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

Issued: 2/5/2021

Alpha-Win Capital Inc. Research Department
http://www.awincap.com/● Flash Report on Financial Results◆ A major specialized player in enterprise system software; taking a lead in the cloudbusiness as No. 1 in the industry
・PCA CORPORATION (hereinafter referred to as the "Company") sells originally-developed, packaged businesssoftware (for accounting, sales management, purchasing and inventory management, payroll, human resources,
work management, etc.) mainly to small/medium-sized companies as on-premises or via the cloud. It also provides
related maintenance services. Its mission is to contribute to society as a “Management Support Company” that
supports other companies conduct smooth management and operation. It is taking a lead in the cloud-based businesssoftware industry as No. 1 in the industry (PCA Cloud). Going forward, it plans to make a further transition to thesubscription businesses.
・In recent years, thanks to the transition to a subscription-based business model and the event-driven high demand,
the Company’s financial performance has been solid. Last fiscal year (FY 2020; note that the Company’s fiscal year
is March-ending, e.g., FY 2021 ends in March 2021), it achieved sales growth and profit growth for the fifth
consecutive year as well as record-high profit. This fiscal year, a temporary drop in sales and profit is expected aspart of the decline following the event-driven spike of demand.

◆ Results for this fiscal year’s Q3 YTD: sales/profit dropped due to the decline following
the event-driven spike of demand, but seem to have exceeded the Company’s expectations
Results for the first nine months of FY 2021 (Q3 YTD: Apr-Dec 2020)
・In the first nine months of FY 2021 (Apr-Dec 2020; hereinafter, “Q3 YTD”), the Company achieved sales of Y9,414
million (-12.1% YoY; note that numbers have generally been rounded to the first decimal place in this Report),
operating profit of Y1,524 million (-40.2% YoY), recurring profit of Y1,554 million (-39.4% YoY), and net profitof Y1,055 million (-35.9% YoY). Due to the inevitable decline following last fiscal year’s event-driven high demand,
both sales and profit had decreased (Figure 1 on page 2).
・However, in FY 2015, which corresponds to the previous period of decline following an event-driven spike ofdemand, sales fell by more than 20% YoY and profit dropped to a net loss from the previous year’s net profit. Since
then, the Company’s business structure has improved due to its shift to subscription-based businesses, and its sales
and profits for this fiscal year seem to be maintained at high levels even compared to the past 20 years’ results.
・In Q3 YTD, sales of products decreased by half YoY, and sales of merchandise and other operating revenue also
dropped by double digits. On the other hand, sales of the subscription businesses have been solid and have not been
impacted by the decline following the event-driven spike of demand, as sales of the cloud service increased by 22.7%
YoY and sales of the maintenance service increased by 2.2% YoY.
・Regarding profit, gross margin deteriorated by 0.9 percentage points from 60.5% in the previous Q3 YTD to 59.6%
during this Q3 YTD, while the SG&A expenses ratio increased by 6.7 percentage points from 36.7% to 43.4%,
resulting in a decrease in operating margin by 7.6 percentage points from 23.8% to 16.2%. However, due to therevision of bonus policy during this fiscal year, the Company had recorded a temporary expense of Y115 million.
Taking this expense into account, the SG&A expenses would essentially come out to be 4,086 - 115 = 3,971 million
yen, which is only an increase of Y40 million (+1.0%) from Y3,931 million in the same period of the previous fiscal
year. This would make the SG & A expenses ratio drop to 42.2 %. Similarly, operating profit would essentially comeout to be 1,524 + 115 = 1,639 million yen, a decrease of 35.7% YoY, and the operating margin would be 17.4%(+1.2 percentage points compared to the margin before this adjustment).
・Progress in Q3 YTD against the Company's full-year forecast was 70.9% for sales, 74.9% for operating profit, andShort Report
1/7This 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 theuse 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 propertyof 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: 2/5/2021

77.6% for net profit, indicating steady progress. The progress in the previous Q3 YTD against the previous fiscal
year’s actual results was 75.0%, 91.6%, and 90.6%, respectively, but these rates cannot be simply compared since
the impact of the event-driven high demand had been large that year.
【Figure 1】Quarterly Results and Full-Year Plan
Q1 Results

