Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending September 30, 2021
(FY9/21) (Six Months Ended March 31, 2021) [IFRS]
May 14th, 2021
Stock
Exchange
TSE
Listing:
Stock code:
6191
URL https://www.airtrip.co.jp/
Representative:
Yusuke Shibata, Representative Director, President and CFO
Contact:
Yusuke Shibata, Representative Director, President and CFO(TEL)03 (3431)6191
Scheduled date of filing of Quarterly Report:
May 14th ,2021 Scheduled date of payment of dividend: －Company name:

AirTrip Corp.

Preparation of supplementary materials for financial results:
Holding of quarterly financial results briefing:: Yes: Yes (for institutional investors and securities analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (October 1st, 20210 to March 31st, 2020) of FY9/21(1) Consolidated results of operations(Percentages represent year–on–year changes)

Net sales

Six Months Ended March
31, 2021
Six Months Ended March
31, 2021

Operating income

Millionyen%

Millionyen%

11,202

△24.0

2,001

-

14,74138.5△1,332-

Profit before
income taxes
Million
%
yen
1,955

-

△1,425-

Millionyen

Profit attributable to Total comprehensive
owners of parent
incomeMillionMillion
%
%
%
yen
yen

1,465

-

Profit

△779

-

1,286

-

1,443

△741

-

△791

-

th

(Note) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30 , 2020, so this company’s business is classified as a discontinued
business. Therefore, net sales, operating income, and profit before income represent the amount of continuing business excluding discontinued business.

Profit per share
Six Months Ended March
31, 2021
Six Months Ended March
31, 2021

Fully diluted profit per share
Yen

Yen

61. 8560 .55△37 .14△37 .14(2) Consolidated financial position

As of Mar. 31, 2021

Million yen
21,515

Million yen
5,455Million yen
4,544

Ratio of equity
attributable to owners ofparent%21.1

As of Sep. 30, 2020

21,940

2,538

1,983

9.0

Total assets

Equity attributable toowners of parent

Total equity

2. Dividends
Dividend per share

Fiscal year ended Sep. 30th 2020

1Q-endYen－

Fiscal year ending Sep. 30th, 2021－

2Q-endYen
0 00

3Q-endYen－

Year-end
Yen
10 00

－

－

Total
Yen
10 00

0 00

Fiscal year ending Sep. 30th ,2021 (Estimated)－

Note: Revision to the most recently announced dividend forecast: None
Currently, the expected dividend for the fiscal year ending September 2021 is undecided.

3. Full-year consolidated financial forecast for FY9/21 (October 1st, 2020– September 30, 2021)(Percentages represent year-on-year changes.)
Net sales
Full year

Million yen
24,300Operating income% Million yen
14.4
1,300

Profit before
income taxes% Million yen
%
1,240
－
－

Note: Revision to the most recently announced forecast: None
Every change (if any) shall be promptly updated.

―1―

Profit attributable toowners of parent
Million yen%
741－

Profit per share
Yen
35 74

* Notes(1) Changes in significant subsidiaries during the period (changes in specified
subsidiaries resulting in changes in scope of consolidation)― Companies
New included:
Excluded: － Companies

:

None

(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Change of the accounting policy required under IFRS
: None2) Changes in accounting policies other than 1) above： None3) Changes in accounting-based estimates： None(3) Numbers of outstanding shares (common stock)1) Number of shares outstanding as of theend of the period (including treasury shares)
2) Number of treasury shares as of the end of
the period
3) Average number of shares issued during
the period

As of Mar. 31st, 2021

21,418,865 Shares

As of Mar. 31, 2020

20,115,300 Shares

As of Mar. 31st, 2021

225 Shares

As of Mar. 31, 2020

35 Shares

Six months ended
Mar. 31st, 2021

20,793,365 Shares

Six months ended
Mar. 31st, 2020

19,956,742 Shares

The current quarterly financial report is exempt from the quarterly review procedures performed by certified public
accountants or audit corporations.
* Explanation of appropriate use of earnings forecasts, and other special items
The above full year consolidated financial forecast includes expectations based on future premise, perspective, and plan asof the day this document is published. These statements about future expectation are based on our company’s currently
available information and rational assumptions, not indicate the achievement that we commit to achieve. The forecast may
differ greatly from financial results due to various factors in the future, such as changes in economic situation, changes inclient needs and user preference, competition, changes in laws and regulations, and changes in exchange rates.

