This is an unofficial translation. In case of any difference in meaning between the original Japanese text and the English translation, the Japanese text shallprevail.

Consolidated Summary Report under Japanese GAAP
for the fiscal year ended June 30, 2024
Company Name:
Code Number:
Representative:
For inquiry:

August 2, 2024
Stock exchange listings: Tokyo
URL: https://www.avantgroup.com/

AVANT GROUP CORPORATION
3836(Title) President, Group CEO(Name) Tetsuji Morikawa(Title) Director, Group CFO(Name) Naoyoshi Kasuga

Annual General Meeting of Shareholders date: September 25, 2024
Securities report issue date: September 20, 2024
Supplementary information for financial statements: Available
Explanatory meeting to be held: Yes (for analysts)

TEL: (03) 6388-6739

Dividend payment date: September 26, 2024

(Millions of yen, rounded down to the nearest unit)

1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2024
(1) Consolidated results of operations
Net sales
Fiscal Year
ended June 30, 2024
ended June 30, 2023
Comprehensive income (loss)

EBITDA*

Operating profit%%

24,41921,424

14.0
14.5

4,642
3,737

for the fiscal year ended June 30, 2024

Net profit per
share
Fiscal Year
ended June 30, 2024
ended June 30, 2023

%

24.2
4.3

4,099
3,289

2,925 million yen [33.7%]

Diluted net
profit per share(Percentages indicate year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

24.6
1.3

%

4,121
3,265

26.2
9.3

for the fiscal year ended June 30, 2023

%

2,850
2,094

36.1
2.4

2,187 million yen [3.2%]

Ratio of net profit to Ratio of ordinary
shareholders’ equity profit to total assets

Ratio of operating
profit to net sales

yen

yen

%

%

%

76.62
55.65

-

22.3
18.3

20.3
18.5

16.8
15.4

(Reference) Share in profit of associated company for the fiscal year ended June 30, 2024: - million yen for the fiscal year ended June 30, 2023: - million yen(Notes) EBITDA is derived by adding depreciation and amortization of goodwill to operating profit.

(2) Consolidated financial condition
Total assets
As ofJune 30, 2024
June 30, 2023

Net assets

21,896
18,705(Reference) Net assets attributable to the company’s shareholders

Equity ratio
13,293
12,328

As of June 30, 2024

13,293 million yen

Net assets per share
%

yen

60.7
65.9

362.95327.51

As of June 30, 2023

12,328 million yen(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at the end of the year
Fiscal Year
ended June 30, 2024
ended June 30, 2023

3,680
2,175

(630)
(795)

(1,981)(507)

11,976
10,881

2. Dividends on Common Shares
Dividends per share
1st
2nd
3rd
Fiscalquarter-end quarter-end quarter-end
year-end
Fiscal Year Ended
June 30, 2023
June 30, 2024
June 30, 2025
(Forecast)

Annual

Total
Dividends(Annual)Dividend
Dividend on
payout ratio net assets ratio(Consolidated) (Consolidated)

yen

yen

yen

yen

yen

million yen

%

%

-

0.00
0.00

-

15.00
19.00

15.00
19.00

564
708

27.0
24.8

4.9
5.5

-

0.00

-

-

25.00

-

3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2025
(Percentages indicate year-on-year changes)

Net sales
Fiscal Yearending June 30, 2025

Operating profit

Profit attributable toowners of parent

Ordinary profit

Net profit
per share

million yen%

million yen%

million yen%

million yen%

yen

28,800

17.9

4,900

19.5

4,900

18.9

3.350

17.5

91.46

(Note) Since the Company manages its operations on an annual basis, consolidated earnings forecasts for the second quarter (cumulative) are not provided. For details,
please refer to “1. Qualitative Information on Financial Results (4) Earnings Forecasts” on page 8 of the attached document.

Notes(1) Changes in significant subsidiaries during the period (changes in “Specified Subsidiaries” (Tokutei Kogaisha) accompanying changes
in scope of consolidation): No
Newly added to the scope of consolidation: nil

Newly deleted from the scope of consolidation: nil(2) Changes in accounting policies, accounting estimates and restatement:(i) Changes in accounting policies due to revision of accounting standards: No(ii) Changes in accounting policies due to reasons other than item (i) above: No(iii) Changes in accounting estimates: No(iv) Restatement: No(3) Number of issued shares (common shares)(i) Total number of issued shares including treasury
shares(ii) Number of treasury shares held(iii) Average number of shares

As of June 30, 2024

37,645,851shares

As of June 30, 2023

37,645,851 shares

As of June 30, 2024

1,019,398 shares

As of June 30, 2023

2,998 shares

37,206,951 sharesFiscal Year
ended June 30, 2023

37,636,218 sharesFiscal Year
ended June 30, 2024

* This report is exempt from the audits of CPAs or Audit firms.
* Explanation of the appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on information currently available to the Company
and on certain assumptions deemed to be reasonable. These statements are not guarantees by the Company regarding future performance.
Actual results may differ materially from the forecast depending on a range of factors. Please refer to “1. Qualitative Information on
Financial Results (4) Earnings Forecasts” on page 8 of the attached document for the assumptions behind the earnings forecasts andnotes for using earnings forecasts.

