FY 2023 (Jul 2022-Jun 2023) 1Q

Financial Result

Contents

Summary of the Results for FY2023 1Q

p.2

Business report of FY2023 1Q
and future business development

p.10

Copyright © 2022 Temairazu, Inc. All rights reserved.

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1 Summary of the Results

Copyright © 2022 Temairazu, Inc. All rights reserved.

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１

Summary of the Result for FY 2023 1Q

1Outline of the financial results
Net Sales： 8.5％ up YoY

Operating Income ：14.2% up YoY

FY2023 1Q
Results

Profitmargin onsales

Result of same
period last year

Difference(amount)

Difference(percentage)

Net Sales

JPY 433,949 K－

JPY 399,869 K

JPY 34,080 K

8.5％

Operating
IncomeJPY 318,659 K

73.4%

JPY 279,061 K

JPY 39,598 K

14.2％

Ordinary
IncomeJPY 319,126 K

73.5%

JPY 282,338 K

JPY 36,788 K

13.0％

Net Income

JPY 213,536 K

49.2%

JPY 190,187 K

JPY 23,349 K

12.3％

Net earnings
per share

JPY 32.96－

JPY 29.35

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１2

Summary of the Result for FY 2023 1Q

Sales composition ratio

1.5%

2.9%

5.1%

3.8%

3.2%2.2%

1.7%

1.9%

1.6%

1.7%

1.9%

2.1%

98.5%

97.1%

94.9%

96.2%

96.8%

97.8%

98.3%

98.1%

98.4%

98.3%

98.1%

97.9%

Internet Media Business

Application Service Business

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

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１3

Summary of the Result for FY 2023 1Q

Sales and profit per segment

Application Service Segment:
Sales and profits increased and profit margin after cost allocation was 73.7%
Internet Media Segment:
Sales and profits increased and profit margin margin after cost allocation was 62.5%
Segment Profit（After cost allocation)

Profit margin on sales（After cost allocation)

JPY 347,715 K(JPY 313,101 K)

81.8％(73.7％)

JPY 8,896 K

JPY 6,210 K(JPY 5,557 K)

69.8％(62.5％)-- JPY 35,266 K-

JPY 433,949 K

JPY 318,659 K

73.4％

Segment Sales

Application ServiceBusiness
Internet Media Business

JPY 425,052 K

Adjustment
TOTAL

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１

Summary of the Result for FY 2023 1Q

4 Sales trend of Application Service segment(Temairazu)
Unit: JPY 1,000
450000Jul – Dec 2020] Go To Travel Campaign(Tokyo included from Oct 2020)

YoY: +8.3% QoQ : +4.3%+4% compared to FY2020 1Q(before COVIT-19)

Apr – May 2020: The 1st announcement of State of Emergency
Dec 2019: The 1st case of COVIT-19 reported

400000350000300000250000200000

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１

Summary of the Result for FY 2023 1Q

5

Breakdown of sales cost and SG&A

Sales Cost

Advertising Cost

Labor CostCommissions

OthersUnit : JPY 1,000

Including cost for market change(about JPY 15 million.)

