Newly Listed Company Introduction Report (Issued by The Stock Research Center)itamiarts (168A TSE Growth)

April 12, 2024

Selling sales promotion material mainly through 18 e-commerce sites
This report is an English translation of part of the report issued on April 9, 2024.
For inquiries concerning the report, please contract info@stock-r.org【168A itamiarts Sector：Other Products】
Fiscal YearNet sales

YoY

OperatingprofitYoY

Ordinary
profitYoYProfit

YoY

EPS

BPS

DPS

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

(%)

(yen)

(yen)(yen)Jan.2023

2,506

19.0

113

-

127

7.5x

91

6.5x

87.4

257.3

0.0

Jan.2024

3,112

24.2

192

69.9

221

74.0

153

68.1 145.9

401.0

0.0

3,509

12.8

244

27.1

240

8.6

167

9.2 119.9-20.0

Jan.2025

fNote: Non-consolidated basis.Figures for the fiscal year ending January 2025 is the company's forecasts.

Selling Sales Promotion Material on Its Own E-commerce Siteitamiarts is engaged in the manufacture and sale of sales promotion material or SPmaterial, such as banner flags, event flags, advertising flags and booklets. Although itoutsources some processes, the company basically carries out the product planning, site
construction, customer attraction, sales, manufacture and shipping of SP products inhouse. Therefore, it ensures stable quality, short delivery times and low prices while also
accommodating small lot purchases.
Itamiarts’ main focus is on sales through BtoB e-commerce sites with wholesaletransactions conducted for major clients. With sales on BtoB e-commerce sites accounting
for approximately 70% of net sales and wholesales accounting for approximately 30%, thecompany has transactions with over 350,000 companies in total.
itamiarts operates a total of 18 e-commerce sites which are referred to as the King Series,
each dedicated to specific SP material. On each site, there is an independent site named“SP material name + King” for each type of SP material. The sites with high net sales aresites for banner flags, overhead flags and booklets.
Take the site for banner flags as an example, while it is an e-commerce site specializing
in Japanese narrow banner flags, it also consciously cross-sells products, listing other SPmaterial and handling more than 15,000 products. Additionally, an order can be placed forjust one original banner flag, which can be shipped as soon as the next business day.
Regarding e-commerce sales operations, in addition to building e-commerce sites,
itamiarts uses an in-house developed system for processes ranging from receiving orders
to delivery, covering order management, product management, customer management
and shipping instructions. It also has an in-house department specializing in e-commercemarketing in charge of various aspects, including SEO measures, web advertising
operations and service development.
The company’s wholesales are targeted at referrals and customers who place large
quantities of orders through its e-commerce sites. It also has dedicated sales staff torespond to customer needs that are often overlooked in e-commerce.

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
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not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)itamiarts (168A TSE Growth)

April 12, 2024

Financial Statements

Statement of income

Fiscal Year(%)(mn yen)(%)(mn yen)(%)(mn yen)Jan.2024

Jan.2023

Jan. 2022

Net sales

2,106

100.0

2,506

100.0

3,112

100.0

Cost of sales

1,293

61.4

1,524

60.8

1,905

61.2

Gross profit

813

38.6

981

39.1

1,207

38.8

Selling, general and administrative expenses

818

38.8

867

34.6

1,014

32.6

Operating profit

-4-

113

4.5

192

6.2

Non-operating income

36-

25-

42-Non-operating expenses

13-12-

14-

Ordinary profit

170.8

127

5.1

221

7.1

Profit before income taxes

160.8

133

5.3

224

7.2

Net profit

140.7

91

3.6

153

4.9

Balance sheet

Fiscal Year(%)(mn yen)(%)(mn yen)(%)(mn yen)Jan.2024

Jan.2023

Jan. 2022

571

27.3

662

29.7

897

35.5

Cash and deposits

266

12.7

312

14.0

449

17.8

Accounts receivable-trade

172

8.2

201

9.0

242

9.6

Inventories

88

4.2

96

4.3

130

5.1

1,520

72.7

1,564

70.2

1,629

64.5

1,485

71.0

1,50267.4

1,527

60.5

27

1.3

180.8

25

1.0

Current assets

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Current liabilities
Accounts payable - trade
Current portion of bonds payable
Current portion of long-term borrowings
Non-current liabilities
Bonds payable
Long-term borrowings
Net assets
Owners' equity

Statement of cash flows

Fiscal Year

Cash flows from operating activities

70.3

42

1.9

76

3.0

2,091

100.0

2,227

100.0

2,526

100.0

530

25.3

750

33.7

810

32.1

512.461

2.7

73

2.9

-

-

--

100

4.0

247

11.8

385

17.3

333

13.2

1,385

66.2

1,206

54.2

1,295

51.3

100

4.8

100

4.5

--

1,188

56.8

1,046

47.0

1,251

49.5

176

8.4

270

12.1

421

16.7

176

8.4

270

12.1

421

16.7

Jan. 2022

Jan.2023

Jan.2024(mn yen)(mn yen)(mn yen)

259

153

236

153

141

169

Cash flows from investing activities

-136

-94

-252

Cash flows from financing activities

-44

-25

129

Depreciation---

Net increase in cash and cash equivalents

80

41

119

Cash and cash equivalents

178219339

Dividends paid

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

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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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