Apamanshop Holdings Co., Ltd.

Briefings on Financial Results
for the Fiscal Year
Ended September 30, 2015

Monday, November 16, 2015
Apamanshop Holdings Co., Ltd. (Securities code: 8889)

Copyright © Apamanshop Holdings Co.,Ltd. All rights reserved.

Topics
General topics
・Review of Medium-Term Management Plan
・Completion of acquisition and cancelation of all Class A preferred stock
Topics related to profit decline
・Recording of income taxes–deferred in connection with Income Tax Act
revisions and review of tax effect schedule
Topics related to growth strategy
・Commencement of sales of new products (insurance and 24-hour emergency
assistance service for a fixed monthly fee / Apamanshop rent guarantees)・Strengthening of subcontracted management (3,066-unit increase in FY2014)

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Contents
1. Consolidated
Overview of Consolidated Results (3-year comparison)
Net Sales by Segment (3-year trend)

4. Principal Investment andFund Management Business(Rental income)Primary Real Estate Holdings

Operating Income by Segment (3-year trend)

Analysis of Net Sales and Operating Income byBusiness Segment (YoY)

5. Other Business

Overview of Consolidated Balance Sheet(vs. end-FY2013)(Metered parking, SOHO, vending machines,registration center)

Overview of Consolidated Cash Flows (YoY)

Related Businesses

2. Brokerage Business6. Medium-Term Management Plan

(Directly managed + franchise)Growth Strategy

Overview of Brokerage Business (3-year comparison)

Quantitative Targets (Income plan)

Promotional Campaigns

Quantitative Targets (Financial plan)
Quantitative Targets (Brokerage segment)

3. Property Management Business

Quantitative Targets (PM segment)(Rental management + sub-leasing)
Overview of Property Management Business(3-year comparison)2
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1. Consolidated

3
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1. Overview of Consolidated Results (3-year comparison)(Millions of yen)

FY2013

FY2014

Net sales

36,64236,65537,270614

・ Core business sales
growthGross profit

9,914

10,221

10,907686

・ Core businessearnings growth

Operating income

2,310

2,108

2,407

298

(6.3%)(5.8%)(6.5%)(0.7%)・ Core businessearnings growth(Operating income margin)

YoY

Major factors contributing
to year-on-year change

FY2012・ Equity in earnings of affiliates

Ordinary income

1,408

1,439

1,682243(FY2013: ¥188 million  FY2014:¥107 million)・ ¥152 million decline in interest
expenses, etc.

Net income

2,213

1,482

(3,666)-5,149

EBITDAE B I T D A ＊

3,670

3,762

3,910

147

・ Income Tax Act revision,review of tax effectschedule

・ Increase in ordinary
incomeEBITDA = Ordinary income + interest expenses + depreciation + amortization of goodwill
Note: Amounts are truncated and percentages are rounded off to the first decimal place. Accordingly, figures calculated using mathematical formulas and the resulting figures stated in thisdocument may not agree.

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2. Net Sales by Segment (3-year trend)

36,64236,65537,27010,464

11,088

11,321(Millions of yen)

Brokerage Business
Property Management
Business
Principal Investment andFund Management Business

24,41323,642

23,658Other BusinessCorporate and eliminations

1,932 451

1,836-619-597

FY2012FY2013686

1,938-805

1,156

FY2014

Note: From FY2013, the parking and SOHO office rental businesses were transferred from the Property Management Business to the Other Business, but the above FY2012
results are shown using the previous segment classifications.

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3. Operating Income by Segment (3-year trend)

2,310

1,989

2,108

2,407

2,086
2,050

(Millions of yen)

Brokerage Business
Property Management
Business
Principal Investment andFund Management Business

1,099

1,044

112

1,300

Other Business

121

Corporate and eliminations-812-900-895-78-8 -77-206

FY2012FY2013

FY2014

Note: From FY2013, the parking and SOHO office rental businesses were transferred from the Property Management Business to the Other Business, but the above FY2012
results are shown using the previous segment classifications.