Accompanying Materials – Table of Contents
1. Qualitative Information on Financial Results ....................................................................................................... 2(1) Management’s Comments on Business Operations for the Fiscal Year under Review ................................... 2(2) Comments on Financial Position for the Fiscal Year under Review ............................................................... 6(3) Comments on Cash Flow for the Fiscal Year under Review ........................................................................... 6(4) Earnings Forecasts ………………………....................................................................................................... 8
2. Basic Approach to the Selection of Accounting Standards …………….................................................................. 8
3. Consolidated Financial Statements and Notes ………………………................................................................... 9(1) Consolidated Balance Sheets ………………….......................................................................................... 9(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .................... 11(3) Consolidated Statements of Changes in Net Assets …………....................................................................... 13(4) Consolidated Statements of Cash Flows ……………………..................................................................... 15(5) Notes to Consolidated Financial Statements …………………..................................................................... 17(Note on the Going Concern Assumption) ………….............................................................................. 17(Notes Concerning Changes in Presentation Methods) ............................................................................ 17(Notes on Additional Information) ……….............................................................................................. 17(Revenue Recognition) …………............................................................................................................ 18(Segment Information) ……………………............................................................................................. 19(Per Share Information) …………........................................................................................................... 22(Subsequent Events) ……………........................................................................................................... 23- 1 -1. Qualitative Information on Financial Results(1) Management’s Comments on Business Operations for the Fiscal Year under Review
Consolidated financial results for the fiscal year under review are as follows.
Fiscal Year ended June30, 2023(Millions of yen, rounded down to the nearest unit)
Year-on-Year Change
Fiscal Year ended June30, 2024
Amount%Net sales

21,424

24,419

2,995

14.0

Operating profit

3,289

4,099

809

24.6

Ordinary profit

3,265

4,121

855

26.2

Profit attributable to owners ofparent

2,094

2,850

756

36.1

Consolidated net sales were 24,419 million yen (up 14.0% year-on-year) due to strong growth in the Digital
Transformation Promotion business, against a backdrop of investment needed to maintain and enhancecompetitiveness through improvements to corporate management and business activities using data and digitaltechnology. This is becoming a medium- to long-term trend among Japanese companies (our customers). In addition,
the Outsourcing business also maintained high growth.
From the first quarter of this fiscal year, the Company revised the categorizations for its business segments andchanged the previous reportable segments of “Group Governance Business,” “Digital Transformation Business,” and“Outsourcing Business” to the “ Consolidated Financial Disclosure Business,” the “Digital Transformation
Promotion Business,” and the “Management Solutions Business.” In light of this change, results for each reportablesegment for the previous fiscal year were restated in line with the new reportable segments.
The Consolidated Financial Disclosure Business supports value creation through development and maintenance ofour proprietary software “DivaSystem” for consolidated management support and consolidated accounting, as wellas the provision of outsourcing of consolidated and non-consolidated financial statements using this software. With
regards the segment’s position within the Group, we aim to establish a business model that combines both softwareand outsourcing businesses.
The Consolidated Financial Disclosure Business also includes information search services for disclosure documents
provided by Internet Disclosure, Inc, primarily to audit firms.
The Digital Transformation Promotion Business supports the promotion of digital transformation at companies anddata-driven management through consulting and system development services, including the provision of a data
platform for utilizing all kinds of data related to companies, to AI and BI solutions that can analyze, predict andenable data visualization. From major cloud vendors to multi-cloud compatible software, customers can find out
about the latest data utilization methods and generative AI specializing in data utilization, as well as train engineersand develop their own data utilization platform products. The suite of products offered is also slated for expansion.
The Management Solutions Business has a focus on group management, consolidated accounting, and businessadministration and aims to identify and maximize hidden value at companies and offers one-stop support services
from consulting to system planning, building, installation, and maintenance. In addition to in-house development, it
is also possible to develop in combination with software from other companies. The role of this business is tomaximize the Group’s assets and continue to generate solutions that will provide management data that is useful forthe enhancement of corporate value.
Profits were boosted by a decrease in one-time expenses incurred in the previous fiscal year as a result of group
reorganization and sales growth in the Digital Transformation Promotion business, set against increased fixed
personnel expenses due to higher headcount, outsourced processing expenses as a result of the increase in orders, andinvestment-related expenses to realize future growth, Operating profit was 4,099 million yen (up 24.6% year-onyear), ordinary profit was 4,121 million yen (up 26.2% year-on-year), and net income attributable to owners of theparent was 2,850 million yen (up 36.1% year-on-year)- 2 -The status of each reportable segment is as follows.
(i) Net sales(Millions of yen, rounded down to the nearest unit)
Year-on-Year Change
Fiscal Year ended June30, 2024
Amount%Fiscal Year ended June30, 2023
Consolidated Financial Disclosure
Business
Digital Transformation Promotion
Business
Management Solutions BusinessEliminationofinter-segment
transactions
Consolidated Net sales

6,902

7,537

635

9.2

7,272

8,846

1,574

21.7

7,883

8,518

634

8.1

(633)

(483)

150

-

21,424

24,419

2,995

14.0

(ii) Operating profit(Millions of yen, rounded down to the nearest unit)
Year-on-Year Change
Fiscal Year ended June30, 2024
Amount%Fiscal Year ended June30, 2023
Consolidated Financial Disclosure
Business
Digital Transformation Promotion
Business
Management Solutions BusinessCorporate Expenses and Eliminationof inter-segment transactions
Consolidated operating profit

