Briefings on Financial Results for the Second Quarterof the Fiscal Year Ending September 30, 2022
(FY2022)APAMAN Co., Ltd.
May 13, 2022
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Tokyo Stock
Exchange (Standard): 88891

1. 2Q FY2022 Financial Summary
2. 2Q FY2022 Results by Segment

Contents

3. FY2022 Consolidated Forecast
4. Key Activities
5. Appendix

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2Q FY2022 Financial Summary

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Topics

Net sales

Operating profit

Profit attributable toowners of parent22.7 billion ¥0.92 billion ¥0.16 billion¥Up

0.7％YoYUp

116.4％ YoY

Up454.9％ YoY

Following the enactment of the digital reform laws, all formalities concerning rental contracts from May
18, 2022 onward can now be processed online. The Apaman Group has moved all peripheral formalities toCloud ahead of the promulgation of the above law.

(1) Higher operating profit at directly operated stores(2) Higher operating profit in rental management
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Financial Summary｜ Overview of Consolidated Statement of Income(Millions of yen)

2Q FY2021

Ratio to netsales

2Q FY2022

Ratio to netsales

YoYchangeNet sales

22,582-

22,744-+162

Gross profit

4,998

22.1%

5,305

23.3％

+306

SG&A expenses

4,570

20.2%

4,377

19.2%

-192

Operating profit

428

1.9%

927

4.1%+499

Ordinary profit

324

1.4%

701

3.1%

+377

Profit attributable toowners of parent

290.1%

161

0.7%

+132

1,196

5.3%

1,543

6.8%

+347

EBITDANote Net sales and cost of sales: Decrease ¥340 million due to the application of the new revenue recognition standard Non-operating income: Equity-method profit/loss; loss of ¥70 million (down ¥190 million YoY)
 Non-operating income: Foreign exchange gains ¥110 million (up ¥60 million YoY)
Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill

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Financial Summary ｜ Overview of Consolidated Balance Sheet(Millions of yen)

EndFY2021

2Q FY2022

ChangeEndFY2021

2Q FY2022

ChangeCurrent assets

14,804

13,877-926

Current liabilities

10,202

11,537+1,334

Cash and deposits

7,359

6,120-1,239

Accounts payable-trade

1,149

2,061+911

Short-term borrowings Note 2

2,364

2,499+134

Other

6,688

6,976+288

18,45917,005-1,454Long-term borrowings

15,892

14,608-1,283

1,621

1,545-76

946

851

-94

Notes and accounts receivabletrade, and contract assets Note 1

1,742

1,950+207

Operational investment
securities

1,197

1,203+5

Other

4,504

4,603

+98

18,437

19,057+620

Long-term lease and guarantee
deposited

Property, plant and equipment

3,275

2,935-340

Other

Intangible assets

9,070

9,417+347

Total liabilities

28,66228,542-120

Goodwill

6,406

6,003-402

Other

2,663

3,414+750

Capital

7,983

8,002+19

6,091

6,704+613

Net assets

4,578

4,392

-186

33,241

32,935-306

Total liabilities and net
assets33,241

32,935-306

Non-current assets

Investments and other assets

Total assets

Non-current liabilities

 Increase in non-current assets because of the increase in system development following the purchase of the stock of ARCHITECTS STUDIO JAPAN, INC.
through a third-party allotment
 Decrease in long-term borrowings
Notes: 1. End-FY2021: Notes and accounts receivable-trade

2. Includes current portion of long-term borrowings

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Financial Summary ｜ Quarterly Sales(Billions of yen)

FY2020

FY2021
44.4

44.1

33.6

33.0

22.7

22.5

22.0

11.1

10.6

1

FY20222

3

Note: Quarterly sales are cumulative results.

4510.8678

9101112

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Financial Summary ｜ Quarterly Operating Profit(Billions of yen)FY2020

FY2021

FY2022
1.35

0.93

0.84

0.45

0.92

0.42

0.39

0.14
0.03(0.07)123

Note: Quarterly operating profit is cumulative results.

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Financial Summary ｜ Profit Structure
Constant revenue accounts for about 70% of gross profit

Management

Platform

Constant-revenue gross profit

66%

Rental management fee(Includes sub-leasing)Company-rented
housings

Brokerage fee

Cloud service

Usage fee

Franchise service

Royalty fee

Metered parking

Parking fee

TechnologyOther

Note: Sales for businesses in the same segment that are divided between constant-revenue and other gross profit include transactions within the segment that are eliminated in theconsolidated financial statements.

As of Mar. 31, 2022

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9Financial Summary ｜ Share and Amount of Constant Revenue Gross Profit(Billions of yen)

FY2020

FY202175%

FY2022
66%

68%

Share of constantrevenue gross profit
in total gross profit

Gross profit

Gross profit

4.41

Constant
revenueConstant
revenueConstant
revenue

3.51

3.39

3.29
2

1.79

1.60

1.1215.30

4.99

Gross profit

3Note: Quarterly gross profit is cumulative results.

