3836 TSE Prime

Avant Group Corporation
Financial Results Presentation
for the third quarter of Fiscal Year June 2023
August 4, 2023

©2023 AVANT GROUP CORPORATION. All Rights Reserved.

Executive Summary◼ Summary of financial results for the fiscal year ended June 30, 2023•

For the full year ending June 2023, sales increased in all segments, and consolidated sales increased 14.5%
year-on-year to 21.4 billion yen. Operating income increased +1.3% year-on-year due to factors such as
restructuring costs, increased headcount for growth, and increased outsourcing costs in response to strong
demand.

•Although net sales fell 1.7% against the forecast, operating income was +6.1% and net income was +3.2%,
achieving profit targets.

•

In the fourth quarter, the DX business and the outsourcing business posted a high growth rate of more than
20% year-on-year, but the Group Governance business saw a decline in sales, resulting in an overall increaseof 6.5% year-on-year. In terms of operating income, there was a decline in profit in the Group GovernanceBusiness, and overall profit decreased in the fourth quarter.

◼ Earnings and Dividend Forecasts•

For the fiscal year ending June 2024, we forecast net sales of 24.0 billion yen (up 12.0% year-on-year),
operating income of 3.85 billion yen (up 17.0% year-on-year), and net income of 2.50 billion yen (up 19.4%
year-on-year).

•

While raising the dividend on net assets ratio while always being aware that it will always be above theaverage for all listed companies, we expect to increase the dividend per share to 19 yen in the fiscal year
ending June 2024 with the aim of achieving a dividend on net assets ratio of 8%.

◼ Actions to Realize our Materiality•

Announced a new medium-term management plan, "BE GLOBAL2028," and accelerated the realization of ourstrategic materiality of "becoming a software company that helps improve corporate value."©2023 AVANT GROUP CORPORATION. All Rights Reserved.

2

INDEX

Ⅰ. Summary of financial results for the fiscal year ended June 30,
2023
Ⅱ. Earnings and Dividend Forecast

Ⅲ. Actions to Realize our Materiality＊ 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. areforward-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 be aware of the risks,
however, that actual results may differ from the business prospects described in the material due to the occurrence of
extraordinary circumstances that cannot usually be predicted or the occurrence of results that cannot usually be predicted.
The Company will proactively disclose information that is considered material to investors, 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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

3

I. Summary of financial results for the fiscal year
ended June 30, 2023

©2023 AVANT GROUP CORPORATION. All Rights Reserved.

4

Results Highlights◼ Net sales increased 6.5% in the fourth quarter and 14.5% for the full year, despite a decline
in the Group Governance business in the fourth quarter.

◼ Gross profit and operating income decreased in the fourth quarter on a non-consolidated
basis due to a decline in gross profit margin due to additional personnel for growth andrestructuring costs. Full-year increase rate is small, but profit growth is achieved.
◼ Net sales are below forecasts, but operating and net income exceed forecasts.
(Millions of yen)

FY6/23Q4

YoY Variance
Yr earlier

FY6/23% chg

YoY Variance
Yr earlier

vs Forecast% chg

Forecast% Achieve

Net Sales

5,236

4,916

6.5%

21,42418,70314.5%

21,800-1.7%

Cost of Sales

3,173

2,686

18.1%

12,028

9,782

23.0%

ー

ー

Gross Profit

2,063

2,230

-7.5%

9,395

8,921

5.3%

ー

ー

GPM

39.4%

45.4%

-6.0pt

43.9%

47.7%

-3.8pt

ー

ー

SG&A

1,695

1,606

5.5%

6,106

5,674

7.6%

ー

ー

Operating Income

368

624

-41.0%

3,289

3,247

1.3%

3,100

6.1%

OPM

7.0%

12.7%

-5.7pt

15.4%

17.4%

-2.0pt

14.2%

1.1pt

Net Income

223

472

-52.8%

2,094

2,045

2.4%

2,030

3.2%

NPM

4.3%

9.6%

-5.4pt

9.8%

10.9%

-1.2pt

9.3%

0.5pt

EBITDA

492

711-30.8%

3,737

3,582

4.3%

ー

ー

EBITDA margin

9.4%

14.5%

-5.1pt

17.4%

19.2%

-1.7ptーー©2023 AVANT GROUP CORPORATION. All Rights Reserved.