1,586

1,840

250

16.0

1,118

1,633

515

46.1

1,321

1,407

86

6.6

(736)

(782)

(46)

-

3,289

4,099

809

24.6

In the Consolidated Financial Disclosure business, the software business has been improving under the new structure
through a review of pricing strategies and strategically reducing intra-group contract development transactions for
product maintenance and other operational support, while the outsourcing business continued to maintain high growthand contributed to revenue growth. As a result, net sales increased to 7,537 million yen (up 9.2% year-on-year). In
terms of profitability, the outsourcing business drove growth, resulting in an increase in operating profit to 1,840
million yen (up 16.0% year-on-year).
In the Digital Transformation Promotion Business, the need to utilize data for decision-making related to
management and business promotion continues to accelerate, and the number of projects related to cloud data
platform construction is on the rise, with an increase in large-scale projects and in the scale of ongoing projects. The
increase in the number of large-scale projects and the expansion of the scale of ongoing projects was a significant
driver of revenue growth. As a result, net sales increased 21.7% year on year to 8,846 million yen (up 21.7% yearon-year). Although personnel costs increased due to efforts to secure human resources to provide services along withongoing rises in requisite subcontracting expenses, this was offset by the increased revenue, and operating profit was
1,633 million yen (up 46.1% year-on-year), significantly higher than the same period of the previous year.
In the Management Solutions Business, while the transformation of the profit structure, mainly in the software
business, is still in progress, results have started to emerge in the area of group business management solutions, andthe fourth quarter was affected by a significant increase in sales compared to the previous year's single quarter due tolarge project orders and other factors, Sales rose to 8,518 million yen (up 8.1% year-on-year). In terms of profitability,
operating profit increased to 1,407 million yen (up 6.6% year-on-year), despite cost-increasing factors such as higher
personnel costs due to securing personnel for future growth and increased system development costs and depreciation
costs associated with strengthening the software business.

- 3 -The number of employees on a consolidated basis was 1,522 at the end of the fiscal year, up 133 from the end of theprevious fiscal year.
Number of Employees of the Group (by Quarter)

The status of orders received and sales by segment for the fiscal year under review is as follows.
(i) Orders Received
Fiscal Year ended June 30,
2023
OrdersOutstanding
Received
OrdersConsolidated Financial
Disclosure Business
Digital Transformation
Promotion Business
Management Solutions
Business
Elimination of inter-segment
transactions
Total(Millions of yen, rounded down to the nearest unit)
Year-on-Year Change
Fiscal Year ended June 30,
2024
AmountOrdersOutstanding
OrdersOutstanding
Received
Orders
Received
Orders

7,435

3,949

8,269

4,681

833

731

7,919

1,705

9,211

2,069

1,292

364

7,999

3,113

9,410

4,006

1,411

892

(978)

(1,746)(711)(1,974)

267

(228)

22,375

7,021

26,180

8,782

3,805

1,760

(ii) Net Sales
Fiscal Year ended June 30,
2023
Consolidated Financial
Disclosure Business
Digital Transformation
Promotion Business
Management Solutions
Business
Elimination of inter-segment
transactions
Total(Millions of yen, rounded down to the nearest unit)
Year-on-Year Change
Fiscal Year ended June 30,
2024
Amount
%

6,902

7,537

635

9.2

7,272

8,846

1,574

21.7

7,883

8,518

634

8.1

(633)

(483)

150

-

21,424

24,419

2,995

14.0

- 4 -

Quarterly trends in net sales and operating profit are as follows.
Net sales and operating profit for the last four quarters(Millions of yen, rounded down to the nearest unit)
Fiscal Year ended June 30, 2024
First quarter
Net sales

Second quarter

Third quarter

Fourth quarter

5,646

6,096

6,063

6,613

Operating profit

681

1,209

1,185

1,023

Operating profit margin
(%)