Q1 FY 2020

Q1 FY 2021

% Change

Difference% of Total Sales Growth% of Total Sales

Unit: million yen

Apr-June 2019

Apr-June 2020

YoY: %

YoY: million yen%%

Consolidated Sales

Sales Category

3,073

2,789

-9.2

-284

-100.0100.0

Products

652

307

-52.9

-345

-121.511.0

Merchandise

102

77

-24.4

-25

-8.7

2.8

Maintenance Service

865

899

4.0

34

12.0

32.2

Cloud Service

764

957

25.2

193

68.0

34.3

Other Operating Revenue

688

546

-20.6

-142

-50.0

19.6

1,868

1,756

-6.0

-112

-

-

60.8

63.0

2.2

-

-

1,281

1,290

9

-

-

41.7

46.3

4.6

-

-

587

465

-122

-

-

19.1

16.7

-2.4

-

-

364

272

-92

-

-

11.8

9.8

-2.1

-

Gross Profit
Gross Margin (%)
SG&A Expenses

SG&A Expenses Ratio (%)
Operating Profit
Operating Margin (%)

Net Profit
Net Margin (%)

0.7

-20.7

-25.1

-

Q2 Results

Q2 FY 2020

Q2 FY 2021

% Change

Difference% of Total Sales Growth% of Total SalesFirst Half FY 2020

% Change

First Half FY 2021

Unit: million yen

July-Sept 2019

July-Sept 2020

YoY: %

YoY: million yen%%

Apr-Sept 2019

YoY: %

Apr-Sept 2020

Consolidated Sales

Sales Category

YoY: %

4,096

3,191

-22.1

-905

-100.0

100.0

7,169

45.8

5,980

-16.6

Products

1,190

420

-64.7

-770

-85.1

13.2

1,842

126.7

727

-60.5

Merchandise

117

98

-16.4

-19

-2.1

3.1

219

5.6

175

-19.9

Maintenance Service

833

878

5.4

45

5.0

27.5

1,698

9.4

1,777

4.6

Cloud Service

804

992

23.4

188

20.8

31.1

1,568

38.9

1,949

24.3

Other Operating Revenue

1,153

804

-30.3

-349

-38.6

25.2

1,841

51.6

1,350

-26.6

2,475

1,909

-22.9

-566

-

-

4,343

60.0

3,665

-15.6

60.4

59.8

-0.6

-

-

60.6

1,291

1,437

31.5

45.0

Gross Profit
Gross Margin (%)
SG&A Expenses

SG&A Expenses Ratio (%)
Operating Profit

1,184

473

28.9

14.8

Operating Margin (%)

Net Profit

813

Net Margin (%)

317

19.8
Q3 FY 2020

Q3 FY 2021

Unit: million yen

Oct-Dec 2019

Oct-Dec 2020

Consolidated Sales

11.3

-60.1

-61.0

9.9

Q3 Results

Sales Category% Change

146

-

-

2,572

13.5

-

-

35.9

-711

-

-

1,771

-14.1

-

-

24.7

-496

-

-9.9

-

-

1,177

-

61.3
4.1

2,727

6.1

45.6
625.8

938

-47.0

15.7
500.8

589

16.4

-50.0

9.8

% Change

Difference% of Total Sales Growth% of Total Sales

Q3 YTD FY 2020

% Change

Q3 YTD FY 2021

YoY: %

YoY: million yen%%

Apr-Dec 2019

YoY: %

Apr-Dec 2020

% Change
YoY: %

3,537

3,434

-2.9

-103

-100.0100.0

10,706

36.6

9,414

-12.1

Products

654

449

-31.3

-205

-199.0

13.1

2,496

87.2

1,176

-52.9

Merchandise

237

219

-7.6

-18

-17.5

6.4

456

-0.9

394

-13.6

Maintenance Service

894

873

-2.3

-21

-20.4

25.4

2,592

11.8

2,650

2.2

Cloud Service

862

1,032

19.7

170

165.0

30.1

2,430

37.8

2,981

22.7

890

861

-3.3

-29

-28.2

25.1

2,731

39.3

2,211

-19.0

2,137

1,945

-9.0

-192

-

-

6,480

48.4

5,610

2.2

4,086

388.4

1,524

Other Operating Revenue
Gross Profit
Gross Margin (%)

