Newly Listed Company Introduction Report (Issued by The Stock Research Center)

HATCH WORK (148A TSE Growth)

April 12, 2024

Expanding profit opportunities while contributing to tenant attraction and themanagement operation efficiency of monthly parking lots
This report is an English translation of part of the report issued on March 29, 2024.
For inquiries concerning the report, please contract info@stock-r.org【148A HATCH WORK Sector：Information & Communication】
Fiscal YearNet sales

YoY

OperatingprofitYoY(mn yen)(%)(mn yen)(%)

Ordinaryprofit

YoY(mn yen)(%)

ProfitYoY(mn yen)(%)

Dec.2022

1,647

16.1-389--394--371

Dec.2023

2,056

24.8

20-

11-

77

2,444

18.9

194

9.7x

190

17.3x

263

Dec.2024

fEPS

BPS

DPS
(yen)

(yen)

(yen)

- -225.8-535.2

0.0

-

47.0

151.9

0.0

3.4x 148.0-0.0

Note: Non-consolidated basis.Figures for the fiscal year ending December 2024 is the company's forecasts.
It conducted 1:100 stock split on December 6, 2023.Per share indicies are adjusted retroactively.

Engaged in Business Related to Monthly Parking Lots and Rental MeetingRooms
HATCH WORK operates the monthly contract innovation business, which provides
services that allow owners and management companies of monthly parking lots togenerate stable profit and automate management operations, and the building innovation
business, which operates rental meeting rooms and offices. The monthly contract
innovation business, which is its growth field, accounted for 54% of net sales for fiscal year
ended December 2023.

Monthly Contract Innovation Business
HATCH WORK operates a monthly parking lot search portal website and provides aservice to match people looking for a monthly parking lot with those listed on its website.
It also subleases monthly parking lots.
Additionally, the company provides its online management support service to monthly
parking lot management companies. Business revenues consist of system usage feesfrom parking lot management companies, rent settlement fees received from parking lotusers, initial guarantee fees and monthly guarantee fees for guaranteeing delinquentparking lot rent payments.
When the company introduced its online management support service, existing parking lotusers did not use the company's delinquent payment guarantee and agency payment
settlement services. However, after existing users terminate their contracts, new parking
lot users will start using these two services when concluding their contracts online.
Therefore, this business exhibits a characteristic of increasing profits over time.

Building Innovation BusinessIn its building innovation business, HATCH WORK provides meeting room services, which
involve operating rental meeting rooms and office services, which mainly involve providing
rental offices. In fiscal year ended December 2023, meeting room services accounted for87% of net sales and office services for 13%.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

HATCH WORK (148A TSE Growth)

April 12, 2024

Financial Statements

Statement of income

Fiscal Year

Dec. 2021(mn yen)Dec.2022(%)(mn yen)Dec.2023(%)(mn yen)

Net sales

1,418

100.0

1,647

100.0

Cost of sales

1,026

72.4

952

Gross profit

392

27.6

695

Selling, general and administrative expenses

771

54.4

Operating profit-378
8

Non-operating income
Non-operating expenses

(%)

2,056

100.0

57.8

964

46.9

42.2

1,091

53.1

1,085

65.9

1,070

52.0

-

-389

-

20

1.0-

6-0-

7-

11-

9-

Ordinary profit

-378

-

-394-

110.5

Profit before income taxes

-365-

-398

-

271.3

Net profit-168--371-77

3.7

Balance sheet

Fiscal Year

Dec. 2021(mn yen)Current assets
Cash and deposits
Accounts receivable-trade
Inventories

Dec.2022(%)(mn yen)Dec.2023(%)(mn yen)

(%)

1,638

85.7

1,480

84.7

1,522

82.8

1,463

76.5

1,235

70.7

1,134

61.7

22

1.2

34

1.9

49

2.7

--0-

0-

274

14.3

268

15.3

315

17.1

114

6.0

98

5.6

67

3.6

Intangible assets

150.8

110.6

31

1.7

Investments and other assets

143

7.5

158

9.0

216

11.8

1,912

100.0

1,748

100.0

1,838

100.0

82643.2

1,090

62.4

1,240

67.5

Accounts payable - trade

10.1

2

0.1

3

0.2

Short-term borrowings

--100

5.7

100

5.4

130

6.8

85

4.9

60

3.3

Non-current assets
Property, plant and equipment

Total assets
Current liabilities

Current portion of bonds payable

92

4.8

70

4.0

50

2.7

Non-current liabilities

Current portion of long-term borrowings

639

33.4

484

27.7

345

18.8

Bonds payable

235

12.3

150

8.6

90

4.9

Long-term borrowings

377

19.7

307

17.6

231

12.6

445

23.3

173

9.9

251

13.744523.3

173

9.9251

13.7

Net assets
Owners' equity

Statement of cash flows

Fiscal Year

Cash flows from operating activities
Depreciation

Dec. 2021

Dec.2022

Dec.2023(mn yen)(mn yen)(mn yen)

-187

-190

72

3325

23

Cash flows from investing activities

15-14

12

Cash flows from financing activities

502

-23

-185

Dividends paid
Net increase in cash and cash equivalents
Cash and cash equivalents---330

-228

-100

1,333

1,105

1,004

Note:Non-consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

2/2

The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.