12.1

19.8

19.5

15.5

Net sales, operating profit, and operating profit margin (by Quarter)- 5 -(2) Comments on Financial Position for the Fiscal Year under Review
Total assets at the end of the current financial year amounted to 21,896 million yen (up 3,191 million yen from theend of the previous financial year). This was mainly due to a 557 million yen increase in cash and deposits, a 1,477
million yen increase in notes, accounts receivable and contract assets, a 296 million yen increase in prepaid expenses,
and a 264 million yen increase in investment securities.
On the other hand, total liabilities amounted to 8,603 million yen (up 2,226 million yen from the end of the previous
financial year). This was mainly due to a 166 million yen increase in notes and accounts payable, a 337 million yen
increase in accounts payable and accrued expenses, a 630 million yen increase in income taxes payable, a 549 million
yen increase in contract liabilities and a 281 million yen increase in provision for bonuses.
Total net assets amounted to 13,293 million yen (up 965 million yen from the end of the previous year), mainly due
to net profit attributable to owners of the parent of 2,850 million yen, the acquisition of treasury shares of 1,396
million yen and the payment of dividends from surplus of 564 million yen. As a result, the equity ratio was 60.7%(65.9% at the end of the previous financial year), a decrease of 5.2 percentage points compared to the previous
financial year, but we believe we still have a highly stable financial balance with low interest-bearing liabilities.
(3) Comments on Cash Flow for the Fiscal Year under Review
Cash and cash equivalents (‘funds’) at the end of the financial year under review increased by 1,095 million yen to
11,976 million yen compared to the end of the previous financial year. The status of each cash flow and their factors
are as follows.
< Cash flows from operating activities >Cash acquired as a result of operating activities amounted to 3,680 million yen. (Funds acquired in the previous
financial year amounted to 2,175 million yen).
The main positive factors were income before income taxes and minority interests of 4,131 million yen, depreciation
and amortization of 543 million yen, increase in accounts payable and accrued expenses of 400 million yen, refundof income taxes of 565 million yen and increase in provision for bonuses of 281 million yen, while the main negative
factors were increase in trade receivables and contract assets of 1,476 million yen The main factors of decrease wereincome taxes paid of 1,273 million yen.
< Cash flows from investing activities >Cash used as a result of investing activities amounted to 630 million yen. (Funds used in the previous financial year
amounted to 795 million yen).
The main components of expenditure were 159 million yen for the purchase of property, plant and equipment, 222
million yen for the purchase of intangible assets and 189 million yen for the purchase of investment securities.
< Cash flows from financing activities >Cash used as a result of financing activities amounted to 1,981 million yen. (Funds used in the previous financial
year amounted to 507 million yen).
The main components of expenditure were expenditure of 1,396 million yen on the acquisition of treasury sharesand cash dividends paid of 564 million yen.

- 6 -In our group, cash flow from operating activities in the first quarter is typically at a low level due to the payment ofincome taxes and the payment of performance-based bonuses to officers and employees. It then gradually increases
from the second quarter onward, and is usually positive over the full fiscal year (In the fiscal year under review,
upfront payments in the first half of the year were larger than a typical fiscal year due to factors such as increases insales of consulting services, which require working capital upfront, and bonuses and income taxes paid).
Maintenance fees in the Management Solutions Business and commissions paid for the Outsourcing Business arepaid annually in advance of the provision of services, so as a result, the business model requires almost no working
capital. On the other hand, in the Digital Transformation Promotion Business as outsourcing costs and other expenses
are paid in advance, working capital demand will increase as sales grow. However, by concentrating the excess fundsof the Group as a whole in the holding company, the Group is able to smoothly extend funds across the Group. In
addition to the total amount of cash held, the Group has established a commitment line totaling 3.5 billion yen withbanks with which it does business. Accordingly, at present there are no concerns about funding.
Operating cash flow by Quarter (Millions of yen)

- 7 -(4) Earnings Forecasts
In August 2023, the company announced a new medium-term management plan, a five-year plan (five-year targets
to be achieved by the end of the year 2028). In FY2025, the second year of the plan, the Group will continue topromote measures to realize the Avant Group's materiality (‘to become a software company that helps increase
corporate value’), with a focus on strengthening the software business. In the early stages of the new medium-term
management plan period, the Group is not yet at a stage where it will reap the full benefits of the Group's
reorganization, and it is expected that the effects will gradually become apparent over the five-year period. In addition,although the organization of the Group's restructuring has been completed, the Group intends to continue to makegrowth investments necessary to realize materiality in a continuous and flexible manner, particularly in the Group's
operating companies.
Although external factors such as exchange rate fluctuations and the risk of a downturn in overseas economies may
affect the Group's performance, we believe that the needs of the Group's businesses, such as the increasing numberof companies wishing to utilize data for management and strengthen group governance, will continue to increase overthe medium to long term. The Group's business needs are expected to continue to increase in the medium to longterm.
As a result, the Group expects to achieve sales of 28,800 million yen and operating profit of 4,900 million yen in
the next financial year.
In accordance with the existing dividend policy, the ratio of dividends to net assets will be increased. We intend toalways exceed the average dividend for all listed companies, while as well as keeping in mind stable dividends (inprinciple, dividends per share should not fall below the level of the previous year). The dividend for the year underreview will remain unchanged from the forecast at 19 yen per share and will be proposed to the General Meeting of
Shareholders of the Company to be held on 25 September 2024.
For the next fiscal year, the dividend policy will remain unchanged and the dividend forecast is 25 yen per share.
The aim is to achieve an 8% ratio of dividends to net assets, which is the target set out in the new medium-term
management plan.
Dividends (adjusted for stock splits)

2. Basic Approach to the Selection of Accounting Standards
For the time being, the Group’s policy is to prepare consolidated financial statements in accordance with Japanese
GAAP. The Group's policy is to adopt IFRS as appropriate, taking into consideration various circumstances in Japanand overseas.