―2―

○ Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance ……………………………………...4(1) Explanation of Results of Operations ……………………………………………………...………………………..4(2) Explanation of Financial Position ………………..…………………………………………………………………..6(3) Explanation of Consolidated Forecast and Other Forward-looking Statements ……………………………… .7
2. Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial
Statements …………………………………………………...……………………………………………………………….8(1) Condensed Consolidated Statement of Financial Position ……………………………………………………….8(2) Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive
Income ……………………………………………………………………………………….………………………………10(3) Condensed Consolidated Statement of Changes in Equity …………………..…………………………………14(4) Condensed Consolidated Statement of Cash Flows ………..…………………………………………………...15(5) Notes to Condensed Consolidated Financial Statements.……………………………………………………….17(Notes on going concern assumptions) …………………………………………………………………………17(Changes in accounting policies) …...…………………………………………………………………………...17(Segment information, etc.)….……………………………………………………………………………………18(Important subsequent events) ….…………………………….…………………………………………………21―3―

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations(Unit: Million yen)Six months ended
March 31st,
2020

Six months ended
March 31st,
2021

Differences

Percentage
difference (%)

Consolidated Results of Operations
Net sales

14,741

11,202△3,539△24.0

Operating income (Loss)△1,332

2,001

3,333

-

Profit before income taxes (Loss)△1,425

1,955

3,380

-

△741

1,286

2,027

-

Profit attributable to owners of parent (Loss)(Note) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so thiscompany’s business is classified as a discontinued business. Therefore, net sales, operating income, and profit before
income represent the amount of continuing business excluding discontinued business.
Due to the spread of COVID-19 (Novel COVID-19virus), the Japanese economy in this period has become unpredictablebecause the economic activities have been slowing down, the worldwide travel demand is sluggish caused by measures
such as overseas travel restriction or prohibition or lockdown in many countries. We are now closely observing the changesof the pandemic as well as future market trends.
Under this circumstance, our company has been working on various measures, as well as cost down methods, as a linkof restructuration and Group’s business portfolio diversification towards the “Restart” of AirTrip Group. Because the results
are getting well, the existing businesses are performing smoothly. All the existing businesses, excluding the overseas travel
domain of AirTrip Travel Business, continued to perform well, exceeding initial expectations. The domestic travel domain of
the AirTrip Travel Business is on a recovery trend, and although being affected partly by the pre-emergency or state of
emergency, the performance exceeds expectations. In addition, other business domains also performed well overall by
capturing new demand during Covid-19 period, such as PCR testing in the healthcare business, which was newly started in
the current fiscal year.
Under these circumstances, the Group's Net Sales for six months ended March 31st, 2021 reached 11,202 million yen,operating income gained 20.01 million yen, income before income taxes achieved 1,955 million yen, and quarterly income
attributable to owners of the parent company was 1,286 million yen.
(2) Overview of Segment Business
Online Travel Business(Unit: Million yen)Six months ended
March 31st,
2020

Six months ended
March 31st,
2021

Differences

Percentage
difference (%)

Net Sales

13,6539,931△3,722△27.3

Segment profit or loss

△473

1,394

1,867

-

(Note) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so thiscompany’s business is classified as a discontinued business. Therefore, net sales, segment profit represent the amount ofcontinuing business excluding discontinued business.
1. AirTrip Travel Business
Since our founding, as a company specialized in online travel, we have been providing convenient services to customers.
We are developing the following services centered on our 3 strengths: “Buying Power”, “Various sales channel”, “System
Development Ability”.

