This is an unofficial translation. In the event of any discrepancy between the original Japanese text and this English translation, the Japanese text shall prevail.

Consolidated Summary Report under Japanese GAAP
for the third quarter of the fiscal year ending June 30, 2024
April 26, 2024
Company Name:

AVANT GROUP CORPORATION

Listing: Tokyo Stock Exchange

Code Number:
Representative:
For inquiry:

3836(Title) President, Group CEO(Title) Director, Group CFO

URL: https://www.avantgroup.com/(Name) Tetsuji Morikawa(Name) Naoyoshi Kasuga

Securities report issue date: May 14, 2024
Supplementary information for financial statements: Available
Explanatory meeting to be held: No

TEL: (03) 6388-6739

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

1. Consolidated Financial Results for the third quarter of the fiscal year ending June 30, 2024
(Percentages indicate year-on-year changes)(1) Consolidated results of operations
Net sales
Third quarter of the
fiscal year
ending June 30, 2024
ending June 30, 2023

EBITDA

Operating profit%
17,806
16,187

Comprehensive income (loss)

%

10.0
17.4

3,470
3,244

for the nine months ended March 31, 2024

Net profit per
share
Third quarter of the
fiscal year
ending June 30, 2024
ending June 30, 2023

%

7.0
13.0

3,075
2,920

2,017 million yen (5.0%)

Profit attributable toowners of the parent

Ordinary profit
%

5.3
11.4

3,091
2,910

%

6.2
13.5

for the nine months ended March 31, 2023

1,974
1,871

5.5
19.0

1,921 million yen (19.4%)

Diluted net
profit per share

yen

yen

52.90
49.72

-

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

(2) Consolidated financial position
Total Assets
As ofMarch 31, 2024
June 30, 2023
(Reference) Equity

Net Assets

Equity Ratios

Units: million yen

Units: million yen%

18,981
18,705

12,867
12,32867.8
65.9

As of March 31, 2024

12,867 million yen

As of June 30, 2023

12,328 million yen

2. Dividends on common stock
Dividends per share
1st
2nd
3rd
Fiscalquarter-end quarter-end quarter-end year-end
Fiscal year ended June 30, 2023
Fiscal year ending June 30, 2024
Fiscal year ending June 30, 2024 (Forecast)

Annual

yen

yen

yen

yen

yen

-

0.00
0.00

-

15.00

15.00

19.00

19.00

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

3. Consolidated earnings forecasts for the fiscal year ending June 30, 2024
(Percentages indicate year-on-year changes)

Net sales

Operating profit

Profit attributable toowners of the parent

Ordinary profit

Net profit
per share

Fiscal Year ending

Unit: million yen%

Unit: million yen%

Unit: million yen%

Unit: million yen%

yenJune 30, 2024

24,000

12.0

3,850

17.0

3,850

17.9

2,500

19.4

67.14

(Note)

Revisions to the most recently announced earnings forecast: None

Notes(1) Changes in significant subsidiaries during the period (changes in “Specified Subsidiaries” (Tokutei Kogaisha) resulting in change inscope of consolidation): No
Newly added to the scope of consolidation: nil Newly excluded from the scope of consolidation: nil(2) Application of accounting procedures specific to the preparation of quarterly consolidated financial statements: none
(3) Changes in accounting policies, accounting estimates and restatement:(i) Changes in accounting policies due to revision of accounting standards: Yes(ii) Changes in accounting policies due to other reasons : No(iii) Changes in accounting estimates: No(iv) Restatement: No(4) Number of issued shares (common shares)(i) Total number of shares issued
including treasury shares(ii) Number of treasury shares held(iii) Average number of shares

As of March 31, 2024

37,645,851 shares

As of June 30, 2023

37,645,851 shares

As of March 31, 2024

655,298 shares

As of June 30, 2023

2,998 shares

Nine months ended March 31, 2024

37,318,563 shares

Nine months ended March 31, 2023

37,634,014 shares

Note:* This report is exempt from the audits of CPAs or Audit firms.
* Explanation of the appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on information currently available to the Company
and on certain assumptions deemed to be reasonable. These statements do not represent any guarantee by the Company regarding future
performance. Actual results may differ materially from the forecast depending on a range of factors. Please refer to "Earnings Forecasts"
on page 8 for the assumptions for earnings forecasts and notes for using earnings forecasts.