- 8 -3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Thousands of yen)
As of June 30, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Securities
Work in process
Raw materials and supplies
Prepaid expenses
Accounts receivable – other
Deposits paid
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Construction in progress
Total property, plant and equipment
Intangible assets
Trademark rights
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Leasehold and guarantee deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 9 -As of June 30, 2024

10,317,243

10,874,892

2,963,130

4,440,280

500,000
13,620112,676
824,824
573,606315
49,879(3,622)
15,351,673

500,000
5,880
81,871
1,120,837
518,540
527,976
135,407(4,141)
18,201,545

417,933(157,247)
260,685843(843)
0669,026(494,223)
174,803
51,978487,466

561,381(233,278)
328,102
1,956
(936)
1,020
748,417(588,552)
159,864
488,987

728,306
225
728,532

42,527609,376
225
652,129772,046
66,028575,243590,209134,393
2,137,920
3,353,919
18,705,593

1,037,000
19,118630,981
728,290
138,8532,554,243
3,695,360
21,896,905

(Thousands of yen)
As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Lease liabilities
Accounts payable - other, and accrued expenses
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on orders received
Allowance for stock benefits
Accrued consumption taxes
Deposits received
Other
Total current liabilities
Non-current liabilities
Lease liabilities
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeTotal net assets
Total liabilities and net assets

634,758
12,257
512,708
354,192
2,796,086
1,038,329

801,391
6,005
850,208984,232
3,345,483
1,319,768

172,380

170,155

61,594
184,269
142
6,122,119

17,912
129,618
461,061
221,975
8,307,815

6,039
210,900
38,016
254,956
6,377,076

295,362
295,362
8,603,177

345,113
281,913
11,477,458(608)
12,103,876

345,113
281,913
13,763,738(1,396,622)
12,994,141

183,925

224,019302
40,411

2,862
72,704

224,639

299,586

12,328,516
18,705,593

13,293,728
21,896,905

355,400- 10 -

As of June 30, 2024

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Employees' salaries and bonuses
Provision for bonuses
Provision for bonuses for directors (and other officers)
Legal welfare expenses
Share-based payment expenses
Outsourcing expenses
Rent expenses on land and buildings
Utilities expenses
Commission expenses
Depreciation
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on investments in investment partnerships
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in investment partnerships
Commission expenses
Foreign exchange losses
Share issuance costs
Compensation for damage
Other
Total non-operating expenses
Ordinary profit
Extraordinary profit(Thousands of yen)
Fiscal year ended
Fiscal year ended
June 30, 2023
June 30, 2024
(July 1, 2022
(July 1, 2023
to June 30, 2023)
to June 30, 2024)
21,424,584
24,419,760
12,028,711
13,491,038
9,395,873
10,928,722

Insurance income
Penalty income
Total extraordinary income
Extraordinary losses
Impairment losses
Settlement money
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 11 -

396,002
1,598,420
1,047,155
173,579
246,204
19,99576,652
231,184
84,138746,590
269,179
375,674
841,7026,106,482
3,289,390

401,146
1,812,545
1,277,449
167,627
276,140
145,975
97,870184,546
82,190858,541
259,901
190,124
1,075,538
6,829,599
4,099,123

96
10,192
7,386
531
4,559
22,766

109
12,296
12,864
9,404
15,87550,550485
11,975
15,3884,426
228
13,377289
46,1723,265,983

243
13,75010,863
2,483
－
－
589
27,9294,121,744－－－

14,03016,96130,991

186,613－
186,6133,079,370
1,009,937(25,087)
984,850
2,094,520
2,094,520－
21,076
21,076
4,131,659
1,475,358(194,621)
1,280,736
2,850,922－
2,850,922

Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests(Thousands of yen)
Fiscal year ended
Fiscal year ended
June 30, 2023
June 30, 2024
(July 1, 2022
(July 1, 2023
to June 30, 2023)
to June 30, 2024)
2,850,922
2,094,520- 12 -

80,79866
12,591
93,456
2,187,976

40,0932,560
32,292
74,9462,925,868

2,187,976-

2,925,868-

(3) Consolidated Statements of Changes in Net Assets
Fiscal Year ended June 30, 2023 (July 1, 2022 to June 30, 2023)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of period

Capital surplus

329,128

265,928

15,984

15,984Retained earnings Treasury shares

9,872,031(608)

Total shareholders’equity10,466,479

Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period(489,092)

31,969(489,092)

2,094,520

2,094,520-

15,984345,113

15,984
281,913

1,605,427
11,477,458(608)

Accumulated other comprehensive income
Valuation
Total accumulateddifference on
Deferred gains or Foreign currency
othertranslation
available-for-sale losses on hedges
comprehensive
adjustment
securities
incomeBalance at beginning of period

103,126

236

27,820131,183

1,637,397
12,103,876

Total net assets

10,597,663

Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

31,969(489,092)
2,094,520
80,79880,798
183,925

66
66
302- 13 -

12,591
12,59140,411

93,45693,456
224,639

93,456
1,730,853
12,328,516

Fiscal Year ended June 30, 2024 (July 1, 2023 to June 30, 2024)(Thousands of yen)
Shareholders’ equity

Share capital
Balance at beginning of period

345,113

Capital surplus
281,913Retained earnings Treasury shares
11,477,458(608)

Total shareholders’equity12,103,876

Changes during period
Issuance of new shares(564,642)(564,642)

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period

2,850,922

2,850,922

Balance at end of period

Balance at beginning of period(477,635)(477,635)(918,379)(918,379)－－

2,286,279(1,396,014)

890,264

345,113

281,913

13,763,738(1,396,622)

12,994,141

Accumulated other comprehensive income
Valuation
Foreign currency Total accumulateddifference on
Deferred gains orothertranslation
available-for-sale losses on hedges
comprehensive
adjustment
securities
income183,925302
40,411
224,639

Total net assets

12,328,516

Changes during period
Issuance of new shares(564,642)

