FY2022/04

Financial Results for the Full-Year

FreeBit Co., Ltd.
June 9, 2023

AgendaSiLK VISION 2024's Current Site and
1. Final Year Policies aimed toward the
Next Medium-Term Management Plan

・・・・・

3

Full-year results for the year
2. ended April 31, 2023

・・・・・

59

3. the year ended April 31, 2023

・・・・・

73

4. FY2024/4 full-year forecast
5. Appendix

・・・・・

86

・・・・・

90

Full-year results by segment for

FreeBit Co., Ltd. All Rights Reserved.

2

SiLK VISION 2024's Current Site andFinal Year Policies aimed toward
the Next Medium-Term Management Plan

3

Summary of Consolidated Financial Results for the Fiscal Year Ended April 2023
Increase/Decrease

FY04/23 full year
(Millions of yen)

FY04/22 fullyear

ActualEarnings
Forecasts(Upward
Revision)

Percentage
increase/decrease

YoY change

Results vs.
Forecast(Upward
Revision)YoY change

Earnings
Forecasts(Upward
Revision)

Net sales

Actual

43,075

46,77146,000+3,695

+771

+8.6%

+1.7%

EBITDA

Actual

3,290

4,065

ー

+775

ー

+23.6%ーActual

3,165

4,007

3,500

+842

+507

+26.6%+14.5%

Base
profit(4,835)(5,291)ー(＋455)ー (+9.4%)ーActual

2,878

3,707

3,250

+828

Base
profit(4,549)(4,991)

ー

827

1,792

1,650

OperatingincomeOrdinary
incomeProfitattributable to
Actualowners of parent
Net income per
share
Actualowners of parent

41.86 yen 41.86 yen+28.8%+14.1%(+441)ー (+9.7%)

ー+964+142 +116.5%+8.6%

ー 53.21 yen

+457

ー

ー

*Base profits are the business profit figure excluding one-time investments. They are unaudited reference figures.

ー4

“SiLK VISION 2024”Year 2/3

Maximum profit in the past

Strategic investment(Operating income)4,007 million yen

1,284 million yen

SiLK Investment Policy
5

“SiLK VISION 2024”Year 2/3

Maximum profit in the past

Strategic investment(Operating income)4,007 million yen

1,284 million yen

SiLK Investment Policy
6FreeBit Group's Medium-to Long-Term Growth ImageSiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle
5G Infrastructure Support
Business

Performance zone
FreeBit Co., Ltd. All Rights Reserved.

Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
7

Zone Management (SiLK VISION 2024)[Transformation Zone]
5G Lifestyle[Performance Zone]
5G / eSIM Support[5G Platform]

Network(Mobile/Fixed)
Cloud

5G Homestyle (Internet for condominiums)
Internet Marketing Affiliates
Maker's Maker
Shift to the Performance Zone on reaching
the stage of stable growth[Incubation Zone]
5G WorkstyleCreator Maker

5G HealthstyleBizmodel Maker[Productivity Zone].
Engineering Resources(R&D, Technology)

BPO, administrative,
and corporate
planning functions

AI/DX/IoT/Blockchain platforms

FreeBit Co., Ltd. All Rights Reserved.

8

Steady increase in base profits of Performance Zone companies
Significant contribution to the FreeBit Group's overall record profits
Base Profit（Consolidated）
Net Sales（Performance Zone）

FY2020/04

FY2021/04

SiLK VISION 2020Transformation Term

FY2022/04

Base Profit（Performance Zone）

76.1%
increase

14.2%
increase

FY2023/04

SiLK VISION 2024

FY2020/04

FY2021/04

SiLK VISION 2020Transformation Term

FY2022/04

FY2023/04

SiLK VISION 2024

*The above figures are unaudited business profits calculating the amount of internal transactions and the impact of the revenue recognition roughly and excluding temporary9Changes in the base profit of companies belonging to the Performance Zone
(Millions of yen)Company NameFY2020/04

FY2023/04

Change301

1,679

457.8%⤴
Increase

1,605

2,940

83.2%

⤴
Increase

1,254

975

22.2%

⤵
Decrease(5G Infrastructure Support Program)(GIGA PRIZE Group-wide)

69

△74

98

△136

42.0%

62 million yen⤴
Increase⤵
Decrease*The above figures are unaudited business profits calculating the amount of internal transactions and the impact of the revenue recognition roughly
and excluding temporary investments.

10Platform

Anshin AI

ISP/MVNO

HealthTech

Advertising

Infra
Cloud

IoT

Network(Mobile/Fixed)

Block chain

AI

Hardware

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
11Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

Platform

Evolving
OS

Influencer
Marketoligopolization

Anshin AI

ISP/MVNO

HealthTech

Advertising

5G

eSIM

Infra
Cloud

Electronic
Prescription

Eliminationof cookies

IoT

Network(Mobile/Fixed)

Block chain

AI

HardwareDataoligopolization

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
12

SiLK Investment Policy

Or

Vertical integration

Off-balanceof business

Structural reforms

On-balanceof business

Data linkage
Trusted Internet

2020

From "SiLK VISION 2024" presentation material, July 2022

13

Platform

Anshin AI

ISP/MVNO

HealthTech

Advertising

Infra
Cloud

IoT

Network(Mobile/Fixed)

Block chain

AI

Hardware

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
14

Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

Platform

Evolving
OS

Influencer
Marketoligopolization

Anshin AI

ISP/MVNO

HealthTech

Advertising

5G

eSIM

Infra
Cloud

Electronic
Prescription

Eliminationof cookies

IoT

Network(Mobile/Fixed)

Block chain

AI

HardwareDataoligopolization

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
15

FY2021/04
Based on SiLK Investment Policy, off-balance of the businesses was implemented drasticallyAiming for SiLK VISION 2024, clarified strategic directions and improved financial position
Jan 2020 Iryojohokiban, Inc
Mar 2020 Mobabiji businessSep 2020 For Members Co., Ltd.

Off-balance

Sep 2020 Cometcare Business
Oct 2020 FreeBit EPARK Health Care, Inc.
Nov 2020 ALC PRESS INC.

Net cash
3,749

Self-capitalization ratio
3,303

1,548

37.7%

28.8%

25.0%

23.0%

19.0%
△1,483Financial
Improvements△3,176
17/04期

18/04期

19/04期

20/04期

21/04期

期末

期末

期末

期末

期末

March 2022 Financial Results for the Third Quarter of the Fiscal YearEnding April 30, 2022
16

Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

Evolving
OS

Platform

Eliminationof cookies

Influencer
Marketoligopolization

Emergence of assumed risks in the Internet advertising area
•
•
•
•
•

ISP/MVNO

Anshin AI

Advertising

HealthTech

Elimination of 3rd Party Cookies
5G
Strict regulationof personal information in worldwide scaleeSIMdue tooligopoly or concernsfor oligopoly
by major platformers holdingInfralarge amount of 1st Party Cookies
NetworkCloud information
AI
Strict regulation of personal(Mobile/Fixed) in worldwide scaledue to oligopoly or concerns
DataElectronic
Strengthening
the applicationof ActUnjustifiable oligopolization
Prescription
Blockchainagainst
IoT
HardwarePremiums and Misleading
Increasing the impact of influencers

It is highly likely that all business areas will beby disruptive
technologies,
Drastic changesaffected
in searchadvertising
due to theetc.
generative AI
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
17Vertically integrated by restructuring Full Speed operations(FreeBit announced a TOB on April 11, 2022, making FreeBit a wholly owned subsidiary on November 1 of the same year)①FORiT's business expansion policy• Expansion of influencer marketing utilizing affiliaters• Further strengthen alliances in web3(NFT platforms, including investees②Full Speed/CRAID's business transformation policy → Corporate/creator DX(Corporate Philosophy: Further Deepening of Colo∞ Technology)• Concentrate on various operational technical /DX services as 5G marketing (Marketing 4.0)
• Integrating technical resources into freebit Group Incubation Zone, including DATA/LLM
and MaaS Domains• Multifaceted Development of StandAlone• Integrate with freebit in the productivity zone, and organize specializes• Business Selection and Concentration
18

