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 first quarter of the fiscal year ending June 30, 2024
Company Name:
Code Number:
Representative:
For inquiry:

October 31, 2023
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

Securities report issue date: November 10, 2023
Supplementary information for financial statements: Available
Explanatory meeting to be held: No

TEL: (03) 6388-6739

Dividend payment date: -(Millions of yen, rounded down to the nearest unit)

1. Consolidated Financial Results for the Three Months Ended September 30, 2023
(Percentages indicate year-on-year changes)(1) Consolidated results of operations
Net sales
Three months ended
September 30, 2023
September 30, 2022
Comprehensive income (loss)

EBITDA*
%
12.3
24.2

5,646
5,025

798
709

for the three months ended September 30, 2023

Net profit per
share
Three months ended
September 30, 2023
September 30, 2022

Operating profit
%
12.5
36.7

%
10.8
33.2

681
614

483 million yen (31.4%)

Profit attributable toowners of parent

Ordinary profit
%
13.0
36.1

679
601

for the three months ended September 30, 2022

482
370

%
30.2
41.5

367 million yen (35.4%)

Diluted net
profit per share

yen

yen

12.86
9.86

-

(Note) EBITDA is derived by adding depreciation and amortization of goodwill to operating profit.

(2) Consolidated financial condition
Total assets
As of
September 30, 2023
June 30, 2023

Net assets

Equity ratio%

17,942
18,705

11,797
12,328

As of September 30, 2023

(Reference) Net assets attributable to the company’s shareholders

65.8
65.9

11,797 million yen

As of June 30, 2023

12,328 million yen

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
Fiscal year ending June 30, 2024
Fiscal year ending June 30, 2024 (Forecast)

Annual

yen

yen

yen

yen

yen

-

0.00

-

15.00

15.00

0.00

-

19.00

19.00

(Note) Revisions to the most recently announced dividend forecast: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2024
(Percentages indicate year-on-year changes)

Net sales
Fiscal year
ending June 30, 2024

Operating profit

Profit attributable toowners of parent

Ordinary profit

Net profit
per share

million yen%

million yen%

million yen%

million yen%

yen

24,000

12.0

3,850

17.0

3,850

17.9

2,500

19.4

66.89

(Notes) Revisions to the most recently announced earnings forecast: None
Since the Company manages its operations on an annual basis, the consolidated earnings forecasts for the second quarter (cumulative) are not provided.

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) Application of accounting procedures specific to the preparation of quarterly consolidated financial statements: none
(3) 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(4) 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 September 30, 2023
As of September 30, 2023
Three months ended September 30, 2023

37,645,851 shares

As of June 30, 2023

326,398 shares

As of June 30, 2023

37,549,160 shares

Three months ended September 30, 2022

37,645,851 shares
2,998 shares
37,622,503 shares(Note) The Company has introduced the Employee Benefit Trust from the first quarter of the fiscal year ending June 30, 2024. Shares of the Company held by the Trusts areincluded in the number of treasury shares held and the average number of shares.

* 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 promised by the Company regarding future performance.
Actual results may differ materially from the forecast depending on a range of factors. Please refer to “Earnings Forecasts” on page 8
for the assumptions for earnings forecasts and notes for using earnings forecasts.

Accompanying Materials – Table of Contents
1. Qualitative Information on Financial Results for the Current Quarter .................................................... 2(1) Management's Discussion on Business Operations .............................................................................. 2(2) Discussion on Financial Position .......................................................................................... 6(3) Earnings Forecasts ....................................................................................................... 8
2. Quarterly Consolidated Financial Statements and Notes.................................................................. 9(1) Quarterly Consolidated Balance Sheets.......................................................................................... 9(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income......................... 11
Quarterly Consolidated Statements of Income .................................................................................11
Quarterly Consolidated Statements of Comprehensive Income ......................................... 12(3) Quarterly Consolidated Statements of Cash Flows ..................................................................... 13(4) Notes to Quarterly Consolidated Financial Statements ..................................................................... 14(Notes on the Going Concern Assumption) .............................................................................. 14(Notes on Substantial Changes in the Amount of Shareholders' Equity) .................................. 14(Additional Information) ........................................................................................................... 14(Segment Information) ............................................................................................. 15(Revenue Recognition) ........................................................................................................... 16(Significant Subsequent Events) ........................................................................................................... 16- 1 -1. Qualitative Information on Financial Results for the Current Quarter(1) Management's Discussion on Business Operations
Consolidated financial results for the three months ended September 30, 2023 are as follows.

