Briefings on Financial Results
for the Second Quarter of the Fiscal Year Ending September 30, 2019 (FY2019)

April 26, 2019

APAMAN Co., Ltd.
JASDAQ: 8889
Copyright © APAMAN Co.,Ltd. All rights reserved.

01. Benefits of Upfront Investments –Sharing Economy Business

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11. Co‐working

Co‐working
As of March 31, 2019
No. of locations

22(19 locations in Japan, 3 overseas)

No. of fee‐paying members

2,454
fabbit Global Gateway “ACROS Fukuoka” opened on December 7, 2018

Note: The number of locations includes sites that have been leased but not yet started operations
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1. Co‐working (New Concept)

シェアリングエコノミー

A platform for global communications, fabbit Global Gateway has locations inOtemachi (Tokyo), Osaka Honmachi and Fukuoka Tenjin and plans to open a co‐working facility in San Francisco during 2019
"Otemachi""ACROS Fukuoka""Osaka Honmachi"“San Francisco"

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fabbit Global Gateway "Otemachi"

31. Co‐working (Alliances and other collaboration)
Interaction with many prominent ecosystem players in Japan and overseas
Japan• Supported the Entrepreneur Koshien event held by NICT and the Ministry of Internal Affairs
and Communications• Presentation by the fabbit CEO at the Science & Innovation Forum held by the Cabinet Office,City of Fukuoka and others• Operating COMPASS Kokura, a private/public‐sector co‐working facility, with the City ofKitakyushu• Opened fabbit Hachioji as part of facilities to support manufacturing innovation in Tokyo’s
Tama district• Started the Leap Over accelerator program (phase 3) with Mitsubishi UFJ Research andConsulting Co., Ltd.
• Established a start‐up support fund with Nippon Venture Capital Co., Ltd.
• Equity and business alliance with Campfire, Japan’s largest crowdfunding site
• Business alliance concerning the sharing economy for human resources with WorkshiftSolutions Co., Ltd., Japan’s largest crowdsourcing service platform for outsourcing jobs
worldwide• Business alliance concerning a young worker with professional skill sharing service withPasona Inc.
• Announcement of an open innovation program created with Creww Inc.
• Conducted a joint creation problem solving class at Kyushu University• Participation in the development of an entrepreneurship program by Kyushu Institute ofTechnology• Started an open innovation service for large companies• The fabbit Fund made its first investment by purchasing shares of Mamasan & Company• Acquired shares of StreetAcademy, Inc.
• Holding of Independents Club Tokyo with Nippon Venture Capital Co., Ltd.
• SLUSH Round Table event (a discussion group mainly for the new business development
sections of large companies)• Alliance with the Trusted B‐to‐B communication platform• Reinforced alliance between the fabbit joint business organization and Nishi‐Nippon City BankCopyright © APAMAN Co.,Ltd. All rights reserved.

Overseas• Business alliance including jointly holding Slush (Tokyo), the world’s largest start‐up
event• President of APAMAN named to Advisory Board of DocuSign (NASDAQ)• Fenox Venture Capital (Operator of Startup World Cup Kyushu PreliminaryTournament)• Fenox Venture Capital (Judge, Startup World Cup Japan Preliminary Tournament)• Acquired shares of Workbar (Boston)• Acquired shares of fabbit (the Philippines)• Speech by Wikipedia founder Jimmy Wales at fabbit National Conference 2017
• Speech by Twitter co‐founder Biz Stone at fabbit National Conference 2017
• Started the fabbit Global Gateway (Otemachi, Osaka Honmachi, ACROS Fukuoka) co‐working space business to serve start‐up companies with global aspirations• Speech by YouTube co‐founder Chad Hurley at fabbit National Conference 2018
• Speech by Apple co‐founder Stephen Wozniak at fabbit National Conference 2018
• Speeches by Chad Hurley and Stephen Wozniak at Global Innovators in Startup CityFukuoka

41. Co‐working (Alliances and other collaboration)
Interaction with many prominent ecosystem players in Japan and overseas

Note: Photos were taken at the fabbit National Conference 2018, held in Tokyo on December 5, and Global Innovators in Startup City Fukuoka on December 6.
Copyright © APAMAN Co.,Ltd. All rights reserved.