456789101112

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2Q FY2022 Results by Segment

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Results by Segment｜ Platform Business(Millions of yen)

Topics Higher sales and earnings at directly operated stores due togrowth of online operations
 Contribution from M&A management companies

Segment sales

Segment profit
1,403

17,175

18,241

17,948962

958+46.4%+1.6%

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Results by Segment｜ Platform Business The number of units under management increased
Topics Gross profit of cumulative included services increased The number of companies using the company-rented housing
service and company housing agency service increased
2Q FY2021

No. of units undermanagement
No. of directly managed
storesGross profit of included andassociated services
No. of companies using thecompany-rented housing
serviceNo. of companies using thecompany housing agency
service

2Q FY2022

YoY Change90,422

90,532+110

6971+2711 million yen

758 million yen+47 million yen

27

96+69

2,992

3,050

+58

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Results by Segment｜ Technology Business(Millions of yen) Higher sales and earnings due to growth of online operations
Topics Used SKIPS (cloud) to increase productivity
 The use of e-contracts is expected to increase

Segment sales
4,038Segment profit
3,977

3,913

203

187
+1.6%

+8.3%

36
12

3

123

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Results by Segment｜ Analysis of Operating Profit (YoY Change)(Millions of yen)

Gross profit

SG&A expenses+306

・ Deconsolidation offabbit
・ Decrease inrecruiting expenses

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FY2022 Consolidated Forecast

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Overview of Consolidated Forecast(Millions of yen)

FY2021Results

FY2022
Forecast

ChangeNet sales

44,41945,000+580

Operating profit

1,356

1,800+443

Ordinary profit

795

1,000+204

Profit attributable toowners of parent

602200-402

The FY2022 forecast factors in an expected loss on retirement of the existing IT system due to therenewal of the backbone system and the cost of relocating the head office.
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Key Activities

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Key Activities｜ (1) Growth of Online Activities
Online real estate procedures are on the increase following the enactment of digital reform laws.

Online First
Locate and rent anapartment online

Online explanations
and contracts

Shared electronic
keys for apartments

Use of AI for
marketing activities

Automated rentalmanagement

New way to searchfor an apartment

Online meetings

Online seminars(Property owners, franchisedcompanies, members)(Property owners, franchisedcompanies, members)

Time of day

Staff
appointment

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Key Activities｜ (2) Growth of Online Activities
The use of technology for a new way to search for an apartment
Time of day• Customers can select a time of day when visiting the store is easier• Improves the efficiency of store operations

Staff
appointment

Apamanshop
Online• Assigning the most suitable individual for each customer’s
requirements improves customer satisfaction and the pct. of customers
who lease an apartment from APAMAN• More efficientcustomer services

Onlineinteraction

Online property
viewing

Onlineexplanations

Mailing• More diversity forworking styles

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Key Activities｜ (3) Improving the efficiency of rental management,
including management of company housing and stores
Leveraging the largest network of rental brokerage offices and the number ofproperties handled

No. of leasing properties forcompany housing

No. of stores and units undermanagement

Increase the number ofcompany housing alliances

Increase the use of M&A and outsourced
rental property management

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Appendix

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22Market Scale(Trillions of yen)

Annual sales in Japan’s real estate market are about 35.2 trillion yen
and annual transactions in categories where APAMAN operates are about 13.1 trillion yen
Annual real estate industry sales

29.7

32.1

35.2

Agency/Brokerage

28.7

30.9

33.7

Annual rental and agency/brokerage sales

Rental123

45Service Industry Trends Survey, 2018, Statistics Bureau, Ministry of Finance

63.6Approx.

13.1 trillion yen

4.2

4.4

3.2

3.3

7.4

7.8

8

8.4

8.7

8.7

123

4

56

3.3

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Business Climate: Rental Brokerage Business/Number of Households

The number of households in Japan is expected to decrease at a slow pace
Lot of room for sales expansion as the market becomes more oligopolist

系列1Households in Japan and estimates

系列251,84253,332

54,107

54,116(Thousand households)

53,48452,31546,78250,75740,6709,390

112,911

216,78518,418

19,342

19,96020,254

20,233

19,9443456789

Estimate

Estimate

Estimate

Estimate

Estimate

Source: Prepared by APAMAN based on data from National Institute of Population and Social Security Research

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Company ProfileCompany name

APAMAN Co., Ltd.

