FOR TRANSLATION PURPOSE ONLY
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.
In the event of any discrepancy between this translated version and the original Japanese version, the latter shall prevail.
August 13, 2024

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year ending March 31, 2025 (FY03/2025)[Japanese GAAP]
Company name:
EKITAN & Co., Ltd.
Stock exchange listing: Tokyo
Securities code:
3646
URL:
https://ekitan.co.jp/
Representative:
President, CEO and COO
Naoyuki Kaneda
Inquiries:
Director and CFO
Katsuya Kojima
Scheduled date to commence dividend payments:
N/A
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:No

TEL: 81-3-6367-5951(Amounts less than one mil. yen are rounded down)

1. Consolidated financial results of the first quarter of FY03/2024 (April 1, 2023 – December 31, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Net sales

Operatingprofit (loss)

EBITDA*

Ordinary
profit (loss)

Net profit (loss) attributableto owners of parent

mil. yen%mil. yen%mil. yen%mil. yen%mil. yen

%

859
999

(14.0)
29.6

(2)
12

－
(82.9)

(19)
(42)

－
－

(12)
(41)

－
－

(18)
(41)

－
－

1Q of FY03/2025
1Q of FY03/2024(Note) Comprehensive profit

1Q of FY03/2025:(17) mil. yen [ －%]1Q of FY03/2024:(39) mil. yen [ －%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill

Net profit (loss) per share
1Q of FY03/2025
1Q of FY03/2024

Diluted net profit (loss) per share

yen

yen

(3.75)(8.51)－－(2) Consolidated financial position
Total assets
1Q of FY03/2025
FY03/2024(Reference) Shareholders equity

1Q of FY03/2025:
FY03/2024:

Net assets

Equity ratio

mil. yenmil. yen

%

2,540
2,735

1,595
1,700

62.8
62.2

1,595 mil. yen
1,700 mil. yen

2. Cash dividends
Annual dividends per share
1Q-endFY03/2024
FY03/2025
FY03/2024 (forecasts)

2Q-end3Q-endYear-end

Total

yen

yen

yen

yen

yen

－
－

0.00

－

14.00

14.00

0.00

－

14.00

14.00

(Note) Revisions to dividend forecasts published most recently: No

3. Consolidated performance forecasts for FY03/2025 (April 1, 2024 – March 31, 2025)(Percentages indicate year-on-year changes)

Net sales

Operatingprofit (loss)

EBITDA

Ordinary
profit (loss)

Net profit
Net profit (loss) attributableto owners of parent(loss) per sharemil. yen%mil. yen%mil. yen%mil. yen%mil. yen%

yen(cumulative)

1,993

2.7

32

(13.7)

(15)

－

(7)

－

(10)

－

(2.12)

Full term

4,327

7.2

203

10.5

101

328.4

111

304.5

73

－

15.24

2Q

(Note) Revisions to performance forecasts published most recently: No

FOR TRANSLATION PURPOSE ONLY
*Notes(1) Changes in significant subsidiaries during the current quarter consolidated cumulative period(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement:

Yes(Note) For details, please see the appendix, page 6, "2. Quarterly Consolidated Financial Statements and Principal Notes,(3) Notes on Quarterly Consolidated Financial Statements".
(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements① Changes in accounting policies due to revisions to accounting standards and other regulations: No② Changes in accounting policies due to other reasons:No③ Changes in accounting estimates:
No④ Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)① Total number of issued shares at the end of the period (including treasury stock)
1Q of FY03/2024:

6,018,800 shares

FY03/2023:

6,018,800 shares

FY03/2023:

1,176,541 shares② Number of treasury stock at end of the period
1Q of FY03/2024:

1,229,441 shares③ Average number of shares during the period (quarterly cumulative)
1Q of FY03/2024:

4,827,816 shares

1Q of FY03/2023:

4,847,484 shares* Quarterly summary of financial results is not included in a quarterly review by a certified public accountant
or an auditing firm.

* Explanation regarding appropriate use of the earnings forecast and other special notes
Descriptions about the future such as performance forecasts contained in this document are based on information
currently available to the Company and certain presumptions considered as reasonable, and those are not intended toindicate the Company should assure that it would realize such forecasts. Meanwhile, actual performance in the future
may differ substantially, influenced by a wide variety of factors. For preconditions for performance forecasts andprecaution statements in using such forecasts, please see the appendix, page 3, "1. Qualitative Information regarding
the Financial Results of the Current Quarter: (3) Descriptions regarding future prospects such as consolidated
performance forecasts".
Supplementary materials on financial results was posted on the Company's website on August 13, 2024 (Tue.).