Accompanying Materials – Table of Contents
1. Qualitative Information on Financial Results for the Current Quarter .................................................... 2(1) Management Comments on Business Operations .............................................................................. 2(2) Comments on Financial Position .......................................................................................... 6(3) Earnings Forecasts ...................................................................................... ................. 8
2. Quarterly Consolidated Financial Statements and Notes.................................................................. 9(1) Quarterly Consolidated Balance Sheets.......................................................................................... 9(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income......................... 11
Quarterly Consolidated Statements of Income ............................................................................... ..11
Quarterly Consolidated Statements of Comprehensive Income ......................................... 12(3) Quarterly Consolidated Statements of Cash Flows ..................................................................... 13(4) Notes to Quarterly Consolidated Financial Statements ..................................................................... 15(Notes on the Going Concern Assumption) .............................................................................. 15(Notes on Substantial Changes in the Amount of Shareholders' Equity) .................................. 15(Changes in Accounting Policies) ........................................................................................................ 15(Additional Information) ........................................................................................................... 15(Segment Information) ............................................................................................. 16(Revenue Recognition) ........................................................................................................... 17(Significant Subsequent Events) ........................................................................................................... 17- 1 -1. Qualitative Information on Financial Results for the Current Quarter(1) Management Comments on Business Operations
Consolidated financial results for the third quarter of the current fiscal year are as follows.
Fiscal Year ended June30, 2023
Third quarter(Millions of yen, rounded down to the nearest unit)
Fiscal Year ended June
Year-on-Year Change
30, 2024
Third quarter
Amount%Net sales

16,187

17,806

1,618

10.0

Operating profit

2,920

3,075

154

5.3

Ordinary profit

2,910

3,091

180

6.2

Profit attributable to owners of theparent

1,871

1,974

102

5.5

Consolidated net sales were 11,806 million yen (up 10.0% year-on-year) due to strong growth in the Digital
Transformation Promotion business in particular, against a backdrop of investment needed to maintain and enhancecompetitiveness through improvements to corporate management and business activities using data and digitaltechnology. This is turning into a medium- to long-term trend among Japanese companies (our customers). In addition,
the Outsourcing business also maintained high growth.
From the first quarter of this fiscal year, the Company revised the categorizations for its business segments andchanged the previous reportable segments of “Group Governance Business,” “Digital Transformation Business,” and“Outsourcing Business” to the “Consolidated Financial Disclosure Business,” the “Digital Transformation Promotion
Business,” and the “Corporate Management Solutions Business.” In light of this change, results for each reportablesegment for the first quarter of the previous fiscal year were restated in line with the new reportable segments.
The Consolidated Financial Disclosure Business supports value creation through development and maintenance ofour proprietary software “DivaSystem” for consolidated management support and consolidated accounting, as wellas the provision of outsourcing of consolidated and non-consolidated financial statements using this software. With
regards the segment’s position within the Group, we aim to establish a business model that combines both softwareand outsourcing businesses.
The Consolidated Financial Disclosure Business also includes information search services for disclosure documents
provided by Internet Disclosure, Inc, primarily to audit firms.
The Digital Transformation Promotion Business supports the promotion of digital transformation at companies anddata-driven management through consulting and system development services, including the provision of a data
platform for utilizing all kinds of data related to companies, to AI and BI solutions that can analyze, predict andenable data visualization. From major cloud vendors to multi-cloud compatible software, customers can find out
about the latest data utilization methods and generative AI specializing in data utilization, as well as train engineersand develop their own data utilization platform products. The suite of products offered is also slated for expansion.
The Management Solutions Business has a focus on group management, consolidated accounting, and businessadministration and aims to identify and maximize hidden value at companies, and offers one-stop support services
from consulting to system planning, building, installation, and maintenance. In addition to in-house development, it
is also possible to develop in combination with software from other companies. The role of this business is tomaximize the Group’s assets and continue to generate solutions that will provide management data that is useful forthe enhancement of corporate value.
Profits were boosted by a decrease in one-time expenses incurred in the previous fiscal year as a result of group
reorganization and sales growth in the Digital Transformation Promotion business, set against increased fixed
personnel expenses due to higher headcount, outsourced processing expenses as a result of the increase in orders, andinvestment-related expenses to realize future growth, Operating profit was 3,075 million yen (up 5.3% year-on-year),ordinary profit was 3,091 million yen (up 6.2% year-on-year), and net income attributable to owners of the parent
was 1,974 million yen (up 5.5% year-on-year)- 2 -The status of each reportable segment is as follows.
(i) Net sales
Fiscal Year ended June30, 2023
Third quarter
Consolidated Financial Disclosure
Business
Digital Transformation Promotion
Business
Management Solutions BusinessEliminationofinter-segment
transactions
Consolidated Net sales(Millions of yen, rounded down to the nearest unit)
Fiscal Year ended June
Change (YoY)
30, 2024
Third quarter
Amount
%