Net sales

Three months ended(Millions of yen, rounded down to the nearest unit)
Three months ended
Year-on-Year Change

September 30, 2022

September 30, 2023

Amount

%

5,025

5,646

620

12.3

Operating profit

614

681

66

10.8

Ordinary profit

601

679

78

13.0

Profit attributable to owners ofparent

370

482

112

30.2

Consolidated net sales were 5,646 million yen (up 12.3% year-on-year) as a result of the Outsourcing Businessmaintaining its high growth rate, in addition to significant growth in the Digital Transformation Business in particular,
against the background of investment needs among Japanese companies, our customers, to maintain and strengthen
competitiveness by “upgrading corporate management and activities using data and digital technology,” which is
becoming a mid- to long-term trend.
From this first quarter, the Company has revised the method used to categorize its business segments to date andchanged from the previous reportable segments of “Group Governance Business,” “Digital Transformation Business,”and “Outsourcing Business” to “Consolidated Financial Disclosure Business,” “Digital Transformation Promotion
Business,” and “Corporate Management Solutions Business.” In light of this change, the results for each reportablesegment for the first quarter of the previous fiscal year have been restated according to the reportable segments after
the change.
The Consolidated Financial Disclosure Business supports value creation through the disclosure of corporate
information with the development and maintenance of DivaSystem, a proprietary software package for consolidated
management support and consolidated accounting, and providing outsourcing services for consolidated and nonconsolidated financial results using DivaSystem. In terms of this segment’s position within the Group, we aim toestablish a business model that is a combination of its software and outsourcing businesses.
The Consolidated Financial Disclosure Business also includes information retrieval services for disclosure
documents provided mainly to audit firms by Internet Disclosure, Inc.
The Digital Transformation Promotion Business supports the promotion of companies' digital transformation anddata-driven management by providing, through consulting and system development, everything from data platforms
for utilising all kinds of data surrounding companies to AI and BI solutions for analysing, predicting and visualisingdata. From major cloud vendors to multi-cloud compatible software, you will learn about the latest information
utilization methods and generation AI specializing in data utilization, as well as train engineers and develop your own
data utilization platform products. We also aim to expand our group's products.
The Corporate Management Solutions Business has as its objective the visualization and maximization of companies’“invisible value,” with a focus on group management, consolidated accounting, and business administration, andoffers one-stop support ranging from consulting to system planning, building, installation, and maintenance. In
addition to developing software in-house, this business also combines such software with software developed byother companies. The role of this business is to make maximum use of the Group’s assets to continuously generate
solutions that will provide management information useful for the enhancement of corporate value.
As for profits, despite increases in fixed personnel expenses caused by an increase in headcount, outsourced
processing expenses in response to increased demand from customers, and development expenses for new productsthat we plan to launch, due to the decline in temporary expenses accompanying the group reorganization in theprevious fiscal year, effect of increased sales in the Digital Transformation Promotion Business, and other factors,
we recorded operating profit of 681 million yen (up 10.8% year-on-year), ordinary profit of 679 million yen (up13.0% year-on-year), and profit attributable to owners of parent of 482 million yen (up 30.2% 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)
Three months
Year-on-Year Change
September 30, 2023
Amount%Three months
September 30, 2022
Consolidated Financial Disclosure
Business
Digital Transformation Promotion
Business
Corporate Management Solutions
Business
Elimination of inter-segment
transactions
Consolidated Net sales

