FY2018 1Q FINANCIAL RESULTS

8 February, 2018

Apaman Co., Ltd.
JASDAQ：8889

1.

Topics2.

1Q of FY2018 Consolidated Results

3.

1Q of FY2018 Results by Segment

4.

Business StRategy

5.

FY2018 Consolidated Forecast

6.

CSR

7.

Company Profile

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■ Results of OpeRatens（（9,416 → 9,756）■ Business Topics） （YoY,millions of yen）

（242 → 173）（134 → 43）（（61 → 69））

Sharing economy

Sharing economy

Sharing economy

Start from June

Start from May

Direct opeRaten19shops,Partner 18shops（Invested in Grandouce Inc. ）（Business partnership with OpenStreet Corp）（Buyout of Mario Philippines／Invest in Workbar inU.S.A.）※As of February 8, 2018: Number of domestic stores includes those under design and construction.

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（Millions of yen）

FY2017
１Ｑ

YoY change

FY2018
１Ｑ

AmountRate

Net Sales

9,416

9,756+340+3.6%

Gross profit

2,430

2,536+106+4.4%

Operating income

242173▲69▲28.6%

Ordinary income

13443▲91▲67.7%

Profit attributable toowners of parent

6169＋8＋13.9%

ＥＢＩＴＤＡ658585▲73▲11.1%■The reason of increase for Net sales and Gross profit → Increase for number of units under management/Increase for sales ofprimary products and services■The reason of decrease for Operating income and Ordinary income → Promote work-style reforms and prior investment＊EBITDA＝Ordinary income＋interest expenses + depreciation + amortization of goodwill

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（Millions of yen）

PersonnelPeosonnel
expenses+66

expense1,221

1,155

Other+110

1,032

FY2017

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1Q

Other
1,142

FY2018
1Q6

（Millions of yen）

FY2017end

FY2018
1Q endchange

8,733

8,663

▲70Cash and deposits

3,201

2,400

▲800

Notes and accounts
receivable-trade

1,473

1,465581

Liabilities and netassets

FY2017end

FY2018
1Q endchange9,393

9,936+543

Accounts payable-trade

1,464

1,892+428▲8

Short-term loans payable＊

2,915

3,242+326591＋10

Other

5,013

4,801

▲2113,477

4,205+727

28,23027,706▲524Non-current assets

34,912

34,856▲56

Long-term loans payable

23,59623,018▲578

Property, plant andequipment

16,625

16,930+305

Long-term lease andguarantee deposited

4,159

4,129

▲30Intangible assets

11,687

11,457▲229

Other473

558+84

Goodwill

9,769

9,480

▲289

Total liabilities

37,62337,642+18

Other intangible assets

1,917

1,977+59

Capital stock

7,983

7,983

±0

Investments and other assets

6,600

6,467

▲132

Net assets

6,023

5,877

▲146

Total assets

43,64643,519▲127

Toltal liabilities andnet assets

43,64643,519▲127Assets
Current assets

Securities
OtherCurrent liabilities

Non-current liabilities*Include current portion of long-term loans payable

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Brocerage

Property Management

Principal Investment andFund Management Business

Other Businesses

Sales of primary
products and services

Property Management

Principal Investment andFund Management BusinessfabbitDirectly managed

Parking Lotshopetc.

Technology for FC

Sharing economy

Platform

Cloud technology

Other Businesses

private lodging

Sales of primaryproducts and services

Technology for FC

Principal Investment andFund Management Businessecobikefabbit

Directly managed
shopetc.

Property Management

Parking Lot

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（Millions of yen）

7,226

7,478

Left：FY2017 1Ｑ
right：FY2018 1Ｑ

1,644
365

501

293

Sharing economy

Platform

Cloud technology

251131487

その他

207

176
119-71

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1,847-67-44

10

（Millions of yen）

FY2017 1Q

FY2018 1Q

YoYNet Sales

Gross profit

Gross profit
marginNet Sales

Gross profit

Gross profit
marginNet SalesGross profit

Gross profit
margin365

183

50.1%

293

4415.1%▲72▲138▲34.9%

Platform

7,226

1,912

26.4%

7,478

2,053

27.4%

＋252+141+1.0%

Cloud technology

1,644

340

20.7%

1,847

466

25.2%

+202+125+4.5%

Other Businesses

501

171

34.2%

487

174

35.8%

▲14+2+1.5%

Adjustment(elimination or corpoRate)