Established

October 1999

Head office

Asahi Seimei Otemachi Building, 2-6-1, Otemachi, Chiyoda-ku, Tokyo 100-0004

Capital8,002 million yen (as of March 31, 2022)

Boardmembers

Koji Omura, President and CEO
Takashi Kawamori, Managing Director Akihito Watanabe, Outside DirectorTakeshi Yamada, Outside Audit & Supervisory Board Member
Yujirou Takahashi, Outside Director
Takaaki Yamazaki, Full-time Audit & Supervisory Board Member
Makoto Ariyasu, Outside Audit & Supervisory Board Member

Employees

Consolidated: 1,129; Non-consolidated: 52 (as of September 30, 2021)

Main businessGroupcompanies

Platform Business, Technology Business, OtherJapan
Apaman Network Co., Ltd, Apaman Property Co., Ltd., wepark Co., Ltd., Mi LIFE Co., Ltd., PLEAST SERVICE CO.,LTD.,
RE-Standard Co., Ltd., Apaman Energy Co., Ltd., AMENITY HOUSE Inc., Apamanshop Leasing Hokkaido Co., Ltd.,FIRST LIVING Co., Ltd., Apart Center Co., Ltd., Gaspro Co.,Ltd., Apamanshop Sublease Co., Ltd., Rentalhouse Co.,Ltd.,ClassHome Co.,Ltd., MYHOUSE Co.,Ltd, SUMiTAS Partner Co., Ltd., dplan Co.,Ltd., JK HOME Co., Ltd.,AREA PLANNING Co., Ltd., TOKYO BIG HOUSE COMMUNITY Co., Ltd., Manshitsu Keiei Network Co., Ltd., ASK Co., Ltd.,SystemSoft Corporation, ARCHITECTS STUDIO JAPAN, INC.
Overseas
Apaman U.S.A., Corp., Global Capital Investments Holdings Limited,
BETTER HOUSE Property Consultants (Shanghai) Limited, APAMANSHOP (THAILAND) CO.,Ltd, fabbit Philippines Inc.,Hetai Real Estate Com.,Ltd.
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Main Business
Using the Platform Business and Technology with innovative services
centered on advanced technologies
Brokerage

Platform BusinessDirectly operated
Rentalstoresmanagementunits

Company
Company-rented
housing brokerage
housing

storescompanies(includes sub-leasing units)companies

Cloud services

Technology BusinessFranchisees

Rentalmanagement

Approx.
stores(No. of contracted franchisees)

Customers

Parking spaces

Property ownerrelationships

Franchisecompanies

Companies

Provision ofcompany housing

Tenants

Propertyowners

Brokerage/management

Approx.
thousand stores

thousand owners

OtherMetered parking

4,174 parking spaces
As of Mar. 31, 2022
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Our Services
Platform BusinessTechnology Business

Rental brokerage

IoT/ Big Data/ AI

Information about rental properties by 71 directly operated stores(including 3 in other countries)• Shared electronic keys
Issuance of one-time keys, management of key utilization history

Rental management• Use of AI for the automatic creation of suitable properties for acustomer

Total support for operating residential rental properties as the needsof tenants continues to diversifyRPA

Company-rented housing business

Automation of business processes by using robots

Intermediary services for company housing and leasing of entire
buildings for company housing

AR-TechPlatform Business• AOS
Store operation IT system• 24-hour emergency assistance service
Quick responses for lost keys, leaks, broken windows and otherproblems• APS
Property management ITsystem• Tenant insurance
Insurance for damage to a tenant’s possessions due to an accident
and for repairs caused by damage due to a random event involving
the property• Apamanshop.com
Portal site and app for rental
properties• Telecommunications business• Energy business• SKIPS
Explanations using IT, customer
services with no face-to-facecontact• Owner portal
A tool for communications withproperty owners• Introduction cloudManagement of the provision of
information about available
properties to customers• Store visitor cloud
Use of iPads for the analysis ofcustomer data
• Appraisal cloud
Uses big data to determine theproper rent for individual
properties

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Cautionary Statements
Amounts are rounded down to the nearest million yen and percentages are rounded off to the first decimal place. Accordingly, figures calculated using mathematicalformulas and the resulting figures stated in this material may not agree. The information presented in these materials, excluding past results but including
management strategies, plans, and forecasts, is forward-looking information, based on certain assumptions deemed reasonable in light of the information available atthe time these materials were prepared. Actual results may differ significantly from these forecasts as a result of a variety of factors going forward. The information
contained in these materials is subject to change without notice.
Every effort has been made to ensure the accuracy of the information contained herein, but APAMAN makes no guarantee regarding the accuracy, usefulness, ortimeliness of such information. APAMAN assumes no responsibility for losses incurred as a result of errors in the information contained herein.
These materials were prepared for the purpose of presenting the business overview of APAMAN and its affiliates, and are not intended as a solicitation or offer forinvestment. Investment decisions are entirely those of the investors.
This presentation uses numbers that are accurate at this time and makes no guarantee regarding numbers used in past presentations concerning results of operations.

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