5

FY6/23 Operating Income Bridge (YoY)◼ Despite an increase in recruitment-related expenses, outsourcing expenses, and IT expenses,
the rate of increase in operating income before restructuring costs exceeded the rate ofincrease in sales.
◼ Operating income and net income increased only slightly due to the impact of restructuringcosts of ¥0.46b in cost and SG&A expenses and ¥0.18b in impairment losses.
(Millions of yen)

Higher GP
from sales
growthHigher personnel andrecruiting costs due toincreased hiring andhigher compensation.

Impairment loss of¥0.18b outside ofoperating income

Increase in IT expenses
due to organization
expansion and support
for cloud computing
Other
expenses

Reorganization cost

Increase inoutsourcing costs
to meet demand
including hiring gap.

+0.5b +16.0%
FY6/22
Operating
Income©2023 AVANT GROUP CORPORATION. All Rights Reserved.

+0.4b

+1.4％

FY6/23Operating Income(pre-reorganization)

FY6/23Operating Income6Results by Business Segment◼ The DX business and outsourcing business increased sales by around +20%, and the effectof the increase in sales drove overall performance◼ In the Group Governance Business, in the fourth quarter alone, sales and profits decreased(millions of yen)
year-on-year, and full-year sales increased, but profit decreased.
YoY Variance

FY6/23
Q4
Net SalesGroup
GovernanceDigitalOutsoursing% chg

Yr earlier

% chg

2,208

2,566

-14.0%

10,033

9,372

7.0%

Operating Income

192

507

-62.1%

1,709

2,060

-17.0%

OPM

8.7%

19.8%

-11.1pt

17.0%

22.0%

-4.9ptOrders

3,084

3,340

-7.7%

10,301

10,155

1.4%

Order Backlog

3,400

3,132

8.6%

3,400

3,132

8.6%

Net Sales

2,207

1,741

26.8%

8,381

7,015

19.5%

280

263

6.5%

1,521

1,244

22.3%

12.7%

15.1%

-2.4pt

18.1%

17.7%

0.4pt

Orders

2,662

2,063

29.0%

9,060

6,902

31.3%

Order Backlog

1,810

1,131

60.0%

1,810

1,131

60.0%

Net Sales

982

791

24.1%

3,755

3,044

23.4%

Operating Income

195

82

137.8%

824

661

24.7%

OPM

19.9%

10.5%

9.4pt

21.9%

21.7%

0.2pt

Orders

1,548

1,240

24.8%

4,039

3,751

7.7%

Order Backlog

2,448

2,164

13.1%

2,448

2,164

13.1%

Operating Income

Transformation OPM(DX)

Yr earlier

YoY Variance

FY6/23©2023 AVANT GROUP CORPORATION. All Rights Reserved.

7

Results by Business Segment (Factors)◼ Net sales increased in each segment. Group governance saw a decrease in sales in the fourth quarter due
to restrictions on sales activities due to organizational restructuring, resulting in limited full-year revenue
growth.
◼ Group governance includes an increase in personnel and outsourcing costs, as well as productrestructuring triggered by restructuring.Although profit decreased due to increased costs due toenvironmental improvements, the outsourcing business and outsourcing business increased profits due tohigher sales that exceeded the increase in costs.
(Millions of yen) Operating Income Variance
Net Sales Variance +661m YoY(Millions of yen)
+163m YoY
・Outsourcing continues togrow
・Driving the increase in
new customers and strong
proposals to expand
existing customers

・Increased expenses due
to recruitment for growthand office expansion, but
increased profit by lessthan 25% due toincreased revenue.

+1,366m YoY
・Data Platform andBI both strong
・ Large-scale
projects contributed
to revenue growth,
exceeding +20% in 4Q+277m YoY
・ Despite an increase inpersonnel and training costs,
operating income increasedby more than 20% due toincreased sales.

+711m YoY
・High rate of increase ingroup business
management/business
management areas
・ Sales decreased in the
４Q due to restrictions onsales activities due torestructuring.

■Group Governance ■Digital Transformation ■Outsourcing©2023 AVANT GROUP CORPORATION. All Rights Reserved.