-321

-178

--349

-202

-

▲28

▲24-

9,416

2,430

25.8%

9,756

2,536

26.0%

+340

+106

+0.2%

Sharing economy

合計
SG&A expenses（SG&A expensesRate）

2,187

23.2%

2,363

24.2%

+176+1.0%

Operating income （Operating margin）

242

2.6%

173

1.7%

▲69

▲0.8%

▲24▲176

Other

Adjustment(eliminationor corpoRate)

SG&A

+125

FY2017 １Ｑ

242+2

Cloud technology

Sharing economy▲138

Businesses+141

FY2018 １Ｑ

expenses

173

SG&A

Operating income

Platform

Operating income

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粗利

expenses11

（Millions of yen）

FY2017
１Ｑ

Net Sales
Operating income（Operating income margin）

Start from June
（Invested in Grandouce Inc. ）Copyright © APAMAN Co.,Ltd. All rights reserved.

YoY

FY2018１Ｑ

AmountRate

365

293

▲72▲19.7%131(35.8％)▲71（-)▲202－（－）

Start from May

Direct opeRaten19shops,Partner 18shops

Coin parking for 2,337cars（Business partnership with OpenStreet Co.,Ltd ）（Buyout of Mario Philippines／
Invest in Workbar inU.S.A.）

Invested in nokisaki Inc.

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（Millions of yen）

FY2017１Ｑ

YoY

FY2018
１Ｑ

AmountRate

Net Sales

7,226

7,478+252+3.4%

Operating income

207(2.6％)

251(3.2％)+43+20.8%

Total number of units
under management

70,51673,470+2,954ー

Net Sales

8786

▲１ー

Operatingincome

3.4

5.1＋1.7ーNO. of contracted franchises

1,1491,144▲5ー

Directly managed shops

104

107+3ーNet Sales

10.0

10.3+0.3

ーOperatingincome

0.4

0.0

▲0.4ー

（Operating income margin）

Per 1,000 units

Per directlymanaged shop(Japan)

Note: Net sales and operating income per shop are calculated based on the average number of directly managed shops (Japan) opeRated during the period.

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（Millions of yen）

FY2017１Ｑ

FY2018１Ｑ

YoY
AmountRate

Net Sales

1,644

1,847+202+12.3%

Operating income

119(7.2％)

207(11.2％)+88+74.3%（Operating income margin）■ Example of Cloud technology
Introduction CLOUD

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Store visitor CLOUD

Appraisal CLOUD

14

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Sharing economy

Cloud technology

Business development utilizing Platformand Technology

Approximately 200 engineers and creators

Platform
About 200,000 owners
About one million residents
1,144 stores

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■Global market(billions of $)

350
300

250
200

Start from May

Direct opeRaten19shops,Partner 18shops

Coin parking for 2,337cars$335
billion15010050

Start from June

$15billion

02013

2025

* Source: Ministry of Economy, Trade and Industry "Information Communication White Paper Heisei 27th Edition"

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Start from June

Special zone forprivate lodging
Osaka, Fukuoka ･･･

rules onthe practiceof renting out
private lodging
15

publiclodging house
Refurbish existing houses
or build new houses

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Start from May

June 2018

CO2reduction

Congestion
relaxationin urbanareas

Illegalparking
reduction

Expansionof assetvalueJapan:18shops ;Overseas 1 shop

Partner 18shops in U.S.A.

※As of February 8, 2018: Number of domestic stores includes those under design and construction.
We invested in Workbar

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19Support Programs（１）Establishment of support forum（２）Hosting a monthly conference（３）Stepwise MTG by "Mentor" "Community Accelerator“"Incubation Manager“（４）Entrepreneur exchange meeting · Networking party（５）Manufacturing pitch contest（６）Information dissemination about financial institutions（７）Introducing VC · Cloud Funding（８）Design Lab・Creative Lab・Engineer Lab（９）Interaction with Media company（10）Big Conference

Big Conference

Accelerators and mentors with great track records
fabbit advisory board
Keith Krach
DocuSign, Inc.
Chairman of Board of Directors
Mr. Krach’s accomplishments are numerous, from obtaining an
MBA from Harvard University to being named the youngest VP in
the history of GM, he was also the former CEO of Ariba. Mr.
Krach has been named the National Entrepreneur of the year by
Ernst & Young, and has won the Technology Pioneer Award at
the World Economic Forum, etc.

