Alpha-Win Company Research Report
PCA(9629 TSE Prime)● SummaryIssued: 7/4/2022

Alpha-Win Capital Inc. Research Department
http://www.awincap.com/

Business Description
・ PCA CORPORATION (hereinafter, the “Company”) is an independent software manufacturer specialized inpackaged enterprise system software. It is a major specialized player in the industry.
・The Company was founded in 1980. Since then, it has been providing on-premises or cloud-based software mainly
to small/medium-sized companies. The Company’s mission is to contribute to society as a “Management Support
Company” that supports other companies in conducting smooth management and operation, with a focus onproviding enterprise system software that realizes high-level automatization.

Last Fiscal Year’s Financial Results and This Fiscal Year’s Forecast
・The Company's financial results for the previous fiscal year (full year, FY 2022; note that the Company’s fiscal year
is March-ending, i.e., FY 2022 ended in March 2022) were mostly as expected with no surprises. Due to the change
in the revenue-recognition standard, sales increased slightly compared to the FY before the previous (FY 2021). On
the other hand, in response to the end of support for the PCA X series, there was a large, event-driven demand for
product replacements, resulting in double-digit profit growths. Sales were Y13,382 million (+0.6% YoY), operating
profit was Y2,655 million (+14.7% YoY), and net profit was Y2,367 million (+41.9% YoY).
・However, sales were slightly lower than the Company’s forecast as well as Alpha-Win Research Department’s
forecast which had been somewhat higher than the Company’s. On the other hand, profits exceeded the Company’s
forecasts and resulted in levels that were close to Alpha-Win’s forecasts. Sales, operating profit, and recurring profit
were the second highest in the Company’s history, following the record-high sales and profits achieved in FY 2020
due to event-driven high demand. Since gain on sales of securities was recorded, net profit reached a record high.
・The Company announced its forecast for the current FY (FY 2023): sales of Y12,927 million, operating profit ofY1,100 million, and net profit of Y639 million. Due to the fallback from the high demand for the products andupfront investment costs for PCA Hub, etc., sales are expected to decrease by 3.4% and operating profit is expected
to drop significantly by 58.0% during this FY.
・During the past fallback period following an event-driven high demand (FY 2015), sales and profits fell significantly
and a net loss was posted. This time, though, the results are expected to be largely helped by the strategic shift of thebusiness portfolio to the subscription-based business (maintenance + cloud service) which has high continuity andstability. Therefore, although profits are expected to decrease significantly, the Company expects that it will be able
to absorb its upfront investment costs and maintain the operating profit at greater than Y1 billion.

Alpha-Win Research Department’s Forecast of Financial Results・Based on the Company’s financial forecast for this FY and interview, we reviewed our forecasts for the next three
years including this FY and have revised them downward.
・For this FY, we had expected a decrease in sales and profits in a fallback from the event-driven high demand.
However, the Company’s forecasts turned out to be lower than our forecast. The forecast that there will be an
operating profit decline of a little less than 60% (a decrease of about Y1.56 billion) was a particularly negative
surprise. This difference is most likely due to the fallback from the event-driven high demand for the products andthe profit decline (about Y700 million) to be caused by upfront investments for PCA Hub, etc. However, theCompany’s estimates for this FY’s sales growth rate of the cloud and overall profit margin seem somewhat
conservative, and its forecasted profit for this FY has limited downside risks. Therefore, we predict that there ispotential for an upward revision.
・From the next FY onward, under the assumption that economic activities will gradually normalize as the global
economy stabilizes and the COVID-19 situation settles down, we predict that the Company will return to a sales andprofit growth trend as its upfront investments peak out, the impact of the fallback from the event-driven high demand
disappears, and the cloud business grows. We have not changed our prediction that the annual profit growth rateover the medium term (on a normalized basis excluding event-driven high demand) will be 8-10%, with the cloudbusiness continuing to support its growth.
Competitiveness・The Company has a customer base of approx. 240,000 companies. It has a high brand recognition and top-level
1/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit
for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of thisReport belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

market share in accounting and finance software targeting small/medium-sized companies. It is especially taking alead in cloud-based enterprise system software in those fields and is the top player in the market.
・Its strength is its concentration of resources in its field of expertise as a specialist to develop products and services
that meet various customer needs, including those related to changes in tax and other regulations, ahead of its
competitors. It also has a stable customer base and can provide high-quality products and services at reasonable prices.

Business Strategy
・The Company has announced the medium-term management plan for the three years starting this FY. Numericaltargets for the final year or FY 2025 are as follows: sales of Y15 billion or more (of which, subscription-based sales
are Y9.5 billion or more), consolidated operating profit of Y2.5 billion or more (profit margin of 16% or more), ROE
of 10% or more, DOE of 2.5%, and dividend payout ratio of 30%. Excluding sales, all figures have already beenmostly achieved in the past and they seem like conservative goals.
・The PCA Group’s growth strategy is to provide total solution services centered on software. It will execute fourpriority measures (establishing a strong revenue base for the core businesses; creating new business opportunities;
strengthening monozukuri or the creation of things with a focus on safety, security, and anticipation of needs; andestablishing a highly profitable and sustainable management foundation). Basically succeeding the previous mediumterm plan, it will respond to digitalization needs while proactively working on the SDGs.
・On the other hand, its biggest challenges are to effectively utilize its abundant cash and deposits (which exceed its
annual sales) for future growth and to develop the new businesses that it has started (PCA subscription, hyper, HR
business, PCA Hub, etc.) to put them onto track and monetize them.
Stock Characteristics and Price・A defensive, domestic-demand-oriented, and small-cap growth stock that is positively influenced by the transition toa subscription-based business model, the work-style reform, and tax reforms. However, volatility of businessperformance and stock price tend to rise before and after event-driven high demands.
・In response to the forecast for this FY that profit will drop largely, the Company’s stock price fell sharply and has
been underperforming the TOPIX.
・Compared to the average value of all companies listed on the TSE Prime, the valuation of the Company’s stock seems
to be overpriced in terms of P/B based on the previous FY’s financial results and expected P/E and dividend yield
based on the current FY’s forecasts.
・However, we believe there is an upside to the stock price over the medium to long term for the following reasons: its
likelihood of achieving its forecasted profit for this FY seems high, a greater return of profit to shareholders can be
expected over the medium to long term, its business is mainly subscription-based and is therefore stable andcontinuous, its subscription business has a high growth potential so it is expected to return to a growth trend for sales
and profit starting next FY, and its P/E is expected to decrease. For the time being, stock price will likely be affectedby whether the new businesses (especially PCA Hub) will succeed, the growth rate of the cloud business, and whether
there will be changes in the tax system and accounting system.
Return of Profit to Shareholders
・The Company has been stably paying dividend and has been buying back its shares. In FY 2022, the annual dividend
per share was 24 yen (stock split taken into account: ordinary dividend of 13 yen plus a special commemorative
dividend of 11 yen), and dividend was essentially raised by about 12.6 yen. This FY, there will no longer be acommemorative dividend, and the ordinary dividend of 13 yen will be maintained.
・When the Quo Card shareholder benefit plan is taken into account, the actual dividend yield comes out to be 1.7%
(maximum) based on this FY’s figures. The dividend payout ratio is 40.7% based on the Company’s financial forecast
for this FY, which is higher than the target of 33%. However, we estimate that the DOE will be 1.8%, becoming
lower than the target of 2.5% again. From the next FY, business performance is expected to recover, and we anticipate
that the Company may further strength its return of profit to shareholders such as dividend hikes and share buybacks.
! 9629 PCA

Sector: Information & Communication " Figure A

FY
2019
2020
2021
2022
2022
2023
2023
2024
2025
2025

Old Standard
Old Standard
Old Standard
Old Standard
New Standard
CE: New Standard
E: New Standard
E: New Standard
CE: New Standard
E: New Standard

Sales

YoY

O.P.

YoY

R.P.

YoY

N.P.

(million yen)（%）(million yen)（%）(million yen)（%）(million yen)

11,43914,266
13,30815,142
13,382
12,927
12,95014,31015,00015,520

16.9
24.7
-6.7
13.8
0.6
-3.4
-3.2
10.5
8.5

1,248
2,781
2,314
2,516
2,655
1,100
1,300
1,870
2,500
2,550

YoY

EPS

BPS

Dividend

（%）

(Y )

(Y )

（Y ）

54.7
122.8
-16.8
8.7
14.7
-58.6
-51.0
43.8

1,277
2,808
2,340
2,542
2,697
1,132
1,320
1,890

53.0
119.9
-16.7
8.6
15.2
-58.0
-51.1
43.2

906
1,816
1,668

105.5
100.4
-8.1

44.42
90.97
83.50

596.59675.81
791.64

10.33
18.00
11.33

2,367
639
700
1,130

41.9
-73.0
-70.4
61.4

118.36
31.95
35.00
56.50

847.14858.09901.60

24.00
13.00
13.00
14.00

36.4

2,570

36.0

1,550

37.2

77.50

965.1015.00(Note) CE: the Company’s estimate/forecast. E: AlphaWin Research Dept.’s estimate/forecast. Forecasts for
EPS, BPS, and dividend reflect the 3-for-1 stock split
conducted on October 1, 2021 (past years have beenrevised retroactively). “Accounting Standard for
Revenue Recognition (ASBJ Statement No. 29),” etc.,
have been applied starting in FY 2022. “Old Standard”
is the previous revenue-recognition standard. “NewStandard” is the new revenue-recognition standard.
(Note) In this Report, the values for the same item may
not match completely due to rounding, processing
during calculation, method of display, etc.

2/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit
for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of thisReport belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022! Stock Price and Valuation Indicators: 9629 PCA " Figure B
Dividend Payout Ratio

Item

7/1/2022

Stock Price (Y)1,158

Last FY's Results

9.8

1.4

2.1%

13.6%

Shares Outstanding (thou.)

23,100This FY's Forecast

33.1

1.3

1.1%

37.1%

Market Capitalization (million yen)

26,750

Next FY's Forecast

20.5

1.3

1.2%

24.8%

59.7%

Last FY’s ROE

14.4%

Dilutive Shares (thou.)

0

Item

P/E

P/B

Equity Ratio at Last FY-End

Dividend Yield(Note) Forecasts were made by Alpha-Win Research Dept.

【Stock Chart (end-of-week prices) : 9629 PCA】

Figure C

(Y)

2,500
2,300
2,100
1,900

5.00

Stock price (left axis)
Price relative to TOPIX (right axis)

4.50
4.00

1,700

3.50

1,500

3.00

1,300
1,100

2.50

900

2.00

700

1.50

500

1.00

08
/1
6
01
/1
7
06
/1
7
11
/1
7
04
/1
8
09
/1
8
02
/1
9
07
/1
9
12
/1
9
05
/2
0
10
/2
0
03
/2
1
08
/2
1
01
/2
(M 2

M
/Y
Y
)

300

(Note) From the fourth week of August 2016 to July 1, 2022

【Performance】
PeriodReturnvs. TOPIX
1 month-6.2%-2.6%
3 months-24.7%-19.5%
6 months-30.3%-22.9%
12 months-11.9%-6.9%(Note) Reflects stock price and index
values through the closing price on
7/1/2022. The return for the 1-month
period is the comparison between theclosing price on the last day of May andthe closing price on July 1. Similar for theother periods. Prepared by Alpha-Win
Research Dept.

Disclaimers
This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc.
(hereinafter “Alpha-Win”) on the request of the company presented in this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or
reliance on this Report. Investors who read this Report must make their own decisions on all investment mattersand take full responsibility regarding their investment.
This Report has been prepared with a focus on objectivity and neutrality based on the analysis of generally accessible
public information and supplemental information including interview(s) by the analyst. Alpha-Win, the writer, and/or
other persons involved in the publication of this Report may already hold, or buy and sell in the future, the stock of thecompany presented in this Report.
Contents of this Report are based on information current as of the issue date and are subject to change without
notice. For the latest (updated) report, please see our website (http://www.awincap.com/). We also do not
warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit forany purpose and do not accept any responsibility or liability.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied, cited, ortranslated without our consent.
For inquiries regarding this Report, please send us an e-mail to info@awincap.com. However, Alpha-Win and thewriter of this Report do not have any obligation to reply to inquiries.
PFV2022-0708-1500

3/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit
for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use ofor reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual property of thisReport belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

Contents
1．Company Overview .......................................................................................................................... P5
Major Specialized Player in the Enterprise System Software Industry ............................................. P5
Business Philosophy .......................................................................................................................... P8
Renewed Tagline and Product Brand ................................................................................................ P8
2．Business Description and Business Model ..................................................................................... P9Enterprise System Software Crucial for Efficient Business Operations ........................................... P9
Business Model with High Continuity and Marginal Profit Ratio .................................................... P9
Expansion of the Highly Stable and Profitable Subscription-Based Business ................................ P10
Cloud Business as the Growth Driver ............................................................................................. P11
Started the PCA Hub eDOC Service ................................................................................................. P12
3．Shareholder Composition ............................................................................................................ P13
Change in Composition by Type of Shareholder ............................................................................ P13
Major Shareholder Composition ..................................................................................................... P13
4．ESG.................................................................................................................................................... P16
Environment, Society, and Governance .......................................................................................... P16
5．History of Growth .......................................................................................................................... P17
Company History ............................................................................................................................. P17
Past Transition in Financial Results ................................................................................................ P17
6．Business Environment ................................................................................................................... P20
Trends of the Software Market ........................................................................................................ P20
Comparison with Competitors ......................................................................................................... P21
7．Last Fiscal Year’s Results and This Fiscal Year’s Forecast ...................................................... P24
Results for FY 2022 (last fiscal year) ................................................................................................ P24
PCA’s Financial Forecast for FY 2023 (this fiscal year) .................................................................. P28
Alpha-Win Research Dept.’s Financial Forecast for FY 2023 (this fiscal year) ............................... P30
8．Growth Strategy ............................................................................................................................. P32
Medium- to Long-Term Vision and Policy ..................................................................................... P32
Management Indicators Set as Goals ............................................................................................... P33
Alpha-Win Research Dept.’s Forecast of Medium-Term Financial Results ................................... P34
9．Analyst’s View ................................................................................................................................ P36
PCA’s Strengths and Challenges ..................................................................................................... P36
Shareholder Return and Shareholder Benefit Program ................................................................... P37
Stock Price and Factors that May Affect Stock Price ..................................................................... P39
Note: 1) Upon translating to English, when the page numbers differed from the original Japanese version, they were
adjusted to those of the English version of the report. 2) The Company’s fiscal year is March-ending, i.e., FY 2023
ends in March 2023.

4/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

1. Company Overview

w Major specialized player
in the industry with 41
years of history,
developing and providing
packaged enterprisesystem software fordomestic small/mediumsized companies◆ Major Specialized Player in the Enterprise System
Software Industry
PCA CORPORATION (hereinafter, the “Company”) is an independent,
mid-tier, specialized company in the software industry. The Company is a
specialist in developing and selling packaged software (software preparedfor use in certain operations) for enterprise systems1, such as those foraccounting and tax. It is a major player as a specialist in such software forsmall/medium-sized companies.

(1) Enterprise system: a part of acompany’s information systemthat deals with matters directly
affecting business, such as
financial accounting, production
control, sales and inventory
control, purchases, HR, andpayroll. A general term for backoffice applications. Also called
the mission-critical system, it
serves as an important coresystem for operations/services.

About 240,000 companies are active users of the Company’s products.
Sales toward ordinary companies comprise greater than 90% of the total
sales. With regards to the size of the corporate customers, the Company isespecially strong in business toward small/medium-sized companies with50 to 100 employees. 80% of the Company’s sales are made via distributors(the remaining 20% are direct sales). The Company’s customers arediversified, and by monetary value, many of its major customers are large
corporations. It is the top player in accounting software for public benefit
corporations, with its software having been implemented by over 8,000
public benefit corporations in total.

w The PCA Group iscomposed of the Company
and 3 subsidiaries.
Acquired Dreamhop but
sold Keepdata.

As of the end of May 2022, the Company’s group is composed of a total offour companies: the Company and three consolidated subsidiaries.
The consolidated subsidiaries are 1) Xronos Inc. (development/sales ofwork management system2 and time clocks; the Company founded thissubsidiary in 2001 with an 80% stake), 2) KEC Corporation(implementation support, operation, maintenance, and other services for
PCA’s products/services; wholly owned and founded in 1998 by theCompany), and 3) Dreamhop Co., Ltd. (became wholly acquired) that was
newly acquired in October 2020 (Figure 1).

(2) Work management system:
also called the attendance
management system, it
manages/utilizes various info on
working hours. Can
automatically aggregate data on
working hours, etc., and prepare
data to link with payroll
software. Provided as onpremises or by cloud.

For the details on the three consolidated subsidiaries, please see pages 2023 of our report published on November 22, 2021.

【Figure 1】Overview of the Three Consolidated Subsidiaries
Overview of Consolidated Subsidiaries
Company Name
Headquarters Location

Business Description

Dreamhop Co., Ltd.

Xronos Inc.