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024○ Table of Contents: Appendix
1. Qualitative Information regarding the Financial Results of the Current Quarter ................................................................ 2(1) Descriptions regarding operating results...................................................................................................................... 2(2) Descriptions regarding financial position .................................................................................................................... 3(3) Descriptions regarding future prospects such as consolidated performance forecasts ................................................... 3
2. Quarterly Consolidated Financial Statements and Principal Notes ................................................................................... 4(1) Quarterly Consolidated Balance Sheets ....................................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income ........................................ 5(3) Notes on Quarterly Consolidated Financial Statements ............................................................................................... 6(Notes on Special Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements) ......... 6(Notes on Segment Information, etc.) ......................................................................................................................... 6(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ........................................................ 8(Going concern assumption) ....................................................................................................................................... 8(Notes on Quarterly Consolidated Cash Flow Statement)........................................................................................... 81

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024

1. Qualitative Information regarding the Financial Results of the Current Quarter(1) Descriptions regarding operating results
During the current first quarter consolidated cumulative period, Japanese economy has witnessed improvement inpersonal spending against the backgrounds of recovery of human interaction due to normalization of social activities
and better environment for employment/income, as well as movement towards expanded demands by inboundtourists. On the other hand, economic trends are still unpredictable because of, for example, geopolitical tensions
such as prolonged warfare in Ukraine and the Middle East, declined consumer confidence due to long-standing highprices, and price rise in raw materials caused by weaker yen.
Amid such situations, the Group is going forward to materialization of our business framework of “Regional Marketing
Platform (RMP)” whose basic concept is to connect users with our services on regional basis.
With this RMP framework, we have realized increase in users by adding new services for selling Shinkansen (bullet
train) tickets and by enhancing regional contents, and thus novel monetization measures have surely contributed to overall
revenues/earnings.
As a result, although Net sales was lower YoY due to continued trend of decrease in paid subscribers for transfer
information services and in revenues of Cirqua, Inc., in terms of profit, besides promoting the abovementioned RMP
framework, the fact that transient cost incurred during the previous first quarter consolidated fiscal period for establishing
EKITAN I&I Co., Ltd. and for acquiring shares of it, and cost reduction carried out during the previous FY by shrinking
depreciation by means of recording impairment loss of intangible assets such as goodwill, and other factors have helped
achieving substantial improvement as compared to the previous 1Q, and so fat we have made progress at higher pace than
the annual performance forecasts.
Consequently, financial results of the current first quarter consolidated cumulative period were as follows: Net sales:
859,426 thousand yen (decrease by 14.0% YoY); EBITDA: (2,311) thousand yen (which had been 12,235 thousand yen in
the 1Q of FY03/2024); Operating loss: 19,683 thousand yen (which had been 42,638 thousand yen in the 1Q of
FY03/2024); Ordinary loss: 12,872 thousand yen (which had been 41,957 thousand yen in the 1Q of FY03/2024); and Net
loss attributable to owners of parent: 18,094 thousand yen (which had been 41,237 thousand yen in the 1Q of FY03/2024).
Operating results of individual business segments are as follows.
① Mobility Support Business
Novel monetization measures based on the RMP framework, such as selling Shinkansen tickets, have graduallycontributed to revenues/earnings, but rather, continued decrease in paid subscribers due to commoditization of transfer
information services resulted in substantial decrease in revenues from these services, leading to lower revenues/earnings inthis segment.
These operations resulted in Net sales of 340,111 thousand yen (decrease by 8.5% YoY), EBITDA of 74,454 thousandyen (decrease by 20.4% YoY) and Segment profit of 66,781 thousand yen (decrease by 17.4% YoY).
② Advertisement Platform Business
Revenue expansion through staff augmentation at Proud Engine Inc. has been smoothly in process, but on the other
hand, business environment for Cirqua, Inc. having become more severe had huge impact resulting in lower revenues.
Nevertheless, in terms of profit, not only cost reduction carried out during the previous consolidated FY by shrinking
depreciation by means of recording impairment loss of intangible assets such as goodwill, but also cost reduction andstructural review by Cirqua, Inc. since the previous third quarter consolidated fiscal period, have helped limiting segment
loss to much less.
These operations resulted in Net sales of 265,183 thousand yen (decrease by 27.1% YoY), EBITDA of (9,824) thousandyen (which had been (14,011) thousand yen in the 1Q of FY03/2024) and Segment loss of 12,878 thousand yen (which was
49,923 thousand yen in the 1Q of FY03/2024).
③ M&A/Incubation Business
Revenue expansion through staff augmentation at Growth and Communications Co., Ltd. has been smoothly in process,but on the other hand, this segment has seen lower revenues as compared to the previous first quarter consolidated
cumulative period during which an order for a large-scale project had been received. In terms of profit, despite some impactof lower revenues, higher segment profit could be achieved since there was no such transient cost as incurred during theprevious first quarter consolidated fiscal period for establishing EKITAN I&I Co., Ltd. and for acquiring shares of it.
These operations resulted in Net sales of 254,501 thousand yen (decrease by 3.7% YoY), EBITDA of 14,537 thousandyen (increase by 80.6% YoY) and Segment profit of 8,969 thousand yen (increase by 214.4% YoY).