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4. Analysis of Net Sales and Operating Income by Business
Segment (YoY)(Millions of yen)

FY2013

FY2014

Net salesGrossprofitGrossprofitmarginBrokerage Business

11,0885,954

Property Management (PM)Business

23,642

Principal Investment (PI) and FundManagement Business
Other Business
Adjustment (elimination or corporate)
Total

YoY

Net sales

Grossprofit

Grossprofitmargin

Net sales

53.7%

11,321

6,234

55.1%

233

280

1.4pp

3,698

15.6%

23,658

3,881

16.4%

16183

0.8pp

1,836

644

35.1%

1,938

759

39.2%

102

114

4.1pp

686

195

28.5%

1,156

246

21.3%

470

50

-7.2pp

(597)

(270)

–

(805)

(214)

–

-207

56

–

36,655

10,22127.9%

37,27010,907

29.3%

614

686

1.4pp

Gross
profitGrossprofitmargin

SG&A expenses (SG&A expenses
ratio)

8,113

22.1%

8,500

22.8%

387

0.7pp

Operating income (Operating incomemargin)

2,108

5.8%

2,407

6.5%

298

0.7pp

FY2013Operatingincome2,108Increase ingross profit in
Increase in
PI and Fundgross profit in Management
Increase in PM BusinessBusinessgross profit in+183+114
Brokerage
Business+280

Increase in
Increase ingrossprofit ingross profit
Adjustment
in OtherBusiness+56+50

Increase in
SG&A
expenses-387
FY2014
Operatingincome2,407

7

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5. Overview of Consolidated Balance Sheet (vs. end-FY2013)(Millions of yen)

Assets

FY2013

FY2014

Liabilities

YoY

6,587

6,592

5

Cash and deposits

2,535

2,609

73

Notes and accounts
receivable–trade

1,411

1,494

82

Other

2,639

2,488

-150

Non-current assets

41,96436,899-5,064

Property, plant andequipment

17,342

17,178-163

Intangible assets

13,15012,338-812

Goodwill

12,701

11,577-1,124

449

761

312

Investments and otherassets

11,471

7,382-4,088

Total assets

48,551

43,492-5,059Current assets

Other intangible assets

Goodwill outstanding and forward projection** (100 million yen)

YoY

8,168

1,068

Accounts payable–trade

804

860

56

Short-term loans payable*

2,066

2,847

780

Other4,229

4,460

231

Non-current liabilities

31,68733,311

1,623

Long-term loans payable

26,91728,294

1,376Long-term lease andguarantee deposited

4,376

4,327

-49

393

690

296

9,763

2,011

-7,751OtherNet assets* Includes current portion of long-term loans payable

Interest-bearing debt (consolidated basis)*** and Shareholders’ equity ratio(Millions of yen)
31,131
30,000189

15,000115

FY2014

7,100

Current liabilities

Interest-bearing debt (left axis)

17.9

Shareholders' equity ratio (right axis)

28,98431,50224201620.0124.580

FY2027

FY2026FY2025

FY2024FY2023

FY2022

FY2021

FY2020FY2019FY2018FY2017FY2016FY2015FY2014FY2013

FY2012FY2011FY2010FY20094FY2008

200180160140120100806040200

FY2013** Forward projection for goodwill outstanding is the projection for amortization of current goodwill outstanding.

