3836 TSE Prime

Avant Group Corporation
Financial Results Briefing
for the first quarter of Fiscal Year June 2024
October 31,2023©AVANT GROUP CORPORATION. All Rights Reserved.

Executive Summary Summary of financial results for the first quarter of FY June 2024•

Net sales increased by 12.3% year-on-year to ¥ 5,646 million, as the significant growth of the Digital Transformation Promotion
business contributed to the increase in sales.

•

Operating profit increased by 10.8% year-on-year to ¥ 681 million, mainly due to a decrease in one-off costs incurred in theprevious year as a result of the Group's reorganisation and the effect of increased revenues from the digital transformation
promotion business, despite an increase in fixed personnel costs due to an increase in headcount and a continued high level ofsubcontract processing costs in response to an increase in orders.

•

The previous method of classifying business segments was reviewed, the reportable segments were changed from "Group
Governance Business", "Digital Transformation Promotion Business" and "Outsourcing Business" to, the new reportablesegments are "Consolidated Financial Disclosure Business", "Digital Transformation Promotion Business" and "Management
Solutions Business".

 Earnings and Dividend Forecasts•

No changes are made to the forecast for the current financial year, which is expected to achieve sales of ¥ 24,000 million andoperating profit of ¥ 3,850 million.

•

The year-end dividend per share for FY2024 is expected to be 19 yen per share, with the aim of achieving the 8% ratio ofdividends to net assets, which is the target for the period of the new medium-term management plan.

 'BE GLOBAL 2028' Actions to realise•

DIVA releases TRINITY BOARD (alpha version) to promote DX for Japanese boards of directors.

•

DIVA and Ernst & Young ShinNihon LLC commercialise a jointly developed solution to improve efficiency in handlingconsolidated audits.

•

AVANT updates its business management system AVANT Cruise. Standard package functionality for performance management(budget, actual and forecast)©AVANT GROUP CORPORATION. All Rights Reserved.

2

【Reference】 Segment Reorganization
BeforeOld Segments

After

Corporation

Main Business

Main BusinessCorporation

ID

Disclosure Net

Disclosure Net

ID

Consolidated
Accounts Software

Consolidated
Accounts SoftwareGroup Governance

DIVA
Former DIVA

DigitalTransformation
Promotion

ZEAL

Outsourcing

FIERTE

Consolidated Accounts
Consulting & Operations

Outsourcing

Management Solutions
Business(Software & consulting)Consolidated Accounts
Consulting & Operations

CPM*

Management Solutions
Business(Software & consulting)

BI＆Data Platforms

CPM

Outsourcing

BI＆Data Platforms

New Segments

Consolidated
Financial Disclosure
Business

AVANT

Management
Solutions Business

ZEAL

Digital Transformation
Promotion Business※CPM：Corporate Performance Management©AVANT GROUP CORPORATION. All Rights Reserved.

3

【Reference】 New business segments「Consolidated Financial Disclosure Business」
In addition to the development and maintenance of our own packaged software "DivaSystem" for consolidated
management support and consolidated accounting, we also provide outsourcing of consolidated and non-consolidated
financial statements using this software, supporting value creation through corporate information disclosure. As for our
position within our group, we aim to establish a business model that combines the software business and outsourcing
business.
The consolidated financial statement disclosure service also includes an information search service for disclosure
documents provided by Internet Disclosure Co., Ltd. primarily for auditing firms.
「Digital Transformation Promotion Business」
Through consulting and system development, we provide AI and BI solutions that analyze, predict, and visualize data froma data platform that utilizes all kinds of data surrounding companies, and support companies in promoting digitaltransformation and data-driven management. From major cloud vendors to multi-cloud compatible software, you willlearn about the latest information utilization methods and generation AI specializing in data utilization, as well as trainengineers and develop your own data utilization platform products. We also aim to expand our group's products.
「Management Solutions Business」
Focusing on group management, consolidated accounting, and business management, we aim to visualize and maximize acompany's "invisible value," and provide one-stop support from consulting to system planning, construction,
implementation, operation, and maintenance. In addition to in-house development, it is also possible to develop in
combination with software developed by other companies. In this segment, we will continue to create solutions that makethe most of the group's assets and provide solutions that provide management information that will improve corporate
value.
4©AVANT GROUP CORPORATION. All Rights Reserved.

INDEX
Ⅰ. Summary of financial results for the first quarter of FY June 2024
Ⅱ. Earnings and Dividend Forecast
Ⅲ. 'BE GLOBAL 2028' Actions to realise＊ Figures in this presentation are rounded down to the unit of display.

