Notice: This document was prepared by machine translation, and no manualmodification has been made to the translated contents. This document is to be
used only as a reference, and in cases any differences occur between English
version and the original Japanese version, the Japanese version shall prevail.
Financial Results for the first quarter in this document are unaudited.

FY2024/04

Financial Results for the Third Quarter

FreeBit Co., Ltd.
March 8, 2024

Agenda1. Financial Results for the Third Quarter of FY2024/04

･････

3

2. of FY2024/04

･････

14

3. “SiLK VISION 2024” Landing Forecast
4. Appendix

･････

33

･････

38

Financial Results by segment for the Third Quarter

FreeBit Co., Ltd. All Rights Reserved.

2

1. Financial Results for the Third Quarter of FY2024/04

FreeBit Co., Ltd. All Rights Reserved.

3

Impact of change in fiscal year-end of consolidated subsidiaries(GIGAPRIZE and its subsidiaries)◼ GIGAPRIZE Group (GPG) changed the date of its fiscal year-end from March 31 to April 30, the same as
our consolidated fiscal year-end.
As a result, the consolidated subsidiaries in the current fiscal year has an irregular settlement of accounts
for the 13-month period from April 1, 2023 to April 30, 2024. In the first quarter of the fiscal year underreview, the four-month period from April 1, 2023 to January 31, 2024 has been incorporated into theconsolidated settlement.
◼ In this presentation material, we describe the figures as the figure including the impact of the change inthe fiscal year-end and the figure excluding the impact of the change in the fiscal year-end.

First
quarter

Consolidated period(Previous Fiscal Year)FY2023/04

GPG(Current Fiscal Year)FY2024/04

GPG

FB

FB

(From the Next Fiscal Year) GPG

FY2025/04FreeBit Co., Ltd. All Rights Reserved.

FB

4

Secondquarter

Third
quarter

Fourthquarter(month)

4

5

6

7

8

9

10

11

12

1

2

3

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4
4

Summary of Consolidated Financial Results
for the Third Quarter of FY2024/04(Millions of yen)

FY2023/04
Q3

FY2024/04 Q3(Including the impact of the change
in the fiscal year-end)
Percentage
Increase/increase/
ActualDecreasedecrease(Reference) FY2024/04 Q3(Excluding the impact of the change
in the fiscal year-end)*2
ActualIncrease/
Decrease

Percentage
increase/decrease(Reference) ※1

Net sales

Actual34,21639,992+5,775(+16.9%)38,260+4,044+11.8%

OperatingincomeActual

3,167

4,670

+1,502(+47.4%)

4,272+1,104+34.9%

Base
income*3

3,889

5,368

+1,478(+38.0%)4,970+1,080+27.8%

Actual

2,964

4,592

+1,628(+54.9%)4,196+1,232+41.6%

Base
income

3,685

5,290

+1,604(+43.5%)

4,894+1,209+32.8%

Actual

1,656

2,868

+1,212(+73.2%)

2,711+1,054+63.7%

Actual88.09 yen

Ordinary
incomeQuarterly
incomeattributable toowners of theparentQuarterly net
income pershare owners of
the parent

FreeBit Co., Ltd. All Rights Reserved.

143.68 yen +55.59 yen-

135.79 yen +47.70 yen-

5Topics for the Third Quarter of the Fiscal Year Ending April 30, 2024•

Net sales increased 16.9% year on year due to scale expansion in FreeBit B2B2X(B/C) Mobile
Services in the 5G Infrastructure Support Business, progress in acquiring customers (including
overseas customers) in Affiliate Services which is Full Speed Group's main business in the
Corporate and Creator 5G DX Support Business, and steady growth in the number of units provided in
ISP Services for 5G Homestyle apartment complex, which is GIGAPRIZE's main business in the 5G
Lifestyle Support Business (excluding the impact of the change in the fiscal year (*1): increased 11.8%)•

Operating income increased 47.4% year on year and increased 38.0% year on year (*2) as comparedto the previous fiscal year due to favorable performance in all segments as a result of growth in 5G
Infrastructure Support Business, Corporate and Creator 5G DX Support Business in line with the increasein sales described above, and growth in 5G Lifestyle Support Business in part due to the impact ofimproved profits in the TONE Business (excluding the impact of the change in the fiscal year: 34.9% year
on year / increased 27.8% year on year).

