
Dec 2019: The 1st case of COVIT-19 reported

YoY: +2.2%(QnQ: +7.4%)

Unit: JPY 1,000

Copyright © 2021 Temairazu, Inc. All rights reserved.

6

１

Summary of the Result for FY 2022

5

Breakdown of sales cost and SG&A
Including cost for market change(about JPY 15 million.)

Sales Cost

Advertising Cost

Labor Cost

Commissions

OthersUnit : JPY 1000

29,95530,5093,792

28,79230,60530,21930,12731,92230,70933,42035,076

2,302
3,003

31,167

31,232

48,215

2,333

1,749

3,306

1,391

1,807

789

442
3,045

1,735
49,28049,11847,03248,00149,676

51,29551,25543,67848,95540,49044,46635,75523,38921,351

14,535
FY2020 1Q

17,23018,689FY2020 2Q

23,284FY2020 3Q

20,702

13,61015,598FY2020 4Q

FY2021 1QCopyright © 2021 Temairazu, Inc. All rights reserved.

16,891

18,540
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

20,62911,610
FY2022 3Q

FY2021 4Q

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１6

Summary of the Result for FY 2022

Progress rate against full-year forecast
Unit: JPY1,000
1,602,017

101.8％Net Sales

1,631,008

Operating
Income106.0%

1,102,343

Ordinary
Income106.9％

1,103,005

Net
earnings
per share

107.5％

1,168,218

1,179,352

728,032

782,582

FY2021 Forecast(announced on Jul 30, 2021)
Copyright © 2021 Temairazu, Inc. All rights reserved.

FY2022 Result8１7

Summary of the Result for FY 2022

Balance Sheet
End of FY 2021

End of FY 2022

JPY 4,484,099 K

JPY 5,047,336 K

Other current
assetsJPY 253,184 K

JPY 275,309 K

Accounts
receivable+ JPY 25,399 K

Fixed assets

JPY 61,211 K

JPY 55,674 K

Deferred tax assets- JPY 4,980 K

Total Assets

JPY 4,798,494 K

JPY 5,378,320 K-

JPY 316,632 K

JPY 289,120 K

Income taxes
payable- JPY 12,450 KCapital stock

JPY 4,481,862 K

JPY 5,089,200 K

Net Income
Dividend of surplus+ JPY 782,582 K- JPY 168,461 K

Total liabilities /net assets

JPY 4,798,494 K

JPY 5,378,320 K-Equity ratio

93.4%

94.6%

-ROE

18.1％

16.4％

ROA

25.3％

23.2％

Cash

Liabilities

Copyright © 2021 Temairazu, Inc. All rights reserved.

Key factors of change+ JPY 563,237 K

9１8Summary of the Result for FY 2022

Statements of Cash Flows
End of FY 2022

Variable Factors

Operating CF

JPY 730,587 K

Net income before income taxIncome taxes payment

JPY 1,179,352 K- JPY 405,171 K

Investing CF

JPY 1,258 K

Collection of security deposits+ JPY 1,258 K

Financial CF- JPY 168,608 K

Dividend payments- JPY 168,187 K

Changes in CF

JPY 563,237 K-

CF balance at
beginning of FY

JPY 4,484,099 K-

CF balance at endof FY

JPY 5,047,336 K-

JPY 731,845 K-

Free Cash Flow

*Free Cash Flow is calculated by adding Operating CF and Investing CF
Copyright © 2021 Temairazu, Inc. All rights reserved.

102Business report

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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 © 2022 Temairazu, Inc. All rights reserved.

122Business report

2-1 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 © 2022 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.
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 © 2022 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. In
July 2016, advanced version “TEMAIRAZU YIELD” waslaunched. And in Mar 2020, new version “TEMAIRAZUmini” was launched. We will always listen to voices ofcustomers and “TEMAIRAZU” will keep advancing.