KEC Corporation

Iidabashi, Chiyoda-ku, Tokyo

Kanda Neribeicho, Chiyoda-ku, Tokyo

Fujimi, Chiyoda-ku, Tokyo (PCA Building)Sales offices and bases in the 3 cities of Osaka, Yokohama, and Sapporo

6 sales offices in Sapporo, Sendai, Nagoya, Osaka, Hiroshima, and Fukuoka

3 sales offices in Osaka, Nagoya, and Kyushu

Mental-health-related businesses (providing stress check tests andfeedback for early detection of persons with mental health problems, andproviding services for preventing leave of absence and job separation),
Work management (attendance management) systems, in-houseoccupational health physician services (consultation with occupational
development of time clocks, and their sales and maintenance services
health physicians), harassment prevention (law compliance, liability
insurance, and training), and health management (solutions such as
revitalizing organizations and improving productivity)

Sales of packaged business software such as PCA Accounting and PCA
Salary, maintenance of network systems, software installation support,
instructor support for implementation, and various user support

1,500 companies; 10,000 offices; more than 1,000,000 users

CustomerFoundedPCA Corporation; Ministry of Health, Labour and Welfare; Ministry of
the Environment; Ministry of Land, Infrastructure, Transport andTourism; Tokyo Metropolitan Government; Kanagawa Prefecture;
Saitama Prefecture; Chiba Prefecture; City of Yokohama; Osaka City;
City of Sapporo; varous other government organizations and privatecompanies. Used by companies and organizations of 10-100,000 people.

12,000 corporate users
Number of users of Xronos Performance: 1,710,000 ⇒ 1,910,580
Number of users of X'sion: 431,784 ⇒ 515,412(Both as of Nov. 15, 2021 ⇒ May 9, 2022; information on its old website)

More than 20,000 companies (in Japan)

October 2020 (date acquired; founded in June 2005)

May 2011 (business acquired)

April 1988

Capital Stock (million yen)

56.5

60

10

PCA's Stake

100%

80%

100%

Number of Employees (as of the end of Sept. 2021)

15

110 (as of April 1, 2022)

42

Sales (for the most recent period)

Not disclosed

Y2,163 million (FY ended March 2021; information on its website)

Not dislocsed

Management Policy

Same as PCA

Formulates its own medium-term plan: working on "investments for future
growth" and "steady performance growth"Same as PCA

Consolidated Sales Category

Other operating revenue

Mostly product sales and cloud sales, plus maintenance and other operating
revenue

Mostly other operating revenue, plus products, merchandise,maintenance, and cloudhttps://www.dreamhop.com/

https://www.xronos-inc.co.jp/

Website URL
Trends in Business Performance and Recent Situation

Expanding its business; has formed a business alliance with TOKYOTO
Intense competition, but since it is a growing market, there is potential for
BUSINESS SERVICE CO.,LTD. Its net loss seems to be improving thanks development in areas such as construction. Solid business performance.
to streamlining.
Profitability seems high.

https://www.kec-sp.com/page1
Since its business performance tends to be basically linked with theperformance of PCA, sales and profit drops are expected this fiscal year.
However, it seems to be generally posting a net profit.

(Ref) Prepared by Alpha-Win Research Dept. based on each company’s website and securities report and interview with the Company. Each company’s
performance trends have been analyzed by Alpha-Win.

5/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
The Company acquired Keepdata Ltd. (hereinafter, “Keepdata”) in March
2019 and made it its consolidated subsidiary (acquired 66.8% of the sharesfor approximately Y44 million). It had acquired this company as a foothold
for the new data utilization business, since Keepdata has technology
development skills as well as expertise and proven record in the business.
However, creating synergy with the Company in system linkage and sales
had turned out to be difficult, and Keepdata had been continuously postinga net loss and an excess of debt. Therefore, in December 2020, theCompany sold all shares of Keepdata to a third party (sales price was notdisclosed). The Company ended up selling Keepdata less than two years
after its acquisition, but this decision had most likely contributed positively
in terms of profit, since Keepdata’s sales (estimated by Alpha-Win to beabout Y80 million in the fiscal year before the previous) and net loss
(similarly estimated to be several dozen million yen) were no longer
included in the consolidated results starting in the previous fiscal year.

w Consolidated-to-parentcompany sales ratio has
stably been around 1.1.
The summed recurring
profit of the consolidated
subsidiaries (consolidated
minus parent) has been asurplus.

The ratio of consolidated to parent-company sales has stably remained ataround 1.1, indicating that the parent company’s financial results have agreater weight (Figure 2). This fiscal year, since the parent company’s sales
are expected to decline while the subsidiaries’ sales will grow, the ratio is
expected to become 1.3.
Although the subsidiaries’ profit/loss is not disclosed, the ratios of
consolidated to parent-company recurring profit have been in the range of
1.0-1.6 during the fiscal years that the Company has been in the black(including this fiscal year’s forecast). Additionally, the summed profit/lossof the three subsidiaries, calculated by consolidated minus parent-company
recurring profit, has been a surplus since FY 2016 (Figure 3 on page 7).
Among the subsidiaries, Xronos seems to continue to contribute the mostto the financial results, thanks to the work-style reform. Its sales were Y1.5
billion in FY 2019 and Y2.16 billion in FY 2021. Sales of FY 2022 havenot been disclosed at this point. In FY 2025, the company is planning forsales of Y4 billion (according to Xronos’s former website). Although its
profits have not been disclosed, the subsidiary has mostly likely been
staying in the black along with KEC and contributing positively toconsolidated profit.

【Figure 2】Ratio of Consolidated to Parent Company Sales (ratios shown on upper portion of graph)
Unit: million yen

Sales of parent company

16,000
1.1

1.1

1.1

Consolidated sales minus parent company sales

1.1

1.1

1.1

14,000

1.1

1.1

1.2

887

Consolidated
to parent
company
ratio

1,167

12,0002,659
712

10,000

1.3

2,827

782
732

8,000

681

825

680

13,3796,000

10,727

9,693
4,000

7,487

7,761

FY 2015

FY 2016

8,628

8,960

FY 2017

FY 2018

12,141

10,723

10,1002,000
0FY 2014

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023 CE(Ref) Prepared by Alpha-Win Research Dept. based on the securities report. CE: the Company’s plan.

6/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022【Figure 3】Ratio of Consolidated to Parent Company Recurring Profit (ratios shown on upper portion of graph)
R.P. of parent company

Unit: million yen

3,000

1.2

N.A

1.6

Consolidated R.P. minus parent company R.P.

1.1

1.0

1.2

1.2

1.2

402

2,500

Consolidated
to parent

1.2

1.5 company
ratio

470
443

2,000
1,500
1,000

221

500

918

2,406

238
34
59
-139

356

1,039

800

26

2,227

1,897

776

405

0
41

-19
-500
FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023 CE

w Founded by certified public
accountants in 1980

The name of the Company comes from the five founders who were certified
public accountants (CPA); the letters CPA were shuffled into themeaningful name P (Professional) C (Computer) A (Automation).

w Rich in cash. Debt-lessmanagement. FCF is
positive. Cash & deposits
are on an increasing trend,
reaching levels that exceed
the annual sales.

The Company’s financial standing is firm, rich in cash and debt-less.
Relative to its sales of Y13.4 billion (last fiscal year’s result) and total assetsof Y28.4 billion, its debt is zero and it has Y16.1 billion in cash and deposits(values as of the end of March 2022), which is equivalent to 57% of total
assets and 14.4 months’ worth of average monthly sales.
Free cash flow (FCF) has been positive except for a certain period, and cash
and deposits on the balance sheet (B/S) have been generally increasing(Figure 4). Regarding the financial ratios, its equity ratio is 59.7% andcurrent ratio is 217.7%, also indicating financial soundness (values as ofthe end of March 2022).

【Figure 4】Change in Cash Flow (CF) (unit: million yen)
Unit: million yen

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Operating CF

①

627

488

141

847

1,048

547

1,427

1,533

1,270

2,141

3,328

1,632

Investing CF

②

-405

-127

185

-407

-750

-606

-627

-395

1,715

-80

-719

253

708

-207

-210

-205

-215

-216

-284

-214

-215

-216

-572

-225

-355

-254

Financing CF

3,684

FCF ( ①+②)

222

361

326

440

299

-60

800

1,137

2,985

2,061

2,609

1,885

4,392

Cash and Deposits (on B/S)

6,817

5,970

5,493

6,621

6,606

6,154

6,612

7,487

7,269

7,280

10,716

11,74916,090(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary(Note) Cash and deposits shown are values from the balance sheet, not values used in the CF calculation.

7/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022◆ Business Philosophy
w The Group’s basic
business policy is to “aimfor a more rational
business managementwith clear vision.”w The mission statement isto “contribute to society
by developing andproviding packaged
enterprise system
software that enables
high-level automation.”

The Company’s business philosophy was clearly declared as “customerfirst” when it made its first public offering in March 1994. Then, in 2010,it laid out its mission statement, the three key ideas of its businessphilosophy, and 34 rules for the code of conduct, and announced that thebasic business policy of the PCA Group is to “aim for a more rational
business management with clear vision.”
The Company’s mission statement is to “contribute to society by
developing and providing packaged enterprise system software that enables
high-level automation.” While its corporate culture is down-to-earth andhomely, the Company is also characterized as having a pioneering spirit in
the rather conservative industry, conducting R&D and launching new
products and services ahead of its competitors.
The following are the three key ideas of the Company’s businessphilosophy:
1) We will always be customer-first.
2) We will aspire to become a highly profitable company over the long termwith sound management.
3) We will treat employees like family and create a homely culture.

◆ Renewed Tagline and Product Brand
w The new tagline is “When
WORK Changes”【Figure 5】New Tagline

w Renewed the names and logo
designs of its product series.
The rebranding is aimed atraising recognition as a
subscription brand.
(3) PCA Subscription: Instead ofpurchasing or owning packaged
software, monthly or annual
fixed fees are paid for theamount of use. Not cloud-based;
operating equipment is built andmanaged in-house.

TaglineAs the new brand message, the tagline was renewed to “When WORK
Changes.” Aspiring to become a company that grows together with all its
customers and partners, it aims to help improve back-office productivity,
understand and support the working people, and contribute to its corporate
customers’ customer success for their greater development (Figure 5).
【Figure 6】New Brand Logo

Branding
In January 2022, the Company rebranded the names and logos of its products
and services. The names based on the DX series were abolished, and it
created new product names and logos linked with PCA Cloud and PCA
Subscription3. Through these changes, it aims to raise recognition as PCA ofsubscription services (Figure 6).

8/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

2．Business Description and Business Modelw Enterprise systems are
mission critical. Stability
and reliability are crucial
elements since they areused inside companies.

◆ Enterprise System Software Crucial for Efficient
Business Operations
The Company’s core business is enterprise systems that support internalbusiness operations. Unlike systems that simply work on personal
computers, an enterprise system is a computer system that supports a seriesof processes throughout all business operation flows within a company.
Since it is mission-critical for business operations, it is required to bereliable, efficient, stable, user-friendly, secure, and expandable.
The main methods for building an enterprise system are package-based
system development and original system development. Generally, themethod of combining sold packaged software into a system has advantages
such as short development time, cheapness, and having relatively few bugs.
On the other hand, its disadvantage is the difficulty in customizing thesystem to a company’s business conditions, operations, management styles,
and other specific needs.
As for original software development and implementation, outsourced
development and in-house development are the two options. In either case,the advantage of an original system is that it is easier to use since it can becustomized to a company’s needs and operations. However, development
cost and time are larger and longer, and it requires revisions, addition offunctions, and maintenance after implementation. Micro-sized, small-sized,
medium-sized, and mid-tier companies especially tend to find thedevelopment, implementation, and operation of original software difficult
due to financial, staff, and time constraints.

(4) Accounting software:
application software for therecording, processing, andintegrated management ofaccounting data
(5) HR and payroll software:
software for payroll calculationsand HR management

w Provides about 26 types oforiginally developed
packaged enterprisesystem software
w About 70% of sales comefrom originally developed
products and services.

In response to this, the Company has been developing original enterprisesystem software that specifically meets the needs of one-person businesses
and micro-sized (SOHO), small-sized, medium-sized, and mid-tiercompanies in areas such as accounting4, finance, HR and payroll5, sales
management, purchasing and inventory management, and tax. The
enterprise system software is either packaged (on-premises: conventional
products operated in-house by a corporate user) or cloud-based (a service
in which a corporate user can use the enterprise system software via theInternet easily and at a low cost without having to prepare its own server).
The Company sells and provides its software through either direct orindirect channels.
Additionally, the Company has not just been developing and sellingenterprise system software but has also been expanding its business byproviding consulting services based on solution proposals. With its
subsidiaries, it has also been providing various support services such as
maintenance service and implementation/operation support. Going forward,
the Company plans to further strengthen these businesses.

◆ Business Model with High Continuity and Marginal
Profit Ratio
The Company provides a total of about 26 types of software (counted byproduct name, including options). Its business model is based on the mass
production of a limited number of types of products. Due to the nature ofits business, its marginal profit ratio is high. Its original products and9/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
services (products/maintenance/cloud) account for a little over 70% of thetotal sales, while the remaining 30% are from other companies’ products(purchased merchandise) in the merchandise / other operating revenue
categories. From the development to the release of a new product,
approximately two years and a corresponding amount of cost are necessary.
Version upgrades (revision updates), which are prepared as needed, arereleased usually in a one- to two-year cycle. In recent years, however,software functions have become so enhanced that customers now tend topurchase less in response to this version upgrade cycle.

w Entry barrier is high sincereliability and proven trackrecord are required.

Since these types of software are related to operations that must be highly
reliable, and since software replacements give rise to issues of cost, labor,
and data continuity, their users show little interest in actively or frequently
replacing their current software with an alternative of a different company.
Therefore, customer loyalty is high, and contracts have high contract repeat
rates (50% to 90% or greater depending on the type of software). The
barrier to market entry is high because trust and brand recognition are amust in this industry and the companies are currently mostly being able toexist alongside one another by taking strong positions in different niches.

◆ Expansion of the Highly Stable and Profitable
Subscription-Based Business
w Sales are divided into fivecategories. Focused on thesubscription-based
businesses.

Until FY 2016, sales and profit/loss had been disclosed for the four businesssegments of “for ordinary companies,” “for non-profit organizations,”“medical,” and “cloud.” Since FY 2017, though, all business segments havebeen consolidated into one, and sales have been disclosed for five sales
categories (types): “products,” “merchandise,” “maintenance service,”“cloud service,” and “other operating revenue (also called “solutions”)”(Figure 7). Profit and loss by segment are no longer disclosed.

【Figure 7】Sales Classification (by category)Sales Classification by
Category

Contents

Products

Sales of original packaged software (accounting, sales management, purchasing and inventory management, payroll, HR, etc.)(includes version upgrades)

Merchandise
Maintenance Service
Cloud Service

FY 2022 (results)
Sales (million yen)

% of Total Sales

Est. Gross Margin

2,954

22.1

About 65%

439

3.3

About 30%

By signing up to PSS membership, users can receive inquiry and support services from call centers

3,316

24.8

About 75%

Subscription service for software provided via the cloud

5,568

41.6

About 65%

1,103

8.2

About 60%

13,382

100.0

Result: 65.8%

Sales of other companies’ products such as ledger sheets

Other Operating Revenue Sales of other companies’ products such as software/hardware combined with its original products; also called “solutions”

Total & Average(Ref) Prepared by Alpha-Win Research Dept. based on the securities report and interview. Gross margins have been estimated by
Alpha-Win. Sales for each category are based on the new standard.
(Note) Maintenance service and cloud service are the subscription-based businesses.

w Subscription-based
businesses (maintenance& cloud) account for about
66% of the total sales.

In recent years, sales of cloud services of the Company’s packaged software
have grown significantly, and the services have become the Company’s
growth driver with regards to both the overall sales and profit. In FY 2022,
sales of the cloud service were the largest by sales category, followed bymaintenance service. The sum of these two categories, or “subscriptionbased revenue” (also called the “stock business” in Japanese), account for
about 66% of the total sales. The maintenance and the cloud services havehigh gross margins and contract repeat rates and they have been stablesources of profit, contributing to a greater stability in business and profit.
On the other hand, sales of products and solutions (other operating revenue)
have tended to be influenced by event-driven high demands, replacement
cycles, and version upgrades.
Consolidated sales breakdown by the operation type of software is notdisclosed. However, sales seem to be diversified, with the sales for
10/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
accounting software predicted to be the largest by composition (about 15%of the total sales), followed by software for sales management,purchase/inventory management, and then lastly by payroll/HR.
Currently, the Company primarily sets internal target values based on
software sales (or the sold number of products) by operation type. Target
values are not set for the profit/loss of each operation type of software.
However, it has been working with an external IT consultation firm tocreate and adopt new performance management indicators to prepare forthe transition from sales-based management to profit-based management.
The Company has commented that the profit margins of each operation typeof software do not greatly differ between one another, but the main
accounting software business is presumably the most profitable.
The percentage of new software sales or version upgrade sales over the total
sales changes every year, but the percentage of version upgrades has always
been greater than 50%. As reference, the Company’s on-premises products
tend to be installed and used by users on a single PC (stand-alone).

w Rapidly shifting frompackaged software sales tothe cloud/subscriptionbased modelw The rapidly growing cloudbusiness is based on a
subscription-based, stablebusiness model. Taking alead in the market as the
single, obvious top player,
the Company has a highcompetitive edge.

(6) API (Application
Programming Interface):interface/network to operate
software; connects the softwareand the program.
(7) Kintone: cloud service forbuilding business app on a web
database, provided by Cybozu.
Allows easy system build-up andlinkage with other systems.
(8) AWS: Stands for Amazon
Web Services; the collective
name for the cloud computing
services provided by Amazon.
“on AWS” enables the use of
PCA’s cloud services on the
AWS server.