-351m YoY
・Despite sales growth
profit decline on costs forhiring for growth andoutsourcing to meetstrong demand.
・Reorganization related
rationalization andbusiness environment
improvement costs also afactor.
8

Group Cost Structure◼ Recruitment expenses are increasing due to active recruitment activities to increase sales,
but outsourcing costs are increasing because employees alone cannot meet demand.
◼ IT expenses increased due to increase in headcount and cloud computing (for customers
and internal environment)(Millions of yen)

FY6/23Q４

YoY Variance
Yr earlier

FY6/23% chg

YoY Variance
Yr earlier% chg

Net Sales

5,236

4,916

6.5%

21,42418,703

14.5%

Personnel expenses

2,766

2,398

15.3%

10,277

9,140

12.4%

Recruitment expenses

134

130

3.1%

433

353

22.7%

Outsourcing expenses

984

890

10.6%

3,778

2,910

29.8%

IT expenses

313

185

69.2%

994

658

51.1%

Office expenses

216

206

4.9%

905

895

1.1%

Other expenses

455

483

-5.8%

1,748

1,500

16.5%

Total expenses

4,868

4,292

13.4%

18,135

15,456

17.3%

Operating Income

368

624

-41.0%

3,289

3,247

1.3%

OPM

7.0%

12.7%

-5.7pt

15.4%

17.4%

-2.0pt©2023 AVANT GROUP CORPORATION. All Rights Reserved.

9

Quarterly GPP (Net Sales Growth + OPM) Trends◼ This fiscal year, the company has been close to the target of GPP40, but due to a decline insales growth and a deterioration in profit margins, the company reached a GPP of 29.9 forthe full year.
◼ It was also a median result in the past five years.
FY19 30.2

FY20 26.0

FY21 20.7

FY22 32.6

FY23 29.9

Target 40％

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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

10Quarterly Net Sales by Segment◼ In the fourth quarter, as was the trend to date, overall sales increased year-on-year,
although there was a decrease in the third quarter.

(Millions of yen)

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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

11

Quarterly Margin Trends◼ Gross profit margin tends to decline due to increased headcount for growth and restructuringcosts. The SG&A expense ratio has been gradually decreasing over the past five years, but inthe fourth quarter, it temporarily rose due to an increase in recruitment costs, mainly for new
graduates. As a result, the quarterly operating margin temporarily declined.
(%)
60.0

50.0

48.6
44.3

47.8

43.3

45.1
42.5

47.6

47.3

48.3

50.5
45.4

44.9

44.5

42.1

49.5

47.9

47.2
44.8

44.0
39.4

40.0
32.3

32.3

31.7

33.0

32.2

33.4

31.2

28.3

27.0

30.0

30.8

27.4
20.3

16.9

20.0

16.3
13.8

12.0

14.3

14.8

15.1

33.5

27.9
20.4

32.7
27.8

27.8

21.7

22.7

14.5

13.3

32.4
25.7
21.4

12.7

11.4

10.2

32.5

24.1
19.9

12.2
7.0

10.0

0.0
Q1

Q2

Q3

Q4

FY6/19

Q1

Q2

Q3

Q4

FY6/20

Q1

Q2

Q3

Q4

Q1

FY6/21GPM

SG&A ratio

Q2

Q3

FY6/22

Q4

Q1

Q2

Q3

Q4

FY6/23

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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

12

Quarterly Recurring Sales and Recurring Sales Ratio◼ Although the ratio will rise and fall due to the volume of services sales, theabsolute value of stock sales has increased steadily for seven consecutive
quarters.
(Millions of yen)
2,500

45.0%
38.6%

2,000

33.7%

32.9%

32.7% 33.4% 32.3%

35.5% 34.9% 35.7%

34.5%

38.0%

36.9%

36.0% 35.5%
33.1% 32.9%

33.8% 34.2%

40.0%
35.0%

30.6%
28.8%

30.0%

1,500
25.0%
1,991

1,000

500

1,046

1,080

1,110

1,183

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

1,860

20.0%

1,938

15.0%
10.0%
5.0%

0

0.0%
Q1

Q2

Q3

Q4

FY6/19

Q1

Q2

Q3

Q4

Q1

Q2

FY6/20Q3

FY6/21
Recurring Sales

Q4

Q1

Q2

Q3

FY6/22

Q4

Q1

Q2

Q3

Q4

FY6/23

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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