The information contained in this material regarding the business outlook and other forecasts and strategies etc. are forward-looking statements and are determined within
the range that could normally be predicted based on the information reasonably available to the Company at the time of preparation of this material. Investors should beaware of the risks, however, that actual results may differ from the business prospects described in the material due to the occurrence of extraordinary circumstances thatcannot usually be predicted or the occurrence of results that cannot usually be predicted. The Company will proactively disclose information that is considered material toinvestors, but investors should be advised not to make judgment based entirely on only the business prospects described in this material. This material should not be
copied or transferred for any purpose without permission of the Company.

©AVANT GROUP CORPORATION. All Rights Reserved.

5

I. Summary of financial results for the first quarter of FY June 2024

©AVANT GROUP CORPORATION. All Rights Reserved.

6

Results Highlights
 Net sales increased 12.3% year on year to 5,646 million yen, as the digital transformation promotion
business contributed significantly to the increase in sales.
 Fixed personnel costs increased due to an increase in the number of employees, and outsourcing
costs remained at a high level due to an increase in orders. On the other hand, one-time expenses
associated with group reorganization in the previous fiscal year decreased, and net sales of the digitaltransformation promotion business increased. As a result, sales amounted to 681 million yen (10.8%
increase compared to the same period last year).
(millions of yen)

FY6/24

YoY Variance

Q1

Yr earlier% chg

Net Sales

5,646

5,025

12.3%

Cost of Sales

3,273

2,776

17.9%

Gross Profit

2,373

2,249

5.5%

GPM

42.0%

44.8%

▲2.7pt

SG&A

1,692

1,634

3.5%

681

614

10.8%

12.1%

12.2%

▲0.2ptNet Income

482

370

30.2%

NPM

8.6%

7.4%

1.2pt

EBITDA

798

709

12.5%

14.1%

14.1%

0.0pt

Operating Income
OPM

EBITDA margin©AVANT GROUP CORPORATION. All Rights Reserved.

7

Progress to Full-Year Sales Targets
 FY6/24 Q1 cumulative sales reached 23.5% of the full-year plan, which is a high progress rate comparedto the last 3 years.
FY6/24
plan

Q1
FY24

FY23

¥24.0b

23.5%

23.5%

25.7%

26.4%

12.0%

¥21.4b

24.4%

14.6%
FY22

21.6%

25.1%

26.9%

¥18.7b

26.3%

15.2%
FY21

22.2%

24.9%

26.3%

¥16.2b

26.6%

3.5%
FY20

0.0%

23.7%

25.6%

20.0%

25.8%

40.0%
Q1

©AVANT GROUP CORPORATION. All Rights Reserved.

60.0%
Q2

Q3

¥15.6b

24.9%

80.0%

100.0%Q48

FY6/24 Q1 Operating Income Bridge (YoY) Although profits increased due to the effect of increased sales, the rate of increase in recruitment costs
and IT costs due to business expansion exceeded the rate of increase in sales. Other expenses
decreased due to a decrease in structural reform costs incurred in the previous fiscal year.
 Investment expenses to realize the software-driven strategy were approximately 100 million yen.
（millions of yen）

Higher GP fromsales growthHigher personnel
and recruiting
costs due toincreased hiringand higher
compensation.

Increase inoutsourcing costs
to meet demand
including hiringgap.

M3（Management Solutions Business）
M2（Digital Transformation Promotion Business）
M1（Consolidated Financial Disclosure Business）

Other
expenses

Investment
expenses

Increase in IT expenses
due to organization
expansion and support
for cloud computing+1.7b +27.6％
FY6/23 Q1
Operating
Income©AVANT GROUP CORPORATION. All Rights Reserved.

+0.6b +10.8％

FY6/24 Q1
Operating Income(Before investment
expenses)

FY6/24 Q1
Operating
Income
9

80M
13M
10M

Results by Business Segment
 Although sales increased in all segments, the digital transformation promotion business was the overall
driver.
 Regarding operating income, profits increased in the digital transformation promotion business andconsolidated financial results disclosure business, but profits decreased in the business management
solutions business.
 Orders and order backlog increased year on year in all segments
FY6/24
Q1
Net Sales

Yr earlier
1,747

% chg
1,631

7.1%

364

358

1.7%

Disclosure

OPM

20.8%

22.0%

▲1.1ptBusiness

Orders

1,821

1,697

7.3%

Order Backlog

4,023

3,482

15.5%

Net Sales

2,171

1,613

34.6%

348

196

76.9%

OPM

16.0%

12.2%

3.8pt

Orders

2,026

1,676

20.9%

Consolidated Financial

Digital Transformation
Promotion Business

Management Solutions
Business©AVANT GROUP CORPORATION. All Rights Reserved.