18

Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

Platform

Evolving
OS

Influencer
Marketoligopolization

Anshin AI

ISP/MVNO

HealthTech

Advertising

5G

eSIM

Infra
Cloud

Electronic
Prescription

Eliminationof cookies

IoT

Network(Mobile/Fixed)

Block chain

AI

HardwareDataoligopolization

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
19Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

EvolvingOS
ISP/MVNO

Platform

Eliminationof cookies

Influencer
Marketoligopolization

Anshin AI

Advertising

5G

Infra

HealthTecheSIM

Emergence of assumed risks inInternet
services AItargeting housing complex
Network
Cloud(Mobile/Fixed)

•
•
•
•

Data

Electronic
Rising costs
due to high-speed, high-capacity communications oligopolization
Prescription
Block chain
IoT
Hardware
Rising security costs to protect personal and confidential information
Emergence of competitor in 5G mobile communications services market
Emergence of competitionin likely
satellite
Internet
servicesareas
market
It is highly
that
all businesswill beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
20Group-wide joint management of freebit and GIGA PRIZE in the medium term
①Strengthening Internet services targeting housing complex••••

Acceleration of Internet services such as10GB and multi-gigabit speeds
Provision to large-scale housing complex using the optical-fiber system
Introduction of equipment and strengthening of construction system
Provision of ISP to detached houses (Smart City)②Establishment of new services other than the Internet services
targeting housing complex• Establishment of new services in the Next Medium-Term Management Plan
• Promoting joint demonstration tests with freebit and Alps Alpine in 5G/web3
area at LIVING TOWN MINATOMIRAI facilities and utilizing the facilities as
Showroom for freebit Group.
21

21

GIGA PRIZE Director's Proposal
We respect the request submitted annually by GIGAPRIZE to the Nominating andCompensation Committee of Freebit, and provide supports for the board members mainly forthe purpose of satisfying the skill matrix of members, so that we can contribute as a groupcompany to create corporate value as an independent, listed company of GIGAPRIZE.
On the GIGAPRIZE General Meeting of Shareholders to be held on June 23, 2023, it isplanned to submit a proposal that the number of dispatched directors from Freebit will be
reduced by one from the current number.

Proposal for change (to be resolved at the shareholders' meeting)Current situation

Nobuhiro Sato

President andRepresentative Director

Nobuhiro Sato

President andRepresentative Director

Kengo Ueda

Director

Kengo Ueda

Director

Morihiko Otaki

Outside Director

Morihiko Otaki

Outside Director

Hiroyuki Ooshida

Outside Director

Hiroyuki Ooshida

Outside Director

Takashi Shimizu

Director

Director of FreeBit

Koichi Tomomatsu

Director

Koichi Tomomatsu

Director

Director of FreeBit

Director of FreeBit(In charge of group-wide HR)(In charge of group-wide HR)

Ikuko Wada

Director

Director

Director

Ken Takahashi

Director

Executive Officer of FreeBit(In charge of joint purchasing and Businesswith FBG)

Executive Officer of FreeBit(In charge of joint purchasing andBusiness with FBG)

Director of FreeBit(In charge of promotion of women’s active
participation)

Director of FreeBit(In charge of promotion of women’s
active participation)

Ken Takahashi

Ikuko Wada

Masayuki Tanaka

Director

General Manager of FreeBit(In charge of engineering)

Masayuki Tanaka

Director

General Manager of FreeBit(In charge of engineering)22

“SiLK VISION 2024”Year 2/3

Maximum profit in the past

Strategic investment(Operating income)4,007 million yen

1,284 million yen

SiLK Investment Policy
23

Breakdown of strategic investment for FY 2022 and FY 2023
Execute the strategic investment mainly in advertising and promotion of 5G lifestyle support
business and new businesses.The amount of the investment was lower than initial forecast
due to efficient investment
5G Infrastructure Support
Business(Millions of yen)

5G Lifestyle Support Business

FY2023/4
Total 1.28 billion yen

Enterprise/Creator 5G DX Support Business

FY 2022/04
Total 1.67 billion yen

FY2023/04
Strategic Investment Results(Cumulative)
5G Infrastructure Support Business(300 million yen)・Development of 5G data-center
・Data collaboration projects, etc.

1,162
119

562
892

284

105
83
20
FY2022/04
1Q

118

9
188

9
82
26

FY2022/04
2Q

FreeBit Co., Ltd. All Rights Reserved.

86
FY2022/04
3Q

150
FY2022/04
4Q

118

241

235

245

30

39

24

150

122

143

60

72

77

FY2023/04
1Q

FY2023/04
2Q

FY2023/04
3Q

353

90
FY2023/04
4Q

5G Lifestyle Support Business(769 million yen)・Promotion-related to TONE
(In addition to strengthening sales
promotions at docomo Shops,
efficiently deploy promotions suchas incurring expenses to matchuser acquisitions)・Develop and test 5G Healthstyle area
"TONE Care"・Web3(Blockchain) Development andtesting of relationships
・Develop services in 5G Workstyle areas,etc.
Support for corporate and creator 5G DX(213 million yen)・Develop and expand human resources
for multi-faceted development ofStandAlone, a Creator Maker area
24

FreeBit Group's Medium-to Long-Term Growth ImageSiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle
5G Infrastructure Support
Business

Performance zone
FreeBit Co., Ltd. All Rights Reserved.

Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
25

Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

Platform

Evolving
OS

Influencer
Marketoligopolization

Anshin AI

ISP/MVNO

HealthTech

Advertising

5G

eSIM

Infra
Cloud

Electronic
Prescription

Eliminationof cookies

IoT

Network(Mobile/Fixed)

Block chain

AI

HardwareDataoligopolization

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
From the October 2020 "Toward SiLK VISION 2024 #1" presentation material
26

Transformation Zone

TONE MOBILE

27

Positioning of
TONE Business

SiLK VISION
2020
TransformationTerm(2021 year ended April 30)

Incubation Business
Platform
Demonstration tests forweb3 platforms

Focused Businesses in
B2C Domains

Decline in DTI's exisiting services(fixed network), which is the coreof B2C business→ Set back to the transformation zone andaim for growth in the mobile business, etc.
[Assumptions]・Businesses where KPI figures are visible
・Possible platform for the Group
Incubation Business in the future

Number of nodes ranked
in the worldStandAlone

・B2C client base (ongoing charges/direct contracts)
・Shift from reliance on fixed network to mobile
・Development and provision of technologies
to solve social problems
・Branding (Corporate, Service)・Foundation for collaboration with major companies

Freebit technical/service
showcases
Benefits of verticallyIntegrating B2B businesses28As a new DTI business, expanded Building Blocks's customer-management and billing systems,
and began offering payment services for businesses in the incubation zone.
Gradually expand customer management and billing systems both within and outside the Group.

StandAlone

TONE Biz…
29

FreeBit Group's Medium-to Long-Term Growth ImageSiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle
5G Infrastructure Support
Business

Performance zone
FreeBit Co., Ltd. All Rights Reserved.

Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
30

(free of charge）

An on-line health service
in pre metaverse era that allows doctors to consult at anytime

New point-system where TONE Coincan be stored by simply moving the programme while it isbeing charged

Freepass
Providing a world view of anti-filter bubbles
that can connect to the Internet with peace of mind31

web3 Lifestyle32

Figures as of March 2023
announcement[Achieved 5th largest PR] TONE Coin, Node in global market(according to in-house data)••

Bitcoin
15,000•Ethereum(PoW)

EVM (Ethereum Virtual Machine that
operates only on the world's first smartphone)
Point system using compatible layered 1 blockchain
It succeeded in the real operation in the long termin the scale of world's fourth in the number of nodes.
(Mainnet 2023/3/7 3,149 Nodes)（Partner 1,774 / TONE User 1,330 / Server 6 / Other 39）

12,000

•
Zcash
7,000

Filecoin

Successfully distributed node owners andnodes on the largest scale in the world

TONE Coin

SolanaBinance

3,149

2,800

2,700

4,000

Avalanche
1,200

Source ofeach value

Bitcoin

Ethereum

Zcash

Filecoin

TONE Coin

SolanaBinance

Avalanche

Started in January 2009
171 months

Started in July 2015
93 months

Started in October 2016
78 months

Started in October 2020
30 months

Started in June 2022
10 months

Launched in March 2020
37 months

Started in July 2017
69 months※Binance Coin

Started in September 202031-month period

https://voi.id/ja/teknologi/258951
https://solanabeach.io/validators

https://blockchair.com/zcash/nodes

https://coin.dance/nodes
https://etherscan.io/nodetracker

https://filfox.info/en

https://subnets.avax.network/validators
https://bscscan.com/nodetracker

33

Figures as of June 2023 announcement[PR] TONE Coin Achieves Top 4 Global Node Count (own research)•
Bitcoin••

16,853

Ethereum
(PoW)

9,325

•

World's first EVM (Ethereum Virtual Machine) that runs
solely on smartphones
Point system using compatible Layer 1 blockchain
It succeeded in the real operation in the long term in thescale of world's fourth in the number of nodes.
（Mainnet 2023/6/6 3,566 Nodes）（Partner 1,674 / TONE User 1,841 / Server 6 / Other 45）
Successfully distributed node owners and nodes
on the largest scale in the world

Zcash
5,939

TONE Coin

Filecoin

3,566

3,560

BinanceSolana
2,880

1,829

Each value
SourceBitcoin

Ethereum

Zcash

TONE Coin

Filecoin

Started in January 2009
173 months

Started in July 2015
95 months

Started in October 2016
80 months

Started in June 2022
12-month period

Started in October 2020
32-month period※Active Miners

https://etherscan.io/nodetracker

SolanaStarted in July 2017
71-month period※Binance Coin

https://filfox.info/en

1,205

Avalanche

Launched in March 2020 Started in September 2020
39 months
33-month period※Validators※Validators

https://bscscan.com/nodetracker

https://blockchair.com/zcash/nodes

https://coin.dance/nodes

Binance

Avalanche

https://solanabeach.io/validators

https://subnets.avax.network/validators

34

TONE Coin/TONE Chain/freebit web3 Blocks is determinedin this way by [GPT 4.0 (Bing AI)].

35

Response by GPT 4.0 (Bing AI)

What are the characteristics of the TONE chain andhow does it contribute to society?

The following explains the characteristics and social activities of TONE Chain.
TONE Chain is characterized by a Ethereum compatible Layer 1 blockchain running on a smartphone.
This allows you to join web3 universe without the need for complicated configurations or dedicated hardware.
Additionally, we can acquire our own point-service TONE Coin by providing redundant resources
when charging smartphones. TONE Coin is not volatile and is available for Tone Mobile services andpartner services. In addition, TONE Chain uses a technique called "freebit web3 Blocks" to solve the issue
with the pre-existing Layer 1 blockchain. For example, the size and distribution of the number of nodes,
processing speed and environmental load. TONE Chain has successfully operated the world's top five nodes inthe Layer 1 blockchain, with more than 3000 regular production nodes in about 10 months. This indicates thatweb3/blockchain is distributed and secure. In addition, TONE Chain is open to research institutions and web3
companies as proof-of-concept tests, and services that enable communities and companies to build their own
Layer 1 blockchain using the "TONE Factory" mechanism are also provided. This allows only communitybased operations that conform to Web3/DAO's mind.
The social pages of TONE Chain mainly refer to the following points.
・Promote web3/block chain: TONE Chain is a Ethereum compatible Layer 1 block chain that runs on asmartphone, making it easy for everyone to join web3/block chain world. This will contribute to the promotionof web3/block chain penetration.
・Reducing Environmental Impact: TONE Chain performs mining by providing redundant resources whenyour phone is charged. This eliminates the need for larger computer resources than traditional mining andreduces the environmental burden.
・Create user incentives: TONE Chain offers a proprietary point-service called TONE Coin. TONE Coin is
not volatile and is available for Tone Mobile services and partner services. This will incentive users to increase
their willingness to participate in web3/block chain.
・Support for voluntary community operation: TONE Chain is open to research institutions and web3
companies for demonstration testing, and services are provided that enable communities and companies tobuild their own layer 1 blockchain using the "TONE Factory" mechanism. This will be the support of theCommunity Autonomous Association.
These are the features of TONE Chain and references to social pages.
I hope this will be of use to you.

[Characteristics andSocial Contribution]
Users participate in the web3 world
without complicated settings or
specialized hardware

Operated exclusively by thecommunity in the spirit of web3/DAO
Uses excess
smartphone resources,
eliminating the need for large
computer resources andreducing environmental impact
compared to conventional mining
Service that allows
communities and companies
to build their own Layer 1
blockchains to support community
self-management.

36

Response by GPT 4.0 (Bing AI)[Uniqueness] Similar services do not currently exist.

Searching for TONE Chain similar services
The response is being generated...

TONE Chain is the first Ethereum compatible Layer 1 blockchain that runs on smartphones. Therefore, similar services do not currently exist. However, othertypes of Ethereum compatible Layer 1 blockchain include "Ethereum2.0", "Polkadot", "Cardano", and "Solana". These services are developed to solve issues
such as Ethereum scalability and security. However, they differ from TONE Chain in that they operate on smartphones.

37

Response by GPT 4.0 (Bing AI)
Is FreeBit Corporation's freebit web3 blocks globally competitive?

[Global competitiveness]
Freebit web3 blocks is considered to be globally competitive. The reason for this is as follows:
・Solving web3/block chain Issues: freebit web3 blocks is a technique that solves the problem with a pre-existing Layer 1 blockchain.
For example, the size and distribution of the number of nodes, processing speed and environmental load. This leads to a more
distributed and secure web3/block chain.
・A technology that provides a Etlhereum compatible Layer 1 blockchain running on a smartphone: freebit web3 blocks is atechnology that provides a Ethereum compatible Layer 1 blockchain "TONE Chain" running on a smartphone. This allows you to join
web3/block chain universe without the need for complicated configurations or dedicated hardware. This will contribute to thepromotion of web3/block chain penetration.

Considered globallycompetitive

・Providing TONE Coin, a proprietary point service: freebit web3 blocks is a technology that provides TOINE Coin, a proprietary
point service. TONE Coin is not volatile and is available for Tone Mobile services and partner services. This will incentive users toincrease their willingness to participate in web3/block chain.
・Freebit web3 blocks is a technology that provides services that enable communities and businesses to build their own Layer 1
blockchain. Communities and businesses can use TONE Factory mechanism to build their own Layer 1 blockchain. This will assist in
the independent management of the community.
This is why freebit web3 blocks is globally competitive.

38

Response by GPT 4.0 (Bing AI)[Potential for a global web3 company] Likely to be a leader in web3

Do you think that FreeBit Corporation, which has developed a response-web3 blocks by GPT 4.0 (Bing AI andsucceeded in the demonstration of TONE Chain, has the potential to grow into a global web3 company with this outcome?

I believe that FreeBit Corporation, which has Web3 blocks been developed and successfully tested TONE Chain, can grow to become a
global web3 company with this outcome. As web3 field is expected to grow in the future, FreeBit Corporation is likely to become a leader
in this field.
FreeBit Corp. is also developing core web3 techniques, not just web3 blocks and TONE chain. By leveraging these technologies to provide
web3 applications and services, it is possible to grow into a global web3 company.
But that is only my personal view. In fact, to become a global web3 enterprise, other factors and circumstances must also be considered.

39

Core 5G/Core web3

Pre 5G/Pre web3

5G Homestyle

5G Lifestyle

5G Healthstyle

Unique management (Showroom)

5G system
ServiceWeb3(DAO)
Related service...

Industrial Blockchain...

