Briefings on Financial Results for the Third Quarter ofthe Fiscal Year Ending September 30, 2021 (FY2021)

August 2, 2021

APAMAN Co., Ltd.
JASDAQ: 8889
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03Q FY2021 Consolidated Results

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1

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

3Q FY2020

Net sales

33,020Remarks(Major factors)

3Q FY2021

YoY change

33,699

Increase in number of units undermanagement+679

Increase in number of units undermanagement
Lower revaluation on operationalinvestment securities (FY2020)+699

Gross profit

7,025

7,724

SG&A expenses

6,568

6,786+218

Operating profit

457

938

Lower revaluation on operational
investment securities (FY2020)
Termination of royalty reduction, etc.

Ordinary profit

(154)

672

Increase in share of profit of entities
accounted for using equity method+826

Profit attributable toowners of parent

(900)

83

Gain on the change in ownership+983

EBITDANote

1,152

1,989

Increase in ordinary profit

+837

+480

Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill

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2

Overview of Consolidated Balance Sheet (vs. end-FY2020)(Millions of yen)

Liabilities andnet assets

End-FY2020

Current liabilities

9,190

10,034+843

Accounts payable-trade

1,023

1,116+92+50

Short-term borrowings Note

1,942

2,339

+396

1,190

-15

Other

6,224

6,577+353

4,311

4,971+659

Non-current liabilities

20,621

19,008-1,612

19,43019,755+324

Long-term borrowings

17,787

16,278-1,508

Long-term lease andguarantee deposited

1,757

1,657-99

Other

1,076

1,072

-4

Total liabilities

29,811

29,042-769

Assets

End-FY2020

Current assets

14,824

13,345-1,479

7,561

5,387

-2,174

1,746

1,797

1,205

Cash and deposits
Notes and accounts
receivable-trade
Operational investment
securities
Other

Non-current assets

3Q FY2021

Change3Q FY2021

ChangeProperty, plant andequipment

3,733

3,609

-124

Intangible assets

9,022

9,049

+26

Goodwill

6,918

6,483

-434

Other

2,103

2,565+461

Capital

7,983

7,983

-

Investments and otherassets

6,674

7,096+422Net assets

4,443

4,058-384

Total assets

34,255

33,101-1,153

Total liabilities and net
assets34,255

33,101-1,153

Note: Includes current portion of long-term borrowings

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3

Consolidated Results of Operations

3-year Trend(Billions of yen)

Net sales

Gross profit

Operating profit

9.20

35.48
33.02

33.69
7.72

1.91

7.02

0.93

0.45

3Q FY2019

3Q FY2020

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3Q FY2021

3Q FY2019

3Q FY2020

3Q FY2021

3Q FY2019

3Q FY2020

3Q FY2021

4

Consolidated Results of Operations

3-year Trend(Billions of yen)

SG&A expenses
3Q
19/9
FY20193Q

3Q
20/9
FY20203Q

3Q
21/9
FY2021
3Q

Profit attributable toowners of parent
19/9
2Q(7.28)

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21/9
2Q

0.08

0.06
3Q
FY2019(6.56)

20/9
2Q

3Q
FY20203Q
FY2021(6.78)(0.90)

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Consolidated Results of Operations

Composition of Gross Profit(Billions of yen)

Constant-revenue gross profit
Property management/sub-leasing, cloud/franchiseservices, utilization fees for co-working locations(fabbit) and others

Higher gross profit due to an increase in the numberof units under management
Lower gross profit due to higher purchase price of theelectric retailing business
5.39

5.33

Other gross profit
Brokerage fees, consulting fees, operational
investment securities and others

Valuation loss on of operational investment
securities (FY2020)
Online support at directly operated stores

5.46

3.80

2.25
1.69

3Q FY2019

3Q FY2020

3Q FY2021

3Q FY2019

3Q FY2020

3Q FY2021

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 eliminatedin the consolidated financial statements.
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Consolidated Results of Operations

Composition of Gross Profit

Share of constant-revenue gross profit in total gross profit

 Constant-revenue gross profit Share of constant-revenue grossprofit in total gross profit(Billions of yen)

10.0
9.0

8.70

9.20

76%

80%

71%

8.55

70%

7.72

8.0

60%

7.02
7.0
6.0

59%
53%

50%

52%

5.0

40%

4.0

30%

3.0
2.0

4.62

5.39
4.44

5.33

5.4620%10%

1.00.00%
3Q FY2017

3Q FY2018

3Q FY2019

3Q FY2020

3Q FY2021

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 the consolidated financial statements.
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Business Domain (Constant revenue, Others)

Constant revenue business / Other business
Segment

Platform

Main business

Constant
revenue

Rental management and subleasing○

Management fee

Rental brokerage

×Brokerage fee

Cloud service○Usage fee

Franchise service○

Royalty fee

Co-working, etc.

