FY2018 2Q FINANCIAL RESULTS

April 27, 2018

Apaman Co., Ltd
JASDAQ：8889

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1. 2Q of FY2018 Topics

1
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2
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Target：5,000rooms
10illion yen

Start from 15, June 2018

Target：100stores
10billion yen

Target：100,000 bicycles
10billion yen

20 domestic locations

Started inTokyo and Fukuoka(20 overseas invested companies)
As of the end of March 2018

As of the end of March 2018

＊Number of Coworking Facilities Includes Designed / Constructed Property. Two overseas 20 places are directly operated.

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Target：30,000cars
10billion yen

2,386cars
As of the end of March 20183

2Q FY2017

2Q FY2018

2Q FY2017

2Q FY2018

71,078戸

75,144戸

911

1,014

millions of yen

millions of yen

4
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Aru-AruCity

Aru-Aru City No.2

（Multistory parking lot）

Sold property held in Kitakyushu, Fukuoka prefecture to United Urban Investment
Corporation at ¥ 16.6 billion· Increase in dividend amount· Divided dividend + determined special dividend (intermediate)· Gain on sale Consolidated 130 million yen, non-consolidated 4,050 million yen· Income taxes and income tax adjustments (consolidated) ▲ 640 million yen· 2Q Rent Operating Income Impact ▲ Approximately 30 million yen
RIHGA Royal Hotel Kokura

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5

2．2Q of FY2018 Consolidated Results

6
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（Millions of yen）

FY20172Q

FY20182Q

Note

YoY change
AmountRate

Net Sales

20,224

20,771

+547

+2.7%

Gross profit

5,676

5,780

+104

+1.8%

SG&A Expenses

4,475

4,778

+302

+6.8%

▲198

▲16.5%▲319▲31.9%▲441

Due to the sale of real estate
Increase in income taxes andincome tax adjustments▲ 640 million yen

▲934

ー

1,655

Real estate sold for sale
Reduction in rental income▲ about 100 million yen▲396▲19.3%

Sharing economy Business rapid

Operatingincome

1,200

1,002

Ordinary income

1,002

682

Profit attributableto owners ofparentＥＢＩＴＤＡ

492
2,051＊EBITDA＝Ordinary income＋interest expenses + depreciation + amortization of goodwill

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expansion
Expansion of operating income
from upfront investment▲about 300 million yen

7（millions of yen）

FY2017end

FY20182Q

Change8,733

12,190+3,457

Cash and deposits

3,201

5,703

+2,502

Notes and accounts
receivable-trade

1,473

1,887

Operational
investment securities

551

AssetsCurrent assets

Other

Non-current assets

負債・純資産の部

FY2017end

FY20182Q

ChangeCurrent liabilities

9,393

11,187+1,793

Accounts payabletrade

1,464

1,854

+390

+413

Short-term loans
payable＊

2,915

2,187

▲728

820

+268

Other

5,013

7,145

+2,131

3,507

3,780

+272

Non-current
liabilities

28,23015,539▲12,691

34,912

19,893▲15,019

Long-term loans
payable23,596

13,159▲10,436 decrease due toLong-term lease andguarantee deposited

4,159

1,657

▲2,502 decrease due to

473

721

+247

Total liabilities

37,623

26,726▲10,897

Note

Increase in cash
and deposits

Substantial
decrease due toreal estate sales

Substantial

real estate sales
Substantial

Property, plant andequipment

16,625Intangible assets

11,687

8,457▲3,230Goodwill

9,769

6,508

▲3,260 decrease due to

Other intangible
assets

1,917

1,948

+30

Capital stock

7,983

7,983

±0

Investments andother assets

6,600

7,042

+442

Net assets

6,023

5,357

▲665

Total assets

43,64632,084▲11,563

Total liabilities andnet assets

43,64632,084▲11,563*Include current portion of long-term loans payable

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4,393▲12,232

Other
Substantial

real estate sales

Notereal estate sales8

（millions of yen）

40,00030,00020,00010,0000

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3． 2Q of FY2018 Results by Segment

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（millions of yen）

left：FY2017 2Q
right：FY2018 2Q

Sharing economy

Platform

15,727

Cloud technology

16,262

3,544
602

3,857

616

1,242

-154

1,015

732

-82

-131

1,276

206

140

Other

346

11
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（millions of yen）

FY2017
2Q

Net Sales
Operating Income（Operating Income Margin）

Start from June
（Invested in Grandouce Inc. ）＊Coworking 施設数は、設計・施工中物件を含む

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YoY change

FY20182Q

Amount

Rate

602

616

+13

+2.2%

140
(23.3%)

▲154
（-)

▲295

－
（－）

Started in Tokyo & Fukuoka

Direct opeRaten19shops,Partner 18shops

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

Invested in nokisaki Inc.