Operating Income(millions of yen)YoY Variance

Operating Income

Order Backlog

1,560

1,121

39.2%

Net Sales

1,863

1,851

0.6%

Operating Income

148

309

▲52.0%

OPM

8.0%

16.7%

▲8.7ptOrders

1,623

1,492

8.7%

Order Backlog

2,873

2,638

8.9%
10

Results by Business Segment (Factors)
 The digital transformation promotion business drove the increase in profits due to the effect ofincreased sales. In the consolidated financial disclosure business, sales increased due to strong
outsourcing business, but profit increase is limited as software business is still improving. In thebusiness management solutions business, sales growth was limited due to restrictions on sales
activities for a certain period of time due to business restructuring, and profits decreased due toinvestments aimed at shifting to the software business.
（Millions of yen）
7,000

Net Sales Variance

6,000
5,000
4,000

1,863
1,851

3,000
2,000
1,000

1,613

（Millions of yen）
+12m YoY
・Sales growth was suppressed due
to restrictions on sales activities for a 1,000
certain period due to organizational
900
restructuring.
800
・Overall segment sales increasedslightly due to increased sales in the700
CPM solutions business.

+558m YoY

2,171

・Demand is strong and the data
platform business continues toperform well

Operating Income
Variance

148
309

600
500
400

1,747

FY06/23 Q1

FY06/24 Q1

0Management Solutions Business
Digital Transformation Promotion Business
Consolidated Financial Disclosure Business©AVANT GROUP CORPORATION. All Rights Reserved.

+116m YoY

・Outsourcing business
continues to maintain highgrowth rate
・Improvement of software
business is still in progress andgrowth rate is limited

200

348
196

358

364

100
0
FY06/23 Q1・Sales increase effect is limited
due to slight increase in sales
・ Profit decreased due to increased
depreciation and amortization costs
due to software procurement andstrengthening of structure fortransition to software business+152m YoY

300
1,631

▲161m YoY

FY06/24 Q1

Management Solutions Business・ Although personnel costs andoutsourcing costs increased due tobusiness expansion, profits
increased significantly due to theeffect of increased sales.

+6M YoY・Although there is an effect ofincreased sales in the outsourcing
business, the effects of the pricing
strategy in the software businesshave not yet been reflected, so theincrease in profits will be limited.

Digital Transformation Promotion Business
Consolidated Financial Disclosure Business11

Results by Business Segment (Business management solutions ) Until now, business activities have been restricted for a certain period due to business restructuring, but
trends in flow orders and order backlog excluding stock orders are on a recovery trend.
( billions of yen )Orders received and backlog
30.0

10.6

10.5
9.5

25.0
20.0

12.0
10.0

8.9

8.0

6.9

15.0

6.0

10.0

4.0

5.0

12.0

15.5

13.8

15.1

14.7

2.0

0.0

0.0

FY06/23 Q1

FY06/23 Q2
Orders received(Flow)©AVANT GROUP CORPORATION. All Rights Reserved.

FY06/23 Q3
Orders received(Stock)

FY06/23 Q4

FY06/24 Q1

Orders backlog(Flow)
12Group Cost Structure Recruitment costs are increasing due to active recruitment activities, but outsourcing costs are increasing due to thegap between demand and the number of employees alone.
 IT costs increased due to increased headcount and support for cloud computing (for customers and internal
environment).
 Other costs decreased due to lower restructuring costs incurred in the previous year.

( millions of yen )YoY Variance

FY6/24
Q1

Yr earlier% chg

Net Sales

5,646

5,025

12.3%

Personnel expenses

2,883

2,518

14.5%

Recruitment expenses

130

90

44.7%

Outsourcing expenses

1,025

862

18.9%

IT expenses

314

221

41.9%

Office expenses

211

221

▲4.7%

Other expenses

399

496

▲19.5%

Total expenses

4,965

4,411

12.6%

Operating Income

681

614

10.8%

12.1%

12.2%

▲0.2ptOPM©AVANT GROUP CORPORATION. All Rights Reserved.