Daniel Fujii
Trust Capital Co., Ltd.
President & CEO
After acquiring both a bachelor’s and master’s degree fromHarvard University, Mr. Fujii served as Blackstone’s Managing
Director and President. He serves as a board director of theHarvard Club of Japan, an officer of the Philips Andover Asia
Council, and is on the Board of Councilors for the US-JapanCouncil.

Michimasa Naka
Boardwalk Capital Inc.
President & CEO

After graduating from Keio University with a Science andEngineering degree, he also obtained a Master’s in Engineering
degree in 1989. He served as the Deputy President and Head of
the Global Investor Sales for Citigroup Japan. He is a guest lecturer
in Hitotsubashi and Keio Universities.

President, fabbit Co., Ltd.
Yasunari Tanaka
After acquiring an MBA from Harvard Business School, Mr. Tanaka
was in charge of trading and investment at Boston Consulting Groupamongst other companies before becoming the Managing Director andPresident of fabbit.

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※Images are sample images or under construction.
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A lineup of 14 cloud services

Key units using 3G/LTE

A robot automatically collets property
information and sends the data to thecore systemAppraisal CLOUD

Introduction
CLOUDStore visitor
CLOUD

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（millions of yen）

FY2017
Results

FY2018
forecast

YoY
AmountRate

Net Sales

40,26240,500

+238

+0.6%

Gross profit

11,806

11,900+94+0.8%

Operating income

2,556(6.4%)

2,600(6.4%)+44+1.7%(±0%)

Ordinary income

2,017

2,100+83+4.1%

Profit attributable toowners of parent

1,300800▲500▲38.5%＊EBITDA＝Ordinary income＋interest expenses + depreciation + amortization of goodwill

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People are vital elements of society and society is vital to the existence of companies.
This is why we believe a company must be essential for both people and society bymaking contributions to human and social progress.
Earnings are not the only standard we use for reaching decisions. We firmly believethat business activities themselves must produce benefits for society.
We also believe that companies should return part of their earnings and resources tosociety. Earnings are one key to the success of a company. But making profits andplaying a role in social progress go hand in hand. This thinking explains why weregard the use of some earnings for CSR as an obligation of all companies.

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Aiming at marriage of 10,000 pairs a year

Our CEO is a member of the Cabinet Office 'StrategyCouncil on Overcoming Declining Birthrate'＊Source: NHK News Web January 22 "Strategy for Overcoming Declining Birth Strategy Conference
Recommendations in June"

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Company name

Apaman Co., Ltd.

Established

October 20, 1999

President and CEO

Koji Omura

Capital

7,980 million yen (as of December 31, 2017)

Employees(Consolidated)

1,107 (as of December 31, 2017)

Head office

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

Group companies

Apaman Network Co., Ltd.
Apaman Property Co., Ltd.
Apamanshop Leasing Co., Ltd.
Total of 24companies (Japan:20;Overseas:4)

事業内容

Sharing economy
Platform
Cloud technology

証券コード8889（JASDAQ スタンダード）

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テクノロジーを核とした革新的なサービスを提供する

グローバル企業へ斡旋事業・賃貸管理事業拡大（プラットフォームの構築・拡大）
 FC店舗数1,000店舗達成
 直営店舗運営開始
 管理戸数増加
不動産賃貸仲介業のIT化、業界の質的向上を目指して設立

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Notes on this material

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 at the time these materials wereprepared. Actual results may differ significantly from these forecasts as a result of a variety offactors 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 the Company
makes no guarantee regarding the accuracy, usefulness, or timeliness of such information. TheCompany 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 an overview of the business of
Apaman Co., Ltd., and its affiliates, and are not intended as a solicitation or offer forinvestment. Investment decisions are entirely those of the investor.

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