【English Summary】

Semi-Annual Report
Fiscal Year Ending December 31, 2018
Disclaimer: This English summary is only for reference purpose. When there are any discrepancies between original Japanese version andEnglish version, the original Japanese version always prevails.

3452 Tokyo Stock Exchange,First Section

August 10,2018

To Our Shareholders
B-Lot moved its stock listing up to the First Section of theTokyo Stock Exchange in February 2018, and it is in a stage
to further increase the company value.
～ Impacts of Listing Change to the First Section of TSE ～Quality of information

Significant improvement
Large property projects, overseas projects, various property
types, projects that require naming B-Lot as a partner

Significant improvement

Credibility

Service reliability

Brand
recognition

Volume of information& customer count

Needs for services regarding highly confidential inheritancecases, contracts for asset management and property
management by referrals

Drastic increase
Thanks to our improved brand recognition, customers arechoosing to do business with us

Relationships withfinancial institutions

Further improved business relationships

Recruitment

More opportunities to hire talented individuals

We ask for your continued guidance and support as we move forward with an aim ofmaking great strides as B-Lot group.

B-Lot Co.,Ltd.
Makoto Miyauchi

Trends in Revenue and Net Profits
2011.03
The Great East Japan Earthquake

2008.09
The Lehman Shock2012.12
Abenomics Economy policy

Market20,000
topics2013.9Decision of 2020 Tokyo Olympic Game

2018.2

2014.4
Consumption tax increased from 5% to 8%.

1,414

1,400

18,00016,000The First Sectionof TSE

1,250

売上高
Revenue

2018.4T&K
2018.5

当期純利益
Profit for the period

2017.1

14,0002016.4（JPY million）

Life stage

B-Lot CLVientocreation

1,000

2016.912,00010,000Osaka

Establishment of company
or M&A

20,000Establishment of branch2015.2

B-Lot AM

588

600

B-Lot SG

6,000400

2014.12

11,626400

TSE Mothers IPO

4,000

2013.09

Fukuoka0
Number ofemployees

2008.10

2011.04

B-Lot

Hokkaido

2009/12.

５

2010/12.

８

2011/12.

11

104
41
1,338

2,230

2012/12.

2013/12.

16

18

176

800

13,0972015.5

8,000

2,000

1,200

6,950

200

3,709

2014/12.

24

2015/12.

2016/12.

2017/12.

35

134

149

(Cons.)(Cons.)(Cons.)

2018/12.
2018/12.

Earnings
Forecast

0

CONTENTS

Ⅰ. Performance Review

P. 05–09

Ⅱ. Business Summary

P. 10–21

Ⅲ. Company Profile (Reference Material)

P. 22–27

I. Performance Review

I-1. Summary･･･Q2 FY2018･･

Sales results was in line with consolidated net profit forecast for this term.
We expect to sell large-scale properties in the second half to achieve thetarget as originally scheduled.

The outstanding balance of real estate for sale (including sales in process)has reached ¥18,876 million.
Steadily acquiring more variety of properties in types and areas.
Various development projects in major cities throughout Japan.
Expecting big contribution to the profit as well as vitalizing local economy.
Expanding into different business areas for new opportunities.
Started investing in logistics facilities, golf courses and M&A consultingbusiness.

B-Lot Co., Ltd. All rights reserved. 6

I-2. Annual Performance Forecast･･･Q2 FY2018･･

i. B-Lot Group has entered into a stage of further growth.
ii. We are focusing to enhance corporate value through expanding
opportunities and seeking sustainable growth.
Consolidated Earnings Forecast(Millions of yen)Previous year’s results

Forecast period

FY ended Dec. 2017

FY ending Dec. 2018

Consolidated revenue

13,09７20,00052.7％

Consolidated operatingprofit

2,365

2,512

6.2％

Consolidated ordinary
income

1,998

2,057

3.0％

Consolidated net profit

1,250

1,414

13.1％

YoY change

Note: The above forecasts are based on information available to the Company as of the date of this announcement.
The actual results for FY2018 may differ from the projection due to a variety of factors.
B-Lot Co., Ltd. All rights reserved. 7

I-3. Performance Highlights･･･Q2 FY2018･･

Satisfactory performance against projection towards an increase in both revenue
and profit for the 8th consecutive years.
Revenue
20,000Ordinary income(Millions of yen)…

FY2018 forecast

1,998(Millions of yen)

2,057

Net profit

1,414

2,000

2Q FY2018 actualresults(Millions of yen)

1,500

1,250
1,200

1,600

15,00013,097
11,626900
1,200

10,000

874
600

800
5,000

300

400

4,999-

354-

2016/12.

Down

2017/12.

2018/12.

5.1% YoY

Revenue: ¥4,999 million

588217-

2016/12.

Down

2017/12.

2018/12.

19.8% YoY

Ordinary income: ¥354 million

2016/12.

