Briefings on Financial Results for the First Quarter ofthe Fiscal Year Ending September 30, 2020 (FY2020)

January 31, 2020

APAMAN Co., Ltd.
JASDAQ: 8889
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0Topics by Segment

Sharing economy

Platform

Sales and earnings increased froma year earlier

Significant increase in the number of "fabbit"
co-working facility members

Sales and earnings decreased froma year earlier
Following the change in the business model

Cloud technology

Sales increased and earnings
decreased from a year earlier

More support for franchised companies

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11. Benefits of Upfront Investments –Sharing Economy Business

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1. Co-working

Co-working
As of September 30, 201945 locations
As of December 31, 201945 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 companies where APAMAN has made an investment.
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1. Co-working
Significant increase in the number of members

Number of members

Number of locations

Number of matches

Number of events held7,202

45

108,964

2,745

Note: As of December 31, 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 anevent 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 (Topics)

シェアリングエコノミー

fabbit Global Gateway “San Francisco” opened on January 2020

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51. Co-working (Public sector collaboration)
Public-private joint facilities and projects receiving local government subsidies

April 2017 to March 2019
Public-private joint facility"Fukuoka Growth Next"

Operating since July 2019
Innovation hub promotion system"fabbit Kobe Sannomiya"

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Operating since December 2017
Tokyo Tama manufacturing (monozukuri) support projectsubsidized facility"fabbit Hachioji"

Operating since June 2018
Public-private joint facility"COMPASS Kokura"

Started operating in October 2019
A project supported by the U.S. Economic Development Administrationand the Hawaii Technology Development Corporation"fabbit Hawaii"

61. Co-working (Many valuable services)
Major support programs provided by fabbit♦ Business matching service using AI♦ Support for the growth of start-ups and other companies♦ Face-to-face interaction by holding seminars and other events♦ Support for international business♦ Provision of co-working and rental office space

Note: Includes support programs under development
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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, 2018 and Global Innovators in Startup City Fukuoka on December 6, 2018.
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2. ParkingParking
As of September 30, 2019

3,589 parking spaces+ 11
As of December 31, 2019

3,600 parking spaces
Note: The number of locations includes sites that have been leased but not yet started operations.
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3. Share Cycle
The ecobike business currently has agreements with 12 municipalities in Japan for the provision of its ShareCycle service.
Going on more step, ecobike has started a Share Cycle Residence service that allows residents of a condominium
building to use a single pool of bicycles. ecobike had a total of 927 bicycles at the end of December 2019 in theShare Cycle, Share Cycle Residence and Cycle Share Space services.

Share Cycle

Share Cycle Residence

Bicycle sharing agreements have been signed with the following municipalities:
Fukutsu City, Iizuka City, Koga City, Munakata City, Nakagawa City, Taito-ku, Yamato City, Chiba City, Saitama City, Isen-cho, Tokunoshima-cho, Amagi-choNote: The number of bicycles includes bicycles that have been contracted but are not yet in use .
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2. 1Q FY2020 Consolidated Results

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

1Q FY2019

Remarks(Major factors)

1Q FY2020

Net sales

11,290

10,630Gross profit

2,647

SG&A expenses
Operating profit(operating margin)
Ordinary profit
Profit attributable toowners of parent
EBITDANoteAmount%Lower store sales (Platform)

-660

-5.8%

2,331

Same as the above-315-11.9%

2,470

2,298

Decrease in number of stores

-172

-7.0%

177

33

Same as the above-143-81.2%(1.6%)(0.3%)(2)(198)

Share of loss of entities accounted forusing equity method -70 million yen

-195

-

(1,208)(325)

Loss on retirement of non-current
assets, Impairment loss+882-

416

237

-179

-42.9%

Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill
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YoY change122. Overview of Consolidated Balance Sheet (vs. end-FY2019)(Millions of yen)

Liabilities andnet assets

EndFY2019

1Q
FY2020Current liabilities

10,223

10,040-183

Accounts payabletrade

909

980

+71+123

Short-term loans
payableNote

2,053

2,268

+215

1,458

+352

Other

7,260

6,791

-469

4,388

3,993

-394

Non-current liabilities

18,844

18,234-609

18,807

18,496-310

Long-term loans
payable16,076

15,564-511

Property, plant andequipment

4,299

4,242

-57

Long-term lease andguarantee deposited

1,642

1,617-25

Intangible assets

8,667

8,484

-183

Other

1,125

1,052-72

Goodwill

6,741

6,567-173

Total liabilities

29,06828,274-793

Other intangible
assets

1,925

1,916-9

Capital

7,983

7,983

-

Investments andother assets

5,839

5,769

-70

Net assets

4,861

4,099-761

Total assets

33,92932,374-1,555

Total liabilities andnet assets

33,92932,374-1,555

AssetsEndFY2019

1Q
FY2020Current assets

15,122

13,878-1,244

Cash and deposits

7,959

6,633

-1,325

Notes and accounts
receivable-trade

1,669

1,792

Operationalinvestment securities

1,105

Other
Non-current assets

YoYchange

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

Short-term loans
receivable: -358

YoYchange

Remarks

Accounts payableother:
-327

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3. 1Q FY2020 Results by Segment

