Ekitan & Co., Ltd. · TSE:3646
Ekitan & — Q2 FY03/2024 Earnings Presentation
27 slides from Ekitan &'s earnings presentation, Nov 9, 2023
Slide 1: Supplementary Materials on Financial Results Second Quarter of FY03/2024
Supplementary Materials on Financial Results Second Quarter of FY03/2024 November 9, 2023 EKITAN&Co., Ltd. TSE Growth: 3646 Copyright© 駅探. All Rights Reserved
Slide 2: Table of Contents
Table of Contents FY03/2024, 1-2Q Section 1 Financial results overview: P3 1-2Q of FY03/2024 (company-wide) Section 2 Financial results overview: P9 1-2Q of FY03/2024 (by segment) Section 3 RMP framework P15 Section 4 About performance forecasts of FY03/2024 P22 Section 5 Topics P24 Copyright© 駅探. A
Slide 3: Section 1 Financial results overview (company-wide)
Section 1 Financial results overview 1-2Q of FY03/2024 (company-wide) Copyright© 駅探. All Rights Reserved 3
Slide 4: Highlights: Higher revenues / Lower earnings
Highlights FY03/2024, 1-2Q Higher revenues / Lower earnings Net sales EBITDA Operating profit +26.9% –75.7% N/A (+/– % YoY) (mil. yen) 63 1,941 153 1,529 –74 37 2023 2024 2023 2024 2023 2024 1-2Q 1-2Q 1-2Q 1-2Q 1-2Q 1-2Q Copyright© 駅探. All Rights Reserved 4
Slide 5: Factors of Higher revenues / Lower earnings
Highlights FY03/2024, 1-2Q Factors of Higher revenues / Lower earnings (YoY) Net sales 1,941 mil. yen +26.9％ 411 mil. yen FY2023 1,529 mil. yen EBITDA 37 mil. yen –75.7％ –115 mil. yen FY2023 153 mil. yen Operating profit –74 mil. yen N/A –137 mil. yen FY2023 63 mil. yen Factors of higher revenues Fa
Slide 6: About allocating extraordinary loss (impairment loss)
About allocating extraordinary loss (impairment loss) FY03/2024, 全社 1-2Q Extraordinary loss (impairment loss) was allocated in the financial closing of the 2Q of FY03/2024 Amount of the impairment loss: 793 mil. yen < Reasons for impairment > Cirqua, Inc. Since the amendment to the PMD Act in Japan,
Slide 7: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement FY03/2024, 1-2Q Consolidated Profit and Loss Statement (YoY) (mil. yen) 2023 2024 ratio to sales ratio to sales +/–% +/– amount 1-2Q 1-2Q Net sales 1,529 100.0% 1,941 100.0% +26.9% +441 Cost of sales 1,063 69.5% 1,400 72.2% +31.7% +337 Gross profit 466 30.5% 54
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet FY03/2024, 1-2Q Consolidated Balance Sheet (YoY) 2023 2024 +/– 2023 2024 +/– (mil. yen) 1-2Q amount 1-2Q 1-2Q amount 1-2Q (mil. yen) Total current liabilities 365 622 257 Total current assets 2,260 1,994 –266 Total non-current liabilities 283 355 71 Property, plant and equ
Slide 9: Section 2 Financial results overview (by segment)
Section 2 Financial results overview 1-2Q of FY03/2024 (by segment) Copyright© 駅探. All Rights Reserved 9
Slide 10: Proportions by segment
Proportions by segment FY03/2024, 1-2Q Proportions of net sales are almost the same for the three segments Negative EBITDA in Advertisement Platform Business is offset by Mobility Support Business and Mobility Support Business Net sales EBITDA (FY2024, 1-2Q) (FY2024, 1-2Q) Mobility Support Business
Slide 11: Mobility Support Business
Mobility Support Business FY03/2024, 全社 1-2Q Lower revenues / Lower earnings (YoY) Net sales 740 mil. yen –6.2％ –48 mil. yen FY2023 789 mil. yen EBITDA 186 mil. yen –26.8％ –68 mil. yen FY2023 255 mil. yen Segment profit 159 mil. yen –29.6% –67 mil. yen FY2023 226 mil. yen (mil. yen) Factor 1: Lower
Slide 12: Advertisement Platform Business
Advertisement Platform Business FY03/2024, 1-2Q Net sales, EBITDA, and Segment profit decreased (YoY) Net sales 678 mil. yen –8.3％ –61 mil. yen FY2023 740 mil. yen EBITDA –25 mil. yen N/A –67 mil. yen FY2023 41 mil. yen Segments loss –97 mil. yen N/A –80 mil. yen FY2023 –17 mil. yen (mil. yen) Facto
Slide 13: M&A/Incubation Business
M&A/Incubation Business FY03/2024, 全社 1-2Q New segment * YoY not applicable Net sales 522 mil. yen N/A N/A FY2023 N/A EBITDA 23 mil. yen N/A N/A FY2023 N/A Segment profit 13 mil. yen N/A N/A FY2023 N/A Background (mil. yen) This segment was newly added due to establishment of EKITAN&Co., Ltd. on Apr
Slide 14: Current progress in primary measures (FY03/2024, 1-2Q)