60.4

56.6

1,359

1,359

38.4

39.6

777

586

Operating Margin (%)

22.0

17.1

469

465

Net Margin (%)

13.3

13.5

SG&A Expenses

SG&A Expenses Ratio (%)
Operating Profit

Net Profit

-3.8

-

-

60.5

-0.0

-0

-

-

3,931

1.1

-

-

36.7

-24.6

-191

-

-

2,548

-4.9

-

-

23.8

-4

-

-

1,646

0.3

-

-

15.4

-0.9

59.6

43.4
-40.2

16.2
343.7

1,054

-35.9

11.2

Q4 Results

Q4 FY 2020

Q4 FY 2021

% Change

Difference% of Total Sales Growth% of Total Sales

Full Year FY 2020

% Change Full Year FY 2021, Company forecast % Change

Unit: million yen

Jan-Mar 2020

Jan-Mar 2021, forecast

YoY: %

YoY: million yen%%

Apr 2019 - Mar 2020

YoY: %

Consolidated Sales

Products
Sales Category

Apr 2020 - Mar 2021

YoY: %

3,560

3,866

8.6

306

100.0

100.0

14,26624.7

13,280

-6.9

670

1,363

103.4

693

226.5

35.3

3,166

25.8

2,539

-19.8
-19.4

Merchandise

96

51

-46.9

-45

-14.7

1.3

552

-1.9

445

Maintenance Service

879

738

-16.0

-141

-46.1

19.1

3,471

11.1

3,388

-2.4

Cloud Service

944

1,038

10.0

94

30.7

26.8

3,374

37.6

4,019

19.1

Other Operating Revenue
Gross Profit
Gross Margin (%)
SG&A Expenses

SG&A Expenses Ratio (%)
Operating Profit
Operating Margin (%)

Net Profit
Net Margin (%)

970

678

-30.1

-292

-95.4

17.5

3,701

33.1

2,889

-21.9

2,119

2,409

13.7

290

-

-

8,599

31.8

8,019

-6.7

59.5

62.3

2.8

-

-

60.3

1,886

1,899

53.0

49.1

233

510

6.5

13.2

170

304

4.8

7.9

0.7

118.9

78.8

13

-

-

5,817

-3.9

-

-

40.8

277

-

-

2,781

6.6

-

-

19.5

134

-

-

1,816

3.1

-

-

12.7

60.4
10.3

5,985

122.8

2,034

-26.9

15.3
100.4

1,358
10.2

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

Results for Q3 FY 2021 (Oct-Dec 2020)
・During the three-month period corresponding to this fiscal year’s Q3 (Oct-Dec 2020), sales were Y3,434 million (2.9% YoY), operating profit was Y586 million (-24.6% YoY), and net profit was Y465 million (-0.9% YoY).
Compared to Q2, the YoY rate of decline has been becoming smaller for sales as well as profit.
・Comparing this Q3’s results with last Q3’s results in terms of sales by category, excluding the cloud service, change
Short Report

2.9

45.1

2/7

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 from theuse 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 propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