5,166

5,512

345

6.7

5,376

6,640

1,263

23.5

6,116

6,049

(66)

(1.1)

(471)

(395)

76

-

16,187

17,806

1,618

10.0

Fiscal Year ended June30, 2023
Third quarter

Fiscal Year ended June30, 2024
Third quarter

1,198

1,437

238

19.9

973

1,300

327

33.6

1,185

845

(339)

(28.7)

(436)

(507)

(70)

-

2,920

3,075

154

5.3

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

Consolidated Financial Disclosure
Business
Digital Transformation Promotion
Business
Management Solutions BusinessCorporate Expenses and Eliminationof inter-segment transactions
Consolidated operating profit

Change (YoY)
Amount%In the Consolidated Financial Disclosure business, the software business has been improving under the new structure
through a review of pricing strategies and strategically reducing intra-group contract development transactions for
product maintenance and other operational support, while the outsourcing business continued to maintain high growthand contributed to revenue growth. As a result, net sales increased to 5,512 million yen (up 6.7% year-on-year). In
terms of profitability, the outsourcing business drove growth, resulting in an increase in operating profit to 1,437
million yen (up 19.9% year-on-year).
In the Digital Transformation Promotion Business, the need to utilize data for decision-making related to
management and business promotion continues to accelerate, and the number of projects related to cloud data
platform construction is on the rise, with an increase in large-scale projects and in the scale of ongoing projects. . The
increase in the number of large-scale projects and the expansion of the scale of ongoing projects was a significant
driver of revenue growth. As a result, net sales increased 23.5% year on year to 6,640 million yen (up 23.5% yearon-year). Although personnel costs increased to secure human resources to provide services along with ongoing rises
in requisite subcontracting expenses, this was offset by the increased revenue, and operating profit was 1,300 million
yen (up 33.6% year-on-year), significantly higher than the same period of the previous year.
In the Management Solutions Business, net sales were 6,049 million yen (down 1.1% year-on-year). Although sales
in the software business increased, the qualitative shift in business areas due to organizational restructuring has not
yet been fully realized and sales of consulting services stagnated as growth did not surpass the level of large projects
won in the previous year. As a result, sales of consulting services stagnated, resulting in a decline in overall segment
sales. In addition to the decrease in revenue due to the above factors, operating profit decreased to 845 million yen(down 28.7% year-on-year) due to higher personnel expenses to secure personnel to drive future growth, and anincrease in expenses for system development and amortization associated with software investments.

- 3 -The number of employees on a consolidated basis was 1,406 at the end of the third quarter, up 17 from the end of theprevious fiscal year.

Quarterly Trends of Number of Employees of the GroupThe status of orders received and sales by segment in the third quarter of the fiscal year under review is as follows.
(i) Orders Received
Fiscal Year ended
June 30, 2023
Third quarter
OrdersOutstanding
Received
OrdersConsolidated Financial
Disclosure Business
Digital Transformation
Promotion Business
Management Solutions
Business
Elimination of inter-segment
transactions
Total(Millions of yen, rounded down to the nearest unit)
Fiscal Year ending
Change (YoY)
June 30, 2024
Third quarter
AmountOrdersOutstanding
OrdersOutstanding
Received
Orders
Received
Orders

