Briefings on Financial Results
for the Third Quarter of the Fiscal Year Ending September 30, 2019 (FY2019)

July 30, 2019

APAMAN Co., Ltd.
JASDAQ: 8889
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0Topics

Sharing Economy

Platform

Cloud Technology

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Sharp increase in sales and earnings
Significant increase in the number of ”fabbit”
co-working facility members

Increase in sales and decrease in earnings
Impact of the Sapporo accident

Increase in sales and earnings
Growing use of the cloud and increasingly
positive web reaction

11. Benefits of Upfront Investments –Sharing Economy Business

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1. Co-working

Co-working
As of September 30, 2018

41 locations+2
As of June 30, 2019

43 locations
fabbit Global Gateway “ACROS Fukuoka”
Note: The number of locations includes sites that have been leased but not yet started operations. Also, the number of locations includes sites
operated directly and by franchisees or business partners.
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1. Co-working
Significant increase in the number of members

Number of members

Number of locations

Number of matches(Approx.)Number of events held

5,991

43

92,0002,421

Note: As of June 30, 2019.
- The number of members includes fabbit, Compass and companies where the APAMAN Group has made an investment.
- The number of locations includes sites where design or construction work is under way and also includes Workbar, which has received an investment from the APAMAN Group.
- The number of matches (introductions) is the cumulative number of matches between members. One match is when two people are introduced to one person who attended an
event or other gathering.
- The number of events is the cumulative number of events held by fabbit, Compass, Fukuoka Growth Next and companies where the APAMAN Group has made an investment. All
events are included regardless of their size.

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1. Co-working (New concept)

シェアリングエコノミー

A platform for global communications, fabbit Global Gateway has locations in
Otemachi (Tokyo), Osaka Honmachi and Fukuoka Tenjin and plans to open a coworking facility in San Francisco during 2019
“Otemachi”“ACROS Fukuoka”“Osaka Honmachi”“San Francisco”

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fabbit Global Gateway “Otemachi”

51. Co-working (Opening of fabbit Hawaii)

Note: fabbit occupies part of the building shown here.
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1. Co-working (Opening of fabbit Kobe Sannomiya)

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1. Co-working (Comparisons with competitors)
fabbitCompany A• Japan’s largest co-working company• Specializes in support for start-up companies andsmall companies that are reinventing themselves
under new ownership and management

Company B• Corporate value of about ¥5,000 billion• World’s largest co-working company• Used mainly by big companies

In the spirit of the Japanese government’s 2016 strategy for the revitalization of Japan, fabbit
provides support to start-up companies and small companies undergoing a transformation
under new ownership and management. Assistance for matching the needs of thesecompanies with the resources of large companies is another service of fabbit. With 21
locations in Japan and 22 in other countries, fabbit is Japan’s largest co-working company interms of the number of locations (note 1). There are approximately 6,000 members (note 2).
This infrastructure facilitates collaboration among these locations as well as the exchange of
information among members.

• World’s largest co-working business interms of the number of rooms• Rental office space is the core business▼ The fabbit Support Program
Support discussion
groupsDesign labs/
Creative labs/
Engineering labs

Largeconferences
Large
conferences
Meetings at different
levels (mentors,
incubation, etc.)

Monthly conferences

Media relations

Monozukuri(manufacturing)
pitch contest

Profile of CEO

After earning a Harvard MBA, Mr. Tanaka worked at Boston Consulting
Group and other organizations until his appointment as president of fabbit.
Translated to Japanese “Entering StartUpLand” by Jeffrey Bussgang.

Entrepreneur
networking
gatherings

Note 1: The number of locations includes sites where design or construction work is under way and also includes
Workbar, which has received an investment from the APAMAN Group.
Note 2: The number of members includes fabbit, Compass and companies where the APAMAN Group has made an investment.
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Open innovation
Financing/venture capital/
crowdfunding81. Co-working (Alliances and other collaboration)
Interaction with many prominent ecosystem players in Japan and overseas
Japan

