Newly Listed Company Introduction Report (Issued by The Stock Research Center)

Integroup (192A TSE Growth)June 21, 2024

Providing M&A intermediary services to small and medium-sized companies on a fullcontingency fee-based system
This report is an English translation of part of the report issued on June 21, 2024.
For inquiries concerning the report, please contract info@stock-r.org【192A Integroup Sector：Services】
Fiscal Year
May 2022
May 2023
May 2024f

Net sales

YoY

OperatingprofitYoY

Ordinaryprofit

YoY

ProfitYoYEPSBPSDPS(mn yen)(%)(mn yen)(%)(mn yen)(%)(mn yen)

(%)

(yen)

(yen)

(yen)

--0.1

259.7

0.0-

85.3

345.0

0.0

3.8x 326.4

-0.0

649

-22.5

13-

11-95.5

0

1,273

96.2

238

17.8x

238

20.6x

170

2,167

70.2

962

4.0x

960

4.0x

652

Note: Non-consolidated basis.Figures for the fiscal year ending May 2024 is the company's forecasts.

Providing M&A Intermediary Services to Small and Medium-sizedCompanies on a Full Contingency Fee-based System
Integroup provides M&A intermediary services to small and medium-sized companies ona full contingency fee basis. The company has set the minimum contingency fee at a low
level of 15 million yen. Among small and medium-sized companies, Integroup’s strengthlies in handling those with net sales of 1 billion yen or less and small-scale projects withcontingency fees of 50 million yen or less.
M&A intermediaries are specialized firms that contract with both sellers and buyers toserve as negotiators and coordinators from a neutral perspective to facilitate successful
M&As. They are used mainly by small and medium-sized companies. The company
provides services primarily as an M&A intermediary, but depending on the deal, it may also
act as a financial advisor.
Integroup's M&A intermediary service operates on a system where a single consultant
provides comprehensive support from the initial consultation through to the closing. As theone-stop support structure allows consultants, who are familiar with the entire M&A
process, to consult with clients. This engenders trust and enables the provision of highquality services tailored to each client's needs.

Adopted Competitive Fee Structure for Small-scale ProjectsThe company employs a full contingency fee-based system and receives neither a retainer
nor interim or monthly fees. This lowers the hurdle for requests and consultations, allowing
customers to use the service with peace of mind. Meanwhile, because the company
operates on a full contingency fee-based system, time is required from project start to therecording of net sales. This can result in significant sales fluctuations each fiscal year.
While most listed M&A intermediary firms charge minimum contingency fees (excludingtax) of 20–25 million yen, the company has set its fee at 15 million yen. The company isalso competitive in its pricing for the smaller-scale projects it targets.

Newly Listed Company Introduction Report

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accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
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Newly Listed Company Introduction Report (Issued by The Stock Research Center)

Integroup (192A TSE Growth)June 21, 2024

Financial StatementsStatement of income

Fiscal Year

May 2022(mn yen)Nine months
to Feb.2024

May 2023(%)(mn yen)(%)(mn yen)(%)

Net sales

649

100.0

1,273

100.0

1,405

100.0

Cost of sales

300

46.3

644

50.6

453

32.3

Gross profit

348

53.7

629

49.4

951

67.7

Selling, general and administrative expenses

334

51.6

390

30.7

296

21.1

Operating profit

132.1

238

18.7

654

46.6

Non-operating income

0-0-0-

Non-operating expenses

2-----

Ordinary profit

111.8

238

18.8

655

46.6

Profit before income taxes

50.9

238

18.8

655

46.6

Net profit

00.0

170

13.4

430

30.6

Balance sheet

Fiscal Year

May 2023(mn yen)Current assets

May 2024(%)(mn yen)Feb.2024(%)(mn yen)

(%)

534

93.5

1,046

95.5

1,391

89.5

Cash and deposits

469

82.1

1,038

94.8

1,265

81.4

Accounts receivable-trade111.9-

-

110

7.1

Inventories------

37

6.5

49

4.5

164

10.5

Property, plant and equipment

71.3

90.9

40.3

Intangible assets

00.1

00.0

10.1

Investments and other assets295.1

39

3.6

157

10.1

Total assets

571

100.0

1,096

100.0

1,555

100.0

Current liabilities

51

9.0

406

37.1

435

28.0

Accounts payable - trade

30.7

0

0.0

33

2.1

Accounts payable

213.7

264

24.1

22

1.5

Non-current assets

Income taxes payable
Net assets
Owners' equity

0

0.0

80

7.3

225

14.5

519

90.9

690

62.9

1,120

72.0

519

90.9

690

62.9

1,120

72.0

May 2023

May 2024(mn yen)(mn yen)

-238

573

11

Cash flows from investing activities

0-4

Cash flows from financing activities--

Statement of cash flows

Fiscal Year

Cash flows from operating activities
Depreciation

Dividends paid--

Net increase in cash and cash equivalents

-238

569

Cash and cash equivalents

469

1,038

Note:Non-consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
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accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

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