2

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(2) Descriptions regarding financial position(Assets)
Current assets at the end of the current first quarter consolidated fiscal period was 1,911,125 thousand yen , i.e. decrease by
198,669 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decrease in Notes, accounts
receivable - trade & contract by 179,370 thousand yen and in Cash and deposits by 42,443 thousand yen. Non-current assets was
628,975 thousand yen, i.e. increase by 3,602 thousand yen as compared to the end of the previous consolidated FY. This is mainly
due to increase in Software by 8,855 thousand yen and decrease in Goodwill by 5,856 thousand yen. As a result, Total assets was
2,540,101 thousand yen, i.e. decrease by 195,067 thousand yen as compared to the end of the previous consolidated FY.

(Liabilities)
Current liabilities at the end of the current first quarter consolidated fiscal period was 613,125 thousand yen , i.e.
decrease by 53,857 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decreasedin Accounts payable - trade by 61,466 thousand yen. Non-current liabilities was 331,526 thousand yen, i.e. decrease by
36,620 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decrease in Long-termloans payable by 37,587 thousand yen. As a result, Total liabilities was 944,652 thousand yen, i.e. decrease by 90,478
thousand yen as compared to the end of the previous consolidated FY.

(Net assets)
Total net assets at the end of the current first quarter consolidated fiscal period was 1,595,448 thousand yen , i.e.
decrease by 104,589 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to decrease
in Retained earnings by 85,886 thousand yen and increase in Treasury stock by 22,726 thousand yen. As a result, equity
ratio rose from the end of the previous consolidated FY by 0.6 point to 62.8%.

(3) Descriptions regarding future prospects such as consolidated performance forecasts
Consolidated performance forecasts for the 2Q (cumulative) and full-term of FY03/2025 have not been changed since
the last announcement on May 9, 2024.

3

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(thousand yen)Previous consolidated FY(March 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes, accounts receivable - trade & contract assets
MerchandiseWork in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Customer-related assets
Goodwill
OthersTotal intangible assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for loss on order received
Valuation allowance for purchase contracts
OthersTotal current liabilities
Non-current liabilities
Long-term loans payable
Asset retirement obligations
Provision for directors’ retirement benefits
Liabilities on retirement benefits
Deferred tax liabilities
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

Current first quarter
consolidated fiscal period(June 30, 2024)

1,368,889
582,354599
16,573933
141,737(1,292)
2,109,795

1,326,446
402,984590
13,522828
168,033(1,279)1,911,125

72,24175,35149,303
26,625
131,911
119,161
327,001

58,15825,737126,055
120,757
330,709

227,564(1,433)
226,131625,3732,735,168

224,337(1,423)
222,914628,975
2,540,101

231,270
75,851
18,62352,177
9,888
10,660268,511
666,983

169,80370,773
9,909
45,832
10,102
10,660296,043
613,125

292,090
17,31020,51026,9269,309
2,000
368,147
1,035,130

254,503
17,31020,87327,9358,905
2,000
331,526
944,652

291,956
309,595
1,693,919(598,290)
1,697,180

291,956
312,557
1,608,033(621,016)
1,591,529

2,858
2,858
1,700,038
2,735,168

3,918
3,918
1,595,448
2,540,101

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the first quarter consolidated cumulative period)(thousand yen)Previous first quarter
Current first quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2023 – Jun. 30, 2023) (Apr. 1, 2024 – Jun. 3, 2024)

Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit (loss)
Non-operating profit (loss)
Interest income
Dividend income
Gain on forfeiture of unclaimed dividends
Surrender value of insurance
Interest subsidy
OthersTotal non-operating profit (loss)
Non-operating expenses
Interest expenses
Purchase of treasury stock
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Loss on cancellation of lease contracts
Total extraordinary losses
Net profit (loss) before income taxes and minority interests
Income taxes
Net profit (loss)
Profit (loss) attributable to non-controlling shareholders
Profit (loss) attributable to owners of parent

999,351
725,714273,636
316,275(42,638)

859,426
598,392
261,034
280,717(19,683)

927
－
80
－
310
156
1,475

470
329
318
6,637
－
267
8,024

794
－
794
(41,957)

991
222
1,213
(12,872)

1,320
1,320
(43,277)(1,530)(41,746)(509)(41,237)－－(12,872)
5,222(18,094)－(18,094)(Quarterly Consolidated Statements of Income)(For the first quarter consolidated cumulative period)(thousand yen)Previous first quarter
Current first quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2023 – Jun. 30, 2023)(Apr. 1, 2024 – Jun. 3, 2024)