-25.2

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

Issued: 2/5/2021

in sales of the remaining four categories has each still been negative due to the inevitable decline following lastyear’s event-driven high demand. However, the sales decline rate of products was halved from Q2 ⇒ Q3, having
improved from -64.7% YoY ⇒ -31.3% YoY. During the same period, the rate of decline in the sales of merchandise,sales of maintenance service, and other operating revenue changed from -16.4% ⇒ -7.6%, + 5.4% ⇒ -2.3%, and-30.3% ⇒ -3.3%, respectively, all resulting in single-digit rates. The decline following the event-driven spike ofdemand seems to be mostly starting to settle down.
・Meanwhile, the YoY growth of cloud’s sales has been gradually slowing down, as sales changed from Y957 million
in Q1 (+25.2% YoY), Y992 million in Q2 (+23.4% YoY), and Y1,032 million in Q3 (+19.7% YoY) (Figure 2). This
slowdown seems to have been caused by the expansion of business scale as well as the slight negative impact of
COVID-19 on the inflow of new cloud users in terms of new customer development.
・However, sales of cloud have still been continuously increasing QoQ as well as YoY despite the impact of past
event-driven high demand and seasonal variations. In addition, the net number of cloud users has been steadily
increasing from 12,313 in March 2019 and 14,388 in March 2020 (+2,075 or +16.9% YoY) to 15,262 in September
2020 (+874 or +6.1% from March) (the number of users as of the end of December 2020 has not been disclosed). It
should be noted that the subscription-based cloud business has strong continuity and a high marginal profit ratio, in
addition to high growth potential. Its sales are the largest among all sales categories and its sum with the sales ofmaintenance, or total subscription-based sales, accounts for more than 50% of the total. In fact, it is the driver ofsales and profit growth and has been helping strengthen the Company’s business foundation.
・Regarding this Q3’s profit, due to the increase in development costs and the decline in sales of products andmaintenance service which have high profit margins, gross margin fell by 3.8 percentage points from 60.4% in theprevious Q3 to 56.6%. During the same period, SG&A expenses ratio rose by 1.2 percentage points from 38.4% to39.6%. As a result, operating margin decreased by 4.9 percentage points from 22.0% to 17.1%. Since the gain on thesale of Keepdata Ltd.’s shares was recorded as extraordinary income, net profit stayed nearly the same YoY (see“Recent topics” on page 5: “Sale of a consolidated subsidiary”).
【Figure 2】Quarterly Change in Sales of the Cloud Business
1,200

45.0
Sales of cloud (left axis: million yen)

% of total sales (right axis: %)40.0

YoY growth rate (right axis: %)
1,000

35.0
800

30.0
25.0

600
20.0
400

15.0
10.0

200
5.0
0

0.0
Q1

Q2

Q3

FY 2017

Q4

Q1

Q2

Q3

FY 2018

Q4

Q1

Q2

Q3

FY 2019

Q4

Q1

Q2

Q3

FY 2020

Q4

Q1

Q2

Q3 Q4 EFY 2021(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary.
(Note) Values for Q4 FY 2021 are based on the Company’s forecast.

・There has been no significant change in the balance sheet as of the end of this Q3 compared to the end of theprevious fiscal year. Profit growth directly contributed to an increase in assets with high liquidity (from the end oflast fiscal year to this Q3, the amount of cash and deposits plus securities increased from Y13,952 million ⇒Y14,260 million) and net assets (Y13,620 million ⇒ Y14,828 million in the same order). The ratio of cash anddeposits over this fiscal year’s forecasted sales or Q3’s total assets is 79.3% (equivalent to 9.5 months of average
Short Report
3/7This 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 theuse 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 propertyof 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: 2/5/2021

monthly sales) or 45.2%, respectively, indicating that the Company has ample liquidity on hand. Its financial
standing is also firm, with an equity ratio of 63.1% and a current ratio of 281.6%.