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period

2,850,922

Balance at end of period(477,635)(918,379)
40,0932,560

32,29240,0932,560

32,292

74,946965,211224,019

2,862

72,704

299,586

13,293,728- 14 -

74,94674,946

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal year ended
June 30, 2024
(July 1, 2023
to June 30, 2024)

Fiscal year ended
June 30, 2023
(July 1, 2022
to June 30, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Insurance income
Penalty income
Settlement income
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for loss on orders
received
Increase (decrease) in provision for share benefits
Interest and dividend income
Interest expenses
Commission expenses
Share issuance costs
Compensation for damage
Loss (gain) on investments in investment
partnerships
Subsidy income
Share-based payment expenses
Decrease (increase) in notes and accounts receivabletrade and contract assets
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in contract liabilities
Increase (decrease) in deposits received
Other, net

3,079,370
449,223
186,613-

4,131,659
543,472－(14,030)(16,961)
21,076(63)

519(11,986)

281,438

8,190(2,225)43,850(43,681)(10,288)
485
15,388228
13,377

129,618(12,406)243
10,863
－
－

4,589

886

(531)
20,262(9,404)
16,90661,014(1,476,902)(25,368)(279,472)(27,558)

38,545(284,188)
166,633(118,623)

400,793(51,169)
440,741
35,591(95,345)

110,242549,397
37,706(223,260)

3,738,519
10,480(485)(13,377)531-

4,356,941

SubtotalInterest and dividends received
Interest paid
Compensation paid for damage
Subsidies received
Amount of insurance proceeds received
Penalty payments received
Settlement payments
Income taxes paid
Income tax refund(1,560,275)-

Net cash provided by (used in) operating activities

2,175,390- 15 -

12,406
(243)
－
9,404
14,03016,961(21,076)(1,273,477)
565,680
3,680,627

Fiscal year ended
June 30, 2023
(July 1, 2022
to June 30, 2023)
Cash flows from investing activities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Payments for asset retirement obligations
Purchase of intangible assets
Purchase of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Purchase of insurance funds
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of finance lease liabilities
Commission fee paid
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 16 -(Thousands of yen)
Fiscal year ended
June 30, 2024
(July 1, 2023
to June 30, 2024)

90,019(225,602)(12,269)(521,790)(152,926)(120,775)
139,792(4,459)12,396(795,616)(159,798)(222,203)(189,992)(55,737)(4,459)1,320(630,871)(12,455)(5,397)(489,092)(228)(507,174)
5,841
878,441
10,002,870
10,881,311(12,291)(8,962)(1,396,014)(564,642)(1,981,911)
27,4281,095,273
10,881,311
11,976,585

(5) Notes to Consolidated Financial Statements(Note on the Going Concern Assumption)
Not applicable.
(Notes Concerning Changes in Presentation Methods)< Note to consolidated Balance Sheets >In the previous consolidated fiscal year, " Accounts receivable – other " and "Deposits paid" were included in "Other"under "Current assets," and "Accrued consumption taxes" and "Deposits received" were included in "Other" under"Current liabilities." However, due to their increased materiality of the amount, they will be presented separatelyfrom the current consolidated fiscal year. To reflect this change in presentation, the consolidated financial statements
for the previous financial year have been reclassified.
As a result, the 623,801 thousand yen presented as "Other" under "Current assets" in the consolidated income
statement for the previous consolidated fiscal year has been reclassified as " Accounts receivable – other " of 573,606
thousand yen, "Deposits paid" of 315 thousand yen and "Other" of 49,879 thousand yen, and the 539,812 thousand
yen presented as "Other" under "Current liabilities" has been reclassified as "Accrued consumption taxes" of 355,400
thousand yen, "Deposits received" of 184,269 thousand yen and "Other" of 142 thousand yen.
< Notes to consolidated income statement >Stock compensation expenses, which were included in ‘Other’ under ‘Selling, general and administrative expenses’
in the previous financial year, have been presented as a separate line item from the current financial year due to theincreased materiality of the amount. To reflect this change in presentation, the consolidated financial statements forthe previous financial year have been reclassified.
As a result, 861,698 thousand yen presented in ‘Others’ under ‘Selling, general and administrative expenses’ in the
consolidated statement of income for the previous financial year has been reclassified as ‘Stock compensation
expenses’ of 19,995 thousand yen and ‘Others’ of 841,702 thousand yen.
(Notes on additional information)< Transaction for the Delivery of Company Shares to Employees through a Trust >The Company has introduced a share grant trust as an incentive for its employees and executive officers (‘Employees,
etc.’) to provide them with benefits and to enhance the Company's corporate value.
1. Outline of the transaction
Under this scheme, in accordance with the Share Delivery Regulations established by the Company in advance, points
are granted to employees, etc. who fulfil certain requirements, and the Company shares corresponding to the numberof points granted to such beneficiaries are delivered to those employees, etc. who fulfil the requirements to bebeneficiaries as stipulated in the Share Delivery Regulations. The shares to be granted are acquired in accordancewith the amount set in the trust in advance, including the future portion, and are segregated and managed as trust
assets.
2. Company shares remaining in the trust
The Company's shares remaining in the trust are recorded at their book value in the trust (excluding the amount ofincidental expenses). The Company's shares remaining in the trust are recorded as treasury shares under net assets attheir book value in the trust (excluding the amount of incidental expenses). The book value and number of suchtreasury shares amounted to 918,379 thousand yen and 652,300 shares at the end of the financial year under review.