Net profit (loss)
Valuation difference on available-for-sale securities
Comprehensive income (loss)(detail)Comprehensive income (loss) attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5(41,746)
2,166(39,580)(18,094)
1,060(17,034)(39,287)(292)(17,034)－

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(3) Notes on Quarterly Consolidated Financial Statements(Notes on Special Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
Tax expenses are calculated by multiplying the net profit before income taxes by a reasonably evaluated effective tax
rate on the net profit before income taxes for the consolidated fiscal year including the current first quarter consolidated
fiscal period. However, if calculation of tax expenses by using so evaluated effective tax rate results in a figure significantly
lacking reasonableness, product calculated by multiplying quarterly net profit or loss before income taxes by a statutory
effective tax rate and collectability of deferred tax assets are taken into account.
(Notes on Segment Information, etc.)
I

Previous first quarter consolidated cumulative period (Apr. 1, 2023 – Jun. 30, 2023)

1. Information on net sales and profit/loss of each reportable segment(thousand yen)

Mobility Support
Business
Net sales
Sales to external customers
Inter-segment sales or transfer
Total
Segment profit (loss)
Depreciation
Amortization of goodwill
EBITDA (see Note)

Reportable segments
Advertisement
M&A/Incubation
PlatformBusiness
Business371,158438
371,597
80,86012,673－93,533363,884－
363,884(49,923)
22,216
13,695(14,011)

Total

264,308－
264,308
2,852
1,582
3,616
8,051

999,351
438
999,790
33,79036,472
17,311
87,574

Note: EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

2. Difference between the total amount of profit or loss of reportable segments and the amount presented on the
Quarterly Consolidated Statements of Income; and main contents of said difference (items in relation to adjustment
of difference)(thousand yen)

ProfitAmountReportable segments total
Corporate expenses (see Note)
Operating profit (loss)
on the Quarterly Consolidated Statements of Income

33,790(76,428)(42,638)

Note: Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.

3.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment(Significant changes in amount of goodwill)In the “M&A/Incubation Business” segment, during the first consolidated fiscal period, EKITAN I&I Co., Ltd.
acquired shares of Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information Technology Japan Co.,
Ltd., all of which have been included in the scope of consolidation. Meanwhile, this event caused increase in theamount of goodwill by 68,961 thousand yen in the first quarter consolidated cumulative period.

6

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024

II Current first quarter consolidated cumulative period (Apr. 1, 2024 – Jum. 30, 2024)
1. Information on net sales and profit/loss of each reportable segment(thousand yen)

Mobility Support
Business
Net sales
Sales to external customers
Inter-segment sales or transfer
Total
Segment profit (loss)
Depreciation
Amortization of goodwill
EBITDA (see Note)

Reportable segments
Advertisement
M&A/Incubation
PlatformBusiness
Business

339,742368
340,11166,781
7,673－
74,454

265,183－
265,183(12,878)
887
2,166(9,824)

Total

254,501－
254,501
8,969
1,878
3,689
14,537

859,426
368
859,795
62,872
10,4395,856
79,167

Note: EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

2. Difference between the total amount of profit or loss of reportable segments and the amount presented on the
Quarterly Consolidated Statements of Income; and main contents of said difference (items in relation to adjustment
of difference)(thousand yen)

ProfitReportable segments total
Corporate expenses (see Note)
Operating profit (loss)
on the Quarterly Consolidated Statements of Income

Amount62,872(82,555)(19,683)

Note: Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.

3.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment
Not applicable.

7

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
The Company, at its board meeting on May 9, 2024, decided to purchase its treasury stock, based on the provisions ofArticle 156 of the Companies Act of Japan which apply mutatis mutandis pursuant to Article 165, Paragraph 3 of that Act,and accordingly it is in the process of such purchase for the period from May 20, 2024 to December 30, 2024, with upper
limits set as 150,000 shares and 50,000 thousand yen in total. In this way, during the current first quarter consolidated
cumulative period 52,900 shares were purchased, which resulted in increase of Treasury stock by 22,726 thousand yen.
As a result of such purchase and others, Treasury stock at the end of the current first quarter consolidated cumulative
period was 621,016 thousand yen.
(Going concern assumption)
Not applicable.
(Notes on Quarterly Consolidated Cash Flow Statement)
Quarterly consolidated cash flow statement has not been produced for the current first quarter consolidated cumulative
period. Meanwhile, amounts of depreciations for the previous & current first quarter consolidated cumulative periods(including depreciations of intangible assets except goodwill) and amortizations of goodwill are as follows.
(thousand yen)Previous first quarter
Current first quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2023 – Jun. 30, 2023) (Apr. 1, 2024 – Jun. 3, 2024)

Depreciation
Amortization of goodwill

37,563
17,311

8

11,5155,856