○

Usage fee

Metered parking○Parking fee

Primary income source

TechnologyOthers

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8Size of Customer Base
Segment

Main business

Customers/Market size

Rental management andsub-leasing

90,405 units (up 1,992 units YoY)

Directly operated stores

69 stores

Platform

Cloud service
Technology
Franchise service

OthersMetered parking(down 8 stores YoY)

Stores

1,043 stores

Property
management/Subleasing

Approx.
1,030,000 units

Property ownerrelationships

Approx. 200,000
owners4,321 parking spaces nationwide(up 410 parking spaces YoY)

Notes: Rental management and sub-leasing, directly operated stores and metered parking businesses include directly operated stores and cloud service, and franchiseservice include FCs.
The number of property management/sub-leasing units (approx. 1,030,000 units) and the number of property owner relationships (approx. 200,000 owners)
are as of September 2020 using Apaman Network data.
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9Change in Customer Base
Number of units undermanagement

Directly managed stores(Units)86,897 85,810 88,413

90,405

Metered parking(Stores)107(Vehicles)
4,321

108
3,911
92

3,587

71,197
77692,376

3Q
3Q
3Q
3Q
3Q
FY2017 FY2018 FY2019 FY2020 FY2021

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3Q
3Q
3Q
3Q
3Q
FY2017 FY2018 FY2019 FY2020 FY2021

2,495

3Q
3Q
3Q
3Q
3Q
FY2017 FY2018 FY2019 FY2020 FY2021

10

3Q FY2021 Results by Segment

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11

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

Platform
25,910TechnologyOthers27,024

Left: 3Q FY2020
Right: 3Q FY2021

Net sales
5,817

5,798
2,065

1,421
Operatingprofit

1,489

469593(909)

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1,534(631)12Platform Business (YoY comparison)
Number of units under management up 1,992 YoY;
Higher purchase price of the electric retail business reduced operating profit by 100 million yen(Millions of yen)

3Q FY2020

YoY change

3Q FY2021

Amount%Net sales

25,91027,024+1,114

4.3％

Operating profit

1,421

1,489+67

4.8%

StoresPM

Number of directly managedfranchised stores
77 stores (3Q FY2020) →storesExamples of included and associated services

Number of units under management
88,413 units →units

Insurance

Rent guarantees

Emergency
assistanceElectricity/Gas

Money transfers

Telecommunications

Key exchange

Collection of feesfor NHK
subscriptions

Collection of fees
for CATV
subscriptions

Gross profit of included and associated services

1,136 million yen (3Q FY2020) →million yen

Note: Due to measures to increase franchised stores, etc.

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13Technology Business (YoY comparison)
Termination of royalty reduction due to the COVID-19 infection(Millions of yen)

3Q FY2020

Net sales
Operating profit

YoY change

3Q FY2021

Amount%5,817

5,798-19-0.3%

469593

+124

26.5%

Technology services
Automated rentalmanagement

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Shared electronic
keys for apartmentsCore system for rental brokerage
service14Analysis of Operating Profit by Segment (YoY)(Millions of yen)

3Q FY2020

3Q FY2021

Net sales

Gross profit

Gross profit
marginPlatform

25,910

6,456

24.9%

Technology

5,817

1,141

OthersAdjustment(elimination or corporate)

2,065

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

YoY change

Gross profit

Gross profit
marginGross profit

Gross profit
margin27,024

6,965

25.8%

+1,114

+508

+0.9%

19.6%

5,798

1,265

21.8%

-19+124

+2.2%

47

2.3%

1,534

(1)

(0.1)%

-531

-48

-2.4%

(790)

(619)

-(658)

(504)

-+115

+114

-

33,020

7,025

21.3%

33,699

7,724

22.9%

+679

+699

+1.6%

Net sales

6,568

19.9%

6,786

20.1%

+218

+0.2%457

1.4%938

2.8%+480+1.4%

Operating profit

SG&Aexpenses

Gross profit

3Q FY2020

Platform

TechnologyOthers

Adjustment

457+508+124-48+114

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Net sales

Operating profit
3Q FY2021-218

938

15

FY2021 Consolidated Forecast

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16

Overview of Consolidated Forecast (YoY comparison)(Millions of yen)

FY2020Results

FY2021
Forecast

Change44,11944,500+380

Operating profit840

1,800+959

Ordinary profit

81,000+991

166

550+383

Net sales

Profit attributable toowners of parent

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17

1. Growth of online operations

Challenges
hampering growth

2. Increase the number of managed/subleased properties
3. Launch of the company-rented housingbusiness (New business)

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Challenges hampering growth

1. Growth of online operations

Activities for the growth of online operations
Online First
Locate and rent anapartment online

Online explanations
and contracts

Shared electronic
keys for apartments

Use of AI for
marketing activities

Automated rental
management

Automated rentalbrokerage service

Online meetings

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

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Challenges hampering growth

2. Increase the number of managed/sub-leased properties
3. Launch of the company-rented housing business (New business)

Increase the number of managed/subleased properties
Results: up 1,992 properties YoY

Increase master leases for theprovision of company housing
Results: 50 contracted companies

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20

Cautionary StatementsAmounts 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, or
timeliness 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.
Copyright © APAMAN Co.,Ltd. All rights reserved.

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