Alpha-Win Company Research Report
PCA(9629 TSE First Section)● SummaryIssued: 6/9/2021

Alpha-Win Capital Inc. Research Department
http://www.awincap.com/

Business Description
・ PCA CORPORATION (hereinafter, the “Company”) is an independent software manufacturer specialized inpackaged enterprise system software. It is a major specialized player in the industry.
・The Company was founded in 1980. Since then, it has been providing on-premises or cloud-based software mainly
to small/medium-sized companies. The Company’s mission is to contribute to society as a “Management Support
Company” that supports other companies conduct smooth management and operation, mainly by providing
enterprise system software that realizes high-level automatization.

Last Fiscal Year’s Financial Results and This Fiscal Year’s Forecast
・Last full fiscal year (FY 2021: note that the Company’s fiscal year is March-ending, so FY 2021 ends in March
2021), sales and profit dropped in reaction to the event-driven spike of demand in the fiscal year before theprevious (FY 2020). Its sales were Y13,308 million (-6.7% YoY), operating profit was Y2,314 million (-16.8%
YoY), and net profit was Y1,668 million (-8.1% YoY). These results, however, were higher than the Company’s
initial forecast as well as Alpha-Win’s forecast, which had been even higher than the Company’s. Also, althoughsales and profit had declined, they were the second highest in the Company’s history after their record highs
achieved in FY 2020. Sales and profit had both exceeded the levels achieved in FY 2019 before the eventdriven high demand.
・In the previous period of decline (FY 2015) after an event-driven high demand, there were large drops in sales
and profit, and the Company posted a net loss. This time, though, the situation turned out to be much different,
mainly because of the Company’s strategic shift in business portfolio to the continuous and stable subscriptionbased businesses (maintenance and cloud services).
・The Company announced that its forecast for this fiscal year (FY 2022) is as follows: sales of Y12,447 million,
operating profit of Y1,866 million, and net profit of Y1,192 million. Since the new revenue-recognition
standard will be applied starting this fiscal year, values cannot be simply compared, but the forecast appears
to indicate declines in sales and profit. Based on the previous standard, sales are forecasted to actually increase
to Y14,153 million (+6.3% YoY), since the decline following the previous event-driven spike of demand will
have ended by then. This forecast for sales is close to the record high achieved during the event-driven highdemand. On the other hand, profit is expected to decrease even by the previous standard, due to the drop in
maintenance sales following the end of support for the X series and the increase in costs related to investment
for future growth. However, operating profit (by the previous standard) is expected to be kept at a high level,
resulting in Y2,012 million (-13.1% YoY).

Alpha-Win Research Department’s Forecast of Financial Results
・Although there was a change in the revenue-recognition standard, this fiscal year’s company forecast for a
profit decline was somewhat surprising to us since we had expected a profit growth. After interviewing theCompany, we reviewed our forecast based on the new standard, and revised our previous forecast downward.
However, since the cost estimates for this fiscal year seem somewhat conservative, we believe that the potential
downward deviation from the Company’s forecasted profit should be limited. In fact, we believe that it is more
likely to be revised upward.
・Next fiscal year onwards, we predict that economic activities will gradually return to normal as the COVID-19
crisis settles down. There should also be no additional downward shifts due to the application of the newstandard. Considering these factors, we believe that the Company will begin increasing sales and profit again,
with the cloud as the growth driver. We have not changed our forecast that the annual profit growth rate willbe 8-10% (on a normalized basis) over the medium to long term.
1/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit
for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of thisReport belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)
Issued: 6/9/2021
Competitiveness・The Company has a customer base of approx. 240,000 companies. It has a high brand recognition and top-levelmarket share in accounting and finance software targeting small/medium-sized companies. It is especially taking alead in cloud-based enterprise system software in those fields and is the top player in the market. Going forward, thekey points continue to be the Company’s competition with its major competitors who have entered the cloud service
business at a later stage, and with other competitors that are focused on low-price-range services.
・Its strength is its concentration of resources in its field of expertise as a specialist to develop products and services
that meet various customer needs, including those related to changes in tax and other regulations, ahead of its
competitors. It also has a stable customer base and can provide high-quality products and services at reasonable prices.

Business Strategy
・As the basic business strategy for the PCA Group, the Company aims to create a strong earnings base for its main
businesses (strengthen and increase the sales of PCA Cloud and strengthen the subscription business for the onpremises), create new business opportunities (development of new technology and businesses), and strengthen the
management foundation to build a high-profit structure, as well as strengthening its monozukuri (“creation of things”;
development system for creating unique products and services). Through these strategies, it hopes to achieve further
growth, and has been executing various measures along its schedule. Meanwhile, the biggest challenge is to get the
new businesses (PCA Subscription, hyper, HR business, PCA HUB, etc.) on track to monetize them.
・The consolidated numerical goals (after upward revision) for this fiscal year (FY 2022), which is the final yearof the current medium-term management plan, had mostly been achieved in the previous fiscal year. This fiscal
year, it plans to start a part of the investment planned for the new medium-term plan that starts next fiscal year.
Stock Price・A defensive, domestic-demand-oriented, and small-cap growth stock that is positively influenced by the transition toa subscription-based business model, the workstyle reform, and tax reforms. This fiscal year, the consensus forcompanies listed on TSE First Section is that their profit will grow by about 30-40% on average, and large-cap,
economically sensitive stocks are being preferred. The Company, on the other hand, is expecting a drop in sales andprofit during this fiscal year, so its stock price has recently been underperforming the TOPIX.
・The valuation of the Company’s stock does not seem cheap based on this fiscal year’s forecasted values.
However, we believe there is an upside to the stock price over the medium to long term for the following reasons: its
likelihood of achieving its forecasted profit for this FY seems high, a greater return of profit to shareholders throughdividend hikes and stock splits can be expected again, its business is mainly subscription-based and is therefore stable
and continuous, its subscription business has a high growth potential, and a growth trend for sales and profit isexpected to start next fiscal year.
Return of Profit to Shareholders
・The Company has been stably paying dividend and has been buying back its shares. In FY 2020, it raised its annual
dividend per share by Y23 (ordinary dividend by Y3, plus a commemorative dividend of Y20) to Y54 in total. ThisFY, it plans to keep its ordinary dividend at Y34 per share, the amount after the dividend hike. When the Quo Card
shareholder benefit plan is taken into account, the actual dividend yield comes out to be (at maximum) 1.3% basedon this fiscal year’s forecasted values. Currently, there is a distance from its goals for dividend payout ratio (33%)
and DOE (2.5%). With solid performance, further return of profit to shareholders is possible over the medium to longterm, including dividend hikes, stock splits, share buybacks, and expansion of the shareholder benefit program.
! 9629 PCA
FY
2019
2020
2021
2022
2022
2022
2023
2024

Sector: Information & Communication " Figure A
Sales

YOY

O.P.

YOY

R.P.

YOY

N.P.

YOY

EPS

BPS

(million yen)（%）(million yen)（%）(million yen)（%）(million yen)

（%）

(Y )

(Y )

(Note)

11,439
16.9
1,248
54.7
1,277
53.0
906
14,26624.7
2,781 122.8
2,808 119.9
1,816
13,308-6.7
2,314 -16.8
2,340 -16.7
1,668
CE: Old Standard
14,1536.3
2,012 -13.1
2,046 -12.6
1,294
CE: New Standard
12,447
1,866
1,899
1,192
E: New Standard
12,500
1,900
1,930
1,210
E: New Standard
13,000
4.0
2,070
8.9
2,100
8.8
1,315
E: New Standard
13,600
4.6
2,270
9.7
2,300
9.5
1,440
CE: the Company's forecast/estimate. E: Alpha-Win Research Dept.'s forecast/estimate.

(Note)The Company's fiscal year is March ending (e.g. FY 2022 ends in March 2022).

105.5
100.4
-8.1
-22.4
8.7
9.5

Dividend（Y ）133.25 1,789.76
272.92 2,027.42
250.49 2,374.93

31.00
54.00
34.00

178.86181.51
197.26216.01

34.00
34.00
36.00
36.00

2,148.71
2,296.21
2,459.47
2,639.48

The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) is applied starting in FY 2022.

2/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit
for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of thisReport belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021! Stock Price and Valuation Indicators: 9629 PCA " Figure B
Item

6/4/2021

Item

P/E

P/B

Dividend Yield

Dividend Payout Ratio

Stock Price (Y)4,230

Last FY's Results

16.9

1.8

0.8%

19.8%

Shares Outstanding (thou.)

7,700This FY's Forecast

23.3

1.8

0.8%

18.7%

Market Capitalization (million yen)

32,571

Next FY's Forecast

21.4

1.7

0.9%

18.3%

62.4%

Last FY’s ROE

11.4%

Dilutive Shares (thou.)0

Equity Ratio at Last FY-End(Note) Forecasts were made by Alpha-Win Research Dept.

【Stock Chart (end-of-week prices) : 9629 PCA】

Figure C

(Y)

5.00

6,400
5,900
5,400
4,900

4.50

Stock price (left axis)
Price relative to TOPIX(right axis)

4.00

4,400

3.50

3,900

3.00

3,400
2,900

2.50

2,400

2.00

1,900

1.50

1,400

1.00

08
/1
6
01
/1
7
06
/1
7
11
/1
7
04
/1
8
09
/1
8
02
/1
9
07
/1
9
12
/1
9
05
/2
0
10
/2
0
03
/
(M 21

M
/Y
Y
)

900

【Performance】

Period1 month
3 months
6 months
12 months

Return
0.6%
-0.6%
-5.9%
-5.4%

vs. TOPIX
-1.3%
-0.9%
-13.3%-24.7%(Note) Reflects stock price and index
values up through the closing price on
6/4/2021. The return for the 1-month
period is the comparison between theclosing price on the last day of May andon June 4. The same applies to the otherperiods. Prepared by Alpha-Win
Research Dept.

(Note) From the fourth week of August 2016 to the first week of June 2021

(Note) In this Report, the values for the same item may not match completely due to rounding, processing during calculation, methodof display, etc.

＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

Disclaimers
This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc.
(hereinafter “Alpha-Win”) on the request of the company presented in this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or
reliance on this Report. Investors who read this Report must make their own decisions on all investment mattersand take full responsibility regarding their investment.
This Report has been prepared with a focus on objectivity and neutrality based on the analysis of generally accessible
public information and supplemental information including interview(s) by the analyst. Alpha-Win, the writer, and/or
other persons involved in the publication of this Report may already hold, or buy and sell in the future, the stock of thecompany presented in this Report.
Contents of this Report are based on information current as of the issue date and are subject to change without
notice. For the latest (updated) report, please see our website (http://www.awincap.com/). We also do not
warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit forany purpose and do not accept any responsibility or liability.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied, cited, ortranslated without our consent.
For inquiries regarding this Report, please send us an e-mail to info@awincap.com. However, Alpha-Win and thewriter of this Report do not have any obligation to reply to inquiries.
PFV2021-0620-0900

3/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit
for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of thisReport belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

Contents
1．Company Overview .................................................................................................................... P5
Major Specialized Player in the Enterprise System Software Industry ........................................ P5
Business Philosophy ..................................................................................................................... P7
2．Business Description and Business Model ................................................................................ P8
Enterprise System Software Crucial for Efficient Business Operations ...................................... P8
Business Model with High Continuity and Marginal Profit Ratio ............................................... P8
Expansion of Highly Stable and Profitable Subscription-Based Business ................................... P9
Cloud Business as the Growth Driver ........................................................................................ P10
Topic 1: Impact of COVID-19 and the Company’s Response ................................................... P11
Topic 2: Acquisition of Dreamhop Co., Ltd. and Development of HR Business ...................... P12
3．Shareholder Composition ......................................................................................................... P15
Change in Composition by Type of Shareholder ....................................................................... P15
Major Shareholder Composition ................................................................................................ P15
4．ESG .............................................................................................................................................. P17
Environment, Society, and Governance ..................................................................................... P17
5．History of Growth ..................................................................................................................... P18
Company History ....................................................................................................................... P18
Past Transition in Financial Results ........................................................................................... P18
6．Business Environment .............................................................................................................. P21
Trends of the Software Market ................................................................................................... P21
Comparison with Competitors .................................................................................................... P22
7．Last Fiscal Year’s Results and This Fiscal Year’s Forecast ................................................. P25
Results for FY 2021 (last fiscal year) ........................................................................................... P25
PCA’s Financial Forecast for FY 2022 (this fiscal year) ............................................................. P28
Alpha-Win Research Dept.’s Financial Forecast for FY 2022 (this fiscal year) ....................... P31
8．Growth Strategy ........................................................................................................................ P33
Management Indicators and Areas of Focus .............................................................................. P33
New Medium-to-Long-Term Vision“PCA Vision 2030: First Stage – 2022 Medium-Term Management Plan” ...................... P33
Alpha-Win Research Dept.’s Forecast of Medium-Term Financial Results .............................. P35
9．Analyst’s View ........................................................................................................................... P37
PCA’s Strengths and Challenges ................................................................................................ P37
Shareholder Return and Shareholder Benefit Program .............................................................. P38
Stock Price and Factors that May Affect Stock Price ................................................................ P39

Note: 1) Upon translating to English, when the page numbers differed from the original Japanese version, they were
adjusted to those of the English version of the report. 2) The Company’s fiscal year is March-ending, i.e., FY 2022
ends in March 2022.

4/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

1. Company Overview
w Major specialized player
in the industry with 41
years of history,
developing and providing
packaged enterprisesystem software fordomestic small/mediumsized companies(1) Enterprise system: a part of acompany’s information systemthat deals with matters directly
affecting business, such as
financial accounting, production
control, sales and inventory
control, purchases, HR, andpayroll. A general term for backoffice applications. Also called
the mission-critical system, it
serves as an important coresystem for operations/services.
w The PCA Group iscomposed of the Company
and 3 subsidiaries.
Acquired Dreamhop andsold Keepdata.
(2) Work management system:
also called the attendance
management system, it
manages/utilizes various info on
working hours. Can
automatically aggregate data on
working hours, etc., and prepare
data to link with payroll
software. Provided as onpremises or by cloud.

w Consolidated-to-parentcompany sales ratio has
stably been around 1.1.
The summed recurring
profit of the consolidated
subsidiaries (consolidated
minus parent) has been asurplus.

◆ Major Specialized Player in the Enterprise System
Software Industry
PCA CORPORATION (hereinafter, the “Company”) is an independent,
mid-tier, specialized company in the software industry. The Company is a
specialist in developing and selling packaged software (software preparedfor use in certain operations) for enterprise systems1, such as those foraccounting and tax. It is a major player as a specialist in such software forsmall/medium-sized companies.
About 240,000 companies are active users of the Company’s products.
Sales toward ordinary companies comprise greater than 90% of the total
sales. With regards to the size of the corporate customers, the Company isespecially strong in business toward small/medium-sized companies with50 to 100 employees. 80% of the Company’s sales are made via distributors(the remaining 20% are direct sales). The Company’s customers arediversified, and by monetary value, many of its major customers are large
corporations. It is the top player in accounting software for public benefit
corporations, with its software having been implemented by over 8,000
public benefit corporations in total.
As of the end of May 2021, the Company’s group was composed of a totalof four companies: the Company and three consolidated subsidiaries. The
consolidated subsidiaries are Xronos Inc. (development/sales of work
management system2 and time recorders; the Company founded thissubsidiary in 2001 and owns 80% of the shares), KEC Corporation(implementation support, operation, maintenance, and other services for
PCA’s products/services; wholly owned and founded in 1998 by theCompany), and Dreamhop Co., Ltd. (became wholly acquired through an
acquisition; described in detail on page 12) that was newly acquired in
October 2020.
The Company acquired Keepdata Ltd. (hereinafter, “Keepdata”) in March
2019 and made it its consolidated subsidiary (acquired 66.8% of the sharesfor approximately Y44 million). It had acquired this company as a foothold
for the new data utilization business, since it has technology development
skills as well as expertise and proven record in the business. However,creating synergy with the Company in system linkage and sales hadturned out to be difficult, and Keepdata had been continuously posting a
net loss and an excess of debt. In December 2020, the Company sold allshares of this subsidiary to a third party (sales price was not disclosed).
The Company ended up selling Keepdata less than two years after its
acquisition, but this decision should contribute positively toconsolidated results in terms of profit starting this fiscal year, since
Keepdata’s sales (estimated by Alpha-Win to be about Y80 million in
the previous fiscal year) and net loss (similarly estimated to be several
dozen million yen) will no longer be included.
The ratio of consolidated-to-parent-company sales has stably remained ataround 1.1, indicating that a greater weight is placed on the parent
company’s financial results (Figure 1 on page 6). This fiscal year, with thechange to the new revenue-recognition standard, the ratios for sales andrecurring profit are both expected to be 1.3.