00
FY2012FY2013

FY2014*** Interest-bearing debt (consolidated basis): Borrowings and bonds which are included under the Company’s

consolidated current liabilities and non-current liabilities

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6. Overview of Consolidated Cash Flows (YoY)(Millions of yen)

AssetsNet cash provided by (used in) operating
activities

FY2013

FY2014

YoY

2,605

2,800

195

1,364

1,621

257

535

579

44

1,142

1,154

11(185)

(744)

-559

Purchase of intangible assets

(196)

(468)

-272

Proceeds from sales of property, plant andequipment

245

0-244

(2,978)(1,985)

992

(820)

(3,889)-3,068(2,103)2,140

4,243(554)

73

628

3,083

2,529

-554

2,529

2,602

73

Income before income taxes
Depreciation
Amortization of goodwill

Net cash provided by (used in) investing
activities

Net cash provided by (used in) financing
activities
Purchase of treasury shares
Increase/decrease in borrowings

Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning ofperiod
Cash and cash equivalents at end of period

9
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2. Brokerage Business(Directly managed + franchise)

10
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1. Overview of Brokerage Business (3-year comparison)Solid trend in both net sales and operating income(Millions of yen)

FY2012FY2013

FY2014

Net sales (Segment)

10,464

11,088

11,321

Franchise agencies

6,437

6,828

Directly managed agencies

4,026

6,800
4,288

Operating income (Segment)

1,989

2,050

2,086

Franchise agencies
Directly managed agencies

834

1,054

1,155

995

1,124
962

No. of contracted franchises

1,062

1,132

1,159

981
81

1,043
89

1,064
95

Net sales*

62.1

57.5

56.1

Operating income*

17.7

12.9

12.2

Franchise agencies
Directly managed agencies

Directlymanaged(domestic)
per agency4,490* Net sales and operating income per agency are calculated based on the average number of directly managed (domestic) agencies open during the period.

Note: Amounts are truncated and percentages are rounded off to the first decimal place. Accordingly, figures calculated using mathematical formulas and the resulting figures stated inthis document may not agree.

11

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2. Promotional Campaigns
Carried out multi-target promotional campaigns for a broad customer base

12
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3. Property Management Business(Rental management + sub-leasing)

13
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1. Overview of Property Management Business(3-year comparison)
Solid trend in both net sales and operating income(Millions of yen)

FY2012FY2013

FY2014

Net Sales (Segment)

23,831

23,642

23,658Sub-leasing
Rental management

17,713
6,118

17,5396,102

17,498
6,160

Operating income

1,061

1,044

1,300

59,61960,42663,492

31,846
27,77332,86727,55935,851
27,641

Net sales per 1,000 units

397395382

Operating income per 1,000
units

17.7

17.4

21.0

Sub-leasing occupancy rate

93.8%

95.5%

95.4%

Total number of units
under management
Rental management
Sub-leasing

Notes: Amounts are truncated and percentages are rounded off to the first decimal place. Accordingly, figures calculated using mathematical formulas and the resulting figures stated in this document may notagree.
FY2012 figures are calculated using the segment classifications after the reclassification of the parking and SOHO businesses.
The sub-leasing occupancy rate (1 – (rent of vacant units ÷ total rent)) reported in monthly information is not applied.

14

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4. Principal Investment andFund Management Business(Rental income)15
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1. Primary Real Estate Holdings
Pursuing value enhancement for increased and more stable rental earnings
RIHGA Royal Hotel Kokura

Aruaru City2 building(multi-story parking garage)

Aruaru CityOne of Japan’s largest subculture buildings
Approximately 2.5 million visitors annuallyMulti-story, self-parking parking garage for 900 vehicles

Book value of real estate and NOI* (Millions of yen)Book value of real estate

NOI

NOI yield**

25,00020,00015.0%
17,072

16,71816,46510.0%

15,00010,000

5.6%

5.1%

6.0%
5.0%

5,000
963

983

858

0

0.0%
FY2012FY2013

FY2014* NOI (net operating income) = Gross profit from rent earnings at Principal Investment and Fund Management Business (excluding valueenhancement) + depreciation. Includes portion from real estate sold during the period** NOI yield = NOI ÷ consolidated book value of real estate at each fiscal year-end.

Note: 3Q FY2014 yield is annualized.

