Alpha-Win Company Research Report
PCA(9629 TSE First Section)● SummaryIssued: 11/22/2021

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. In recent years, though,it has been actively expanding its business through M&As.
・Its strength is its concentration of resources in its field of expertise as a specialist to develop products andservices that meet various customer needs, including those related to changes in tax and other regulations, aheadof its competitors. It also has a stable customer base and can provide high-quality products and services atreasonable prices.
・The Company has a customer base of approx. 240,000 companies. It has a high brand recognition and top-levelmarket share in accounting and finance software targeting small/medium-sized companies. It is especiallytaking a lead in cloud-based enterprise system software in those fields and is the top player in the market.
・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 conduct smooth management and operation,
mainly by providing enterprise system software that realizes high-level automatization.
This Fiscal Year’s H1 Results and Full-Year Forecast
・This fiscal year’s first-half results (first half or “H1”; ended September 2021; note that the Company’s fiscal
year is March-ending, i.e., FY 2022 ends in March 2022) showed significant increases in sales and profits
compared to the previous H1 (ended September 2020) during which sales and profits had decreased in reaction
to past event-driven high demand. Sales were Y6,609 million (+10.5% YoY), operating profit was Y1,753
million (+86.8% YoY), and net profit was Y1,449 million (+145.9% YoY). The Company had not disclosed its
earnings plan for H1, but the results have presumably largely exceeded its internal plan. In addition, thanks to
the high demand for its products in response to the upcoming end of support for the X series, H1 sales andoperating/recurring profits were the second highest level in the Company’s history, following the record-high
H1 sales and profits achieved in H1 FY 2020. There was also a gain on sales of securities, resulting in recordhigh net profit.
・The new revenue-recognition standard has been applied starting this H1, causing the “other operating revenue”
category to decrease significantly. In addition, maintenance sales decreased due to the end of support for the
PCA X series. On the other hand, product sales grew significantly due to replacement demand for the series,
and the cloud services continued to perform well. As a result, there was a double-digit sales growth YoY. In
addition to the sales growth, the improvement in the product mix contributed to improvements in the profit
margin, leading to significant increases in profits.
・Considering this solid performance in H1, the Company revised its full-year forecast (FY 2022) significantly
upward compared to its initial forecast: sales of Y12,447 million → Y13,515 million, operating profit of Y1,866
million → Y2,586 million, and net profit of Y1,192 million → Y2,310 million. Due to the increase ininvestment costs for future growth and the impact of the application of the new revenue-recognition standard,
the Company had expected at the beginning of the fiscal year that there will be decreases in sales and profits
during this fiscal year. However, it now expects increases in sales and profits. As with H1, the full-yearcompany plan is that the second highest level in its history will be achieved for sales and operating profit,
following the record highs of FY 2020, and that net profit will hit a record high.
Alpha-Win Research Department’s Forecast of Financial Results
・ We had previously predicted that the Company's forecasted results could be revised upward since theCompany's initial forecasts for sales and costs seemed somewhat conservative. The Company’s new, upwardly
1/41This 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 First Section)

Issued: 11/22/2021

revised forecasts for sales and operating profit are again lower than our forecasts, and still seem conservative.
However, considering the H1 results and the current situation, we revised our sales forecast for the full fiscal
year downward by about Y400 million. In addition, since the Company plans to have greater expenses andupfront investments than what it had planned in its initial plan, we reflected this additional increase in costs
and other factors in our profit forecast and revised operating profit from Y3,330 million to Y2,700 million. We
believe that the results could be greater than the Company's forecasts for profit, unless costs are further
increased intentionally.
・Next fiscal year, sales may decrease slightly and the final profit may decrease due to a decline in reaction tothis fiscal year’s event-driven high demand for the products and because there will no longer be an
extraordinary income like this fiscal year. However, assuming that economic activities will gradually normalize
as the COVID-19 settles down, we predict that high levels of financial performance will be maintained since
there will not be another gap-down from the application of the new standard and the cloud will likely continue
to be a growth driver. Starting in the fiscal year after the next, we believe that the Company will begin
increasing sales and profit again and that the annual profit growth rate will be 8-10% (on a normalized basis)over the medium to long term.

Business Strategy
・As the basic business strategy for the PCA Group, the Company aims to create a strong earnings base for its
main businesses (strengthen and increase the sales of PCA Cloud and strengthen the subscription business forthe on-premises), create new business opportunities (development of new technology and businesses), andstrengthen the management foundation to build a high-profit structure, as well as strengthening its monozukuri(“creation of things”; development system for creating unique products and services). Based on these strategies
for achieving further growth, it has been executing and making progress with various measures mostly alongschedule. Meanwhile, challenges remain with effectively using its abundant cash for future growth and getting
the new businesses (PCA Subscription, hyper, HR business, PCA Hub, healthcare business, etc.) on track tomonetize them.
・The consolidated numerical goals (after upward revision) for this fiscal year (FY 2022), which is the final yearof the current medium-term management plan, had mostly been achieved in the previous fiscal year and are
expected to be fully achieved this fiscal year. This fiscal year, it plans to start in advance a part of the investment
planned for the new medium-term plan that starts next fiscal year.
Stock Price・A defensive, domestic-demand-oriented, and small-cap growth stock that is making progress with the transition
to a subscription-based business model and is positively influenced by the workstyle reform and tax reforms.
Since large-cap, economically sensitive stocks have recently tended to be bought in the market in anticipationof post-COVID-19 changes, and the Company had been underperforming the TOPIX in the first half of thisyear. However, since the announcement of Q1 results, its stock has been outperforming in response to its solid
business performance.
・ The valuation of the Company’s stock does not seem cheap based on profit excluding extraordinary
income/losses. However, we believe there is an upside to the stock price for the following reasons: further
upward revisions to this fiscal year’s forecasted profit forecasts are likely, there is potential for dividend hikeover the medium term as well, its business is mainly subscription-based and is therefore stable and continuous,and its subscription business has a high growth potential so a growth trend for sales and profit can be expected
over the medium to long term.
Return of Profit to Shareholders
・The Company has been stably paying dividend and has been buying back its shares. In October of this year, a3-for-1 stock split was conducted. Last fiscal year, it paid a dividend of 11.3 yen (retroactively revised for thestock split; 34 yen/share before the split), and it announced in July that this fiscal year it plans to increase
ordinary dividend to 12 yen/share (36 yen/share before the split).
・Currently, there is a difference between its goals for dividend payout ratio (33%) and DOE (2.5%) and theircurrent values. With solid performance, further return of profit to shareholders is possible, including further
dividend hikes, share buybacks, and enhancement of the shareholder benefit program.
2/41
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 First Section)! 9629 PCA