5/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
Although the subsidiaries’ profit/loss is not disclosed, the ratios of
consolidated-to-parent-company recurring profit have been in the range of
1.0-1.6 during the fiscal years that the Company has been in the black(including this fiscal year’s forecast). Additionally, the summed profit/lossof the three subsidiaries, calculated by consolidated minus parent-company
recurring profit, has been a surplus since FY 2016 (Figure 2).
Among the subsidiaries, Xronos seems to continue to contribute the mostto the financial results, thanks to the workstyle reform. Its sales were Y1.5
billion in FY 2019 and Y2.1 billion in FY 2020. Sales in FY 2021 have notbeen disclosed at this point. In FY 2025, the company is planning for salesof Y4 billion (according to Xronos’s former website). Although its profits
have not been disclosed, the subsidiary has mostly likely been staying in
the black like KEC and contributing positively to consolidated profit.

【Figure 1】Ratio of Consolidated-to-Parent-Company Sales (ratios shown on upper portion of graph)
Sales of parent company
Consolidated sales minus parent company sales

Unit: million yen

16,000

1.1

1.1

1.1

1.1

1.1

1.1

1.1

14,000

1.1

1.3

887
1,167

12,000712
10,000Consolidated
to parent
company
ratio

782

825

732
8,000

681

2,891

680
13,3796,000

10,727

9,693
4,000

7,487

7,761

FY 2015

FY 2016

8,628

8,960

FY 2017

FY 2018

12,141
9,556

2,000
0

FY 2014

FY 2019

FY 2020

FY 2021

FY 2022 CE【Figure 2】Ratio of Consolidated-to-Parent-Company Recurring Profit (ratios shown on upper portion of graph)
R.P. of parent company
Consolidated R.P. minus parent company R.P.

Unit: million yen

3,000

1.2

Consolidated

N.A

1.6

1.1

1.0

1.2

1.2

1.2

parent
1.3 tocompany
ratio

402

2,500

443

2,000

382
1,500

1,000

221

500

918

238

59
26

0

2,406
1,897

34

-139
-19

41

FY 2015

FY 2016

800

1,517
1,039

405

-500
FY 2014

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022 CE(Ref) Figures 1 and 2 were both prepared by Alpha-Win Research Dept. based on the securities report. CE: the Company’s business plan.

w Founded by certified
public accountants in 1980
w Rich in cash. Debt-lessmanagement.

The name of the Company comes from the five founders who were certified
public accountants (CPA); the letters CPA were shuffled into themeaningful name P (Professional) C (Computer) A (Automation).
The Company’s finance is firm, rich in cash and debt-less. Relative to its
sales of Y13.3 billion (last fiscal year’s result) and total assets of Y25.4
billion, its debt is zero and it has Y11.7 billion in cash and deposits (values
as of the end of March 2021), which is equivalent to 46% of total assets and10.6 months’ worth of monthly sales.
6/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
Free cash flow (FCF) has been positive except for a certain period, and cash
and deposits on the balance sheet (B/S) have been generally increasing(Figure 3). For the financial ratios, its equity ratio is 62.4% and current ratio
is 260.4%, also indicating financial soundness (values as of the end of
March 2021).

【Figure 3】Change in Cash Flow (CF) (unit: million yen)
Unit: million yen
Operating CF ①
Investing CF ②
Financing CF
FCF ( ①+②)
Cash and Deposits (on B/S)FY 2010
627
-405
-207
222
6,817

FY 2011
488
-127
-210
361
5,970

FY 2012
141
185
-205
326
5,493

FY 2013
847
-407
-215
440
6,621

FY 2014
1,048
-750
-216
299
6,606

FY 2015

FY 2016

547
-606
-284
-60
6,154

1,427
-627
-214
800
6,612

FY 2017
1,533
-395
-215
1,137
7,487

FY 2018
1,270
1,715
-216
2,985
7,269

FY 2019
2,141
-80
-572
2,061
7,280

FY 2020
3,328
-719
-225
2,609
10,716

FY 2021
1,632
253
-355
1,885
11,749(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary(Note) Cash and deposits shown are values from the balance sheet, not values used in the CF calculation.

◆ Business Philosophy
w The Group’s basic
business policy is to “aimfor a more rational
business managementwith clear vision.”w The mission statement isto “contribute to society
by developing andproviding packaged
enterprise system
software that enables
high-level automation.”

The Company’s business philosophy was announced as “customer-first”
when it made its first public offering in March 1994. Then, in 2010, it laidout the three key ideas of its business philosophy and 34 rules for the codeof conduct and announced that the basic business policy of the PCA Group
is to “aim for a more rational business management with clear vision.”
The Company’s mission statement is to “contribute to society by
developing and providing packaged enterprise system software that enables
high-level automation.” While its corporate culture is down-to-earth andhomely, the Company is also characterized as having a pioneering spirit in
the rather conservative industry, conducting R&D and launching new
products ahead of its competitors.
The following are the three key ideas of the Company’s businessphilosophy:
1) We will always be customer-first.
2) We will aspire to become a highly profitable company over the long termwith sound management.
3) We will treat employees like family and create a homely culture.

7/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

2．Business Description and Business Model◆ Enterprise System Software Crucial for Efficient
Business Operations
w Enterprise systems are
mission-critical. Stability
and reliability are crucial
elements since they areused inside companies.

The Company’s core business is enterprise systems that support internalbusiness operations. Unlike systems that simply work on personal
computers, an enterprise system is a computer system that supports a seriesof processes throughout all business operation flows within a company.
Since it is mission-critical for business operations, it is required to bereliable, efficient, stable, user-friendly, secure, and expandable.
The main methods for building an enterprise system are package-based
system development and original system development. Generally, themethod of combining sold packaged software into a system has advantages
such as short development time, cheapness, and having relatively few bugs.
On the other hand, its disadvantage is the difficulty in customizing thesystem to a company’s business conditions, operations, management styles,
and other specific needs.
As for original software development and implementation, outsourced
development and in-house development are the two options. In either case,the advantage of an original system is that it is easier to use since it can becustomized to a company’s needs and operations. However, development
cost and time are larger and longer, and it requires revisions, addition offunctions, and maintenance after implementation. Micro-sized, small-sized,
medium-sized, and mid-tier companies especially tend to find thedevelopment, implementation, and operation of original software difficult
due to financial, staff, and time constraints.

(3) Accounting software:
application software forrecording, processing, andintegrated management ofaccounting data
(4) HR and payroll software:
software for payroll calculationsand HR management

In response to this, the Company has been developing original enterprisesystem software that specifically meets the needs of one-person businesses
and micro-sized (SOHO), small-sized, medium-sized, and mid-tiercompanies in areas such as accounting3, finance, HR and payroll4, sales
management, purchasing and inventory management, and tax. The
enterprise system software is either packaged (on-premises: conventional
products operated in-house by a corporate user) or cloud-based (a service
where a corporate user can use the enterprise system software via theInternet easily and at a low cost without having to prepare its own server).
The Company sells and provides its software through either direct orindirect channels.
Additionally, the Company has not only been developing and sellingenterprise system software but has also been expanding its business byproviding consulting services based on solution proposals. With its
subsidiaries, the Company has also been providing various support services
such as maintenance service and implementation/operation support. Goingforward, the Company plans to further strengthen these businesses.

w Provides about 26 types oforiginally developed
packaged enterprisesystem software
w About 70% of sales comesfrom originally developed
products and services◆ Business Model with High Continuity and Marginal
Profit Ratio
The Company provides a total of about 26 types of software (counted byproduct name, including options) and its business model is based on themass production of a limited number of types of products. Due to the natureof its business, its marginal profit ratio is high. Its original products andservices (products/maintenance/cloud) account for greater than 70% of the

8/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

w Entry barrier is high sincereliability and proven trackrecord are required.

Issued: 6/9/2021
total sales, while the remaining 30% comes from other companies’ products(purchased merchandise) in the merchandise / other operating revenue
categories. From the development to the release of a new product,
approximately two years and a corresponding amount of cost are necessary
per product. Version upgrades (revision updates), which are prepared asneeded, are released usually in a one- to two-year cycle. In recent years,
however, software functions have become so enhanced that customers now
tend to purchase less in response to this version upgrade cycle.
Since these types of software are related to operations that are required tobe highly reliable, and since software replacements give rise to issues ofcost, labor, and data continuity, their users show little interest in actively or
frequently replacing their current software with an alternative of a different
company. Therefore, customer loyalty is high, and contracts have highcontract repeat rates (50% to 90% or greater depending on the type ofsoftware). The barrier to market entry is high because trust and brandrecognition are a must in this industry and its companies are currently
mostly being able to exist alongside one another by taking strong positions
in different niches.

◆Expansion of Highly Stable and Profitable SubscriptionBased Business
w Sales are divided into fivecategories. Focused on thesubscription-based
businesses.

Until FY 2016, sales and profit/loss had been disclosed for the four businesssegments of “for ordinary companies,” “for non-profit organizations,”“medical,” and “cloud.” In FY 2017, all business segments became
consolidated into one. Sales are now disclosed for fives sales categories(types): “products,” “merchandise,” “maintenance service,” “cloud service,”and “other operating revenue (also called “solutions”)” (Figure 4). Profit
and loss by segment are no longer disclosed.

【Figure 4】Sales Classification (by category)
FY 2021 (results)

Sales Classification by
Category

Contents

Productｓ

Sales of original packaged software (accounting, sales management, purchasing and inventory management, payroll, HR, etc.) (includes version upgrades)

Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue

Sales of other companies’ products such as ledgers
By signing up to PSS membership, users can receive inquiry and support services from call centers
Subscription service for software provided via the cloud
Sales of other companies’ products such as software/hardware combined with its original products; also called “solutions”

Total & AverageSales(million yen)

1,985
485
3,552
4,057
3,227
13,308% of Total Sales Est. Gross Margin

14.9
About 70%
3.6
About 40%
26.7
80-90%
30.5
60-70%
24.2
About 25%100.0 Result: 60.3%(Ref) Prepared by Alpha-Win Research Dept. based on the securities report and interview. Includes estimates. Sales for each category are based on
the new standard.
(Note) Maintenance service and cloud service are the subscription-based businesses.

w Subscription-based
businesses (maintenance& cloud) account for about
57% of the total sales.

In recent years, sales for the service of providing cloud versions of theCompany’s packaged software have grown significantly, and the service
has become the Company’s growth driver with regards to both the overallsales and profit. In FY 2021, sales of the cloud service were the largest by
sales category, followed by maintenance service. The sum of these twocategories, or “subscription-based revenue” (also called the “stock business”
in Japanese), accounted for about 57% of the total sales. The maintenanceand the cloud services have had high gross margins and contract repat rates
and have been stable sources of profit, contributing to a greater stability ofbusiness and profit.
On the other hand, sales of products and solutions (other operating revenue)
tend to be influenced by event-driven high demands, replacement cycles,
and version upgrades.
Consolidated sales breakdown by the operation type of software is notdisclosed. However, sales seem to be diversified, with the sales for

9/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
accounting software predicted to be the largest by composition (about 15%of the total sales), followed by sales/purchase/inventory management
software, and then by payroll/HR software.
Currently, the Company primarily sets internal target values based on
software sales (or the sold number of products) by operation type. Target
values are not set for the profit/loss of each software operation type.
However, in line with the medium-term plan, the Company has beenworking with an external IT consultation firm to create and adopt new
performance management indicators to make a transition from sales-based
management to profit-based management. The Company has commented
that the margins of each software operation type do not greatly differ
between one another, but the main accounting software business ispresumably generally the most profitable.
The percentage of new software sales or version upgrade sales over the total
sales changes every year, but the percentage of version upgrades has always
been greater than 50%. As reference, the Company’s on-premises products
tend to be installed and used by users on a single PC (stand-alone).

w Rapidly shifting frompackaged software sales tothe cloud/subscriptionbased modelw The rapidly growing cloudbusiness is based on a
subscription-based, stablebusiness model. Taking alead in the market as the
single, obvious top player,
the Company has a highcompetitive advantage.
(5) API (Application
Programming Interface):interface/network to operate
software; connects the softwareand the program.
(6) Kintone: cloud service forbuilding business app on a web
database, provided by Cybozu.
Allows easy system build-up andlinkage with other systems. For
example, since June 2021, theCompany has been providing aplugin that allows nonprogramming linkage between
PCA Cloud and Kintone.

◆ Cloud Business as the Growth Driver
For many years, the Company had been focused on the business of selling
conventional packaged software, also known as on-premises. However, as
the Internet became more sophisticated and more widely used, theCompany predicted that the demand for the cloud will rise due to its userfriendliness and cost performance. Therefore, in 2008, the Company started
providing cloud-based services more than ten years ahead of its competitors.
Since then, it has been providing cloud versions for all of its on-premises
software.
In the cloud business, users pay fees continuously for a certain period to use
the software (subscription-based business model). It is attractive as a stable,
subscription-based business model, similar to the maintenance service(average monthly payment of 20-30 thousand yen per corporate user). As
the cost of this cloud business is largely fixed due to the relatively small
amount of variable costs such as those related to server maintenance,
manufacturing, sales, and logistics, it has a high marginal profit ratio.
The Company leads the industry as No. 1 in cloud-based enterprise system
software for small/medium-sized companies. The advantages listed below
seem to be making the Company stand out from its competitors in the field.
In recent years (2017-2018), its competitors have also entered the cloudmarket in full scale as their “first year of the cloud,” but the Company is
expected maintain its advantages for the meanwhile.
・ Providing a wide variety of advanced software for business operations
・ Originally developed open architecture; low cost・ Economies of scale are in effect, with more than 16,000 corporate users of
the cloud service already; well profitable
・ Consequently, it has a very strong price advantage compared to its
competitors
・ More than ten years’ worth of operation expertise・ User-friendly software, with WebAPI5 allowing linkage with othercompanies’ cloud (linkage already possible with about 60 companies,
including Kintone6 of Cybozu)

10/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
The Company has recently been focused on the cloud service, and its
number of contracts as well as sales has been growing steadily (Figure 5 onpage 11). As the business expands amidst the COVID-19 crisis, its growthrate has somewhat slowed down, but it is still believed to continue to be theCompany’s main growth driver.

【Figure 5】Change in the Sales of PCA Cloud and the Number of Companies thatHave Implemented PCA Cloud
25,0006,000

Sales of the cloud service (right axis: million yen)

20,000

Number of companies that have implemented PCA
Cloud (left axis: companies)

5,000

4,000
15,0003,000
10,000
2,000

5,000

1,000

0

0
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 E 2023 E 2024 E(Note) Sales from FY 2008 to FY 2010 have not been disclosed. Estimates are partially included in the number of companies thathave implemented PCA Cloud.

(Ref) Prepared by Alpha-Win Research Dept. based on the Company’s financial results briefing materials andinterviews. (E) represents estimates/forecasts made by Alpha-Win Research Dept.

◆ Topic 1: Impact of COVID-19 and the Company’s
Responsew Taking measures against
COVID-19. Shifted toremote work.

The Company has established the COVID-19 Response Headquarters andhas been encouraging work-from-home and staggered working hours for its
employees. It been on remote work in general. It has been preparing thetelecommunications infrastructure and other environment for work-fromhome by providing mobile devices such as iPhones to all employees, aswell as providing remote work preparation stipend and remote work
allowances.
It has also prepared the system for remote call center operation. Currently,
about 80-90% of its officers and employees still work from home. To fulfill
its social mission to provide enterprise system software while ensuring thesafety of its officers and employees, it has also been on a shift-work system.
For its customers and business connections, the Company has cancelled or
postponed events, seminars, and in-person meetings, and has shifted them
online.

w Due to the nature of its
business, the impact of
COVID-19 has overall beenminimal.
w Sales activities toward newcustomers, businessdevelopment, and support
services have beensomewhat impacted.

The impact of COVID-19 on business results has been small, since theCompany’s packaged software products can be installed and implemented
by the customers themselves, and its enterprise system software can also
be provided on the cloud thanks to the large shift that it had made to thesubscription-based business model and subscription businesses. The
Company believes that it can continue to make revenue through the mix ofremote and in-person sales activities.
However, there has undeniably been some impact on new customer
acquisition, support services (visiting customers to help implement
11/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)
w With the impact of
COVID-19, sales expansionof new businesses andservices has been slow.

Issued: 6/9/2021
software), new business development, etc. Its main users are
small/medium-sized companies who are financially susceptible to theimpact of the self-restraint request under the emergency declaration and thestagnation of economic activities. If the situation is prolonged, there may
be a negative impact on the sales expansion of the existing services and thedevelopment of new businesses.
Regarding “PCA Subscription,” a new business started as a subscription
service for the on-premises, and the new product “hyper series,” sales
expansion has been slow partially due to COVID-19. “PCA HUB”
(providing a data utilization platform for small/medium-sized companies)
too had initially been planned to be released in April 2021, but its
development plan has been similarly impacted. The Company currently isin the process of reviewing its plan.

◆ Topic 2: Acquisition of Dreamhop Co., Ltd. andDevelopment of HR Businessw Acquired Dreamhop, acompany focused on stresscheck services.
(7) Stress check: The revision in
the Industrial Safety and
Health Act has required
workplaces with 50 or more
employees to conduct stresschecks of its employees startingin December 2015.
Checks are conducted on aregular basis, and the results
are notified to the individual.
The purpose is to reduce themental health risk of each
person as well as improving theworkplace environment.

w Plans to increase synergy
within the PCA Group andexpand the HR businessw Developing business inwide areas of mental
healthw Has an excellent customer
base including thegovernment, associations,and large companies in theprivate sector. Strong trackrecord.