◆ Cloud Business as the Growth Driver
For many years, the Company had been focused on the business of selling
conventional packaged software, also known as on-premises. However, as
the Internet became more sophisticated and more widely used, it predictedthat the demand for the cloud will rise due to its convenience and cost
performance. Therefore, in 2008, the Company started providing cloudbased services more than ten years ahead of its competitors. Since then, it
has been providing cloud versions of all of its on-premises software.
In the cloud business, users pay fees continuously for a certain period to use
the software (subscription model). It is attractive as a stable, subscriptionbased business model, similar to the maintenance service (average monthly
fee of 20-30 thousand yen per corporate user). Due to its cost structure, thisbusiness has relatively small variable costs such as those for server
maintenance, manufacturing, sales, and logistics. It therefore has a highmarginal profit ratio.
The Company leads the industry as No. 1 in cloud-based, enterprise system
software business targeting small/medium-sized companies. The
advantages listed below seem to be making the Company stand out from its
competitors in the field. In recent years (2017-2018), its competitors havealso entered the cloud market in full scale as their “first year of the cloud,”but the Company is expected maintain its advantages for the meanwhile.
・ Providing a wide variety of advanced software for business operations
・ Originally developed open architecture; low cost・ Economies of scale are in effect, with more than 19,000 corporate users of
the cloud service already; well profitable
・ Therefore, it has a very strong price advantage compared to competitors
・ More than ten years’ worth of operation expertise・ User-friendly, with WebAPI6 allowing linkage with other companies’
cloud (linkage already possible with about 60 companies, including
Kintone7 of Cybozu)
・In PCA Cloud on AWS8, service is available 24 hours, 365 days (maxnumber of licenses for simultaneous use expanded from 3 to 72 CAL).
In recent years, it has been focused on the cloud service, and the number ofusers as well as sales has been growing steadily (Figure 8 on page 12).

11/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
During the expansion phase amidst the COVID-19 crisis, there was some
temporary slowdown in the growth rate. However, both the net number ofusers and the sales growth rate increased at accelerate rates in the previous
fiscal year, partially due to the event-driven high demand, and the businessis believed to continue to be the Company’s main growth driver.
【Figure 8】Change in the Number of Corporate Users of PCA Cloudand the Sales of Cloud
30,00010,000

Sales of the cloud service (right axis: million yen)
25,000

Number of corporate users of PCA Cloud (left axis: companies)

9,000
8,000
7,000

20,0006,000
15,000

5,000
4,000

10,000

3,000
2,000

5,000

1,000
0

0

FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
E
E
E

w PCA Hub service centeredaround PCA Hub eDOC wasstarted in March 2022. Cloud
service for document
management that also
supports the application of
the Electronic Books
Maintenance Act.
w Monthly-subscription-based
business model. Aiming togain 2,000 corporate users in
the first year.
(9) hyper (PCA hyper): newsoftware for mid-tier companies asa successor to Dream21. A
superior version of the DX series.
Users can flexibly select between
or combine on-premises and cloudversions according to their stage of
growth. Its unique feature is thatsmooth linkage can be made withother systems using API, allowing
streamlining of data management
within an entire corporate group(consolidated accounting).
(10) [The revised] Electronic
Books Maintenance Act: A lawthat allows the storage of nationaltax-related books and documents
as electronic data. Came into
effect in January 2022. Its purpose
is to improve productivity andconvenience, as well as promoting
paperless operation and remote
work.

(Note) Sales from FY 2008 to FY 2010 have not been disclosed. Estimates are partially included in the number of corporate usersof PCA Cloud.

(Ref) Prepared by Alpha-Win Research Dept. based on the Company’s financial results briefing
materials and interview. (E) represents estimates/forecasts made by Alpha-Win Research Dept.

◆ Started the PCA Hub eDOC Service
The service series PCA Hub (hub as in “the center of something”) wasstarted in March 2022. PCA Hub is a new service that helps small/mediumsized and mid-tier companies share core business data and shift to paperlessinternal operations and B2B transactions, thereby contributing to thedigitization of the Japanese society.
As the first service of the series, PCA Hub eDOC was released. It is an
online storage service (cloud-type document management service) thatallows companies to safely and securely share important business data andfiles internally. Linked with the PCA DX series and the hyper9 series, itenables the collective management of business-related documents. It is atool for optimizing operation efficiency by promoting the digitization andpaperless operation of fund management, accounting management, labor
management, and more. It also supports the application of the Electronic
Books Maintenance Act10.
Whereas the conventional eDOC was provided free of charge as onpremises, PCA Hub eDOC is a cloud-based, monthly subscription service
that is highly expandable. In the future, the Company intends to also
provide peripheral services for the eDOC and develop the business into astable source of revenue.
There are three price plans depending on the number of users and storage
capacity, with monthly fees of Y6,380, Y10,780, or Y19,580 (plus, paid
options available). Under the concept of “online storage service thatprovides levels of operation efficiency optimization that seemed out ofreach at prices within reach,” the pricing system is set at easy-to-introduce
prices. The Company aims to gain 2,000 corporate users in the first year
after release (annual full contribution to sales of approx. Y153 million toY470 million).

12/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

3． Shareholder Composition◆ Change in Composition by Type of Shareholder
Regarding shareholder composition by shareholder type as of the end of
March 2022 (Figure 9), the sum of “other corporate entities” and“individuals, etc.” accounts for greater than 60% of the total. There has beenno significant change compared with the end of FY 2021, with theproportions of “individuals, etc.” (29.1%, of which 13.4% are treasury
shares) and “overseas corporate entities, etc.” staying mostly the same andfinancial institutions rising only by 2 basis points.

w Percent of shares held byoverseas corporate entities
has increased.
w Shares were transferred
due to inheritance andother events, but thelargest shareholder has notessentially changed.

Note that upon inheritance from the founder (Masao Kawashima),
individually owned shares were transferred in FY 2017 to the generalincorporated association Kawashima Co., Ltd. (the founder family’s asset
management company, categorized under “other corporate entities”).

【Figure 9】Change in Shareholder Composition by Type of Shareholder (unit: %)
（％）

90
80
Other
corporate
entities

70
60
50

45.15

40
30

29.09

20

17.37

10

7.73

0
FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Individuals,
etc.

Overseas
corporate
entities, etc.

Financial
institu tion s,
etc.

at year-end(Ref) Prepared by Alpha-Win Research Dept. based on the securities report

w No change to stableshareholders in Japan

w。
w The largest shareholder isthe founder family’s asset
management company.

w PCA owns 13.4% of its own
shares and is essentiallythe second largest
shareholder.

◆ Major Shareholder Composition
Major shareholders as of the end of March 2022 are shown in Figure 10 on
page 14. Compared to the end of March 2021, shares held by the top ten
major shareholders have practically not changed by a large amount (thethree-for-one stock split did cause the number of shares to increase), except
for custodians (trust banks) and the Employee Stock Ownership Plan.
・The largest shareholder Kawashima Co., Ltd. is the asset managementcompany of two directors of the Company (President Sato and Director
Kumamoto) and their relatives (descendants to the founder Masao
Kawashima).
・Although not listed among the major shareholders, the Company itself has
essentially been the second largest shareholder for many years. After
Kawashima Co., Ltd. indicated its intention to sell its shares, the Company
additionally acquired the shares in a tender offer. As a result, it currently
owns a total of approx. 13.4% of its own shares.

13/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022【Figure 10】Current Major Shareholders

Unit for shares owned: thou. shares

End of Mar.
2015

Kawashima Co., Ltd.
PCA CORPORATION (treasury shares)
JP MORGAN CHASE BANK 385632
The Master Trust Bank of Japan, Ltd. (trust account)
MSIP CLIENT SECURITIESObic Business Consultants Co., Ltd.
FCP SEXTANT AUTOUR DU MOUDEPCA Employee Stock Ownership Plan
Logic Systems Co., Ltd.
Nagoya PCA Co., Ltd.
APPLIED SYSTEM LABORATORY Inc.
GOLDMAN SACHS INTERNATIONAL
Custody Bank of Japan, Ltd. (trust account)
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)
JPMBL RE NOMURA INTERNATIONAL PLC 1 COLLEQUITY
JP MORGAN LUXEMBOURG S.A. 1300000
MSCO CUSTOMER SECURITIESCredit Suisse Securities
Japan Trustee Services Bank, Ltd. (trust account)
SSBTC CLIENT OMNIBUS ACCOUNT
Mizuho Bank, Ltd.
BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTS M LSCB RD
Shigefumi Wada (individual)
State Street Bank and Trust Company 505001

KBL EPB S.A. 107704
Reiko Sato (individual): Heir to the founder Masao Kawashima
Tomoko Kumamoto (individual): Heir to the founder Masao Kawashima
Hiroko Wada (individual)
Proportion of Treasury Shares to All Outstanding Shares

For ratios: %End of Mar.
2016

End of Mar.
2017

End of Mar.
2018

End of Mar.
2019

End of Mar.
2020

End of Mar.
2021

End of Mar.
2022

2,544

2,544

8,805
2,544

8,805
2,546

8,208
3,146

8,205
3,136

762

762

762

762

762

885
762

8,208
3,101
1,014
284
886
762

330
342

357
342
300

381
342
300
258

381
342
300
258

406
342
300

8,208
3,101
1,399
1,137
886
762
377
349
342
300
260

300
342
300
258

337
342
300

Shareholding
Ratio

41.04
13.42
6.99
5.68
4.43
3.81
1.88
1.74
1.71
1.50
1.29

Ranking

1
―
2
3
4
5
6
7
8
9
10

909
463
359

1,416
267
261
363

363

363

363

363

543
732

543
747

543
798

453
798
270

335
521
282

4,401
4,401
1,074
11.0

4,401
4,401
11.1

11.0

13.6

11.0

13.6

13.4

13.4

(Ref) Prepared by Alpha-Win Research Dept. based on the securities report. Number of shares in March 2022 is the number after the threefor-one stock split. Numbers previous to this are numbers before the split.

w MFS, a major US-based
investment management
firm, holds more than 5%of all shares and has
submitted a statement oflarge-volume holdings. It
seems to be continuing tohold the shares.

・The second largest shareholder is JP Morgan Chase Bank.
Massachusetts Financial Services Company (“MFS”) owned 5.22% ofshares (401,900 shares) as of March 31, 2021, and had submitted astatement of large-volume holdings (the “5%-rule” statement). It has later
purchased more shares and submitted a change report indicating that it held
6.23% (479,400 shares) as of May 31, 2021. A change report has not been
submitted since then.
MFS is one of the oldest investment firms in the US. It invests globally andits AUM is 692.6 billion dollars (approx. 80 trillion yen as of the end of
December 2021). Characterized by a long-term, active investment style, it
has an office in Japan and invests in many Japanese equity as well.

w Several Japanese andoverseas institutional
investors, etc., are mostly
likely investing in the
Company throughcustodians.

Although MFS is not included in the list of major shareholders shown in
Figure 10, it is presumably investing through several accounts including JP
Morgan Chase Bank at second place (ranking excluding the Company with
its treasury shares; the same applies hereinafter).
The third largest shareholder, Japan Trustee Services Bank, Ltd. (trust
account), raised its shareholding ratio from 1.4% to 5.7%. The shareholding
ratio of the fourth largest shareholder, MSIP CLIENT SECURITIES, has
not changed.
Although there are trust banks and custodians among the major
shareholders, their final investors and investment purposes are unknown.
However, they are predicted to be pure investments by Japanese andoverseas institutional investors and funds.
Regarding investment trusts in Japan, the Company’s shares areincorporated in index funds including those managed by AssetManagement One, Daiwa Asset Management, and Sumitomo Mitsui DS
Asset Management.

14/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)
w Its rival OBC is also thefifth largest shareholder.

w A French investment fund
newly became a major
shareholder.

Issued: 7/4/2022
・The fifth largest shareholder, Obic Business Consultants Co., Ltd. (OBC),
is a competitor with whom the Company has no transactions. There has
essentially been no change in the number of shares held.
The sixth largest shareholder, FCP SEXTANT AUTOUR DU MONDE,
newly appeared as a major shareholder and holds 1.9% of all shares. It isan equity investment fund managed by the French company Amiral Gestion(an independent asset management company founded in 2003 and focusedon long-term investments; total investment amount of 4 billion euro). The
fund invests in equities of OECD and emerging countries. Its exposure to
Japanese equities is up to 28% of its portfolio and it is also a major
shareholder of several Japanese equities such as Uniden HD.
・There has essentially been no large change in the number of shares heldby the Employee Stock Ownership Plan at seventh place, Logic Systems
Co., Ltd. (investment purpose unknown) at eighth place, Nagoya PCA Co.,
Ltd. (a company to which the Company outsources a part of its softwaredevelopment of SHOKON and other products) at nineth place, and
APPLIED SYSTEM LABORATORY Inc. (investment purpose unknown)at tenth place.

w There seems to be no
activist among the major
shareholders.

・Currently, there seems to be no activist-like behavior among the major
shareholders. Also, the Company has not adopted any anti-takeovermeasures.

15/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

4． ESGw Promoting paperless
operations

w Supporting digitalizationof small/medium-sizedcompanies

w Proactively supporting
people with physicaldisabilities and thespotting and training of IT
talents

w Working on improving theworking/workplaceenvironment

w Promoting diversity interms of gender. Has set
goals to increase thepercentage of women.

w Of the total of 12 board
members, two are women.
Six are outside directors
and auditors.

◆ Environment
Since the Company does not directly own any production facility, its
business is not the kind that harms the environment. It has been working on
digitalizing internal documents, invoices, and other papers to make themcompletely paperless. It also makes consideration for business activity
efficiency and conservation of energy and electricity.
◆ SocietyAs its mission statement, the Company has declared to “support customers’
businesses through enterprise system software.” The concept is that it isfulfilling its social responsibility by contributing to the improvement of userconvenience and efficiency. It plans to especially focus on supporting
small/medium-sized corporate users and helping them digitalize.
Through sponsorship, the Company supports the spotting and training oftalented programmers who will shape the future as well as promoting
athletics such as the marathon. It also operates a farm in Chiba Prefecture
where it proactively hires physically disabled employees. It purchases
flowers, lunchboxes, bakeries, etc., from companies that hire physicallydisabled employees.
In addition, under the concept that the enhancement of the working
environment of each individual will lead to the sustainability of theCompany as a whole, it has been focusing on promoting new work-styles,
for instance, by promoting work-life balance and actively introducing
remote work environments, using the technologies and other expertise thatit has cultivated through its business activities. In fact, the return-to-workrate for employees who have taken a maternity leave is 100%. The
Company also has no dress code, employees can request for paid holidays
starting from one hour, and employees can take nursing leaves and childnursing leaves (five days each per year). It has been working on creatingand enhancing the working environment for everyone.
In the general employer action plan pursuant to the Act on Promotion of
Women’s Participation and Advancement in the Workplace, the Company
has set goals to raise the percentage of female employees at section-headlevels from the current 20% to 25% and raise the paid holiday acquisition
rate from 68% to 70%. Also, based on its action plan pursuant to the Act on
Advancement of Measures to Support Raising Next-Generation Children,
it is working on initiatives such as providing subsidies for the use of welfare
services related to child rearing and placing measures to encourage theacquisition of annual paid holidays.

◆ Governance
For internal control, the Company has set up an internal audit office that
directly reports to the president which is operated also in coordination withthe outside directors. It has also set up a risk control committee with thepresident as the chairperson and has created a risk control system thatallows flexible, quick, and appropriate response to risks. It does not havean executive officer system.
Its board members have all been reappointed. It has eight directors (ofwhich, three are outside directors) and four auditors (of which, three areoutside auditors, one is a tax accountant, one is a CPA, and one is alawyer). Of this total of 12, two are women.
16/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

5． History of Growth◆ Company History
A group of five certified public accountants with the late Masao
Kawashima as the leader founded the Company in 1980 upon recognizing
the importance and the promising future of computer and software
businesses in Japan. At first, they developed and sold business accounting
software for small business computers. In 1995, expecting users toeventually switch from small business computers, the Company began thedevelopment and marketing of packaged software for personal computersin full scale.

w Founded upon recognizing
the importance andpromising future ofcomputers and enterprisesystem software in Japanw With a pioneering spirit,
became the first to begin
cloud services in theindustry(11) SaaS (Software as a Service):
software in which, as a service,users can use the necessaryfunction in the necessary amountwhen needed; or the method ofproviding such service. Insteadof the user installing thesoftware, the vendor operates thesoftware and provides thenecessary function to the user via
a network.

Then, with the emergence of the PC era, the Company has achieved growth
mainly through the following four strategies: 1) creation of a greater variety
of domestic packaged software as well as their version upgrades, 2)
expansion of the maintenance service, 3) development of the cloud business,and 4) expansion of the solutions business which includes providing othercompanies’ products. Furthermore, by increasing the number of offices andcooperating with manufacturers and distributors, the Company has
developed a nationwide sales/support system that has contributed to therapid expansion of its business. It is seen as a pioneer in the conservative
industry, having been the first in the industry to begin providing cloudservices (SaaS11) in 2008.

w Changed its market listingfrom the Second to theFirst Section of the TSE in
Dec. 2014. Moved to thePrime Market in April
2022.

Regarding stock, the first public offering was made in 1994. The Company
became listed on the Second Section of the TSE in 2000 and then on theFirst Section in 2014. Upon becoming listed on the First Section of the TSE,
the Company changed its logo to the current one. In April 2022, it moved
to the TSE Prime Market.

◆ Past Transition in Financial Results

w Has been generally
increasing sales over thelong term. Profit had
temporarily weakened, butthen recovered in a Vshape. Profit expected to
decline again in FY 2023.

As described above, the Company has been expanding its business since
foundation until now as a specialist in the development and marketing ofenterprise system software and related businesses. The transition in
financial results since its first public offering is described in Figure 11. The
following is supplemental information on the financial results inchronological order.