5,294

3,544

5,398

3,835

104

291

5,472

1,154

6,466

1,531

993

376

5,179

2,060

5,609

2,674

430

613

(392)

(1,782)(324)(1,676)67

106

15,554

4,976

17,149

6,364

1,595

1,387

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

5,166

5,512

345

6.7

5,376

6,640

1,263

23.5

6,116

6,049

(66)

(1.1)

(471)

(395)

76

－

16,187

17,806

1,618

10.0

- 4 -

Quarterly trends in net sales and operating profit are as follows:
Net sales and operating profit for the last four quarters
Fiscal Year ended
June 30, 2023
Fourth quarter
Net sales(Millions of yen, rounded down to the nearest unit)
Fiscal Year ending
June 30, 2024
Second quarter
Third quarter

First quarter

5,236

5,646

6,096

6,063

Operating profit

368

681

1,209

1,185

Operating profit margin
(%)

7.0

12.1

19.8

19.5

Quarterly trends of net sales, operating profit and operating profit margins- 5 -(2) Comments on Financial Position(i) Financial position
Total assets at the end of the third quarter were 18,981 million yen (up 275 million yen from the end of the previous
fiscal year). This was mainly due to a 1,082 million yen increase in notes and accounts receivable-trade and contract
assets, a 111 million yen increase in prepaid expenses, and a 213 million yen increase in investment securities, while
cash and deposits decreased by 843 million yen and other current assets decreased by 227 million yen.
On the other hand, total liabilities amounted to 6,114 million yen (down 262 million yen from the end of the previous
fiscal year). This was mainly due to a 542 million yen decrease in contract liabilities and a 208 million yen decreasein provision for bonuses, offset by a 263 million yen increase in income taxes payable and a 246 million yen increasein accounts payable and accrued expenses.
Total net assets amounted to 12,867 million yen (up 538 million yen from the end of the previous fiscal year), mainly
due to net income attributable to parent company shareholders of 1,974 million yen, purchase of treasury stock of
918 million yen and payment of dividends from surplus of 564 million yen. As a result, the equity ratio was 67.8%(65.9% at the end of the previous fiscal year), an improvement of 1.9 percentage points from the end of the previous
fiscal year, and the Company believes it maintains a highly stable financial balance with low interest-bearing debt.
(ii) Cash Flow
Cash and cash equivalents (hereinafter referred to as "net cash") at the end of the third quarter decreased by 837
million yen from the end of the previous fiscal year to 10,043 million yen. The status of various cash flows andrelevant factors are as follows.
< Cash flows from operating activities >Net cash used in operating activities totaled 1,260 million yen. (93 million yen provided in the same period of theprevious year)
The main positive factors were profit before income taxes and minority interests of 3,091 million yen, depreciation
and amortisation of 407 million yen and refund of income taxes of 565 million yen, The main negative factors werean increase in trade receivables and contract assets of 1,082 million yen, a decrease in contract liabilities of 542
million yen, a decrease in provision for bonuses of 208 million yen and a payment of corporate income tax of 1,206
million yen.
< Cash flows from investing activities >Funds used in investing activities totaled 605 million yen. (vs. 674 million yen used in the same period of theprevious year)
Major expenditures included 155 million yen for the purchase of property, plant and equipment, 271 million yen forthe purchase of intangible assets, and 144 million yen for the purchase of investment securities.
< Cash flows from financing activities >Net cash used in financing activities totaled 1,498 million yen. (502 million yen used in the same period of theprevious year)
The main component of cash outflow was 564 million yen in cash dividends paid and 918 million yen for purchaseof treasury stock.