Overview of Dreamhop Co., Ltd.
In October 2020, the Company acquired Dreamhop Co., Ltd. (hereinafter,“Dreamhop”; headquartered in Shinjuku-ku, Tokyo; Toshiyuki Mukuno as
the new president; established in June 2005; capital of Y56.5 million after
capital increase; a little less than 20 employees) for approx. Y108 million
as a wholly owned subsidiary.
Dreamhop is a small-sized company specialized in services and business
management related to mental health and health management, with a focus
on stress check services7. It has unique programs and expertise and offers
full operation of the programs on behalf of its corporate customers.

Background of Acquisition
The PCA Group already has a lineup of HR (human resources) solutions,such as the PCA Salary and the PCA Personnel Management series and its
subsidiary Xronos’s work management system.
The Company believes that its HR solutions must urgently be strengthened
to sustainably grow as a Management Support Company. For this purpose,
the Company acquired Dreamhop, with whom synergy in the development
and expansion of business connections as well as cross-selling and upselling can also be expected. Note that the Company has previously used
Dreamhop’s services as one of its customers and had been in a collaborative
partnership.

Business Description
With the corporate value of “Data x Technology x Human Service,”
Dreamhop supports the organizational improvement of companies. It
provides stress checks, uses the obtained data to discover the bottlenecks to
the organization, and offers suitable measures for fixing the problem.
Through these means, the company supports its user’s workplaceenvironment improvement, employee retention, and recruitment
enhancement. It is developing business in wide areas of mental health,including employee engagement solutions and harassment prevention.
Its customers include the Ministry of Health, Labour, and Welfare, theMinistry of the Environment, the Tokyo Metropolitan Government, City of
Sapporo, and other governments, municipal governments, and associations

12/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
such as the Japan Health Insurance Association. It also has many companies
in the private sector as its customers.

Track Record
Dreamhop’s tests have been conducted at more than 10,000 offices. Afterthe stress check, contracts have been made with more than 1,200
organizations (governments and companies in the private sector). Currently,
more than 1 million people are using its service.

w Planning to use big data
to create synergy with theexisting HR businesses

Future Business Development and Synergy
With the drastically changing working environment amidst the COVID-19
crisis, the Companies believes that the mental health care of employees has
become crucial and is a key area in HR solutions.
It plans to use big data and introduce PCA’s technology in areas which has
historically been analog to develop more effective services.

w Conducted rebranding
and the expansion ofservice lineup after theacquisition

Expansion of Service Lineup
After the acquisition, the stress check program “ALART” was rebranded tothe mental health program “ORIZIN.” The service lineup was also
expanded: the original mental health program is “ORIZIN,” the newly
created anti-harassment program is “ORIZIN+,” and the occupational
health physician service was named “irodori” (Figure 6).
The price system is based on a monthly subscription payment for the main
service determined by price per user and other factors, combined with theprice of options.
【Figure 6】Rebranding of the Mental Health ProgramNEW（注 8）Client-API：PCA
ソフトの機能を外部アプリ
ケーションから利用できる
API（アプリケーションイ
ンターフェイス） 。
w Dreamhop posted a net
loss due to upfront
investment costs. Excess indebt was relieved throughan increase in capital.
Hopes to gain net profit
within several years.

w Small sized, with relatively
heavy fixed costs. To gain
net profit, top line growthwould be necessary.

Metal Health
ProgramAnti-Harassment
ProgramNEW

Occupational
Health Physician

・Professional service
provided online and inaddress not needed
testing
person・Qualified health・Liability insurance included ・Chat-based healthpractitioners to conduct the(max. 100 million yen)consultation
tests
・Consultation desk
・Online video contents
・Various languages available
・e-learning
・Adjustment of physician’s(14 languages)
office hours to fit the・Additional questionnaires
company’s operation hours
Dreamhop's past financial performance disclosed
in withits news
release is・e-learning・Work
mental healtha team2020,
tosummarized in Figure 7 on page 14. In the fiscal practitioners
year endedasMay
provide support

・Web-based
assessment;
email materials
・Comes with stress check(Ref)
Financialresults briefing

Financial Performancesales grew but a net loss was posted: sales were Y129 million (+16.5%
YoY) and net loss was Y38 million (a net profit of Y0.2 million was posted
in the previous fiscal year). There was also an excess of debt by Y20 million.
These results seem to have been due to increased upfront investment costs
and fixed costs for the expansion of systems and businesses.
After the acquisition, PCA increased Dreamhop’s capital by Y80 million
and the excess in debt seems to have been relieved. Going forward,
Dreamhop’s sales are planned to be increased by using PCA’s sales force
to increase its customers, while also working on the streamlining ofbusiness. Net profit is hoped to be achieved within several years.

13/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021【Figure 7】Transition in Dreamhop’s Financial Results
Unit: million yen
Sales
Operating Profit
Net Profit
Net Assets
Total Assets
Net Assets Per Share (yen)FY ended May 2018
104
2
0
17
102
10,507(Rounded to the nearest unit)

FY ended May 2019
111
4
0
18
86
10,645

FY ended May 2020
129
-39
-38
-20
74
-12,383(Ref) Prepared by Alpha-Win Research Dept. based on the news releasew Became a consolidated
subsidiary. Goodwill
amortization expense will
be posted every fiscal year.

Goodwill and Factors that May Affect PCA’s Results
Judging from Dreamhop’s finance and its balance with sales, theacquisition price seems to be slightly expensive (P/S: 0.84), and goodwill
from the acquisition is estimated to be about 150 to 200 million yen.
Dreamhop became a consolidated subsidiary in the previous fiscal year (FY2021), but since it was acquired in late October 2020, its impact on last
fiscal year’s results seems to have been limited (Dreamhop's financial
forecast for its fiscal year ending May 2021 is not disclosed).
Starting this fiscal year (FY 2022), Dreamhop’s results will be fully
included in the consolidated results (of the PCA Group). PCA has not
adopted the IFRS, so we estimate that the total goodwill amortization is
Y175 million, the amortization period is five years, and that last fiscal
year’s amortization expense was Y17 million and this fiscal year’s will be
Y35 million.

14/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

3．Shareholder Composition◆ Change in Composition by Type of Shareholder
Regarding shareholder composition by shareholder type as of the end of
March 2021 (Figure 8), the sum of “other corporate entities” and“individuals, etc.” accounts for greater than 60% of the total. Comparedwith the end of FY 2020, “individuals, etc.” has sold shares, while“overseas corporate entities, etc.” has bought shares, changing the weightof shares.

w Percent of shares held byoverseas corporate entities
has increased.
w Shares were transferred
due to inheritance andother events, but thelargest shareholder has notessentially changed.

Upon inheritance from the founder (Masao Kawashima), individually
owned shares were transferred in FY 2017 to the general incorporated
association Kawashima Co., Ltd. (the founder family’s asset managementcompany, categorized under “other corporate entities”).

【Figure 8】Change in Shareholder Composition by Type of Shareholder (unit: %)
90
80
70
60
50

45.55

40
30

29.52

20

17.29

10
0

6.28
FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Other
corporate
entities
Individuals, etc.
Overseas
corporate
entities, etc.
Financial
institu tion s, etc.

at year-end(Ref) Prepared by Alpha-Win Research Dept. based on the securities report◆ Major Shareholder Composition
w No change to stableshareholders
in Japanw。

Major shareholders as of the end of March 2021 are shown in Figure 9 on
page 16. Compared to the end of March 2020, shares held by the top ten
major shareholders have not largely changed, except for custodians (trustbanks) and the Employee Stock Ownership Plan.

w MFS, a major US-based
investment management
firm, submitted astatement of large-volume
holdings for holding morethan 5% of shares.

Massachusetts Financial Services Company (“MFS”) owned 5.22%(401,900 shares) as of March 31, 2021, and a statement of large-volume
holdings (the “5%-rule” statement) had been submitted. MFS is one of theoldest investment firms in the US. It invests globally and its AUM is 610.2
billion dollars (approx. 63 trillion yen as of the end of December 2020).
Characterized by a long-term, active investment style, it has an office inJapan and invests in many Japanese stocks as well.
Although MFS is not included in the list of major shareholders shown in
Figure 9 on page 16, it is probably investing through several accounts
including JP Morgan at second place (ranking excludes the Company andits treasury shares; the same applies hereinafter).

15/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

w Several Japanese andoverseas institutional
investors, etc., seem to beinvesting in the Company
through custodians.

Issued: 6/9/2021
MSIP CLIENT SECURITIES (third place), BYN GCM CLIENT
ACCOUNT (fifth place), JPMBL RE NOMURA INTERNATIONAL(sixth place), and Japan Trustee Services Bank (trust account) (tenth place)are also among the major shareholders. Their final investors and investment
purposes are unknown, but they are predicted to be pure investments by
Japanese and foreign institutional investors and funds.
Regarding investment trusts in Japan, the Company’s shares areincorporated in index funds managed by companies such as Nomura AssetManagement and Sumitomo Mitsui Trust Asset Management, as well as anactive fund (GS Big Data Strategy Japan Equity) managed by Goldman
Sachs Asset Management.

w The largest shareholder isthe founder family’s asset
management company.

w PCA owns 13.4% of its own
shares.
w Its rival OBC is also thefourth largest shareholder.

w There seems to be no
activists among the major
shareholders

Below is supplemental information:
・The largest shareholder Kawashima Co., Ltd. is the asset managementcompany of two directors of the Company (President Sato and Director
Kumamoto) and their relatives (descendants to the founder Masao
Kawashima).
・The Company itself has essentially been the second largest shareholder for
many years. After Kawashima Co., Ltd. had indicated its intention to sell
its shares, the Company additionally acquired shares in a tender offer. As aresult, it currently owns a total of approx. 13.4% of its own shares.
・The fourth largest shareholder Obic Business Consultants Co., Ltd. (OBC)
is a competitor with whom the Company has no transactions. There has
been no change in the number of shares held.
・The seventh largest shareholder Logic Systems Co., Ltd.’s purpose isunknown.
・The eighth largest shareholder, or the Employee Stock Ownership Plan,
had been selling shares in response to the rising stock price, decreasing thepercent of shares owned. However, with shareholding encouragement
measures, the number of shares held has been increasing again.
・The nineth largest shareholder Nagoya PCA Co., Ltd. is a company towhich the Company outsources a part of its software development(SHOKON and other products).
・Currently, there seems to be no activist-like behavior among the major
shareholders. Also, the Company has not adopted any anti-takeovermeasures.

【Figure 9】Current Major Shareholders

Unit for shares owned: thou. shares

End of Mar.
2015

Kawashima Co., Ltd.
PCA CORPORATION (treasury shares)
JP MORGAN CHASE BANK 385632
MSIP CLIENT SECURITIESObic Business Consultants Co., Ltd.
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)
JPMBL RE NOMURA INTERNATIONAL PLC 1 COLLEQUITY
Logic Systems Co., Ltd.
PCA Employee Stock Ownership Plan
Nagoya PCA Co., Ltd.
The Master Trust Bank of Japan, Ltd. (trust account)
JP MORGAN LUXEMBOURG S.A. 1300000
MSCO CUSTOMER SECURITIESCredit Suisse Securities
Japan Trustee Services Bank, Ltd. (trust account)
SSBTC CLIENT OMNIBUS ACCOUNTAPPLIED SYSTEM LABORATORY Inc.
Mizuho Bank, Ltd.
BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTSM LSCB RD
Shigefumi Wada (individual)
GOLDMAN SACHS INTERNATIONAL
State Street Bank and Trust Company 505001

KBL EPB S.A. 107704
Reiko Sato (individual): Heir to the founder Masao Kawashima
Tomoko Kumamoto (individual): Heir to the founder Masao
Hiroko Wada (individual)

For ratios: %End of Mar.
2016

End of Mar.
2017

End of Mar.
2018

End of Mar.
2019

End of Mar.
2020

End of Mar.
2021

% of Total Shares

848

848

2,935
848

2,935
849

2,736
1,049

2,735
1,045

254

254

254

254

254

295
254

114
110

114
119
100

114
127
100

114
127
100

114
135
100

114
100
100

2,736
1,034
338
295
254
154
120
114
112
100
95

41.40
13.42
5.07
4.43
3.81
2.31
1.79
1.71
1.68
1.50
1.41

121

121

86
121

86
121

181

181

181

151

244

249

266

266
90

1,467
1,467
358

1,467
1,467

Ranking

1
―
2
3
4
5
6
7
8
9
10

472
89
87
86
121

112
303
174
94

(Ref) Prepared by Alpha-Win Research Dept. based on the securities report.

16/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

4． ESG
There have been no large changes with regards to ESG. The Company has
continued to work on ESG activities as usual.

◆ Environment
Although the Company does not directly own any production facility andtherefore does not necessarily harm the environment, it makes
consideration for energy/electricity conservation.

w Proactively supporting thepersons with physicaldisabilities and thespotting and training of IT
talents

w Working on improving theworking/workplaceenvironment

w Promoting diversity interms of gender. Has set
goals to increase thepercentage of women.

◆ SocietyAs its mission statement, the Company has declared to “support customers’
businesses through enterprise system software.” The concept is that it isfulfilling its social responsibility by contributing to the improvement of userconvenience and efficiency. It plans to especially focus on supporting
small/medium-sized corporate users and helping them become digitalized(remote work, going paperless, building digital infrastructure, etc.).
Through sponsorship, the Company supports the spotting and training oftalented programmers who will shape the future as well as promoting
athletics such as the marathon. It also operates a farm in Chiba Prefecture
where it proactively hires physically disabled staff. It purchases flowers,
lunchboxes, bakeries, etc., from companies hiring physically disabled staff.
In response to the Act on Advancement of Measures to Support Raising
Next-Generation Children, it has set out a general employer plan pursuant
to the Act and has been working on “creating a system for financially
supporting workers with children in paying for services related to childrearing, adopting work-styles such as work-from-home and remote workthat is not limited by location, and placing measures for encouraging theacquisition of annual paid leaves.”
In the general employer action plan pursuant to the Act on Promotion of
Women’s Participation and Advancement in the Workplace, the Company
has set goals to “continue to hire female employees at a ratio of 40% or
greater, raise the percentage of female full-time employees from the current
25% to 30%, increase women in manager positions from 22% to 30%, andraise the paid leave acquisition rate from 76% to 80%.” The Company ispromoting the workplace retention of women and making efforts topromote greater female participation. One outside director and one outside
auditor are women.

◆ Governance
For internal control, the Company has set up an internal audit office that
directly reports to the president and is operated also in coordination withthe outside directors. It has also set up a risk control committee with thepresident as the chairperson and has created a risk control system thatallows flexible, quick, and appropriate response to risks. It does not havean executive officer system.
w Shareholders’ meeting
proposal: planning for 11
directors, of which two are
women.

In the shareholders’ meeting proposal, the Company has described its plan
to add a new director, for a total of seven directors (including three outside
directors), and have four auditors (including three outside auditors, one tax
accountant, one CPA, and one lawyer). There will be 11 directors in total,
with two being women.

17/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

5． History of Growth◆ Company History
A group of five certified public accountants with the late Masao
Kawashima as the leader founded the Company in 1980 upon recognizing
the importance and the promising future of computer and software
businesses in Japan. At first, they developed and sold business accounting
software for small business computers. In 1995, expecting users toeventually switch from small business computers, the Company began thedevelopment and marketing of packaged software for personal computers(PC) in full scale.

w Founded upon recognizing
the importance andpromising future ofcomputers and enterprisesystem software in Japanw With a pioneering spirit,
became the first to begin
cloud services in theindustry

Then, with the emergence of the PC era, the Company has achieved growth
mainly through the following four strategies: 1) creation of a greater variety
of domestic packaged software as well as their version upgrades, 2)
expansion of the maintenance service, 3) development of the cloud business,and 4) expansion of the solutions business which includes providing othercompanies’ products. Furthermore, by increasing the number of offices andcooperating with manufacturers and distributors, the Company has
developed a nationwide sales/support system that has contributed to therapid expansion of its business. It is seen as a pioneer in the conservative
industry, having been the first in the industry to begin providing cloudservices (SaaS8) in 2008.

(8) SaaS (Software as a Service):
software where, as a service, one
can use the necessary function in
the necessary amount whenneeded; or the method ofproviding such service. Insteadof the user installing thesoftware, the vendor operates thesoftware and provides thenecessary function to the user via
a network.

Regarding stock, the first public offering was made in 1994. The Company
became listed on the Second Section of the TSE in 2000 and then on theFirst Section in 2014. Upon becoming listed on the First Section of the TSE,
the Company changed its logo to the current one.

w Changed its market listingfrom the Second to theFirst Section of the TSE in
Dec. 2014◆ Past Transition in Financial Results
As described above, the Company has been expanding its business since
foundation until now as a specialist in the development and marketing ofenterprise system software and related businesses. The transition in
financial results since its first public offering is described in Figure 10. The
following is supplemental information on the financial results inchronological order:
w Has been generally
increasing sales over thelong term. Profit had
temporarily weakened, butthen recovered in a Vshape.