13

Quarterly GPP (Net Sales Growth + OPM) Trends
 Although the GPP declined in the immediately preceding quarter, it is on an upward trend again in thefirst quarter of the current financial year due to the recovery of the sales growth rate.
50.0%
45.0%
40.5%

40.0%

38.2%

36.4%

35.0%
30.0%

38.3%
32.4%

30.6%
26.3%

25.0%

26.3%

25.8%

21.4%

25.3%

26.3%
24.4%

23.8%

20.7%

20.0%

13.5%

10.2%

15.0%
10.0%
5.0%
0.0%
Q1

Q2

Q3

FY6/20

Q4

Q1

Q2

Q3

Q4

Q1

FY6/21

Q2

Q3

FY6/22Net Sales Growth Rate

Q4

Q1

Q2

Q3

FY6/23Q4

1Q
FY6/24

OPM

Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied.

©AVANT GROUP CORPORATION. All Rights Reserved.

14

Quarterly Net Sales by Segment
 Transient effects of business restructuring have been seen in the 4Q of the previous year and 1Q of thecurrent year in Business Management Solutions, but profitability tends to increase in the 2Q and 3Q.
( billions of yen )Net Sales( billions of yen )

70

14

60

12

50
40

21

21

18

17

18

Operating Income

4

4

10
8

1

3
30
20
10

16

17

19

18

21

4

16

17

17

17

17

Q1

Q2

Q3

Q4

Q1

0

2

4

3

6

1

1

3

1

3

4

4

3

3

Q2

Q3

Q4

Q1

0
FY6/23
Management Solutions Business
Digital Transformation Promotion Busines
Consolidated Financial Disclosure
Business©AVANT GROUP CORPORATION. All Rights Reserved.

Q1

FY6/24

FY6/23

FY6/24

Management Solutions Business
Digital Transformation Promotion Busines
Consolidated Financial Disclosure
Business15

Quarterly Margin Trends
 Although the gross profit margin declined in the 4Q of the previous year, partly due to the impact of certain
restrictions on sales activities related to business management solutions as a result of business restructuring, sales
increased in the 1Q of the current year and the gross profit margin is on the road to recovery. As a result, theoperating profit margin was at the same level as in the previous year.
(％)
60.0

50.0

45.1

47.8

47.3

42.1

47.6

48.3

49.5

47.9

44.5

50.5

44.9

45.4

33.5

32.7

44.8

47.2
44.0

42.0

42.0

30.0

30.0

12.1

12.1

Q4

Q1

40.0

30.0

28.3

30.8

33.0

32.2

33.4

31.2
27.4
20.3

20.0

13.8

14.3

14.8

Q1

Q2

Q3

15.1

27.9
20.4

27.8

27.8

21.7

22.7

14.5

13.3

11.4

32.5
25.7
21.4

12.7

12.2

Q4

Q1

24.1
19.9

10.0

0.0
FY6/20

Q4

Q1

Q2

Q3

Q4

Q1

FY6/21

Q2

Q3

FY6/22GPM

SG&A ratio

Q2

Q3

FY6/23

FY6/24

OPM

Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied.
©AVANT GROUP CORPORATION. All Rights Reserved.

16

Quarterly Recurring Sales and Recurring Sales Ratio The ratio of stock sales is increasing, and the absolute amount of stock sales is steadily increasing( millions of yen )
2,500

45.0%
38.6%

2,000

32.7%

33.4%

35.5%

34.5%

34.9%

35.7%

38.0%

36.9%

36.0%
33.1%

32.3%

35.5%

32.9%

33.8%

36.5%

34.2%

40.0%
35.0%
30.0%

1,500
25.0%

1,000

1,878

1,214

1,342

1,307

1,346

1,388

1,432

1,488

1,542

1,492

1,554

1,658

1,769

1,783

1,739

2,062

1,816

20.0%
15.0%
10.0%

500

5.0%
0

0.0%
Q1

Q2

Q3

FY6/20

Q4

Q1

Q2

Q3

Q4

FY6/21
Recurring Sales

Q1

Q2

Q3

Q4

FY6/22Q1

Q2

Q3

FY6/23Q4

1Q
FY6/24

Recurring Sales Ratio

Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied.
©AVANT GROUP CORPORATION. All Rights Reserved.

17

ROE Trends
 ROE* has recently been on a downward trend due to the impact of the build-up of net assets, but
improved in the 1Q of the current year due to dividend payments and share buy-backs.
 We aim to maintain an average of at least 20% through adherence to the Group's management principles,by further enhancing profitability and managing assets more efficiently.
(millions of yen)

Net Asset

ROE ※

(%)

14,00030%

12,00025%

19.8%

10,000

20%

8,000
15%
6,000
10%

4,000

5%

2,000
-

0%
Q1

Q2

Q3

FY06/20

Q4

Q1

Q2

Q3

FY06/21

Q4

Q1

Q2

Q3

FY06/22

Q4

Q1

Q2

Q3

FY06/23Q4Q1
FY06/24※Figures are calculated based on the past four quarters.
Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied.
©AVANT GROUP CORPORATION. All Rights Reserved.