【Figure 11】Long-Term Transition in Financial Results
Sales (left axis)

Recurring Profit (right axis)(million yen)(million yen)

16,0002,808
14,266

14,00012,00011,4391,783

10,000

1,539
1,290

1,227

1,218

8,000

6,000 660

4,000

1,396

1,565

935
4,827

3,541 4,551
3,232
3,017

5,441
4,867

5,095
4,762

5,026

9,785
9,360
1277
8,441
8,168

1,582
1,392

1,181

1,084

794
565

10,475

7,551

1,181
6,383

6,006
5,597

6,336

6,269

798

6,805

834

1,139

724

6,275

3,000

2,697
2,340

13,3082,500
13,3822,000

12,927
1,500

1,132

1,000

463
6,167
5,867

500
501 384

67
0

2,000
-158

-500

FY

19
FY 94
19
FY 95
19
FY 96
19
FY 97
19
FY 98
19
FY 99
20
FY 00
20
FY 01
20
FY 02
20
FY 03
20
FY 04
20
FY 05
20
FY 06
20
FY 07
20
FY 08
20
FY 09
20
FY 10
20
FY 11
20
FY 12
20
FY 13
20
FY 14
20
FY 15
20
FY 16
20
FY 17
20
FY 18
20
FY 19
20
FY 20
20
FY 21
FY 202
20 2
23
CE

0

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. Estimate/forecast(CE) for FY 2023 is from the Company’s plan (based on the new revenue-recognition standard).

17/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

w Record-high net profit
achieved in FY 2000 owing
to the high demand
stimulated by the year 2000
problem.

w In FY 2006, record-highoperating/recurring profits
were posted due toregulation revisions andcontribution by ERP.
(12) ERP (integrated enterprisesystem): stands for Enterprise
Resource Planning.
Management concept based on
the integration and real-timeprocessing of core businessinformation to efficiently
optimize as a whole. Provided as
IT solutions software for
integrating enterprise systems.
w Results weakened after the
Lehman shock. In FY 2014,
record-high sales of thetime were achieved (Y10billion) due to an eventdriven high demand.
w Net loss posted for two
consecutive fiscal years in
FY 2015 and FY 2016,
partially in a fallback fromthe previous event-driven
high demand.

w Positive effects from thestructural reform havestarted to be seen in FY
2016 onward.
w Growth of cloud, release of
new products, and cost
reduction have helped.
Operating margin
improved.

Issued: 7/4/2022
・Aside from certain periods such as the post-Lehman economic downturnand the decline following the spike of high demand stimulated by revisions
in tax and other regulations, the Company has generally kept increasing
sales since 1994. On the other hand, profit growth had been slow for sometime, being unable to maintain or exceed the high level of profit that it had
once achieved.
・Record-high net profit (Y937 million) was achieved in FY 2000, thanks
to the sales growth from the high demand brought by the year 2000 problem.
The consecutive decline in sales and profit from FY 2001 to FY 2002
occurred in a fallback from this high demand as well as due to the economic
downturn.

・In FY 2006, record highs were achieved for operating profit and recurring
profit (Y1,747 million and Y1,783 million, respectively). These record
highs were brought by the improvement in profitability due to the demand
stimulated by the revision of the accounting regulation for public benefit
corporations and the drastic change in regulations caused by the new
Companies Act, as well as due to the Company’s ERP12 (integrated
enterprise system) product Dream 21 (former product name).
・The sales decline for four consecutive years from FY 2007 to FY 2010, as
well as the profit decline for seven consecutive years from FY 2007 to FY
2013, was caused by decreased demand due to the post-Lehman economic
downturn and increased personnel, R&D, and sales promotion expenses, aswell as worsened profitability due to intensified competition.
・In FY 2014, record-high sales (Y10,475 million) were achieved thanks to
the high demand driven by two events: the end of Windows XP support(support ended in April 2014) and the change in consumption tax (from 5%
to 8% in April 2014). The large growth of the cloud service also contributed
to the record-high sales.
・Despite efforts to cut down on cost, a net loss was consecutively posted in
FY 2015 and FY 2016 (net loss for the year: Y207 million in FY 2015 andY93 million in FY 2016) due to the sales decline in a fallback from the highdemand stimulated by two events as described above and the postponed
revision of consumption tax to 10%.
・For many years, the Company’s gross margin and operating margin had
been gradually decreasing (Figure 12 on page 19). This was due toincreased price competition from intensified competition among packaged
software developers during the economic downturn, worsened product mix
from a rise in the percentage of other companies’ less-profitable goods, andhigher costs especially for labor costs, expenses (subcontractor costs), andR&D costs.
・However, since FY 2016, the Company has been increasing sales again
and the decline in gross margin had stopped. Operating margin bottomedout and began to gradually increase thanks to increased sales of the new
products and the cloud and cost reduction. The Company also saw positive
results from the structural reform that it had been working on for several
years, including the disposal of assets with impairment risk (real estate andsecurities) and shortened software amortization.
・The Company’s growth and recovery in financial performance after thiswere supported by sales growth of the cloud and the maintenance service
and cost reduction.

18/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)
w Turned to sales/profit
growth trend starting in FY
2016. Stable net profit. Vshaped recovery of results.
w Significant sales/profit
growth in FY 2020 due tothe high demand
stimulated by the
consumption tax revisionand the end of Windows 7
support. Posted recordhigh sales and profits.
w This fiscal year, sales andprofits are expected to
decline temporarily in a
fallback from the eventdriven high demand.
w For the past six fiscal years,
its profit results haveexceeded its initial plan. In
the past, revisions tofinancial forecasts haveoften been announced in
September or February to
April of the following year.
(13) [New] revenue-recognition
standard: “Accounting Standard
for Revenue Recognition” (ASBJ
Statement No. 29), etc., releasedby the Accounting Standards
Board of Japan (ASBJ) thatincorporates the concepts of
IFRS-15. Large companies havebeen required to apply thisstandard starting in April 2021.

Issued: 7/4/2022
・From FY 2016 to FY 2020, the Company increased sales for five fiscal
years in a row thanks to the continued growth of the cloud, the release of
new products, and strengthened sales force, as well as economic recovery.
Since FY 2017, the Company has generally been stably and continuously
making and increasing profit.
・ In FY 2020, thanks to the event-driven high demand (rise in the
consumption tax rate, end of Windows 7 support, version upgrades related
to the change in the name of the era, etc., led to an early demand of a little
over a billion yen, as estimated by the Company), sales and profit grewsignificantly, hitting their record highs.
・In a fallback from the event-driven high demand, sales and profits declined
in FY 2021. In the previous fiscal year (FY 2022), although there was anegative impact from the change in the revenue-recognition standard13,
sales and operating profit became the second highest in the Company’s
history due to the high replacement demand in response to the end of
support for the older products. In a fallback from this event-driven demand,sales and profits are expected to decline temporarily this fiscal year.
As reference, the Company's past initial forecast and actual results over theyears were compared (Figure 13). Although the actual results havesometimes greatly deviated from the initial forecast, since FY 2017, theactual profit has tended to largely exceed the initial forecast. Note that pastannouncements of revisions to financial forecasts have often been made in
September or February to April of the following year.
【Figure 12】Long-Term Transition in Gross Margin and Operating Margin
Gross Margin（％）

Operating Margin

80.0
70.0

70.1

66.4

66.8

66.1

63.2

65.8

63.0

60.3

60.0

53.5

51.0

57.0

54.5

60.3

60.7

60.1

50.0
40.0
30.0
20.0

19.5

17.8
12.7

11.1

10.0

6.9

10.6
4.7

4.6

0.5

0.0

19.8

17.4

10.9

8.2

8.5

-2.2

-10.0
FY 2009

FY 2010

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023
CE【Figure 13】Comparison of the Company’s Initial Financial Forecast and Actual Results over the Years
Consolidated
Unit: million yen
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023 (CE)Sales

Operating Profit

Recurring Profit

Net Profit Attributable to
Owners of the Parent (hereinafter "net profit")

Initial forecast Actual
Initial forecast Actual result Initial forecast
ActualInitial forecast
Actual result
5,026
1,224
1,227
695
5,634
4,762
925
1,215
935
533
5,104
5,095
1,073
1,015
1,083
589
576
5,521
5,595
1,170
1,125
1,181
653
682
6,096
6,005
1,551
1,293
1,565
769
915
6,870
6,383
1,747
1,780
1,783
1,059
327
6,860
6,336
1,533
1,550
1,582
922
852
6,790
6,274
1,321
1,325
1,365
1,391
812
644
6,800
6,268
1,294
1,117
1,360
1,181
809
680
6,500
5,867
1,141
744
1,200
797
714
436
5,908
6,166
878
686
927
724
519
411
6,505
6,805
806
468
835
501
381
75
7,025
7,550
56
354
84
383
29
181
8,641
10,474
284
1,110
311
1,138
141
604
9,198
8,168
453
-179
483
-157
283
-207
8,880
8,440
242
40
272
66
131
-93
9,731
9,360
165
432
187
463
51
160
9,876
9,785
645
807
669
834
425
441
10,486
11,439
825
1,248
842
1,277
588
906
12,783
14,266
1,478
2,781
1,499
2,808
976
1,816
13,28013,308
2,034
2,314
2,055
2,340
1,358
1,668
12,447
13,382
1,866
2,655
1,899
2,697
1,192
2,367
12,927
1,100
1,132
639
Simple average of difference (unit: %), calculated based on the longest period with available data for sales & profits(excluding this FY) →Pink highlight: 2nd Green highlight: Record
From initial forecast, upward revision : downward revision (unit: # of times) →highest record
highOperatingRecurring
Net Profit
ProfitProfitDifference from initial forecast-15.5%-23.0%
-0.2%
6.7%
-2.2%
1.3%
5.0%
4.4%
-1.5%
21.0%
19.0%
-7.1%
0.2%
-69.1%
-7.6%
2.1%
-7.6%
-7.6%
0.3%
1.9%
-20.7%-7.8%-13.7%-13.2%-15.9%-9.7%-34.8%-33.6%-38.9%
4.4%-21.9%-21.9%-20.8%
4.6%-41.9%-40.0%-80.3%
7.5%
532.1%
356.0%
524.1%
21.2%
290.8%
265.9%
328.4%-11.2% Revised down Revised down Revised down
-5.0%
-83.5%-75.7% Revised down
-3.8%
161.8%
147.6%
213.7%
-0.9%
25.1%
24.7%
3.8%
9.1%
51.3%
51.7%
54.1%
11.6%
88.2%
87.3%
86.1%
0.2%
13.8%
13.9%
22.8%
7.5%
42.3%
42.0%
98.6%
Ratio of This FY's Forecast to Last FY's Result ⇒

Sales

-0.5%
9 ： 12

72.1%
9：6

40.9%
14 ： 761.1%
10 ： 10

Operating Recurring
Net Profit
ProfitProfitYoY change in actual results-5.3%-24.4%-23.8%-23.3%
7.0%
16.0%
15.8%
8.1%
9.8%
9.0%
9.0%
18.4%
7.3%
32.6%
32.5%
34.2%
6.3%
12.6%
13.9%
-64.3%-0.7%-12.2%-11.3%
160.6%-1.0%-13.6%-12.1%-24.4%-0.1%-15.7%-15.1%
5.6%-6.4%-33.4%-32.5%-35.9%
5.1%
-7.8%
-9.2%
-5.7%
10.4%
-31.8%-30.8%-81.8%
10.9%-24.4%-23.6%
141.3%
38.7%
213.6%
197.1%
233.7%-22.0%
To loss
To loss
To loss
3.3% To profit To profit To profit
10.9%
980.0%
601.5%-272.0%
4.5%
86.8%
80.1%
175.6%
16.9%
54.6%
53.1%
105.4%
24.7%
122.8%
119.9%
100.4%-6.7%-16.8%-16.7%
-8.1%
0.6%
14.7%
15.3%
41.9%
-3.4%
-58.6%-58.0%-73.0%
Sales

5.4%

71.7%

50.7%

26.8%

↑ Simple average of each period (excluding
this FY)(Ref) Figures 12 and 13 were prepared by Alpha-Win Research Dept. based on the financial results summary. The FY 202３ forecasts/estimates (CE) are from theCompany’s plan. (Note) The new revenue-recognition standard has been applied starting in FY 2022 (CE).

19/41This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

6． Business Environment◆ Trends of the Software Market
w Decreasing number ofsmall/medium-sizedcompanies (its current andpotential users) in Japan,
but the enterprise system
software market size is
expected to steadily growover the medium to longterm.

w Although there was aperiod of relief regarding
the worsening businessenvironment ofsmall/medium-sized andmid-tier companies, it has
started to worsen again.

Number of Small/Medium-Sized Companies (potential users) in JapanThe number of small/medium-sized companies, or the Company’s main
potential customers, has been declining since they have been closing theirbusinesses due to the decreasing and aging population of Japan. On theother hand, companies and organizations have been working on rebuilding
or strengthening their enterprise systems, as they have been faced byincreasingly serious staff shortage and have been working on improving
operational efficiency and financial performance. Although the number ofsmall/medium-sized companies will likely continue to decrease, we predictthat the size of the enterprise system software market will steadily increaseover the medium to long term as the demand for software to streamline
business operations increases.

Current Situation: BOJ Tankan
According to the Bank of Japan Tankan for March 2022, amount ofsoftware investment in 2022 (plan) by small/medium-sized companies (allindustries) is planned to rise by +5.6% YoY (of which, +23.6% formanufacturing and -1.4% for non-manufacturing), with growth especially
expected for the manufacturing industries. Mid-tier companies are also
showing an eager attitude toward software investment, with an increase of+17.5% (+16.3% and +17.8%, respectively) expected. Regarding thesurvey on business sentiment among small/medium-sized companies, the“recent” sentiment declined from -3 in the December 2021 survey to -6, and“outlook” also declined from -4 and -8. Although there was a period ofrelief from the worsening business sentiment, the sentiment is beginning tosomewhat worsen again (similar for mid-tier companies).
Market Size and Growth Potential
According to the “WHITE PAPER Information and Communications inJapan” by the Ministry of Internal Affairs and Communications, the size ofthe packaged software market (excluding game software, embedded
software, etc.) in 2017 was approximately Y1.1 trillion. With the increasing
digitalization and shift to online activities, the B2B market seems to be
gradually expanding (our estimate for the annual growth rate is +4 to +5%).
We estimate the current size of the enterprise system software market in
Japan specifically related to the Company’s business to be approx. Y500
billion and the size of the ERP market to be approx. Y100 billion. Annual
growth rate is predicted to be about 3% and 10%, respectively, over the
medium term.

w Market potential of cloudbased enterprise system
software in Japan is stilllarge.

In the U.S., the cloud-based enterprise system software market is said to be
several years ahead of Japan. The market penetration rate in Japan is about½ to ⅓ compared to the US (ref: “WHITE PAPER Information andCommunications in Japan” by the Ministry of Internal Affairs andCommunications, etc.). Therefore, there seems to be a large growthpotential. According to this “WHITE PAPER,” the penetration rate of thecloud in Japan has grown from 2017 to 2020 from 26% ⇒ 38% for“payroll / financial accounting / HR” and from 6-8% ⇒ still at a low rateof about 10% each for “production management / logistics management /store management,” “purchasing,” and “sales on order.” The cloud-based
enterprise system software market may grow at a high rate of about 20%
20/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
per year over the medium term as it replaces a part of the outsourced systemdevelopment or packaged software (on-premises) market.

◆Comparison with Competitors
w In the industry, companies
are mostly able to exist
alongside one another bytaking strong positions
that are segregated by theirusers’ sizes and software
function.

Positions and Main Players of the Industry
Figure 14 is an overview of the various positions and main players of theindustry, categorized by customer type. The players in the industry aremostly being able to exist alongside one another by taking strong positions
in different niches, segregated by the size of the companies/organizations
that are their users or by the operation targeted by their software.
【Figure 14】Target Customers and Main Players of the Enterprise
System Software Market(Ref) Excerpt from past financial results briefing materials, partially edited by AlphaWin Research Dept.

w OBC, MJS, Yayoi, and
OHKEN are its rivals.

The Company has different rivals for each type of operation targeted by its
software. Regarding its key accounting software, its rivals among listedcompanies are thought to be Obic Business Consultants (OBC: 4733),
directly, and Miroku Jyoho Service (MJS: 9928), indirectly.
OBC is the greatest rival since it has almost the same product lineup andbusiness model as the Company. Among unlisted companies, Yayoi Co.,
Ltd. (in the fiscal year ended September 2021, sales were Y21,193 million,
recurring profit was Y4,937 million, and the number of users were a little
over 2.5 million) that was purchased by Kohlberg Kravis Roberts & Co.
L.P. (“KRR”) from ORIX Corporation (8591; listed on TSE Prime;
headquartered in Minatoku, Tokyo; Makoto Inoue as president), OHKEN(independent company), and OSK (subsidiary of OTSUKA
CORPORATION) are its direct competitors.

w The Company provides
high-quality products andservices at reasonable
prices.
w Its key product, theaccounting software, has
the third largest share in
the market.

The Company is characterized by its high-quality but reasonably priced
products and services.
The accounting software market size is approximately Y200 billion. The
market is reaching maturity and its size has not largely changed in recent
years. In this market, the Company is estimated to be third from the top(about 10% of the total market share). It also seems to have a similar levelof market share and position with its payroll and HR software.

21/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

w In addition to OBC, also
competing with Money
Forward, freee, and Yayoi
in a part of the cloud-based
accounting software
business.