- 6 -In the Group, cash flow from operating activities in the first quarter is at a low level due to the payment of income
taxes and the payment of performance-based bonuses to officers and employees, gradually increasing from the second
quarter onward, and is typically positive for the full fiscal year.
Maintenance fees in the Management Solutions Business and commissions paid in the Consolidated Financial
Disclosures Business are prepaid a year in advance of the provision of services, so as a result, the original businessmodel has almost no need for working capital. On the other hand, in the Digital Transformation Promotion Business,
as outsourcing costs and other expenses are paid in advance, working capital demand will increase as sales grow.
However, by concentrating the excess funds of the Group as a whole in the holding company, the Group is able tosmoothly extend funds across the Group. In addition to the total cash held, the Group has established a commitmentline totaling 3.5 billion yen with banks with which it does business. Accordingly, at present there are no concerns
about funding, and rather, we intend to use the excess funds for strategic investment in the future.
Quarterly trends of Operating cash flow (Millions of yen)

- 7 -(3) Earnings Forecasts
In August 2023, the Company announced a five-year plan (including targets to be achieved in five years), which
ends in the fiscal year ending June 2028, as its new Medium-Term Management Plan, with the fiscal year ending
June 2024 as the first year of the plan. Ahead of the start of the new Medium-Term Management Plan, we havedefined the materiality of the Avant Group as “to become a software company that helps enhance corporate value.”
As a concrete measure to clarify what we aim to become during the period of the new Medium-Term Management
Plan and realize this materiality, we reorganized the group on October 1, 2022 and have been developing businessactivities as the new Avant Group since that time. Through such initiatives, we have clarified the direction of each
operating company. At the same time, by positioning each operating company in growth markets, we have created astructure that will enable us to achieve sustainable sales growth. However, we do not believe that we will reap thefull benefits of the Group's reorganization in the early stages of the new Medium-Term Management Plan. Rather,
we expect the effects will gradually emerge over the five-year period. In addition, while the restructuring associatedwith the Group’s reorganization has been completed, it is our policy to continuously and flexibly make growthinvestment that is required for realization of this materiality.
Unstable factors such as inflation caused by soaring raw material prices and concerns over economic slowdown due
to financial tightening pose a risk of affecting the Group’s performance, which, on the contrary, is considered to leadto more companies seeking to strengthen data-driven management and group governance, and therefore we believethat demand for the Group’s business will continue to increase over the medium to long term.
As a result, the Company expects to achieve net sales of 24,000 million yen and operating profit of 3,850 million
yen in the current fiscal year.
In accordance with our existing dividend policy, we will raise the ratio of dividends to net assets, always being
conscious of exceeding the average of all listed companies, while at the same time striving to maintain stabledividends (in principle, dividends per share should not fall below the level of the previous fiscal year). There will be
no change to the policy itself, and we forecast a dividend of 19 yen per share for the current fiscal year, in the hopeof achieving the target of a ratio of dividends to net assets of 8% that we have set to achieve within the period of the
new Medium-Term Management Plan.

Trends of dividends (adjusted for stock splits)- 8 -2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets( Thousands of yen)
As of June 30, 2023

As ofMarch 31, 2024

AssetsCurrent assets
Cash and deposits
Notes, accounts receivable – trade, and contract
assetsMarketable securities

10,317,243

9,473,837

2,963,130

4,045,327

500,000

500,000

Work in progress
Raw materials and supplies

13,620112,676

4,454
93,738Prepaid expenses
Other824,824
623,801

936,419396,542

Allowance for doubtful accounts(3,622)(4,068)15,351,673

15,446,251

487,466

463,882

SoftwareOther

728,306
225

741,154
43,934

Total intangible assets

728,532

785,088

Investment securities
Long-term prepaid expenses

772,046
66,028985,581
23,616

Leasehold and guarantee deposits
Deferred tax assets

575,243590,209602,878
535,119

Other

134,393

138,853

2,137,920

2,286,048

3,353,919

3,535,018

18,705,593

18,981,270

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

Investments and other assets

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

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable – trade
Lease obligations

634,758
12,257642,166
8,904

Accounts payable – other, and accrued expenses
Income taxes payable

512,708
354,192

759,363
617,399

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

2,796,086
1,038,329

2,253,433
829,920

172,380

94,754

61,594

15,330539,81281,625576,563

6,122,119

5,879,462

6,039－
234,649

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

210,900
38,016

Total non-current liabilities
Total liabilities－

254,956

234,649

6,377,076

6,114,111

Net assets
Shareholders' equity
Share capital

345,113345,113

Capital surplus
Retained earnings

281,913
11,477,458

281,913
12,890,904

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities(608)(918,987)