•

Quarterly income attributable to owners of the parent increased 73.2% year on year due to growthin operating income and ordinary income and the impact of the gain on sales of investment securities(excluding the impact of the change in the fiscal year end: 63.7% increase)•

Sales and profits at each stage remained solid compared to the upwardly revised full-year forecast
announced on December 8, 2023. Q4 expected to remain in line with plan

FreeBit Co., Ltd. All Rights Reserved.

*1 Figures of “excluding the impact of the change in the fiscal year-end” areunaudited reference figures.
*2 Base comparison is the year-on-year comparison of base incomes.

6

YoY Variance Analysis Net Sales
Sales increased 16.9% year on year (excluding the impact of the change in the fiscal
year end: 11.8% year on year), due to solid performance in all segments, mainly in
the Affiliate Business of the Corporate and Creator 5G DX Support Business.
Corporate andCreator 5G DX
support business

5G infrastructure
support businessTransaction
Increase

5G lifestyle Transaction Increase
supportbusiness
Transaction
Increaseintersegment
transactions
increase

39,992 (Millions of yen)

38,260GPG actual(1 months)

34,216FY2023/04 Q3
ActualFY2024/04
Q3 Actual

FreeBit Co., Ltd. All Rights Reserved. ※ Figures of "excluding the impact of the change in the fiscal
year-end" are unaudited reference figures.

(excluding the impact of thechange in the fiscal year-end)

FY2024/04
Q3 Actual(including the impact of thechange in the fiscal year-end)

7

YoY Variance Analysis Operating Income
While implementing strategic investments, all segments remained solid, mainly in 5G Lifestyle Support
Business. As a result, actual results increased by 47.4% year on year and base income increased by
38.0%.(Excluding the impact of the change in the fiscal year-end: Base profit up 27.8%)
Corporate and
5G Lifestyle creator 5G DX
Support support business
Other
Business
5G
Profit Increase
Infrastructure Profit
Increase
SupportBusiness
ProfitIncrease+633

Strategic
investment

3,889

+269

-6

GPG actual

4,970 （1 months)

5,368

Strategic
investment

698(Millions of yen)

4,670

+185

3,167

FY2023/04
Q3 Actual

FY2023/04 Q3
Base income

FreeBit Co., Ltd. All Rights Reserved.

* Base income and figures excluding
the impact of the change in thefiscal year-end are unaudited reference figures.

FY2024/04
Q3 Base income

FY2024/04 Q3
Base income

FY2024/04
Q3 Actual(excluding the impact of the (including the impact of the (including the impact of thechange in the fiscal year-end) change in the fiscal year-end) change in the fiscal year-end)8

Breakdown of strategic investment for FY 2023 and FY 2024
Continuous implementation of strategic investments, including acquisition of "TONE"
and "TONE Labo" users for 5G lifestyle support business and promotion of businesses
in the incubation zone
(Millions of yen)

5G Infrastructure Support
Business
5G Lifestyle Support BusinessCorporate and Creator 5G DX
Support Business

5G Infrastructure Support Business(214 million yen)

FY2023/4
Total 1.28 billion yen･ Development of 5G data-center･ Data collaboration projects, etc.

FY2024/04

5G Lifestyle Support Business (404million yen)562

･Acquisition of users of “TONE” and “TONE
Labo” (Downward trend due to control ofacquisition costs while continuously implementing
from the previous fiscal year) TONE Opening
measures

118

245

241

235

30

39

150

122

143

60

72

77

FY2023/04 Q1

FY2023/04 Q2

FY2023/04 Q3

24

FreeBit Co., Ltd. All Rights Reserved.

Third quarter of FY2024/04
Strategic Investment Results

213

214

12

11

125

145

90

74

57

82

FY2023/04 Q4FY2024/04 Q1

FY2024/04 Q2

FY2024/04 Q3353･ Develop and test 5G Healthstyle areas"TONE Care"270
54･ Web3(Blockchain) related
development/testing, “LIVING TOWN Minato
Mirai" Project-related expenses, etc.

132

FY2024/04 Q4

Support for corporate and creator
5G DX
Support Business (79 million yen)･ Creator Maker Domains [StandAlone] multifaced development of platforms

9

YoY Difference Analysis Ordinary Income
Due to strong base profit, actual results increased by 54.9% year on year
and base profit increased by 43.5%.(Excluding the impact of the change inthe fiscal year-end: Base profit up 32.8%)(Millions of yen)

Base
Operating
IncomeIncrease+1,080Strategic
investment

721

TOB related Gain on sales
expenses in of investment
the previous
securities
Other
fiscal year

+95

+13

+21

GPG actual(1 months)

4,894

Strategic
investment+395 5,290 698

4,592

3,685

2,964

FY2023/04
Q3 Actual

FY2023/04 Q3
Base income

FY2024/04
Q3 Base income

FreeBit Co., Ltd. All Rights Reserved. change in the fiscal year-end are unaudited reference(excluding the impact of thechange in the fiscal year-end)※ Base income and excluding the impact of the
figures.