Overseas• Supported the Entrepreneur Koshien event held by NICT and the Ministry ofInternal Affairs and Communications• Presentation by the fabbit CEO at the Science & Innovation Forum held by the
Cabinet Office, City of Fukuoka and others• Operating COMPASS Kokura, a private/public-sector co-working facility, with theCity of Kitakyushu• Operating fabbit Hachioji as part of facilities to support manufacturing innovationin Tokyo’s Tama district• Operating a start-up support fund with Nippon Venture Capital Co., Ltd.
• Equity and business alliance with Campfire, Japan’s largest crowdfunding site
• Business alliance concerning the sharing economy for human resources with
Workshift Solutions Co., Ltd., Japan’s largest crowdsourcing service platform foroutsourcing jobs worldwide• Business alliance concerning a worker with professional skill sharing service with
Pasona Inc.
• Conducted an open innovation program created with Creww Inc.
• Conducted a joint creation problem solving class at Kyushu University• Participation in the development of an entrepreneurship program by Kyushu
Institute of Technology• Started an open innovation service for large companies• The fabbit Fund made investments in Workshift Solutions Co., Ltd., Mamasan &Company, and Hatch Create Works Co., Ltd.
• Acquired shares of StreetAcademy, Inc.
• Holding of Independents Club Tokyo with Nippon Venture Capital Co., Ltd.
• Alliance with the Trusted B-to-B communication platform• Reinforced alliance between the fabbit joint business organization and NishiNippon City Bank
• Grand opening of fabbit Kobe Sannomiya• Participated as a mentor in the HR Tech accelerator program of WILL GROUP, INC.
• Held the Hachioji Business Plan Contest 2019 at fabbit Hachioji• Business alliance including jointly holding Slush (Tokyo), the world’s largest startup event

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• President of APAMAN named to Advisory Board of DocuSign (NASDAQ)• Fenox Venture Capital (Operator of Startup World Cup Kyushu Preliminary
Tournament)• Fenox Venture Capital (Judge, Startup World Cup Japan Preliminary
Tournament)• Acquired shares of Workbar (Boston)• Acquired shares of fabbit (the Philippines)• Speech by Wikipedia founder Jimmy Wales at fabbit National Conference 2017
• Speech by Twitter co-founder Biz Stone at fabbit National Conference 2017
• Started the fabbit Global Gateway (Otemachi, Osaka Honmachi, ACROS Fukuoka)
co-working space business to serve start-up companies with global aspirations• Speech by YouTube co-founder Chad Hurley at fabbit National Conference 2018
• Speech by Apple co-founder Stephen Wozniak at fabbit National Conference
2018• Speeches by Chad Hurley and Stephen Wozniak at Global Innovators in Startup
City Fukuoka• Participated in Hult Prize preliminary judging in the Tokyo area9

1. Co-working (Alliances and other collaboration)
Interaction with many prominent ecosystem players in Japan and overseas

Note: Photos were taken at the fabbit National Conference 2018, held in Tokyo on December 5, and Global Innovators in Startup City Fukuoka on December 6.
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101. Co-working (Selected locations)Global Gateway “ACROS Fukuoka”■Address: 1-1-1, Tenjin, Chuo-ku, Fukuoka(Directly connected to Tenjin underground
shopping mall, five-minute walk from Exit
No. 16 of Tenjin Station)■Opened: December 7, 2018
■Seats: 28 designated seats, including seats in 12
individual rooms
100 non-reserved seats, conference rooms■ Floor area: 455.34m2

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111. Co-working (Selected locations)fabbit Global Gateway “Otemachi”

fabbit Global Gateway “Osaka Honmachi”

fabbit Aoyama

fabbit Otemachi

fabbit Ginza

fabbit Hachioji

fabbit Sakae

fabbit Hiroshima Ekimae

COMPASS Kokura

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2. Parking

Parking
As of September 30, 2018

3,028 parking spaces+ 559
As of June 30, 2019

3,587 parking spaces
Note: The number of locations includes sites that have been leased but not yet started operations.
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3. Minpaku

Minpaku
As of September 30, 2018716 rooms+ 325
As of June 30, 2019

1,041 rooms
Notes: The number of locations includes sites that have been leased but not yet started operations.
Locations operated by our affiliates are included.
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3. Minpaku (Selected locations)Grandouce Sejour

Grandouce Shitennoji

Grandouce Dotonbori

Grandouce Nihombashi

Grandouce Namba-nishi

Grandouce Villa Tsuruhashi

Grandouce Hakata

Grandouce Buena VistaGrandouce Namba-higashi

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4. Share Cycle
ecobike is a bicycle sharing business that reflects the goals of Japan’s Bicycle Use
Promotion Act that was enacted in 2017. This business provides a highly useful service
that is part of the sharing economy. In addition, ecobike provides a data mining service
that uses information about the destinations of people who use ecobikes.
This business currently has agreements with 12 municipalities in Japan for theprovision of its Share Cycle service.
Going on more step, ecobike has started a Cycle Share Space service for sharing
bicycle parking spaces and a Share Cycle Residence service that allows residents of acondominium building to use a single pool of bicycles.

