Evolable Asia Corporation (Head Office: Minato Ward, Tokyo Prefecture; CEO: Hideki Yoshimura; Stock Code: 6191), hereinafter “our company”, deals with online traveling, tourism in Japan, and IT offshore development around Asia with a corporate philosophy of One Asia. A decision has been made on the 14th of February during the board meeting to start new business operations in the currency exchange market. Furthermore, we would like to inform you that a decision was made to establish a subsidiary company (Tentative name: AirTrip Exchage) upon entry.
(1) The background for market entry
In 2016 the number of inbound travelers has reached 24 million annually, and July 2016 alone set a new record of 2.29 million visitors. The government estimates that the 2020 Tokyo Olympics and Paralympics will attract 40 million visitors resulting a sharp increase in the market size.
On a different point, there are very few companies (including large corporations) that have specialized in currency exchange, and research polls show that inbound travelers have a hard time exchanging their cash because there are not enough outlets. Banks and hotels allow you to exchange currency, however, issues regarding hours of operation and exchange rates/fees make
it hard to say that it has a high utility. Compared to other countries, Japanese cities do not have many outlets for exchange and has been a point of criticism.
Given this environment, we will enter the currency exchange market in order to meet the demand for inbound travelers.
(2) Description of Business Operations
We will establish specialized outlets in regional tourist hot spots and provide currency exchange services.
We will exchange a wide variety of currencies. We also plan to facilitate exchange with bitcoins. Also, in the near future, we plan to create a platform online.
We will tailor our operating hours in an effort to reach out to as many inbound travelers as we can.
We believe that it is possible to create synergy with our existing operations, the merits are listed below.
・ Operations to target service demands of inbound travelers will be unified.
・ Cash flow from our travel services can be used to support the new business.
・ A new brand “AirTrip Exchange” will be established, and any new advertisements will also have our core brand “AirTrip” embedded in the message.
We would like to establish a new source of income within the inbound traveler market and wish to see it establish a solid financial foundation in the long run.
We have signed an agreement with Asset Revolution Co., Ltd. (Minato Ward, Tokyo) to receive support with the development of the business strategies in order to enter the currency exchange market.
■Our next action
(1) Establishment of a subsidiary company (Tentative name: AirTrip Exchange)
Our goal is to establish the company by the middle of February and start operations immediately.
| Trade Name | ：AirTrip Exchange Co., Ltd. (Tentative) |
| Address | ：Atago Green Hills Mori Tower 19th Floor, 2-5-1 Atago, Minato Ward, Tokyo |
| Company Representative | ：CEO Hideki Yoshimura |
| Date of Establishment | ：March 1, 2017 (planned) |
| Capital | ：50 million yen |
| Ratio of Capital Contribution | ：100% |
| Description of Business Currency | ：exchange business |
(2) To open 3 new outlets
We will establish 3 outlets.
We plan to place the outlets in commercial, downtown and other areas where there is a large demand for currency exchange for tourists.
These stores will open around March and April.
The capital mentioned above (50 million yen) will fund the outlet establishment and act as the operating capital.
(3) The middle-term plans
We will open 3 outlets and evaluate their performance as a way to measure feasibility of more stores.
We hope to establish the currency exchange business as a financial foundation in the mid to long term.
Our company will work tirelessly to improve our services and to expand our business.
■ Effects on our sales performance
The 3 outlets that will be opening will have a negligible effect on our profits in September 2017. We will think of this business as an investment in the mid-long term. If the operations from this new business is creating a situation that has a large impact on profits, we will let you know.
【Evolable Asia Corporation】
| Head Office | ：Atago Green Hills Mori Tower 19th Floor, 2-5-1 Atago, Minato Ward, Tokyo |
| Company Name | ：Evolable Asia Corporation |
| Representative | ：CEO Hideki Yoshimura |
| Capital | ：1,019 million yen (Paid-in Capital 1,844 million yen) |
| URL | ：http://www.evolableasia.com/ |
【Evolable Asia Service Website】
| General Traveling Service Platform AirTrip | ：https://www.airtrip.jp/ |
| Travel Website TRIP STAR | ：http://japanflight.tripstar.co.jp/ |
| Domestic Flight Booking Website Soratabi.com | ：http://www.soratabi.com/ |
| Business Travel Management (BTM) | ：http://www.evolableasia.com/service/btm.html |
| IT Offshore Development | ：http://offshore.evolableasia.com/ |
【Evolable Asia Investor Relations Website】
http://www.evolableasia.com/ir