51. Co‐working (Selected locations)Global Gateway “ACROS Fukuoka”■Address: 1‐1‐1, Tenjin, Chuo‐ku, Fukuoka(Directly connected to Tenjin underground
shopping mall, five‐minute walk from Exit
No. 16 of Tenjin Station)■Opened: December 7, 2018
■Seats: 28 designated seats, including seats in 12
individual rooms
100 non‐reserved seats, conference rooms■ Floor area: 455.34m2

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1. Co‐working (Selected locations)

FGG Otemachi

FGG Osaka Honmachi

fabbit Aoyama

fabbit Otemachi

fabbit Ginza

fabbit Hachioji

fabbit Sakae

fabbit Hiroshima Ekimae

COMPASS Kokura

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2. Parking

Parking
As of September 30, 2018

3,028 parking spaces+ 458
As of March 31, 2019

3,486 parking spaces
Note: The number of locations includes sites that have been leased but not yet started operations
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3. Minpaku

Minpaku
As of September 30, 2018716 rooms+ 153
As of March 31, 2019869 rooms
Notes: The number of locations includes sites that have been leased but not yet started operations
Locations operated by our affiliates are included
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93. Minpaku (Selected locations)Grandouce Sejour

Grandouce Shitennoji

Grandouce Dotonbori

Grandouce Casa‐Comoda

Grandouce Nihombashi

Grandouce Namba‐nishi

Grandouce Villa Tsuruhashi

Grandouce Villa Tengachaya

Grandouce Hakata

Grandouce Buena VistaGrandouce Namba‐higashi

Grandouce Rokugodote

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104. Share Cycle

Share cycle
As of September 30, 2018490 bicycles+ 65
As of March 31, 2019555 bicycles
Bicycle sharing agreements have been signed with the following municipalities:
Fukutsu City, Iizuka City, Koga City, Munakata City, Nakagawa City, Taito‐ku, Yamato City, Chiba City, Saitama City, Isen‐cho, Tokunoshima‐cho, Amagi‐cho
Note: The number of bicycles includes bicycles that have been leased but are not yet in use
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2. Benefits of Upfront Investments –Platform Business

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1. Apartment Rental Management

Apartment rentalmanagement
As of September 30, 2018

90,198 units‐ 2,682
Growth in units under management(Units)

As of March 31, 201990,19860,42663,49270,041

71,458FY2014FY2015FY2016FY2017

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FY201887,51687,516 units

2Q FY201913

2. Included and Associated Services

Property owner

Tenant databaseNote for

databaseNote for about

about 1 million
people200,000 people

About 1 million
units undermanagementNote

2Q FY2018

Note: Estimate of about 7 million people for the intermediarydatabase▼Examples of additional included services

Insurance

Rent guarantees

Gross profit of included
and associated services

Emergency
assistance

1,014 million yen‐28 million yen

Electricity/ Gas

Money transfers

Telecommunications
2Q FY2019

Key exchange

Collection of fees for
NHK subscriptions

Collection of fees for
CATV subscriptions

986 million yen

and others

Note: Includes the operations of franchised locations
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3. 2Q FY2019 Consolidated Results

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1. Overview of Consolidated Results (YoY comparison)(Millions of yen)

2Q FY2018

2Q FY2019

Remarks

YoY change
Amount%Net sales

20,771

23,467

Increase in the number of properties
under management in the Platform
Business

Gross profit

5,780

5,761

Increase in the number of properties
under management in the Platform
Business‐18‐0.3%

SG&A expenses

4,778

4,938

Upfront investments in the Sharing
Economy Business

+160

+3.4%

Operating profit(operating margin)

1,002

823

(4.8%)(3.5%)

Upfront investments in the Sharing
Economy Business‐179‐17.9%

Ordinary profit

682481

Upfront investments in the Sharing
Economy Business‐201‐29.5%

Profit attributable toowners of parent(441)(771)

Accident losses‐1.0 billion yen
Insurance revenue +240 million yen

‐329

‐

EBITDANote

1,655

1,335

Decrease in leasing income due tosale of properties in prior FY‐319‐19.3%

Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill
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+2,696+13.0%

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2. Overview of Consolidated Balance Sheet (vs. end‐FY2018)(Millions of yen)