―4―(1) BtoC services (Directly managed by our company)
We have achieved strong competitiveness by handling the largest volume of domestic airline tickets of the and making
alliances with the airlines and East Japan Railway Company. We are operating "AirTrip", a website where you can easily
compare and reserve domestic and overseas travel products. We are even more focusing on making the website easier to
use and providing our customers the best travel options.
(2) BtoBtoC services (Travel Contents OEM Provision)
We provide domestic airline tickets / travel, overseas airline tickets / hotel to other companies' mass media as travel
content. We have increased the content lineup and helped improving media users’ customer satisfaction.
(3) Business travel management (BTM)"AirTrip BTM" arranges tickets for daily business trips and develops an efficient management business system. Thissystem is now free for any company with needs of business trip. Direct cost + indirect has been reduced.
2. Services for foreign visitors in JapanWe are quickly developing the know-how accumulated in the AirTrip travel business as a service for foreigners’ visitors inJapan and a service for private lodging management companies.
(1) Wi-Fi rental for foreign visitors in Japan
Inbound Platform Corp., a subsidiary of AirTrip, develops Wi-Fi router rental service for foreign visitors in Japan. With over
200,000 rentals, we have established a brand with many years of trust and good review. In addition to renting camper vans,
we are planning to expand services to meet inbound demand.
(2) Dynamic package for foreign visitors in JapanFor the increasing number of individual tourists from Southeast Asia, we will strengthen our support for each country's
language. At first, we prepare information about hotels and inns in Japan in Thai language, and provide them on the"Dynamic Package for foreigners’ first visit to Japan" sold by JALPAK Co., Ltd. We are also improving sales promotion
environment for other countries’ visitors to Japan.
(3) One-stop service for private lodging hosts
To utilize vacant houses, which are currently increasing year by year in Japan, "AirTrip stay Co., Ltd." is proposing theoperation of rooms in accordance with the Housing Accommodation Business Law. Among the increasing number of foreign
visitors to Japan, we have become Japan's first official partner with "Airbnb"; the app is used by 1 in 5 people. We provide
one-stop support from property registration to property management, and we are planning to expand the service.
3. Life Innovation Business
Utilizing the know-how of various travel-related services accumulated at "AirTrip," we are developing the following
businesses with the aim of making every scene of customers' lives more convenient.
(1) E-mail newsletter / WEB media
In collaboration with MagMag Co., Ltd., one of our subsidiaries with the slogan "Telling things you want, to people want tohear”, we have developed a channel to collect content from creators from all over the world and deliver it to those who feelthat information valuable. You can subscribe on article basis with “mine”, including "Magmag!", a free and paid e-mailnewsletter distribution service. We also operate WEB media "MAG2 NEWS", "MONEY VOICE", "TRiP EDiTOR", and "bythem" which can discover contents and deliver them to many people who want to know.
(2) Suitcase sales / rental―5―

We rent and sell high-quality, easy-to-use, and durable travel-related products such as suitcases, and provide our products
to major retailers and mass retailers. We also develop EC and OEM.
4. Healthcare BusinessWe connect medical institutions and customers, build a smooth implementation system for various tests such as PCR
tests, and provide medical services compatible with With COVID-19 period.
Making a comprehensive approach in the fields of "travel / business trip" x "medical care", we are currently providing PCR
testing and antibody testing services at medical institutions and clinics affiliated with our subsidiary Pikapaka Co., Ltd. Testing
methods vary according to customers’ situation. We have succeeded in capturing demand for PCR tests, etc. in thehealthcare business.
Under these circumstances, segment Net Sales of the online travel business reached 9,931 million yen and segment
income achieved 1,394 million yen for six months ended March 31st, 2021.
IT Off-shore Development Business（Unit: Million Yen）
Six months ended
March 31st,
2020

Net Sales
Segment profit or loss

Six months ended
March 31st,
2021

Percentage
difference (%)

Differences

1,016

925

△91

△8.9

53

613

560

1056.6In the IT Offshore Development Business segment, the Group offers lab-type facility development services to customers
consisting mainly of e-commerce operators, web solution providers, and game and system developers in Ho Chi Minh, Hanoi,
and Da Nang in Vietnam.
The Company’s lab-type facility development model is distinctive in that a team is formed with new dedicated staff members
hired for each customer. The model also enables customers to confirm the state of lab-type facility development on demand.
As a result of the factors stated above, IT offshore development business segment’s Net Sales gained 925 million yen
and segment profit reached 613 million yen for six months ended March 31st, 2021.
Investment Business(Unit: Million Yen)
Six months ended
March 31st,
2020

Net Sales
Segment profit or loss

Six months ended
March 31st,
2021

Percentage
difference (%)

Differences

71

345

274

385.9

△243

435

678

-

In the Investment Business segment, the Group emphasizes synergies with the existing businesses and expands
service lines through aggressive M&A and capital alliances. The Group is pursuing investment in growing companies toimprove profitability.
In the current fiscal year, we have expanded the number of investees to 66 companies.
As a result, investment business segment’s Net Sales reached 345 million yen and segment profit reached 435 million
yen for six months ended March 31st, 2021.