In the cloud accounting market, Money Forward (TSE Prime 3994;
providing cloud services such as household accounting application for
individuals and accounting software for companies) and freee (TSE Growth4478; providing ERP services or cloud accounting software for small
businesses) are also its competitors among listed companies. Among
unlisted companies, it also competes with Yayoi. All of these companies
target one-person businesses and small companies such as small/mediumsized companies and SOHOs. They directly compete with the Company inspecific areas.

w Improvements in margins
and capital efficiency

Profitability Comparison of the Three Similar, Major Listed
Companies
A comparison of the long-term transition in gross margin and operating
margin of the three major listed companies (the Company, OBC, and MJS)
is shown in Figures 15 and 16. Compared to the Company, both margins
are stable for OBC and MJS. This is presumably due to the difference inthe sales composition (the percentage of support service sales and cloudsales) and the economies of scale (the sales of OBC and MJS are about 2.6x
and 2.7x greater than the Company, respectively, and similarly theiroperating profit is about 6.1x and 1.8x greater, respectively, according tolast fiscal year’s results).

【Figure 15】Long-Term Transition in the
Gross Margin of Three Major Listed
Companies (PCA, OBC, and MJS)
PCA

（％）

OBC

MJS

90.0
83.4

85.0

84.2

84.0

84.4

84.7

83.7

84.8

84.3

84.4

84.0

83.8

82.5

83.9

83.5

79.0

80.0
75.0

70.1

70.0

66.4

65.0
60.0
59.5

55.0

66.8

66.1

65.9

65.0

61.8

64.4

64.0

63.0

63.2

65.2

66.3

66.3

65.8

63.6

62.1

60.9

60.3
62.3

57.0
60.3

54.5

53.5

60.1

57.8

61.8

Both competitors used to have a lower subscription rate for the maintenancesupport service but succeeded in raising this rate strategically, resulting ina greater earning power. However, through its focus on the subscription
business, the Company’s profit margins have also been improving andbecoming stable in recent years excluding the period of fallback from theevent-driven high demand.

60.7

51.0

50.0
45.0

Similarly, the transition in the Company’s ROA and ROE, shown in Figure
17, indicates that its capital efficiency has also been significantly improving.
In FY 2022, the Company has not been largely different from its
competitors, with the ROA and ROE being 10.0% and 14.4% for PCA,
10.4% and 8.9% for OBC, and 11.0% and 21.4% for MJS, respectively. As
reference, the overview of the three companies is compared in Figure 18 on
page 23.

40.0
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
CE(Ref) Figures 15-18 were prepared by Alpha-Win Research Dept. based on the
securities reports. Estimates/forecasts (E) are from the companies’ business plans.

【Figure 16】Long-Term Transition in the Operating
Margin of Three Major Listed Companies(PCA, OBC, and MJS)
PCA

（％）

50.0

46.7

45.6

40.9

43.4

45.0

43.2

OBC

41.7

【Figure 17】Transition in the Company’s ROA and ROE
（％）

42.7

44.4
41.4

43.2

44.2

47.1

4.3

12.7

11.1

10.3

10.9

10.8

11.3

12.9

6.9

0.0

16.3

16.5
14.7

8.2

6.2
8.0

15.6

13.3

10.9

4.6

10.6

17.4

6.0

19.8
12.4

4.0

8.5

2.0

FY 2010

FY 2011

FY 2012FY 2013

6.3

5.2

FY 2014

FY 2015

4.8
3.5

4.0

4.0

0.7

2.6

5.2

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023
CE

FY
2011

FY
2012

FY
2013

6.8

2.9

1.5

-1.0
-1.8

FY
2010

9.7

3.9

-4.0
FY
2009

10.0

0.4

1.7

-2.0

-10.0

7.8

7.2
5.8

0.0
-2.2

FY 2009

13.0
8.8

13.1

0.5

4.7

11.4

12.0

8.0
19.5

10.0

14.3

45.7

28.0

17.8

14.4

14.0

10.0

20.0

ROE

MJS

40.0

30.0

ROA

16.0

FY
2014

FY
2015

-0.9
FY
2016

FY
2017

FY
2018

FY
2019

FY
2020

FY
2021

＊ROA is the ratio of recurring profit to total assets.

22/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

FY
2022

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022【Figure 18】Summary of the Comparison of the Three Competing Companies
Company Name

PCA

Obic Business Consultants （OBC）

Miroku Jyoho Service （MJS）

Code

9629

4733

9928

Development and sales of packaged enterprisesystem for mainly small/medium-sized companies.
Second-tier in the industry. Taking a lead in cloudservices. No. 1 in industry in sales toward publicbenefit corporations.

Characteristics

Development and sales of packaged enterprisesystem for small/medium-sized companies. Became Top market share (25%) in software for
top-ranking in the industry from rapid growth in accounting firms. Recently, also strengthening
the early days of the OS W95, NT, etc. Highly
development/sales of software for mid-tier andprofitable structure; largest player in the industry small/medium-sized companies. Largest player by
by profit. No. 1 in packaged software for financial sales among the three companies.
accounting, payroll, HR, and labor management.

FoundedAug. 1980

Dec. 1980

Jan. 1977

Date Listed on the Market

Mar. 1994

Oct. 1999

Aug. 1992

Sales Categories/Breakdown (FY 2022)

Sales Method

Number of Bases・ Cloud Service 41.6%
・ Maintenance Service 24.8%
・ Products 22.1%
・ Merchandise 3.3%・ Solutions 8.2%

・Products 53.2%(Of which, solution technologies 44.1%)(Of which, related products 9.1%)
・Services 39.2%

・Revenue from services 35.5% (general maintenance)
・Sales from system installation contract 55.3%(Software 33.9%)(Useware 12.9%)(Hardware 8.5%)
・Other 9.2%

20% direct sales; 80% indirect sales throughdealers/makers

Nearly 100% indirect sales through dealers,makers, etc.

Nearly 100% direct sales; for ordinary
companies, mostly direct sales through referrals
by accounting firms

13 offices; 2,000 sales partners

11 offices with customer service personnel; 3,000
sales partners

31 sales/support offices throughout Japan;
accounting firms acting as sales partners(referrals)

Number of Active Users (approx.)

200,000 companies

200,000 companies

8,400 accounting firms; 170,000 ordinary
companies

Percentage of Maintenance Service Subscription among Total
Number of Active Users

Approx. 70%

Approx. 80%

Nearly 100%

Management Goals

Medium-Term Management Plan 2024 (FY 2023 - FY
2025)
・Sales ≥ Y15 bil (of which, subscription-based sales ≥Y9.5 bil)・Consolidated O.P. ≥Y2.5 bil
・Consolidated O.P. margin ≥16%
ROE ≥10%, DOE ≥2.5%, dividend payout ratio 30%

Undisclosed mid-term targets. Focused on profit
indicators. Maintaining or increasing O.P. margin and
R.P. margin while increasing sales to continue to growas a highly profitable company. In FY 2023, it aims toshift all of its services to subscriptions: 1) responding to
DX and law revision needs, 2) DX-Suite VERP SaaSmodel, 3) shift to subscriptoin and DX based on sales
strategy as its priority measure

Newly created the medium-term management plan
Vision 2025 (FY 2022 - FY 2026). In the final fiscal
year, it aims to achieve sales of Y55 bil (CAGR: 10.7%),
R.P. of Y12.5 bil (similarly, 27.2%), record-high sales
and R.P., and ROE of more than 20%.
Existing ERP biz: start digital marketing, shift to cloudand subscription models, secure a stable source ofrevenue, and achieve continuous growth.
New biz: Become No.1 in Japan as integrated DX
platform through which anyone can easily achieve DX
to adapt to the digital, non-face-to-face era.

Strengthen “core competence.” Focused on the following:・ "No. 1 in accounting firm network" strategy
・ Enterprise operation services
・ "Comprehensive solution business for mid-tier・Establish earnings base for the core businesses
・ Focus on mid-tier and small/mid-sized companies(strengthen & promote sales of PCA Cloud and strengthenand small/mid-sized companies" strategy
・ Shift existing customers to cloud using IT
on-premises biz)・ Integrated DX platform strategy (new biz area)
Introduction Subsidies
・Create new business opportunities
・ Shift to cloud/subscription biz model・ Microsoft technology
・Strengthen business foundation to become structurally
・ Promote individual growth of subsidiaries
・ Partnership strategy (build a strong ecosystem withhighly profitablethrough group-wide coordination enhancement
OBC Business Parnters, OBC Accountant Partners, and・Strengthen monozukuri (creation of things) by・ Build HR and management foundation toConnect Partners)
anticipating needs
accelerate strategy execution
・ Branding strategy
・Secure/train employees (HR)Business Strategy and Priority Measures

12,927

Sales (million yen) CE for FY 2023

・1 module for accounting firms
・6 modules for ordinary companies(each module contains software for several
operation types)

・12 types for the flagship Bugyo series・Total of approx. 60-80 types by product name,including other software
・Development focused on Microsoft platform for bothon-premises and cloud・Approx. 26 types(by name of product; includes options)・Originally developed with in-house platform

Main Types of Enterprise System Software (approx.)

37,00032,150Gross Margin (%) FY 2023 Est.

65.8

83.9

61.8

Operating Profit (million yen) Est.

1,100

16,9105,050

Operating Margin (%) Est.

8.5

45.7

15.7

EPS (CE) FY 2023, YoY (%)

-73.0

4.1

-9.1

DOE (%) Result

2.9

4.0

6.0

Past 10 Years’ Sales Growth Rate (FY 2022’s result div. by FY
2012's result: %)

196.6

203.0

186.8

O.P. Growth Rate (same condition as above)

567.3

209.3

236.7

Equity Ratio (%) Result

59.7

79.5

46.5

# of Full-Time Employees in the Group: Actual #

604

908

1,935

Sales Per Full-Time Employee (million yen / person)

21.4

40.7

16.6

O.P. Per Full-Time Employee (million yen / person)

1.8

18.6

2.6

ROE (%) Result for FY 2022

A=B×C×D

14.4

8.9

21.4

B

17.7

34.0

12.3

0.6

0.2

0.8

1.3

1.2

2.1

E=F×G

12.6

10.4

11.0

F

20.2

49.4

13.0

Total Asset Turnover Ratio (sales / ave. total asset) G

0.6

0.2

0.8

N.P. Margin (N.P. / sales : %)Total Asset Turnover Ratio (sales / ave. total asset) C
Financial Leverage (ave. total asset / ave. owner's equity)
ROA (R.P. / total asset : %)R.P. Margin (%) Result

D

Italics show each company’s estimates (CE) for FY 2023. Others are actual results of FY 2022. Orange highlights indicate the highest value among the three companies.

23/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

7．Last Fiscal Year’s Results and This Fiscal

Year’s Forecast◆ Results for FY 2022 (last fiscal year)
Overview
Full-year consolidated results for FY 2022 were as follows: sales ofY13,382 million (+0.6% YoY), operating profit of Y2,655 million (+14.7%
YoY), recurring profit of Y2,697 million (+15.2% YoY), and net profit
attributable to owners of parent of Y2,367 million (+41.9% YoY;
hereinafter, “net profit”). Sales increased slightly and profits increased
significantly (Figure 19).

w Last FY, sales grew slightly
and profits increased atdouble-digit rates.

w Both sales and operating
profit were at high levels –the second highest in the
Company’s history.
Extraordinary income wasrecorded, and record-highnet profit was posted.

In FY 2020, high demand stimulated by two events (early demand in
response to the revision of the consumption tax and the end of support for
Windows 7) had led to the consecutive achievement of record-high sales
and profits. Last fiscal year, sales, operating profit, and recurring profit
were the second highest in the Company’s history following theseachievements of FY 2020. Due to the gain on sales of securities recorded
under extraordinary income, net profit alone hit a record high.

【Figure 19】Financial Results for FY 2022

(Unit: million yen, %)Full-Year Results

FY 2021

FY 2022

Difference% Change

FY 2022

Result - Plan

Result/Plan

FY 2022

Result-Forecast

Result/Forecast

FY 2022

Unit: million yen

Results

Results

YoY: million yen

YoY: %

Company Forecast

Diff: million
yen

Diff: %

Alpha-Win
Forecast

Diff: million yen

Diff: %

Initial Company
Forecast

13,515
8,901
65.9
6,315
46.7
2,586
19.1
2,310
17.1

-133
-92
-0.0
-162
-0.7
69
0.7
57
0.6

Consolidated Sales
Gross Profit
Gross Margin (%)
SG&A Expenses
SG&A Expenses Ratio (%)
Operating Profit
Operating Margin (%)
Net Profit
Net Margin (%)

13,308
8,001
60.1
5,686
42.7
2,314
17.4
1,668
12.5

13,382
8,809
65.8
6,153
46.0
2,655
19.8
2,367
17.7

74
808
5.7
467
3.3
341
2.5
699
5.2

0.6
10.1
8.2
14.7
41.9

-1.0
-1.0
-2.6
2.7
2.5

13,760
9,013
65.5
6,320
45.9
2,700
19.6
2,380
17.3

-378
-204
0.3
-167
0.0
-45
0.2
-13
0.4

-2.7
-2.3
-2.6
-1.7
-0.5

12,447
7,690
61.8
5,824
46.8
1,866
15.0
1,192
9.6

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. The Company’s plan and Alpha-Win’s forecasts are the most recent forecasts.

w When the negative effectsof the transition to the new
accounting standard arefactored in, sales andprofits essentially become
record-high values.

Impact of the Change in the Accounting Standard
In the previous fiscal year, the revenue-recognition standard had beenchanged. As a result, compared to the previous standard, sales weredecreased by Y1,833 million, and operating profit, recurring profit, andprofit before tax were each decreased by Y202 million. When these effects
are factored in, sales become Y15,213 million (+14.3% YoY), operating
profit becomes Y2,857 million (+23.5% YoY), and recurring profit
becomes Y2,899 million (+23.9% YoY), indicating that the Company has
essentially achieved record-high sales and profits.
This strong performance was due to the replacement demand prior to theend of support for the PCA X series (December 2021) which had brought a
greater-than-expected demand mainly in the first half. Also, the sales of the
products (DX series) were strong, and sales of the cloud had continued to
grow at a high rate.

w Both sales and profits cameout be within the expected
range.

Comparison with Forecast
The Company had revised its initial forecast upward in October 2021,
which were mostly achieved in the results. Compared to the Company’s
revised forecast, sales were slightly lower by Y133 million (-1.0%
compared to the plan), while operating profit was Y69 million higher(similarly, +2.7%).
24/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
Compared to Alpha-Win’s forecasts which were higher than the Company's
forecasts, sales were Y378 million lower (-2.73% compared to our forecast)and operating profit was Y45 million lower (similarly, -1.7%). The
difference from our forecast mainly seems to be due to the slightly sluggish
sales in Q4 in a fallback from the event-driven high demand and due toincreased promotion and personnel expenses.

w Costs increased in Q4 andprofit became slightly
lower than Alpha-Win’s
forecast.

Sales
In the previous fiscal year (FY 2022), the Company estimated that there
was a replacement demand (event-driven high demand) of Y1.2 billion in
the first half and Y500 million in the second half in response to the end of
support for the X series. This demand greatly contributed to its businessresults.

w Event-driven high demand
for the products mainly
occurred in the first halfand contributed largely tothe financial performance.

Analyzing the factors that increased or decreased sales from FY 2021 to FY
2022 by sales category, sales decreased by -Y2,124 million for solutions, Y235 million for maintenance, and -Y46 million for merchandise. On theother hand, sales of products increased by +Y969 million and cloud’s sales
increased significantly by +Y1,510 million, resulting in a slight increase in
overall sales (+Y74 million).
In addition, regarding the factors that increased sales of PCA alone, salesof products increased by +Y826 million and sales of cloud increased by+Y621 million, totaling +Y1,447 million. Similarly, for Xronos, sales
increased by +Y142 million and +Y441 million, respectively, totaling+Y583 million (Figure 20). Both companies’ financial performance had
been solid.
w With the change in theaccounting standard, salesof solutions declined
significantly but wereoffset by the growth of thecloud.

By sales category, the change in the accounting standard caused sales todecrease by -Y1,610 million for solutions, -Y202 million for maintenance,and -Y21 million for products. When corrected for this impact, the decreasein sales actually becomes -Y514 million (-15.9% YoY) for solutions and Y34 million (-1.0% YoY) for maintenance, while the increase in sales of
product becomes +Y990 million (+49.9% YoY). Aside from solutions, theamount of sales decline is small.

【Figure 20】Factors that Increased/Decreased Sales by Category in FY 2022 (last fiscal year)(million yen)

PCA -2,460 (of which, impact of change inaccounting standard: -1,610)
Xronos +335

16,500

Increase

16,000Decrease

1,510

15,50015,000969

14,50014,00013,500−46
13.308-869−235

13,00012,50012,000FY 2021

PCA+826

Xronos+142

Products

13,382
PCA
XronosOther

Merchandise

Main tenance

+621
+441
-52

Cloud

−2,124

Solutions andOther

FY 2022(Ref) Prepared by Alpha-Win Research Dept. from the financial results summary

25/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)w Last FY, there was a recordhigh net increase in thenumber of corporate usersof the cloud.