Platform Maker (5G) / TONE Chain

40

5G Carlifestyle41

Forecast of MaaS (from "White Paper on Land, Infrastructure, Transport and Tourism 2020“by the Ministry of Land, Infrastructure, Transport and Tourism)

In 2030, the domestic market for MaaS
will expand to approximately ¥6.4 trillion
Chart I-2-1-14

Maas Forecasts (Domestic)

By 2050,the glonbal market for MaaS will
expand to approximately ¥900 trillion
Chart 1-2-1-15（Millions of yen）

Maas Forecasts(Global)MaaS ¥900trillion
Developed
countries
China

Developing
countries

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2030

(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)(Forecast)

Yano Research Institute Ltd.
(NOTE) 1 Maas Service Vehicle Operator Revenue
2 Except for vehicle hardware and yellow for maintenance
3 Maas of this survey refers to services in which mobile devices such as smartphones
and IC cards can be used to make reservations and payments using on-line apps or
platforms (websites), and two or more users can use (share) a single mobile device(e.g., a vehicle), or multiple moplities can be used consecutively regardless ofdifferent operators. The target field is the U.S. SAE(Society of Automotive
Engineers) and the main 10 fields are selected.
Estimated figures for 2018, projected figures for 2019 and beyond
Source: Yano Research Institute Ltd.

MaaS

Fuel sales

Highway transmission(conventional type)
Automobile manufacturing(completed vehicles)

Power sales

Emerging
country(NOTE) Annual sales are estimated for each relevant industry assuming that MaaS is 50% in developed
countries in 2050, 75% in China and emerging countries, and 100% in developing countries, etc.
MaaS here refers to road-based transportation services (passengers and negatives) by sharing
electric vehicles that run automatically, as well as the accompanying information-providing services.
Data) Mitsubishi Research Institute, Inc.

https://www.mlit.go.jp/hakusyo/mlit/r01/hakusho/r02/pdf/np102100.pdf

42

×
2013

2018

July 2013
Adopted ServersMan SiLK OS
as a developer for Alpine's telematics services

September 2018
Announced Omokae Assist in alliance with
Alpine Marketing andbegan offering TONE's ALPINE Model

2019

2020

July 2019
Announced CASE with Alps Alpine anda comprehensive business alliance in
MaaS area

December 2020
Strengthened web3 collaboration with
Alps Alpine Adopted "The Key" core
API for company-owned vehicle
management/digital key system43A press release on our capital and business alliance with Alps Alpine (March 31, 2023)

https://www.alpsalpine.com/e/news_release/2023/0331_01.html

https://www.alpsalpine.com/e/news_release/2023/0331_02.html

44New car market

Used car market ① Used car market②・・・

On-premises/cloud (borne by car manufacturers)

On-premises/
Cloud

digital key
costs

Block Chain (Personally borne %transaction)

Block Chain (Personally borne %transaction)

Sales

Car manufacturers

FreeBit Co., Ltd. All Rights Reserverd.

Used car dealers ①

Used car dealers ②

From the materials of the July 2019 joint presentation meeting

45

46

Planning to conduct demonstration tests of smart security
using Blockchain at LIVING TOWN Minato Mirai

47

(free of charge)

An on-line health service
in pre metaverse era that allows doctors to consult at anytime

New point-system where TONE Coincan be stored by simply moving the programme while it isbeing charged

Freepass
Providing a world view of anti-filter bubbles
that can connect to the Internet with peace of mind
48

5G Healthstyle49

Framework for addressing health issues

Prevention

Diagnosis
andtreatment

Follow-up

From the July 2018 Annual Meeting of Shareholders materials

50

Health consultation
before medical treatment or treatment

Use to prevent
Prevention (Sensing)

LifeLog

AI triggered health-careconsultation

Sensor data such as
number of steps and intensity

ONE family

App usage time andother actual data on
smartphone usage

TONE AIThe usage time of the app
is lengthening. Would you
like to receive free healthconsultations to prevent
overuse of the net?

Health consultation

Self-management
after follow-up
Observation (sensing)
LifeLog

Sensor data such as
number of steps andintensity

Onlinehealthconsultation

ONE family※Demonstration tests on theassumption of the provisionof future medical practices.

App usage time andother actual data on
smartphone usage
Considering futurecollaboration

Drug counter

Largest domestic
pharmacy/drugstore
search and drug
receiving service
From the May 2022 presentation materials

51

TONE Care OPEN
B2C

TON-centeredpersonalized services
Domestic healthcare market size
37 trillion yen (2030)

Demonstration tests ofhealth/medical services
based on TONE

B2B

Platform provision to
medical institutions, etc.
52Planning to use many Building Blocks of freebit GroupAnshin Engine (Anshin AI/ Filtration)

Radius（ authentification ）FreeBit Co., Ltd. All Rights Reserved.

Internet marketing/DX)

SIP（IoT authentification, Voice message）

TONE Biz
IoT hardware planning and development

Bandwidth and traffic Control

Customer Support Services /BPO

SDN(Network virtualization)

Customer management and billing Services

Server / DC Virtualization

Cloud Services

Block Chain（digital Key、Infra、mobile）

Broadband Ntework Services

Protocol Layer Extension(web3

AI/Data

TONE/DTI（B2C）showroom

Stand
Alone

53

FreeBit Group's Medium-to Long-Term Growth ImageSiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle
5G Infrastructure Support
Business
5G Homestyle(Internet services targeting
housing complex)

Internet marketing
Affiliate
Maker's Maker

Infrastructure Tech business(fb, DTI)
5G Infra Platform (MVNE,
Ad-Tech business (FS)FreeBit
Co.,
Ltd.
All
RightsReserved.
fixed network, cloud, etc.)
Real Estate Tech Business (GP)

Performance zone

Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
54

FY2024/4 full-year forecast
SiLK VISION 2024

(Millions of yen)

FY2022/04

FY2023/04

ActualActualFY2024/04

Earnings
Forecasts

YoY change

Net sales

43,075

46,77150,000+6.9%

Operating income

3,165

4,007

5,000

+24.8%

Ordinary income

2,878

3,707

4,500

+21.4%

Profit attributable toowners of parent

827

1,792

2,500

+39.5%(Including irregular 13-month settlement due to change in fiscal year-end of GIGAPRIZE CORPORATION)◼ In the fiscal year ending April 2024, the final year of SiLK VISION 2024, the Company expects toachieve its target while expanding DX and new business fields through effective strategic investingthat effectively utilizes the Group's management resources. The goal is to achieve consolidated net
sales of ¥50 billion and consolidated operating income of ¥5 billion.
◼ Implement measures to further grow the performance zone and monetize the transformation zone
and incubation zone with an eye to the next medium-term business plan "SiLK VISION 2027"◼ Positioning the fiscal year ending April 2024 as the second Transformation Term to respond to rapid
technological and other changes, we will reexamine our organizational strategy, human resources
strategy, and business strategy, and take action to deepen our future.
FreeBit Co., Ltd. All Rights Reserved.

55

Remotepractice

Increasedcapacity

Revisionofthe lawNew
entry

Evolving
TaiwanOSemergency

Anshin AI

ISP/MVNO

5G

Year 2025
issuesPlatform

SearchInfluencer
advertisingMarketmarket's dramaticoligopolization
contraction
HealthTech

AdvertisingeSIM

Impactof LLM
Infra
and Social Change
CloudElectronicElicitation of Five Problems
Prescription of Population and IoTLabor Force/Medical Care
/Nursing Care/Social Security
Expenses/Vacant Houses

Network(Mobile/Fixed)

Block chain

Eliminationof cookies

AI

Year 2030
Data
issues oligopolization
Hardware
Disabling RSA
Encryption

It is highly likely that all business areas will beaffected by disruptive technologies, etc.
56

Business Trends

Acquisition/Market
Development/Basic
Development

November 13, 2013 freebit mobile announced■Net sales■Operating

Transformation Term

December 2, 2013 Record highincomeInnovation
SiLK VISION 2024

50,000SiLK VISION 2020

(Forecast)Innovation
Acquisition/Market
Development/Basic
Development■Stock price(high)
Innovation

43,075SiLK VISION 2016
2828 yen

5,000(Forecast)

SiLK VISION 2013

2155 yen

SiLK VISION
2010

1648 yen

3,165(As of today)

2168 yen
1, 558 yen

1522 yen

1, 400 yen

1783 yen
1743 yen
1362 yen

675 yen1365 yen

1170 yen

1238 yen

1122 yen1133 yen

5G/web3

793 yen572 yen

Closing price on
the day of listing
362 yen

Implementation of
third-party allotment toAlps Alpine, Inc.