(2) Explanation of Financial Position（Asset）―6―

Total assets decreased 424 million yen from the end of the previous fiscal year to 21,515 million yen at the end of thesecond quarter under review. This result was mainly due to a decrease of 1,442 million yen in cash and cash equivalents,
offsetting an increase of 541 million yen in investment through equity method, and 512 million yen in other financial assets.
（Liabilities）
Liabilities decreased 3,342 million yen from the end of the previous fiscal year to 16,060 million yen at the end of thesecond quarter under review. This result primarily reflected decrease of 2,133 million yen in interest-bearing liabilities and562 million yen in other current liabilities.
（Net Assets）
Net assets increased 2,917 million yen from the end of the previous fiscal year to 5,455 million yen at the end of thesecond quarter under review. This result was mainly due to the decrease of 204 million yen in dividends of surplus from thefirst quarter consolidated accounting period, while there is increase in retained earnings related to profit in the second quarter
consolidated cumulative period and the use of 1,466 million yen of convertible bond.

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There is no change in Consolidated Financial Results compared to the forecast result in "Notice Concerning Revision of
Earnings Forecast" published on April 15, 2021. Every change (if any) shall be promptly updated.

―7―2. Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial
Statements(1) Condensed Consolidated Statement of Financial Position(Unit: Million Yen)
FY9/20(as of Sep. 30, 2020)

Second Quarter of FY9/21(as of March 31, 2021)

AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable –trade and other receivables
Other financial assets

7,042

5,600

2,364

2,992

4,359

4,871

Inventories

435

480

Other current assets

821

587

Total current assets

15,023

14,532

480

419

Right-of-use assets

3,156

2,837

Goodwill

1,172

1,149

Intangible assets
Investments accounted for using theequity method
Other financial assets

1,091

1,069

-

541

970

907

Other non-current assets

34

43

Deferred tax assets

10

15

6,916

6,983

21,94021,515

2,646

2,083

6,185

5,924

Lease liabilities

416

416

Other financial liabilities

251

229

Accrued income taxes

132

483

Non-current assets
Property, plant and equipment

Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating payables and otheroperating payables
Interest-bearing debt

Other current liabilities

1,858

1,183

Total current liabilities

11,490

10,320Interest-bearing debt

4,842

2,971

Lease liabilities

2,873

2,562

Other financial liabilities

25

26

Provisions

83

56

Deferred tax liabilities

78

112

Other non-current liabilities

7

10

Non-current liabilities

Total non-current liabilities
Total liabilities

7,911

5,739

19,402

16,060EquityCapital stock

3,138

617

Capital surplus

4,887

1,036

△6,135

2,812

Treasury shares△0△0

Other items of equity

92

78

Retained earnings―8―Total equity attributable to owners ofparent company
Non-controlling interests

1,983

Total equity
Total liabilities and equity

―9―

4,544

555

911

2,538

5,455

21,94021,515

(2) Condensed Consolidated Statement of Income and Condensed Consolidated Statement ofComprehensive Income
Condensed Consolidated Statement of Income
For the First Six-month Period
Six months ended March 31st,
2020(Oct. 1st, 2019 – Mar. 31st,
2020)(Unit: Million Yen)
Six months ended March 31st,2021(Oct. 1st, 2020 – Mar. 31st,
2021)

Net sales

14,741

11,202

Sales Cost

△9,039△7,346

5,701

3,855

△5,879△2,644-595
165

Continuing Business

Gross profit
Selling, general and administrative
expenseProfit from loss of control subsidiaries
Investment Gain/Loss (Loss)△270

Other income
Other expenses
Operating income (Loss)
Finance income
Finance costs
Profit before income taxes (Loss)
Corporate income tax
Quarterly income from continuing business(Loss)
Discontinued Business
Quarterly income from discontinued
businesses
Profit (Loss)