Liabilities andnet assets

End‐FY2018

2Q
FY2019Current liabilities

10,523

10,600‐76

Accounts payable‐
trade

1,005

1,403+397+377

Short‐term loans
payableNote

1,979

2,239+259

1,185+153

Other

7,538

6,957

‐581 Provision for

4,268

4,915

Short‐term loans+646
receivable: +463

Non‐current assets

20,904

20,833

Property, plant andequipment

4,693

Intangible assets

Assets

End‐FY2018

2Q
FY2019Current assets

14,641

12,823‐1,817

Cash and deposits

7,773

4,777

‐2,995

Notes and accounts
receivable‐trade

1,567

1,945

Operational
investment securities

1,031

Other

YoY
changeRemarks

YoYchangeRemarks

Accrued taxes: ‐1,051
accident losses:

Non‐current liabilities

20,474

19,533‐941‐70

Long‐term loans
payable17,797

16,883

‐914

4,841

+147

Long‐term lease andguarantee deposited

1,750

1,713

‐36

9,207

9,166

‐40926936+9Goodwill

7,215

7,146

‐68

Total liabilities

30,99830,133‐864

Other intangible
assets

1,991

2,019

+28

Capital

7,983

7,983

‐

Investments and otherassets

7,003

6,826

‐177

Net assets

4,546

3,523

‐1,023

Total assets

35,54533,657‐1,888

Total liabilities andnet assets

35,54533,657‐1,888

Note: Includes current portion of long‐term loans payable
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Other508

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4. 2Q FY2019 Results by Segment

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1. Net Sales and Operating Profit by Segment (YoY comparison)
Net sales increased in all three segments(Millions of yen)

Sharing Economy

Platform

Cloud Technology

Operating loss increased due toupfront investments

Decrease in earnings from
included and associated services

Growth in operating profit

Other business

18,765

Left: 2Q FY2018

16,262Right: 2Q FY2019

Netsales
3,857
616

1,006

1,276

Operatingprofit

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(335)

732

260

(131)

(192)

1,204

346

(154)

4,183

498

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2. Sharing Economy Business (YoY comparison)(Millions of yen)

2Q FY2018

2Q FY2019

YoY change
Amount%Net sales

616

1,006+390+63.4%

Operating profit(operating margin)

(154)

(335)

‐181

‐116.9%Directly managed locations
22 →3,028 parking spaces→

parking spaces

Contracted bicycles
716 rooms →rooms

490 bicycles →bicyclesNotes: The number of locations/bicycles includes sites/bicycles that have been leased but not yet started operations or not yet in use
Minpaku locations include rooms operated by our affiliates
Share cycle includes bicycles at alliance partners
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3. Platform Business (YoY comparison)(Millions of yen)

2Q FY2018

YoY change

2Q FY2019

Amount%Net sales

16,262

18,765+2,502+15.4%

Operating profit(operating margin)

1,276

1,204‐72‐5.7%

StoresProperty management

Examples of included and associated services

Number of directly managed
franchised stores

Number of units under management

Gross profit of included and associated services

107 stores →storesCopyright © APAMAN Co.,Ltd. All rights reserved.

90,198 units →units

1,014 million yen →million yen

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4. Cloud Technology Business (YoY comparison)(Millions of yen)

2Q FY2018

Net sales
Operating profit(operating margin)

YoY change

2Q FY2019

Amount%3,857

4,183+326+8.5%

346

498+152+44.0%■ Cloud technology services
Introduction CLOUD

Appraisal CLOUD

Note: The sharing key is a product of a company in which APAMAN has made an investment
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Sharing key

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5. Analysis of Net Sales and Operating Profit by Segment (YoY)(Millions of yen)

2Q FY2018

2Q FY2019

Gross profit

Gross profit
margin

616

77

12.6%

Platform

16,262

5,065

Cloud Technology

3,857

Other business
Adjustment (elimination or corporate)

Gross profit

Gross profit
margin

1,006

66

6.6%

31.1%

18,765

5,226

799

20.7%

4,183

732

257

35.2%

(697)(419)

20,771

5,780

Net sales

Sharing Economy

Total

YoY change

SG&A expenses (SG&A expenses ratio)
Operating profit (operating margin)

Gross profit

Gross profit
margin+390‐11‐6.0%

27.9%+2,502

+160

‐3.3%

969

23.2%

+326

+169

+2.4%

260

64

24.9%

‐472

‐192

‐10.3%

‐

(749)

(564)

‐

‐51‐145‐

27.8%

23,467

5,761

24.6%

+2,696‐18‐3.3%

Net sales

Net sales

4,778

23.0%

4,938

21.0%

+160

‐1.9%

1,002

4.8%

823

3.5%

‐179

‐1.3%

2Q FY2018

1,002

Sharing Economy‐11

Operating profit

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Platform+160

Cloud Technology+169

Gross profit

Other business‐192

Adjustment‐145

SG&A Expenses‐160

SG&AExpenses

2Q FY2019823
Operating profit23

5. 2Q FY2019 Consolidated Forecast and Growth Strategy

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1. Core Strengths of the APAMAN Group