12,103,876

12,598,942

183,925

219,816

Deferred gains or losses on hedges
Foreign currency translation adjustments

302
40,411

345
48,054

Total accumulated other comprehensive income

224,639

268,216

12,328,516

12,867,159

18,705,593

18,981,270

Total net assets
Total liabilities and net assets- 10 -

(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third quarter of the Current Fiscal YearNet sales
Cost of sales

Thousands of yen
Third quarter of the previous Third quarter of the current fiscal
fiscal year
year
(From July 1, 2022
(From July 1, 2023
to March 31, 2023)
to March 31, 2024)
16,187,646
17,806,215
8,855,221
9,976,941

Gross profit

7,332,424

7,829,274

Selling, general and administrative expenses

4,411,618

4,753,717

Operating profit

2,920,805

3,075,557

96

108

4,048

6,273
17,781Non-operating income
Interest income
Dividend income
Gain on investments in investment partnerships
Subsidy income
Other

－
531
3,824

Total non-operating income

8,500

38,769

386

206

2,581
4,233

10,752
5,632

Foreign exchange loss
Stock issuance expenses

28
228

6,154

Compensation for damages
Other

10,831289－－

Non-operating expenses
Interest expense
Loss on investments in investment partnerships
Commission expenses

Total non-operating expenses

9,404
5,201

－

18,581

22,745

Ordinary profit

2,910,725

3,091,580

Profit before income taxes

2,910,725

3,091,580

Income taxes – current
Income taxes – deferred

934,910
104,490

1,115,712
1,614

Total income taxes

1,039,401

1,117,327

Profit1,871,324

1,974,253－－

1,871,324

1,974,253

Profit attributable to noncontrolling interests
Profit attributable to owners of the parent- 11 -

Quarterly Consolidated Statements of Comprehensive Income
Third quarter of the Current Fiscal Year
Third Quarter of the Current
Fiscal Year
(From July 1, 2021
to March 31, 2022)
1,871,324(Thousands of yen)
Third quarter of the Previous
Fiscal Year
(From July 1, 2022
to March 31, 2023)
1,974,253

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

51,160(25)

35,89143

Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income(2,501)

7,642

1,773

－

ProfitOther comprehensive income

50,407

43,577

Comprehensive income

1,921,731

2,017,830

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to noncontrollinginterests

1,921,731

2,017,830－－- 12 -

(3) Quarterly Consolidated Statements of Cash Flows
Third Quarter of the Previous
Fiscal Year
(From July 1, 2022
to March 31, 2023)(Thousands of yen)
Third Quarter of the Current
Fiscal Year
(From July 1, 2023
to March 31, 2024)

Cash flows from operating activities
2,910,725

3,091,580

Depreciation

317,753

407,397

Share-based payment expenses

14,982

13,071

Profit before income taxes

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for share awards
Interest and dividend income
Interest expenses
Commission expenses

Stock issuance expenses

471

445

(399,711)(208,408)(47,580)(77,626)

21,612(46,263)－(4,145)

81,625(6,381)

386

206

4,233

5,632

228

Loss (gain) on investments in investment partnerships

2,581

－
(7,028)

Subsidy income
Decrease (increase) in notes and accounts receivable-tradeand contract assets
Decrease (increase) in inventories(531)(9,404)(553,789)(1,082,125)(41,225)

28,104

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Increase (decrease) in accrued consumption taxes(18,248)

7,407(53,305)

277,464(66,038)

17,452

Increase (decrease) in contract liabilities(398,502)(542,652)

Increase (decrease) in deposits received(78,710)

17,380

Other, net(154,905)(81,756)

Subtotal

1,456,283

1,886,119Interest and dividends received

4,336

6,381

Interest paid

(386)

(206)

Subsidies received

531

9,404

Income taxes paid

(1,554,377)(1,206,874)－

565,680(93,613)1,260,505

Income taxes refunded
Net cash provided by (used in) operating activities- 13 -

Third Quarter of the Previous
Fiscal Year
(From July 1, 2022
to March 31, 2023)(Thousands of yen)
Third Quarter of the Current
Fiscal Year
(From July 1, 2023
to March 31, 2024)

Cash flows from investing activities
Proceeds from redemption of securities

90,019Purchase of property, plant and equipment(184,462)(12,269)