13

ROE Trends◼ In the fiscal year ending June 2023, although it was below the target line of 20% due toimpairment losses and restructuring costs, it is expected to recover from the next fiscal year
onward.
◼ Comply with the Group's management principles, further increase profitability, and manage
assets more efficiently to maintain an average of 20% or more.
(millions of yen)

Net Asset

ROE ※

(%)

14,00030%

12,00025%

10,000

18.3%
20%

8,000
15%
6,000
10%

4,000

5%

2,000
-

0%
Q1

Q2

Q3

Q4

FY19/06

Q1

Q2

Q3

FY20/06

Q4

Q1

Q2

Q3

FY21/06

Q4

Q1

Q2

Q3

FY22/06

Q4

Q1

Q2

Q3

Q4

FY23/06※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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

14

Number of Group Employees◼ The number of employees is increasing to achieve sustainable growth◼ In addition to new graduate hiring, mid-career recruitment is also progressing steadily, withan increase of 119 employees in the quarter.
(person)
1,600
1,389
1,400
1,226 1,240
1,200

1,107 1,123 1,128

1,139

Q4

Q3

1,263 1,270

1,055 1,030 1,030 1,047
1,000
832

855

874

Q1

Q2

Q3

938

950

965

963

Q4

Q1

Q2

Q3

800

600

400

200
FY06/19©2023 AVANT GROUP CORPORATION. All Rights Reserved.

FY06/20

Q4

Q1

Q2

Q3

FY06/21Q1

Q2

FY06/22

Q4

Q1

Q2

Q3

Q4

FY06/23
15

Financial Condition Trends◼ Due to sales growth and profit structure, total assets and net assets are steadily
accumulating.

◼ On the other hand, since we are able to operate with cash flow from operating activities
without relying on borrowing, etc., and the debt ratio is declining, the equity ratio continues
to be on an upward trend, although dividends are increasing year by year.

(Millions of yen)

Total Assets

20,000Net Assets and Equity Ratio(%)

18,70518,00016,000(Millions of yen)

65.9

14,00063.0

16,617

12,00013,956

10,00014,00012,00063.8

70.0

12,32860.0

10,597

50.0

8,787

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

FY6/21

FY6/22

FY6/23

0.0

FY6/21

FY6/22

FY6/23

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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

16

Cashflow Trends◼ In the fourth quarter, operating CF was significantly positive due to the receipt of accounts
receivable (decrease in accounts receivable) and advance payments for new contracts(increase in contract liabilities) due to the completion of previous contracts, resulting in asignificant increase in the cumulative negative through the third quarter.

◼ Purchase of source code from Metapraxis and increase of office floor space (acquisition ofproperty, plant and equipment and increase in deposit deposits), increase cash ininvestment CF and annual increase in cash
(Millions of yen)

FY6/23Q４

YoY Variance
Yr earlier

FY6/23% chg

YoY Variance
Yr earlier% chg

Operating CF

2,269

1,642

626

2,175

3,026

△ 851

Investment CF

△ 121

△ 85

△ 36

△ 795

△ 398

△ 396

Free CF

2,147

1,557

590

1,379

2,627

△ 1,247

Financial CF

△4

△4

0

△ 507

△ 433

△ 73

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.
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

17

Ⅱ. Earnings and Dividend Forecast©2023 AVANT GROUP CORPORATION. All Rights Reserved.

18

Earnings forecast for the fiscal year ending June 30, 2024
◼ In the fiscal year ending June 2023, we landed at almost the same level as the earnings
forecast, achieving increased sales and profits.
◼ 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 due to 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%

©2023 AVANT GROUP CORPORATION. All Rights Reserved.

19

Shareholder Returns◼ DOE for the fiscal year ending June 2023 is expected to be 4.9%, significantly higher than the
average of 3.1% for companies listed on the Tokyo Stock Exchange (12 months).
◼ For the fiscal year ending June 2024, the dividend per share will be significantly increased,
and the DOE is expected to be 5.3%.