Business operations that use platforms andtechnologies

Sharing Economy

Platform

Cloud Technology

Data mining using big data that includes about
200,000 property owners, about 1 million tenants
and other information

A team of about 250 engineers and creators

Notes: Platform figures include the franchised operations
Cloud Technology engineers and creators are totals for all group companies
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2. Overview of Consolidated Forecast (YoY comparison)(Millions of yen)

YoY change

FY2019Forecast

FY2018Results

AmountNet sales

41,68245,000Operating profit(operating margin)

1,626(3.9%)

Ordinary profit

Profit attributable to ownersof parent

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%+3,318108.0%

2,000+374(4.4%)(+0.5%)

123.5%

881

1,400+519

160.0%(1,073)

(100)

+973

‐26

3. Consolidated Forecast by Segment(YoY comparison –Sharing Economy Business)
Goal is to become profitable while continuing to make upfront investments(Millions of yen)

FY2018 Results

Operating profit

FY2018Results

22 locations

FY2019 Forecast(462)3,028parking spaces

YoY change

0716 rooms+462

490 bicycles

FY2019Targets

Notes: All figures are on a contractual basis and include group companies
Minpaku locations include rooms operated by our affiliates
Share cycle includes bicycles at alliance partners
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27

4. Consolidated Forecast by Segment(YoY comparison –Platform Business)
Steady growth in operating profit due to an increasing occupancy rate and higher
gross profit of included and associated services(Millions of yen)

FY2018 Results

Operating profit

FY2018Results

FY2019 Forecast

1,973

90,198 units

YoY change

2,200+227

1,981 million yen

FY2019Targets

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5. Consolidated Forecast by Segment(YoY comparison –Cloud Technology Business)
Full‐scale launch of robot process automation and artificial intelligence businesses(Millions of yen)

FY2018 Results

Operating profit

A robot automatically collects property
information and sends the data to the coresystem

FY2019 Forecast

1,147

YoY change

1,150+3

A scanner reads property information andconverts it to a text format

A lineup of 14 cloud services

Introduction CLOUDStore visitor CLOUD

Appraisal CLOUD
etc...

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Copyright © APAMAN Co.,Ltd. All rights reserved.

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6. Dividend Policy

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31

1. Dividend Policy
Distributing earnings to shareholders is one of our highest priorities. The basic policy is todistribute earnings in a manner that takes into account results of operations and otherapplicable items. Although business operations are in the stage of making upfront
investments, we plan to pay dividends consistently in order to express appreciation toshareholders for their support.
■ Year‐end dividend per share(Yen)1212

FY2016FY20171414

FY2018FY2019 (forecast)

10

FY2015

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2. Company ProfileCompany name

APAMAN Co., Ltd.

President and CEOKoji Omura

Capital

7,980 million yen (as of September 30, 2018)

Employees(consolidated)

1,208 (as of September 30, 2018)

Head office

Asahi Seimei Otemachi Building, 2‐6‐1,Otemachi, Chiyoda‐ku, Tokyo

Main business

Sharing Economy
Platform
Cloud Technology

Securities Code8889 (JASDAQ Standard)

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★

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Cautionary Statements
These materials are prepared based on consolidated financial report for the second quarter of the fiscal year ending September 30, 2019. Amounts are rounded down to the nearest million yenand percentages are rounded off to the first decimal place. Accordingly, figures calculated using mathematical formulas and the resulting figures stated in this material may not agree. The
information presented in these materials, excluding past results but including management strategies, plans, and forecasts, is forward‐looking information, based on certain assumptions deemed
reasonable in light of the information available at the time these materials were prepared. Actual results may differ significantly from these forecasts as a result of a variety of factors goingforward. The information contained in these materials is subject to change without notice.
Every effort has been made to ensure the accuracy of the information contained herein, but APAMAN makes no guarantee regarding the accuracy, usefulness, or timeliness of such information.
APAMAN assumes no responsibility for losses incurred as a result of errors in the information contained herein.
These materials were prepared for the purpose of presenting the business overview of APAMAN and its affiliates, and are not intended as a solicitation or offer for investment. Investment
decisions are entirely those of the investors.
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