183

74

△1,066△45△1,332

2,001

10

33

△103
△1,425
△11

△79
1,955
△489

△1,436

1,465

657

-

△779

1,465

Profit attributable to (Loss)
Owners of parent company

△741

1,286

Non-controlling interests

△38

178

△779

1,465

△37.1461.85△70.07

61.85

32.92

-

△37.1460.55△70.07
32.92

60.55
-

Profit (Loss)
Profit per share
Profit per share(Loss) (Yen)Continuing Business
Discontinued Business
Fully diluted profit (Loss) per share(Yen)
Continuing Businesses
Discontinued Businesses―10―For the Second Quarter Period(Unit: Million yen)
Second quarter of FY9/20(Jan. 1st, 2020 – Mar. 31st,
2020)

Second quarter of FY9/21(Jan. 1st, 2021 – Mar. 31st,
2021)

Net sales

6,760

4,641

Sales costs△4,020△2,721

2,740

1,920

△2,866△1,372

△402
33

595
92
30

△1,040△28△1,534

1,238

4

27

△45

△36

Continuing Business

Gross profit
Selling, general and administrative
expenseProfit from loss of control subsidiaries
Investment Gain/Loss (Loss)
Other income
Other expenses
Operating income (Loss)
Finance income
Finance costs
Profit before income taxes (Loss)△1,575

1,229

68

△212

△1,507

1,017

58

-

△1,4481,017

Owners of parent company△1,433853

Non-controlling interests

△15

163

Profit (Loss)△1,448

1,017

Profit per share
Profit per share(Loss) (Yen)Continuing Business△71.2940.72△74.21

40.72

2.92

-

△71.2939.73△74.21

39.73

2.92

-

Corporate income tax
Quarterly income from Continuing Business(Loss)
Discontinued Business
Quarterly income from Discontinued
Business
Profit (Loss)
Profit attributable to (Loss)

Discontinued Business
Fully diluted profit per share(Loss) (Yen)Continuing Business
Discontinued Business―11―

Condensed Consolidated Statement of Comprehensive Income
For the First Six-month Period

Six months ended March 31st,
2020(Oct. 1st, 2019 – Mar. 31st,
2019)(Unit: Million yen)Six months ended March 31st,2021(Oct. 1st, 2020 – Mar. 31st,
2021)

△779

1,465

△11

△21

△0

-

△11

△21

△11

△21

△791

1,443

Owners of parent company

△747

1,275

Non-controlling interests

△43

168

Profit (Loss)
Other comprehensive income (after tax)
Items that may be reclassified as profit orloss
Exchange Differences of foreign
operations.
Cash flow hedge
Total of items that may be reclassified as
profit or loss
Total of other comprehensive income (after
tax)
Comprehensive income
Comprehensive income attributable to―12―For the Second Quarter Period(Unit: Million yen)
Second quarter of FY9/20(Jan. 1st, 2020 – Mar. 31st,
2020)

Second quarter of FY9/21(Jan. 1st, 2021 – Mar. 31st,2021)△1,448

1,017

△10

17

-

-

△10

17

Profit (Loss)
Other comprehensive income (after tax)
Items that may be reclassified as profit orloss
Exchange Differences of foreign
operations.
Cash flow hedge
Total of items that may be reclassified as
profit or loss
Total of other comprehensive income (after
tax)
Comprehensive income

△10

17

△1,4591,035

Comprehensive income attributable to
Owners of parent company△1,439

862

△20

172

Non-controlling interests―13―(3) Condensed Consolidated Statement of Changes in Equity
Six months ended March 31st, 2020 (Oct. 1st, 2019 – Mar. 31st, 2020)(Unit: Million Yen)
Equity attributable to owners of parent company
Capital stock
As of October 1st, 2019

CapitalsurplusRetainedearnings

Other itemsofequityTreasuryshares

Total

Noncontrollinginterests

Total
equity

2,922

4,175

2,601

19

△0

9,719

382

10,101

-

-

△34

-

-

△34

△18

△52

2,922

4,175

2,566

19

△0

9,684

363

10,048

Profit (Loss)

-

-

△741

-

-

△741

△38

△779

Other comprehensive
income

-

-

-

△5

-

△5

△5

△11

Total comprehensive income

-

-

△741

△5

-

△747

△43

△791

Dividends of surplus

-

△198

-

-

-

△198

-

△198

11

11

-

-

-

23

-

23

-

510

-

-

-

510

-

510

-

△22

-

8

-

△14

26

12

-

322

26

349

△0

9,260

346

9,607

Adjustment for changes inaccounting policies
Balance after retrospective
restatement