Down

2017/12.

2018/12.

27.1% YoY

Net profit: ¥221 million

Note: In this presentation, net profit attributable to shareholders of parent is shown as net profit.

B-Lot Co., Ltd. All rights reserved. 8

I-4.Consolidated P&L ・BS Summary
Consolidated P&L Summary(Millions of yen)･･･Q2 FY2018･･
Consolidated BS Summary(Millions of yen)Dec. 2016

Jun. 2017

YoY changeAssets

19,10926, 696

39.7％

△5.2％

Current assets

16,761

24,082

43.7％

633

△1.1％

Fixed assets

2,317

2,575

11.1％

454

407

△10.3％

Deferred assets

3138

24.1％

Gross profit

1,669

1,668

△0.1％Liabilities

15,10022,436

48.6％

SG&AM

1,050

1,094

4.2％

Current liabilities

9,137

9,351

2.3％

619

573

△7.4％
Fixed liabilities

5,962

13,085

119.4％Net assets

4,009

4,259

6.2％

Total liabilities
and net assets

19,10926,696

39.7％

Revenue(1) Real Estate Investment
and Development
business(2) Real EstateConsulting business(3) Real EstateManagement business

Operating income(1) Real Estate Investment
and Development
business(2) Real EstateConsulting business(3) Real EstateManagement business
Other (company-wideexpenses)

Jun. 2017

Jun. 2018

YoY change

5,270

4,999

△5.1％

4,174

3,957

640613542△11.6％

222

194△12.7％

21827425.9％

Notes: Consolidated B/S: T&K group is included in the B/S from Q2 FY2018.

△434

△437

△0.6％

Ordinary income

441

354

△19.8％Net profit for the period

303

221

△27.1％

The above revenue does not include internal transactions between segments.

B-Lot Co., Ltd. All rights reserved. 9

Ⅱ. Business Summary (Q2 of FY2018)

Ⅱ-1. Real Estate Investment and Development
YoY Segment profit increased △11.6%(Millions of yen)Segment

2017/6.

2018/6.

Revenue

4,174

3,957

Operatingprofit

613

Breakdown of properties for saleBy typeLand
to be developed
土地（開発用地含む）
Office,store
事務所・店舗YoY change△5.2％3542 △11.6％

41

The outstanding balance ofreal estate for sale is record high!

111

9Residence
住宅系
Hotel
ホテル・宿泊関連

1233

1227

12
2017/12.

Nursingcare facility
介護施設
Logistics
facility
物流倉庫

太陽光施設
Solar
Power Generation
SystemNEW！

2218,87620,000･･･Q2 FY2018･･

2018/6.

仕掛販売用不動産
Real estate for sale in process

16,000Real estate for sale
販売用不動産By region(Millions of yen)

11,392

12,000

Hokkaido北海道圏

11,358

85

8,000

4,000

6,069

70
2015/12.

710Kyushu
九州圏
Kansai
関西圏

3327

3,403

2014/12.

Kanto
関東圏

2016/12.

2017/12.

2018/6.

8
2017/12.

96
2018/6.
B-Lot Co., Ltd. All rights reserved. 11

Hotel development
By foreseeing market trends, we focus to develop innovative accommodations such as
boutique hotels, capsule hotels, and budget hotels.
KYOTO

GINZA

120
beds

IMANO TOKYOGINZA HOSTEL

113
beds

IMANO KYOTO
KIYOMIZU HOSTEL
B-Lot Co., Ltd. All rights reserved. 12

Two new hotels completed in March 2018
While proceeding our development projects for the past couple of years with strong
confidence of its future potential, Hokkaido and Okinawa are becoming much more popular
tourist destinations now.
2018.04 GRAND OPEN!!

2018.04 GRAND OPEN!!
HOKKAIDO

128
rooms

Hotel Torifito Otaru Canal

OKINAWA

132
rooms

TISSAGE HOTEL by NEST NAHA
B-Lot Co., Ltd. All rights reserved. 13

Hotel construction completed inJune 2018 in Kyoto.

Redeveloped old capsule hotels to newconcept capsules with saunas underthe ℃ brand.

2018.08 GRAND OPEN!!

2017.12/ 2018.4 OPEN!!

KYOTO

EBISU/ GOTANDA

EBISU

95
rooms

NEST HOTEL
KYOTO SHIJO KARASUMA

162
GOTANDA
capsule℃ (pronounced “doe-see”)
164
EBISU/GOTANDA
capsuleB-Lot Co., Ltd. All rights reserved. 14

Upcoming properties
for sale
商品ラインナップ（今後の売却物件）
Bigger scale properties which bring higher gross profit are planned to be sold in Q3 and Q4.
2017.72017.92017.122018.32018.32018.4

Tokyo

Kyoto

Tokyo

Naha

Otaru

Tokyo

2018.62018.62018.11

Kyoto

Tokyo

Fukuoka

2019～and more…

Fukuoka
Coming Soon
2019.3

Osaka
2019.7

Fukuoka

2020～Fukuoka
B-Lot Co., Ltd. All rights reserved. 15To facilitate foreign investment in JapanEntered into the 3rd year, Singapore subsidiary has been contributing strongly to the groupprofits. Steadily build overseas investor base and close deals with repeat customers.