30,50929,955

3,792
30,60531,16730,21930,12731,92230,70933,42035,0762,302

31,232

48,215

2,333

1,749

3,306

1,391

1,807

789

442
3,045

1,735

36,505845

49,28047,03248,00149,676

51,29551,25543,67848,95540,49040,84944,46635,75523,38917,23018,689FY2020 2Q

23,284FY2020 3Q

20,702

13,61015,598FY2020 4Q

FY2021 1Q

16,891

18,540
FY2021 2Q

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17,435

14,911
FY2021 3Q

16,854

20,223

17,794

17,20821,708

16,96818,275

15,59817,187

FY2021 4Q

FY2022 1Q

FY2022 2Q

20,62911,610
FY2022 3Q

FY2022 4Q

15,381
FY2023 1Q

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１6

Summary of the Result for FY 2023 1Q

Progress rate against full-year forecast

FY2023 1Q

FY2022 Forecast

Progress Rate

Net Sales

JPY 433,949 K

JPY 1,710,759 K

25.4％

Operating Income

JPY 318,659 K

JPY 1,134,682 K

28.1％

Ordinary Income

JPY 319,126 K

JPY 1,135,985 K

28.1％

Net Income

JPY 213,536 K

JPY 749,936 K

28.5％

JPY 32.96

JPY 115.74

Net earnings
per share

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１

Summary of the Result for FY 2023 1Q

7Balance Sheet
End of FY2022

End of FY2023 1Q

JPY 5,047,336 K

JPY 5,090,563 K

Other current
assetsJPY 275,309 K

JPY 269,591 K

Fixed assets

JPY 55,674 K

JPY 53,508 K

Deferred tax assets

Total Assets

JPY 5,378,320 K

JPY 5,413,662 K-

JPY 289,120 K

JPY 208,110 K

Income taxes
payable- JPY 99,488 K

JPY 5,205,552 K

Recording of net
income+ JPY 213,536 K

Dividend of surplus- JPY 97,184 K

CashLiabilities

Capital stock
Total liabilities /net assets

Equity ratio

JPY 5,089,200 K

Key factors of change
JPY 43,226 K- JPY 705 K

JPY 5,378,320 K

JPY 5,413,662 K

-

94.6%

96.2%

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2

Business report andfuture business development

Copyright © 2022 Temairazu, Inc. All rights reserved.

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２

Business report and future business development

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.

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２

Business report and future business development

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.
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２Business report and future business development

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 improvedconvenience 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.

13２Business report and future business development

2-3 Report on Application Service Business (Temairazu)

System connectivity for reducing labor shortages
and better operational efficiency at properties“RemoteLock”, the smart lock provided by KOZO KEIKAKU ENGINEERING Inc.

System connectivity aiming for properties’ increase of profit by direct booking“TabiChat Engine”, the booking engine provided by NinNin, Inc.

Preparing for increasing inbound demand“NHSHUB”, the booking system provided by Hong Kong based Harvest EliteInternational Ltd.
Copyright © 2022 Temairazu, Inc. All rights reserved.

14２Business report and future business development

2-4 Temairazu 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 numberof reservations)
Impact：◼ Fixed Monthly Income→ Cancellations mainly of small-scale properties are still occurring but thenumber is down.
◼ Monthly variable income→ Increased number of reservations due to increased activities of people,including the first summer vacation in three years with no activities restrictions.
Result in FY2022 1Q：◼ Fixed Monthly Income:
JPY 346 million◼ Monthly variable Income : JPY 73 million◼ Other Income :JPY 5.6 million
Copyright © 2022 Temairazu, Inc. All rights reserved.

81.4%
17.3%
1.3%
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２2-5

Business report and future business development

Report on Application Service Business (Temairazu)

Segment profit（after cost allocation）
YoY +13.3％(QoQ +6.2%)

Impact of COVIT-19
313,101276,434

・Cancelation due to closure etc. of mainly
small-scale properties is still occurring, but
the number is decreasing.
・Despite of occurrence of 7th wave of COVID-19
spread, no activities restriction was laid. People
became more active and number ofreservations increased resulting in increase ofvariable income.

FY2022 1Q

FY2023 1Q

Unit: JPY 1,000
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２Business report and future business development

2-6 Future business development of Report on

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 andoperational efficiency, which will help secure the revenues ofaccommodation properties

Connecting with
distribution channels

Connecting with varioussystems

Strengthening sales andcustomer support forces

Strengthening TEMAIRAZU
functions

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２Business report and future business development

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

Segment profit（after cost allocation）
YoY +111.6％(QoQ -14.7%)

5,557
Unit: JPY 1,000■Continuous implementation of the followingmeasures
・ Review of ad placement
・ Search Engine Optimization
・ User interface improvements
・ Improved mobile usability

2,626

FY2022 1Q

FY2023 1Q

Copyright © 2022 Temairazu, Inc. All rights reserved.

■Although lower than peak demand for online
shopping due to staying at home decreased,sales increased YoY and also compared to1Q before corona outbreak.
The effects of the continued measures so far
are beginning to emerge.
18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

Website“TEMAIRAZU”“Hikaku.com”

Copyright © 2022 Temairazu, Inc. All rights reserved.

https://www.temairazu.com/
https://www.hikaku.com/
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Notes on this Financial Result document
This material is intended to provide information on the performance of thefinancial results of the 1st quarter of fiscal year ending June 2023. In no way is
the information intended to solicit an investment in securities issued by theCompany. The information is prepared based on data as of the end of Sep
2021. 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.

IR Contact

Temairazu, 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
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