Issued: 7/4/2022
Cloud
The number of corporate users of PCA Cloud reached 10,000 on 1/11/2018.
The number has then been increasing steadily, from 12,070 at the end of
March 2019, 14,327 at the end of March 2020 (+2,257), 16,444 at of theend of March 2021 (+2,117), and 19,152 at the end of March 2022 (+2,708,
the largest net increase ever) (Figure 8 shown previously on page 12).
Semi-annual comparison indicates that the net increase in the number ofusers had once temporarily slowed down due to the impact of COVID-19,
but during the past 12 months, there has been a net increase in the numberof corporate users at a net growth rate of about +226 companies per monthon a simple average. This pace is greater than the previous fiscal year
(approx. +176 companies per month). Note that about 40% of the total
number of new contracts are with new customers.
The net growth speed has not slowed down as this fiscal year began, andthe Company hopes to maintain the net growth in corporate customers at
more than 2,000 companies per year for the meanwhile.

w Rate of net increase hasremained high this fiscal
year too.
w Sales growth rate of thecloud accelerated to greaterthan 30% again partly due
to the event-driven highdemand.
w Sales of maintenancedeclined, but the
proportion of subscription
businesses’ sales has
increased to essentiallyabout 60%.

w Xronos’ performance has
been solid. Has
presumably contributed tothe consolidated results.

w Operating margin grew by
3.1 basis points due toimproved gross margin and
SG&A expenses ratio.

As a result, the cloud’s sales have been expanding from Y1,496 million in
FY 2017 → Y1,854 million in FY 2018 (+358 million yen or +23.9% YoY)
→ Y2,452 million in FY 2019 (+598 million yen or +32.3% YoY) →Y3,374 million in FY 2020 (+922 million yen or +37.6% YoY) → Y4,057
million in FY 2021 (+683 million yen or + 20.2%) → Y5,568 million in FY
2022 (+1,511 million yen or + 37.2%). The cloud business also partiallyexperienced an event-driven high demand in the previous fiscal year and its
amount and rate of sales growth has somewhat increased.
Subscription-Based Business
The proportion of subscription-based revenue (combined sales of themaintenance service and the cloud), which is one of the Company’s key
performance indicators, increased further from 57.2% in FY 2021 to 66.4%(on the surface level) or 59.7% (adjusted for the change in the revenuerecognition standard) in FY 2022. This was because the sales of cloudincreased while the sales of solutions declined.

XronosAlthough Xronos’s standalone results are not disclosed, this subsidiary’s
work management system experienced a high growth rate in the previous
fiscal year thanks to the tailwind from the work-style reform. It is at least
known that its product’s sales had increased by +Y142 million YoY,
cloud’s sales had increased by +Y441 million, and solutions also increased
by +Y335 million in a total sales growth of Y918 million. This is about
37% of the entire PCA Group’s net sales growth (Y2,479 million).
ProfitFactors that contributed to an increase or decrease in consolidated operating
profit in the previous fiscal year are shown in Figure 21 on page 27. Due tothe decrease in the cost of purchase caused by fewer amount of purchasesfrom other companies and the decrease in maintenance expense, theincrease in SG&A expenses such as increased personnel expense was offset,
resulting in a profit growth. The gross margin improved from 60.1% to65.8%, and operating margin also improved from 17.4% to 19.8% thanks
to the decreased SG&A expenses ratio.

26/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

w In the first half, the impactof the sales growth wassignificant, and operating
profit grew by about 3x
YoY.

w In the second half, themomentum somewhat
declined, and sales andprofits dropped. Expenses
increased in Q4, and the
SG&A expenses increased
sharply. Operating profit
declined by 6.7 basis
points.

w Gain on sales of shares wasrecorded under nonoperating income.
Dreamhop’s goodwill wasamortized in a lump sum
under extraordinary losses.

Looking at the first and the second half, in the first half, a significant
increase in profit was achieved due to the increase in the sales of the inhouse products with high profit margins and the cloud service. The
decreased cost of sales contributed to profit growth, and although sales
promotion and advertising expenses increased (+Y67 million YoY) andother SG&A expenses also increased (+Y74 million YoY), the R&D
expenses decreased (-Y115 million YoY) and therefore the SG&A
expenses increased only slightly. The sales growth (+Y628 million in total)
had a large effect in increasing profit, and operating profit increased by
Y814 million YoY in a significant increase of +186.9%.
On the other hand, in the second half, cloud’s sales continued to grow YoY,
but solution’s sales declined due to the change in the accounting standard
and overall sales also declined. However, the gross margin rose, and thegross profit stayed mostly the same at Y4,302 million. Since the promotion
expense (advertising expense) was increased by Y200 million and expenses
such as bonuses were increased by Y220 million, the SG&A expenses
increased by 14.9% in the second half to Y3,400 million. As a result, the
SG&A expenses ratio rose by 11.2 basis points, and the operating margin
fell from 18.8% to 12.1%. The operating profit fell from Y1,375 million toY902 million, decreasing by Y473 million or 34.4%. If the two above
expenses had not been incurred, the profit decline would have been kept at
about Y122 million (-8.9%).
For the full year, although there was no significant non-operating income
or loss posted, the Company had sold shares of a listed company and an
extraordinary income of Y1,111 million was recorded.
The excess earning power of the acquired company Dreamhop was also
reviewed. Although its goodwill had been planned to be amortized overseven years, the remaining balance of Y174 million was recorded under
extraordinary losses in a lump sum as impairment loss.

【Figure 21】Factors that Increased/Decreased Operating Profit in FY 2022 (last FY)(millionyen)

Operating
ProfitSales

Cost of Sales

5,000

Increase

4,500

Operating
ProfitSG&A Expenses

Decrease

4,000
3,500
3,000
2,500

2,314

73

12

331

181

71
−203

2,655
−124

2,000
1,500
1,000
500
0
A
FY 2021A
Increase
in
sales

A
Decreaseinsoftwareamortization

A in cost of
Decreasepurchase (royalties
paid, etc.)

A
Decreaseinmaintenanceexpense(Ref) Prepared by Alpha-Win Research Dept. from the financial results
briefing materials.

A
Increase inpersonnel
expenseA
Decreasein
R&D expense

A in other
Increase
SG&A expenses

FYA2022

27/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022◆ PCA’s Financial Forecast for FY 2023 (this fiscal year)
w Expecting sales and profit
declines this fiscal year.

w First-half forecasts notdisclosed.

Summary of the Full-Year Forecast
The Company has announced its full-year financial forecast for FY 2023
(this fiscal year). It is expecting a slight sales decline and significant profit
drops: sales of Y12,927 million (-3.4% YoY), operating profit of Y1,100
million (-58.6% YoY), recurring profit of Y1,132 million (-58.0% YoY),
and net profit of Y639 million (-73.0%) (Figure 22).
In addition, to achieve the final profit goal, the Company may either
promote or suppress expenditure depending on changes in the internal andexternal conditions. Since this makes predictions difficult, the Company
has not announced its consolidated financial forecast for the first half.

【Figure 22】Financial Forecast for This Fiscal Year (the Company’s plan)
Consolidated(unit: million yen)
Sales
Products
Merchandise

Sales byCategory

Maintenance Service
Cloud Service
Other Operating Revenue

Gross Profit
Gross Margin

SG&A Expenses
SG&A Expenses Ratio

Operating Profit
O.P. Margin

Recurring Profit
R.P. Margin
Net Profit Attributable to Owners of the Parent

N.P. Margin
Annual Dividend Per Share (yen)FY 2023: Company Forecast

FY 2022
New RevenueRecognition Standard

New RevenueRecognition Standard

13,382
2,954
439
3,316
5,568
1,103
8,809
65.8%
6,153
46.0%
2,655
19.8%
2,697
20.2%
2,367
17.7%
24.0

12,927
1,399
402
3,257
6,115
1,752
7,845
60.7%
6,744
52.2%
1,100
8.5%
1,132
8.8%
639
4.9%
13.0

YoY: simple diff. inamount / diff.

-455-1,555
-37
-59
547
649
-964
-5.1%
591
6.2%
-1,555-11.3%-1,565-11.4%-1,728-12.7%-11.0

YoY: simple %change-3.4%-52.6%
-8.4%
-1.8%
9.8%
58.8%
-10.9%
9.6%-58.6%-58.0%-73.0%(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary

w With no more event-driven
high demand for the
products, a significant sales
drop is expected. On theother hand, the cloud isexpected to continue togrow, and solutions are
expected to recover.

Summary of the Full-Year Forecast (sales)
Although there will be no “gap down” from the change in the revenuerecognition standard this fiscal year, regarding sales categories, theproduct’s sales are expected to become halved since there will be no eventdriven high demand for the products like last fiscal year (Figure 23 on page29). In addition, due to structural changes, net decline is expected formaintenance (shift to the cloud) and merchandise (shift to paperless
operation and digitalization) at the same pace as before.
On the other hand, sales of other companies' products are expected torecover this fiscal year, and sales of solutions are expected to increase.
The Company will continue to focus on the cloud and its sales are expected
to continue to grow, planning to achieve sales of Y6,115 million at a sales
growth rate of 9.8%.

28/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022【Figure 23】Change in Sales and This Fiscal Year’s
Forecasted Sales Breakdown by Category (unit:
million yen, %)Cloud

Maintenance

Solutions

Merchandise

Products

16,000【Figure 24】Factors that Are Expected to Increase/Decrease
Operating Profit in FY 2023 (this fiscal year) (theCompany’s plan)(million yen)Previous
AccountingStandard

New AccountingStandard

15,2134,000
YoY Change% of Total

3,500

14,266
14,00013,30810,000

9,360
8,440

8,000

854
1,639

955
1,740

1,954
988

3,098

563

2,954

2,713

439

12,927
1,399

47.3％

402

91.6％

1,752

105.8％

3,518

3,316

3,257

98.2％

3,552
3,124

1,152

1,496

1,854

FY 2016

FY 2017

FY 2018

109.8％
5,568

2,452
FY 2019

3,374

5,568

6,115

OperatingprofitCost of sales

OperatingprofitSG&A expenses

3,000

2,655
2,500

0

10

-454

2,000

-498

-129

Increase

1,100

-207

1,000

-253

Decrease

500

4,057

0
FY 12022
ResultFY 2020

Sales

1,500
72.5%

3,471
3,109

27.5%

1,103

3,227

2,781

2,000

0

3,701

439

485

2,516

1,878

4,000
3,026

552

1,985

97.1％

SubscriptionBased-Revenue

6,000

2,069
1,767

9,785

3,166

13,382

One-Time-PaymentBased Revenue

11,43912,0002,975

FY 2021

FY 2022

FY 2022

FY 2023CE

2 in
Decrease
sales

3
Decreasein Decrease4in cost ofpurchase
software(royalties paid,
amortizationetc.)

5Increaseinmaintenanceexpense6
Increaseinpersonnel
expense7
Increasein
R&D expense

8
Increaseinother SG&A
expenses

FY92023
Plan(Ref) Figures 23 and 24 were modified and prepared by Alpha-Win Research Dept. based on the financial results briefing and financial results summary. (CE)is the Company’s forecast.
(Note) In Figure 23, since the accounting standard for the posting of sales as merchandise or solutions had been partially changed in FY 2020, adjustments
were retroactively made for FY 2019 according to the new standard. However, for the two categories, there is no continuity with the years before FY 2019.
Also, starting in FY 2022, the new revenue-recognition standard, etc., have been applied, and the Company has been announcing its sales forecast based on
both the previous and the new standard. “% of Total” is for the forecast for FY 2023 based on the new revenue standard.

w In addition to the sales
drop, there are expected to
be increases inmaintenance, personnel,
and R&D expenses.
Therefore, profit decline is
expected.
w Will actively invest in thedevelopment of PCA Hub.

Summary of the Full-Year Forecast (profit)
Figure 24 shows the analysis of the factors that are expected to increase or
decrease consolidated operating profit (YoY) in the current fiscal year. In
addition to the decline in product sales, the Company plans to actively makeinvestments to strengthen its development capabilities for the next stage of
growth.
The Company believes that in order to strengthen and develop its
subscription models and new services, it must increase the R&D expense
and the number of development staff and subcontractors even if sales are
expected to decline. Indeed, this fiscal year, it plans to spend Y700 million
to increase the development expenses, especially for the PCA Hub series(R&D expense +Y207 million and maintenance expense +Y498 million).
In the current fiscal year, sales are expected to decrease, development
expenses are planned to be increased as described above, and personnel andother expenses are expected to increase. These will cause profit to decrease.
Costs will also increase as the Company makes the necessary investments
for future growth, which had been suppressed due to the COVID-19 crisis,
and as expenses return to full scale this fiscal year (seminars and events).
SG&A expenses are expected to increase by Y591 million YoY (+9.6%) toY6,744 million, and the SG&A expenses ratio is planned to rise from 46.0%
in the previous fiscal year to 52.2% in the current fiscal year.

w Gross margin is expected todecrease, and SG&A
expenses ratio is expected toincrease. Operating marginis planned to decline by 11basis points.

The gross margin is estimated to drop significantly from 65.8% in theprevious fiscal year to 60.7%. With the rise in the SG&A expenses ratio,
too, the operating margin is expected to drop significantly from 19.8% to
8.5%. No major extraordinary income or losses are expected this fiscal year.

29/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022◆ Alpha-Win Research Dept.’s Financial Forecast for FY
2023 (This fiscal year)

w This fiscal year, sales andprofit declines areinevitable due to thefallback from the eventdriven demand andupfront investments.

Overview
We revised our previous forecast for this fiscal year (forecast made in thereport issued on January 31, 2022) based on the company plan and thecurrent situation (Figure 25).

w Estimates used in
predicting cloud’s sales areon the conservative side.

This fiscal year, a temporary decrease in sales and profits seems inevitablesince upfront investments will increase as the Company invests indevelopment for the next stage of growth and increases the number of
employees, and also due to a fallback from last fiscal year’s event-driven
high demand. However, since the Company's estimates for sales and profit
margins seem somewhat conservative, we believe that the results may
possibly exceed its plan.

w This fiscal year’s results
may possibly exceed theCompany’s plan.

【Figure 25】Factors Predicted to Increase or Decrease Operating Profit in FY 2023 (this fiscal year) (Alpha-Win’s forecast)
Consolidated(unit: million yen)
New Revenue-Recognition Standard

Sales
Products
Merchandise

Sales byCategory

Maintenance Service
Cloud Service
Other Operating Revenue

Gross Profit
Gross Margin

SG&A Expenses
SG&A Expenses Ratio

Operating Profit
O.P. Margin

Recurring Profit
R.P. Margin
Net Profit Attributable to Owners of the Parent

N.P. Margin
Annual Dividend Per Share (yen)FY 2023: Alpha-Win Research Department's Forecasts

FY 2022

FY 2023

Results

Company Forecast: CE

13,382
2,954
439
3,316
5,568
1,103
8,809
65.8%
6,153
46.0%
2,655
19.8%
2,697
20.2%
2,367
17.7%
24.0

12,927
1,399
402
3,257
6,115
1,752
7,845
60.7%
6,744
52.2%
1,100
8.5%
1,132
8.8%
639
4.9%
13.0

Alpha-Win's Forecast: E

12,950
1,300
400
3,250
6,600
1,400
8,000
61.8%
6,700
51.7%
1,300
10.0%
1,320
10.2%
700
5.4%
13.0

Alpha-Win's Forecast - Company Forecast

23
-99
-2
-7
485
-352
155
1.1%
-44
-0.4%
200
1.5%
188
1.4%
61
0.5%
0.0

% Difference (E/CE)

0.2%
-7.1%
-0.5%
-0.2%
7.9%
-20.1%
2.0%
-0.7%
18.2%
16.6%
9.5%

YoY: Difference in Amount-432-1,654
-39
-66
1,032
297
-809
-4.1%
547
5.8%
-1,355-9.8%-1,377-10.0%-1,667-12.3%-11.0

YoY: % Change

Alpha-Win's Old Forecast-3.2%-56.0%
-8.9%
-2.0%
18.5%
26.9%
-9.2%

13,700
2,700
350
3,050
6,600
1,000
9,000
65.7%
6,700
48.9%
2,300
16.8%
2,320
16.9%
1,580
11.5%
12.0

8.9%
-51.0%-51.1%-70.4%(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing materials. CE: company forecast/estimate. E: Alpha-Win’s
forecast/estimate. “Alpha-Win’s Old Forecast” is our forecast as of Jan. 31, 2022.
。

w We revised our forecast
downward for both sales
and profits, but predict thatthey will both be greaterthan the Company’s plan.

Sales and Profits
We revised our sales forecast for the current fiscal year downward by Y750
million from our previous forecast to Y12,950 million, which is almost thesame as the Company's forecast. However, although the forecasts of total
sales are not so different, by sales category, our forecasts for solutions(other operating revenue), products, and cloud are different from theCompany’s forecasts. First, while the Company expects sales of solutions
to increase by Y649 million (+58.8% YoY), our forecast for sales is Y1,400
million (sales growth of +Y297 million YoY), which is Y352 million lower
than the Company's forecasted sales. The marginal profit ratio is expected
to be around 60% (after the change in revenue-recognition standard), andthe downside risk in profits due to this is estimated to be around Y200
million.
Since the event-driven high demand has come to a pause, and has beenremaining so, we made a somewhat cautious forecast of the product’s sales
and profits compared to the company plan. For sales of maintenance service
and merchandise, our forecasts are about the same as the company plan.

w Cloud’s predicted sales
growth rate seems
somewhat conservative.

