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

February 13, 2019

APAMAN Co., Ltd.
JASDAQ: 8889
Copyright © APAMAN Co.,Ltd. All rights reserved.

0Our Sincere Apology
Apaman extends its sincere apology to everyone who was affected by the
explosion that occurred on December 16, 2018. This includes people who were
injured, residents of the area where the accident happened and all others who
were affected by this incident. We hope that people who were injured will recoverquickly and we pledge to do everything possible to provide assistance forrepairing damage caused by the explosion.
We are taking many actions in order ensure that this type of accident will never
happen again.
Please refer to the press release dated today titled “Notice of Extraordinary Loss/Income and Reduction in Director Remuneration
Due to the Explosion in Sapporo” for more information.

1

1. Benefits of Upfront Investments –Sharing Economy Business

Copyright © APAMAN Co.,Ltd. All rights reserved.

2

1. Co-working

Directly managed
Co-working locations
As of September 30, 201822 locations
As of December 31, 2018

23 locations(Domestic 20, Overseas 3)
fabbit Global Gateway “ACROS Fukuoka” opened on December 7, 2018

Note: The number of locations includes sites that have been leased but not yet started operations
Copyright © APAMAN Co.,Ltd. All rights reserved.

3

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"

Copyright © APAMAN Co.,Ltd. All rights reserved.

fabbit Global Gateway "Otemachi"

4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 of Internal Affairs
and Communications• Presentation by the fabbit CEO at the Science & Innovation Forum held by the Cabinet Office,City of Fukuoka and others• Operating Fukuoka Growth Next, a private/public-sector co-working facility, with the City of
Fukuoka• Operating COMPASS Kokura, a private/public-sector co-working facility, with the City of
Kitakyushu• Opened fabbit Hachioji as part of facilities to support manufacturing innovation in Tokyo’s
Tama district• Started the Leap Over accelerator program (phase 3) with Mitsubishi UFJ Research andConsulting Co., Ltd.
• Established 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 for outsourcing jobs
worldwide• Business alliance concerning a young worker with professional skill sharing service with
Pasona Inc.
• Announcement of 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 ofTechnology• Started an open innovation service for large companies• Published forbes customize magazine(fabbit special)• The fabbit Fund made its first investment by purchasing shares of Mamasan & Company• Acquired shares of StreetAcademy, Inc.
• Holding of Independents Club Tokyo with Nippon Venture Capital Co., Ltd. , fabbit's business
partner Workshift Solutions Co., Ltd. announced business plan

• Business alliance including jointly holding Slush (Tokyo), the world’s largest start-up
event

Copyright © APAMAN Co.,Ltd. All rights reserved.

• 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) coworking 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
Fukuoka5

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.
Copyright © APAMAN Co.,Ltd. All rights reserved.

6

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: 455.34㎡

Copyright © APAMAN Co.,Ltd. All rights reserved.

7

1. Co-working (Selected locations)

FGG “Otemachi”

FGG “OsakaHonmachi”

fabbit Aoyama

fabbit Otemachi

fabbit Ginza

fabbit Nihonbashi

fabbit Akihabara

fabbit Kyobashi

fabbit Hachioji

fabbit Sakae

fabbit Hiroshima Ekimae

fabbit Osakahonmachi

fabbit Shinosaka

fabbit Osakafukushima

fabbit Okayamatoiyacho

fabbit Hakata

fabbit Kitakyusyu

Fukuoka Growth Next

COMPASS Kokura

fabbit Philippines

Copyright © APAMAN Co.,Ltd. All rights reserved.

8

2. Parking

Parking
As of September 30, 2018

3,028 parking spaces
As of December 31, 2018

3,092 parking spaces
Note: The number of locations includes sites that have been leased but not yet started operations
Copyright © APAMAN Co.,Ltd. All rights reserved.

92. Parking(Selected locations)

Copyright © APAMAN Co.,Ltd. All rights reserved.

103. Minpaku

Minpaku
As of September 30, 2018716 rooms
As of December 31, 2018

770 rooms
Notes: The number of locations includes sites that have been leased but not yet started operations
Locations operated by our affiliates are included
Copyright © APAMAN Co.,Ltd. All rights reserved.

113. Minpaku (Selected locations)Grandouce Sejour

Grandouce Shitennoji

Grandouce Dotonbori

Grandouce Casa-Comoda

Grandouce Nihombashi

Grandouce Namba-nishi

Grandouce Villa Tsuruhashi

Grandouce Villa Tengachaya

Grandouce Hakata

Grandouce Buena VistaGrandouce Namba-higashi

Grandouce Rokugodote

Copyright © APAMAN Co.,Ltd. All rights reserved.