1,631

1,747

115

7.1

1,613

2,171

558

34.6

1,851

1,863

11

0.6

(70)

(135)

(65)

-

5,025

5,646

620

12.3

(ii) Operating profit(Millions of yen, rounded down to the nearest unit)
Three months
September 30, 2022
Consolidated Financial Disclosure
Business
Digital Transformation Promotion
Business
Corporate Management Solutions
Business
Corporate Expenses andElimination of inter-segment
transactions
Consolidated operating profit

Three months
September 30, 2023

Year-on-Year Change
Amount
%

358

364

5

1.7

196

348

151

76.9

309

148

(161)

(52.0)

(249)

(180)

69

-

614

681

66

10.8

In the Consolidated Financial Disclosure Business, the software business is in the process of making improvements
through the review of pricing strategies under the new organization, and while on the one hand, the outsourcing
business has maintained its high growth rate, contributing to the increase in revenue. As a result, net sales increased
to 1,747 million yen (up 7.1% year-on-year). In terms of profitability, as the pricing strategies in the software business
are not yet at a stage in which they are reflected in profits, operating profit was 364 million yen (up 1.7% year-onyear), which was a limited increase compared with the increase in net sales.
In the Digital Transformation Promotion Business, the need among customers to utilize data for decision-making
related to management and business promotion continues to accelerate, and a marked increase in projects focused on
the provision of cloud data platforms significantly pushed up revenue. As a result, net sales increased to 2,171 million
yen (up 34.6% year-on-year). Although personnel expenses to secure service provision staff increased and there wasa continuing trend of outsourcing expenses to supplement them remaining high, this was offset by the effect of higher
sales, and operating profit was 348 million yen (up 76.9% year-on-year), significantly higher than the same period in
the previous fiscal year.
In the Corporate Management Solutions Business, net sales were 1,863 million yen (up 0.6% year-on-year).
Although sales growth was constrained by the impact of temporary restraints on sales activities accompanying thereorganization, the increase in revenue in the CPM solutions business resulted in a small year-on-year increase forthe segment as a whole. As a result of the increase in net sales remaining at the low-growth level due to theaforementioned factors, and in addition, the increase in personnel expenses due to headcount increases and an increasein depreciation costs accompanying software investments, operating profit decreased to 148 million yen (down 52.0%
year-on-year).

- 3 -The number of employees on a consolidated basis was 1,414 at the end of the first quarter, up 25 from the end of
the previous fiscal year.
Quarterly Trends of Number of Employees of the GroupThe status of orders received and sales by segment for the first quarter of the fiscal year under review is as follows.
(i) Orders Received(Millions of yen, rounded down to the nearest unit)
Fiscal Year ending
Year-on-Year Change
June 30, 2024
First quarter
AmountOrdersOutstanding
OrdersOutstanding
Received
Orders
Received
OrdersFiscal Year ended
June 30, 2023
First quarter
OrdersOutstanding
Received
OrdersConsolidated Financial
Disclosure Business
Digital Transformation
Promotion BusinessCorporate Management Solutions
Business
Elimination of inter-segment
transactions
Total

1,697

3,482

1,821

4,023

124

541

1,676

1,121

2,026

1,560

350

439

1,492

2,638

1,623

2,873

130

234

(125)

(1,457)(48)(1,659)

77

(202)

4,741

5,785

5,423

6,798

682

1,012

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

1,631

1,747

115

7.1

1,613

2,171

558

34.6

1,851

1,863

11

0.6

(70)

(135)

(65)

-

5,025

5,646

620

12.3

- 4 -

Quarterly trends in net sales and operating profit are as follows.
Net sales and operating profit for the last four quarters

Second quarter

Fiscal Year ended
June 30, 2023
Third quarter(Millions of yen, rounded down to the nearest unit)
Fiscal Year ending
June 30, 2024
Fourth quarter
First quarter

Net sales

5,497

5,664

5,236

5,646

Operating profit

1,178

1,127

368

681

Operating profit margin (%)