- 17 -

(Revenue Recognition)
Breakdown of net sales from contracts with customers
From the current financial year, the Company has reviewed its previous business segment classification method
and changed its reportable segments. Details of the segment changes are described in (Segment Information) 1.
Overview of reportable segments (1) Method of determining reportable segments.
Cumulative period for the fiscal year ended June 30, 2023 (July 1, 2022 to June 30, 2023)(Thousands of yen)
Reportable segments
DigitalTransformation
Promotion
Business

Consolidated
Financial
Disclosure
Business
Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Sales from contracts with customers

Total

144,550

43,382

233,669

421,602

6,192,852

7,224,209

7,585,919

21,002,982

6,337,403

7,267,592

7,819,589

21,424,584

－

－

－

-

6,337,403

7,267,592

7,819,589

21,424,584

Other sales
Net sales to external customers

Management
Solutions
Business

Cumulative period for the fiscal year ended June 30, 2024 (July 1, 2023 to June 30, 2024)(Thousands of yen)
Reportable segments
DigitalTransformation
Promotion
Business

Consolidated
Financial
Disclosure
Business
Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Sales from contracts with customers
Other sales
Net sales to external customers

Management
Solutions
Business

Total

179,031

36,834148,019

363,885

6,988,003

8,777,211

8,290,660

24,055,874

7,167,034

8,814,046

8,438,680

24,419,760

－

－

－

－

7,167,034

8,814,046

8,438,680

24,419,760- 18 -

(Segment Information)
1. Overview of reportable segments(1) Method of determining reportable segments
The Group’s reportable segments are components of the Company for which separate financial information isavailable and which are subject to periodic review by the Board of Directors for the purpose of determining theallocation of management resources and evaluating performance.
From the first quarter of this fiscal year, the Company revised the categorizations for its business segments andchanged the previous reportable segments of “Group Governance Business,” “Digital Transformation Business,” and“Outsourcing Business” to the “ Consolidated Financial Disclosure Business,” the “Digital Transformation
Promotion Business,” and the “Corporate Management Solutions Business.” In light of this change, results for eachreportable segment for the first quarter of the previous fiscal year were restated in line with the new reportablesegments.
(2) Products and services in each reportable segment
The Consolidated Financial Disclosure Business supports value creation through development and maintenance ofour proprietary software “DivaSystem” for consolidated management support and consolidated accounting, as wellas the provision of outsourcing of consolidated and non-consolidated financial statements using this software. With
regards the segment’s position within the Group, we aim to establish a business model that combines both softwareand outsourcing businesses. The Consolidated Financial Disclosure Business also includes information searchservices for disclosure documents provided by Internet Disclosure, Inc, primarily to audit firms.
The Digital Transformation Promotion Business supports the promotion of digital transformation at companies anddata-driven management through consulting and system development services, including the provision of a data
platform for utilizing all kinds of data related to companies, to AI and BI solutions that can analyze, predict andenable data visualization. From major cloud vendors to multi-cloud compatible software, customers can find out
about the latest data utilization methods and generative AI specializing in data utilization, as well as train engineersand develop their own data utilization platform products. The suite of products offered is also slated for expansion.
The Management Solutions Business has a focus on group management, consolidated accounting, and businessadministration and aims to identify and maximize hidden value at companies and offers one-stop support services
from consulting to system planning, building, installation, and maintenance. In addition to in-house development, it
is also possible to develop in combination with software from other companies. The role of this business is tomaximize the Group’s assets and continue to generate solutions that will provide management data that is useful forthe enhancement of corporate value.
2. Method of calculating net sales, income or loss, assets, liabilities and other items by reportable segment
The accounting method for the reportable business segments is generally the same as the accounting method usedin preparing the consolidated financial statements. Reportable segment income figures are based on operating profit.
Inter-segment net sales and transfers are based on prevailing market prices.

- 19 -

3. Information on net sales, income or loss, assets, liabilities and other items by reportable segment
Fiscal year ended June 30, 2023 (July 1, 2022 to June 30, 2023)(Thousands of yen)

Net sales
Net sales to external customers
Inter-segment net sales or transfers
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation
Impairment losses
Increase in tangible fixed assets andintangible fixed assets

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion Business

6,337,403
564,9076,902,310
1,586,534
4,963,972
3,025,887

7,267,592
4,652
7,272,245
1,118,289
3,104,831
1,626,943

7,819,589
63,735
7,883,325
1,321,030
5,163,631
3,507,286

21,424,584
633,295
22,057,880
4,025,854
13,232,435
8,160,118

120,934
186,61340,603－

134,463－

296,001
186,613

149,035

10,90615,033

174,975

Management
Solutions Business

Total

Fiscal year ended June30, 2024 (July 1, 2023 to June 30, 2024)(Thousands of yen)

Net sales
Net sales to external customers
Inter-segment net sales or transfers
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation
Impairment losses
Increase in tangible fixed assets andintangible fixed assets