【Figure 10】Long-Term Transition in Financial Results
Sales (left axis)

Recurring Profit (right axis)(million yen)(million yen)

16,00014,266

14,00011,4391,783

10,0006,000 660 565

13,3082,500
12,447

12,000

8,000

3,000

2,808

1,396
1,290

1,539

1,565

1,227

1,218
794

1,084

5,441
4,827
4,867
3,5414,551
4,000
3,232
5,026
3,017

1,582
1,392
1,181

1,181
6,383
6,336

6,006
5,597
5,095
4,762

935

10,475

6,269

7,551

6,805
798
724

9,785
9,360
8,441
1277
8,168

2,000

1,899

834

1,139

6,275
6,167
5,867
501

2,340

1,500

1,000

463
500
67

384

0

2,000
-158

-500

FY

19
FY 94
19
FY 95
19
FY 96
19
FY 97
19
FY 98
19
FY 99
20
FY 00
20
FY 01
20
FY 02
20
FY 03
20
FY 04
20
FY 05
20
FY 06
20
FY 07
20
FY 08
20
FY 09
20
FY 10
20
FY 11
20
FY 12
20
FY 13
20
FY 14
20
FY 15
20
FY 16
20
FY 17
20
FY 18
20
FY 19
20
FY 20
FY 20
20 21
22
CE

0

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. Estimate/forecast(CE) for FY 2022 is from the Company’s plan (based on new revenue-recognition standard).

18/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

w Record-high net profit
achieved in FY 2000 owing
to the high demand
stimulated by the year 2000
problem.

w In FY 2006, record-highoperating/recurring profits
were posted due toregulation revisions andcontribution by ERP.
(9) ERP (integrated enterprisesystem): stands for Enterprise
Resource Planning.
Management concept based on
the integration and real-timeprocessing of core businessinformation to efficiently
optimize as a whole. Provided as
IT solutions software for
integrating enterprise systems.
w Results weakened after the
Lehman shock. In FY 2014,
record-high sales of thetime were achieved (Y10billion) due to an eventdriven high demand.
w Net loss posted
consecutively in FY 2015
and FY 2016, partially inreaction to the previous
event-driven high demand.

w Positive effects from thestructural reform havestarted to be seen in FY
2016.
w Growth of cloud, release of
new products, and cost
reduction helped.
Operating margin
improved.

Issued: 6/9/2021
・Aside from certain periods such as the post-Lehman economic downturnand the decline following the spike of high demand stimulated by revisions
in tax and other regulations, the Company has generally kept increasing
sales since 1994. On the other hand, profit growth had been slow for sometime, being unable to maintain or exceed the level of profit that it had once
achieved.
・Record-high net profit (Y937 million) was achieved in FY 2000, thanks
to the sales growth from the high demand brought by the year 2000 problem.
The consecutive decline in sales and profit from FY 2001 to FY 2002
occurred in reaction to this previous high demand as well as the economic
downturn.

・In FY 2006, record highs were achieved for operating profit and recurring
profit (Y1,747 million and Y1,783 million, respectively). These record
highs were brought by the improvement in profitability due to the demand
stimulated by the revision of the accounting regulation for public benefit
corporations and the drastic change in regulations caused by the new
Companies Act, as well as due to the Company’s ERP9 (integrated
enterprise system) product Dream 21 (former product name).
・The decline in sales for four consecutive years from FY 2007 to FY 2010,
as well as the decline in profit for seven consecutive years from FY 2007
to FY 2013, was caused by decreased demand (due to the post-Lehman
economic downturn, etc.) and increased personnel, R&D, and sales
promotion expenses, as well as worsened profitability due to intensifiedcompetition.
・In FY 2014, record-high sales (Y10,475 million) were achieved thanks to
the high demand driven by two events: the end of Windows XP support(support ended in April 2014) and the change in consumption tax (from 5%
to 8% in April 2014). The large growth of the cloud service also contributed
to the record-high sales.
・Despite efforts to cut down on cost, a net loss was consecutively posted in
FY 2015 and FY 2016 (net loss for the year: Y207 million in FY 2015 andY93 million in FY 2016) due to decreased sales in reaction to the previous
event-driven high demand as described above and the postponed revisionof consumption tax to 10%.
・For many years, the Company’s gross margin and operating margin had
been gradually decreasing (Figure 11 on page 20). This was due toincreased price competition from intensified competition among packaged
software developers during the economic downturn, worsened product mix
from a rise in the percentage of other companies’ less-profitable goods, andhigher costs especially for labor costs, production expenses (subcontractor
costs), and R&D costs.
・However, since FY 2016, the Company has been increasing sales again
and the decline in gross margin had stopped. Operating margin bottomedout and began to gradually increase thanks to increased sales of the new
products and the cloud and cost reduction. The Company also saw positive
results from the structural reform that it had been working on for several
years, including the disposal of assets with impairment risk (real estate andsecurities) and shortened software amortization.

19/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
・The Company’s growth and recovery in financial performance after thiswere supported by sales growth of the cloud and the maintenance service
and cost reduction.

w Turned to sales/profit
growth trend starting in FY
2016. Stable net profit. Vshaped recovery of results.

・From FY 2016 to FY 2020, the Company increased sales for five fiscal
years in a row thanks to the continued growth of the cloud, the release of
new products, and strengthened sales force, as well as economic recovery.
Since FY 2017, the Company has generally been stably and continuously
making and increasing profit.

w Significant sales/profit
growth in FY 2020 due tothe high demand
stimulated by the
consumption tax revisionand the end of Windows 7
support. Posted recordhigh sales and profit.

・In FY 2020 (the fiscal year before the previous), thanks to the event-driven
high demand (rise in the consumption tax rate, end of Windows 7 support,
version upgrades related to the change in the name of the era, etc., led to an
early demand of a little over a billion yen, as estimated by the Company),
sales and profit grew significantly, hitting their record highs.
・Then, in reaction to this event-driven high demand, sales dropped in
FY2021. However, sales were still higher than the previous record high thatit had achieved in FY 2019 before the event-driven high demand.

w For the past six fiscal years,
its profit results haveexceeded its initial plan.
Revisions to financial
forecasts have often beenannounced in Septemberor the next year’s February
to April.

As reference, the Company's initial forecast and actual results in the past
are compared in chronological order (Figure 12). Although the actual
results have sometimes greatly deviated from the initial forecast, since FY
2017, actual profit has tended to largely exceed the initial forecast. Notethat past announcements of revisions to financial forecasts have often
been made in September or February to April of the following year.
【Figure 11】Long-Term Transition in Gross Margin and Operating Margin
Gross Margin（％）

Operating Margin

80.0
70.0

70.1

66.4

66.8

66.1

63.2

63.0

60.0

60.3
53.5

51.0

54.5

57.0

60.3

60.1

61.8

50.0
40.0
30.0
20.0
10.0

19.5

17.8
12.7

11.1

6.9

10.6
4.7
-2.2

0.0

4.6

0.5

8.2

17.4

10.9

15.0

-10.0
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
CE

【Figure 12】Comparison of the Company’s Initial Financial Forecast and Actual Results in Chronological Order
Consolidated

Sales

Operating Profit

Recurring Profit

Net Profit Attributable to
Owners of the Parent (hereinafter "net profit")

InitialActualInitialActualInitialActualUnit: million yen
Initial forecast
Actual result
forecast
resultforecast
resultforecast
resultFY 2001
5,026
1,224
1,227
695
FY 2002
5,634
4,762
925
1,215
935
533
FY 2003
5,104
5,095
1,073
1,015
1,083
589
576
FY 2004
5,521
5,595
1,170
1,125
1,181
653
682
FY 2005
6,096
6,005
1,551
1,293
1,565
769
915
FY 2006
6,870
6,383
1,747
1,780
1,783
1,059
327
FY 2007
6,860
6,336
1,533
1,550
1,582
922
852
FY 2008
6,790
6,274
1,321
1,325
1,365
1,391
812
644
FY 2009
6,800
6,268
1,294
1,117
1,360
1,181
809
680
FY 2010
6,500
5,867
1,141
744
1,200
797
714
436
FY 2011
5,908
6,166
878
686
927
724
519
411
FY 2012
6,505
6,805
806
468
835
501
381
75
FY 2013
7,025
7,550
56
354
84
383
29
181
FY 2014
8,641
10,474
284
1,110
311
1,138
141
604
FY 2015
9,198
8,168
453
-179
483
-157
283
-207
FY 2016
8,880
8,440
242
40
272
66
131
-93
FY 2017
9,731
9,360
165
432
187
463
51
160
FY 2018
9,876
9,785
645
807
669
834
425
441
FY 2019
10,486
11,439
825
1,248
842
1,277
588
906
FY 2020
12,783
14,266
1,478
2,781
1,499
2,808
976
1,816
FY 2021
13,28013,308
2,034
2,314
2,055
2,340
1,358
1,668
FY 2022 (CE)12,447
1,866
1,899
1,192
Simple average of difference (unit: %), calculated based on the longest period with available data for sales & profits(excluding this FY) →Blue highlight:
Green highlight:
From initial forecast, upward revision : downward revision (unit: # of times)→
Previous record
Record highSales

Operating
ProfitRecurring
ProfitNet Profit

Operating Recurring
Net Profit
ProfitProfitSales

Difference from initial forecast

YoY change in actual results-15.5%
-0.2%
1.3%
-1.5%
-7.1%
-7.6%
-7.6%
-7.8%
-9.7%
4.4%
4.6%
7.5%
21.2%
-11.2%
-5.0%
-3.8%
-0.9%
9.1%
11.6%
0.2%

0.3%
-13.7%-34.8%-21.9%-41.9%
532.1%
290.8%
Revised down
-83.5%
161.8%
25.1%
51.3%
88.2%
13.8%

-23.0%
6.7%
5.0%
21.0%
0.2%
2.1%
1.9%
-13.2%-33.6%-21.9%-40.0%
356.0%
265.9%
Revised down
-75.7%
147.6%
24.7%
51.7%
87.3%
13.9%

-2.2%
4.4%
19.0%
-69.1%-7.6%-20.7%-15.9%-38.9%-20.8%-80.3%
524.1%
328.4%
Revised down
Revised down
213.7%
3.8%
54.1%
86.1%
22.8%

-0.9%

74.4%

40.9%

58.9%

8 ： 12

8：6

13 ： 7

9 ： 10

-5.3%
7.0%
9.8%
7.3%
6.3%
-0.7%
-1.0%
-0.1%
-6.4%
5.1%
10.4%
10.9%
38.7%
-22.0%
3.3%
10.9%
4.5%
16.9%
24.7%
-6.7%
5.7%
↑

-24.4%-23.8%-23.3%
16.0%
15.8%
8.1%
9.0%
9.0%
18.4%
32.6%
32.5%
34.2%
12.6%
13.9%
-64.3%-12.2%-11.3% 160.6%-13.6%-12.1%-24.4%-15.7%-15.1%
5.6%-33.4%-32.5%-35.9%
-7.8%
-9.2%
-5.7%
-31.8%-30.8%-81.8%-24.4%-23.6% 141.3%
213.6% 197.1% 233.7%
To loss
To loss
To loss
To profit To profit To profit
980.0% 601.5% -272.0%
86.8%
80.1% 175.6%
54.6%
53.1% 105.4%
122.8% 119.9% 100.4%-16.8%-16.7%
-8.1%
74.9%

52.7%

26.0%

Simple average for each period (excluding
this FY)(Ref) Figures 10 and 11 were prepared by Alpha-Win Research Dept. based on the financial results summary. The FY 2022 forecasts/estimates (CE) arefrom the Company’s plan. (Note) The new revenue-recognition standard is applied starting in FY 2022 (CE).

20/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

6． Business Environment◆ Trends of the Software Market
w Decreasing number ofsmall/medium-sizedcompanies (its current andpotential users) in Japan,
but the enterprise system
software market size is
expected to steadily growover the medium to longterm.

w Business environment had
worsened for small,medium, and mid-tiercompanies, but has started
to improve compared to
one time.

Number of Small/Medium-Sized Companies (potential users) in JapanThe number of small/medium-sized companies, or the Company’s main
potential customers, has been declining since they have been closing theirbusinesses due to the decreasing and aging population of Japan.
On the other hand, companies and organizations have been working on
rebuilding or strengthening their enterprise systems, as they have been
faced by increasingly serious needs for human resources and have beenworking on improving operational efficiency and financial performance.
Although the number of small/medium-sized companies will likely
continue to decrease, we predict that the size of the enterprise system
software market will steadily increase over the medium to long term as thedemand for software to streamline business operations increases.

Current Situation: BOJ Tankan
According to the Bank of Japan Tankan for March 2021, software
investment (planned amount) in 2021 by small/medium-sized companies(all industries) will be +1.9% YoY (breakdown: +17.9% for manufacturingand -4.4% for non-manufacturing), expecting investment by especiallymanufacturers to increase. Mid-tier companies are also showing an eager
attitude toward software investment, planning to increase it by 9.8%(+28.6% and +6.1%, respectively). For the survey on the businesssentiment of small/medium-sized companies, the “recent” sentiment
improved from the December 2020 survey’s -18 to -12, and “outlook” also
improved from -23 and -15, indicating that business sentiments are
beginning to recover (same for mid-tier companies).
Market Size and Growth Potential
According to the “WHITE PAPER Information and Communications inJapan” by the Ministry of Internal Affairs and Communications, the size ofthe packaged software market (excluding game software, embedded
software, etc.) in 2017 was approximately Y1.1 trillion and its size had been
gradually expanding. However, since the outbreak of COVID-19, there
seems to be some temporary stagnation in growth.
We estimate the current size of the enterprise system software market in
Japan specifically related to the Company’s business to be approx. Y500
billion and the size of the ERP market to be approx. Y100 billion. Annual
growth rate is predicted to be about 3% and 10%, respectively, over the
medium term.

w Market potential of cloudbased enterprise system
software in Japan is stilllarge.

In the U.S., the cloud-based enterprise system software market is said to be
several years ahead of Japan. The market penetration rate in Japan is about½ to ⅓ compared to the US (ref: “WHITE PAPER Information andCommunications in Japan” by the Ministry of Internal Affairs andCommunications, etc.). Therefore, there seems to be a large growthpotential (according to this 2017 version of the “WHITE PAPER,” thepenetration rate of the cloud in Japan is approximately 26% for “payroll /financial accounting / HR” and only 6-8% each for “production
management / logistics management / store management,” “purchasing,”and “sales on order”).

21/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
The cloud-based enterprise system software market may grow at a high rateof 20% per year over the medium to long term as it replaces a part of theoutsourced system development or packaged software (on-premises)
market.

◆ Comparison with Competitors
w In the industry, companies
are mostly able to exist
alongside one another bytaking strong positions
that are segregated by theirusers’ sizes and software
function.

Positions and Main Players of the Industry
Figure 13 is an overview of the various positions and main players of theindustry, categorized by customer zone. The players in the industry aremostly being able to exist alongside one another by taking strong positions
in different niches, segregated by the size of the companies/organizations
that are their users or by the operation targeted by their software.

【Figure 13】Target Customers and Main Players of the Enterprise System Software Market(Ref) Excerpt from past financial results briefing materials, partially edited by Alpha-Win Research Dept.

w Its key product or theaccounting software has
the third largest share in
the market.
w OBC, MJS, Yayoi, and
OHKEN are its rivals.
w The Company provides
high-quality products andservices at reasonable
prices.

The Company has different rivals for each type of operation targeted by its
software. Regarding its key accounting software, its rivals among listedcompanies are thought to be Obic Business Consultants (OBC: 4733),
directly, and Miroku Jyoho Service (MJS: 9928), indirectly.
OBC is the greatest rival since it has almost the same product lineup andbusiness model as the Company. Among private companies, Yayoi(subsidiary of ORIX), OHKEN (independent company), and OSK(subsidiary of OTSUKA CORPORATION) are its direct competitors.
The Company is characterized by its high-quality but reasonably priced
products and services.
The accounting software market size is approximately Y200 billion. The
market is reaching maturity and its size has not largely changed in recent
years. In this market, the Company is estimated to be third from the top(about 10% of the total market share). It also seems to have a similar levelof market share and position with its payroll and HR software.
In the cloud accounting market, the two companies Money Forward (TSE
Mothers 3994; providing cloud services such as household accounting
application for individuals and accounting software for companies) andfreee (TSE Mothers 4478; providing ERP services or cloud accounting

22/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
software for small businesses) are also its competitors among listedcompanies. Both target one-person businesses and small companies such as
small/medium-sized companies and SOHOs. They directly compete with
the Company in specific areas.

w In addition to OBC, also
competing with Money
Forward and freee in a partof the cloud-based
accounting software
business.