Issuance of new shares
Increase (decrease) by
share exchanges
Increase (decrease)through transfers andother changes
Total transactions with owners
As of March 31st, 2020

11

302

-

8

2,934

4,478

1,825

22

Six months ended March 31st, 2021 (Oct. 1st, 2019 – Mar. 31st, 2021)(Unit: Million Yen)
Equity attributable to owners of parent company
Capital stock
As of October 1, 2020

CapitalsurplusRetainedearnings

Other itemsofequityTreasuryshares

Total

Noncontrollinginterests

Total
equity

3,138

4,887

△6,135

92

△0

1,983

555

2,538

Profit (Loss)

-

-

1,286

-

-

1,286

178

1,465

Other comprehensive
income

-

-

-

△11

-

△11

△10

△21

Total comprehensive income

-

-

1,286

-

-

1,275

168

1,443

Dividends of surplus

-

△204

-

-

-

△204

-

△204

740

740

-

-

-

1,481

-

1,481

△3,262

3,262

-

-

-

-

-

-

-

△7,656

7,656

-

-

-

-

-

-

4

-

-

-

4

174

179

-

2

4

△2

-

3

14

18

△2,521△3,850

7,661

△2

-

1,285

188

1,474

617

1,036

2,812

78

△0

4,544

911

5,455

Issuance of new shares
Transfer to capital surplus
from capital stock
Transfer to earned surplus
from capital surplus
Changes in owner’s equity
in under-control
subsidiaries
Increase (decrease)through transfers andother changes
Total transactions with owners
As of March 31st, 2021―14―

(4) Condensed Consolidated Statement of Cash Flows(Unit: Million Yen)
Six months ended March 31st,2019(Oct. 1st, 2019 – Mar. 31st,
2020)

Six months ended March 31st,
2020(Oct. 1st, 2020 – Mar. 31st,
2021)

△759
849
270
△755
1,044

1,955
365
△165
△595
36

△1,473△1,152

54

△44

256

13

21

136

△154

17

△94

△298

68
△672
9
△100
△162

90
358
0
△74
△73

△926

211

△111
△134
△577
1
51

△216
△88
△126
15
-

553

-

-

△421

△150
59

△9

△307

△847

△371

△1,039

-

754

△847

△829

-

459

Cash flows from operating activities
Profit (Loss) before tax
Depreciation and amortization expense
Investment Gain/Loss
Negative goodwill
Profit from loss of control subsidiaries
Impairment losses
Decrease (Increase) in trade and otherreceivables
Decrease (Increase) in inventories
Increase (decrease) in trade and otherpayablesDecrease (increase) in advance payments –trade)
Decrease (increase) in guarantee deposits
Decrease (increase) in investment securities for
sale
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Collection of lease deposits
Proceeds from withdrawal of time deposits
Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Payments for sales of shares of subsidiaries
resulting in change in scope of consolidation
Payments for acquisition of businesses
OthersNet cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of common shares
Proceeds from share issuance to noncontrolling shareholders
Repayments of lease obligations
Dividends paid to owners of the parent
company
Others