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1. Net Sales and Operating Profit by Segment (YoY comparison)(Millions of yen)

Sharing economy

Platform
9,024

Cloud technology

Other business
Left: 1Q FY2019

8,236

Right: 1Q FY2020Netsales
1,945
5481,963587

332

Operatingprofit

135

122(107)

(108)

323
159

215

(30)
(188)

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

1Q FY2019

YoY change

1Q FY2020

Amount%Net sales

548

587

+38

+7.0%

Operating profit

(188)

(30)

+158

-

Directly managed locations
45 →3,589 parking spaces→

parking spaces

Notes: The number of locations/bicycles includes sites/bicycles that have been leased but not yet started operations or not yet in use
Share cycle includes contracted bicycles at alliance partners
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Contracted bicycles
905 bicycles →bicycles

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3. Platform Business (YoY comparison)(Millions of yen)

1Q FY2019

Net sales
Operating profit

Number of directly managed
franchised stores
92 stores →stores

YoY change

1Q FY2020

Amount%

9,024

8,236

-787

-8.7%

332

159

-173

-52.1%

Number of units under management
87,970 units →units

Gross profit of included and associated services

508 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)

1Q FY2019

Net sales
Operating profit

YoY change

1Q FY2020

Amount%1,945

1,963+18+0.9%

323215-108-33.4%■ Cloud technology services
Introduction CLOUD

Appraisal CLOUD

Sharing key

Note: The sharing key is a product of a company in which APAMAN has made an investment.
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5. Analysis of Net Sales and Operating Profit by Segment (YoY)(Millions of yen)

1Q FY2019
profitGross profit Grossmargin

Net salesSharing economy

1Q FY2020

YoY change

profitGross profit GrossmarginNet sales

Net sales

profitGross profit Grossmargin548

295.3%

587

142

24.3%

+38+113+19.0%

Platform

9,024

2,291

25.4%

8,236

1,895

23.0%

-787

-395

-2.4%

Cloud technology

1,945

567

29.2%

1,963

466

23.8%

+18-100-5.4%

Other business

135

24

18.0%

122

42

34.9%

-12+1816.9%

Adjustment (elimination or corporate)

(363)

(264)

-(279)

(216)

-+83

+48

-

11,290

2,647

23.5%

10,630

2,331

21.9%

-660-315-1.5%

Total
SG&A expenses (SG&A expenses ratio)
Operating profit (operating margin)

2,470

21.9%

2,298

21.6%

-172

-0.3%

177

1.6%

33

0.3%

-143

-1.3%

1Q FY2019

177

1Q FY2020
Sharing economy+113

Operating profit

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Platform-395

Cloud technology-100

Gross profit

Other business+18

Adjustment+48

SG&A expenses
+172
SG&A
expenses

33
Operating profit

19

4. FY2020 Consolidated Forecast

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1. Core Strengths of the APAMAN GroupBusiness operations that use platforms andtechnologies

Sharing economy

Data that includes about 200,000 property owners,
about 1 million tenants

A team of about 250 engineers and creators

Platform

Cloud technology

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

FY2020
Forecast

FY2019Results

Amount%Net sales

45,93445,000-934-2.0%

Operating profit(operating margin)

2,055

2,000(4.4%)-55(-0.1%)-2.7%

Ordinary profit729

1,400+670+91.9%

Profit attributable to ownersof parent

272

450+177+65.1%

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(4.5%)

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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 amanner that takes into account results of operations and other applicable items. October 20, 2019 was the 20thanniversary of the founding of APAMAN. To express our appreciation to shareholders for their support, acommemorative dividend of 10 yen per share will be paid in addition to the year-end ordinary dividend.
The dividend forecast for the fiscal year ending in September 2020 is 20 yen per share. This forecast is the result ofa thorough examination of issues involving the dividend that took into account the FY2018 special dividend andFY2019 commemorative dividend, cash flows, and other applicable factors.

■ Year-end dividend per share(Yen)1212

12+ Special benefits+ Special benefits

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2424Special
dividend

Commemorative
dividend¥10¥103420

524

2. Company ProfileCompany
name

APAMAN Co., Ltd.

President andCEOKoji Omura

Capital

7,980 million yen (as of September 30, 2019)

Employees(consolidated)

1,047 (as of September 30, 2019)

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 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 at the time thesematerials were prepared. Actual results may differ significantly from these forecasts as a result of a variety of factors going forward. The information contained in thesematerials 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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