On the other hand, while the Company expects cloud’s sales to reachY6,115 million in an increase of Y547 million from the previous fiscal year(+9.8% YoY), this seems to be conservative forecast considering the

30/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
continued growth of PCA Cloud and X’sion (cloud version of work
management software), trends up through the previous fiscal year (simple
average of the annual sales growth rate over the past five years: about+30%), and the current situation. We forecast cloud’s sales to be Y6,600
million (+Y485 million compared to the Company's plan), estimating thatsales will increase by +20% YoY. Since it is a business with a high marginal
profit ratio, there is estimated to be an upside of about Y400 million in profit.
The Company has said that it may control costs depending on fluctuationsin profits. Therefore, if profits exceed the plan, expenses may be increased
to some extent.
Taking the above into consideration, we revised downward our forecast forthis fiscal year’s operating profit from our previous forecast of Y2,300
million to Y1,300 million. However, this forecast is still Y200 million
greater than the Company's forecast of Y1,100 million.
Assuming that there will be no major non-operating or extraordinary
income/losses, we similarly revised downward our forecast for recurring
profit from our previous Y2,320 million to Y1,320 million, and for net
profit from Y1,580 million to Y700 million. These exceed the company
plan by Y188 million (+16.6%) and Y61 million (+9.5%), respectively.

w The risk factor is theimpact of the worsening
macroeconomy oncorporate earnings and IT
investment interests.

w Since the Company
benefits from digitalization
and work-style reforms, therisks are limited.
w Increased cost, intensifying
competition, and slower
growth rate of the cloud arerisk factors.
w Monetization of the new
businesses will be thechallenge.

Risk Factors
The main risk factor in the medium-term financial forecast including thisfiscal year is that the corporate users’ business performance may worsen
due to the stagnation of economic activities in response to another reboundand prolongation of COVID-19, which had been settling down, and also
due to the inflation and logistics disruption caused by the Russian invasionof Ukraine. These may cause the corporate users to refrain from purchasing
products and services or postpone their implementation.
However, the existing services of the Company’s group have a high affinity
with remote work and work-at-home in terms of the Company’s businessand operations, and they also benefit from the digitization and work-stylereforms of companies and the society. Business performance was solid in
both the previous fiscal year and the year before that, and worsening
external factors will mostly likely not be a major issue this fiscal year either.
Therefore, the risks seem to be limited.
Other risks include increased costs due to rising personnel expense andsubcontracting expense and slower growth rate of the cloud business due tointensifying competition with competitors.
In addition, although presumably not included as a large part of the budget,
progress may not be made as expected regarding the new services such as
PCA Subscription, the healthcare business, hyper, and PCA Hub inproviding these service, acquiring new customers, and promoting their sales.
Monetization of the new businesses will be the challenge.

31/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

8． Growth Strategy
w Long-term vision is tobecome a Management
Support Company focusedon the managementsupport business for its
corporate customers.
w Created a new mediumterm plan. For sustainablegrowth, it will strengthen
its development capability,
build its businessfoundation, and transform
its business structure.

w Will continue with anddevelop its previous
medium-term plan andexecute the four priority
measures.

◆ Medium- to Long-Term Vision and PolicyLong-Term Vision
The PCA Group’s long-term vision through FY 2031, when it will reach its
50th anniversary, is as follows: “By providing a greater variety of one-stop
services for corporate management and operation, we will become a true
Management Support Company that is focused on the management-support
business for our corporate customers.”
New Medium-Term Management Plan
The Company has been creating medium-term management plans for threeyear spans, and in April 27, it announced a new medium-term management
plan (FY 2023 – FY 2025) that starts this fiscal year. Its medium-term basic
policy is to “transform the business structure and build the foundation forcontinuing and developing businesses that are both long-term and stable”
and aims to “optimize the company’s structure for creating customeroriented new businesses, products, and services ahead of changes in thesociety.”
To provide total solution services centered on software, it has set four items
as shown in Figure 26 (I through IV) as its priority measures.

【Figure 26】Growth Strategy and Priority Measures of the New Medium-Term Plan

I. Establish a strong revenue base for the core businesses

Greater earning power throughcontinuous growth

1. Further expand the cloud business: strengthen and promote sales of PCA CloudWith a focus on PCA Cloud / on AWS, meet demands related to new ways of working such as remote workwith flexibility.

2. Promote the shift to the subscription-based business modelWith a focus on PCA Subscription, switch from sales of packaged on-premises software to thesubscription services.

3. Greater digital customer success
Effectively meet the direct needs of customers and pursue greater customer success to improve contract
success rate and customer retention rate.

II. Create new business opportunities

For the development of the next core business andthe future

Conduct applied research on fundamental technologies such as AI (enabling linkage between corebusiness operations and peripheral operations and automating data entry), find and create new areas ofbusiness (materialize ideas, seeds, and customer needs), and launch the PCA Hub service (respond to DX
needs to develop the service into a new source of earnings)

Gain greater competitive edge andIII. Strengthen our monozukuri (creation of things) with a differentiate through modernized software
focus on safety, security, and anticipation of needs
development
Digital (support DX of operation), Service (fast service development and release from a user-oriented
approach), and Modern (strengthen development system, expand the PCA Hub series, and modernize inthe area of enterprise systems)

IV. Strengthen the management foundation for a highly profitable structure For sustainable growth
Build and leverage the foundation for DX acceleration, strengthen IT governance and security measures,and create an environment for active engagement by a diverse workforce(Ref) Based on the financial results briefing materials, partially edited by Alpha-Win Research Dept. with supplementary information.

32/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
The priority measures have basically been developed based on the previous
medium-term plan. By first strengthening the subscription-based businessmodel centered on the cloud business, and then strengthening thedevelopment and service systems, the Company plans to support the DX14of the operations of small/medium-sized companies.

w Main points are tostrengthen thesubscription-based
business model, respond todigitalization needs, createbusiness opportunities,
and strengthen its
development and service
system as well as
management foundation.

In addition, it plans to work on its own DX and strengthen its managementfoundation such as governance and structure to achieve sustainable growth.

◆ Management Indicators Set as Goals(14） DX: stands for Digital
Transformation. The changes inlifestyles and businesses brought
about by digital technologies.

Numerical Goals of the New Medium-Term Plan
The following seven items (Figure 27) have been set as numerical targets
for the current medium-term management plan from the perspectives ofbusiness performance, capital efficiency, and shareholder return.

w As numerical goals of themedium-term plan, seven
items have been set fromthe perspectives of businessperformance, capitalefficiency, and shareholder
return. Somewhat
conservative goals.

Aside from the two items related to sales, all figures have already beenachieved in the past during event-driven high demands, etc., and seem to berealistically achievable targets.
Note that the Company assumes that there will be no event-driven highdemand.

【Figure 27】Progress and Forecasts for the Goals of the Medium-Term Management Plan
Goals of the Current Medium-Term Management Plan
(FY 2022 - FY 2025)

FY 2025: Company PlanFY 2023: Company Plan

Record High

Goals for the Final Year of the Previous Medium-Term Management Plan
(FY 2022)
Initial Goals
Revised Goals
Results(as of April 2019)(Previous FY)
Y13.38 billion
Y11.5 billion or more
Y13.5 billion or more

Y15 billion or more

Approx. Y13 billion

Approx. Y14.3 billion (FY 2020)

Y9.5 billion or more

Approx. Y9.4 billion

Approx. Y8.9 billion (FY 2022)

Y8.88 billion

Achieve Y6 billion

Achieve Y7.5 billion

Y2.5 billion or more

Y1.1 billion

Y2.65 billion

Y1.5 billion or more

Y2.1 billion or more

・Consolidated Operating Margin

16% or more

8.5%

Approx. Y2.8 billion (FY 2020)
During the past 10 years: 19.8%(FY 2022)
During the longest period with data
available: 28.5% (FY 1999)

19.8%

10% or more

15% or more

Asset
Efficiency

・ROE

10% or more

3.8% (Alpha-Win's estimate)

14.4%

14.4%

Shareholder
Return・DOE・Dividend Payout Ratio

2.5%
30.0%

1.8% (Alpha-Win's estimate)
40.7%

・Consolidated Sales
Of which, are sales from subscription-based
businesses (maintenance & cloud)・Consolidated Operating Profit
Business
Performance

2.9%
20.3%

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing materials. Goals are those announced by the Company.

w 当調査部では、中期の年間利益成長率を 5~8％予想。

w Last medium-term plan’s
upwardly revised
numerical goals had beenreached. Sufficient results
were achieved.

Progress Made in the Previous Medium-Term Plan (numericaltargets)
The initial goals of the previous medium-term management plan had beenachieved in its first year for FY 2021, so the numerical goals for the final
year or FY 2022 had been revised upward (Figure 27: right). However,practically all of the revised targets have been achieved (sales, too, wereachieved based on the old revenue-recognition standard).

33/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

w 当調査部では、中期の年間

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022◆ Alpha-Win Research Dept.’s Forecast of MediumTerm Financial Results

w We reviewed our mediumterm financial forecasts andrevised the profit forecasts
downward.

We revised our medium-term financial forecast for the three years including
this fiscal year (Figure 28). Upon considering the Company's forecasts forthis fiscal year and its medium-term plan, we revised downward the profit
forecasts for this and the next fiscal year. We also added a new forecast for
FY 2025.

【Figure 28】Medium-Term Financial Forecast
Units: million yen, %Merchandise

FY 2021
13,308
1,985
485

FY 2022
13,382
2,954
439

FY 2023 CE
12,9271,399
402

FY 2023: Old E
13,7002,700
350

FY 2024: Old E
15,0002,900
300

FY 2023: New E
12,9501,300
400

FY 2024: New E
14,3101,450
360

Maintenance Service

3,552

3,316

3,257

3,050

2,900

3,250

3,150

3,000

Cloud Service

4,057
3,227
60.1%
5,686
42.7%
2,314
17.4%
2,340
17.6%
1,668
12.5%

5,568
1,103
65.8%
6,153
46.0%
2,655
19.8%
2,697
20.2%
2,367
17.7%

6,115
1,752
60.7%
6,744
52.2%
1,100
8.5%
1,132
8.8%
639
4.9%

6,600
1,000
65.7%
6,700
48.9%
2,300
16.8%
2,320
16.9%
1,580
11.5%

7,800
1,100
65.3%
7,200
48.0%
2,600
17.3%
2,620
17.5%
1,780
11.9%

6,600
1,400
61.8%
6,700
51.7%
1,300
10.0%
1,320
10.2%
700
5.4%

7,800
1,550
62.0%
7,000
48.9%
1,870
13.1%
1,890
13.2%
1,130
7.9%

9,000
1,700
62.5%
7,150
46.1%
2,550
16.4%
2,570
16.6%
1,550
10.0%

-6.7%
-37.3%-12.1%
2.3%
20.2%-12.8%-0.2%-2.3%-16.8%-16.7%
-8.1%

0.6%
48.8%
-9.5%
-6.6%
37.2%
-65.8%
5.7%
8.2%
7.6%
14.7%
14.1%

-3.4%
-52.6%
-8.4%
-1.8%
9.8%
58.8%
-5.1%
9.6%
13.5%
-58.6%-57.1%-0.4%-27.0%-10.3%
-6.7%
20.0%
11.1%
0.2%
6.0%
-14.8%-14.7%-33.6%

9.5%
7.4%-14.3%
-4.9%
18.2%
10.0%
-0.4%
7.5%
13.0%
12.9%
12.7%

-3.2%
-56.0%
-8.9%
-2.0%
18.5%
26.9%
-4.0%
8.9%
-51.0%-51.1%-70.4%

10.5%
11.5%-10.0%
-3.1%
18.2%
10.7%
0.2%
4.5%
43.8%
43.2%
61.4%

8.5%
3.4%
-11.1%
-4.8%
15.4%
9.7%
0.5%
2.1%
36.4%
36.0%
37.2%

Sales
Products

Category

Other Operating Revenue

Gross Margin
SG&A Expenses(% over sales)

Operating Profit(% over sales)

Recurring Profit(% over sales)

Net Profit(% over sales)

Sales (% YoY growth for all values)
Products
Merchandise

Category

Maintenance Service
Cloud Service
Other Operating Revenue

Gross Margin (% YoY diff.)
SG&A Expenses (% growth)

Operating Profit (% growth)
Recurring Profit (% growth)
Net Profit (% growth)

FY 2025: New E FY 2025 CE Medium-Term Plan
15,52015,000
1,500
320
9,500

2,500
16.7%

15.0%

(Ref) Predicted and prepared by Alpha-Win Research Dept. (E is the new forecast/estimate and Old E is the previous forecast/estimate). CE is the Company’s
forecast/estimate.
(Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) has been applied starting in FY 2022.

w Economic activities are
assumed to normalize
starting in FY 2023.

w We reviewed our estimatesfor sales by category andcosts.

w Cloud and work
management software are
expected to continue to be
the growth drivers. On-site
support is also likely to beresumed in full scale.

Macroeconomic Assumptions
The current macroeconomic environment is unforseeable due to thedepreciation of the yen, inflation due to soaring resource prices, anddisruption of logistics. However, since the COVID-19 risk in Japan is
becoming smaller, we predicted that people’s lives, economic activities,
corporate earnings, and IT investments by small/medium-sized companies
will gradually normalize and improve. At present, we do not anticipate theoccurrence of high demand caused by tax systems, accounting standards,
and product versions. In addition, starting this fiscal year, there will mostly
be no gap down caused by the new revenue-recognition standard.
Estimates Used for Sales, Expenses, and Profit
We reviewed our estimates for costs and sales by category, especially for
products, cloud, and other. Merchandise sales are expected continue todecline as more companies go paperless, and sales of maintenance service
will also likely continue to drop due to the shift to the cloud. However, wepredict that the increase in cloud sales (growth of about 15-20% per year),
improvement of product mix with the increasing proportion of the cloud,the shift of various businesses to the subscription-based business model,
and the progress with the streamlining of business will lead to improved
profitability (operating margin).
Since the growth potential of the cloud and the work management software
is high, we believe that they will continue to be the growth drivers,
absorbing the increase in upfront investment, sales promotion expense, andpersonnel expense and contributing to the increase in sales and profits. We
see the subscription business centered on the cloud as being in the phase ofcontinuous and stable expansion. In addition, as the COVID-19 crisis settles

34/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
down, the Company should be able to provide full, on-site on-site support
to its customers. Also, if it could put its current new businesses on track,
the sales and profit growth trend will become more solid.

w We expect operating
margin to improve YoY.

w Over the medium term, in
addition to the cloudbusiness’ growth rate, thesuccess or failure of the
new products and services
will impact results.

w Next fiscal year, we expectthat the sales of cloud, etc.,
will continue to grow and
the Company will return toa sales and profit growthtrend.

w We expect consecutive
increases and sales andprofits in FY 2025 too.

w With the subscription
business as the growth
driver, we expect theannual profit growth rateover the long term to be 810%.

In making forecasts for FY 2024 and FY 2025, we assumed that whiledevelopment and subcontracting expenses will increase, they will settle
down and the gross margin will gradually increase (expecting improvement
by 0.2 or 0.5 basis point YoY, respectively). On the other hand, we expect
the SG&A expenses to increase as the Company strengthens upfront
investments (R&D, personnel, and sales promotion expenses), for instance,
to reinforce its business foundation in preparation for future growth,develop new products, and conduct research on technologies necessary forthat development (virtualization technology, AI, Web API, and FinTechlinked technology). However, since cost control should be possible to someextent, we assumed that the SG&A expenses ratio will decline and theoperating margin will improve by around 3 basis points per year.
Consequently, with the sales growth, we expect that profits will increase.
Factors that May Cause Differences
In addition to the growth rate of the cloud, the Company’s financial
performance will most likely be affected by whether it will succeed inbusiness expansion of PCA Hub which it is currently working on in fullscale, as well as PCA Subscription, hyper, and the HR business withDreamhop. Whether there will be M&As will also affect the results.

Forecast for the Next Fiscal Year (FY 2024)
For next fiscal year, compared to our previous forecast, we revised sales
from Y15,000 million → Y14,310 million and operating profit from
Y2,600 million → Y1,870 million. However, although we have madedownward revisions, we still forecast that both sales and profit will returnto growth next fiscal year, with sales increasing by 10.5% and profit
increasing by 43.8% compared to our new forecast for FY 2023. We also
predict that dividend per share will be 14 yen, in an increase of 1 yen fromthe current fiscal year’s forecast.
Forecast for the Fiscal Year after the Next (FY 2025)
We have added a new forecast for the fiscal year after the next or FY 2025.
We expect that sales will increase by 8.5% YoY to Y15,520 million,
operating profit will be Y2,550 million, and net profit will be Y1,550
million, with an approx. 30% growth for both profits. In addition, we expect
dividend per share to be increased by 1 yen from FY 2024 to 15 yen.
Profit Growth Rate over the Medium/Long Term
Over the medium term (two to three years starting this fiscal year), we
expect that there will be a double-digit profit growth, supported by the sales
growth rate of the cloud at around 15-20% per year.
Over the long term, based on normalized figures excluding the effect of theevent-driven high demand, we are expecting an annual sales growth rate ofaround 6-8% and an even greater net profit growth rate (8-10% per year).
Since the cloud business (subscription business), which is the Company’s
core business as well as its growth driver, has a high marginal profit ratio,
sales growth will directly contribute to profit growth, such that the profit
growth rate will likely exceed the sales growth rate.