18

Number of Group Employees Growing headcount to achieve sustainable growth(person)
1600
1,389

1400

1200
1,055
1000

950

965

963

Q1

Q2

Q3

1,030

1,030

1,047

Q1

Q2

Q3

1,107

1,123

1,128

1,139

Q4

Q1

Q2

Q3

1,226

1,240

1,263

1,270

Q4

Q1

Q2

Q3

1,414

800

600

400

200
FY06/20©AVANT GROUP CORPORATION. All Rights Reserved.

Q4

FY06/21

FY06/22

FY06/23Q4Q1
FY06/24

19

Financial Condition Trends
 In terms of total assets, cash and deposits decreased by ¥1,241 million due to payment of corporate taxes andacquisition of treasury stock, current assets decreased by ¥551 million, and total assets decreased. On the other hand,prepaid expenses increased by ¥189 million.
 Net assets decreased by ¥530 million to ¥11,797 million due to the acquisition of treasury shares of ¥449 million andthe payment of dividends from retained earnings of ¥564 million, while net income attributable to owners of theparent of ¥483 million was recorded.
 The capital adequacy ratio has remained at a high level.
Total Assets( millions of yen )20,00018,00018,705( millions of yen )17,942

16,617

14,00063.8
12,00016,00014,00012,000Net Assets and Equity Ratio
65.9

65.8

12,328

11,797

10,597

(％)
70.0
60.0

10,000

50.0

8,000

40.0

6,000

30.0

4,000

20.0

2,000

10.0

10,000
8,000
6,000
4,000
2,000
0

0
FY6/22©AVANT GROUP CORPORATION. All Rights Reserved.

FY6/23

FY6/24 Q1

0.0
FY6/22

FY6/23

FY6/24 Q1

Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition"(ASBJ Statement No. 29, March 31, 2020) and others have been applied.

20

Cashflow Trends
 Q1 Operating cash flow increased by ¥363 million year-on-year due to a decrease in income tax
payments and other payments compared to the previous year.
 Q1 Financing cash flow decreased by ¥525 million year-on-year as a result of the acquisition of treasury
shares of ¥449 million following the introduction of the RS Trust as an incentive scheme in anticipationof future share price increases.
( millions of yen )YoY Variance

FY6/24
Q1

Yr earlier% chg

Operating CF

△ 128

△ 491

363

Investment CF

△ 93

△ 111

17

Free CF

△ 222

△ 603

381

△ 1,019

△ 493

△ 525

Financial CF©AVANT GROUP CORPORATION. All Rights Reserved.

21

Ⅱ. Earnings and Dividend Forecast©AVANT GROUP CORPORATION. All Rights Reserved.

22

Earnings forecast for the fiscal year ending June 30, 2024
 For the fiscal year ending June 2024, sales are expected to increase by 12% year-on-year to 24,000 million yen.
Operating income and net income are expected to increase at a rate greater than the rate of increase in sales dueto the effect of increased sales and the reduction of the burden of restructuring costs incurred in the fiscal year
ending June 2023.

(Millions of yen)

FY6/23

FY6/24（Actual）（Forecast）

Variance

Chg

Net Sales

21,42424,000

2,576

12.0%

Operating Income

3,289

3,850

561

17.1%

OPM

15.4%

16.0%

-

-

Net Income

2,094

2,500

406

19.4%

©AVANT GROUP CORPORATION. All Rights Reserved.

23

Shareholder Returns
 In line with the policy of continuing to pay a stable dividend, the dividend per share for the year ending
30 June 2024 is expected to be 19 yen per share.
 DOE for the fiscal year ended June 30, 2023 was 4.9%, well above the TSE-listed company average (12months) of 3.1%.
(yen/share)

19.0

20.0
18.0

4.9%
15.0

16.0

8.0

5.00%

4.00%

11.0

12.0
10.0

5.3%

13.0

14.0

7.5

6.00%

9.0

＜Our shareholder return policy＞



Dividends are an important part of our shareholder
return policy

Avant aims to maintain if not grow the dividend by
focusing on indicators such as dividend on equity(DoE) which is less impacted by fluctuations in annual
earnings.