21.4

19.9

7.0

12.1

Quarterly trends of net sales, operating profit and operating profit margin- 5 -(2) Discussion on Financial Position(i) Financial position
Total assets at the end of the first quarter were 17,942 million yen (down 763 million yen from the end of theprevious fiscal year). This was mainly due to a 551 million yen decrease in current assets, which was mainly
attributable to a 1,241 million yen decrease in cash and deposits and a 189 million yen increase in prepaid expenses.
On the other hand, total liabilities amounted to 6,144 million yen (down 232 million yen from the end of the previous
fiscal year). This was mainly due to a 621 million yen decrease in provision for bonuses.
Total net assets amounted to 11,797 million yen (down 530 million yen from the end of the previous fiscal year),mainly due to the recording of 482 million yen in profit attributable to owners of parent, 449 million yen in purchaseof treasury shares, and the payment of 564 million yen in dividends of surplus. As a result, the equity ratio was 65.8%(65.9% at the end of the previous fiscal year), and the Company believes it maintains a highly stable financial balancewith low interest-bearing debt.
(ii) Cash Flow
Cash and cash equivalents (hereinafter referred to as “net cash”) at the end of the first quarter decreased by 1,238
million yen from the end of the previous fiscal year to 9,642 million yen. The status of each cash flow and its factors
are as follows.
< Cash flows from operating activities >Net cash used in operating activities totaled 128 million yen (491 million yen used in the same period of the previousyear).
The main factors of increase were profit before income taxes of 679 million yen, an increase in accounts payable other, and accrued expenses of 408 million yen, and increase in deposits received of 611 million yen, while the main
factors of decrease were a decrease in provision for bonuses of 621 million yen, decrease in provision for bonuses
for directors (and other officers) of 142 million yen, increase in notes and accounts receivable - trade and contract
assets of 266 million yen, decrease in contract liabilities of 208 million yen, increase in prepaid expenses of 188
million yen, and income taxes paid of 670 million yen.
< Cash flows from investing activities >Net cash used in investing activities totaled 93 million yen (111 million yen used in the same period of the previousyear).
The main accounts of cash outflow were 43 million yen for purchase of property, plant and equipment, 17 million
yen for purchase of investment securities, and 27 million yen for payment of leasehold and guarantee deposits.
< Cash flows from financing activities >Net cash used in financing activities totaled 1,019 million yen. (493 million yen used in the same period of theprevious year)
The main components of cash outflow were 564 million yen in dividends paid and 449 million yen in purchase oftreasury shares.

- 6 -In the Group, cash flow from operating activities in the first quarter is at a low level due to the payment of income
taxes and the payment of performance-based bonuses to officers and employees, gradually increasing from the second
quarter onward, and is typically positive for the full fiscal year.
Maintenance fees in the Corporate Management Solutions Business and commissions paid in the Consolidated
Financial Disclosures Business are prepaid for the year in advance of the provision of services, so as a result, theoriginal business model has almost no need for 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 funds of 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 Grouphas established a commitment line totaling 3.5 billion yen with banks with which it does business. Accordingly, atpresent there are no concerns about funding, and rather, we intend to use the excess funds for strategic investment in
the future.
Quarterly trends of Operating cash flow (Millions of yen)