Payments for asset retirement obligations－(155,317)

Purchase of investment securities(466,570)(126,846)－(271,855)(144,720)

Payments of leasehold and guarantee deposits(120,775)(27,634)

139,792－(4,459)11,532(4,459)(1,051)(674,041)(605,039)

Repayments of finance lease liabilities(9,419)(9,391)

Commission fee paid

(4,131)(5,605)(918,379)

Purchase of intangible assets

Proceeds from refund of leasehold and guarantee
deposits
Payments made to the insurance reserve fund

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

Repurchase of own shares－(489,092)

Purchase of treasury shares(564,642)

(228)

－

Net cash provided by (used in) financing activities(502,872)(1,498,019)

Effect of exchange rate change on cash and cash equivalents(1,457)

4,601

Dividends paid

Net increase (decrease) in cash and cash equivalents(1,271,985)(837,951)

Cash and cash equivalents at beginning of period

10,002,870

10,881,311

Cash and cash equivalents at end of period

8,730,885

10,043,360- 14 -

(4) Notes to Quarterly Consolidated Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
Not applicable.
(Additional Information)<Transaction for the Delivery of Company Shares to Employees through a Trust >The Company has introduced a benefit trust as a welfare benefit for employees and as an incentive for theenhancement of the Company’s corporate value.
1. Overview of transaction
Under this scheme, pursuant to the Stock Delivery Regulations established by the Company in advance,
employees who satisfy certain requirements are granted points, and shares of the Company are delivered tothose employees to whom points have been granted and who satisfy the requirements for beneficiaries set forthin the Stock Delivery Regulations according to the number of points those beneficiaries have been granted. The
shares to be granted, including those granted in future, will be acquired using money in a trust established inadvance by the Company, and the trust’s assets will be administered separately.
2. Company shares remaining in the trust
The Company shares remaining in the trust are recorded as treasury shares under net assets at their book value
in the trust (excluding associated costs). In this third quarter, there were 652,300 such treasury shares with abook value of 918,379 thousand yen.

- 15 -

(Segment Information)
Previous third quarter (From July 1, 2022 to March 31, 2023)
1. Information on net sales and profits or losses by reported segment(Thousands of yen)

Net sales
Sales to customers
Intersegment sales
Total
Segment profit

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion Business

4,728,622
437,924
5,166,547
1,198,950

5,373,443
3,130
5,376,573
973,021

Management
Solutions Business
6,085,580
30,5806,116,160
1,185,520

Total

16,187,646
471,634
16,659,281
3,357,492

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

3,357,492
625,710(1,068,845)
6,448
2,920,805(Note) Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

Current third quarter (From July 1, 2023 to March 31, 2024)
1. Information on net sales and profits or losses by reported segment(Thousands of yen)

Net sales
Sales to customers
Intersegment sales
Total
Segment profit

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion Business

7,785,553
39,111
7,824,664
1,517,624

6,171,090
3,130
6,174,221
1,241,035

Management
Solutions Business
2,231,002
542,349
2,773,351
629,058

Total

16,187,646
584,590
16,772,236
3,387,718

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

3,387,718
625,710(1,099,072)
6,448
2,920,805(Note) Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

3. Matters concerning changes to the reportable segments, etc.
From the first quarter of this fiscal year, the Company has revised the categorizations of its business segments andchanged from the previous reportable segments of “Group Governance Business,” “Digital Transformation
Business,” and “Outsourcing Business” to “Consolidated Financial Disclosure Business,” “Digital Transformation
Promotion Business,” and “Management Solutions Business.” Segment information for the nine months ended
March 31, 2024 has been prepared according to the categorization method after the change.