Made Full Speed Co., Ltd.
a wholly owned subsidiary

Change in Tokyo Stock

Exchange Prime Market

Off-balance EPARK Healthca
Alk, and Formembers

DTI CORPORATION
took over all operations oTone Mobile Co., Ltd.

Alk Corporation
Acquisition ofsubsidiaries
through M&A

Four Members, Inc.
GP became a subsidiary.

Listed on the First Section
the Tokyo Stock Exchange

EPARK Healthcare Co., Ltd.
Acquisition of subsidiaries
through M&A

Tone Mobile Corp.

(CCC JV)

Freebit mobile started※YourNet MVNOpack

Full Speed Co., Ltd.
Acquisition of subsidiaries
through M&A

GIGAPRIZE Co., Ltd.
Acquisition ofsubsidiaries through M&A

DTI Acquisition ofsubsidiaries through
M&A

Listed on the Tokyo Stock

Exchange Mothers market

FY2007/04 FY2008/04 FY2009/04 FY2010/04 FY2011/04 FY2012/04 FY2013/04 FY2014/04 FY2015/04 FY2016/04 FY2017/04 FY2018/04 FY2019/04 FY2020/04 FY2021/04 FY2022/04 FY2023/04 FY2024/04(Forecast)

57

Introduction of our Policy for Large-Scale Purchases of Shares

Background to the Introduction of the Response Policy•

By resolution of the Board of Directors meeting held on May 18, 2023, we resolved to introduce
a policy for dealing with large-scale purchases of our stocks, etc., and this policy has become effective
as of the same date.

•

Based on our corporate philosophy of "Spreading Being The NET Frontier! ～Internet and Contributing
to Society“, we want to be a company that not only pursues its own interests but also contributes tosociety by spreading the Internet. We believe that investment for the foundation of the future isessential for enhancing corporate value and achieving sustainable growth over the medium to long term.

•

To this end, we recognize the importance of obtaining support from a large number of shareholders
for the Group's management philosophy and for providing support over the medium to long term.

•

I would like to ask our shareholders for their understanding of and support for this policy.

5
8

58

2. Full-year results for the year ended April 30, 2023

FreeBit Co., Ltd. All Rights Reserved.

59

Summary of Consolidated Financial Results for the Fiscal Year Ended April 2023
Increase/Decrease

FY04/23 full year
(Millions of yen)

FY04/22 fullyear

ActualEarnings
Forecasts(Upward
Revision)

Percentage
increase/decrease

YoY change

Results vs.
Forecast(Upward
Revision)YoY change

Earnings
Forecasts(Upward
Revision)

Net sales

Actual

43,075

46,77146,000+3,695

+771

+8.6%

+1.7%

EBITDA

Actual

3,290

4,065

ー

+775

ー

+23.6%ーActual

3,165

4,007

3,500

+842

+507

+26.6%+14.5%

Base
profit(4,835)(5,291)ー(＋455)ー (+9.4%)ーActual

2,878

3,707

3,250

+828

Base
profit(4,549)(4,991)

ー

827

1,792

1,650

OperatingincomeOrdinary
incomeProfitattributable to
Actualowners of parent
Net income per
share
Actualowners of parent

41.86 yen 41.86 yen+28.8%+14.1%(+441)ー (+9.7%)

ー+964+142 +116.5%+8.6%

ー 53.21 yen

+457

ー

ー

*Base profits are the business profit figure excluding one-time investments. They are unaudited reference figures.

ー60

2. Full-year results for the year ended April 30, 2023•

Net sales and profits at each stage all exceeded the upwardly revised earnings forecasts(announced on March 10), and each stage profit achieved record highs•

Net sales increased 8.6% year on year (*1) due to solid performance in 5G LifestyleSupport Business,5G Homestyle(GPG) and the Corporate andCreator 5G DX Support Business•

Operating income continued to grow in all three segments, namely 5G Infrastructure Support
Business,5G Lifestyle Support Business, and the Corporate and Creator 5G DX Support Business.
Operating income also increased 26.6% year on year due to the implementation ofefficient strategic investing, and increased 9.4% year on year (*2) compared tothe previous fiscal year.

5G lifestyle
Corporate andcreator 5G DX

5G infrastructures
5G lifestyle
Corporate andcreator 5G DX•

Ordinary income increased 28.8% year on year and 9.7% year on year, mainly due tofavorable base income and operating income growth resulting from the implementation ofefficient strategic investments.

•

Profit attributable to owners of parent increased 116.5% year on year due togrowth in profit at each stage and a decrease in tax expenses.

•

Entered into a capital-and-business alliance with Alps Alpine to strengthen partnerships in
5G/web3/AI technology. ※1. The impact of the application of the revenue recognition standard/off-balancing business has disappeared, and from the current

FreeBit Co., Ltd. All Rights Reserved.

fiscal year,
the Company has not utilized the corrected figures and compared the results with the same period of the previous fiscal year.
※2. Base comparison is the year-on-year comparison of base profits (unaudited business profits excluding temporary investments).

61

YoY Variance Analysis Net Sales
Sales increased 8.6% year on year due to solid performance in all
segments including 5G Lifestyle Support Business.

43,075

FY2022/04
Full Year Actual
FreeBit Co., Ltd. All Rights Reserved.

Infrastructure
SupportBusiness
Transaction
Increase

5G LifestyleSupportBusiness
Transaction
Increase

Corporate and Creator
5G DX Support
Business
Transaction Increase

Intersegment
transaction
increase(Millions of yen)

46,771

FY2023/04
Full Year Actual
62

YoY Variance Analysis Operating Income
While implementing strategic investments, all segments remained solid, mainly in 5G
Infrastructure Support Business. As a result, actual results increased by 26.6% year
on year and base income increased by 9.4%.

4,835

5G Infrastructure
Support Business 5G Lifestyle
Profit Increase Support BusinessProfit Decrease

△40

△652

Strategic
investment

△769

3,165

5,291

Coprorate andCreator 5G DX
Support BusinessProfit Decrease△138

Strategic
investment△300(Millions of yen)

Other

4,007

Strategic
investment△213

FY2022/04
Full Year
ActualFY2022/04
Full year (Baseprofit)FreeBit Co., Ltd. All Rights Reserved.

FY2023/04
Full Year
ActualFY2023/04
Full year (Baseprofit)*Base profit values are unaudited reference figures.

63

YoY Difference Analysis Operating Income (Base Income)Base profit up 9.4% on solid performance in all segments, especially
5G infrastructure support business
5G Infrastructure
Support Business
Base Profit
Increase

+260

4,835

FY2022/04
Full year (Base profit)
FreeBit Co., Ltd. All Rights Reserved.

5G Lifestyle Support
Business
Base Profit Increase

Other

+116

(Millions of yen)

5,291

+74
Companies andCreators 5GDX Support
Business Base Profit
Increase

FY2023/04
Full year (Base profit)*Base profit values are unaudited64

Breakdown of strategic investment for FY 2022 and FY 2023
Execute the strategic investment mainly in advertising and promotion of 5G lifestyle support
business and new businesses.The amount of the investment was lower than initial forecast
due to efficient investment
5G Infrastructure Support
Business(Millions of yen)

5G Lifestyle Support Business

FY2023/4
Total 1.28 billion yen

Enterprise/Creator 5G DX Support Business

FY 2022/04
Total 1.67 billion yen

FY2023/04
Strategic Investment Results(Cumulative)
5G Infrastructure Support Business(300 million yen)・Development of 5G data-center
・Data collaboration projects, etc.

1,162
119

562
892

284

105
83
20
FY2022/04
1Q

118

9
188

9
82
26

FY2022/04
2Q

FreeBit Co., Ltd. All Rights Reserved.