12

4. Share Cycle

Share cycle
As of September 30, 2018490 bicycles
As of December 31, 2018511 bicycles
Bicycle sharing agreements have been signed with the following municipalities:
Fukutsu City, Iizuka City, Koga City, Munakata City, Isen-cho, Tokunoshima-cho, Amagi-cho
Note: The number of bicycles includes bicycles that have been leased but are not yet in use
Copyright © APAMAN Co.,Ltd. All rights reserved.

13

2. Benefits of Upfront Investments –Platform Business

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14

1. Apartment Rental Management

Apartment rental
management
As of September 30, 2018

90,198 units-537 units
Growth in units under management(Units)60,42663,49270,041

71,458FY2014FY2015FY2016FY2017

Copyright © APAMAN Co.,Ltd. All rights reserved.

90,19889,661FY20181Q FY2019

As of December 31, 2018

89,661 units
15

2. Included and Associated Services

Property owner

databaseNote for about

200,000 people

Tenant databaseNote forabout 1 million
peopleAbout 1 million
units undermanagementNote

1Q FY2018

Note: Estimate of about 7 million people for the intermediarydatabase▼Examples of additional included services

Insurance

Rent guarantees

Gross profit of included
and associated services

Emergency
assistance

416 million yen+85 million yen

Electricity/ Gas

Money transfers

Telecommunications
1Q FY2019

Key exchange

Collection of fees for
NHK subscriptions

Collection of fees for
CATV subscriptions
and others

Note: Includes the operations of franchised locations
Copyright © APAMAN Co.,Ltd. All rights reserved.

508 million yen
16

3. 1Q FY2019 Consolidated Results

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

1Q FY2019

1Q FY2018

Remarks

YoY change
Amount%Net sales

9,756

11,290

Increase in the number of properties
under management in the Platform
Business

Gross profit

2,536

2,647

Increase in the number of properties
under management in the the
Sharing Economy Business

+110

+4.4%

SG&A expenses

2,363

2,470

Upfront investments in the Sharing
Economy Business

+106

+4.5%

Operating profit(operating margin)

173(1.8%)

177(1.6%)

Upfront investments in the Sharing
Economy Business

+3

+2.1%

Ordinary profit

43-2

Equity-method loss of -50 million yen-46-

Profit attributable toowners of parent

69-1,208

Accident losses -1 billion yen
Insurance revenue +80 million yen-1,278-

EBITDANote

585

416

Decrease in leasing income due tosale of properties in prior FY-169-35.7%

Note: EBITDA = Ordinary profit + interest expenses + depreciation + amortization of goodwill
Copyright © APAMAN Co.,Ltd. All rights reserved.

+1,533+15.7%

18

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

Liabilities andnet assets

EndFY2018

1Q
FY2019Current liabilities

10,523

11,006-482

Accounts payabletrade

1,005

1,312

+306

+224

Short-term loans
payableNote

1,979

2,627

+647

+91

Other

7,538

7,066

-471 Provision for

EndFY2018

1Q
FY2019Current assets

14,641

12,897-1,840Cash and deposits

7,773

5,322

-2,451

Notes and accounts
receivable-trade

1,567

1,791

Operational
investment securities

1,031

1,122

Other

4,268

4,660

+392

Non-current liabilities

20,474

19,941-533

Non-current assets

20,904

21,136+232

17,797

17,379-417

Property, plant andequipment

Long-term loans
payable

4,693

4,882

+189

Long-term lease andguarantee deposited

1,750

1,721

-29

Intangible assets

9,207

9,375

+168

Other

926

840

-86

Goodwill

7,215

7,357

+141

Total liabilities

30,99830,947-51

Other intangible
assets

1,991

2,018

+26

Capital

7,983

7,983

－

Investments and otherassets

7,003

6,878

-124

Net assets

4,546

3,086

-1,460Total assets

35,54534,034-1,511

Total liabilities andnet assets

35,54534,034-1,511

Note: Includes current portion of long-term loans payable
Copyright © APAMAN Co.,Ltd. All rights reserved.

YoYchangeYoYchangeAssetsRemarks

Remarks

Accrued taxes: -1,236
accident losses:

767

19

4. 1Q FY2019 Results by Segment

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20

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

Operating loss increased due toupfront investments

Growth in operating profit

Growth in operating profit

Other business

9,024

Left: 1Q FY2018
Right: 1Q FY2019

7,478

Net
sales
1,847
293

1,945

548

487

251

Operatingprofit

332

323
207

(44)

(71)

135

(107)

(188)

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21

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

1Q FY2018

YoY change

1Q FY2019

Amount%Net sales

293

548

+255

+87.2%

Operating profit(operating margin)

(71)

(188)

-177

-165.1%

Directly managed locations
22 →Parking spaces
3,028 →

716 rooms →rooms

Contracted bicycles
490 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 bicycles at alliance partners
Copyright © APAMAN Co.,Ltd. All rights reserved.