FY2024/04 Q3
Base income

FY2024/04
Q3 Actual(including the impact of the(including the impact of thechangein the fiscal year-end)10
change in the fiscal year-end)

YoY Variance Analysis Quarterly net income attributable to owners of the parent

Increased by 73.2% YoY due to increase in ordinary income, etc.
(Excluding the impact of the change in the fiscal year-end: up 63.7%)
Increase inordinary income+1,232Gain on sales ofinvestment
securities+172(Millions of yen)

Increase in tax
expense-356

GPG results(1 month)

Other

+7

2,711

+157

2,868

1,656

FY2023/04
Q3 Actual※ Figures of "excluding the impact of the change in the fiscal

FreeBit Co., Ltd. All Rights Reserved. year-end" are unaudited reference figures.

FY2024/04
Q3 Actual

FY2024/04
Q3 Actual(excluding the impact of thechange in the fiscal year-end)(including the impact of thechange in the fiscal year-end)11

Consolidated Results Summary BS
Shareholders' equity ratio increased to 30.5% due to an increase in retained earnings
resulting from solid performance and a reduction in interest-bearing debt
(Millions of yen)

Current
Assets30,640Liabilities

Current
AssetsLiabilities

24,89429,501

21,343

Cash
Equivalent
18,305

Cash
Equivalent
16,476

Net Assets

11,032
Fixed Assets
5,286

Shareholders'equity8,242

FY2023/04 (fiscal year end)

FreeBit Co., Ltd. All Rights Reserved.

Net Assets

14,220Shareholders’Equity Ratio

22.9%

Fixed Assets
6,061

Shareholders'equity10,842

FY2024/04 Q3

Shareholders’Equity Ratio

30.5%

12

Net Sales and Operating Income per Employee
Net sales and operating income (base profit) per employee are
expected to increase from the previous fiscal year
(Thousands of yen)

60,000SiLK VISION2013

SiLK VISION2020

SiLK VISION
2016

FY2021/04

SiLK VISION
2024

10,000Net sales per capita
Operating income per capita

40,0005,000

20,0000

0FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(Adjusted (Base income*2) (Base income) Earnings
value*1)
Forecasts*3(Base profit)

FreeBit Co., Ltd. All Rights Reserved.

*1 Adjusted figures are unaudited reference figures that exclude the impact of accounting standards for revenue
recognition, off-balance-sheet businesses, strategic investments, and changes in the DTI fiscal year-end.
*2 Base profit values are unaudited reference figures.
*3 Estimated using the number of employees in the 23rd fiscal period for the 224th fiscal period.

13

2. Financial results by segment for the Third Quarter of FY2024/04

FreeBit Co., Ltd. All Rights Reserved.

14

Composition by segment
Revenues and profits increased in all segments: 5G Infrastructure Support
Business, 5G Lifestyle Support Business, and Corporate and Creator 5G DX
Support BusinessCorporate and creator
5G DX Support Business

5G Infrastructure
Support Business17.7%

Net sales

Segment profit or loss

5G Infrastructure Support Business

34.9%

Actual 7,424 million yen
YoY +4.4%

Actual 1,341 million yen
YoY +15.6% (Actual %) or+13.5% (Base %)5G Lifestyle Support BusinessNet sales
39.992billion yen

Actual 19,903 million yen
YoY +18.7%

Actual 2,578 million yen
YoY +68.0% (Actual %) or+52.9% (Base %)Corporate and creator 5G DX support business

Actual 14,654 million yen
YoY +18.0%

Actual 767 million yen
YoY +59.3% (Actual %) or+46.7% (Base %)5G Lifestyle Support Business
47.4%
FreeBit Co., Ltd. All Rights Reserved.