Profitability Comparison of Three Similar, Major Listed
Companies
A comparison of the long-term transition in gross margin and operating
margin of the three major listed companies (the Company, OBC, and MJS)
is shown in Figures 14 and 15. Compared to the Company, both margins
are stable for OBC and MJS, presumably due to the economies of scale (thesales of OBC and MJS are about 2.2x and 2.6x greater than the Company,
respectively, and similarly their operating profit is about 5.6x and 2.0x
greater, respectively, based on last fiscal year’s results) and the differencein the sales composition (the percentage of support service sales, etc.).
Both competitors used to have a lower contract rate for the maintenancesupport service but succeeded in raising this rate, resulting in a greater
earning power. However, the Company’s profit margins have alsostabilized and have been improving in recent years through its focus on thesubscription business. It plans to continue to aim for greater earning power.

w Large improvement inmargins and capitalefficiency

Similarly, the transition in the Company’s ROA and ROE, shown in Figure
16, indicates that its capital efficiency has also been significantly improving.
In the most recent fiscal year, the Company was in the middle among thethree companies in terms of those ratios (actual results for FY 2021, in theorder of ROA and ROE: compared to 9.7% and 11.4% for PCA, 9.2% and7.8% for OBC and 11.1% and 13.6% for MJS). As reference, overview of
the three companies is compared in Figure 17 on page 24.
【Figure 14】Long-Term Transition in the Gross Margin ofThree Major Listed Companies (PCA, OBC, and MJS)
PCA

（％）

OBC

MJS

90.0
85.0
80.0

83.4

84.2

66.4

66.8

66.1

65.9

65.0

84.4

84.0

84.7

83.7

84.3

84.8

84.4

84.0

82.5

83.8

83.7

79.0

(Ref) Figures 14-16 were prepared by Alpha-Win Research Dept. based on the
securities reports. Estimates/forecasts (E) are from the companies’ business plans.

75.0
70.0

70.1

65.0
60.0
55.0

59.5

64.4

61.8

64.0

63.0

65.2

66.3

66.3

63.6
60.3

63.2

62.3

60.3

57.0
54.5

53.5

60.1
62.1

61.8
59.6

57.8

51.0

50.0

【Figure 16】Transition in the Company’s ROA and ROE

45.0
40.0

（％）

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 E【Figure 15】Long-Term Transition in the Operating Marginof Three Major Listed Companies (PCA, OBC, and MJS)
PCA

（％）

50.0

46.7

45.6

40.9

43.4

45.0

OBC

43.2

41.7

44.4
41.4

43.2

44.2

45.3

30.0

16.3

20.0

4.3

12.7

11.1

10.3

10.9

10.8

11.3

12.9

8.2

6.2
8.0

6.9

0.0

4.6

10.6

16.5

19.5

15.6

15.0

5.2

6.3

4.8
3.5

4.0

4.0
0.7

2.6

-1.0

-2.0

10.8

-1.8
FY
2009

FY
2010

FY
2011

FY
2012

FY
2013

FY
2014

6.8

3.9

0.4

1.7

9.7

2.9

5.2

-4.0
10.8

10.9

7.8

7.2
5.8

0.0
17.4

14.7

0.5

4.7

13.0

8.8

2.0

28.0

10.0

11.4

8.0

4.0

17.8

14.3

12.0

6.0

40.0

ROE

14.0

10.0

MJS

42.7

ROA

16.0

FY
2015

1.5
-0.9
FY
2016

FY
2017

FY
2018

FY
2019

＊ROA is the ratio of recurring profit to total assets.
-2.2

-10.0
FY 2009

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021 FY 2022 E

23/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

FY
2020

FY
2021

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021【Figure 17】Summary of the Comparison of the Three Competing Companies
Company Name

PCA

Code

9629

Obic Business Consultants （OBC）

Miroku Jyoho Service （MJS）

4733

9928

Development and sales of packaged enterprisesystem for small/medium-sized companies. Became
Top market share (25%) in software for accounting
top-ranking in the industry from rapid growth in the firms. Recently, also strengthening
early days of the OS W95, NT, etc. Highly
development/sales of software for mid-tier andprofitable structure; largest player in the industry
small/medium-sized companies. Largest player by
by profit. No. 1 in packaged software for financial sales among the three companies.
accounting, payroll, HR, and labor management.

Characteristics

Development and sales of packaged enterprisesystem for mainly small/medium-sized companies.
Second-tier in the industry. Taking a lead in cloudservices. No. 1 in industry in sales toward publicbenefit corporations.

FoundedAug. 1980

Dec. 1980

Jan. 1977

Date Listed on the Market

Mar. 1994

Oct. 1999

Aug. 1992

Sales Categories/Breakdown (FY 2021)

Sales Method

Number of Bases

・ Revenue from services 31.7% (generalmaintenance)
・ Sales from system installation contract 56.7%(Software 33.4%)(Useware 12.8%)(Hardware 10.6%)
・ Other 7.5%

・ Solutions 24.3%
・ Maintenance Service 26.7%
・ Cloud Service 30.5%
・ Products 14.9%
・ Merhandise 3.6%

・ Services 65.2%
・ Products 34.8%(Solution technology 24.5%)(Related products 10.3%)

20% direct sales; 80% indirect sales throughdealers/makers

Nearly 100% direct sales; for ordinary companies,
Nearly 100% indirect sales through dealers, makers,
mostly direct sales through referrals by accounting
etc.
firms

13 offices; 2,000 sales partners

11 offices with customer service personnel; 3,000
sales partners

31 sales/support offices throughout Japan;
accounting firms acting as sales partners (referrals)

Number of Active Users (approx.)

200,000 companies

200,000 companies

8,400 accounting firms; 170,000 ordinary
companies

Maintenance Service Contract Rate over Total Numberof Active Users

Approx. 70%

Approx. 80%

Nearly 100%

Management Goals

Raised target for FY 2022, the final year of the mid-term
・
plan.
Revised goal: sales ≥ Y13.5 bil
・Consolidated O.P. ≥Y2.1 bil
・Consolidated O.P. margin ≥15%
・ ROE ≥10%, DOE ≥2.5%(goals already achieved in FY 2021 except for sales and
DOE)
・In FY 2022, planning to conduct a part of theinvestment planned for the new mid-term plan starting in
FY 2023

FY 2021, the final year of the previous mid-term plan,
Undisclosed mid-term targets. Focused on profit
ended after several downward revisions to its goals. The
indicators. Maintaining or increasing O.P. margin andnew mid-term plan VIsion2025 was created (FY 2022 - FY
R.P. margin while increasing sales to continue to grow as a2026):
highly profitable company.
In its final year, aiming for sales of Y55 bil, R.P. of Y12.5
Focusing on the cloud and subscription businesses.
bil (record-high sales and R.P.), and ROE of more thanAiming to achieve sales of Y30 bil (Bugyo i [products +20%.
maintenance] + Bugyo V ERP [products + maintenance])
Existing ERP biz: start digital marketing, raise thewith the conventional on-premises/Windows platform.
proportion of subscription-based business model, secure a
Also planning to achieve sales of Y50 bil (Y35 bil instable source of revenue, and achieve continuous growth.
Bugyo Cloud [iVERP level] + Y15 bil in Bugyo Cloud
New biz: Become No.1 in Japan with integrated DX
Edge) with the DX-generation, cloud-based/Azure
platform through which anyone can easily achieve DX toplatform.
adapt to the digital, non-face-to-face era.

Business Strategy and Priority Measures

・Establish earnings base for the main biz (strengthen &expand sales of PCA Cloud, strengthen on-premises biz,etc.)・Create new business opportunities
・Strengthen business foundation to become structurally
highly profitable
・Enhance monozukuri (creation of things)

Strengthen “core competence.” Focused on the following:・ Enterprise operation services
・ Mid-tier and small/mid-sized companies
・ Microsoft technology
・ Partnership strategy
・ Branding strategy
・Cloud business development
・Secure/train staff (HR)・Approx. 26 types(by name of product; includes options)・Originally developed with in-house platform

・12 types for the flagship Bugyo series
・Approx. 60-80 types by product name, including othersoftware・Development focused on Microsoft platform for both onpremises and cloud

Main Types of Enterprise System Software (approx.)・ "No. 1 in accounting firm network" strategy
・ "Comprehensive solution business for mid-tier andsmall/mid-sized companies" strategy
・ Integrated DX platform strategy (new biz area)
・ Shift to cloud/subscription biz model
・ Promote individual growth of subsidiaries
through group-wide coordination enhancement
・ Build HR and management foundation toaccelerate strategy execution
・1 module for accounting firms
・6 modules for ordinary companies(each module contains software for several
operation types)

12,44734,000Gross Margin (%) Result for FY 2021

60.1

83.8

62.1

Operating Profit (million yen) Est.

1,866

15,390

4,030

15.0

45.3

10.8

Sales (million yen) CE for FY 2022

Operating Margin (%) Est.

37,400Omitted sincee the new revenue-recognition standard will be applied in FY 2022 and there will be no continuity between the data

EPS (CE) FY 2022, YOY (%)
DOE (%) Result

1.5

3.2

6.0

Past 10 Years’ Sales Growth Rate (FY 2021’s result div. by
FY 2011's result: %)

215.8

170.0

181.7

O.P. Growth Rate (same condition as above)

337.3

161.2

300.5

Equity Ratio (%) Result

62.4

82.8

46.5

# of Full-Time Employees in the Group: Actual #

524

842

1,891

Sales Per Full-Time Employee (million yen / person)

23.8

40.4

19.8

O.P. Per Full-Time Employee (million yen / person)

3.6

18.3

2.1

ROE (%) Result for FY 2021

11.4

7.8

13.6

A=B×C×D
B

12.5

33.1

7.8

Total Asset Turnover Ratio (sales / ave. total asset) C

0.6

0.2

0.8

Financial Leverage (ave. total asset / ave. owner's equity)
D

1.6

1.2

2.1

E=F×G

9.7

9.2

11.1

F

17.6

47.6

13.2

Total Asset Turnover Ratio (sales / ave. total asset) G

0.6

0.2

0.8

N.P. Margin (N.P. for the year / sales : %)ROA (R.P. / total asset : %)R.P. Margin (%) Result

Italics show each company’s estimates (CE) for FY 2022. Others are actual results of FY 2021. Orange highlights indicate the highest value among the three companies.

24/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

7．Last Fiscal Year’s Results and This Fiscal

Year’s Forecast◆ Results for FY 2021 (last fiscal year)
Overview
Full-year, consolidated financial results for FY 2021 were as follows: sales
were Y13,308 million (-6.7% YoY), operating profit was Y2,314 million (16.8% YoY), recurring profit was Y2,340 million (-16.7% YoY), and net
profit attributable to owners of the parent was Y1,688 million (-8.1% YoY;
hereinafter “net profit”) (Figure 18). Both sales and profit had declined.

w Last fiscal year, in reaction
to the previous eventdriven high demand, sales
and profit dropped
significantly.

In the fiscal year before the previous (FY 2020), high demand from two
major events (early demand from the revision of the consumption tax rate
and the end of support for Windows 7) had led to the achievement of a sales
and profit growth for the fifth consecutive fiscal year, and record-high sales
and profit were achieved. However, in the previous fiscal year, sales andprofit dropped mainly in reaction to this previous event-driven high demand.

w Sales ended up being
mostly as expected. Profit
exceeded the company
forecast as well as ourforecast, mainly due toreduced expenses amidst
the COVID-19 crisis.

However, compared to the Company’s forecast, sales were mostly as
expected, exceeding the forecasted value by Y28 million (+0.2% comparedto the forecast). Operating profit also exceeded the forecast by Y280 million(+13.8%).
Compared to Alpha-Win’s forecast, which had been higher than the
Company’s, sales were Y42 million lower (-0.3% compared to our forecast),
but operating profit had exceeded our forecast by Y164 million (+7.6%).
This upward revision in profit was mainly because expenses such as travel
expenses, entertainment expenses, and sales promotion expenses(decreased venue cost due to exhibitions shifted online) had decreased dueto the COVID-19 crisis.

【Figure 18】Financial Results for FY 2021
Full-Year Results
Unit: million yen

Consolidated Sales
Gross Profit
Gross Margin (%)
SG&A Expenses
SG&A Expenses Ratio (%)
Operating Profit
Operating Margin (%)
Net Profit
Net Margin (%)

FY 2020
Results
14,266
8,599
60.3
5,817
40.8
2,781
19.5
1,816
12.7

FY 2021
Results
13,308
8,001
60.1
5,686
42.7
2,314
17.4
1,668
12.5

(Unit: million yen, %)% Change
Difference
FY 2021
Difference
FY 2021
YoY: %
YoY: million yen Company Forecast YoY: million yen Alpha-Win Forecast
-6.7
-958
13,28028
13,350
-7.0
-598
8,039
-38
-0.2
60.53
-0.4
0
-2.3
-131
5,985
-299
2.0
45.1
-2.3
0
-16.8
-467
2,034
280
2,150
-2.1
15.3
2.1
16.1
-8.1
-148
1,358
310
1,430
-0.2
10.2
2.3
10.7

Difference
YoY: million yen
-42
8,001
60.1
5,686
42.7
164
1.3
238
1.8

(Ref) Prepared by Alpha-Win Research Dept.

w Compared to the previous
period of decline after an
event-driven high demand,the impact on results werelimited thanks to the shift
to the subscription
businesses.

Comparison with Past Periods of Decline After Event-Driven High
DemandLast fiscal year, although sales and profit had declined, they were still at
the second highest level in the Company’s history after the record-highsales and profit achieved in FY 2020 due to the event-driven high demand.
In fact, they exceed the results of FY 2019 before the event-driven highdemand.
In FY 2015, the previous period of decline following an event-driven highdemand, sales decreased by 22% YoY, which caused the net profit of Y604
million to fall to a net loss of Y207 million.

25/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
In contrast to this, last fiscal year’s sales drop rate was small, and a highlevel of profit was maintained. This has clearly been due to the Company’s
large shift to the continuous and stable subscription business to strengthen
its business structure, having learned from its past lesson.

Change in the Accounting Standard
In the second quarter of the previous fiscal year, the bonus policy wasrevised and the period for which bonuses are paid was changed. This caused
operating profit and recurring profit to each be reduced by Y115 million
compared to what they were. Considering this factor, last fiscal year’s
operating profit would actually turn out to be Y2,429 million (-12.7% YoY)
and recurring profit would be Y2,455 million (-12.6% YOY), staying
within a drop of a little less than 13%.

w Last fiscal year, due to therevision in the bonus
policy, operating andrecurring profit were eachreduced by Y115 million.
The profit decline rates
would actually be a little
less than 13% YoY.

Sales
In the fiscal year before the previous (FY 2020), two major events (early
demand for version upgrades in response to the revision of the consumption
tax rate and for software replacements in response to the end of support for
Windows 7) created a high demand of several billion yen mainly in the first
half, as estimated by the Company. This demand had contributed
significantly to the results. Last fiscal year (FY 2021), sales fell by Y958
million YoY and the Company had been able to offset some of the decline
following this previous event-driven spike of demand.

w Sales dropped due to thedecline following theprevious event-driven
spike of demand.

w Sales of products weresignificantly impacted inreaction to the previous
high demand stimulatedby the consumption tax
revision.

The factors that caused sales to grow or drop compared to FY 2020 was
analyzed in terms of sales category. A total sales decline of Y1,721 million
was caused by the following: decrease in sales of products by Y1,181
million, solutions by Y474 million, and merchandise by Y66 million, withthe products accounting for about 69% of the total sales decline. The
products’ sales had been significantly impacted in reaction to the previous
high demand stimulated by the consumption tax revision, although the drop
was still within expectations (Figure 19).

w Sales growth maintained in
the subscription
businesses.

On the other hand, the total sales growth of Y764 million was caused by
the following: YoY sales growth of the cloud by Y683 million yen andmaintenance by Y81 million, with the cloud accounting for about 90% of
the total amount of sales growth. The subscription businesses’ sales growth
helped offset 44% of the total amount of sales drop. The cloud’s sales
included the sales decline of Keepdata (-49 million yen), which had beensold during the fiscal year, but with the shift of the on-premises to the cloud,
both PCA (+569 million yen) and Xronos (+162 million yen) had
experienced a sales growth.

【Figure 19】Factors that Increased/Decreased Sales by Category in FY 2021 (last fiscal year)(million yen)

15,00014,500

Increase

14,266

Implementation
support -145
Other -329

Decrease
683

14,00013,50013,30881

13,000-1,181

12,50012,000PCA

11,500

-474

-66
PCA

+569

Other

-49

Xronos +162

-811

Xronos -369

11,00010,50010,000FY 2020

Products

Merchandise

Main tenance

Cloud

Solution andOther

FY 2021(Ref) Prepared by Alpha-Win Research Dept. from the financial results summary

26/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)
w The number of corporate
users of PCA Cloud has
been increasing steadily.
More than 16,000 users
now.