22

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

1Q FY2018

Net sales
Operating profit(operating margin)

YoY change

1Q FY2019

Amount

%

7,478

9,024

+1,545+20.7%

251

332

+81

+32.4%StoresProperty management

Examples of included and associated services

Number of directly managed

Number of units under management

Gross profit of included and associated services

108 stores →storesCopyright © APAMAN Co.,Ltd. All rights reserved.

90,198 units →units

416 million yen →million yen

23

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

1Q FY2018

Net sales
Operating profit(operating margin)

YoY change

1Q FY2019

Amount

%

1,847

1,945

+97

+5.3%

207

323

+116

+55.9%■ Cloud technology services
Introduction CLOUD

Appraisal CLOUD

Note: The sharing key is a product of a company in which APAMAN has made an investment
Copyright © APAMAN Co.,Ltd. All rights reserved.

Sharing key

24

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

1Q FY2018

1Q FY2019

Gross profit

Gross profit
margin

293

44

15.2%

Platform

7,478

2,053

Cloud Technology

1,847

Other business
Adjustment (elimination or corporate)

Gross profit

Gross profit
margin

548

29

5.3%

27.5%

9,024

2,291

466

25.3%

1,945

487

174

35.8%

(349)

(202)

9,756

2,536

Net sales

Sharing Economy

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

1Q FY2018173

Sharing economy-15

Operating profit

Copyright © APAMAN Co.,Ltd. All rights reserved.

YoY change

Platform+237

Gross profit

Gross profit
margin

+255

-15

-6.0%

25.4%

+1,545

+237

15.4%

567

29.2%

+97

+100

+102.9%

135

24

18.0%

-352

-150

-42.7%

－

(363)

(264)

－

-13

-61

－

26.0%

11,290

2,647

23.5%

+1,534

+110

+7.2%

Net sales

Net sales

2,363

24.2%

2,470

21.9%

+106

+7.0%

173

1.8%

177

1.6%

+3

+0.2%

Cloud technology+100

Gross profit

Other business-150

Adjustment-61

SG&A Expenses
-106

SG&A
Expenses

1Q FY2019177
Operating profit25

5. 1Q FY2019 Consolidated Forecast and Growth Strategy

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26

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
Copyright © APAMAN Co.,Ltd. All rights reserved.

27

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

(4.4%)+374(+0.5%)

123.5%

881

1,400

+519

160.0%(1,073)

(100)

+973

-

Ordinary profit

Profit attributable to ownersof parent

Copyright © APAMAN Co.,Ltd. All rights reserved.

(3.9%)

28

3. Consolidated Forecast by Segment(YoY comparison –Sharing Economy Business)
Goal is to become profitable while continuing to make upfront investments(Millions of yen)

FY2018 Results

Operating profit

FY2018Results

22 locations

FY2019 Forecast

(462)

3,028

parking spaces

YoY change

0716 rooms+462

490 bicycles

FY2019Targets

Notes: All figures are on a contractual basis and include group companies
Minpaku locations include rooms operated by our affiliates
Share cycle includes bicycles at alliance partners
Copyright © APAMAN Co.,Ltd. All rights reserved.

29

4. Consolidated Forecast by Segment(YoY comparison –Platform Business)
Steady growth in operating profit due to an increasing occupancy rate and higher
gross profit of included and associated services(Millions of yen)

FY2018 Results

Operating profit

FY2018Results

FY2019 Forecast

1,973

90,198 units

YoY change

2,200

+227

1,981 million yen

FY2019Targets

Copyright © APAMAN Co.,Ltd. All rights reserved.

30

5. Consolidated Forecast by Segment(YoY comparison –Cloud Technology Business)
Full-scale launch of robot process automation and artificial intelligence businesses(Millions of yen)

FY2018 Results

Operating profit

A robot automatically collects property
information and sends the data to the coresystem

FY2019 Forecast

1,147

YoY change

1,150

+3

A scanner reads property information andconverts it to a text format

A lineup of 14 cloud services

Introduction CLOUDStore visitor CLOUD

Appraisal CLOUD
etc...

Copyright © APAMAN Co.,Ltd. All rights reserved.

31

Copyright © APAMAN Co.,Ltd. All rights reserved.

32

6. Dividend Policy

Copyright © APAMAN Co.,Ltd. All rights reserved.

33

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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34

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)

Copyright © APAMAN Co.,Ltd. All rights reserved.

★

35

Cautionary Statements
These materials are prepared based on consolidated financial report for the second quarter of the fiscal year ending September 30, 2019. 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 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 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 for investment. Investment
decisions are entirely those of the investors.
Copyright © APAMAN Co.,Ltd. All rights reserved.

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36