15

[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 Carlifestyle (MaaS)

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

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

Infrastructure Tech business(freebit, DTI)
Ad-Tech business (FullSpeed)
Real
Tech
Business (GIGA PRIZE)
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.
Growing continuously incorporating
the changing times such as 5G
and eSIM.
16

5G Infrastructure Support Business : Performance Progress
B2B2X(B/C) Operating income increased 13.5% year on year due to increase in use of
B2B2X(B/C) mobile services, despite decrease in use of fixed network services andincrease in personnel expenses (compared to the base)
4,000

Segment Profit/Loss YoY Variance Analysis

Net Sales and Segment Income (Loss)(Millions of yen)+393
Net Sales-57

Segment Income

3,000

Segment income

2,328

2,404 2,376 2,380 2,427

-89
-62

2,496 2,500

500
2,000

468
427

393

B2B2X(B/C) Mobile: Profits increased due to increased use ofservices
B2B2X(B/C) Fixed network: Decrease in profit due to decreasein use of services
Increase in personnel expenses due to strengthening of human
Breakdown: ・Development of 5G data-center
resources
・Data collaboration projects, etc.
Other

Strategic
investment

-57

-89

-62

Strategic
investment
214

1,341

435

438

(Millions of yen)

340

1,000
217

0

0
Q１

Q２

Q３

Q４

FreeBit Co., Ltd. All Rights Reserved.

Q１

Q２

FY2023/04 FY2023/04 Q3
Base income
Q3 Actual

FY2024/04 Q3 FY2024/04
Base income
Q3 Actual

Q３※ Base income is an unaudited reference figure.

17

5G Infrastructure Support Business Topics
Cultivate a broader range of new customers such as startups
Continuous announcement of construction of direct sales system and provision of new services● Continuous launch of ICT services for corporations
through B2B direct sales to small-lot customers
Previously we had mainly developed services for B2B2X(B/C), but we havestarted direct sales to customer segments that want to expand our reach.
Leveraging the strengths of FreeBit Group companies, we have built
our own structure required for direct sales, such as service design andonline complete sales platforms, and will develop new customer
segments such as startups and SMEs.

Existing core businesses Building a system that candirectly sell to B2B

B2B2X(B/C) Mainly models↓
To small-lot customers
Non-direct reach

FreeBit Co., Ltd. All Rights Reserved.

Online complete systemusing credit payment andworkflow development

Develop new customers in a
wider range thanstartup companies, etc.
Started direct sales to B2B at ICTpacking for corporations [freebit
Business]● Develop ICT-packaged products "freebit
Business”, for corporate customers
Announced the provision of the second phase,“freebit mobile Biz" in ICT packaging forcorporations "freebit Business" following thelaunch of the first phase “IP everywhere"
The first phase “IP everywhere" allows access tointernal servers easily and is highly secure fromoutside the home using fixed IP addresses
In the second phase, “freebit mobile Biz",
5G business-use devices can be used easily andreasonably by installing eSIM in private devices● First phase [IP everywhere]● Second phase [freebit mobile Biz]

Leveraging strengths
within the FreeBit Group･ FullSpeed: Marketing expertise･ Kride: System construction
capabilities

B2B Online Complete
Sales Platform

Billing/eKYC
18

Future Strategic Image
Core 5G/Core web3

Pre 5G/Pre web3

5G Homestyle

5G Lifestyle

5G Healthstyle

freebit Business(B2B direct sales)

5G system
ServiceG/

Radius (Certification)

5

G)

FreeBit Co., Ltd. All Rights Reserved.

Internet Marketing (FS)4

Hardware Planning and Development (ODM)

SIP (Device Certification, Voice)

Customer Support System/BPO(SW)

Bandwidth control

Customer Management and Billing System (DTI)

Network Virtualization (SDN)

Cloud services

Server Virtualization (Virtual DC)

TONE/DTI(B2C)showroom

High-speed networking (FTTH/

Blockchain (DigitalKey,Infra Integrated,mobile)

freebit web3 Blocks

Platform Maker (5G) /web3 blocks

eKYC

Machine learning/Data

5G

5G

Industrial
Blockchain(Powered by CountUp)

Unique management (Showroom)
Safety Engine (Safe AI/ Filtration)

web3(DAO)
Related services

19

“IP everywhere" Interview articles“freebit Business” initiatives’ first phase “IP everywhere” published interview-article
ranked No. 1 in weekly access on the third day of public offering● "IP everywhere" interview article
ranked No. 1 in weekly access on
the third day of public offering
An interview-article on "IP everywhere" was posted
on "INTERNET Watch", a news distributor on the latest
Internet trends
Ranked No. 1 in weekly cumulative access in the“Series, Feature, Review, Others” category, three days
from its release on 3/1

FreeBit Co., Ltd. All Rights Reserved.