◆Q4 plan and financial forecast for this fiscal year and onwards
The Company’s plan for Q4 and the full fiscal year
・The Company’s full-year financial forecast for this fiscal year is as follows: sales of Y13,280 million (-6.9% YoY),
operating profit of Y2,034 million (-26.9% YoY), net profit of Y1,358 million (-25.2% YoY), and annual ordinary
dividend kept at 34 yen per share.
・Q3 YTD results seem to have slightly exceeded the Company’s presumably conservative internal forecast (notdisclosed, but it has tended to be conservative in past years). However, since the impact of COVID-19 related to therecent emergency declaration is uncertain and the Company is considering making IT-related investments in responseto these circumstances, the Company has not changed its full-year forecast from the beginning of the fiscal year.
Alpha-Win Research Department’s forecast for this full fiscal year’s results
・This fiscal year, due to the decline following the event-driven spike of demand and the impact of COVID-19, a
temporary drop in sales and profit is inevitable. However, their negative impact is gradually becoming alleviated,
and the subscription businesses have been maintaining high growth rates, especially with the cloud service.
・When the Q3 YTD results are subtracted from the full-year Company plan, the Company’s plan for Q4 (Jan-Mar)comes out to be Y3,866 million in sales (+8.6% YoY), Y510 million in operating profit (+118.9% YoY), and Y304
million in net profit (+78.8% YoY). It seems to be expecting a YoY sales growth rate that is close to a double digit
and a significant profit growth. However, it should be noted that since the decline following the event-driven spikeof demand had already started during last fiscal year’s Q4, Q4 is a low comparison point and the YOY rate of change
should be large. The Company estimates that compared to the quarter just before, or this fiscal year’s Q3, Q4’s sales
will increase by Y432 million (+12.6% QoQ), operating profit will decrease by Y76 million (-13.0% QoQ), andoperating margin will decrease from 17.1% ⇒ 13.2% (expecting it to fall by 3.9 percentage points from Q3 ⇒Q4), but these assumptions for profit seem somewhat conservative.
・The following is the Company’s forecast for sales by category in Q4 and Alpha-Win Research Department’s analysis(comments after “⇒”):
1. The Company is planning a campaign for version upgrades from its older products, which is expected to lead toa sharp increase in the sales of products (sales during the previous Q4 was Y670 million and this Q3’s sales were
Y449 million, but are planned to be Y1,363 million during this Q4)⇒Campaign effects are anticipated, as well as a rebound from the subdued spending following the previous
event-driven high demand (pent-up demand). However, we believe that sales will be slightly below the
Company's expected levels.
2. Regarding cloud’s sales, compared to this Q3’s sales of Y1,032 million (+19.7% YoY compared to last Q3’s
Y862 million), this Q4’s sales are expected to be about the same at Y1,038 million (+10.0% YoY compared tolast Q4’s Y944 million).
⇒Cloud’s sales have been maintaining a positive trend, increasing by about Y40 million from quarter to quarter
during all quarters of this fiscal year so far. This sales growth trend is expected to continue into Q4.
3.
Regarding the other three categories, sales of merchandise are expected to decrease by 47% YoY, sales ofmaintenance are predicted to fall by 16%, and other operating revenue is estimated to decline by 30% YoY.
⇒Considering the financial performance through Q3, these assumptions seem somewhat conservative.
・We expect the results to be greater than the Company’s plan (no change from our previous forecast): sales ofY13,350 million (+70 million yen compared to the Company's forecast), operating profit of Y2,150 million (+116
million yen), and net profit of Y1,430 million (+72 million yen).
・Our forecast is based on the following factors: as described above, Q3 YTD results seem to have exceeded theCompany's plan; excluding the products, the sales assumptions for Q4 seem conservative especially for the cloud;the overall profit assumptions for Q4 also seem to be on the conservative side; and there seems to be room for cost
control.
Forecast for medium-term financial performance
・At this point, we have not changed our forecast for the medium-term financial performance starting next fiscal year.
Short Report

4/7

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 from theuse 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 propertyof 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: 2/5/2021

The Company’s financial performance going forward will be partly affected by how fast it can develop its HR
solutions and its new businesses such as PCA Subscription and the Hyper series which had made a slow start.
However, assuming that the impact of COVID-19 will become alleviated, we believe that the Company will return
to a trend of increasing sales and profit starting next fiscal year as the decline following the event-driven spike ofdemand settles down and the cloud and the attendance management system continue to contribute to results as growth
drivers. Over the medium term, we forecast that the annual EPS growth rate will be 8-10% and that the return toshareholders may be enhanced through dividend hikes, flexible buybacks of shares, stock splits, and other means in
response to solid financial performance.
・However, the spread of COVID-19 will most likely continue to be the largest risk factor to the Company’s financial
performance. If the situation becomes prolonged, the Company will likely be affected with some time lag in termsof new negotiations, sales expansion of new products, onsite operation, and efficiency.