86
FY2022/04
3Q

150
FY2022/04
4Q

118

241

235

245

30

39

24

150

122

143

60

72

77

FY2023/04
1Q

FY2023/04
2Q

FY2023/04
3Q

353

90
FY2023/04
4Q

5G Lifestyle Support Business(769 million yen)・Promotion-related to TONE
(In addition to strengthening sales
promotions at docomo Shops,
efficiently deploy promotions suchas incurring expenses to matchuser acquisitions)・Develop and test 5G Healthstyle area
"TONE Care"・Web3(Blockchain) Development andtesting of relationships
・Develop services in 5G Workstyle areas,etc.
Support for corporate and creator 5G DX(213 million yen)・Develop and expand human resources
for multi-faceted development ofStandAlone, a Creator Maker area
65

YoY Difference Analysis Ordinary Income
Due to strong base profit and efficient execution of strategic investments,
actual results increased by 28.8% year on year and base income
increased by 9.7%.
(Millions of yen)Previous
Fiscal Year
Strategic
investment

Previous Fiscal Year
Strategic
Investment
Operating Income
Variance+1,670 4,549 △1,670

FS became asubsidiary
Prior period
difference inAlps Alpine
relatedIncrease in
Third-party
incurredOperating
Allotment
expenses
IncomeRelated expenses Other

+842

+84

△36

△62

Strategic
investment+1,284 4,991

3,707

2,878

FY2022/04
Full Year
ActualFY2022/04
Full year (Baseprofit)FreeBit Co., Ltd. All Rights Reserved.

FY2023/04
Full Year
ActualFY2023/04
Full year (Baseprofit)*Base profit values are unaudited66

YoY Variance Analysis Net income attributable to owners of the parent

Increased by 116.5% Y/Y due to increase in ordinary income anddecrease in tax expenses, etc.
Decrease in tax
expenseIncrease inordinary
incomeDecrease in netncome
attributable tononcontrolling interests(Millions of yen)

1,792

Decrease inimpairment loss
Other

Increase in loss on
valuation ofnvestment
securities

827

FY2022/04
Full Year Actual
FreeBit Co., Ltd. All Rights Reserved.

FY2023/04
Full Year Actual67Consolidated Results Summary BS
Cash and deposits and net assets changed due to the conversion of FS into a wholl-owned
subsidiary and the third-party allocation of treasury shares.Have an equity ratio of 22.9%(Millions of yen)

Current
AssetsCurrent
Assets29,819Liabilities

Current
AssetsLiabilities

24,01030,64024,894Cash

Cash
Equivalent

Equivalent

17,741

18,305Net Assets

11,039Fixed Assets
5,230

Non-dominant
Strain Hosts 4,106
Points

FY2022/04
FreeBit Co., Ltd. All Rights Reserved.

Selfcapitalization
ratio

Net Assets

19.6%

11,032
Fixed Assets
5,286

Selfcapitalization
ratio

22.9%

Non-dominant
2,713
Strain Hosts Points

FY2023/04

68Implementation of third-party allocation to Alps Alpine
Entered into a capital-and-business alliance to strengthen partnerships in 5G/web3/AI technology.
Allotment of 1,140,000 shares of treasury stock

Allocation Overview

Class and number of shares

Quota value¥1290 per share

Total amount paid

1,470,600,000 yen

Allottee

Allotment date

FreeBit Co., Ltd. All Rights Reserved.

1,140,000 shares of common stock (equivalent to 4.87% of issued shares)

Alps Alpine Electronics, Inc.

April 18, 2023

69

Impact on BS of disposal of treasury shares by making FS a wholly owned subsidiary/third-party al(Millions of yen)

End of
FY2022/04

End of
FY2023/04

29,81930,640+820

17,741

18,305△564

Current assets
Cash and deposits

Current
assetsCurrent assets

Liabilities

Fixed assets

5,230

5,286

Total assets

35,05035,926

Liabilities

24,01024,894

Net assets

11,03911,032

3,050

1,645

Capital surplus

Net assets

Treasury stock

11,039△4,343
Capitalsurplus3,050

Noncontrollingshareholde
rs' equity

4,106

Non-controlling
Fixed assetsinterests

4,106

Total liabilities and net
assets35,050FreeBit Co., Ltd. All Rights Reserved.

△3,251

2,713
35,926

ChangeBreakdown of impact①Made FS a wholly owned subsidiary
・Cash and deposits△3,782 Expenses for share acquisition+1,600 Borrowings to acquire shares②Current
Disposal oftreasury stock
through allocation to third
assetsLiabilities+55 parties
・Cash and deposits+1,470 Increase due to third-party allotment+876①Made FS a wholly owned subsidiary・Capital surplus△1,687 Decrease due to conversion to wholly owned△6 subsidiary
・Non-controlling shareholders' equity△1,930 Decrease due to conversion to wholly owned△1,651
subsidiary+883

Net assets
through allocation to+1,092 ②Disposal of treasury stock
third parties
9,273
・Capital surplus△1,392
Fixed+397assets
Increase due tothird-party
Capital1,457 allotment
surplus
Non・Treasury stock
2,544
controlling+1,073 Decrease dueto third-party allocation+876
shareholde
rs' equity

70

Year-end dividends for the year ended April 31, 2023
Decided to pay a dividend of 8.0 yen in comprehensive consideration of capital
expansion through the disposal of treasury stock through a third-party allotment,
achievement of record-high net income, and future business development
Disclosed June 9, 2023

Details of dividends
FY2023/04(Determined Amount)

FY2022/04(Actual)FY2021/04(Actual)April 30, 2023

April 30, 2022

April 30, 2021

8.00 yen

7.50 yen

7.00 yen

Total dividend
amount

159 million yen

141 million yen

146 million yen

Effective dateJuly 13, 2023

July 14, 2022

July 15, 2021

Dividend Resources

Retained earnings

Retained earnings

Retained earnings

Record Date
Dividend per share

FreeBit Co., Ltd. All Rights Reserved.

71

Net Sales and Operating Income per Employee
Net sales and operating income (base profit) per employee increased from theprevious fiscal year
(Thousands of yen)

SiLK VISION2013

SiLK VISION2016

SiLK VISION2020

SiLK VISION
2024

FY2021/04

60,00010,000Net Sales per capita
Operating income per capita

40,0005,000

20,0000

0FY2011/04

FY2012/04

FY2013/04

FY2014/04

FY2015/04

FY2016/04

FY2017/04

FY2018/04

FY2019/04

FY2020/04

FY2021/04

FY2022/04(Adjustedvalue)(Base profit)

FY2023/04

FY2024/04(Base profit) Earnings forecast※Adjusted and base profits are unaudited reference figures

FreeBit Co., Ltd. All Rights Reserved.

※Estimated using the number of employees in the 23rd fiscal period72
for3. Full-year results by segment for the year ended April 31, 2023

FreeBit Co., Ltd. All Rights Reserved.

73

Composition by segment
Revenues increased in all three business segments: 5G Infrastructure Support
Business, 5G Lifestyle Support Business, and Corporate and Creator 5G DX Support
Business
5G Infrastructure Support BusinessCorporate and Creator
5G DX Support Business19.1%

Net sales

Segment profit or loss
5G Infrastructure Support Program

34.0%

Actual 9,489 million yen

Actual: 1,378 million yen

YoY +5.1%

Base % YoY +18.4

5G lifestyle support businessNet sales
46,771
million yen

Results 23,261 million yen

Actual: 2,039 million yen

YoY +7.0%

Base % YoY +4.3

Support for corporate and creator 5G DX

Actual 16,849 million yen

Actual: 604 million yen

YoY +9.5%

Base % YoY +10.1※The base ratio is calculated using unaudited reference figures.

5G lifestyle support business
46.9%

FreeBit Co., Ltd. All Rights Reserved.

74

[Performance Progress] 5G Infrastructure-Support Business (Mobile-Revolution Area)
SiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle

Performance zone
5G Infra Platform(MVNE, fixed network, cloud, etc.)

Infrastructure Tech business(fb, DTI)
Ad-Tech business (FS)
Real
Tech
Business (GP)FreeBit Co.,
Ltd.Estate
All Rights
Reserved.