35/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022

9． Analyst’s View
◆ PCA’s Strengths and Challenges
The Company’s SWOT analysis has been updated and the results are listed
in Figure 29.
【Figure 29】SWOT Analysis
・ Brand recognition and trust earned over many years (major specialized player in the enterprise system software market for small/medium-sized companies)
・Firm financial standing (debtless management) and stable cash flow; ample cash & deposits exceeding annual sales
・Growth of the subscription business based on continuous payment for service; capable of continuously generating stable revenue (became a cash-cow business)

Strength

Weakness・ Strong and diversified customer base (240,000 corporate users in total)
・Taking a lead with the cloud (top-level results, expertise, number of users, and years in service for enterprise system software business targeting small/mediumsized companies)
・High barrier to market entry
・Very experienced call center staff and engineers (support capability)
・Rich product lineup; provides products both as on-premises and by cloud (development capability)
・ Sales capability: sales network with sales offices throughout Japan (13 offices) and 2,000 partnered companies
・Relatively somewhat low profit margins
・Financial results susceptible to revisions related to accounting and tax laws, end of OS support, etc. (consumption tax, change in the name of the era, Windows
7, etc.)・Maintenance service subscription rate is improving but could still be improved
・Absence of a major, next-generation, growth-driving product/service
・Domestic-demand oriented; overseas expansion difficult
・Increased demand from lack of human resources and for streamlining operation (for business software in general); work-style reform (work management
system)・Potential to increase users of cloud service; development potential (toward small/medium-sized companies and mid-tier companies)

Opportunity

・New products (hyper, PCA Hub, etc.), new services (transition of on-premises to subscription-based model), and innovations in technology
・ Development of HR businesses
・Revisions in regulations related to accounting and tax, etc. (the revised Electronic Books Maintenance Act, invoice system, etc.)
・Emergence of an alternative as advanced AI technology becomes widely used, delayed product development, defects in products, etc.
・High competition (maturation of on-premises market; other companies catching up with the Company in the cloud business)

Threat・COVID-19 outbreak/prolongation and worsening business performance of Japanese small/medium-sized companies due to the worsening global macroeconomy
・Contract termination risk, etc.
・System troubles and information leakage
・Rise in personnel and development costs(Ref) Prepared by Alpha-Win Research Dep.

w Trust and track record built
over many years, customer
base, expertise intechnology, ample cash &deposits, and firm financialbase are its strengths.
w Also has a highcompetitive edge and toplevel achievements withthe cloud business that it istaking a lead. The cloudmarket has a high growthpotential.

w Development of the next
new products/services isthe challenge.

w Business volatility
increases before and after
events due to event-driven
high demand.

Describing the strengths listed in Figure 29 in more detail, the Company iswell known due to its long years of service in the industry and the trust thatit has earned over those years. It is especially strong in certain areas ofbusiness (such as accounting software for small/medium-sized companies).
Its customers also have high loyalty, as there is little incentive to frequently
change enterprise system software. Additionally, the Company has beendeveloping a subscription-based business model with high continuity andstability by providing maintenance support, cloud versions, and version
upgrades to its customers. It is leading the market with the cloud, which hasa high growth potential, and its high competitive edge and top-level
achievements have become its strengths. Also, its solid financial base withno debt and abundant cash and deposits exceeding the annual sales areenhancing the stability and reliability of management.
On the other hand, looking at the weaknesses in more detail, the Company
has been searching for the next, new major products and services and forways to gain market share among mid-tier companies, but has not been able
to develop businesses that would enable enough economies of scale. Also,
companies that have joined the group through M&As, like MACS System
Corporation and Keepdata Ltd., could not generate the expected synergies
and have already been sold, although Xronos is a successful exception to
this.
As for the opportunity and weakness (or threat), as we have seen in the past,
volatility of financial performance tends to increase due to high demand
before and after events such as the consumption tax revision, work-style

36/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
reform, end of Windows support, replacement in response to termination of
support for the existing product series as in the previous fiscal year, andperhaps also the revised Electronic Books Maintenance Act in the future.
In the cloud service that it is taking a lead, the Company is aiming for nonprice competition through product strength, service, and support. However,its competition with major competitors that have started the business at alater stage and with service providers that provide limited functions at lower
price ranges will be the key points.

w Aiming for non-pricecompetition. The situation ofcompetition with its
competitors will be a key
point.

◆ Shareholder Return and Shareholder Benefit Program
Dividend Policy
The Company’s basic policy is to continue stable payment of dividend
while improving the ratio of net profit to shareholders’ equity (ROE) undereffective business management. In returning profit to its shareholders, its
policy is to determine the level of dividend to be paid based on acomprehensive analysis of elements such as its financial results anddividend payout ratio.
Dividend History
Regarding dividend, ever since the first public offering of the Company’s
stock, ordinary dividend has essentially not been decreased and has been
gradually raised over the long term with several years of no change inbetween (Figure 30).
【Figure 30】Change in Dividend and Dividend Payout Ratio (after stock split)
Dividend (right axis)
Dividend Payout Ratio (left axis)

（％）

300.0

Commemorative Dividend (right axis)

(Y)

30.0

281.1

24.0

250.0
200.0

18.0
13.3

0.0

15.0

6.7

132.0

3.3

100.0
50.0

20.0

11.0

116.9

150.0

25.0

10.0

10.0

30.9

47.8

FY 2009

FY 2010

10.3

10.3

10.3

47.2
FY 2011

FY 2012FY 2013

10.0

10.3

10.3

10.3

46.5

ＮＡ

ＮＡ

FY 2014

FY 2015

FY 2016

10.3

10.3
48.2

FY 2017

FY 2018

10.3

13.0

11.3

11.3

19.8

13.6

20.3

FY 2020

FY 2021

FY 202223.3
FY 2019

13.0
10.1
FY 2023
(E)

14.0

15.0

15.2

14.6

FY 2024(E)

FY 2025
(E)

5.0
0.0

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. The above graphhas been retroactively adjusted for the three-for-one stock split that came into effect on October 1,
2021. Estimates/forecasts (E) were made by Alpha-Win.

w Will maintain an ordinary
dividend of 13 yen per share(post-stock-split), the value
after being practically raised.

w The target dividend payout

ratio is 33% and the target
DOE is 2.5%. This FY,
dividend payout ratio is
expected to exceed the target,
but the DOE is expected to fallshort. Over the medium tolong term, dividend hikes are
possible as profit grows.

Excluding commemorative dividend, the ordinary dividend had been kept
at 10.3 yen/share per year since FY 2011 (31 yen before the stock split:
dividend before the retroactive adjustment for the stock split is underlined).
Then, in FY 2020, it increased dividend by 1 yen (3 yen) to 11.3 yen (34yen) and also paid a commemorative dividend of 6.7 yen/share (20 yen) for
its 40th anniversary.
In FY 2021, there was no more commemorative dividend, and the ordinary
dividend of 11.3 yen (34 yen) was kept.
In FY 2022, the ordinary dividend was increased from 11.3 yen (34 yen) to
13.0 yen (39 yen), and a commemorative dividend of 11 yen was added toa total of 24 yen (72 yen). Although there will be no commemorative
37/41

This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022
dividend this fiscal year, it plans to maintain the ordinary dividend at theincreased value of 13 yen (39 yen before being adjusted for the stock split).
The target dividend payout ratio is 33%, but the actual ratio was 13.68% in
FY 2021 and 20.3% in FY 2022, both below the target. However, the ratio
is expected to exceed the target at 40.7% in FY 2023 (the Company’s
forecast) with the decrease in the EPS. Based on the stock price of Y1,158(closing price on July 1, 2022, with dividend assumed to be 13 yen), thisfiscal year’s dividend yield is estimated to be about 1.1%.
Dividend on equity (DOE), which is one of the Company’s KPIs (keyperformance indicators), was 2.9% in FY 2022, exceeding the target of
2.5%. This fiscal year, we estimate that DOE will be around 1.8%, fallingshort of the target again. Although profits can change greatly depending onwhether there is event-driven high demand, also causing the dividend
payout ratio and DOE to easily fluctuate, the Company has been generally
increasing its ordinary dividend and strengthening its return of profit toshareholders.
Dividend Yield
The Company has a shareholder benefit program and gives out Quo Cards
to shareholders based on the number of shares held at the end of March of
every year. For example, shareholders with equal to or greater than 100
shares and less than 300 shares are granted Y2,000 worth of Quo Card.
Based on a stock price of Y1,158, the actual annual net yield for ashareholder owning 100 shares is about 1.7% (maximum) including theordinary dividend of Y13 and the shareholder benefit (Figure 31). Note thatlast fiscal year, the dividend yield was 2.6% due to the commemorative
dividend.

w The actual annual net yield
including the shareholder
benefit program is about
1.7% (at maximum).
w

Based on the same conditions, the actual annual net yield is about 2.1% for
OBC (4733: Obic Business Consultants) (including the shareholder benefit
program) and about 3.4% for MJS (9928: Miroku Jyoho Service) (onlydividend yield since it has no shareholder benefit program).

【Figure 31】Shareholder Benefit Program and Actual Net Yield
Number of Shares Owned(greater than or equal to)(less than)Shareholder Benefit (Quo Card: Y)

Dividend: Y

Net Yield (maximum): %

300

900

2,000

13

1.70

900

1500

3,000

13

1.41

4,000

13

1.35

1,500

Net yield = (Ths fiscal year's forecasted dividend + benefit value) / (stock price), calculated for the minimal amount of stock
owned in each range
Stock price: Y1,158 (closing price on 7/1/2022)(Ref) Prepared by Alpha-Win Research Dept.

Stock Split
A 1.3-for-1 stock split was conducted in May 2000. Then, for the first timein approximately ten years, it conducted another stock slit – a three-for-one
stock split in October 1, 2021.

38/41
w 目標配当性向は 33％、純This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in this
資産配当率は2.5％が目Report for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,
。any実
績と
乖not離
がany
大responsibility
きor標
fit forpurposeand doacceptor liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
propertyof this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.
く、中長期的には増配余地がある。

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022◆ Stock Price and Factors that May Affect Stock Price
Performance
The Company’s stock price and relative stock price compared to the
TOPIX for the past approximately six years are described in the summary
section (Figure C on page 3). Its stock price has risen by approx. 3.1x overthis period, significantly outperforming the TOPIX which only increasedby 1.4x.

w With solid performance,stock price has increased
largely and has beensignificantly
outperforming the TOPIX
for the past 6 years.

However, stock price became weak after the announcement of large profit
drops for this fiscal year. Over the past month or so, the Company’s stock
has been underperforming compared to its two competitors (4733 ObicBusiness Consultants or OBC and 9928 Miroku Jyoho Service or MJS) andthe TOPIX.

w Has been underperforming
compared to its
competitors and the TOPIX
over the past month.

Note that for the past six years starting in May 2016, the Company has had
the highest performance among the three competing companies (Figure 32).

【Figure 32】Comparison of Stock Performance with Competitors(Note: stock price as of the end of June 2016 was set to zero upon creating the graph. Reflects
prices up through the closing price on July 1, 2022)
400%

PCA (9629)

OBC (4733)

MJS (9928)

350%

w 過去 2 年間で同社株は、300%

同業 2 社を大幅にアウ
トパフォーム。

250%
200%
150%
100%
50%

Jun 2022

Apr 2022

Feb 2022

Oct 2021

Dec 2021

Jun 2021

Aug 2021

Apr 2021

Feb 2021

Oct 2020

Dec 2020

Jun 2020

Aug 2020

Apr 2020

Feb 2020

Oct 2019

Dec 2019

Jun 2019

Aug 2019

Apr 2019

Feb 2019

Oct 2018

Dec 2018

Jun 2018

Aug 2018

Apr 2018

Feb 2018

Oct 2017

Dec 2017

Jun 2017

Aug 2017

Apr 2017

Feb 2017

Oct 2016

Jun 2016

Aug 2016

Dec 2016

0%
-50％
-50%

(Ref) Prepared by Alpha-Win Research Dept.

w Valuation is expensive

compared to the TOPIX
based on this fiscal year’svalues.

w Valuation also does notseem underpriced
compared to its two listedcompetitors.

Valuation
Based on the Company’s current level of stock price, its valuation seems
expensive in terms of the main valuation measures compared to the averageof the TSE Prime Market.
Compared to the TSE Prime’s forecasted average P/E of 13.4, theCompany’s P/E based on its forecasted values is 36.2. Similarly, compared
to TSE’s actual P/B of 1.1 and dividend yield (simple average) of 2.4%, theCompany’s is 1.4 and 1.1%, respectively.
Based on our forecast of profit, the Company’s P/E is 33.1 for the current
fiscal year, 20.5 in the next fiscal year, and 14.9 in the year after the next.
When its valuation is compared with its two competitors, the Company’svaluation is cheap in terms of P/B and EV/EBITDA, but expensive in termsof P/E and dividend yield (Figure 33 on page 40).

39/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 7/4/2022【Figure 33】Comparison of Valuation with Competitors
Company Name
Code (TSE Prime Market)
Stock Price (at 7/1/2022 closing)Market Cap (million yen)
P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)

PCA(consolidated)
9629
1,158
26,750
36.2
1.4
1.1
3.8
2.1

Obic Business Consultants(OBC: nonconsolidated)

Miroku Jyoho Service(MJS: consolidated)

4733

9928
4,730
356,661
28.9
2.6
1.5
13.9
9.6

1,187
41,315
12.2
1.6
3.4
5.6
1.3

(Note) Market cap = total outstanding shares x market stock price [at 7/1/2022 closing]
EV/EBITDA = (market cap + interest-bearing debt - cash & deposits) / (O.P. + depreciation + intangible fixed asset amortization, etc.)*Interest-bearing debt, cash & deposits, operating profit (O.P.), depreciation, and intangible fixed asset amortization are actual values
of FY 2022.
The companies' estimated EPS for FY 2023 used in all P/E calculations. BPS values used in P/B calculations are actual results of FY 2022.
Dividend is based on the companies’ forecasts.
P/S = market cap / sales [the companies' estimate]"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc., have been applied to all companies since FY 2022’s forecast(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary

w The two cloud-accounting
competitors have extremely
high valuations.

Money Forward (TM: 3994) and freee (TM: 4478) described previously
are also the Company’s competitors among listed companies in the area ofcloud accounting software. However, they are not reasonable targets forvaluation comparison since they have been posting net losses and paying
no dividend. Also, although both companies’ stock prices have fallen
sharply, their valuations are still extremely expensive regarding thecomparable valuation measures of P/S and P/B (similar for the comparison
with the unlisted company Yayoi).
*Money Forward (TSE Prime: 3994)
・Market cap of Y180 billion at stock price of Y3,555（7/1 closing price）
・FY 2022 (November-ending) company forecast: sales of Y21,094 million(median value since announced as a range; +35% YoY); profit forecast notdisclosed (last fiscal year’s result: net loss of Y1,482 million); no dividend.
・P/S of 8.5 and P/B of 4.7 [as reference, P/S = market cap / sales]*freee (TSE Growth: 4478)
・Market cap of Y180.4 billion at stock price of Y3,185（7/1 closing price）
・ FY 2022 (June-ending) company forecast: sales of Y14,361 million(+40.0% YoY), adjusted operating loss of Y2,461 million, and no dividend
・P/S of 12.6 and P/B of 4.0*Yayoi (unlisted company)
・Acquisition price estimated by KKR: approx. Y250 billion (as of Dec.
2021)
・FY 2021 (September-ended): sales of Y21,193 million, recurring profit ofY4,937 million, and net assets of Y8,772 million
・P/S of 11.3, P/B of 28.7 (valuation on based on FY 2021 results andacquisition price), and P/E of 74.4 (similarly estimated, with the corporate
tax rate assumed to be 32%)

40/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)w Domestic-demand-oriented
growth stock with highgrowth potential. The key
themes are cloud,subscription, DX, workstyle reform, and mental
healthcare.
w Expected to return to sales
and profit growth starting
next FY since there will nolonger be the impact of the
fallback from the eventdriven high demand.

w Considering the growthpotential over the medium
term, we believe that there
is an upside to the stock
price.

w Key points are the profit
growth rate over the
medium term, the cloud’s
growth rate, themonetization of the new
businesses/services(especially PCA Hub),
return of profit toshareholders, andutilization of its cash.

Issued: 7/4/2022

Outlook
While the impact of COVID-19 is becoming alleviated, there are still
uncertainties surrounding the economic situation due to factors such as thewar in Ukraine, the lockdown in China, inflation, and the monetary
tightening. However, the Company will most likely continue to beevaluated as a domestic-demand-oriented growth stock which has a strong
subscription-based business (shifting packaged enterprise system softwareto the cloud/subscription business) and can benefit from the growthpotential of this business as well as its advantageous position in terms ofthe government’s promotion of the work-style reform, digitalization, andthe expansion of the metal-health-related market.
Also, we believe the Company will be able to return to a growth trajectory
again with the cloud and work management system as the drivers of growth
and with the new businesses also gradually contributing to results as the
economy normalizes. From next fiscal year, we expect that the Company
will no longer be impacted by the fallback from the event-driven highdemand, so that it will return to a growth trend for sales and profits.
The stock price seems to already mostly reflect this fiscal year’s large profit
drop. Since this fiscal year’s downside risk to business results is small,based on the forecasted profit growth trend starting next fiscal year, there
seems to be an upside to the stock price over the medium term.
Going forward, the key points to watch are 1) performance of the cloudbusiness (change in PCA Cloud’s number of corporate users and sales
growth rate), 2) progress with the transition of the on-premises to thesubscription version (PCA Subscription) and with the development of new
products, services, and businesses, their contribution to profit, and theirmarket competition (especially regarding the financial performance of theacquired Dreamhop and the sales situation of hyper and PCA Hub, its areaof focus), 3) progress with the new medium-term management plan andprofit growth rate over the medium term, 4) measures to return profit toshareholders such as dividend hikes and share buybacks, 5) progress with
the M&A strategy, 6) implementation of business/profit management
system and their effects, 7) new tax systems and changes in regulations,and 8) utilization of its ample cash.

41/41
This Alpha-Win Company Research Report (hereinafter “this "Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate,or fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting fromthe use of or reliance on this Report. Investors who read this report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual
property of this Report belongs to Alpha-Win and no part of this report may be copied, photocopied, cited, or translated without our consent.