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（millions of yen）

FY2017
2Q

Net Sales
Operating Income（Operating Income Margin）

Number of directly managed stores

105shops →shops

AmountRate

15,727

16,262

+535

+3.4%

1,242
（7.9%）

1,276(7.9%)+34+2.7%

Managed Properties
71,078 units →YoY change

FY20182Q

Supplementary Services gross profit
units

911

→

13
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（millions of yen）

FY20172Q

FY20182Q

YoY change
AmountRate

Net Sales

3,544

3,857

+313

+8.8%

Operating Income（Operating Income Margin）

206(5.8%)

346(9.0%)+140+67.4%■ Example of Cloud technology
Introduction CLOUDStore visitor CLOUD

Appraisal CLOUD

14
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A robot automatically collets property
information and sends the data to thecore system

A lineup of 14 cloud services

Key units using 3G/LTE

Appraisal CLOUD

Introduction
CLOUD

Store visitor
CLOUD
など

＊上記は一例です

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15

（millions of yen）

FY2017 2Q
Net Sales

Gross Margin

602

244

Platform

15,727

Cloud technology

FY2018 2Q
Net Sales

売上総利益

40.6%

616

77

4,802

30.5%

16,262

3,544

650

18.4%

Other

1,015

386

Adjustment(elimination or corporate)-665
20,224

Sharing economy

TOTAL

Rate

YoY change
Rate

Net Sales

売上総利益

Rate

12.6%

+13

▲167

▲28.0％

5,065

31.1%

+535

+263

+0.6%

3,857

799

20.7%

+313

+148

+2.3%

38.1%

732

257

35.2%

▲282

▲129

▲2.9%

-408

-

-697

-419

--

▲32

▲10

ー

5,676

28.1%

20,771

5,780

27.8%

+547

＋104

▲0.2%

SG&A expenses（SG&A expenses rate）

4,475

22.1%

4,778

23.0%

+303

+0.8%

Operating income （Operating
margin

1,200

5.9%

1,002

4.8%

+198

▲1.1%

FY2017 2Q

1,200

Sharing economy▲167

Operating Income

Platform+263

Cloud technology+148

Gross Profit

Other

調整額

Adjustment

FY2018 2Q

▲129

▲11

▲303

1,002

S&G

Operating Income

16
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4. FY2018 Consolidated Forecast

17
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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

1,300

800

▲500

▲38.5%

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5．Growth strategy （Expansion of sharing business centered on technology）

19
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Sharing economy
Business development utilizing
Platform and Technology

Platform

Cloud technology

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

Approximately 200 engineers and creators* Platform figures above include FC member companies

20
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Sharing economy

June Start

Direct Operation 19stores,Partner 18stores

Coin parking for 2,337 cars

May Start

Target : 5,000 rooms

Target : 100stores indomestic and overseas

Target : 30,000 cars

Target :100,000 bicycles

Platform

Cloud technology

etc.
＊The above figures are target figures and are not numerical values that can be confirmed.
＊Coworking stores target number of 100 stores : 50 directly operated stores, and 50 managed stores.

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etc.

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Sharing economy

1 room average¥2 million

1 store average

1 car average

1 bike average¥200 million@year¥0.33 million¥0.1 million

@year

@year

@year

×
50 stores (directly managed)

×
30,000 cars

×100,000 bicycles

×5,000 rooms* The above figures are target figures to the last, not numerical values that can be confirmed.

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22

Grandouce Inc.

Inbound Tech Inc.

Okeiko Japan

Investment

Investment

Investment

Tsumug Inc.

Nokisaki Inc.

Pokekaru Kyushu
Alliance

OpenStret
Alliance

Including investment companies by group companies

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Investment

Workbar Inc.
Investment

Investment

Philippine marimo
Investment

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6．Growth strategy① Sharing economy （private lodging）

24
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Host

Operator

Media

Guest

（Provisional）

Stay at a room ora house
Provided by host

Providerooms or houses（Provisional）

APAMAN Group
Business with
About 200,000 owners
Group Company

25
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Field survey

DesignFacility operation

multilingual support

Attracting customer

Check-inHigh quality cleaning

Emergency call

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※Investment Company＊画像はイメージです

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27

＊画像はイメージです

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ex. Kagoshima Prefecture Amami Archipelago Schedule of cooperation with Isen-town (Kodakara Mountain / Birthrate Japan / Bullfighting / World Heritage / Whale Watching / 300 year old banyan/ Sea Turtle)ex. Hiroshima Prefecture Miyajima Okeiko Japan cooperation schedule (kimono dress-up, tea ceremony, cooking) * Investment company
ex. Established Pokekaru Kyusyu with Pokekaru Inc.