Operating cash flow (quarter)
Operating cash flow (accumulated)- 7 -(3) Earnings Forecasts
In August 2023, the Company announced a five-year plan (target to be achieved in five years), which ends in thefiscal year ending June 2028, as its new Medium-Term Management Plan, and the fiscal year ending June 2024 is thefirst year of the plan. Ahead of the start of the new Medium-Term Management Plan, we have defined the materialityof the Avant Group as “to become a software company that helps enhance corporate value.” As a concrete measure
to clarify what we aim to become during the period of the new Medium-Term Management Plan and realize thismateriality, we have reorganized the group and been developing business activities as the new Avant Group on
October 1, 2022. Through such initiatives, we have clarified the direction of each operating company. At the sametime, by positioning each operating company in growth markets, we have created a structure that will enable us toachieve sustainable sales growth. On the other hand, we do not believe that we are at the stage of reaping the full
benefits of the Group's reorganization in the early stage of the period of the new Medium-Term Management Plan.
Rather, we expect that the effects will gradually become apparent over a period of five years. In addition, while therestructuring associated with the Group’s reorganization has been completed, it is our policy to continuously andflexibly make growth investment that is required for realization of materiality.
Unstable factors such as inflation caused by soaring raw material prices and a concern over economic slowdown on
the back of financial tightening pose a risk of affecting the Group’s performance, which, on the contrary, is considered
to lead to more companies seeking to strengthen data-driven management and group governance, and therefore webelieve that demand for the Group’s business will continue to increase over the medium to long term.
As a result, the Company expects to achieve net sales of 24,000 million yen and operating profit of 3,850 million
yen in the current fiscal year.
In accordance with our existing dividend policy, we will raise the ratio of dividends to net assets, always being
conscious of exceeding the average of all listed companies, while at the same time striving to maintain stabledividends (in principle, dividends per share should not fall below the level of the previous fiscal year). There will be
no change to the policy itself, and we forecast a dividend of 19 yen per share for the current fiscal year, in the hopeof achieving the target of a ratio of dividends to net assets of 8% that we have set to achieve within the period of the
new Medium-Term Management Plan.
Trends of dividends (adjusted for stock splits)(yen/share)- 8 -2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of June 30, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsSecurities
Work in process

10,317,243

9,075,590

2,963,130

3,230,098

500,000
13,620500,000
6,949

Raw materials and supplies
Prepaid expenses

112,676
824,824

102,202
1,014,368

Other
Allowance for doubtful accounts

623,801(3,622)874,658(3,953)

15,351,673

14,799,915

487,466445,299

728,306

655,298

225

46,297

Total intangible assets

728,532

701,596

Investments and other assets
Investment securities

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
SoftwareOther

772,046

787,091

Long-term prepaid expenses
Leasehold and guarantee deposits

66,028575,243

91,008602,353

Deferred tax assets
Other

590,209134,393

380,595
134,393

2,137,920

1,995,441

3,353,919

3,142,337

18,705,593

17,942,253

Total investments and other assets
Total non-current assets
Total assets- 9 -(Thousands of yen)
As of June 30, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Lease liabilities

634,758
12,257

771,381
11,136

Accounts payable - other, and accrued expenses
Income taxes payable

512,708
354,192

894,987-

Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on orders received

2,796,086
1,038,329

2,587,586
417,175

172,380

30,25861,59432,063539,812

15,325
1,164,262

6,122,119

5,924,176

Provision for share awards
Other
Total current liabilities
Non-current liabilities
Lease liabilities
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities

6,039

3,598

210,900
38,016

216,758-

254,956

220,357

6,377,076

6,144,533

Net assets
Shareholders' equity
Share capital

345,113345,113

Capital surplus
Retained earnings

281,913
11,477,458

281,913
11,395,785

Treasury shares(608)(449,780)

12,103,876

11,573,031

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

183,925

179,168302

338

Foreign currency translation adjustment

40,41145,181

Total shareholders' equity

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 10 -

224,639

224,688

12,328,516

11,797,719

18,705,593

17,942,253

(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Three months ended September 30

Net sales
Cost of sales

Three months ended
September 30, 2022
(From July 1, 2022
to September 30, 2022)
5,025,971
2,776,438(Thousands of yen)Three months ended
September 30, 2023
(From July 1, 2023
to September 30, 2023)
5,646,570
3,273,146

Gross profit

2,249,533

2,373,424

Selling, general and administrative expenses

1,634,571

1,692,330

614,962

681,094

57

44

511
-

1,031
2,183

220
1,270

663

33

50

2,092

3,975

Interest expenses
Loss on investments in investment partnerships

144
1,538

87
3,181

Commission expenses
Foreign exchange losses

1,423
1,660

2,097
523

Compensation for damage
Other

10,831
289-

Operating profit
Non-operating income
Interest income
Dividend income
Gain on investments in investment partnerships
Subsidy income
Miscellaneous income
Other
Total non-operating income
Non-operating expenses