5G Homestyle(Internet services targeting housing complex)

Internet marketing
Affiliate
Maker's Maker

5G Infrastructure Support
Business
Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
75

5G Infrastructure-Support Busines
Operating income increased 18.4% year on year due to increased use of B2B mobilerelated services and improved costs for B2B fixed network, etc.
Segment Profit/Loss YoY Variance Analysis

Net Sales and Segment Income (Loss)
+284
+276
+26
△175

(Millions of yen)

Net Sales (Results)

4,000
Segment Income (Expenses) (Results)
Segment Income (Loss) (Base Profit) ※

1,000

△167

(Millions of yen)
Strategic investment in the previous fiscal year
B2B Mobile: Profits increased due to increased use of services
B2B fixed network: Profits increased due to cost-cutting measures
Cloud: Impact of 5G data-center development (strategic investments)
Decrease in profit due to decrease in use of services
Others: Decrease in profit due to increase in personnel expenses, etc.

3,000

2,223

2,247

2,228

2,332

2,328

2,404

2,376

2,380

500

427
217

2,000
295

393

413

340

Strategic
investmentin theprevious
fiscal year
Breakdown

・Development of 5G data-center
・Data collaboration projects, etc.
Strategic
investment+300 1,679

249
176

0
1,000

△ 500

0
1Q

2Q

3Q

FreeBit Co., Ltd. All Rights Reserved.

4Q

1Q

2Q

3Q

4Q

FY04/22Full-year results

FY4/22(Base profit)

FY04/23
Full-year results

FY4/23(Base profit)※Base profits are unaudited reference figures.

76

5G Infrastructure Support Business: Mobile Services Business Structure
Trend (unit price and number of bandwidth costs)

Trends (sales and gross profit)

Trends in unit price of bandwidth

Continuous decline of about
17% per year

80,000

Sales are trending downward
along with the decline
in bandwidth costs.

8,000,000 Cost of bandwidth

decreased

60,0007,000,000

Earnings Structure(Estimate)

40,0006,000,000

20,0000FY2015FY2016FY2017FY2018FY2019Fiscal 2020

FY2021

FY2022

FY2023Net

5,000,000

Service gross profit
4,000,000

Changes in the number of bands

3,000,000

Operation costs,
equipment costs, etc.

2,000,000
1,000,000
FY04/15

FY04/16

FY04/17

FY04/18

FY04/19

FY04/20

FY04/21

FY04/22

FY04/23

0

Bandwidth cost
(Published price)

FY04/15

FY04/16

FY04/17

Net sales

FY04/18

FY04/19

Cost

FY04/20

FY04/21

FY04/22

FY04/23

Service gross profit

FY2023/04

Net• Increase in transaction volume due to an increasein bandwidth provided as a result of successfulacquisition of new entrants, etc.

FY04/15

FreeBit Co., Ltd. All Rights Reserved.

FY04/16

FY04/17

FY04/18

FY04/19

FY04/20

FY04/21

FY04/22

FY04/23• Contributing to higher gross profit from services byacquiring data and voice SIM in order todifferentiate itself from competitors through lowpriced call package services• Adding higher-layer services such as 5G and eSIM

77

[Performance Progress] 5G Lifestyle Support Business(Lifestyle Revolution Area)
SiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle

Performance zone
5G Infra Platform(MVNE, fixed network, cloud, etc.)

Infrastructure Tech business(fb, DTI)
Ad-Tech business (FS)
Real
Tech
Business (GP)FreeBit Co.,
Ltd.Estate
All Rights
Reserved.

5G Homestyle(Internet services targeting housing complex)

Internet marketing
Affiliate
Maker's Maker

5G Infrastructure Support
Business
Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
78

Progress of 5G lifestyle support business
Operating income increased 4.3% year on year due to steady 5G Homestyle performance, despitemeasures to strengthen 5G Lifestyle service pecifications, strengthen sales capabilities, andinvest in new product lines
Segment Profit/Loss YoY Variance Analysis

Net Sales and Segment Income (Loss)(Millions of yen)

2,000
7,500
※
6,497

1,500
5,256 5,426

5,706
5,345

5,477

5,679

5,606

5,000

(Millions of yen)
+1,246 Strategic investment in the previous fiscal year
+701 Increase in income due to sales increase in 5G Homestyle[GPG]△198 Decrease in income due to 5G Lifestyle[DTI associated with abolishment of ADSL]△540 5G Lifestyle[TONE] Decrease in gross profit due to a shift in users bystrengthening service specifications, etc., and expenses including measures tostrengthen joint sales capabilities with docomo Shops and incentives per
acquisition△415 Strategic investment in new product groups, etc.
△201 Other
Breakdown

・Promotion-related to TONE
・Develop and test 5G Healthstyle area "TONE Care”
・Web3(Blockchain) Development and testing of relationships
・Develop services in 5G Workstyle areas, etc.

1,000

Previous
periodStrategic
investment

555

500
566

621

602

2,500

+1,246

504

452

+701

Strategic
investment

+769

2,69
2

377

0

1,445

△20
1

2,80
9

2,03
9

△ 194

△ 500

0
1Q

2Q

3Q

FreeBit Co., Ltd. All Rights Reserved.

4Q

1Q

2Q

3Q

4Q

FY04/22Full-year results

FY4/22(Base profit)

FY04/23
Full-year results

FY4/23(Base profit)※Base profits are unaudited reference figures. 79

Progress of 5G lifestyle support business
The number of units provided for ISP services for apartment buildings, a key
indicator of 5G Homestyle(GPG), increased by 151,000 units compared to the endof the previous fiscal year, surpassing the full-year forecast of 105,0000 units(Unit: thousand
units)

105.1

Full-year results
Number of units

900

offered745

increased:
564

151,000 units

425

FY2019/03

FY2020/03

FY2021/03

FY2022/03

FY2023/03
80

Progress of 5G lifestyle support business"LIVING TOWN Minato Mirai" pre-opened on April 29
Started providing technology through a capital and business alliance with Alps Alpine●Pre-opening of LIVING TOWN Minato Mirai
Ai-Messe Minato Mirai, operated by i-builders, pre-opened on
April 29 in
LIFE CREATION section of the housing exhibition area.
Providing IOPT, an IoT service offered by Optage, Inc. within
the model house, and Secual's home security service,providing a place for customers to actually experience andexperience smart homes● Commenced joint field trials with Alps Alpine
through a capital and business alliance
Started technical collaboration in 5G Homestyle field
through a capital-and-business alliance between FreeBit
and Alps Alpine (March 31)
Started technical collaboration at "LIVING TOWN Minato
Mirai".
Strengthen initiatives for lifestyles such as IoT andhousing spaces in 5G area.

81

Progress of 5G lifestyle support business
Launched new services, including high-location maintenance services utilizing drones
and the provision of a face recognition platform for all face recognition condominiums●Provision of high-rise maintenance services
utilizing drones●Provision of face recognition platform “FreeiD” forall face recognition condominiums

Developed by three companies: D.U-NET and Flight PILOT.
Safe and efficient use of drones to inspect and work atheights of apartment houses and detached houses

Started a business alliance with GIGAPRIZE to mutually sell ISP
services for apartment buildings and FreeiD, a face-recognition
platform developed and provided by DXYZ.
We propose FreeiD to meet customer needs. We provide onestop services from installation to maintenance and support.

82

[Performance Progress] Corporate and Creator 5G DX Support Business(Production Revolution Area)
SiLK VISION 2020

SiLK VISION 2024

SiLK VISION 2027

SiLK VISION 2030

Corporate and Creator 5G DX
Support Business

Creator Maker (StandAlone)
Bizmodel Maker (4.0)

5G Lifestyle Support Business
5G Workstyle / 5G Healthstyle

5G Lifestyle Support Business
5G Lifestyle（TONE/DTI）
5G Homestyle

Performance zone
5G Infra Platform(MVNE, fixed network, cloud, etc.)

Infrastructure Tech business(fb, DTI)
Ad-Tech business (FS)
Real
Tech
Business (GP)FreeBit Co.,
Ltd.Estate
All Rights
Reserved.