● Interview article"Users of Fixed IP Service are increasing? Hearing its
reasoning”

Source: Published March 1, INTERNET Watch 24
Reference URLs: https://internet.watch.impress.co.jp/docs/interview/1570953.html

20

5G Lifestyle Support Business: Performance Progress
Operating income increased 52.9% year on year due to solid 5G Homestyle and improved profit
in TONE business (compared to the base) (excluding the impact of the change in the fiscal year
end: increased 32.5% year on year)
Segment Profit/Loss YoY Variance Analysis
Net Sales and Segment Income (Loss)
Net Sales (Results)
Segment Income (Actual/Including
the Impact of Change in Fiscal Year-End)
Segment Income (Actual/Excluding
the impact of Change in Fiscal Year-end)*

10,0002,000

Segment income (Base Income/
Including impact of change in fiscal year-end)*
Segment Income (Base Income/Excluding impact of Change in Fiscal Year-end)*(Millions of yen)

+16

7,600

7,500
6,497

(1
mounth)6,054

GPG results(1 month)

6,249

1,000

500

0

0
Q２

Q３

404

2,578

377

504

377

Q１

+494 -107+398+16 2,585

1,535

832

555

Strategic
investment

Strategic
investment

415 1,951

711

602

･ Develop and test 5G Healthstyle area of “TONE Care"･ Web3(Blockchain) related development and testing, etc.
・”LIVING TOWN Minatomirai“ project-related expenses

1,500

1,034

2,500

Increase in income due to sales increase in 5G Homestyle(GPG)(Millions of yen)
Decrease in income due to decrease in use of 5G Lifestyle(DTI) fixed
network services
Improved profit in TONE business (decrease of one-time expenses for thelaunch of new devices in the previous fiscal year and reduction of store
development expenses)
Breakdown: ・Acquisition of users for “TONE mobile”
Other

GPG

5,477 5,679 5,606

5,000

+494
-107
+231

Q４

Q１

Q２

FY2023/04 Q3
ActualFY2023/04 Q3
Base income

Q３

FreeBit Co., Ltd. All Rights Reserved.
※ Base income and excluding the impact of the change in the fiscal

FY2024/04 Q3
Base income

FY2024/04 Q3
Base income(Excluding impactof the change infiscal year-end)(Including impactof the change infiscal year-end)

FY2024/04
Q3 Actual(Including impactof the change infiscal year-end)21

5G Lifestyle Support Business: Performance Progress
The number of units provided for ISP services for apartment buildings, a key indicator of
5G Homestyle(GPG), was steady, increasing by 106,000 units compared to the end of theprevious fiscal year to a cumulative total of 1,157,000 units
FY2024/04
Full-year forecast(13 months)(Unit: thousand units)

122.6

105.1

YoY change

Increase of
106,000
units

90.0
74.5

End of December
ActualTotal number ofunits offered

56.4

1,157,000
units

End of
FY2020/03

End of
FY2021/03

End of
FY2022/03

End of
FY2023/03(March 31,2020)(March 31,2021)(March 31,2022)(March 31,2023)

FreeBit Co., Ltd. All Rights Reserved.

End of Q3
FY2024/04(December 31,2023)

22

5G Lifestyle Support Business Topics
Leveraging our expertise in developing new products and ISP services for apartmentbuildings, we will horizontally expand into existing markets and develop new markets.
● Utilizing the expertise cultivated in ISP services for apartment buildings, implement development of state-of-the-art productswith an eye to 5G/web3 era. While promoting horizontal development in the market for apartment buildings, utilize ISP service
technologies for apartment buildings in conjunction with new products to develop new markets● Provision of "cloud camera service" in collaboration
with NTT Media Supply"Cloud camera services" added sensor systems to lines provided
by ISP for apartment buildings, an existing business for cloud video
storage functions, and built a business model to provide thesesystems to each property, making progress in monetization
Providing crime prevention camera functions for apartment buildings byutilization.
Aiming to expand service users and enhance property value by
leveraging the strengths of both companies, which provide services
in collaboration with NTT Media Supply and have many points ofcontact with customers in the apartment market● Strategic Image of 5G Homestyle Area
Realizing New Lifestyles andHousing through 5G Homestyle

Develop new products
IoT services
Smart Pole

Horizontal
expansion into
existing markets

Develop newmarkets
Public facilities

For apartmentcomplexes
Cloud camera

Detached house market
Wi-Fi6compatible
PWINS

x● Introduction of next-generation street lights"Secual Smart Pole" to "Metropolitan Meiji ParkDue to drones
High-rise
maintenance

Smart Town

FreeBit Co., Ltd. All Rights Reserved.