(yen/share)

19.0 6.00%
4.9% 5.3%
5.00%
15.0

20.0
18.0
16.0

13.0

14.0
12.0
10.0
8.0

4.00%

11.0
9.0

＜Our shareholder return policy＞▪

Dividends are an important part of ourshareholder return policy▪

Avant aims to maintain if not grow thedividend 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 theaverage of 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%

7.5

2.00%

6.0
4.0

1.00%

2.0
0.0

0.00%
2019

2020

2021

2022

2023

2024
(Forecast)

Dividends per share…
©2023 AVANT GROUP CORPORATION. All Rights Reserved.

DOE
20

Ⅲ. Actions to Realize our Materiality(New medium-term management plan
"BE GLOBAL 2028")©2023 AVANT GROUP CORPORATION. All Rights Reserved.

21

Value Creation Spiral Targeted in BG28•

Realize the strategic materiality of "Becoming a Software Company that Contributes to Enhancing
Corporate Value" through a value creation spiral starting from the improvement of value creation
productivity (measured by operating profit per employee) brought about by the software-driven
strategy that leads to the creation of human capital value and corporate value

Software driven strategy

Business
investment etc
Corporatevalue
creationValuecreation
productivity
enhancement

Enhancedcompensation, talent
investment etc©2023 AVANT GROUP CORPORATION. All Rights Reserved.

Strategic Materiality
Enhancedsustainabilityof valuecreation

Becoming a Software Company
that Contributes to Enhancing
Corporate Value

Human
capital value
creation22

BG28 Focus Markets•

Positioning in the management digital transformation (DX) market for companies whereenhancing corporate value is a serious issue.

Total Addressable Market (TAM）of each market
BI, Data Infrastructure & DX Market
Investor Perspective Next
Generation Management
Information Platform Market

Consolidated Financial
Disclosure Market

Client base¥112.3bn Software

M1

Deepen existing
market

ＤＩＶＡ・IＤ¥272bnKnow how
Service¥690bn-¥720bn

M3

M2

Creation of new market

Capture growth market

ＡＶＡＮＴ

ＺＥＡＬ

Management DX Market©2023 AVANT GROUP CORPORATION. All Rights Reserved.

23

BG28 Outlook•

As a B2B software growth company, grow the business by increasing value creation
productivity, tripling net income on a doubling of sales, for a net income CAGR of at least25%.

FY6/23

FY6/24

FY6/285yr chg/avg

Net Sales¥21.4bn¥24bn¥40-45bn

2xOperating Income (OI)

¥3.2bn¥3.85bn¥9-11bn

3x

OPM

15.4%

16.0%

20-24%+5-9pts

Net Income¥2.09bn¥2.5bn¥6-7bn3x/CAGR 25%

OI/person¥2.4mn¥2.4mn¥3.5-4.3mn

1.5xSoftware Gross Profit¥2.13bn¥2.17bn¥6.0-6.5bn

3.0x

ROE

18.3%

19.3%

20% or more

Avg 20%

DOE

4.9%

5.3%

8% or more

Avg 7%

Dividend¥15¥19¥51 or more

3.4x©2023 AVANT GROUP CORPORATION. All Rights Reserved.

24Appendix : Company Profile©2023 AVANT GROUP CORPORATION. All Rights Reserved.

25

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", weare engaged in outsourcing business such as
consolidated and non-consolidated financial settlement
operations using "DivaSystem" to comprehensively
support the corporate value creation process throughinformation disclosure.

【Management Solutions Business】

他社ソフトウエアWith group business management, consolidated
accounting, and business management as the pillars,
we provide one-stop support for customers'"visualization and maximization of invisible corporate
value" from consulting to system planning andconstruction, introduction support, operation andmaintenance, and develop software that will be thesolution in-house. We also provide system development
and implementation support that combines softwaredeveloped by other companies with our own products.

Net sales¥21.4 bDigitalTransformation Promotion
Business

Consolidated
Financial
Disclosure
Business

33％

31％

Management
Solutions Business

36％【Digital Transformation Promotion Business】
We support the promotion of digital transformation anddata-driven management of companies by providing
data platforms that organize and integrate internal andexternal data and AI and BI solutions that analyze,
predict, and visualize data through consulting andsystem development.

©2023 AVANT GROUP CORPORATION. All Rights Reserved.

26

Avant Group Philosophy©2023 AVANT GROUP CORPORATION. All Rights Reserved.

