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

Material Group (156A TSE Growth)

April 17, 2024

Providing PR consulting businessThis report is an English translation of part of the report issued on April 2, 2024.
For inquiries concerning the report, please contract info@stock-r.org【156A Material Group Sector：Services】
Fiscal YearNet sales

YoY(mn yen)(%)

OperatingprofitYoY(mn yen)(%)

Ordinary
profitYoY(mn yen)(%)

ProfitYoY(mn yen)

(%)

EPS

BPS

DPS(yen)

(yen)

(yen)

Aug.2022

4,177-417-397-208-

24.1

101.0

0.00

Aug.2023

4,655

11.4

713

71.0

695

75.1

437

2.1x

44.6

145.6

0.00

5,772

24.0

1,091

53.0

1,037

49.2

750

71.6

76.2

Aug.2024

f- 25.06

Note: Consolidated basis.Figures for the fiscal years ending August 2024 are the company's forecasts.

Providing Everything from Overall Strategy Development to SpecificMarketing Measures of PR
Material Group consists of the company and six subsidiaries, with each subsidiary
responsible for each business.
The company group is engaged in the PR consulting business, which is positioned as acore business; the digital marketing business, which is positioned as a semi-core business;and the PR platform business, which is positioned as a growing business. The PR
consulting business accounted for 85.8% of the net sales in fiscal year ended August 2023,
the digital marketing business for 8.8% and the PR platform business for 5.4%.

PR Consulting Business
The main customers of this business are large and medium-sized companies that provide
products and services for consumers in Japan. The company provides services ranging
from strategy design to implementation measures to raise awareness and transformperceptions by delivering information on items such as client companies' brands, products
and services to consumers and others through media and social media mostly using
various PR methods as well as measures including advertising.

Digital Marketing Business
The digital marketing business offers two services. One is the strategic design of digitalmarketing communication, digital advertising operation support, advertising creativeproduction, etc., which are provided mainly for customers of the PR consulting business.
The other is the provision of a web customer service tool.

PR Platform Business
The PR platform business consists of two services for SMEs and startups. One is a service
that matches SMEs and startups that want to deliver information to the media with media
outlets in need of relevant article content. The other provides PR and publicity support
services for startups by utilizing freelancers who specialize in PR and publicity.

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

Material Group (156A TSE Growth)

April 17, 2024

Financial Statements

Statement of income

Fiscal Year

Aug. 2022(mn yen)Three months
to Nov.2023

Aug.2023(%)(mn yen)(%)(mn yen)(%)

Net sales

4,177

100.0

4,655

100.0

1,283

100.0

Cost of sales

1,671

40.0

1,820

39.1

546

42.6

Gross profit

2,506

60.0

2,835

60.9

737

57.4

Selling, general and administrative expenses

2,089

50.0

2,121

45.6

533

41.5417

10.0

713

15.3

204

15.9

3-

2-0-

Operating profit
Non-operating income
Non-operating expenses

23-20-

7-

Ordinary profit

397

9.5

695

14.9

197

15.4

Profit before income taxes

403

9.6

616

13.2

203

15.8

Profit attributable to owners of parent

208

5.0

437

9.4

125

9.7

Balance sheet

Fiscal Year

Aug. 2022(mn yen)Current assets

Aug.2023(%)(mn yen)Nov.2023(%)(mn yen)

(%)

1,874

66.7

1,685

63.9

1,781

61.5

Cash and deposits

851

30.3

614

23.3

678

23.4

Accounts receivable - trade

868

30.9

862

32.7

822

28.4

Inventories

180.6

32

1.2

66

2.3

Non-current assets

934

33.3

951

36.1

1,117

38.5

Property, plant and equipment

105

3.7

58

2.2

56

1.9

Intangible assets

493

17.6

505

19.2

653

22.5

Investments and other assets

336

12.0

387

14.7

406

14.0

2,809

100.0

2,637

100.0

2,898

100.0

985

35.1

923

35.0

977

33.7

299

10.6

308

11.7

280

9.7

Total assets
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Non-current liabilities
Long-term borrowings
Net assets
Owners' equity

----

100

3.5

107

3.8

118

4.5

126

4.3

830

29.5

281

10.7

363

12.5

805

28.7

256

9.7

289

10.0

993

35.4

1,432

54.3

1,557

53.7

992

35.3

1,430

54.2

1,556

53.7

Aug. 2022

Aug.2023(mn yen)(mn yen)347

535

Depreciation

4339

Amortization of goodwill

3741

Cash flows from investing activities-53-211

Cash flows from financing activities-88-561Statement of cash flows

Fiscal Year

Cash flows from operating activities

Dividends paid--

Net increase in cash and cash equivalents

204-236

Cash and cash equivalents

851

614

Note:Consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

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
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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