5G Homestyle(Internet services targeting housing complex)

Internet marketing
Affiliate
Maker's Maker

5G Infrastructure Support
Business
Most existing businesses haveshifted to the Performance zone.
Those businesses growcontinuously incorporating
the changing times such as 5G
and eSIM.
83

Corporate and Creator 5G DX Support Business Progress
Profit increased by 10.1% year-on-year (compared to the base), recovering from thestagnant demand for advertising following the Corona crash.
Segment Profit/Loss YoY Variance Analysis

Net Sales and Segment Income (Loss)(Millions of yen)
Net Sales (Results)

400
Segment Income (Expenses) (Results)※

Segment Income (Loss) (Base Profit)

+139
+186
△118
△40
△167

(Millions of yen)
Strategic investment in the previous fiscal year
Increase in gross profit due to increase in FSG sales
Increase in FSG recruitment and personnel expenses
Increase in advertising expenses related to FSG's EC business
Others (Developing for Multifaceted StandAlone Expansion, etc.)

5,000
4,339
3,904

3,926
3,786

4,039

4,434

Breakdown: Develop for multifaceted developmentof StandAlone platforms, etc.

4,036

3,770

226

200

Previous
Fiscal Year
Strategic
investment

+139
2,500

184

174
155

0

1Q

Strategic
investme
nt

2Q

159

3Q

FreeBit Co., Ltd. All Rights Reserved.

89

96

4Q

1Q

2Q

122

3Q

4Q

0

FY2022/04
Full Year Actual

FY4/22(Base profit)

FY2023/04
Full Year Actual

FY4/23(Base profit)※Base profits are unaudited reference figures.

84Corporate and Creator 5G DX Support Business - Business Pogress
Launch of subscription services and holds creator bers' day events at
StandAlone, a creator support platform●Starting Play.Goose Subscription Service
Launched a subscription service at a monthly fee of ¥300
(including tax).
Provides services that allow artists and fans to create works in both
directions, such as the ability to download/watch the latest songs inadvance, the experience of creating music and events together with
Play.Goose, and the monthly membership vote on the songs coveredby the songs.

●Birthday event for the actor, Eiji Akaso
On Tuesday, February 28, the FreeBit Office delivered an online
birthday event for the actor Eiji Akaso.
Approximately 6500 people participate in the event in real time,leading to an increase in the number of members.
In September, we plan to hold a total of four fan meetings in Tokyo
Osaka at Full Speed Planning...
Store Assessment
Google"4.7"Apple"4.0

Trends in new members
and SNS

Image of services provided

Preliminary
distribution ofundisbursed
album music
within the app

Singing withtour songs,
performancesand monthly
live streams.

Tour and
live
distribution

Covered songs
to be decided
as members
85

4. FY2024/4 full-year forecast

FreeBit Co., Ltd. All Rights Reserved.

86Medium-term management plan "SiLK VISION 2024"

Excerpt from "Financial Results
for the First Quarter of the Fiscal YearEnding April 2023"

FreeBit Group Earnings Targets for the Fiscal Year Ending April 2024

Aiming for 50 billion yen in sales and 5 billion yen in operating profit
Net sales

Operatingincome50,00046,000(Millions of yen)

43,075

Base profit
4,835

FY2022

FY2023SiLK VISION 2024
FreeBit Co., Ltd. All Rights Reserved.

FY2024

S
t
r
a
t
e
g
i
c
I
n
v
e
s
t

Base profit
4,800

5,000
Accou

3,165

Accou
nting
Value
2,900

FY2022

FY2023

FY2024SiLK VISION 2024
87

FY2024/4 full-year forecast
SiLK VISION 2024

(Millions of yen)

FY2022/04

FY2023/04

ActualActualFY2024/04

Earnings
Forecasts

YoY change

Net sales

43,075

46,77150,000+6.9%

Operating income

3,165

4,007

5,000

+24.8%

Ordinary income

2,878

3,707

4,500

+21.4%

Profit attributable toowners of parent

827

1,792

2,500

+39.5%(Including irregular 13-month settlement due to change in fiscal year-end of GIGAPRIZE CORPORATION)◼ In the fiscal year ending April 2024, the final year of SiLK VISION 2024, the Company expects toachieve its target while expanding DX and new business fields through effective strategic investingthat effectively utilizes the Group's management resources. The goal is to achieve consolidated net
sales of ¥50 billion and consolidated operating income of ¥5 billion.
◼ Implement measures to further grow the performance zone and monetize the transformation zone
and incubation zone with an eye to the next medium-term business plan "SiLK VISION 2027"◼ Positioning the fiscal year ending April 2024 as the second Transformation Term to respond to rapid
technological and other changes, we will reexamine our organizational strategy, human resources
strategy, and business strategy, and take action to deepen our future.
FreeBit Co., Ltd. All Rights Reserved.

88

Disclaimer
Forward-looking statements in this document, including our forecasts, forecasts, targets,plans and strategies, are based on information that we believe to be reasonable at the time of
preparation of this document. Actual results may differ materially from these forecasts andtargets due to various factors. These materials are explanatory materials for our businessstrategy and are not prepared for the purpose of soliciting investment.

<IR and Inquiries Regarding This
Material>
FreeBit Co., Ltd.
In charge of IR, Corporate
Planning Division
Email freebit-ir@freebit.net
WEB https://freebit.com/

FreeBit Co., Ltd. All Rights Reserved.

89

5. Appendix

FreeBit Co., Ltd. All Rights Reserved.

90

Explanation of the Three Revolution Areas and Each Business
Mobile revolution area
In order to solve various social
problems, such as environmental
problems, an aging society, and low
growth, and to realize a sustainable
society, the area provides theinfrastructure that is the foundation
for the improvement of the efficiencyof people's lives and the production
revolution of intelligence.

5G Infrastructure Support
Business

Market potential

A business that provides a platform that supports not
only the creation of "human" but also the creation of"consumer" markets that lead to Connected andreliable use of "goods" at an affordable price through5G and eSIM(SIM software/AI/Blockchain.

5G related market for the domestic industry is 210.6
billion yen, IoT market is 10.2 trillion yen, and even
MaaS is 2.9 trillion yen. However, from a uniqueperspective of " DAO" (autonomous decentralizedorganization), which differs from the huge platform
formers, where various issues are emerging, weapproach these huge markets.

5G Lifestyle Support Business

Market potential

For the transition to a sustainable
society, people's ways of working,learning, and living will change. Thisis an area in which we solve thesocial problems that are necessary
for this purpose and create newsocieties and values.

Using platforms created by 5G support business,this business builds and provides businessplatforms that support the creation of various"cost" markets, such as "safe and secure
lifestyles," "healthy lifestyles," "work styles," and"housing," which are unique to 5G era.

With the new corona, people's desire has fallen to the"safety desire" of the 5-stage theory of Mazroe, butwith the spread of vaccines in the future, the higherorder desire (= cost consumption) has been revived.
Accelerating the penetration of IT into lifestyles in 5G
also contributes to the creation of higher-order

Production revolution
area

Support for corporate and creator
5G DX"Structuring of intelligence" tomobilize appropriate knowledge froma vast amount of knowledge forsolving social problems, and theresulting "production revolution of
intelligence" brings about innovation.

A business that supports manufacturing in 5G age byusing a proprietary DX method to build platforms thatenable not only corporations but also creators andinfluencers that will become the core of future
manufacturing, from "(Market Creation)→Value
Creation→Verification→Market
Introduction→Maintenance of Customer Relations."

Lifestyle revolution
area

FreeBit Co., Ltd. All Rights Reserved.

markets-goods→services→outcomes.

Market potential
In Marketing 4.0, creators and influencers do not
simply recommend goods and services, but rather
propose what they can become as a result of using
them. In other words, a market that satisfies Mazlo's"desire for self-realization" (= cost consumption) is
required.

(NOTE)Domestic 5G related markets (2027) and domestic IoT markets (2025) are based on IDC Japan surveys, and MaaS domestic
markets (2030) are based on Fuji Keizai.

91