Basic Report (Issued by The Stock Research Center)

ABEJA (5574 TSE Growth)June 11,2024

Engaged in the digital platform business that supports customers’ digitaltransformation (DX)This report is an English translation of part of the report issued on June 7, 2024.
For inquiries concerning the report, please contract info@stock-r.org【5574 ABEJA Sector：Information & Communication】
Fiscal YearNet sales

YoY

OperatingprofitYoY

Ordinary
profitYoYProfit

YoY

EPS

BPS

DPS

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

(%)

(yen)

(yen)

(yen)

--41.2232.0

0.0

Aug. 2022

1,978

57.1

-163

Aug. 2023

2,775

40.3

Aug. 2024 CE

3,067

10.5

Aug. 2024

E

3,080

Aug. 2025

E

Aug. 2026

E-

-181

402-

380

-5.7

11.0

383

3,692

19.9

4,435

20.1

-

-196

379

-

421

-

53.4

404.3

0.0

379

-0.2

319

-24.3

35.5

-

0.0

-4.7

382

0.6

320

-24.1

35.6

414.6

0.0

485

26.6

484

26.7

338

5.6

36.9

451.5

0.0

613

26.4

612

26.4

428

26.6

46.7

498.3

0.0

Note: CE(company expectations),E(Stock Research Center expectations)Source: Stock Research Center

1. Corporate Overview
ABEJA is engaged in the digital platform business, supporting the DX of customer
companies using its proprietary ABEJA Platform. ABEJA Platform is a software suite thatoffers processes ranging from data generation, data collection and data processing to AI
modeling necessary for DX, operating continuously and stably.

2. Financial Analysis
Net sales have steadily expanded in line with the increase in the number of projects,
growing at an annual rate of 32.4% from fiscal year ended August 2018 to fiscal year ended
August 2023. On the other hand, ordinary losses continued until fiscal year ended August2022 as a result of the burden of development costs for the ABEJA Platform. However, infiscal year ended August 2023, the company absorbed the fixed cost burden with asignificant revenue increase and turned profitable.
The company has a profitability advantage over other comparable companies that provide
AI-based services.

3. Non-Financial Analysis
The source of the company's intellectual capital is believed to be its expertise in promoting
the DX of customer companies using AI, which the company has accumulated since its
founding as well as the data accumulated in the ABEJA Platform.

4. Corporate Strategy Analysis
As the domestic DX market grows, the company has focused on expanding and deepening
its customer base and expanding the ABEJA Platform as key business strategies tosustainably increase its business scale.

5. Analyst Evaluation
We consider it possible for the company to expand its business scale by focusing on theexpansion and deepening of its customer base and the expansion of the ABEJA Platform
because there are a number of domestic companies that have needs related to theNewly Listed Company Introduction Report

1/2

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.

Basic Report (Issued by The Stock Research Center)

ABEJA (5574 TSE Growth)June 11,2024

streamlining of business processes.
We expect corporate performance to be in line with the company’s plan for fiscal year
ending August 2024. For fiscal year ending August 2025 and beyond, we forecast revenue
and profit to increase due to an increase in net sales per employee as a result of improvedskills.

Newly Listed Company Introduction Report

2/2

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
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
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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