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2

Business report

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

6,000
総数Total
5,000

Asia Total
アジア計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 2021: 245,900
4,000

Compared to total number of 2020 was -94.0%
Compared to total number of 2019 was -99.2%
However, the total number of visitors during Jan to Jun 2022 is 507,600, already morethan double of total in year 2021.

3,000

2,000

1,0000Unit: 10K

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ･･･ 2030

Copyright © 2022 Temairazu, Inc. All rights reserved.

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22-4

Business report

Application Service Business (Temairazu)

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 tothe number of reservations)
Impact： Fixed Monthly Income→ Although the number is decreasing, the cancellations mainly ofsmall-scale properties are still occurring.
 Monthly variable income→ There has been a slight recovery in the number of reservations but far
from full recovery of the demand for accommodation industry.
Result in FY2022：
 Fixed Monthly Income: Monthly variable Income : Other Income :Copyright © 2022 Temairazu, Inc. All rights reserved.

JPY1,357 million
JPY 207 million
JPY 35 million

84.8%13.0%
2.2%
162Business report

2-5 Application Service Business (Temairazu)
Strengthening the connectivity with domestic distribution channels:
Expanding sales opportunities for properties“goodroom HOTEL PASS”, hotel-residing subscription service
by goodroom co., ltd.
“NOWROOM”, rental platform for furnished condominiums, hotels, and sharehouses by NOW ROOM, Inc“atta”, a travel search and booking service that uses big data and AI to "forecast
good deals“ operated by atta Inc.
“Web Direct system”, the booking system for 2 brands, “Web Collection Plus” and“My Yado Online” operated by Nippon Travel Agency Co., Ltd.
“e-entry system”, the reservation management system of JALPAK Co., Ltd..

Booking site for accommodation and dynamic packaging,operated by H.I.S. Co., Ltd.
Copyright © 2022 Temairazu, Inc. All rights reserved.

17

2Business report

2-6 Application Service Business (Temairazu)

New system connectivity for improving operational efficiency andtransition to contactless solutions“talkappi”, AI powered ChatBot provided by ActiValues, Inc.

”tuna”, the cloud system based on CRM function provided by 7garden inc.

"Smart Hotel Manager“, an AI hotel reception management system basedon facial recognition provided by SMART HOTEL SOLUTIONS Co., Ltd.

“Tabiq”, SaaS type check-in system provided by Reqrea, inc.

Copyright © 2022 Temairazu, Inc. All rights reserved.

182Business report

2-7 Application Service Business (Temairazu)

Enhancement of Temairazu functions
Release of Renewed Booking Engine system“TEMANASHI NEXT”, the fully renewed version of Booking Engine system“TEMANASHI” was launched as an optional function of TEMAIRAZU.

Making “Plan Batch Management” function of Temairazu avaialble for Booking.com" Plan Batch Management“ is a convenient function that property staffs can create
and edit the plans on TEMAIRAZU and register to multiple booking sites at once. Thisfunction is made available for Booing.com also.

Release of new optional function “No-show Settlement”“No-show Settlement”, an optional function which properties can use to collect thecancellation fees when “no-show” or cancellation subject to cancellation fee hasoccurred.

Copyright © 2022 Temairazu, Inc. All rights reserved.

192

Business report

2-8 Report on Application Service Business (Temairazu)

Segment profit（after cost allocation）
YoY +2.8％1,121,561

1,153,365

Impact of COVIT-19
・Despite the impact of the prolonged spread of
COVIT-19, there has been a slight recovery in
the number of reservations.
・The cancellations mainly of small-scale
properties are still occurring, but the number isdecreasing.
Unit: JPY 1,000
FY2021

FY2022

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2

Business report

3 Report on Internet Media Business (Hikaku.com)

Segment profit（after cost allocation）
YoY -34.6％
22,711

Unit: JPY 1,000

14,852

FY2021

FY2022

Copyright © 2022 Temairazu, Inc. All rights reserved.