27

The Avant Group Moves to the Next Five Years to Realize BE GLOBAL
Established the top share in Japan in the
consolidated accounting businessGovernment-led
initiatives

Introduction of holding company systemand expansion of group management■ Group Governance Practice■ Introduction of Internal Control ■ Corporate
Governance Code
Guidelines
Reporting System (J-SOX)■ Establishment of a study group on（Jun. 2015~）（Sep. 2019～）（Apr.2008~）
fair acquisition （2022～）■ Voluntary Applicationof Disclosure under IFRS
■ Publication of Business Restructuring（FY Mar. 2010~）
Practice Guidelines（Jul. 2020～）■ Start of reporting inconsolidated accounting（FY Mar. 2000~）■Mandatory quarterly
reporting（FY Apr. 2003~）

Jan. 2004■ Launched
consolidationaccounting operations
outsourcing service

1997

2004

BE GLOBAL

2007

Aug. 2007■ Users of DivaSystem reached 500

2009

2012

2013

Dec. 2018■ DivaSystem clients baseexceeded 1,000 companies

2017

May 1997
Founding of DIVA Inc.

2018

2019

2022

Aug.2023■New Medium-termManagement Plan "BE
GLOBAL 2028" announced2023

Oct.2022

Mar. 2018
Change the Market
Listing to the First
Section of the TSE（currently TSE Prime
Market)Reorganization

Aug. 2017■ FIERTE Corporation is established from
DIVA Corporation by the Company Split

Oct.2013■Changed the trade name from DIVACORPORATION to AVANT CORPORATION■Established new DIVA CORPORATION as a result of
the Incorporation-type company split
Oct.2012■Closed the acquisition successfully and new
Zeal Corporation as Diva's 100%-owned
subsidiary commenced its operation.

Nov. 2009■Acquired 100% share ofInternet Disclosure Co., Ltd.

©2023 AVANT GROUP CORPORATION. All Rights Reserved.

Feb. 2007
Listed at OSE Hercules(currently TSE GrowthMarket)28

Numerical Summary
Net Sales／Sales Growth Rate

Number of employees

GPP（Sales Growth Rate＋OPM）(Millions(百万円) of yen)

25,00021,42415,000

20.0%

15.2%

14.5%15.0%
10.0%

5,000

5.0%
3.5%

0

0.0%
FY6/19FY6/20FY6/21Net Sales

FY6/22

26.0%

25.0%

10.0%

600

5.0%

400

0.0%
FY6/19FY6/20FY6/21

FY6/22

30.0%

30.0%

25.0%

25.0%

20.0%

20.0%

15.4%15.0%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0%

0.0%

FY6/21

FY6/22

FY6/2350.5

53.1

FY6/22

FY6/23Market Cap

23.5%

23.6%
80

21.1%

61.8

18.3%
60

17.4%

14.5%

FY6/20(Billions of yen)
100
24.6%

17.2%

200

FY6/19

2,278

1,500

1,107

0

3,289

3,247

14.0%

FY6/23

GPP

2,796

1,966

1,055
938

800

15.0%

ROE

(Millions of yen)
3,500

2,500

1,226

1,200
20.7%

Sales Growth Rate

3,000

1,400

1,000

FY6/23Operating Income/OPM

2,000

29.9%

20.0%

11.5%

10,000

1,389

32.6%
30.2%

30.0%

16,236

15,691
14,07716.2%(person)
1,600

40.0%
35.0%

18,70320,000

25.0%

37.8

38.9

FY6/19FY6/20

40

1,000
500
0
FY6/19FY6/20FY6/21

Operating Income

FY6/22

FY6/23
OPM©2023 AVANT GROUP CORPORATION. All Rights Reserved.

200
FY6/19FY6/20FY6/21
ROE

FY6/22

FY6/23

FY6/21Market Cap

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

©2023 AVANT GROUP CORPORATION. All Rights Reserved.

30

Customer base of consolidated accounting system “LCA”◼ More than 1,200 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※２

As of the end of June 2023
Fuji Chimera Research Institute "Software Business New Market 2023 Edition" Consolidated Accounting Management Software Market Share©2023 AVANT GROUP CORPORATION. All Rights Reserved.