15,8885,889

Ordinary profit

Total non-operating expenses

601,165

679,179

Profit before income taxes

601,165

679,179

Income taxes - current
Income taxes - deferred(32,530)
262,798

22,506
173,703

Total income taxes

230,267

196,210

Profit370,898

482,969--

370,898

482,969

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 11 -

Quarterly Consolidated Statements of Comprehensive Income
Three months ended September 30
Three months ended
September 30, 2022
(From July 1, 2022
to September 30, 2022)
370,898(Thousands of yen)Three months ended
September 30, 2023
(From July 1, 2023
to September 30, 2023)
482,969

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(14,286)
64(4,757)36

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

9,011

4,769

1,773

-

ProfitOther comprehensive income(3,437)48

Comprehensive income

367,461

483,017Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

367,461

483,017--- 12 -

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)Three months ended
September 30, 2023
(From July 1, 2023
to September 30, 2023)

Three months ended
September 30, 2022
(From July 1, 2022
to September 30, 2022)
Cash flows from operating activities
Profit before income taxes

601,165

679,179

Depreciation

101,795

117,629

4,457

5,279

Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts

218

330

(712,122)(621,153)(127,172)(142,122)(2,474)(29,530)-

15,325Interest and dividend income(568)(1,076)

Interest expenses

144

87

Commission expenses

1,423

2,097

Loss (gain) on investments in investment partnerships

1,538

997

Subsidy income
Decrease (increase) in notes and accounts receivabletrade and contract assets
Decrease (increase) in inventories

(220)

-

25,116(266,917)(895)

17,145Decrease (increase) in prepaid expenses(66,554)(188,371)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Increase (decrease) in accrued consumption taxes(29,720)

136,623

128,193

408,484(85,244)

17,863

Increase (decrease) in contract liabilities(128,946)(208,500)

Increase (decrease) in deposits received

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 awards

691,949

611,346

Other, net(958)(13,328)

Subtotal

401,125

541,388

Interest and dividends received

759

1,076

Interest paid

(144)

(87)

Subsidies received

220-

Income taxes paid

(893,709)(670,642)

Net cash provided by (used in) operating activities(491,747)(128,264)

Cash flows from investing activities
Proceeds from redemption of securities

90,019-Purchase of property, plant and equipment(16,518)(43,162)

Purchase of intangible assets(50,717)(6,385)Purchase of investment securities(13,935)(17,500)

Payments of leasehold and guarantee deposits(120,775)(27,109)

Other, net

371

331

(111,554)(93,826)

Repayments of finance lease liabilities(3,392)(3,561)

Commission fee paid

(1,500)(2,177)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares-(449,172)

Dividends paid

(489,092)(564,642)

Net cash provided by (used in) financing activities(493,985)(1,019,554)

Effect of exchange rate change on cash and cash equivalents

6,161

3,202

Net increase (decrease) in cash and cash equivalents(1,091,126)(1,238,443)

Cash and cash equivalents at beginning of period

10,002,870

10,881,311

Cash and cash equivalents at end of period

8,911,744

9,642,868- 13 -

(4) Notes to Quarterly Consolidated Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Additional Information)<Transaction for the Delivery of Company Shares to Employees through a Trust >The Company has introduced a benefit trust as a welfare benefit for employees and as an incentive for theenhancement of the Company’s corporate value.
1. Overview of transaction
Under this scheme, pursuant to the Stock Delivery Regulations established by the Company in advance,
employees who satisfy certain requirements are granted points, and shares of the Company are delivered tothose employees to whom points have been granted and who satisfy the requirements for beneficiaries set forthin the Stock Delivery Regulations according to the number of points those beneficiaries have been granted. The
shares to be granted, including those to be granted in future, will be acquired using money in a trust establishedin advance by the Company, and the trust’s assets will be administered separately.
2. Company shares remaining in the trust
The Company shares remaining in the trust are recorded as treasury shares under net assets at their book value
in the trust (excluding associated costs). In this first quarter, there were 323,400 such treasury shares with abook value of 449,172 thousand yen.