The Company’s DOE will always exceed the averageof all companies listed on the Tokyo Stock Exchange,
and will aim to achieve 8% within the period of the
new medium-term management plan.

3.00%

2.00%

6.0
4.0

1.00%

2.0
0.0

0.00%
2019

2020

2021

2022

Dividends per share…

©AVANT GROUP CORPORATION. All Rights Reserved.

2023
DOE

2024
(Forecast)24

Ⅲ. 'BE GLOBAL 2028' Actions to realise©AVANT GROUP CORPORATION. All Rights Reserved.

25

BG28 Outlook
 Increase corporate value by improving fundamentals through net income growth (3x) and byincreasing future cashflow through a shift to a software focus

Most importantcritical successfactor (CSF) for
promotion ofgroup strategy©AVANT GROUP CORPORATION. All Rights Reserved.

26

BG28 Focus Markets
 Position self in management DX market for companies where enhancing corporate value is a serious
issue
New segment
TAM (Total Addressable Market) andname

positioning of each market

Know-how
ServiceHigh

Investor Perspective Next
Generation Management
Information Platform Market

M1

Latent SAM Service Available Market

Deepen existing
marketFY6/23

Consolidated Financial
Disclosure Business

CAGR
17.3％

FY6/28¥14bn¥6.7bn¥272bnBI, Data Infrastructure& DX Market

（

M3

M2

¥690bn-¥720bn

M2

Capture growth market

Consolidated
Financial Disclosure
Market¥112.3bn

M1

Capture growthmarketClient base
SoftwareDeepen existing
marketLow
Realization risk

High

FY6/23Creation of newmarketDigital Transformation Promotion Business

CAGR
17.8％

FY6/28¥16.3bn¥7.2bnNew segment
name

M3

）

Low

New segment
name

Creation of new market

FY23¥7.9bnManagement Solutions Business

CAGR
13.2％

FY28

¥14.7bn

Management DX market©AVANT GROUP CORPORATION. All Rights Reserved.

27

DIVA releases TRINITY BOARD (alpha version) to promote DX for Japanese boards of directors.
 The sale of this product is the first step in the promotion of the 'Software Driven Strategy' and willcontribute to software gross profit, which is the most important CSF in the promotion of the Group's
strategy.
 Aiming to raise the Group's profile among board members, who are responsible for increasing corporate
value, and also to strengthen the customer base.
Development background••

What’s

The company and DIVA jointly initiated thedevelopment of this product to contribute to the
DX of the Japanese board of directors by solving
the problems faced by boards and their operation.
The product was released after it was perfected
through feedback from board members andoperating departments while actually being usedby the company's board of directors, and after thecompany itself realised its effectiveness and wasconvinced that the product could contribute toother listed companies.

•

Cloud software to drive DX for the board•

The consolidation of all information relating to the Board of
Directors enables the Board of Directors to enhance
discussion and decision-making, significantly reduce theoperational burden on the departments in charge ofrunning the Board of Directors, and improve efficiency andsecurity.

•

As it can also be applied to the boards of directors of groupcompanies, it can also help to strengthen group governanceby making the status and content of their board meetings
more transparent when applied to major subsidiaries andoverseas subsidiaries.

11 October 2023 Press release.
©AVANT GROUP CORPORATION. All Rights Reserved.

https://www.diva.co.jp/news/20231011/
28

DIVA releases TRINITY BOARD (alpha version) to promote DX for Japanese boards of directors.
 Extend software × BPO, which is DIVA's business model and one of the complete business models that
the Group is aiming for, to the Board of Directors.

©AVANT GROUP CORPORATION. All Rights Reserved.

29

DIVA and Ernst & Young ShinNihon LLC commercialise a jointly developed solution to
improve efficiency in handling consolidated audits.
 This initiative will expand DIVA's client base to include audit firms and contribute to software grossprofit, the most important CSF for promoting the Group's strategy.

Functions and benefits of this solution

Development background•

DIVA and Ernst & Young ShinNihon LLC focus on
automation of audit work through digital technology.

•

A joint development project was launched in 2022
to reduce the burden on the consolidated accounts
process of companies, which is a series of tasks up
to the completion of the audit by the auditing firm,
and to improve the work efficiency of those
involved in the audit.

•

Promoting pilot operations and enhancing solutions
for practical use as a pilot project.

•

Eliminates the need to pass data back and forth between
companies and auditors via email and web storage, andenables seamless data linkage even for multiple updates ofclosing data during the tight schedule of the closing period,
reducing man-hours and time.