ISP services forapartmentcomplexes

Established in Meiji Park
"Secual Smart Pole"First Park-PFI business in Tokyo
adopted next-generation street lights"Secual Smart Pole" in "Meiji Park"
Contributing to the DX of businesses
that grasp the actual use of parks
Aiming for the Creation andSocial Implementation of
Innovative Services to Solve the
Problems of Local Governments asa New Business23

5G Lifestyle Support Business Topics
Announced on December 8, 2023, web3 stakeholder community demonstration tests“One Vision” launched “TONE Coin” real-value exchange for customers

Real value exchange began on
February 1, 2024
TONE users
At the beginning of the service,“ 1 Tone Coin” exchanges

100 yen for the service fee
Shareholders

World’s third largest layer 1 blockchain

Employeesof TONE mobile

World’s third largest
layer 1 blockchain

Customers

FreeBit Co., Ltd. All Rights Reserved.

24

Changes in the number of TONE Chain nodes“Real value exchange for TONE Coin” Since its announcement, the number of
TONE Chain nodes has further increased. Even after the real value exchange began,
the number continues to be steady.
Transition of TONE Chain nodes *User nodes, Partner nodes, etc. Total
6,000

5,500

World’s third largest
layer 1 blockchain

February 1, 2024
To Tone Mobile
pricingStart of appropriation

5,000

4,500

December 8, 2023
Announced in February 2024 thatit could be appropriated for 100 yen per[1 TONE Coin]
For monthly Tone Mobile usage fees

4,000

9/15
9/17
9/19
9/21
9/23
9/25
9/27
9/29
10/1
10/3
10/5
10/7
10/9
10/11
10/13
10/15
10/17
10/19
10/21
10/23
10/25
10/27
10/29
10/31
11/2
11/4
11/6
11/8
11/10
11/12
11/14
11/16
11/18
11/20
11/22
11/24
11/26
11/28
11/30
12/2
12/4
12/6
12/8
12/10
12/12
12/14
12/16
12/18
12/20
12/22
12/24
12/26
12/28
12/30
1/1
1/3
1/5
1/7
1/9
1/11
1/13
1/15
1/17
1/19
1/21
1/23
1/25
1/27
1/29
1/31
2/2
2/4
2/6
2/8
2/10
2/12
2/14
2/16
2/18
2/20
2/22
2/24
2/26

3,500

FreeBitCo.,
Co.,Ltd.
Ltd.All
AllRights
RightsReserved.
Reserved.
FreeBit25

World ranking in the number of nodes of Layer 1 blockchain
TONE Coin expanded to third in the world,in terms of the number of nodes used by users(as of March 2024, according to own research)

Announced
today※ The number of Nodes per Blockchain varies from day to day.

Bitcoin• Point system using EVM-compatible Layer 1 blockchain that operates solely
on the world's first smartphone• It succeeded in real operation in the long term on the scale of third in the worldin the number of nodes (6,010 Nodes:TONE User 4,511/ Partner, etc. 1,499)• Successfully distributed node owners and nodes on the largest scale in the world

Ethereum(PoW)

18,117TONE Coin
6,010
1,499

6,840

bitcoin

Ethereum(PoW)

Started in January 2009
182 months

Started in July 2015
104 months

4,511
TONE Coin

Zcash
3,899
Zcash

Filecoin
2,957
Filecoin

Polkadot

Avalanche

SolanaBinance

1,908

1,828

1,657

1,523

Polkadot

Avalanche

SolanaBinanceStarted in June 2022 Started in October 2016
89 months
21-month period

https://coin.dance/nodes
https://etherscan.io/nodetracker
Each
value
SourceFreeBit Co., Ltd. All Rights Reserved.