Current progress in primary measures (FY03/2024, 1-2Q) Framework Progress of RMP (Regional Marketing Platform) framework Strategies Measures Progress 【Media business】 • Region-based contents will be added (e.g. real-estate, hotel, ・Facilitating the RMP framework tourist spot) - Enhancement of media
Slide 15: Section 3 RMP framework
Section３ RMP framework RMP: Regional Marketing Platform Copyright© 駅探. All Rights Reserved 15
Slide 16: RMP framework
RMP framework FY03/2024, 1-2Q RMP* framework Realizing RMP framework that connects users with services on regional basis RMP: Regional Marketing Platform ~ From the Stations ~ Aspired orientation By utilizing Ekitan Group’s business assets, and based on By utilizing transfer information technologies
Slide 17: Expansion of profitability
Image of business growth FY03/2024, 1-2Q Four businesses (Transfer information business, Media business, Advertisement business, Solutions business) plus M&A will be reinforced, aiming at revenue expansion Realization of RMP framework * RMP: Regional Marketing Platform ＋M&A Expansion of profitabilit
Slide 18: Strategies (summary)
Strategies (summary) FY03/2024, 1-2Q In order for realizing RMP framework, businesses are promoted with three strategies as their pillars * RMP: Regional Marketing Platform (Strategy 1) To reinforce EKITAN.com (Media business) • By changing configuration of Ekitan media which were independent each o
Slide 19: Strategy 1: To transform EKITAN.com to RMP (Media business)
Strategy 1: To transform EKITAN.com to RMP (Media business) FY03/2024, 1-2Q By optimizing link structure of Ekitan media and by increasing regional information, contents and inbound links, inflow from search results with regional keywords (which would be presented at higher positions) will be increa
Slide 20: Strategy 2: RMP extension (Media business and Advertisement business)
Strategy 2: RMP extension (Media business and Advertisement business) FY03/2024, 1-2Q * RMP: Regional Marketing Platform Not only partnering with regional media and others to reinforce contents and links of EKITAN.com, but also placing recommendation widgets of Cirqua’s Ad-network, will lead to reve
Slide 21: Strategy 3: PR engines & options (Solutions business)
Strategy 3: PR engines & options (Solutions business) FY03/2024, 1-2Q EKITAN.com and RMP extension will be utilized to the maximum, and services will be rolled out to improve awareness of municipalities and business entities which carry out regional marketing and to draw their attention revenue mode
Slide 22: Section 4 About performance forecasts of FY03/2024
Section 4 About performance forecasts of FY03/2024 Copyright© 駅探. All Rights Reserved 22
Slide 23: About performance forecasts of FY03/2024
About performance forecasts of FY03/2024 Considering movement of our business performance up to the current second quarter cumulative period, and because business environment surrounding the Group tends to change drastically, it is difficult to calculate highly reliable figures of the Group’s perfor
Slide 24: Section 5 Topics
Section 5 Topics Copyright© 駅探. All Rights Reserved 24
Slide 25: Media business: Ekitan LOCAL strengthened
Media business June 22, 2023 Ability of “Ekitan LOCAL” to deliver information and its contents were strengthened Reinforcing services of “Ekitan LOCAL”, a web medium that disseminates regional attractiveness, is promoted Places for municipalities, tourism associations and transport operators to deli
Slide 26: Solutions business: Esashi MaaS demonstration project
Solutions business August 1, 2023 Adopted as a “Co-creation Model Operational Demonstration Project (2023)” sponsored by MLIT “Esashi MaaS” which is revenue circularity model aiming at maintaining and revitalizing regional public transportation We have participated in the final demonstration experim
Slide 27: Contact for IR
~ From the Stations ~ 【Contact for IR】 EKITAN Co., Ltd. IR staff E-mail ir@ekitan.co.jp URL https://ekitan.co.jp/ These materials are intended only for providing information for reference concerning current business performance, and therefore investors are encouraged to make their final decisions on