Private Event＠SG

Viewing

Sold out ！
NisekoViewing

Sales
Proposal

B-Lot Co., Ltd. All rights reserved. 16

A SmallNumberof Exceptional
Talentat Fukuoka Branch;【Reference】
Urban
development
masterplan
in Fukuoka
Understanding Trends Led to a Breakthrough in Property Acquisition(Development)
Condominium

Inventory map(Development)
Hotel(Revitalization)
Inventory

Office building
Reisenmachi
ProjectJigyo
ProjectImagawa
Project

Land lot

Fukuoka City

Fukuoka Airport

Ropponmatsu ProjectCity Development PJ(Ropponmatsu)

Tenjin Big Bang
Development PJ

Hakata Old Town
preservation PJ)

Source: Nomura Research Institute’s “Growth potential city ranking”

Access time to city centerfrom international airports

No.1 out of 13 cities in Japan and Asia
Rate of increase in thenumber of foreign residents

No.1 among 21 major cities in Japan, 2010
to 2017

City potential

No.1 out of 100 cities in Japan in 2017
Number of international
conferences held

No.1 in Japan in 2016

Number of international
passengers

No.1 among nationwide ports in 2017
Number of inbound tourists
Record high for fiveconsecutive years(8.53 million people on Fukuoka̶ Haneda line in 2017)
B-Lot Co., Ltd. All rights reserved. 17

【Reference】 Urban development masterplan in Fukuoka
Scope of Tenjin Big Bang ProjectWithin a 500m radius from Tenjin intersection

Tenjin Big BangDevelopment PJ⑥ Redevelopmentof Suijo ParkTenjin Meiji
Street District

In ten years leading up to 2024,
we aim to initiate rebuilding of30 privately-owned buildings tocreate new space andemployment opportunities.

① Height restrictions
Exceptions for certain
areas approved
・Tenjin Meiji Street area,approx. 17ha
・Former Daimyo ES site,approx. 1.3ha

Reference: Estimated effects of rebuilding Total floor space: approx. 1.7-fold increase(444,000m² to 757,000m²)
No. of employees: Approx. 2.4-fold increase
Image rendering of 24-story building
to be build on the former Daimyo(39,900 to 97,100)
Elementary School site Construction investment effects: ¥290 billion
 Economic ripple effects: ¥850 billion per year

Hakata Old Town Preservation PJCultivate the history of Fukuoka Cityto advance to the next generation

Former Daimyo
ElementarySchool site
② Startup Cafe
⑤ Town development on thesite of former Daimyo ES③ Tenjin 1-chomesouthern block(formulated a districtdevelopment plan)⑦ Nanakuma
subway line
extension④ Effective utilization oftemporary roadway in Tenjin
underground shopping center

Ropponmatsu PJ (Former Kyusyu Univ site)Ⅱ-2. Real Estate Consulting
YoY Segment profit decreased △12.7%･･･Q2 FY2018･･
Condominiums

Monetize group synergy effectby investing in bulk condominiums(Millions of yen)Segment

2017/6.

2018/6.

Revenue

640633Operatingprofit

222

194 △12.7％

YoY change△1.1％

Steadily growth in each region
Number of closed deals by region
Kanto
関東圏
Hokkaido
北海道圏

12.50%

Kyushu九州圏

Kansai関西圏

12.50%
12.50%◇ PLEAGIA KYOTO YAMASHINA HIGASHINO ◇62.50%
Seller

① Sales activities② Brokerage③ Marketing
B-Lot Co., Ltd. All rights reserved. 19

Ⅱ-3. Real Estate Management･･･Q2 FY2018･･
Steadily increasing number and region ofmanaging buildings

YoY Segment profit increased 25.9%(Millions of yen)Segment

2017/6.

2018/6.

Number of managing buildings（by region）

YoY change
70454

Revenue
Operatingprofit407

218△10.3％

274

25.9％

5460

4550
40

10
1,200

70,0001,000

60,000800

50,00040,000600

30,000400

20,000Kyushu九州圏

北海道圏
Hokkaido
関東圏

242216

1,400

総テナント数(件)
Total no. of tenants

80,00013Kansai
関西圏

Kanto

9

総賃貸可能面積(㎡)
Total leasable floorarea (m2)

90,000

9

10

1030
20

100,000

2

39

No. of tenants and total floor areaNEW！
合計

63

17

1922

2015/6.