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DIVA
Disclosure of consolidated financial results that leads to improvement of corporate value
Form ofprovision

Products and Services
Operation of theBoard of Directors

Consolidated Financial Results and Disclosure

Processing

Collection

Decision-making

Product

Group subsidiary journal item data collection

連結会計・連結決算システム

DivaSystem Dx3-Advance

DivaSystem LCA

On-premises

On-premises

Non-financial information and budget
management data collection

DivaSystem FBX
On-premises

consulting

Services

B
P
O©2023 AVANT GROUP CORPORATION. All Rights Reserved.

Global CashManagement

Audit

Treasury
Management
SystemComingSoon

TMS
Coming
Soon

Cloud

Cloud
Managed Services

Cloud

Outsourcing of financial results

Accounting Consulting Services

Global CashManagement
Enhancement
Support Service

32

ZEAL
ZEAL helps Japan companies realize digital transformation
Collection andaccumulation

Data Sources

DWH
Dr.Sum
Databriks
Snowflake

Maintenance and
Educational Services

Data Analysis and Visualization

Data processing
BI

ETL

Human Resource
Development

Power BI
MotionBoard
Domo
Amazon QuickSight
ThoughtSpot
Brist®
IBM Cognos Analytics
Tableau
Oracle Business Intelligence

Trocco®
Oracle Data Integrator
IBM InfoSphere DataStage
ASTERIA WARPBusinessSPECTRE
Infomatica PowerCenter
Dataspider Servista

MicroStrategy
Quick Sense
Yellowfin
Oracle Analytics Cloud
SISENSE
Looker
Incorta Enterprise Analytics

ZEAL DX-Learning Room

Oracle Analytics Quick Start Deployment
SupportContact for BI and Data Utilization [ZBISS]
Cognos Analytics Management Dashboard
SAP Data Discovery By Power BI
SAP Analytics Cloud
SAP Business Objects

Amazon QuickSight training
Microsoft Power BI hands-on
training
AWS Data Analysis Infrastructure
Fundamentals Training

Statistical Analysis/Data Mining
SAS Viya
IBM SPSSDX Starter Pack
SAS Viya Template for Retail [Demand Forecast]AI
AI Solutions

AI Market Trend Analysis Service

ZEAL

StoryAIOpen Data Utilization Service
ZEAL

CO-ODEAVANT・ZEAL solution

Management Accounting Platform（MAP）

Virtualized Data Infrastructure

DenodoCloud Data Platform

Microsoft Azure AWS（Amazon Web Service）
ZEAL

Google Cloud Platform（GCP） Oracle Cloud Infrastructure（OCI）

ZEUS Cloud Analytics Solution on Azure

We can handle everything from consulting to construction, operation, maintenance support, and educational services!
ZEAL©2023 AVANT GROUP CORPORATION. All Rights Reserved.

These are ZEAL's original products andservices.

33

AVANT
Making full use of business management solutions to visualize and maximize invisible corporate value
Group Business Administration

Management Philosophy
Mission/Vision/ValueBusiness
RestructuringNon-financial management strategy andscenario formulation(Management Dashboard)

Non-financial

Medium-Term Management Plan
Management
Consolidation
Management Committee
and Report

Single-year budget and forecast

Corporate PDCA
事業管理

Consolidation

Business Planand Prospects

IFRS Compliance

Disclosure andConsolidated
Financial Results

S&OP

PDCA of thebusiness

Business
Promotion

Profitability management bycustomer by productConsolidated Cost Controlling

System Infrastructure Supporting Group Management
Financial and
Non-Financial
Management©2023 AVANT GROUP CORPORATION. All Rights Reserved.

Information
Visualization

Predictive
Simulation

34

Cautionary Statement Concerning Forward-Looking Statements
The information in this document regarding business forecasts and other future projections andstrategies is based on judgments made by the Company based on information reasonably available to it
at the time this document 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 theoccurrence of extraordinary circumstances or unforeseeable results that could not be foreseen in thenormal course of events. While we endeavor to actively disclose information that we believe is important
to investors, we urge you not to base your decisions solely on the earnings forecasts contained in thisdocument. Please do not reproduce or transmit this material for any purpose without permission.

■Contact

Avant Group Corporation, IR Office
ir@avantgroup.com©2023 AVANT GROUP CORPORATION. All Rights Reserved.

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