GA technologies : FY2022.10 2Q Financial Results presentation material

FY2022.10 2Q

Financial Results

November 1, 2021 - April 30, 2022

June 14, 2022 (Securities code:3491)

Our Ambition

• Our Ambition and purpose is to inspire and impress people with the power of technology and innovation. To achieve this goal, we must tackle the big unsolved issues.
• Based on our ambition, we will solve social problems through our business activities by bringing technology into the world of housing (real
  estate), which is the least developed of the three essential areas of life, apart from food and clothing.

2

Revision of results forecast

Revision to results forecast for the fiscal year ending October 2022

• Upwardly revised results forecast for the fiscal year ending October 2022.
• Revenue remains the same : considering the balance between top-line growth and profits in online transactions at RENOSY Marketplace, the Company is concentrating resources on highly profitable products, and expects that sales growth will be limited to its profit growth.

Revenue

Deferred

110,000

(million yen)

FY2022.10

Forecast

Gross Profit

Upward revision

16%

15,250

13,200

〜〜(million yen)

FY2022.10 FY2022.10

Forecast Upward revision

EBITDA		Operating Profit
Upward revision	Upward revision
18%	777%
4,700		500

4,000

	〜		〜(million yen)	57
					(million yen)
FY2022.10	FY2022.10	FY2022.10
FY2022.10
Forecast	Upward	Forecast	Upward
			revision				revision

3

FY2022.10 Full-Year Consolidated Results and Earnings Forecast by Segment

By Segment						(million yen)
					FY2022.10 2Q	After Results	After Results
				FY2022.10	Revision
		FY2021.10	After Results	Revision
		Initial forecast	Initial plan
		(IFRS)	①	Revision	YoY changes
		(IFRS)②	YoY changes
			(IFRS)③	(③/① - 1)*1
			(③/② - 1) *1
	Revenue	73,095	107,261	107,261	+47%	−
RENOSY
Gross Profit		9,121	11,837	13,418	+47%	+13%
Marketplace
	Sector Profit		2,879	3,109	3,663	+27%	+18%
	Revenue		1,170	1,691	1,810	+55%	+7%
ITANDI	Gross Profit		934	1,340	1,504	+61%	+12%
	Sector Profit		1	▲152	113	+11,200%	−

Note: 1. Calculated based on the figures on the matrix

4

Reasons for revisions to results forecast

• Revenues and costs improved
  due to selection and concentration of RENOSY Marketplace and ITANDI business from the same period prior year.
• In RENOSY Marketplace, in addition to the effects of various commission improvement measures that has been implemented, profit improved through management integration with Ricordi, which was announced to have integrated in December 2021.
• In ITANDI, the number of acquired companies increased due to the high evaluation of products and services, in addition to the increased market needs and inquiries ahead of the enforcement of the revised Real Estate Brokerage Act, and Monthly Recurring Revenue (MRR) improved.

RENOSY Marketplace

Successful selection and

concentration of businesses and measures to improve commissions

1. Business selection and concentration

• Improved profitability and costs by selecting and concentrating on profitable businesses

(2) Commission improvement measures

• Strengthened procurement directly from owners through seller DX
• Expansion of product lineup
• Provision of ancillary services to RENOSY members

1. Effect of acquisition of management rights of Ricordi

• Increased performance (hit PL since March 2022)
• Expansion of product lineup
• Increase in market share
• Improvement in commissions

Note: 1. Small and Medium Business

ITANDI

Improved MRR driven by growing market needs

(1) SaaS for management company

• Increase in utilization rate due to increased recognition of ITANDI BB
• With enforcement of the revised Real

Estate Brokerage Act, the response

*1

from SMBs is increasing.

(2) SaaS for real estate agencies

• Enhancement of collaboration with ITANDI BB to improve functions
• Enhanced service reputation and increased SMB acquisition

5