Share Cycle

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Cycle
Share Space

Share Cycle
Residence16

4. Share Cycle

Share Cycle
As of September 30, 2018841 bicycles+ 64
As of June 30, 2019905 bicycles
Bicycle sharing agreements have been signed with the following municipalities:
Fukutsu City, Iizuka City, Koga City, Munakata City, Nakagawa City, Taito-ku, Machida City, Yamato City, Chiba City, Isen-cho, Tokunoshima-cho, Amagi-cho
Note: The number of bicycles includes bicycles that have been contracted but are not yet in use and is the total of bicycles used for Share Cycle, Cycle Share Space and Share Cycle
Residence services.
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2. 3Q FY2019 Consolidated Results

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1. Overview of Consolidated Results (YoY comparison)(Millions of yen)

3Q FY2018

3Q FY2019

Remarks

Net sales

30,55635,483Gross profit

8,554

9,200

SG&A expenses

7,227

7,287

Operating profit

1,326

1,913

Ordinary profit

821

1,488

Profit attributable toowners of parent(498)

EBITDANote

2,178

Amount%+4,927+16.1%

+646

+7.6%

+59

+0.8%

Sharp increase in earnings in the
Sharing Economy Business+586+44.2%

Sharp increase in earnings in the
Sharing Economy Business+667+81.2%

67

Accident losses-1.0 billion yen
Insurance revenue +310 million yen

+566

-

2,784

Benefits of sharp increase in earnings
in the Sharing Economy Business+605+27.8%

Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill
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Sales increase in the three major
business segments: Sharing Economy,
Platform, and Cloud Technology

YoY change

Sharp increase in earnings in the
Sharing Economy Business19

2. Overview of Consolidated Balance Sheet (vs. end-FY2018)(Millions of yen)

Liabilities andnet assets

EndFY2018

3Q
FY201910,523

10,102-421

Accounts payabletrade

1,005

1,324

+318

+164

Short-term loans
payableNote

1,979

2,096

+116

1,064

+32

Other

7,538

6,681

-857 Accrued taxes: -983

4,268

4,756

+487

Non-current liabilities

20,47419,028-1,44520,904

20,197-706

Long-term loans
payable17,797

16,327-1,469Property, plant andequipment

4,693

4,613

-80

Long-term lease andguarantee deposited

1,750

1,678

-71

Intangible assets

9,207

8,970

-236

Other

926

1,022

+95

Goodwill

7,215

6,931

-283

Total liabilities

30,99829,131-1,867

Other intangible
assets

1,991

2,039

+47

Capital

7,983

7,983

-

Investments andother assets

7,003

6,613

-389

Net assets

4,546

4,432

-114

Total assets

35,54533,563-1,981

Total liabilities andnet assets

35,54533,563-1,981

AssetsEndFY2018

3Q
FY2019Current assets

14,641

13,366-1,275

Cash and deposits

7,773

5,813

-1,960Notes and accounts
receivable-trade

1,567

1,732

Operational
investment securities

1,031

Other
Non-current assets

Note: Includes current portion of long-term loans payable
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YoYchangeRemarks

Current liabilities

Short-term loans
receivable: +592

YoYchangeRemarks20

3. 3Q FY2019 Results by Segment

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1. Net Sales and Operating Profit by Segment (YoY comparison)
Net sales increased in all three segments(Millions of yen)

Sharing Economy

Platform

Cloud Technology

Other business

27,595

Left: 3Q FY2018

24,215Right: 3Q FY2019

Net
sales
5,564

950

6,201

2,342

1,649

Operatingprofit

837

395

(247)

(277)

1,589

730

911

217

(254)

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2. Sharing Economy Business (YoY comparison)(Millions of yen)

3Q FY2018

YoY change

3Q FY2019

Amount%Net sales

950

2,342

+1,391+146.5%

Operating profit

(254)

217

+472

‐

Co-working

Parking

Directly managed locations

3,028 parking spaces

41 →

→

parking spaces

Minpaku

Share Cycle

Contracted bicycles
716 rooms →rooms

841 bicycles →bicyclesNotes: The number of locations/bicycles includes sites/bicycles that have been leased but not yet started operations or not yet in use
Minpaku locations include rooms operated by our affiliates
Share cycle includes contracted bicycles at alliance partners
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3. Platform Business (YoY comparison)(Millions of yen)