Issued: 6/9/2021
Cloud
The number of corporate users of PCA Cloud reached 10,000 on 1/11/2018.
Then, the number reached 11,331 by the end of September 2018, 12,313 by
the end of March 2019 (compared to half a year ago: +982), 13,343 by theend of September 2019 (+1,030), 14,388 by the end of March 2020 (+1,045),
15,262 as of the end of September 2020 (+874), and 16,444 as of the endof March 2021 (+1,182), increasing steadily (Figure 5 shown previously on
page 11).
The semi-annual comparison indicates that the net increase in the numberof users had temporarily slowed down for some time due to the impact of
COVID-19, but during the past year, there was a net increase of 2,056
corporate users, at a net growth rate of about 171 companies per month ona simple average. This pace is about the same as the previous fiscal year
(approx. +173 companies per month). Note that about 40% of the total
number of new contracts are with new customers.

w YoY sales growth of thecloud has somewhat
slowed down but is still at
20%.

The net growth speed has not slowed down since the start of this fiscal year
too, and the Company hopes to maintain the net growth in corporate
customers at more than 2,000 companies per year for the meanwhile.
As a result, the cloud’s sales have been expanding from Y1,496 million in
FY 2017 → Y1,854 million in FY 2018 (+358 million yen or +23.9% YoY)
→ Y2,452 million yen in FY 2019 (+598 million yen or +32.3% YoY) →Y3,374 million yen in FY 2020 (+922 million yen or +37.6% YoY) →Y4,057 million in FY 2021 (last fiscal year) (+683 million yen or + 20.2%).
The cloud business also partially experienced an event-driven high demandin FY 2020 and was hit by a decline in the previous fiscal year in reaction
to that high demand. In addition, the sales growth of cloud services otherthan PCA Cloud had slowed down, and the overall scale of the cloud’s sales
has been expanding. These have led to a somewhat smaller amount of sales
growth and slower sales growth rate.

w The proportion of thesubscription businesses’
sales increased to 57% of
the total.

w Xronos also experienced asales decline for its
products in reaction to theprevious event-driven highdemand.

Subscription-Based Business
The proportion of subscription-based revenue (combined sales of themaintenance service and the cloud), which is one of the Company's key
performance indicators, increased largely to 57.2% of the total sales in theprevious fiscal year, compared to 48.0% in the fiscal year before theprevious. This was not only because the subscription-based revenue had
increased, but also because there was a large drop in the one-time-paymentbased revenue of the products and the solutions due to the decline following
the previous event-driven high demand.

XronosDespite the tailwind from the work-style reform, the subsidiary Xronos’s
work management system was also affected by the decline following theprevious event-driven spike of demand. Last fiscal year, the growth rate
seems to have temporarily slowed down. Although Xronos’s nonconsolidated results are not disclosed, it is at least known that its productsales had decreased by Y369 million and cloud sales had increased by Y162
million in a total decline of Y207 million, or about 22% of the entire PCAGroup’s net sales drop in amount (Figure 19 on page 26).
ProfitFactors that contributed to an increase or decrease in consolidated operating
profit in the previous fiscal year are shown in Figure 20 on page 28. Since

27/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
the Company’s business model has a high marginal profit ratio, the sales
decline directly led to a profit decline.

w Gross margin maintained
at about 60% but profit
declined due to the sales
drop.

Due to the improvement in the cost of sales and the significant sales growthof the cloud, which is estimated to have a high margin, the gross margin
only decreased slightly from 60.3% to 60.1%. With decreased sales andlower gross margin, gross profit ended up decreasing by 7% or Y598
million YoY to Y8,001 million.

w SG&A expenses decreased,
but the SG&A expenses
ratio increased due to thesales drop.

Although the personnel expense had increased (+95 million yen YoY) andthe maintenance expense had also increased due to higher subcontractor
costs (+174 million yen YoY), there was a decrease in other SG&A
expenses such as sales promotion and advertising expenses (-160 million
yen YoY) and R&D expenses (-65 million yen YoY). As a result, SG&A
expenses decreased by Y131 million YOY (-2.3% YoY). However, due tothe sales decline, the SG&A expenses ratio worsened by 1.9 percentage
points from 40.6% → 42.7%.
Consequently, operating profit decreased by Y467 million or 16.8% YoY
and operating margin also decreased by 2.1 percentage points from 19.5%→ 17.4%. With no significant nonoperating profit/loss or extraordinary
profit/loss posted, both recurring and net profit had decreased.

w Operating margindecreased by 2.1
percentage points.

【Figure 20】Factors that Increased/Decreased Operating Profit in FY 2021 (last FY)(million yen)

Increase
Decrease

5,000

Sales

Cost of Sales

Operating
ProfitSG&A Expenses

4,500
4,000

Cost of purchase
Cost of cloud
Cost of maintenanceRoyalties paid

3,500
3,000

w This fiscal year’s 4
strategies: market
penetration of subscription
business, sales expansionof hyper and the HR
business, and pursuingcustomer success.
(10) AWS: Stands for Amazon
Web Services; the collective
name for the cloud computing
services provided by Amazon.
(11) PCA hyper: new software for
mid-tier companies as a
successor to Dream21. Targets
the approx. 90,000 companies inJapan with sales of 1 to 10 billion
yen, less than or equal to 1,000
employees, and less than 10
subsidiaries in the corporategroup. A superior version of the
DX series. Its unique features:the user can flexibly selectbetween the on-premises and thecloud according to their stage of
growth, make flexible linkage
with other systems using API,and streamline data
management within an entire
corporate group (consolidated
accounting).

2,781

+546
- 87
-10
+12

446

2,500

87

2,000

65
-174

-957

1,500

160

2,314

Decreaseain other
SG&A
expensesa
FY 2021

-95

1,000
500
0
a
FY 2020

Decrease
a in
sales

Decreasea insoftwareamortizationaaDecreasein
Increaseinpurchase cost of maintenancesales (royalties
expensepaid, etc.)

Increaseinapersonnel
expenseDecrease
ina
R&D
expenses(Ref) Prepared by Alpha-Win Research Dept. from the financial results briefing materials.

◆ PCA’s Financial Forecast for FY 2022 (this fiscal year)
This Fiscal Year’s Strategy
The following are the four strategies for this fiscal year.
(1) Greater market penetration of the subscription business: “PCA Cloudon AWS”10 released(2) Aim once again to capture market share among mid-tier companies
with PCA hyper11(3) Build a strong work-style reform (HR) solution: Rebranding of thestress check “ALART” to the mental health program “ORIZIN”(Figure 6 on page 13)(4) Pursue customer success: Strengthen coordination with users andpartners and work on enhancement and greater market penetration of
the subscription businesses (full-scale launch of PCA Subscription)
Regarding (1), the current PCA Cloud is available only for a limited timeof the day, from 5:00 to 24:00, but PCA Cloud on AWS is available 24
hours a day, 365 days a year. This is more suitable for remote work and28/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

w 取引先である中小企業のデジタル化を支援。

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
would improve user experience. By also setting a price that is about 20%
cheaper than the original, the Company hopes to expand its sales.
Regarding (2), hyper is the successor software to Deam21, through which
the Company plans to aim once again to capture market share among midtier companies. However, since the market is a red ocean, the situation withsales should be closely watched.
Regarding (3), it is expected that the entire PCA Group, including Xronos,
will work on customer acquisition, sales strategies such as cross-selling,
and improving service strength. For the actual specific strategies of theentire HR business, though, we will need to wait for the Company’s
announcement.
Regarding (4), a new division for it was established in April 2021. To
support the growth of its customers’ businesses, the Company plans tostrengthen its contact with users and collaborate more with its partnercompanies.

w This fiscal year, there will
be a “gap down” due theapplication of the newrevenue-recognition
standard, and a sales/profit
drop is forecasted.

Summary of the Full-Year Forecast
The Company has announced its full-year financial forecast for FY 2022
(this fiscal year) that takes into account the application of the new revenuerecognition standard12. It is expecting sales of Y12,447 million, operating
profit ofY1,866 million, recurring profit of Y1,899 million, and net profitof Y1,192 million. Simply looking at these figures, on the surface, theCompany seems to be expecting a sales and profit drop compared to theprevious fiscal year (Figure 21).

(12) New revenue-recognition
standard: “Accounting Standard
for Revenue Recognition” (ASBJ
Statement No. 29) released by the
Accounting Standards Board ofJapan (ASBJ) that incorporates
the concepts of IFRS-15. Large
companies are required to apply
this standard starting in April
2021.

Since the new revenue-recognition standard will be applied starting thisfiscal year, a “gap down” will occur, and there will be no continuity in sales
and profit figures from the previous fiscal years based on the old standard.
According to the Company, the forecasted sales for this fiscal year basedon the conventional standard are Y14,153 million (+6.3% YoY), which is
close to the record-high sales achieved during the event-driven highdemand. Similarly, under the conventional standard, operating profit isexpected to be Y2,012 million (-12.7% YoY), recurring profit is expected
to be Y2,046 million (-12.6% YoY), and net profit is expected to be Y1,294
million (-22.4% YoY).

w According to the previous
standard, the Company is
expecting a sales growthand profit drop. Both sales
and profits become smaller
under the new standard
compared to the oldstandard.

In addition, to achieve the final profit target, the Company may either
promote or suppress expenditure depending on changes in the internal andexternal conditions. Since this makes predictions difficult, the Company
has not announced its consolidated financial forecast for the first half.

w H1 forecast not disclosed【Figure 21】Financial Forecast for This Fiscal Year (the Company’s plan)
Consolidated (unit: million yen)

FY 2021
Results (previous revenuerecognition standard)

Sales
Gross Profit
Gross Margin

SG&A Expenses
SG&A Expenses Ratio

Operating Profit
O.P. Margin

Recurring Profit
R.P. Margin
Net Profit Attributable to Owners of the Parent

N.P. Margin
Annual Dividend Per Share (yen)13,308
8,001
60.1%
5,686
42.7%
2,314
17.4%
2,340
17.6%
1,668
12.5%
34

FY 2022
New revenue-recognition standard
Company
Simple diff.
Simple diff. (%)
forecast(amount)
12,447
-861
-6.5%
7,690
-311
-3.9%
61.8%
1.7%
5,824
138
2.4%
46.8%
4.1%
1,866
-448
-19.4%
15.0%
-2.4%
1,899
-441
-18.8%
15.3%
-2.3%
1,192
-476
-28.5%
9.6%
-3.0%
34

FY 2022
Previous revenue-recognition standard
Company
Diff. (amount)Diff. (%)
forecast
14,153
845
6.3%

2,021
14.3%
2,046
14.5%
1,294
9.1%
34

-293
-3.1%
-294
-3.1%
-374
-3.4%

-12.7%-12.6%-22.4%FY 2022
Diff. in company forecast:
New - Previous-1,706

-155
0.7%
-147
0.8%
-102
0.4%

(Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) is applied starting from the company forecast for FY 2022.
For both the old and the new standard, the (simple) differences in amount and by percentage for the FY 2022 company forecast are thecomparison with the FY 2021 results.
(Ref) Prepared by Alpha-Win Research Dept. from the financial results summary

29/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
Summary of the Full-Year Forecast (sales by category)
Figure 22 shows the predicted full-year sales breakdown by sales category.

w According to the previous
standard, a large sales
growth is expected for thesolutions. On the other
hand, maintenance sales
are expected to largely drop
due to the end of support
for the X series.

Based on the previous revenue-recognition standard, the Company is
expecting an overall increase in sales of Y845 million YoY (net amount).
The increase in sales of solutions is especially large (+765 million yen
YoY). This is because the Company expects the sales of other companies’
products to grow once the decline in reaction to the previous event-driven
high demand settles down and the situation returns to normal. For the cloud,sales are expected to grow by Y453 million (+11.2% YoY).
On the other hand, sales of products are expected to decrease due to theshift to the cloud (-39 million yen YoY), maintenance and operation sales
are expected to drop significantly due to the end of support for the X series(-293 million yen YoY), and sales of merchandise are expected to decrease
from companies going paperless (-42 million yen YoY).
When the new standard is applied, the sales of the cloud and merchandiseare exactly the same as those based on the old standard. However, the salesof the other three categories decrease compared to the old standard. Salesof solutions, in which other companies’ merchandises are purchased andsold, are especially impacted, since the amount after deducting thepurchasing cost is recorded as sales. The difference in maintenance sales iscaused by the stricter apportionment of revenue over a period under the newstandard. As a result, after the application of the new standard, theproportion of subscription-based revenue (cloud + maintenance) over total
sales is expected to rise further to 61.2%.

w The change in the revenuerecognition standard does
not affect the sales of cloudand merchandise at all. The
proportion of subscriptionbased revenue over total
sales is expected to increase
to a little greater than 60%.

【Figure 22】Change in Sales and This Fiscal Year’s Forecasted Sales Breakdown by Category (Unit: million yen, %)16,00014,000Cloud

Maintenance

Solutions

Merchandise

Products

14,266

11,439
9,360

2,069
955
1,740

4,000
3,098

9,785

2,516

1,954

563

988

2,781

1,878
3,109

0

1,854

552
3,701

1,947
1,985

443

485
3,227

3,992

12,447

1,914

93.5％
96.0％

443

91.0％

2,466

77.6％

3,552

3,259

3,112

87.2％

4,510

4,510

110.6％

3,124

2,452

% of Total

38.8%

3,471

2,000
1,496

3,166

YoY Change

3,374

4,057

SubscriptionBased-Revenue

6,000

standard

One-TimePaymentBased
Revenue

8,000

New

14,153 revenue
13,30812,00010,000Previous
revenuestandard

61.2%

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022
(CE)
(CE)

(Ref) Modified and prepared by Alpha-Win Research Dept based on the financial results briefing and financial results summary. (CE) is theCompany’s forecast.
(Note) The accounting standard for the posting of sales as merchandise or solutions had been partially changed in FY 2020, and adjustments wereretroactively made for FY 2019 according to the new standard. However, for the two categories, there is no continuity with the years before FY
2019. Also, starting in FY 2022, the new revenue-recognition standard will be applied, and the Company has announced its sales forecast basedon both the previous and the new standard. “% of total” is for the forecast for FY 2022 based on the new revenue standard.

w The change in the revenuerecognition standard will
create a gap in the figures,and there will be no
continuity between the
figures for sales and profit.

Summary of the Full-Year Forecast (profit)
The factors that are expected to increase or decrease consolidated operating
profit during this fiscal year (YoY) are described in Figure 23 on page 31.
Since the difference between the old and new standards would create a gap

30/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
in the comparison, there are probably some adjustments included(difference in the amount of sales recorded, transfer between accounts, etc.).
Anyhow, the Company is predicting operating profit to decrease due to asales drop, as well as due to an increase in maintenance expense and otherexpenses such as the personnel expense. Costs are expected to increase thisfiscal year since the Company will resume the investments necessary for
future growth and the execution of expenses, which had been suppressed
due to the COVID-19 crisis. SG&A expenses are expected to increase by
Y138 million (+2.4%) YoY to Y5,824 million, and the SG&A expenses
ratio is expected to rise from 42.7% in the previous fiscal year to 46.8% in
the current fiscal year.

w Based on the new standard,
this fiscal year, theCompany expects profit to
decline due to a sales drop,
as well as due to resumed
investment and the returnto the normal level of
expenses.

On the other hand, the decrease in the purchase cost of sales and the R&D
expenses will increase profit but will not be enough to offset the decline.
Consequently, a net decline in profit of -448 million yen is expected.
The gross margin is expected to rise from 60.1% in the previous fiscal year
to 61.8% in the current fiscal year, but there is no continuity between the
figures since they are ratios before and after the application of the newrevenue-recognition standard. The same applies to the operating margin andother subsequent margins.
No significant non-operating profit/loss or extraordinary profit/loss are
expected to be posted.
【Figure 23】Factors that Are Expected to Increase/Decrease Operating Profit in
FY 2022 (This fiscal year) (The Company’s plan)
Increase(million yen)

4,000

Sales

Decrease

OperatingprofitSG&A expenses

Cost of sales

3,500
3,000
2,500

985

2,314

292

2,000

-449
15

1,500

1,866
-138

-291

-861

1,000
500

0

FY A2021
ResultA
Decreasein salesA in
Decrease
softwareamortization
expenseA
Decreasein cost ofpurchase(royalties
paid, etc.)

A
IncreaseinmaintenanceexpenseA
Increaseinpersonnel
expenseA
Decreasein R&D
expenseA
Increase
in
other
SG&A
expensesFY A2022
Plan(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing materials. Results for FY 2021
are based on the previous revenue-recognition standard. The new standard is applied to the plan for FY 2022.

◆ Alpha-Win Research Dept.’s Financial Forecast for FY
2022 (This fiscal year)
Summary
We had previously predicted sales of Y14,000 million for the current fiscal
year (in the report issued on February 5, 2021), which is close to theCompany’s recently announced forecast of Y14,153 million based on theprevious revenue standard. However, we have revised our forecast for thecurrent fiscal year to reflect the new revenue-recognition standard, theprevious fiscal year’s results, and the current situation (see Figure 27 on
page 35 for details).