2016/6.

2017/6.

28

0
2018/6.

# of managing buildings rose from39 in FY2015 to 63 in FY2018.

200

10,000

18/5

18/2

17/11

17/8

17/5

17/2

16/11

16/8

16/5

16/2

15/11

15/8

15/5

0
15/2

0

B-Lot Co., Ltd. All rights reserved. 20

Expansion
into new business areas
サステナブルな企業へ！
（環境・社会・経済から多面的に持続性を高める）
Solar Power
Generation System

Healthcare, Medical
Facilities

Accomodation

Holding Solar Power
Generation System in Ibaragi

Holding Senior Nursing
Home in Kamakura

Logistics Facilities

Leisure and Sports

Revitalizing residentialbuilding for private
lodging(Minpaku) in Osaka

Holding Logistics
acilities in Osaka

Acquired Golf operatingcompany T and K
B-Lot Co., Ltd. All rights reserved. 21

About B-Lot - Our Strengths
B-Lot (the name combines “brain” and “guys of hands-on approach”)

B-Lot Co., Ltd. All rights reserved. 22

About B-Lot - Company Profile as of June.30, 2018 Company name

B-Lot Company Limited

A d d r e s s

8F Shimbashi Marine Building, 2-19-10,
Shimbashi, Minato-ku, Tokyo 1050004 Japan

Date of Incorporation

October 10, 2008

Capital Amount

JPY1,014,365,033

President

Makoto Miyauchi

Employees

54 (Consolidated 207)

S to c k L i s tin g s

Tokyo Stock Exchange, First Section (Ticker code:3452)

Branches &Subsidiaries

Hokkaido Branch , Fukuoka Branch
B-Lot Asset Management Co.,Ltd. (100% owned Subsidiary)
B-Lot Singapore Pte. Ltd. (100% owned Subsidiary)
Viento Creation, Life Stage, B-Lot Capital Link, T and K Incorporated

B-Lot Co., Ltd. All rights reserved. 23

About B-Lot - Our Businesses Our businesses are grouped into three main segments.

We have built intensive relationships with high-quality investors.
B-Lot Co., Ltd. All rights reserved. 24

About B-Lot - Our Strengths The revitalization and development business is the largest contributor.
This business involves acquiring of properties that are undervalued due to various
reasons and reselling these properties after adding value through renovation and/orresolving issues.
Acquisition of properties
with problems

Utilize know-how

Our Strengths
Revitalization
planning+Abilities tofulfill as planned.
- Raise revenue- Cut down expense- Rectify illegality- Improve cap rate

B-Lot Co., Ltd. All rights reserved. 25

About B-Lot - Our Strengths We have various ‘revitalization plans’ in many property types.
① Search for and find undervalued properties② Provide the ‘maximum value plan’③ Fulfill its process as plannedNote!
We are able to buy properties at higher prices
because of our more various and sophisticated revitalization plans.

Loyal customers
Repeaters

Partners

REPEATORDER
SYSTEM !

plans Ⅳ

Development

plans Ⅲ

Most Suitable
Useplans Ⅱ

Legalizationplans Ⅰ

ProfitImprovement

The maximum
future value priceReal
EstateExpense

Rival companies

NOI

Buyingprice※Thepresentprice※NOI＝Net Operating Income

B-Lot Co., Ltd. All rights reserved. 26

About B-Lot - Geographical Coverage -･･･Q2 FY2018･･

We have expanded our regional coverage from Tokyo to Sapporo, Fukuoka andOsaka.
We have a dedicated team with in-depth knowledge in this area.

GROWTH STRATEGY
Our core market (transaction size of JPY50mn - 5,000 mn) is a niche segment, in which the major
property developers and brokers are not active.
The size of the market is large, and we have substantial potential to grow at a rapid pace.
We are also engaged in a wide range of activities, from renovation of existing buildings todevelopment of new buildings. Our increased track record in a variety of diversified projects
should further enhance our market presence going forward.

B-Lot Co., Ltd. All rights reserved. 27

MEMO･･･Q2 FY2018･･

B-Lot Co., Ltd. All rights reserved. 28

・・・・・ Contact us ・・・・・
Corporate Planning Department
Tel ：+81 3-6891-2524
Fax：+81 3-6891-2522
E-mail ir@b-lot.co.jp
URL : http://en.b-lot.co.jp/

DISCLAIMER
Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forwardlooking statements include but are not limited to descriptions of performance containing words such as or similar to “believe,” “expect,” “plan,”“strategy,” “anticipate,” “forecast,” and “estimate,” and are based on judgments derived from the information available to the Company at thetime of publication. Various factors could cause results to differ materially from any projections presented herein. The Company reserves theright to maintain or change its projections regardless of any new information, conditions or changes in performance. These materials are forinformational purposes only, and should not be construed as a recommendation to invest in the Company.