Started in May 2020
Started in October 2020
Started in March 2020
Started in July 2017 Started in September 2020
46 months
41 months
48 months
80 months
42 months※Active Miners※Validators※Binance Coin
※Validators
https://blockchair.com/zcash/nodes
https://telemetry.polkadot.io/
https://solanabeach.io/validators
https://filfox.info/en
https://subnets.avax.network/validators
https://bscscan.com/nodetracker

26

[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 Carlifestyle (MaaS)

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

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

Infrastructure Tech business(freebit, DTI)
Ad-Tech business (FullSpeed)
Real Estate Tech Business (GIGA PRIZE)

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.
Growing continuously incorporating
the changing times such as 5G
and eSIM.
27

Corporate and Creator 5G DX Support Business：Performance Progress
Operating income increased 46.7% year on year due to higher net sales and gross profit
with strong performance in the Affiliate Business, and with the impact of PMI following
the conversion of FS to a wholly owned subsidiary.
Segment Profit/Loss YoY Variance Analysis
Net Sales and Segment Income (Loss)(Millions of yen)+107
Net Sales

Increase in gross profit in the Affiliate Business by strengthening focus
genres and acquiring new customers, including overseas customers
Decrease in SG&A expenses due to PMI effects such as resource
optimization accompanying the conversion of FS to a wholly owned
subsidiary
Breakdown ・Multifaced development of
Other

+118

Segment Income
Segment income

5,000
4,039 4,036

4,339

4,434

4,668

5,130
4,855

+45

platforms of ”StandAlone"

400

+118

338

+45

Strategic
investment
846
79(Millions of yen)

Strategic
investment

95

2,500

226

200

231
197

159
122
96

0

0
Q１

Q２

Q３

Q４

FreeBit Co., Ltd. All Rights Reserved.

Q１

Q２

FY2023/04
3Q Actual

FY2023/04 3Q
Base income

FY2024/04 3Q FY2024/04
Base income
3Q Actual

Q３※ Base income is an unaudited reference figure.

28

Corporate and Creator 5G DX Support Business Topics
Progress in development of new artists' services StandAlone
Aiming to form a fan community in 5G/web3 era● Through development and demonstration tests, artists are expanding horizontally, such as selling tickets and goods using
platforms and implementing subscription services. Aiming to build a fan community in 5G/web3 era, further develop
services and utilize proprietary technologies● Toward horizontal community development● StandAlone Business Development Image
Development of services by new artists
Development andprogressed
Service Development
In the future
field trials
Gradual release of new artist apps aimed at horizontal
Develop platforms andcomponents, andconduct demonstration
tests

Chat

Events

NoticePhoto

HealthTicket manage
Live/
ment
Archive
distribu
Video
tion

WebsiteSNS Feed

MemberRegistration/Login

Billing/Limited Content

Server services

UI design

Existing service
switching

Provision of services utilizing
platforms

Implementation of ticket and goods sales
for events

Aiming to form a fan community
in 5G/web3 era by utilizing
proprietary technologies andhorizontally deploying
communities
Utilization of FreeBit's proprietary
technology

Provision of subscription services

development of services for creator communities
Jockey Ryusei Sakai's app "RS Jockey Room“ launchedon February 20
In addition, Maika Yamamoto, the leading actress of
Nippon Television drama series “Sister", and as the up andcoming actor, we are preparing for the release of the
popular Airu Kubozuka app.
2/20~ "RS Jockey Room"(Ms. Ryusei Sakai, a jockey)
Fan Community App)

Actress/Model
Maika Yamamoto

Horizontal development ofservices for creator community

FreeBit Co., Ltd. All Rights Reserved.

Actor Airu Kubozuka

Horizontal development ofcommunities and their linkages

29

“One Vision" progress
December 8, 2023 announced Web3 demonstration tests of stakeholder communities
Shareholder-oriented initiatives progress of “One Vision”

Shareholders

World’s third largest layer 1 blockchain

Employees

Customers

30

“One Vision" progress
Regarding the shareholder return measure of “One Vision”,
a roadmap has been announced to provide the service for shareholders
as of the end of April 2024
● Announcement of roadmap on "One Vision”● "One Vision" Shareholder Benefits
as a shareholder-return measure
Announced
today

Started offering "FreeBit Shareholder DAO App" for shareholders as of the endof April 2024, with shareholder return measures in June
Granting “Shareholder NFT" allows them to acquire "TONE Coin" as compensation
through the sealing of "TONE Chain" and participate in "FreeBit Shareholder DAO“by posting on the shareholder bulletin board and participating in various
demonstration tests of FreeBit Group
Early May

Preparation ofshareholder
register as ofend of April

Early to mid-June

Sending guides totargeted
shareholders↓↓
Registration starts
Determinationof target
shareholders※ Freebit eKYC
Customer Certification