31/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)
w We reviewed our forecast of
results based on the newrevenue-recognition
standard, and slightly
revised sales up comparedto the Company’s forecast.
w We made a somewhat
cautious forecast for therecovery in solutions’ sales.
w Since the estimates forcloud’s sales seem
conservative, we believe
the results will exceed theCompany’s forecast.

w End of support for the X
series will have a large
negative impact on profit,
but this impact seems tohave been overestimated.

w We revised profit downfrom our previous forecast,reflecting the new revenuerecognition standard, but
we predict that profit will
still be greater than the
Company’s plan.

Issued: 6/9/2021

Sales
We predict this fiscal year’s sales to be Y12,500 million (based on the newstandard), which is slightly higher than the Company's forecast. The
difference from the Company's forecast is mainly due to how we view thesales of the solutions, the cloud, and maintenance. For instance, theCompany expects sales of solutions to increase by Y765 million (+23.7%
YoY) based on the old standard in a rebound from the previous year, but
we revised this company forecast downward by 166 million yen andpredicted its sales to be Y2,300 million.
Also, although the Company expects sales of the cloud to increase by Y453
million YoY (+11.2% YoY), considering the continued growth of PCA
Cloud and X’sion (cloud version of the work management software), thetrend up through the previous fiscal year (20-30% increase in sales per
fiscal year), and the current solid situation, this forecast seems conservative.
Therefore, we predicted that the cloud’s sales will increase by 14.3% YoY
to Y4,650 million (+140 million yen compared to the Company’s forecast).
If there had been no change in the revenue standard, this fiscal year, theCompany’s forecast would actually have been a sales growth of Y845
million, and a profit growth should have been expected. However, because
it has been 10 years since the PCA X series was released, its support willend after the end of December 2021, and the Company assumes that themaintenance support revenue associated with this will become close to zero.
This would cause profit to decline, since the profit margin of maintenancesales is high. On the other hand, the Company is not expecting significant
growth from the transition of the X series to the cloud or to its successor
product in a version upgrade, so the Company’s forecast seems be asomewhat cautious one. Consequently, in addition to the cloud, we
predicted that the sales of the products and maintenance will also slightly
exceed the Company's forecasts.

ProfitProfit will also be impacted by the shift to the new revenue-recognition
standard, so we revised down our forecast (in the order of previous forecast→ current forecast) from Y2,280 million → Y2,000 million for operating
profit and Y1,520 million → Y1,210 million for net profit. We are
expecting a decline in the profits. However, as mentioned above, we believethat the sales of the Company’s plan seem somewhat conservative. Also,
we believe that the product mix is likely to improve more than the Company
expects and that even greater cost control is possible, especially for the
SG&A expenses. Therefore, our profit forecasts are Y34 million and Y18
million higher than the Company’s plan, respectively.
Risk Factors
In the medium-term financial forecast including this fiscal year, the main
risk factors are the prolongation of the COVID-19 crisis (outbreaks ofmutants types, etc.) leading to the stagnation of economic activities, as wellas weaker financial performance of corporate users that will cause them torefrain from purchasing products and services or postpone theirimplementation. Regarding the existing services, the Company was able toadequately overcome the difficult situation during the previous fiscal year,
and they will most likely not present large issues during this fiscal year too.
However, in providing the new services such as PCA Subscription, thehealth-care-related services, and hyper, as well as in customer acquisition,
sales expansion, and the development of PCA HUB, the Company may not
be able to make progress as it plans.
32/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

8． Growth Strategy◆ Management Indicators and Areas of Focus
w As its management
indicators, it has set goals
for sales, DOE, and thenumber of cloud users.

In 2012, the PCA Group had announced goals of Y20 billion in sales (asreference, the actual result in FY 2021 was Y13.3 billion), 2.5% in DOE(FY 2021: 1.5%), and 80,000 corporate users for the cloud (a little over
16,000 companies as of the end of March 2021) as its management
indicators, and has been developing its business in line with this plan.

w Has set out five areas offocus, planning to further
strengthen the cloud,provide solution-services,and work on M&As.

To achieve these goals, it has set out five areas of focus: 1) grow evengreater as the No. 1 player in the cloud-based enterprise system software
market, 2) enhance the solutions business to provide more than simple
functionality, 3) enhance PCA Cloud with greater leading-edge
technologies, 4) pursue the shift to services, and 5) actively conduct M&As.

◆ New Medium-to-Long-Term Vision “PCA Vision
2030: First Stage – 2022 Medium-Term Management
Plan”
Since the Company will reach a milestone in the year 2030 as its 50th
anniversary, in November 2018 it announced the “PCA Vision 2030: First
Stage – 2022 Medium-Term Management Plan” (Figure 24).
w In the current mediumterm plan, it is aiming tobecome a solutionproviding service provider
and is focused on creatinga firmer earnings base andmanagement foundation.

w Executing new measuresmostly in line withschedule, under the basic
strategies of the mediumterm plan.

The Company’s basic policy over the medium term set forth in the MediumTerm Management Plan (FY 2020 – FY 2022) is to “transform our businessstructure and build the foundation for continuing and developing businesses
that are both long-term and stable.” Aiming to become a solution-providing
service providor, the Company has been focusing on creating a firm
earnings base and management foundation.
The basic strategies and current situation of the new medium-term visionand the current medium-term plan are described below (Figure 24, andFigure 25 on page 34). It has prepared an executaion roadmap for eachmeasure and has been controlling its schedule based on it. The Company
has been making progress with its priority measures mostly along schedule,
including the strengthening of the PCA Cloud through the release of theonAWS version, launch and sales expansion of the hyper series, launch of
PCA Subscription, development of new areas such as HR through theacquisition of Dreamhop, preparation for implementation of new KPIs andmanagement system, and strengthening of the R&D system.

【Figure 24】The New Medium- to Long-Term Vision “PCA Vision 2030”

Medium-Term
Basic
PolicyLong-term
By providing a greater variety of one-stop
services for corporate management and operation,
we will become a true “Management Support
Company” that is focused on the “managementsupport business” for our corporate customers.

Transform our business structure and build thefoundation for continuing and developing
businesses that are both long-term and stable

50th Anniversary
2030

Medium-term
Optimize our company’s structure for creating new
businesses, products, and services ahead ofchanges in the society.
Current
Lay the foundation for recovering/improving profitability.
Enhance our original products, the cloud, and themaintenance service, and put them onto growth track.
Target period of the current
medium-term management plan

2018

2019

2020

2022

2023

2029
2028

2025

2026

2027

2024

2021

⇒ In the current medium-term management plan, we will focus on strengthening our revenue baseand management foundation toward achieving the Medium- to Long-Term Vision.

(Note) The years in Figure 24 are based on the Japanese expression of fiscal years and are one year smaller than the fiscal year in the English expression. For
example, “2021” stands for “FY 2022” ending in March 2022.
w 当調査部では、中期の年間利(Ref) Figures
24 and 25 are based on the financial results briefing materials, partially edited by Alpha-Win Research Dept. with supplementary information.

益成長率を 5~8％予想。

33/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021【Figure 25】Basic Strategies and Priority Measures of the Medium-Term Plan and Their Execution Status
I. Establish a strong revenue base for the core businesses
1. Strengthen PCA Cloud and expand its sales

PCA Cloud offers an extensive lineup and an operational expertise of more than 10 years of service. By
focusing on areas such as improving brand power, acquiring Web-API partners, and enhancing service
functions, we will establish a firm market position and a strong revenue base as one of our core businesses.

2. Strengthen the on-premises business

Release of the onAWS version (May 2021); expand sales

To strengthen the on-premises business (sales/maintenance of the on-premises products), we will review
our products, service systems, etc., based on our users’ needs. Greater market penetration of PCA Subscription(released in July 2020)

II. Create new business opportunities
To create a new revenue base for the future, we will create a team for discovering the seeds of new
products and businesses in areas related to new technologies such as AI, big data, RPA, and Fintech. We
will thereby accelerate the progress with our initiatives for the new business opportunities.

Developing new areas of business→ Acquisition of Dreamhop (HR business expansion)

III. Strengthen the management foundation to build a high-profit structure
To continue to further improve our earning power, we will work on improving and strengthening ourmanagement foundation, including our management plan and profit management system, while reflecting
the changes in the business environment.
Shift to a new HR system and operational IT infrastructure

IV. Strengthen monozukuri (creation of ‘things’)
We will build a corporate structure that will boost our potential to create PCA brand products and services
with originality, innovativeness, user-friendliness, and other features that “only PCA can provide.” We willtransform and strengthen our foundation for “monozukuri.”Integrated planning, development, and verification

In FY 2020, the first year of the current medium-term management plan,
the initial medium-term management goals (before revision) were achieved.
Consequently, the Company revised upward the goals for FY 2022, thefinal year of the plan (Figure 26). However, the revised goals were also
mostly achieved in the previous fiscal year (FY 2021).

w Numerical goals for FY
2022, the final year of thecurrent medium-term
plan, had been revised
largely upward but were
mostly achieved in FY
2021.

This fiscal year, the Company plans to conduct a part of the investment that
had been planned for the new medium-term management plan that starts
next fiscal year. As a result, based on values under the previous revenuerecognition standard which have continuity between the years, while therevised goals for consolidated sales and the subscription business’s sales
will be achieved, the consolidated operating profit and margin are expected
to become slightly lower than their goals.

w This FY, a part of the
upfront investment
planned for the next
medium-term plan
starting next FY will be
conducted.

【Figure 26】Targets of the Medium-Term Management Plan and Their Actual or Forecasted Progress
Target Items of the Medium-Term PlanFY 2020 Result

FY 2021 Result

Previous revenue-recognition standard→

FY 2022 Company PlanFY 2022
Revised Medium-Term Goals

FY 2022← Initial Medium-Term Goals

New revenuerecognition standard←Previous revenuerecognition standard

Previous revenue-recognition
standard

Previous revenue-recognition
standard

Diff. in Medium-Term Goals(Revised - Initial)
Previous revenue-recognition
standard

Y14.266 billion ◎Y13.308 billion △Y12.447 billion

Y14.153 billion ◎Y13.5 billion or more

← Y11.5 billion or more

Y2 billion

Y6.845 billion △Y7.609 billion ◎Y7.626 billion

Y7.769 billion ◎Achieve Y7.5 billion← Achieve Y6 billion

Y1.5 billion

・Consolidated Operating Profit

Y2.781 billion ◎Y2.314 billion ◎Y1.866 billion

Y2.012 billion △Y2.1 billion or more

← Y1.5 billion or more

Y600 million

・Consolidated Operating Margin19.49% ◎17.39% △14.99%

14.21% △15% or more

← 10% or more

5%・ Consolidated Sales
Of which are sales from subscription-based
businesses (maintenance & cloud)(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing materials. Goals are those announced by the Company. ◎indicates that the revised goal of the medium-term management plan has been achieved or is expected to be achieved. △ indicates that the unrevised(initial) goal of the medium-term management plan has been achieved, but the revised goal was not achieved or is expected to not be achieved.

w 当調査部では、中期の年間利益成長率を 5~8％予想。

34/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021◆ Alpha-Win Research Dept.’s Forecast of MediumTerm Financial Results
We revised our medium-term financial forecast for the three fiscal years
including this fiscal year (Figure 27). Considering the application of the
new accounting standard and this fiscal year’s situation, we revised down
our forecast for this fiscal year and the next, and also added new forecasts
for FY 2024.

w Our forecast is based on
the prediction that
economic activities will
normalize in FY 2023.

Next Fiscal Year (FY 2023)
Since COVID-19 vaccines are starting to be distributed across Japan in fullscale, we predicted that people’s lives, economic activities, and IT
investments by small/medium-sized companies will gradually normalize
from the next fiscal year onwards.

w We also revised downward
our forecast for next FY,
reflecting the new revenuerecognition standard.

Although there will no longer be a “gap down” due to the new revenuerecognition standard, we made some adjustments of values to reflect thedifferences caused by the application of the new standard. We also
reconsidered our estimates for sales by category (especially for the products,
cloud, and other) and the costs.

w However, with continued
growth of the cloud, etc.,
we expect the Company toreturn to sales/profit
growth.

Compared to our previous forecast, we revised our forecast for the next
fiscal year from Y14,650 million → Y13,000 million for sales and Y2,600→ Y2,070 million yen for operating profit. However, although we madea downward revision, these sales and profit still indicate a growth comparedto our new forecasts for FY 2022 (+4% for sales and a little less than +9%
for profit), since we are expecting sales and profit to begin increasing again
in the next fiscal year. Also, we predicted that dividend per share will
increase by 2 yen compared to the current fiscal year’s forecast, to a totalof 36 yen.
We have not changed our view that the large growth potential of the cloud
and the work management software will enable them to continue to be thegrowth drivers, absorbing costs related to upfront investment as well as
sales promotion and personnel expense, and consquently contribute tomargin improvement and the growth of sales and profits.

【Figure 27】Medium-Term Financial Forecast
Unit: million yen, %Sales
Category

Products
Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue

Gross Margin
SG&A Expense(% over sales)

Operating Profit(% over sales)

Recurring Profit(% over sales)

Net Profit for the Year(% over sales)

FY 2020 AR
14,266
3,166
552
3,471
3,374
3,701
60.3%
5,817
40.8%
2,781
19.5%
2,808
19.7%
1,816
12.7%

FY 2021 AR
13,308
1,985
485
3,570
4,057
3,227
60.1%
5,686
42.7%
2,314
17.4%
2,340
17.6%
1,668
12.5%

FY 2022 CE
12,447
1,914
443
3,112
4,510
2,466
61.8%
5,824
46.8%
1,866
15.0%
1,899
15.3%
1,192
9.6%

FY 2022 E
12,500
1,950
450
3,150
4,650
2,300
61.6%
5,800
46.4%
1,900
15.2%
1,930
15.4%
1,210
9.7%

FY 2023 E
13,000
2,000
380
3,050
5,300
2,270
61.5%
5,920
45.5%
2,070
15.9%
2,100
16.2%
1,315
10.1%

FY 2024 E
13,600
2,070
330
2,900
5,950
2,350
61.4%
6,080
44.7%
2,270
16.7%
2,300
16.9%
1,440
10.6%

FY 2022 PE
14,000
2,550
400
3,300
4,850
2,900
59.9%
6,100
43.6%
2,280
16.3%
2,300
16.4%
1,520
10.9%

FY 2023 PE
14,650
2,650
350
3,200
5,500
2,950
59.9%
6,180
42.2%
2,600
17.7%
2,620
17.9%
1,700
11.6%

Sales (% YOY growth for all values)

24.7%
-6.7%
4.0%
4.6%
5.2%
4.6%
25.8%
-37.3%
2.6%
3.5%
28.5%
3.9%
Merchandise-2.0%-12.1%-8.7%-7.2%-15.6%-13.2%-17.5%-12.5%
Maintenance Service
11.1%
2.9%
-3.2%
-4.9%
-7.6%
-3.0%
Cloud Service
37.6%
20.2%
11.2%
14.6%
14.0%
12.3%
19.5%
13.4%
Other Operating Revenue
33.1%-12.8%-1.3%
3.5%-10.1%
1.7%
Gross Margin (% YOY diff.)
3.3%
-0.2%
-0.1%
-0.1%
-0.4%
0.1%
SG&A Expense (% growth)
10.3%
-2.3%
2.1%
2.7%
7.3%
1.3%
Operating Profit (% growth)
122.8%-16.8%
8.9%
9.7%
2.0%
14.0%
Recurring Profit (% growth)
119.9%-16.7%
8.8%
9.5%
-1.5%
13.9%
Net Profit for the Year (% growth)
100.4%
-8.1%
8.7%
9.5%
-6.3%
11.8%
(Note) "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) has been applied starting in FY 2022, so there is no YoY change available for FY 2022.
Also, the previous estimates and the results are based on the old revenue-recognition standard.
Category

Products(Ref) Forecasted and prepared by Alpha-Win Research Dept. (E = new forecast; PE = previous forecast). CE = the Company’s estimate/forecast. AR = actual results.

35/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

w Expecting consecutive
sales and profit growth in
FY 2024 too

The Fiscal Year after the Next (FY 2024)
We have newly added the forecast for the year after the next or FY 2024.
We expect sales to increase by 4.6% YoY to Y13,600 million, operating
profit to be Y2,270 million, and net profit to be 1,440 million, at a growthrate of 9.5% for both profits.

w Cloud and work
management software are
expected to continue to be
the growth drivers. On-site
support is expected to be
fully resumed.

We believe that as economic activities get back on track, the Company willenter a phase in which its subscription businesses will continuously andstably expand. In addition, as the COVID-19 crisis settles down, theCompany is expected to be able to provide full on-site support for its
customers. Therefore, if the new businesses currently under progress canalso be put on track, we believe that a growth trend can be maintained forsales and profits.

w Over the medium term, in
addition to the growth rateof the existing cloudbusiness, results will beaffected by whether the
new products/services will
succeed.

In addition to the growth rate of the cloud, the Company’s financial
performance will most likely be affected by whether it will succeed in its
business expansion with PCA Subscription, hyper, and the HR businesswith Dreamhop that it is working on developing in full scale.

w Operating margin is
expected to improve.