16

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5. Other Business(Metered parking, SOHO, vending machines,registration center )17
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1. Related Businesses
Cultivating new businesses for the future

Metered parking business

SOHO business

Vending machine business

Registration center (for SEO)

18
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6. Medium-Term Management Plan
(5-year period from FY2015 to FY2019)19
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1. Growth Strategy/Medium-term management plan (Strongperformance from new product sales and subcontracted management)(1) Commenced sales of new products(from October 2014)(from September 2015)
・ Monthly payment insurance(2) Strengthening subcontracted management

・ Apamanshop rent guarantees

・ FY2013: Increase of 3,066 units (9 marketing staff)
FY2014: Increasing marketing staff to 20-30

・ 24-hour emergency assistanceservice for a fixed monthly fee(3) Increase in number of agencies
・ Full-scale start of directly managed agency openings

20
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1. Growth Strategy/Initiatives in “B&B, short-term, and medium-term
rentals” and “IT” areas(4) Entering minpaku (B&B), short-term, and mediumterm rental markets (in stages from December 2015)(5) IT for explanations of important mattersand agency visits (from December 2015)

・ From medium- and short-term corporate needs to inboundtourists

・ Using information technology for explanations of importantmatters and agency visits to increase agency productivity(6) Automated data linkage
・ Achieving high productivity through automation

Productivity

Home builders
Developers
Funds
Managementcompanies
Private owners

ExtremelylowConvert(automated)

Customers

High

Properties
undermanagement
Properties notundermanagement

Manual entry

21
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B&B, short-term, and medium-term rentals

IT for explanations ofimportant matters

Customer service
via Internet

22
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2. Quantitative Targets (Income plan)(Millions of yen)

FY2014FY2015FY2016FY2017FY2018FY2019(Actual)(Plan)(Plan)(Plan)(Plan)(Plan)

37,27039,00043,00046,60051,00056,000Brokerage Business

11,321

12,20013,70014,80015,90016,800Property Management
Business

23,65924,40026,90029,50032,80037,000

Other Businesses*

2,290

2,400

2,400

2,300

2,300

2,200

10,907

11,90013,60015,20016,90018,400Brokerage Business

6,234

6,900

8,000

9,000

10,00010,800Property Management
Business

3,882

4,100

4,700

5,300

6,000

6,700

791

900

900

900

900

900

Operating income

2,407

2,700

3,200

3,700

4,400

4,900

Ordinary income

1,682

2,300

2,800

3,300

4,000

4,600

Net income(3,666)

1,400

1,500

1,600

2,200

2,700

EBITDA

3,910

4,300

4,900

5,400

6,000

6,600

Net sales

Gross profit

Other Businesses*

EBITDA = Ordinary income + interest expenses + depreciation + amortization of goodwill* Other businesses: Principal Investment and Fund Management Business, Other Business, and corporate and eliminations

23

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3. Quantitative Targets (Financial plan)(Millions of yen)

FY2014FY2015FY2016FY2017FY2018FY2019(Actual)(Plan)(Plan)(Plan)(Plan)(Plan)

Total assets

43,492

41,50040,30038,90038,80039,000Total liabilities

41,48038,30035,80032,90030,70028,400Borrowings

31,141

27,90025,60023,20020,90018,600

2,011

3,200

4,500

6,000

8,100

10,600Total net assets

Shareholders’ equity ratio

EBITDA* multiple**(Millions of yen)

50,000

8.0

8.0(Millions of yen)
60,000

27%

30.0%

6.5
25.0%

40,00030,00040,000 43,492

4.3
31,141
27,90020,0003.5
25,6002.8

23,20020,90010,00003,910
FY2014(Actual)

4,300
FY2015(Plan)

Borrowings (left axis)

4,900

20%

6.0

5.25,400

6,000

18,6004.0

FY2017(Plan)EBITDA (left axis)

FY2018(Plan)

2.00.0EBITDA multiple (right axis)

38,8004.5%
0FY2014(Actual)