◆ Recent topics
Sale of a consolidated subsidiary・A key topic of Q3 is the sale of Keepdata Ltd. (hereinafter “Keepdata”). In March 2019, the Company had acquired
a 66.8% stake in Keepdata, which has strengths in big data utilization and cloud-based file sharing systems, for about
Y44 million. After this acquisition, Keepdata became a consolidated subsidiary, and the Company had been working
on leveraging Keepdata’s expertise to expand and enhance peripheral services for its core business software.
However, although improvement was seen in Keepdata’s amount of net loss, profitability could not be attained,
resulting in an excess of debt (as of March 2020). Creating synergy with the Company in system linkage and sales
had turned out to be difficult, and judging that the initially hoped synergy will most likely not be achieved, theCompany sold all shares of this subsidiary to a third party on December 7, 2020 (sales price is undisclosed).
・Due to the sale of Keepdata, a gain on sales of shares of subsidiaries and associates of Y171 million was recorded
under extraordinary income. This income was offset by the Y125 million recorded under extraordinary loss due tothe transfer of receivables pertaining to Keepdata that the Company had owned.
・The Company ended up selling Keepdata less than two years after its acquisition. This decision can be seen
positively, though, since the subsidiary had been posting net losses and selling it will lead to an improvement in the
Company’s consolidated profit/loss starting this Q4.
・Meanwhile, the Company acquired Dreamhop Co., Ltd. in October 2020 (acquired 100% of its shares; see theprevious report for details). This acquisition is believed to be a part of the Company’s plan to improve its businessportfolio by strengthening the HR solutions, particularly in the areas of mental health and health management.
Response to COVID-19
・As measures against COVID-19, the Company has been continuing to work on improving its employees’ workfrom-home environment (about 70% of the entire company and nearly 100% of the system development andverification divisions work from home), postponing negotiations/seminars/events, replacing them with online fests
and web seminars, and improving the call center and support system (remote work has been available since lastyear’s autumn). While COVID-19 has impacted sales activities and onsite customer support, especially with the new
businesses, the overall impact on financial performance has been minimal due to the nature of its business.

◆ Stock Price
・The Company’s stock is evaluated as a domestic-demand-related, small-cap growth stock with subscription-based
business. Over the past two years, stock price has been especially strong, significantly outperforming the TOPIX.
However, since economically sensitive stocks and companies that have announced upward revisions to this fiscal
year’s results have recently tended to be bought more, the Company’s stock has been underperforming the TOPIX
over the past approximately six months.
・There was no particular surprise with the Q3 results, but stock price rose temporarily immediately following theannouncement of Q3 results due to the improvement in the YoY rate of decline in sales and profit from quarter toquarter and the sale of an unprofitable subsidiary.
・The Company’s valuation was compared with the average of the First Section of the TSE (forecasted P/E of 27.1,
actual P/B of 1.4, and simple-average forecasted dividend yield of 1.6%) and its competitors Obic Business
Consultants and Miroku Jyoho Service (based on the closing price on 2/5/2021). Compared with the TSE First
Section, the Company’s valuation is low regarding P/E. Compared with the two competitors, valuation is low in
Short Report

5/7This 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 theuse 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 propertyof 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: 2/5/2021

terms of the major indicators excluding dividend yield and P/S (specifically, this fiscal year’s forecasted P/E, actual
P/B, and EV/EBITDA). In addition, upward revisions to this fiscal year’s profit are possible, which may lead to a
dividend hike. Profit may also return to an increasing trend starting next fiscal year. Therefore, the Company’svaluation seems to be relatively cheap (Figure 3). We should continue to watch the Company’s progress as a stable,
medium/long-term growth stock.
【Figure 3】Comparison of Valuation with Competitors
Company Name

PCA (consolidated)

Code
Stock Price (at 2/5 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)

9629

Obic Business Consultants(OBC: non-consolidated)

Miroku Jyoho Service(MJS: consolidated)

4733

9928

4,420
34,034
21.7
2.0
0.8
10.3
2.6

6,670
538,296
54.7
4.4
0.7
32.9
17.6

2,192
76,295
26.2
3.3
1.7
11.5
2.3

Market cap = shares outstanding x market stock price【at 2/5 closing】
EPS values used in P/E calculations and dividend used in dividend yield calculations are all based on the companies' forecast for this FY (FY 2021).
BPS values used in P/B calculations reflect this FY's Q3 results.
EV/EBITDA = (market cap + interest-bearing debt - cash & deposits) / (O.P. + depreciation + intangible fixed assets amortization)*Interest-bearing debt and cash & deposits reflect this FY's Q3 results. Operating profit is based on this FY's company forecast.
*Depreciation and amortization are based on the actual values of the previous FY (FY 2020)
P/S = market cap / sales【the companies' estimate for this FY】(Ref) Prepared by Alpha-Win Research Dept. based on each company’s financial results summary! 9629 PCA
FY
2018
2019
2020
2021
2021
2022
2023
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021

Sector: Information & Communication " Figure A
Sales

YOY

O.P.

YOY

R.P.

YOY

N.P.