-

179

△244

△137

△190

△202

21

-

Net cash provided by (used in) financing△1,631△816―15―

activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period

―16―

3

11

△2,861△1,442

8,997

7,042

△68

-

6,067

5,600

(5) Notes to Condensed Consolidated Financial Statements(Notes on going concern assumptions)Not applicable.
(Changes in accounting policies)
Application of IFRS 16 Leases
The Group applied IFRS 16 Leases (issued in January 2016) (hereinafter referred to as “IFRS 16”) startingfrom the first three months of this consolidated fiscal year. On applying IFRS 16, the Group chose the method ofrecognizing the cumulative effect of application of the standard at the date of initial application (October 1, 2019),
which is permitted under transition provisions, and not retrospectively restating comparative information.
(1) Definition of lease
As a result of the application of IFRS 16, at the inception of a contract, the Group assesses whether thecontract is, or contains, a lease. A contract is, or contains, a lease if it conveys the right to control the use of
an identified asset for a period in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group considers
whether a contract includes use of an identified asset, whether the Group has the right to obtain substantially
all the economic benefits from the use of the asset throughout the period of use, and whether the Group has
the right to direct use of the asset.
(2) Accounting for leases
Leases as lessee
At the commencement of the lease, with respect to the lease components of leases except for short-termleases and low value asset leases, the Group recognizes a right-of-use asset and the related lease liability.
At the commencement date, the Group measures the right-of-use asset at cost and measures the leaseliability at the present value of the lease payments that are not paid at that date.
The cost of the right-of-use asset consists of the amount of the initial measurement of the lease liability, any
initial direct costs, any lease payments made before the commencement date and other adjustments. The
discount rate used to determine the present value of leases payment is the interest rate implicit in the lease,
if that rate can be readily determined, and if that rate cannot be readily determined, the Group uses theGroup’s incremental borrowing rate.
The lease term is the noncancellable period of the lease including the period covered by the option to extend
the lease (when the Group is reasonably certain to exercise an option to extend the lease) and the period
covered by the option to terminate the lease (when the Group is reasonably certain not to exercise the option
to terminate the lease).
After the commencement date, the right-of-use asset is measured at cost less accumulated depreciation andimpairment losses. When depreciating right of use assets, the Group applies the depreciation requirementsin IAS 16 Property, Plant and Equipment. The Group also applies IAS 36 Impairment of Assets whenassessing whether to depreciate right-of-use assets and when accounting for identified impairment losses.
If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if theGroup is reasonably certain to exercise the lessee’s purchase option, the Group depreciates the right-of-use
asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, theGroup depreciates the right-of use asset by the straight-line method from the commencement date to theearlier of the end of the useful life of the right of-use asset or the end of the lease term.
After the commencement date, the Group measures the lease liability by increasing the carrying amount toreflect interest on the lease liability and reduces the carrying amount to reflect the lease payments made.
The Group also remeasures the carrying amount to reflect any fluctuation of lease payments or leasemodifications or to reflect revised in-substance fixed lease payments.

―17―

The Group expenses lease payments related to short-term leases and low value leases by the straight-line
method.
Accounting on transition
On applying IFRS 16, the Group applies the practical expedient that does not require it to reassess whether
existing contracts contain a lease. Accordingly, assessment of leases in accordance with the definition of alease under IFRS 16 applies only to contracts concluded or amended on or after October 1, 2019.
Leases as lessee(Leases classified as an operating lease under IAS 17)
A lease liability at transition is measured at present value of the remaining lease payments as of thetransition date discounted at the Group’s incremental borrowing rate as of October 1, 2019. A right-of-use
asset at transition is measured by one of the methods shown below:
・carrying value as if IFRS 16 had always been in place calculated from lease commencement; provided,
however, that the discount rate is the lessee’s incremental borrowing rate as of the date of initial application;or・set equal to the lease liability, adjusted for any prepaid or accrued lease payments.
When applying IFRS 16 to leases previously classified as operating leases under IAS 17, the Group applies
the practical expedients shown below:
・apply a single discount rate to a portfolio of leases with reasonably similar characteristics;
・account for leases for which the lease term ends within 12 months of the date of initial application by thesame method used for short-term leases;
・exclude initial direct costs from the measurement of the right-of-use asset as of the date of initial
application; and・use hindsight with respect to contracts with options to extend or cancel when determining the lease term,etc.
(Lease classified as a finance lease under IAS 17)
The carrying value of the right-of-use asset and the lease liability is determined based on the carrying valueof the lease asset and lease liability under IAS 17 immediately before the date of initial application.
(3) Impact on the condensed quarterly consolidated financial statements
On application of IFRS 16, in the condensed quarterly consolidated statements of financial position at the
beginning of the period, the Group additionally recognized right-of-use assets of 4,819 million yen and leaseliabilities of 4,871 million yen and recognized decreased of 34 million yen in retained earnings and 18 million
yen in non-controlling interests.
The weighted average of the lessee’s incremental borrowing rates applied to lease liabilities recognized in thecondensed quarterly consolidated statements of financial position as of the date of initial application is 0.7% to
4.8%.
(Segment information, etc.)(1) Summary of reportable segments
The Company’s reportable segments are its business units that have separate financial information available andthat are subject to periodical examinations by the Board of Directors for the purpose of determining the allocationof management resources and evaluating performance.
Under its “One Asia” vision, the Group aims to serve as a bridge connecting various opportunities andengineers in Asia. With the Online Travel Agency Business, IT Offshore Development Business and Investment
Business as its three mainstay businesses, the Group classifies these businesses, with their highly uniquebusiness models, as its main reportable business segments and draws up and determine Group strategies
accordingly.