Provide “FreeBit Shareholder
DAO" App and "FreeBit
Shareholder DAO"
participation rights"Shareholder NFT"
･ After creating "TONE Chain
wallet(tentative)", approvesealing participation right in"TONE Chain" by
FreeBitDAO(vote)･ "Shareholder NFT" may be
granted to "TONE Chain
wallet(tentative)“ to participate
in "FreeBit Shareholder DAO"

Receiving “TONE Coin“for sealing compensation･ Utilize excess smartphone resources. Participate
in "TONE Chain" sealing･ Rewarded "TONE Coin]“ as compensation･ Considering a system that can exchange value
with shareholders

From late July

Gradual launch ofvariousdemonstration tests
conducted by FreeBit
Group

Post to Shareholder Bulletin Board･ Shareholder bulletin board allows
shareholders to interact with each other andwith FreeBit IR representatives･ TONE Camera･ TONE LifeLog･ TONE Care
etc.

31

3. "SiLK VISION 2024" Landing Forecast

FreeBit Co., Ltd. All Rights Reserved.

32

Progress of Consolidated Financial Results for FY 2024/04
Strong performance against forecast after upward revision (announcedon December 8, 2023). Q4 is also expected to progress as planned
Q3
cumulative
results

Full year
Earnings
Forecasts(Upward Revision)

Net sales

OperatingincomeOrdinary
incomeQuarterly income
attributable toowners ofthe parent
FreeBit Co., Ltd. All Rights Reserved.

75.5%

84.9%

88.3%

95.6%

39.99
billionyen

53
billionyen

4.67
billionyen

5.5
billionyen

4.59
billionyen

5.2
billionyen

2.86
billionyen

3billionyen
33

Medium-term management plan "SiLK VISION 2024"
As a result of the three-year medium-term management plan, the performancetargets for the final year of the plan are expected to exceed net sales of 50
billion yen and operating income of 5 billion yen, and the forecasts are fornet sales of 53 billion yen and operating income of 5.5 billion yen.
(Millions of yen)

52,009Net sales

Operatingincome50,00046,771
43,075

Base
income4,835

Base
income5,291

Base
incomeStrategic
Investment

3,403
Accou
nting
ProfitAccou
nting
Profit

5,000

4,007

3,165

FY2021

FY2022

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

FY2024FY2021

FY2022

FY2023

FY2024SiLK VISION 2024

※1 Net sales and operating income in FY2021 are figures before adjusting "Accounting Standard for
Recognition of Revenue" and other factors.
※2 Base income is the business income figure excluding temporary investments and unaudited for the reference. 34

Toward "SiLK VISION 2027"
In the current fiscal year, as the second [Transformation Term] toward SV2027,
we also conducted a strategic reexamination.
In SV2027, lifted the ban on M&A and expanded the strategic portfolio

Setup
500/50 Retry(No Acquisition/Business Investment)+Business PF realignment/
Revenue recognition standard

Implementation(Social Implementation)

Expansion“SiLK VISION 2024“ Final Year (Current Year)･ Results Targets for the Final Year Progress Over Net Sales of 50 billion yen and Operating Income of 5 billion yen･ Aiming for "SiLK VISION 2027" ,current fiscal year positioned as the second "Transformation Term“and optimized of portfolios
Re-examine organizational strategy, human resources strategy, and business strategy,
and implement an action-based SiLK VISION 2027 that deepens the future“SiLK VISION 2027“･ Social Implementation of New Businesses such as “One Vision in Incubation Domains･ In line with the growth of existing businesses, expand the Strategic Portfolio through lifting of the ban on
M&A and Business Alliances
FreeBit Co., Ltd. All Rights Reserved.

35

Disclaimer
Forward-looking statements in this document, including our forecasts, goals, targets, plans
and strategies, are based on information that we believe to be reasonable at the time of
preparation of this document. Actual results and targets may differ materially from these
forecasts and targets due to various factors. These materials are explanatory materials for ourbusiness strategy 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.

36

4. Appendix

FreeBit Co., Ltd. All Rights Reserved.

37

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. We willcontinue to provide stable, safe, and secure
telecommunications infrastructure services, whilebuilding next-generation networks and data centers forthe 5G era and aiming to develop new services utilizing
5G and eSIM.

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”koto (thing)" 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
promote who they themselves can become as a resultof using them. In other words, a market that satisfies
Mazlo's "desire for self-realization" (= costconsumption) 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.

38