YOY

EPS

BPS

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

（%）

(Y )

(Y )

（Y ）

174.1
105.5
100.4
-25.2
-21.3
6.3
11.8
945.3
-25.1
402.2
-61.1
168.0
-0.6
343.7
-35.9
-68.2
78.2

64.4
133.3
272.9
204.7
214.5
228.0
255.0
54.8
41.0
122.3
47.7
70.5
70.0
247.5
158.5
25.5
45.6

1,644.4
1,789.8
2,027.4
2,258.8
2,452.8
2,673.8
1,848.5
2,059.6
1,975.6
2,108.2
2,049.2
2,202.6
2,049.2
2,202.6
2,027.4
―

31.0
31.0
54.0
34.0
34.0
34.0
36.0
―
―
―
―
―
―
―
―
―
―

CE
E
E
E
Q1
Q1
Q2
Q2
Q3
Q3
Q3 YTD
Q3 YTD
Q4
Q4 CE

9,785
11,43914,266
13,28013,35014,00014,650
3,073
2,789
4,097
3,191
3,537
3,434
10,706
9,414
3,560
3,866

4.5
16.9
24.7
-6.9
-6.4
4.9
4.6
31.0
-9.2
59.3
-22.1
21.2
-2.9
36.6
-12.1
-1.2
8.6

807
1,248
2,781
2,034
2,150
2,280
2,600
587
465
1,184
473
777
586
2,548
1,524
233
510

86.8
54.7
122.8
-26.9
-22.7
6.0
14.0
917.5
-20.7
533.3
-60.1
180.5
-24.6
388.4
-40.2
-68.0
118.9

834
1,277
2,808
2,055
2,170
2,300
2,620
598
471
1,192
488
777
595
2,566
1,554
242
501

79.9
53.0
119.9
-26.8
-22.7
6.0
13.9
754.6
-21.2
498.9
-59.0
178.5
-23.4
368.7
-39.4
-66.8
107.0

441
906
1,816
1,358
1,430
1,520
1,700
364
272
814
317
469
466
1,646
1,055
170
303

(Note) CE: the Company’s forecast/estimate. E: Alpha-Win Research Dept.’s forecast/estimate. Q1: Apr-June. Q2: July-Sept. Q3: Oct-Dec.
Q4: Jan-Mar. Q3 YTD: Apr-Dec.
! Stock Price and Valuation Indicators: 9629 PCA " Figure B
Item

2/5/2021

Item

Dividend Yield

Dividend Payout Ratio

Stock Price (Y)4,420Last FY (actual)

16.2

2.2

1.2%

19.8%

Shares Outstanding (thou.)

7,700This FY (est.)

20.6

2.0

0.8%

15.9%

Market Capitalization (million yen)

34,034

Next FY (est.)

19.4

1.8

0.8%

14.9%

Dilutive Shares (thou.)0

P/E

Equity Ratio at Q3-End

P/B

63.1% Last FY's ROE

14.3%(Note) Estimates were made by Alpha-Win Research Dept.

Short Report

6/7This 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 theuse 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 propertyof 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: 2/5/2021【Stock Chart (end-of-week prices) : 9629 PCA】

Figure C

(Y)

5.00

6,400
5,900

Price relative to TOPIX (right axis)

4,900

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

(M
M
/Y
Y
)

10
/2
0

05
/2
0

12
/1
9

07
/1
9

02
/1
9

09
/1
8

04
/1
8

11
/1
7

06
/1
7

1.00

01
/1
7

900

08
/1
6

【Performance】

4.50

Stock price (left axis)

5,400(Note) From the fourth week of August 2016 to the first week of February 2021

Period1 month
3 months
6 months
12 months

Return
-4.1%
-2.5%
-7.3%
24.5%

vs. TOPIX
-8.4%
-9.7%
-20.8%-0.7%(Note) Reflects stock price and index values
through the closing price on 2/5/2021.
Performance for the most recent 1-month
period is the comparison between theclosing price on 1/29 (the previous month)and the closing price on 2/5. The same
applies to the other periods.

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

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
matters and 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
the company 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) version of this Report, please see our website (http://www.awincap.com/). 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.
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 the writer of this Report do not have any obligation to reply to inquiries. SV2021-0205-1700

Short Report

7/7This 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 theuse 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 propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.