Estimates Used for Expenses and Profit
In forecasting FY 2023 and FY 2024, we estimated that the gross margin
will gradually decrease (-0.1 percentage point per year) due to the increasein costs such as development costs and subcontractor costs. Meanwhile, we
predicted that the operating margin will improve by about 0.7 percentage
point per year due to the decrease in the SG&A expenses ratio. Therefore,
with sales growth, we predicted that profit will increase.
In moving to the next medium-term management plan in FY 2023, theCompany will increase its upfront investments, including businessfoundation reinforcement in preparation for future growth, new productdevelopment, and technology research necessary for that development(virtualization technology, AI, Web API, and FinTech-linked technology).
However, we predict that the SG&A expenses are controllable to someextent, especially regarding the sales promotion, R&D, and personnel
expenses.
Merchandise sales will continue to decline as more companies go paperless,and sales of maintenance services will also continue to drop due to the shift
to the cloud. However, the improvement of product mix as the cloud’s sales
and their proportion of total sales increase, the shift of various businesses
to the subscription-based business model, and the progress withrationalization of business may lead to improved profitability.

w With the subscriptionbased businesses as thegrowth driver, annual
profit growth rate is
expected to be about 8-10%
over the medium term.

Profit Growth Rate over the Medium/Long Term
Over the medium to long term, based on normalized figures excluding theeffect of the event-driven high demand, we are expecting an annual sales
growth rate of around 6-8% and an even greater net profit growth rate (810% per year). Since the cloud business (subscription business), which is
the Company’s core business as well as its growth driver, has a highmarginal profit ratio, sales growth will directly contribute to profit growth,such that the profit growth rate will likely exceed the sales growth rate.

36/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021

9． Analyst’s View
◆ PCA’s Strengths and Challenges
The Company’s SWOT analysis results are listed in Figure 28.
【Figure 28】SWOT Analysis

Strength

Weakness

Opportunity

Threat・ Brand recognition and trust earned over many years (major specialized player in the enterprise system software market for small/medium-sizedcompanies)
・Firm financial standing (debtless management) and stable cash flow
・Growth of the subscription business based on continuous payment for service; capable of continuously generating stable revenue
・ Strong and diversified customer base (240,000 corporate users in total)
・Taking a lead with the cloud (top-level results, expertise, number of users, and years in service for enterprise system software business targetingsmall/medium-sized companies)
・High barrier to market entry
・Very experienced call center staff and engineers (non-price competition through services)
・Rich product lineup; provides products both as on-premises and by cloud (non-price competition through products)
・ Sales network (13 sales offices in Japan; 2,000 partnered companies)
・Relatively somewhat low profit margins
・Financial results susceptible to revisions related to accounting and tax laws, end of OS support, etc. (consumption tax, change in the name of theera, Windows 7, etc.)
・Maintenance service subscription rate is improving but could still be improved
・Absence of a major, next-generation, growth-driving product/service
・Domestic-demand oriented; overseas expansion difficult
・Increased demand from lack of human resources and for streamlining operation (for business software in general); work-style reform (workmanagement system)
・Potential to increase users of cloud service; development potential (toward small/medium-sized companies and mid-tier companies)
・New products (hyper), new services (transition of on-premises to subscription-based model), and innovations in technology
・ Development of HR businesses
・Revisions related to accounting and tax laws, etc.
・Emergence of an alternative as advanced AI technology becomes widely used, delayed product development, defects in products, etc.
・High competition (maturation of on-premises market; other companies catching up with the Company in the cloud business)
・COVID-19 outbreak/prolongation
・Contract termination risk, etc.
・Information leakage
・Rise in personnel and development costs(Ref) Prepared by Alpha-Win Research Dept.

w Trust and track record built
over long years, customer
base, and expertise intechnology are its
strengths.
w Also has a highcompetitive edge and toplevel achievements withthe cloud business that it istaking a lead. The cloudmarket has a high growthpotential.
w Development of the next
new products/services isthe challenge.
w Business volatility
increases before and after
events.

w Aiming for non-pricecompetition, but the situationof competition with its
competitors will be key

Describing the strengths listed in Figure 28 in more detail, the Company iswell known due to its long years of practice in the industry and the trust thatit has earned over those years. It is especially strong in certain areas ofbusiness (such as accounting software for small/medium-sized companies).
Its customers also have high loyalty, as there is little incentive to frequently
change enterprise system software. Additionally, the Company has beendeveloping a subscription-based business model with high continuity andstability by providing maintenance support, cloud versions, and version
upgrades to its customers. It is leading the market with the cloud, which hasa high growth potential, and its high competitive edge and top-level
achievements have become its strengths.
On the other hand, looking at the weaknesses in more detail, the Company
has been searching for the next, new large-scale products and services andfor ways to gain market share among mid-tier companies, but has not beenable to develop businesses that would enable enough economies of scale.
Also, companies that have joined the group through M&As, like MACS
System Corporation and Keepdata Ltd., could not generate the expectedsynergies and have already been sold, although Xronos is a successful
exception to this.
As for the opportunity and weakness (or threat), events such as theconsumption tax revision, work-style reform, and end of Windows support
tend to induce a high demand before and after and cause a higher volatility
in financial performance, as we have seen in the past.

37/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
In the cloud service that it is taking a lead, the Company is aiming for nonprice competition through product strength, service, and support. However,its competition with major competitors that have started the business at alater stage and with service providers that provide limited functions at lower
price ranges will be the key points.

◆ Shareholder Return and Shareholder Benefit Program
Dividend Policy
The Company’s basic policy is to continue stable payment of dividend
while improving the ratio of net profit to shareholders’ equity (ROE) undereffective business management. In returning profit to its shareholders, its
policy is to determine the level of dividend to be paid based on acomprehensive analysis of elements such as its financial results anddividend payout ratio.
Dividend History
Regarding dividend, ever since the first public offering of the Company’s
stock, ordinary dividend has not been decreased and has been graduallyraised over the long term with several years of no change in between (Figure
29).
【Figure 29】Change in Dividend and Dividend Payout Ratio
Dividend (right axis)（％）

Commemorative dividend (right axis)

Dividend payout ratio (left axis)

300.0

(Y)

60

54

281.1

250.0

50

20

41

200.0
150.0

30

132.0

100.0

30

30

30.9

47.8

FY 2009

FY 2010

31

31

31

31

31

31

31

31

50.0
0.0

40

10

116.9

47.2
FY 201146.5
FY 2012FY 2013

FY 2014

FY 2016

34

34

36

36

23.3

19.8

13.6

18.7

18.3

16.7

FY 2019

FY 2020

FY 2021

48.2

ＮＡ ＮＡ
FY 201534

31

FY 2017

FY 2018

FY 2022 (E) FY 2023 (E) FY 2024 (E)

20
10
0

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. Estimates/forecast (E) were made by Alpha-Win.

w Planning to maintainordinary dividend at
Y34/share, the amount after
the dividend hike.

w The target dividend payout
ratio is 33% and the target
DOE is 2.5%. There is adistance between the actualand target ratios, so
dividend hikes are likely tooccur over the medium tolong term.

Excluding commemorative dividend, the ordinary dividend had been kept
at Y31 per share per year since FY 2011. Then, in FY 2020, it increased
dividend by 3 yen to Y34 and also paid a commemorative dividend for its
40th foundation anniversary (Y20 per share). In FY 2021, there was nocommemorative dividend, and dividend returned to just the ordinary
dividend of Y34 per share, the amount after the dividend hike. This
Y34/share dividend is planned to be continued this fiscal year too.
The target dividend payout ratio is 33%, but the actual ratio was 19.8% in
FY 2020 and 13.6% in FY 2021, and the ratio is predicted to be 19.0% in
FY 2022 (the Company’s forecast), all below the target ratio. To achieve
the target dividend payout ratio of 33% during this fiscal year, the Company
would need to pay an annual dividend of Y59 (dividend hike by Y25). As
for dividend yield, it will be about 0.8% this fiscal year when calculated
based on a stock price of Y4,230 (based on the closing price of June 4, 2021,
and a dividend of Y34).
Dividend on equity (DOE), which is one of the Company’s KPIs (keyperformance indicators), was 1.5% in FY 2021 and was below the target of
2.5%.

38/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021
Compared to the past, stability and the level of profit have improved
significantly, but there is a large distance between the target and actual
values for dividend payout ratio and DOE. Considering their common
levels among companies, we believe that a dividend hike will be necessary.
Dividend Yield
The Company has a shareholder benefit program and gives out Quo Cards
to shareholders based on the number of shares held at the end of March of
every year. For example, shareholders with equal to or greater than 100
shares and less than 300 shares are granted Y2,000 worth of Quo Card.
Based on a stock price of Y4,230, the actual annual net yield for ashareholder owning 100 shares is about 1.3% (at maximum) including theordinary dividend of Y34 and the shareholder benefit (Figure 30).

w The actual annual net yield
including the shareholder
benefit program is about
1.3% (at maximum).

Based on the same conditions, the actual annual net yield is about 1.5% for
OBC (4733: Obic Business Consultants) (including the shareholder benefit
program) and about 2.5% for MJS (9928: Miroku Jyoho Service) (onlydividend yield since it has no shareholder benefit program).
【Figure 30】Shareholder Benefit Program and Actual Net Yield
Number of Shares Owned(greater than or equal to)
100
300
500

(less than)
300
500

Shareholder Benefit (Quo Card: Y)
2,000
3,000
4,000

Dividend: Y

Net Yield (maximum): %

34
34
34

1.28
1.04
0.99

Net yield = (dividend + benefit value) / (stock price), calculated for the minimal amount of stock owned in each range
Stock price: Y4,230 (closing price on 6/4/2021)(Ref) Prepared by Alpha-Win Research Dept.

w 目標配当性向は 33％、純資産配当率は 2.5％が目標。実績と乖離が大きく、中長期
的には増配余地がある。

Stock Split
Since its stock price has stayed in the Y4,000s and it is rich in cash, stock
splits (2-for-1 or 3-for-1) may be conducted, as well as share buybacks interms of the total payout ratio. Note that a stock split has not been conductedsince the 1.3-for-1 stock split in May 2000.

◆ Stock Price and Factors that May Affect Stock Pricew With solid performance,stock price has increased
largely and has beensignificantly
outperforming the TOPIX
for the past 5 years.

w As with its competitors, it
has been underperforming
the TOPIX over the past 12
months.

Performance
The Company’s stock price and relative stock price compared to the
TOPIX for the past approximately five years are described in the summary
section (Figure C on page 3) (stock price has risen by approx. 3.8x over the
past five years). Since around October 2018, the stock price has especiallybeen increasing, significantly outperforming the TOPIX.
On the other hand, the market has recently tended to buy large-cap,
economically sensitive stocks that are expected to increase profits by 30 to
40% this fiscal year. Consequently, over the last 12 months, the Company’s
stock as well as its two competitors’ stocks (4733 Obic Business
Consultants or OBC and 9928 Miroku Jyoho Service or MJS) has been
underperforming the TOPIX.
Since March 2018, the Company has had the highest performance among
the three competing companies (Figure 31 on page 40).

39/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 6/9/2021【Figure 31】Comparison of Stock Performance with Competitors(Note: stock price as of the end of March 2018 was set to zero upon creating the graph. Reflects prices up
through the closing price on June 4, 2021)
250%

PCA (9629)

OBC (4733)

MJS (9928)

200%

150%

100%

50%

0%

-50%

06/202105/202104/2021

03/2021

02/2021

01/2021

12/2020

11/2020

10/2020

09/2020

08/2020

07/2020

06/2020

05/2020

04/2020

03/2020

02/2020

01/2020

12/2019

11/2019

10/2019

09/2019

08/2019

07/2019

06/2019

05/2019

04/2019

03/2019

02/2019

01/2019

12/2018

11/2018

10/2018

09/2018

08/2018

07/2018

06/2018

05/2018

04/2018

03/2018-100%(Ref) Prepared by Alpha-Win Research Dept.

w No cheapness indicated bycomparison of valuation
with TOPIX.

w Valuation is about the
middle, or somewhat
cheap, compared to its
competitors.

Valuation
Based on the Company’s current level of stock price, there is no cheapness
in valuation in terms of the main valuation indicators compared to theaverage of the TSE First Section.
Compared to the TSE First Section’s forecasted average P/E of 16.4, theCompany’s P/E based on its forecasted values is 23.6. Similarly, compared
to TSE’s actual P/B of 1.3 and dividend yield (simple average) of 1.8%, theCompany’s is 1.9 and 0.8%, respectively.
Based on our forecast for profit, the Company’s P/E is 23.3 in the current
fiscal year, 21.4 in the next fiscal year, and 19.6 in the year after the next.
When its valuation is compared with the two competitors described above,
the Company’s valuation is cheap in terms of P/B and EV/EBITDA, but at
the middle in terms of P/E and P/S (Figure 32).

【Figure 32】Comparison of Valuation with Competitors
Company Name
Code
Stock Price (at 6/4 closing)Market Cap (million yen)
P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)

PCA(consolidated)

Obic Business Consultants(OBC: nonconsolidated)

Miroku Jyoho Service(MJS: consolidated)

9629

4733

9928

4,230
32,571
23.6
1.8
0.8
8.4
2.6

6,020
485,838
40.4
3.5
1.0
28.1
14.3

1,552
54,019
19.8
2.4
2.4
8.9
1.4

Market cap = shares outstanding x market stock price [at 6/4 closing]
EV/EBITDA = (market cap + interest-bearing debt - cash & deposits) / (O.P. + depreciation + intangible fixed asset amortization, etc.)
P/S = market cap / sales [the companies' estimate for FY 2022]
The companies' estimated EPS for FY 2022 used in all P/E calculations(Note) "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) applied to all companies starting in the estimates for FY 2022

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary

40/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)
w The two cloud-accounting
companies have extremely
high valuations.

Issued: 6/9/2021
Money Forward (TM: 3994) and freee (TM: 4478) described in theprevious section are also the Company’s competitors among listedcompanies in the area of cloud accounting software. However, they are notreasonable targets for valuation comparison since they have been posting
net losses and paying no dividend. Regarding P/S and P/B, the comparable
valuation indicators, these two companies’ valuations are extremely
expensive.
*Money Forward (TSE Mothers: 3994)
・Market cap of Y270 billion at stock price of Y5,620（6/4 closing price）
・FY 2021 (November-ending) company forecast: sales of Y15,250 million
and net loss of Y1,108 million (median values, since both were announced
as ranges); no dividend (P/S of 17.7 [as reference, P/S = market cap / sales];P/B of 27.9)*freee (TSE Mothers: 4478)
・Market cap of 431 billion at stock price of Y7,920（6/4 closing price）
・FY 2021 (June-ending) company forecast: sales of Y10,200 million andnet loss of Y2,212 million; no dividend (P/S of 42.3 and P/B of 30.2)

w Domestic-demand-oriented
growth stock with highgrowth potential. The key
themes are “cloud,subscription, work-stylereform, and mental
healthcare.”w Expected to return to sales
and profit growth starting
next FY with thenormalization of economic
activities.

w Considering the growthpotential over the medium
term, we believe that there
is an upside to the stock
price.

w Key points are the cloud’s
growth rate, themonetization of the new
businesses/services, returnof profit to shareholders,
and the next medium-term
plan.

Stock Forecast
The impact of COVID-19 remains, and there are still uncertainties
surrounding the economic situation. However, the Company will most
likely continue to be evaluated as a domestic-demand-oriented growthstock which has a strong subscription-based business (shifting packaged
enterprise system software to the cloud/subscription business) and canbenefit from the growth potential of this business as well as its
advantageous position in terms of the government’s promotion of thework-style reform and the expansion of the metal-health-related market.
Also, we believe the Company will be able to return to a growth trajectory
again since the cloud and work management system will be the drivers ofgrowth, in addition to the normalization of the economy and the gradualcontribution to results by the new businesses. From next fiscal year
onwards, there should no longer be a gap in the results from the change inthe revenue-recognition standard, so the Company is expected to return toa growth trend for sales and profits.
Since this fiscal year’s results are not very likely to fall below theforecasted values and a growth trend is expected in the next fiscal year
onwards, we believe that there is only a limited downside to the stock pricein terms of the fundamentals and valuation. Over the medium term, there
seems to be an upside to the stock price.
Going forward, the key points to watch are 1) performance of the cloudbusiness (PCA Cloud’s number of corporate users and sales growth rate),2) whether the transition of the on-premises to the subscription version(PCA Subscription) will succeed, 3) progress with the development of new
products, services, and businesses, their contribution to profit, and theirmarket competition (especially regarding the financial performance of theacquired Dreamhop, sales situation of hyper, and development progress of
PCA HUB), 4) contents of the new medium-term management plan to beannounced in the next fiscal year, 5) measures to return profit toshareholders such as dividend hikes, stock splits, and share buybacks, 6)
progress with the M&A strategy, 7) implementation of business/profit
management system and their effects, and 8) new tax systems and changes
in regulations.

41/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.