300 year old banyan

Whale watching＊画像はイメージです

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Bullfighting29Collaboration content
Sightseeing
ecobike
Private lodging

Human resource development
fabbitMatch making Support

Junoall30
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7．Growth strategy② Sharing economy（Coworking）

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· 20 domestic stores & Approximately 3,000members(company)· Fulfilling start-up support program· Excellent advisory board· Unlimited information supply during events＊fabbit 施設数は、設計・施工中物件を含む

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Support Programs

Accelerators and mentors with great track records
fabbit Advisory Board（１）Establishment of support forum（２）Hosting monthly informational conferences（３）Stepwise MTG by "Mentors" "Community Accelerators“"Incubation Managers“（４）Entrepreneur exchange meetings · Networking parties（５）Producing pitch contests（６）Information dissemination about financial institutions（７）Introducing VC · Cloud Funding（８）Design Lab・Creative Lab・Engineer Lab（９）Annual Conference

Annual Conference

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 from
Harvard 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-Japan Council.

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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Otemachi（Tokyo）

Aoyama（Tokyo）

Akihabara（Tokyo）

Ginza（Tokyo）

Jingumae（Tokyo）

Osaka Honmachi（Osaka）

Shin Osaka（Osaka）

Osaka Fukushima（Osaka）＊The above figures are target figures and are not numerical values that can be confirmed.
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Kyobashi（Tokyo）

Nihonbashi（Tokyo）

Hachioji（Tokyo）

Sakae（Nagoya）

Hiroshima（Hiroshima）

Kitakyushu（Fukuoka）

Hakata（Fukuoka）

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（DIMYOU elementary school／Fukuoka）
Public-private partnership type facilities

八王子（Hachioji, Tokyo）

Tokyo Metropolitan Government Tama MONODUKURI TypeFoundation Support Facility Development Assistance Project（Kitakyusyu, Fukuoka）
Public-private partnership type facilities

Will open in June, 2018

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35

8．Growth strategy③ Sharing economy（Share Cycle）

36
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Shopping, commuting, school attendance,sightseeing promotion, health promotion etc.

37
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38
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9．Growth Strategy④ Sharing economy（Parking）

39
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（Time lent）（Time & Day lent）（As of 31 Mar., 2018）（As of 31 Mar., 2018）＊Images are sample images.
＊The number of coin parking lot car spaces operated by APAMAN Group. The number of car spaces registered.

40
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41
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10．CSR

42
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People are vital elements of society and society is vital to the existenceof companies.
This is why we believe a company must be essential for both people
and society by making contributions to human and social progress.

Earnings are not the only standard we use for reaching decisions. We
firmly believe that business activities themselves must produce
benefits for society.
We also believe that companies should return part of their earnings
and resources to society. Earnings are one key to the success of acompany. But making profits and playing a role in social progress go
hand in hand. This thinking explains why we regard the use of someearnings for CSR as an obligation of all companies.

43
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Aiming at marriage of 10,000 pairs a year

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

44
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Company name

Apaman Co., Ltd.

Established

October 20, 1999

President andCEOKoji Omura

Capital

7,980 million yen (as of March 31, 2018)

Employees(Consolidated)

1,173 (as of March 31, 2018)

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)★

45
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Notes on this material
本資料の表示数値はAmountに関しては切り捨て、パーセンテージ表示については四捨五入等、端数計算により行ってい
The information presented in these materials, excluding past results but including management strategies,
るため、算式に基づき算定される数値とその結果として記載される数値は必ずしも一致しない場合があります。
plans, and forecasts, is forward-looking information, based on certain assumptions deemed reasonable in
本資料に記載されている経営戦略、計画や見通し等は、過去の事実を除いて将来の予測であり、現時点において入手可
能な情報や合理的判断の根拠とする一定の前提条件に基づいており、実際の業績等は今後の様々な要因によって、これlight of the information available at the time these materials were prepared. Actual results may differ
らの見通しとは大きく変動する場合があります。
significantly from these forecasts as a result of a variety of factors going forward.
本資料に記載された内容は、事前の通知なくして変更されることがありますので、あらかじめご承知おきください。

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
また、掲載内容については、細心の注意を払っておりますが、掲載された情報の内容が正確であるかどうか、有用であ
regarding the accuracy, usefulness, or timeliness of such information. The Company assumes no
るかどうか、更新時期が適切であるか等について当社は一切保証するものではありません。また、掲載された情報の誤responsibility for losses incurred as a result of errors in the information contained herein.
り等によって生じた損害等に関しましては、当社は一切責任を負うものではありませんのでご了承ください。
These materials were prepared for the purpose of presenting an overview of the business of Apaman Co.,
本資料は、ＡＰＡＭＡＮ株式会社および当社関係会社の事業の概要へのご理解をいただくために作成されたものであり、Ltd., and its affiliates, and are not intended as a solicitation or offer for investment. Investment decisions
投資の勧誘または斡旋を行うものではありません。投資に関するご判断はお客様自身の責任で行われますようお願い申are entirely those of the investor.
し上げます。

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