31 October 2023 Press release.
©AVANT GROUP CORPORATION. All Rights Reserved.

https://www.diva.co.jp/news/20231031/
30

AVANT updates its business management system AVANT Cruise. Standard package functionality
for performance management (budget, actual and forecast) - Next generation business
management system that connects data, aligns management information and reaches all people -.
 Standard package functions to optimise performance management processes and enable the system torespond continuously to changes in business management, thereby increasing software gross profit,
which is the most important CSF for promoting the Group's strategy.
Functions and benefits of this solution

Development background•

Modern group business management increasingly requires
diverse information, not just financial information, toincrease corporate value and ensure sustainable corporate
growth.

•An increasing number of companies are systemising
performance management to solve the problems of thiscomplexity and huge workload, and are aiming to improvethe efficiency and sophistication of their operations, butusers in the accounting and corporate planningdepartments themselves are unable to expand system
functions, and the resulting cost burden is increasing,making it difficult for them to keep up with changes inbusiness management in a speedy manner.

•

Based on examples of performance management systems that
our company, which specialises in the area of business
management, has supported the introduction of in the past,
we provide the performance management package functions
that customers require.
■ Management function
1. P/L input screen
2. Rolling forecasting function
3. Standard business
management report
4. Organisational change
function
5. Multi-currency conversion
supportetc.

31 October 2023 Press release.
©AVANT GROUP CORPORATION. All Rights Reserved.

■Data collaboration
infrastructure
1. data linkage function
2. mapping function (codeconversion function)
3. Layout conversion function
4. Extension functionsetc.

https://www.avantcorp.com/news/2023/10/31/11238/
31

Reference : Company overview©AVANT GROUP CORPORATION. All Rights Reserved.

32

Company Introduction
Name：AVANT GROUP CORPORATION
Inception：May 26, 1997
Representative：Tetsuji Morikawa, President and Group CEO
Market Cap： Approximately 55 billion yen （ TSE Prime, 3836 ）Main SoftwareGroup Companies

Segment Information

Percentage of sales for eachsegment FY23

【Consolidated Financial Disclosure Business】

In addition to developing the consolidated accounting system"DivaSystem LCA" and related products "DivaSystem Dx3-Advance"and "DivaSystem FBX", we are engaged in outsourcing business suchas consolidated and non-consolidated financial settlement operations
using "DivaSystem" to comprehensively support the corporate value
creation process through information disclosure.

【Management Solutions Business】

Third party

With group business management, consolidated accounting, andbusiness management as the pillars, we provide one-stop support forcustomers' "visualization and maximization of invisible corporate
value" from consulting to system planning and construction,
introduction support, operation and maintenance, and develop
software that will be the solution in-house. We also provide systemdevelopment and implementation support that combines softwaredeveloped by other companies with our own products.

Net sales¥21.4 bDigitalTransformation Promotion
Business

Consolidated
Financial
Disclosure
Business

31％

33％

Management
Solutions Business

36％【Digital Transformation Promotion Business】

We support the promotion of digital transformation and data-driven
management of companies by providing data platforms that organize
and integrate internal and external data and AI and BI solutions thatanalyze, predict, and visualize data through consulting and systemdevelopment.

©AVANT GROUP CORPORATION. All Rights Reserved.

33

Avant Group Philosophy©AVANT GROUP CORPORATION. All Rights Reserved.

34

The Avant Group Moves to the Next Five Years to Realize BE GLOBAL
Established the top share in Japan in the consolidated
accounting business

Introduction of holding company system andexpansion of group management■ Corporate■ Introduction of Internal Control
Governance Code
Reporting System (J-SOX)（Jun. 2015~）（Apr.2008~）■ Voluntary Applicationof Disclosure under IFRS（FY Mar. 2010~）■ Start of reporting inconsolidated accounting（FY Mar. 2000~）■Mandatory quarterly
reporting（FY Apr. 2003~）

Government-led
initiatives

BE GLOBAL(¥mn)■ Publication of Business Restructuring
Practice Guidelines（Jul. 2020～）

Dec. 2018■ DivaSystem clients baseexceeded 1,000 companies

Aug. 2007■ Users of DivaSystem reached 500

25,000■ Group Governance Practice
Guidelines■ Establishment of a study group on（Sep. 2019～）
fair acquisition （2022～）

Oct 2022■Reorganization

21,424Mar. 2018
Change the Market
Listing to the First
Section of the TSE（currently TSE Prime
Market)20,000Feb. 2007
Listed at OSE Hercules(currently TSE GrowthMarket)15,000

Oct.2013■Changed the trade name from DIVACORPORATION to AVANT CORPORATION■Established new DIVA CORPORATION as aresult of the Incorporation-type company split

10,0005,000

Net Sales

12,110OI

May 1997
Founding of DIVA Inc.