■Traffic decreased as demand for online
shopping due to staying at home decreased■Continuous implementation of the followingmeasures
・ Review of ads placement
・ Search Engine Optimization
・ User interface improvements
・ Mobile usability improvements
・ Expansion of contents21

３Forecast and future business

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development22

3

FY2023 Forecast and future business development

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

1,631,008

1,710,759

FY2022 result
FY2023 Forecast

1,168,218

Unit: JPY 1,0001,134,682

1,179,352

1,135,985

782,582749,936

+4.9%

-2.9%

-3.7%

-4.2%

Net Sales

Operating Income

Ordinary Income

Net Income

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23

3FY2023 Forecast and future business development

2-1 Business Forecast for Application Service Segment

Impact of COVIT-19
We expect the full recovery to the pre-COVIT-19 level of the inbounddemands for accommodation industry will be after spring of 2025 due tovarious factors such as below:
・Travel restrictions to Japan are being eased, but not completely lifted.
・Restrictions(in some cases lockdown) have not been lifted in somecountries or regions.
・In July 2022, the seventh wave of the outbreak occurring (Japan recorded
the highest number of new cases in the world).
・In addition to COVIT-19, the situation in Russia and Ukraine has caused a
sharp rise in resource prices.
For the fiscal year ending June 30, 2023, the revitalization of accommodationindustry will be mainly by the returning demand from domestic travel.
Net sales and operating income are projected based on this assumption.
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24

3FY2023 Forecast and future business development

2-2Future business development of Application Service Business (Temairazu)• Responding to returning demand of accommodation which
had been low due to the COVIT-19.
• 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 © 2022 Temairazu, Inc. All rights reserved.

25

3FY2023 Forecast and future business development

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

Segment profit（after cost allocation）

1,153,365
1,121,561

FY2021

1,118,506

FY2022Predicting
3.0％ decline YoY

FY2023(Forecast)

Unit: JPY 1000
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26

3

FY2023 Forecast and future business development

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

Segment profit（after cost allocation）

Predicting
8.9％ increase YoY

22,711

14,852

16,175・ Search Engine Optimization
・ User interface improvements
・ Improve mobile usability

・ Expansion of contentsFY2021

FY2022

FY2023(Forecast)

Unit: JPY 1000
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27

3

FY2023 Forecast and future business development

4Key Investment Areas•Returning
DemandResponding to the returning demand for accommodation which had declined due
to COVIT-19 （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- preparing for recovery in accommodation demand by strengthening oursystems(inc. infrastructure)- strengthen product capabilities by developing new functions and improving
usability through enhancements

・ New initiatives (new services, new businesses) for mid- to long-term growth
Something
NewEstablish TEMAIRAZU incubation team
→ A team to work on new and interesting things by utilizing our strength ofcentralized information management★Investment in these two areas will begin in the fiscal year ending June 30, 2023.
We plan to invest more than 10% of profits in those two areas over the next 2~3 years.
Copyright © 2022 Temairazu, Inc. All rights reserved.

283

FY2023 Forecast and future business development

5 Dividend (forecast)Continued target of 22.5% dividend payout ratio
Annual dividend for the year ending June 2023
is expected to be total JPY 26.5
Trend of dividend per ordinary share (Unit: JPY)
26.5

27.0

27.5

FY2020

FY2021

FT2022(Planned)

26.5

20.0

FY2019Copyright © 2022 Temairazu, Inc. All rights reserved.

FY2023(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, 2022)Number of shares issued

6,479,834 (As of Jun 30, 2022)

Share trading unit

100 (As of Jun 30, 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

Websites“TEMAIRAZU”“Hikaku.com”

Copyright © 2022 Temairazu, Inc. All rights reserved.

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 thefinancial results of the fiscal year ending June 2022. In no way is the information

intended to solicit an investment in securities issued by the Company. The
information is prepared based on data as of the end of June 2022.
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 © 2022 Temairazu, Inc. All rights reserved.

31

IR ContactTemairazu, Inc. Corporate Planning Division
Tel: +81 (0)3-5447-6690 email: ir@temairazu.com
IR Information

https://www.temairazu.com/ir/news
Press Release

https://www.temairazu.com/press