3,270
FY2015(Plan)

20.0%

15%
39,00038,9008%

20,0006,600
FY2019(Plan)

40,30011%

1,963
FY2016(Plan)

41,5004,400
FY2016(Plan)

Total assets (left axis)
Shareholders’ equity ratio (right axis)

5,900
FY2017(Plan)

15.0%
10.0%

8,000

FY2018(Plan)

10,6005.0%
FY2019(Plan)

0.0%

Shareholders’ equity (left axis)* EBITDA = Ordinary income + interest expenses + depreciation + amortization of goodwill ** EBITDA multiple: Interest bearing debt ÷ EBITDA (operating income + depreciation + amortization of goodwill)

24

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4. Quantitative Targets (Brokerage segment)
No. of agencies

Unit

FY2014FY2015FY2016FY2017FY2018FY2019Franchise
agencies

Agencies

Directly managed
agencies

Agencies

Subtotal

Agencies

Brokerage segment
Net sales

Billions ofyen

11.3

12.2 (+0.9)

13.7 (+1.5)

14.8 (+1.1)

15.9 (+1.1)

16.8 (+0.9)

Brokerage segment
Operating income

Billions ofyen

2.0

2.3 (+0.3)

2.6 (+0.3)

2.8 (+0.2)

3.1 (+0.3)

3.2 (+0.1)

Directly managed
segment
Net sales andoperating income peragency (domestic)

Millions ofyen

56
1255 (-1)
11 (-1)55 (+0)
11 (+0)55 (+0)
11 (+0)55 (+0)
11 (+0)55 (+0)
11 (+0)1,064 1,084 (+20) 1,104 (+20) 1,124 (+20) 1,144 (+20) 1,164 (+20)
95

110 (+15)

125 (+15)

140 (+15)

155 (+15)

170 (+15)

1,159 1,194 (+35) 1,229 (+35) 1,264 (+35) 1,299 (+35) 1,334 (+35)

25
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5. Quantitative Targets (PM segment)
Number of properties
under management

Unit

FY2014FY2015FY2016FY2017FY2018FY2019Rentalmanagement

Thousandsof units

36

39 (+3)43 (+4)48 (+5)54 (+6)

61 (+7)Sub-leasing

Thousandsof units

28

29 (+1)31 (+2)34 (+3)38 (+4)43 (+5)

Total

Thousandsof units

64

68 (+4)74 (+6)82 (+8)92 (+10)104 (+12)

PM segment
Net sales

Billions ofyen

23.6

24.4 (+0.8)

26.8 (+2.4)

29.5 (+2.7)

32.8 (+3.3)

37.0 (+4.2)

PM segment
Operating incomeBillions ofyen

1.3

1.3 (+0.0)

1.5 (+0.2)

1.9 (+0.4)

2.3 (+0.4)

2.8 (+0.5)

PM segment
Net sales andoperating income per
1,000 units

Millions ofyen382
21380 (-2)
21 (0)

378 (-2)
22 (+1)378 (0)24 (+2)377 (-1)
26 (+2)377 (+0)
29 (+3)

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Thank YouContact
IR Division, Apamanshop Holdings Co., Ltd.
E-mail: ir@apamanshop.co.jp
Phone: 03-3231-8020 (main)

The information presented in these materials, excluding past results but including management strategies, plans, and forecasts, is forwardlooking information, based on certain assumptions deemed reasonable in light of the information available at the time these materials wereprepared. Actual results may differ significantly from these forecasts as a result of a variety of factors going forward.
The information contained in these materials is subject to change without notice. Every effort has been made to ensure the accuracy of theinformation contained herein, but the Company makes no guarantee regarding the accuracy, usefulness, or timeliness of such information. TheCompany 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 an overview of the business of Apamanshop Holdings Co., Ltd., and its affiliates,
and are not intended as a solicitation or offer for investment. Investment decisions are entirely those of the investor.