3,289

1,631

0

（FY）

97

98

99

00

01

02

©AVANT GROUP CORPORATION. All Rights Reserved.

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

23
35

Segment Reorganization
BeforeOld Segments

After

Corporation

Main Business

Main BusinessCorporation

ID

Disclosure Net

Disclosure Net

ID

Consolidated
Accounts
SoftwareConsolidated
Accounts
SoftwareConsolidated
Accounts Consulting& Operations

Outsourcing

Management Solutions
Business(Software & consulting)Consolidated
Accounts Consulting& Operations

CPM*

Management Solutions
Business(Software & consulting)

BI＆Data
Platforms

CPM

Outsourcing

BI＆Data
Platforms

Group
Governance
Former DIVA

DigitalTransformation
Promotion

ZEAL

Outsourcing

FIERTEDIVANew Segments

Consolidated
Financial
Disclosure
Business

AVANT

Management
Solutions
Business

ZEAL

DigitalTransformation
Promotion Business※CPM：Corporate Performance Management©AVANT GROUP CORPORATION. All Rights Reserved.

36

Numerical Summary
Net Sales／Sales Growth Rate
25,00021,42418,70320,00015,00010,00020.0%
14.5%15.0%

15.2%
16.2%

25.0%

16,236

15,691

14,077

10.0%
5.0%

3.5%

0

0.0%
FY6/19(百万円)

FY6/20FY6/21Net Sales

FY6/22

2,000
1,500

3,289

30.0%
25.0%

2,278

20.0%
17.2%

17.4%

14.5%

10.0%
5.0%

500
0

0.0%
FY6/20

25.0%

1,200

20.7%

FY6/21

FY6/22

Operating Income©AVANT GROUP CORPORATION. All Rights Reserved.

1,055

1,107

1,226

800

15.0%
10.0%

600

5.0%

400

0.0%
FY6/19FY6/20FY6/21

FY6/22

FY6/23200
0
FY6/19FY6/20FY6/21

FY6/22

FY6/23Market Cap(Billions of yen)

30.0%

70

24.6%
25.0%

23.5%

23.6%
18.3%

20.0%

61.8

60

21.1%

15.0%

50.5

50
40

37.8

38.9

FY6/19FY6/20

53.1

30

10.0%

20

5.0%

10

FY6/23
OPM

938

1,000

15.4%15.0%

1,000

FY6/19

26.0%

30.0%

1,389

1,400

GPP

2,796
1,966

1,600
29.9%

ROE
3,247

14.0%

32.6%

30.2%

Sales Growth Rate

3,500

2,500

35.0%

FY6/23Operating Income/OPM

3,000

40.0%

(person)

20.0%

11.5%

5,000

Number of employees

GPP（Sales Growth Rate＋OPM）(Millions of yen)0

0.0%
FY6/19FY6/20FY6/21

FY6/22

FY6/23

FY6/21

FY6/22

FY6/2337

Trends in companies that have introduced Avant Group Software Product With the tightening of disclosure regulations, consolidated accounting system LCA leads the number of
introductions.

©AVANT GROUP CORPORATION. All Rights Reserved.

38

Customer base of consolidated accounting system “LCA”
 More than 1,100 companies have sold ※１
 FY2023 consolidated accounting software market share is 43.5% ※２
 From institutional accounting to budget and management accounting, we support thestrengthening of corporate governance※１ As of the end of June 2023
※２ Fuji Chimera Research Institute "Software Business New Market 2023 Edition" Consolidated Accounting Management Software Market Share©AVANT GROUP CORPORATION. All Rights Reserved.

39

Cautionary Statement Concerning Forward-Looking Statements
The information in this document regarding business forecasts and other future projections and strategies isbased on judgments made by the Company based on information reasonably available to it at the time thisdocument was prepared and within the scope of what is normally expected. However, actual results may differ
materially from those discussed in the forward-looking statements due to the occurrence of extraordinary
circumstances or unforeseeable results that could not be foreseen in the normal course of events. While weendeavor to actively disclose information that we believe is important to investors, we urge you not to baseyour decisions solely on the earnings forecasts contained in this document. Please do not reproduce ortransmit this material for any purpose without permission.

■Contact

Avant Group Corporation, IR Office
ir@avantgroup.com©AVANT GROUP CORPORATION. All Rights Reserved.

40