- 14 -

(Segment Information)
Three months ended September 30, 2022 (From July 1, 2022 to September 30, 2022)
1. Information on net sales and profits or losses by reported segment(Thousands of yen)

Net sales
Net sales to external customers
Inter-segment net sales or transfers
Total
Segment profit

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion BusinessCorporate
Management
Solutions Business

1,565,592
65,862
1,631,454
358,287

1,613,636
25
1,613,662
196,836

1,846,741
4,582
1,851,324
309,647

Total

5,025,971
70,4705,096,441
864,771

2. Difference between the total amount of income (loss) of reportable segments and the amount recorded in thequarterly consolidated statements of income, and major details of said difference (matters related to difference
reconciliation)(Thousands of yen)
ProfitTotal amounts of reportable segments
Elimination of transactions between the Company and its segment
Corporate expenses (Note)
OthersOperating profit reported in quarterly consolidated statements of income

Amount864,771
207,106(457,295)
379
614,962(Note) Corporate expenses are mainly general and administrative expenses not attributable to the reportable segments.

Three months ended September 30, 2023 (From July 1, 2023 to September 30, 2023)
1. Information on net sales and profits or losses by reported segment(Thousands of yen)

Net sales
Net sales to external customers
Inter-segment net sales or transfers
Total
Segment profit

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion BusinessCorporate
Management
Solutions Business

1,638,348
108,934
1,747,283
364,223

2,169,415
2,513
2,171,929
348,264

1,838,807
24,424
1,863,231
148,641

Total

5,646,570
135,872
5,782,443
861,129

2. Difference between the total amount of income (loss) of reportable segments and the amount recorded in thequarterly consolidated statements of income, and major details of said difference (matters related to difference
reconciliation)(Thousands of yen)
ProfitTotal amounts of reportable segments
Elimination of transactions between the Company and its segment
Corporate expenses (Note)
OthersOperating profit reported in quarterly consolidated statements of income

Amount861,129
207,020(388,141)
1,086
681,094(Note) Corporate expenses are mainly general and administrative expenses not attributable to the reportable segments.

3. Matters concerning changes to the reportable segments, etc.
From this first quarter, the Company has revised the method used to categorize its business segments to date andchanged from the previous reportable segments of “Group Governance Business,” “Digital Transformation Business,”and “Outsourcing Business” to “Consolidated Financial Disclosure Business,” “Digital Transformation Promotion
Business,” and “Corporate Management Solutions Business.” The segment information for the three months ended
September 30, 2022 has been prepared according to the categorization method after the change.

- 15 -

(Revenue Recognition)
Breakdown of net sales from contracts with customers
As described in (Segment Information), the categories of reportable segments have been changed from this firstquarter, and the figures for the three months ended September 30, 2022 have been prepared according to thecategorization method after the change.
Three months ended September 30, 2022 (From July 1, 2022 to September 30, 2022)(Thousands of yen)Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Net sales to external customers

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion BusinessCorporate
Management
Solutions Business

90,47820,902

81,889193,270

1,475,114

1,592,734

1,764,852

4,832,701

1,565,592

1,613,636

1,846,741

5,025,971

Total

Three months ended September 30, 2023 (From July 1, 2023 to September 30, 2023)(Thousands of yen)
Consolidated
Financial
Disclosure Business
Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Net sales to external customers

Reportable segments
DigitalTransformation
Promotion
Business

Corporate
Management
Solutions Business

Total

44,997

9,285

13,02667,3091,593,351

2,160,129

1, 825,780

5, 579,261

1,638,348

2,169,415

1,838,807

5,646,570(Significant Subsequent Events)
Not applicable.

- 16 -