3Q FY2018

YoY change

3Q FY2019

Amount%Net sales

24,21527,595+3,379+14.0%

Operating profit

1,649

1,589

-60

-3.7%

StoresProperty management

Number of directly managed
franchised stores

Number of units under management

107 stores →90,198 units →storesunits

Examples of included and associated services

Gross profit of included and associated services

1,477 million yen →million yen

Note: Directly managed stores are gradually converted to franchised stores

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4. Cloud Technology Business (YoY comparison)(Millions of yen)

3Q FY2018

Net sales
Operating profit

YoY change

3Q FY2019

Amount

%

5,564

6,201

+637

+11.5%

730

911

+181

+24.8%■ Cloud technology services
Introduction CLOUD

Appraisal CLOUD

Note: The sharing key is a product of a company in which APAMAN has made an investment
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Sharing key

25

5. Analysis of Net Sales and Operating Profit by Segment (YoY)(Millions of yen)

3Q FY2018
Net sales

Sharing Economy

3Q FY2019

profitGross profit GrossmarginNet sales

YoY change

profitGross profit GrossmarginNet sales

profitGross profit Grossmargin

950

117

12.3%

2,342

791

33.8%

+1,391+674+21.5%

Platform

24,215

7,447

30.8%

27,595

7,459

27.0%

+3,379+12-3.7%

Cloud Technology

5,564

1,427

25.7%

6,201

1,671

27.0%

+637

+244

+1.3%

Other business

837

273

32.7%

395

107

27.2%

-441

-166

-5.5%

(1,010)(711)-(1,050)

(830)

-

-40

-118

-

30,556

8,554

28.0%

35,483

9,200

25.9%

+4,927

+646

-2.1%

Adjustment (elimination or corporate)
Total
SG&A expenses (SG&A expenses ratio)
Operating profit (operating margin)

7,227

23.7%

7,287

20.5%

+59

-3.2%

1,326

4.3%

1,913

5.4%

+586

+1.1%

3Q FY2019

3Q FY2018

1,326

Sharing Economy+674

Operating profit

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Platform+12

Cloud Technology+244

Gross profit

Other business-166

Adjustment-118

SG&A Expenses
-59

SG&A
Expenses

1,913

Operating profit26

4. 3Q FY2019 Consolidated Forecast and Growth Strategy

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1. Core Strengths of the APAMAN Group

Business operations that use platforms andtechnologies

Sharing Economy

Platform

Cloud Technology

Data mining using big data that includes about
200,000 property owners, about 1 million tenants
and other information

A team of about 250 engineers and creators

Notes: Platform figures include the franchised operations
Cloud Technology engineers and creators are totals for all group companies
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2. Overview of Consolidated Forecast (YoY comparison)(Millions of yen)

YoY change

FY2019Forecast

FY2018Results

Amount%Net sales

41,68245,000+3,318108.0%

Operating profit(operating margin)

1,626

2,000

+374

(3.9%)(4.4%)(+0.5%)

123.5%

881

1,400

+519

160.0%(1,073)

(100)

+973

-

Ordinary profit

Profit attributable to ownersof parent

Note: Accident losses-1.0 billion yen
Insurance revenue +310 million yen

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5. Dividend Policy

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1. Dividend Policy
Distributing earnings to shareholders is one of our highest priorities. The basic policy is to
distribute earnings in a manner that takes into account results of operations and otherapplicable items. Although business operations are in the stage of making upfront
investments, we plan to pay dividends consistently in order to express appreciation toshareholders for their support.
■ Year-end dividend per share

(Yen)

12

12

FY2016FY20171414FY2018FY2019 (forecast)

10

FY2015

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2. Company Profile

Company name

APAMAN Co., Ltd.

President and CEO

Koji Omura

Capital

7,980 million yen (as of September 30, 2018)

Employees(consolidated)

1,208 (as of September 30, 2018)

Head office

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

Main business

Sharing Economy
Platform
Cloud Technology

Securities Code8889 (JASDAQ Standard)

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★

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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 mathematical formulas andthe resulting figures stated in this material may not agree. The information presented in these materials, excluding past results but including management strategies, plans, andforecasts, is forward-looking information, based on certain assumptions deemed reasonable in light of the information available at the 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, or timeliness ofsuch 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 for investment.
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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