―18―

The businesses and main products belonging to each reportable segment are as follows:
Online Travel Agency Business: AirTrip travel agency services, services for foreign visitors
in Japan, life innovation services, Healthcare Business

IT Offshore Development Business: Lab-type offshore development services and BPO
services

Investment Business: Investment in growing companies and turnarounds(2) Calculation method of segment income (loss) and segment performance
The accounting process for the reportable business segments is the same as that used for the preparation of thecondensed consolidated financial statements.

―19―

(3) Information about segment income (loss) and segment performanceSix months ended March 31st, 2020 (Oct. 1st, 2019 – Mar. 31st, 2020)(Unit: Million Yen)
Reportable segments
Other(Note 1)Total

014,741-

14,741

425

-

425

△425

-

71 15,166

0

15,166△425

14,741

△0

△662

△669

△1,332

OnlineIT Offshore
TravelInvestment
Development
AgencyBusiness
Business
Business
External sales revenue

13,653

1,016

Intersegment revenue-

425

Total sales revenue

13,653

1,441

Segment profits(losses) (Note 3)

△473

53

Total

71 14,741
-

△243

△662

Adjustments Consolidated(Note 2)
Total

Financial income

10

Financial expenses△103

Income before income
taxes△1,425(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising revenue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated
statement of income.
(Note４) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’sbusiness is classified as a discontinued business. The above table shows the amount of continuing business excluding
discontinued business.

Six months ended March 31st, 2021 (Oct. 1st, 2020 – Mar. 31st, 2021)(Unit: Million yen)
Reportable segments
Online IT Offshore
Travel Developm Investment
Agencyent
Business
Business Business

Total
Total

Adjustments Consolidated(Note 1)
Total

External sales revenue

9,931

925

345

11,202

11,202-

11,202

Intersegment revenue

-

142

-

142

142

△142

-

Total sales revenue

9,931

1,068

345

11,345

11,345△142

11,202

Segment
profits(losses) (Note 2)

1,394

613

435

2,443

2,443

△442

2,001

Financial income

33

Financial expenses△79

Income before income
taxes

1,955

(Note 1) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 2) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consoli dated
statement of income.

―20―

Second quarter ended March 31st, 2020 (Jan. 1st, 2020 – Mar. 31st, 2020)(Unit: Million Yen)
Reportable segments
OnlineIT Offshore
TravelInvestment
Development
AgencyBusiness
Business
Business

Total

Other
(Note 1)

Total

Adjustments Consolidated(Note 2)
Total

External sales revenue

6,251

508

0

6,760

0

6,760

-

6,760

Intersegment revenue

-

209

-

209

-

209

△209

-

Total sales revenue

6,251

718

0

6,970

0

6,970

△209

6,760

Segment
profits(losses) (Note 3)

△780

13

△406

△1,173△0 △1,173△360△1,534

Financial income

4

Financial expenses△45

Income before income
taxes△1,575(Note 1) The category “Other” includes the business segments not included in the reportable segments, such as advertising revenue.
(Note 2) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 3) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated
statement of income.
(Note４) HIKAWA CO., LTD. was excluded from consolidation in the Fiscal Year ending September 30th, 2020, so this company’sbusiness is classified as a discontinued business. The above table shows the amount of continuing business excluding
discontinued business.

Second quarter ended March 31st, 2021 (Jan. 1st, 2021 – Mar. 31st, 2021)(Unit: Million Yen)
Reportable segments
OnlineIT Offshore
TravelInvestment
Development
AgencyBusiness
Business
Business

Total
Total

Adjustments Consolidated(Note 1)
Total

External sales revenue

4,092

499

49

4,641

4,641

-

4,641

Intersegment revenue

-

51

-

51

51

△51

-

Total sales revenue

4,092

551

49

4,693

4,693

△51

4,641

Segment profits(losses) (Note 2)

767

583

119

1,470

1,470

△231

1,238

Financial income

27

Financial expenses△36

Income before income
taxes

1,229

(Note 1) The category “Adjustments” mainly consists of corporate expenses that do not belong to any reportable segment andintersegment transactions.
(Note 2) The segment profit or loss has been adjusted to the operating income stated in the condensed quarterly consolidated
statement of income.

(Important subsequent event)Not applicable―21―