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion Business

7,167,034
370,623
7,537,658
1,840,440
5,894,144
3,449,792

8,814,046
32,8828,846,928
1,633,351
3,915,781
2,141,607

8,438,680
79,6408,518,320
1,407,897
7,821,307
4,782,143

24,419,760
483,146
24,902,907
4,881,689
17,631,233
10,373,543

155,629－

12,479－245,465－

413,575－

80,215

16,342

172,375

268,933- 20 -

Management
Solutions BusinessTotal

4. Differences between the total amount of reportable segments and the amounts recorded in the consolidated
financial statements, and major details of said differences (matters related to difference reconciliation)(Thousands of yen)
Fiscal Year ended
June 30, 2023

Net sales
Total amount of reportable segments
Elimination of transactions between the Company and its segment
Net sales reported in consolidated financial statements

Fiscal Year ended
June 30, 2024

22,057,880

24,902,907(633,295)(483,146)

21,424,584

24,419,760(Thousands of yen)
Fiscal Year ended
June 30, 2023

Profits
Total amount of reportable segments
Elimination of transactions between the Company and its segment
Corporate expenses (Note)
OthersOperating profit reported in consolidated financial statements

Fiscal Year ended
June 30, 2024

4,025,854

4,881,689

808,924

908,866(1,538,347)(1,682,534)(7,040)(8,898)3,289,390

4,099,123(Note) Corporate expenses are mainly general and administrative expenses not attributable to the reportable segments.

(Thousands of yen)
Fiscal Year ended
June 30, 2023

AssetsFiscal Year ended
June 30, 2024

Total amount of reportable segments

13,380,772

17,631,233

Elimination of transaction between the Company and segment(1,993,083)(2,133,586)

Corporate assets (Note)

7,295,686

6,415,802

22,218(16,543)

18,705,593

21,896,905

OthersTotal assets reported in consolidated financial statements(Note) Corporate assets are mainly assets not attributable to the reportable segments.

(Thousands of yen)
Fiscal Year ended
June 30, 2023

Liabilities

Fiscal Year ended
June 30, 2024

Total amount of reportable segments

8,161,340

10,373,543

Elimination of transaction between the Company and segment(2,078,750)(2,056,449)

256,865

281,51437,621

4,569

6,377,076

8,603,177

Corporate liabilities (Note)
OthersTotal liabilities reported in consolidated financial statements(Note) Corporate liabilities are mainly liabilities not attributable to the reportable segments.

- 21 -

(Thousands of yen)
Reportable segments
Other items

Adjustments (Note)

Amounts recorded inconsolidated financial
statements
Fiscal Year
Fiscal Year
ended June
ended June30, 2023
30, 2024

Fiscal Year
ended June30, 2023

Fiscal Year
ended June30, 2024

Fiscal Year
ended June30, 2023

Fiscal Year
ended June30, 2024

Depreciation

296,001

413,575

153,222

129,897449,223

543,472

Impairment losses

186,613－－－

186,613－

174,975

268,933

446,699

113,069

621,674

382,002

Increase

inproperty,

plant

and

equipment intangible assets(Note) Adjustment for depreciation is mainly depreciation for assets not attributable to the reportable segments.
Adjustments to increases in property, plant and equipment and intangible assets mainly relate to assets not attributable to reportable segments.

(Per share Information)
Fiscal Year ended June 30, 2023
(July 1, 2022
to June 30, 2023)
327.51 yen
55.65 yen

Net assets per share
Net profit per share

Fiscal Year ended June 30, 2024
(July 1, 2023
to June 30, 2023)
362.95 yen
76.62 yen

(Notes) 1. Diluted net profit per share is not provided as there are no dilutive shares.
2. The basis for calculating net assets per share is as follows.

Item

As of June 30, 2023

Total of net assets (thousands of yen)Amount deducted from total of net assets (thousandsof yen)Net assets attributable to common shares (thousandsof yen)Number of common shares outstanding for
calculating net assets per share (shares)

As of June 30, 2024

12,328,516

13,293,728--

12,328,516

13,293,728

37,642,853

36,626,453(Notes) We have introduced a share delivery trust for employees and executive officers from the current financial year, and the shares of theCompany held by the share delivery trust for employees and executive officers, which are recorded as treasury shares in shareholders'equity at the end of the current financial year, are included in treasury shares deducted in the calculation of the number of shares
outstanding at the end of the year for the purpose of calculating net assets per share. The number of such treasury shares deducted in thecalculation of net assets per share at the end of the financial year was 652,300 shares.
3. The basis for calculating net profit per share is as follows.

Item

Fiscal Year ended
June 30, 2023
(Period from July 1, 2022
to June 30, 2023)

Net profit attributable to owners of parent (thousandsof yen)Amounts not attributable to owners of common shares(thousands of yen)
Net profit attributable to owners of common shares ofparent (thousands of yen)
Average number of common shares (shares)

Fiscal Year ended
June 30, 2024
(Period from July 1, 2023
to June 30, 2024)

2,094,520

2,850,922--

2,094,520

2,850,922

37,636,218

37,206,951(Notes) We have introduced a share delivery trust for employees and executive officers from the current financial year, and the shares of theCompany held by the share delivery trust for employees and executive officers, which are recorded as treasury shares in shareholders'equity in the current financial year, are included in the treasury shares deducted in the calculation of average number of shares during
the period for the purpose of calculating net profit per share for the current financial year. The average number of such treasury sharesdeducted in the calculation of net profit per share for the year under review was 405,844 shares.

- 22 -

(Subsequent Events)
Not applicable.

- 23 -