- 16 -

(Revenue Recognition)
Breakdown of net sales from contracts with customers
Previous third quarter (From July 1, 2022 to March 31, 2023)(Thousands of yen)Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Net sales to external customers

Consolidated
Financial
Disclosure Business

Reportable segments
DigitalTransformation
Promotion Business

401,820

61,449131,376594,646

6,379,308

5,185,825

1,626,883

13,192,018

6,781,129

5,247,275

1,758,259

13,786,664

Management
Solutions Business

Total

Current third quarter (From July 1, 2023 to March 31, 2024)(Thousands of yen)
Consolidated
Financial
Disclosure Business
Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Net sales to external customers

Reportable segments
DigitalTransformation
Promotion
Business

Management
Solutions Business

Total

183,513286,764

115,960

586,238

7,602,039

5,884,326

2,115,041

15,601,407

7,785,553

6,171,090

2,231,002

16,187,646(Significant subsequent events)(Acquisition of own shares)
At a meeting of the Board of Directors held on April 26, 2024, the Company resolved on the following matterspertaining to the acquisition of own shares in accordance with Article 156 of the Companies Act as applied pursuant
to Article 165, Paragraph 3 of the said Act.
1.Reason for acquisition of own shares
As part of our shareholder return policy, we are acquiring our own shares to increase the value per share.
2. Details of matters relating to the acquisition(1) Class of shares to be acquired(2) Total number of shares that may be acquired(3) Total amount for shares to be acquired(4) Acquisition period

Common stock
1.2 million shares (maximum)
1 billion yen (maximum)
May 1, 2024 - November 30, 2024

(Establishment of Joint Venture Company (Consolidated Subsidiary))
We hereby announce that our Board of Directors has resolved at a meeting held today to establish a joint venturecompany with Cygnet Infotech Private Limited. The joint venture will become a consolidated subsidiary of theCompany.
1.Background of the Joint Venture
In order to obtain software development capabilities on a global level, we have outsourced the development of
our software products to Cygnet Infotech Private Limited(https://www.cygnet.one), a globally operating company
based in India. Their aim is to ‘Empower lives globally with technology-enabled & data-driven solution.’ Whiledeveloping the Group's software products through our collaboration with the Cygnet, we discovered the growthpotential of the Indian software market and the sales potential of our group's software products in India, and as a
- 17 -

result of discussions between the two companies, we decided to establish a joint venture company through joint
investment.
2.Joint Venture Business and Objectives
Through this joint venture, we will strengthen our position in the Indian market by conducting research andbusiness development for our group's software sales in the Indian market.
3.Outline of Joint Venture Company
(1)
(2)
(3)

Name
Location
Title and name ofrepresentative(4)

Business

(5)
(6)
(7)
(8)
(9)

Capital Stock
Date of Establishment
Accounting Period
Net Assets
Total Assets(10)

Investment Ratio

DivaCygnet Private Limited (Tentative Name)
Bandra Kurla Complex, Mumbai, Maharashtra
CEO: Surendra Sharma
Research and business development of the Group's software sales in the
Indian market
60 million Indian rupees
July 1, 2024 (scheduled date)March
60 million Indian rupees
60 million Indian rupees
Avant Group Corporation: 80%.
Cygnet Infotech Private Limited: 20%.

4.Outline of Joint Venture Partner
(1)
(2)
(3)
(4)
(5)
(6)
(7)

(8)

Name
Location

Cygnet Infotech Private Limited
16-Swastik Society, near Amco Bank, Stadium Circle, Opposite Diamond
Plaza, Navrangpura, Ahmedabad - 380009, Gujarat, India
Title and name of Managing Director, Founder & CEO: Niraj Hutheesing
representative
Business
Contracted development of software and development and sales of in-house
softwareCapital Stock
52 million Indian rupees
Date of Establishment August 2000
Major Shareholders Niraj Hutheesing: 87.77%.
andShareholding
Ratio
Capital ties
Not applicable.
Listed companies andPersonal relations
Not applicable.
Relationship with theBusiness relations
The Company outsources software productCompany
development to this company.

5.Upcoming dates
(1)
(2)
(3)
(4)

Date of resolution by the Board of Directors
Date of conclusion of joint venture agreement
Establishment of joint venture
Business start date

April 26, 2024
May 31, 2024 (Estimated Scheduled date)July 1, 2024 (Estimated Scheduled date)July 1, 2024 (Estimated Scheduled date)- 18 -

6.Future Outlook
The Company currently believes that the impact of this matter on its consolidated business results for the fiscal
year ending June 30, 2024, is negligible, but will promptly announce any matters that should be disclosed in the
future.
.

- 19 -