Sector: Information & Communication " Figure A

FY
2018
2019
2020
2021
2022
2022
2023
2024

Issued: 11/22/2021

Sales

YoY

O.P.

YoY

R.P.

YoY

N.P.

YoY

EPS

BPS

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

（%）

(Y )

(Y )

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

9,785
11,43914,266
13,30813,515
13,76013,70015,000

4.5
16.9
24.7
-6.7
1.6
3.4
-0.4
9.5

807
1,248
2,781
2,314
2,586
2,700
2,300
2,600

86.8
54.7
122.8
-16.8
11.8
16.7
-14.8
13.0

834
1,277
2,808
2,340
2,604
2,720
2,320
2,620

79.9
53.0
119.9
-16.7
11.3
16.2
-14.7
12.9

441
906
1,816
1,668
2,310
2,380
1,580
1,780

2021

Q1 Old Standard

2022

Q1 New Standard

2,789

-9.2

3,328

19.3

465

-20.7

975

109.4

471

-21.2

987

109.4

2021

Q2 Old Standard

3,191

-22.1

473

-60.1

488

2022

Q2 New Standard

3,281

2.8

778

64.5

2021

H1 Old Standard

5,980

-16.6

938

2022

H1 New Standard

2021

H2 Old Standard

6,609

10.5

7,328

3.3

2022

H2 CE New Standard

6,906

-5.8

Dividend
（Y ）

174.1
105.5
100.4
-8.1
38.5
42.7
-33.6
12.7

21.46
548.1344.42
596.5990.97
675.81
83.50
791.64115.52119.01
899.31
79.00
966.3189.00 1,043.32

10.33
10.33
18.00
11.33
12.00
12.00
12.00
13.00

272

-25.1

13.66

676.52

0.00

614

125.4

30.75

810.96

0.00

-59.0

317

-61.1

15.85

702.75

0.00

795

62.9

835

163.4

30.75

823.79

0.00

-47.0

959

-46.4

589

-50.0

29.52

702.75

0.00

1,753

86.8

1,782

85.7

1,449

145.9

72.48

823.79

0.00

1,376

36.2

1,381

35.6

1,079

69.1

53.95

791.64

12.00

833

-39.5

822

-40.5

861

-20.2

43.05

―

12.00

(Note 1) CE: the Company’s estimate/forecast. E: Alpha-Win Research Dept.’s estimate/forecast. Q1: April-June. Q2: July-September. H1:
April-September. H2: October-March. Forecasts/estimates for EPS, BPS, and dividend reflect the 3-for-1 stock split conducted on
October 1, 2021 (past years have been revised retroactively).
(Note 2) “Accounting Standard for Revenue Recognition (ASBJ Statement No. 29),” etc. (hereinafter, “the new revenue-recognition
standard” or “the new standard”), have been applied starting in FY 2022. Years previous to this are based on the old standard. The
YoY comparisons for the new standard are comparisons with the old standard so they are for reference only.
(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary.
! Stock Price and Valuation Indicators: 9629 PCA " Figure B
11/22/2021

Item

Item

P/E

P/B

Dividend Yield

Dividend Payout Ratio

Stock Price (Y)1,617Last FY's Results

19.4

2.0

0.7%

13.6%

Shares Outstanding (thou.)

23,100This FY's Forecast

13.6

1.8

0.7%

10.1%

Market Capitalization (million yen)

37,353

Next FY's Forecast

20.5

1.7

0.7%

15.2%

61.6%

Last FY’s ROE

11.4%

Dilutive Shares (thou.)0

Equity Ratio at This FY's Q2-End(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
4.50

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

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
12
/1
6
04
/1
7
08
/1
7
12
/1
7
04
/1
8
08
/1
8
12
/1
8
04
/1
9
08
/1
9
12
/1
9
04
/2
0
08
/2
0
12
/2
0
04
/2
1
08
(M /21
M

/Y
Y
)

300

(Note) From the fourth week of August 2016 to 11/22/2021【Performance】
PeriodReturn vs. TOPIX
1 month-6.3%-8.5%
3 months-10.8%-15.1%
6 months
15.4%
9.0%
12 months
7.0%
-9.5%
(Note) Reflects stock price and index values
up through the closing price on 11/22/2021.
The return for the 1-month period is thecomparison of the closing price on the last
day of October with the closing price on
November 22 as the point of comparison.
The same applies to the other periods.
Prepared by Alpha-Win Research Dept.

(Note) In this Report, the values for the same item may not match completely due to rounding, processing during calculation,
method of display, etc.

3/41This 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 First Section)

Issued: 11/22/2021

Contents
1．Company Overview .......................................................................................................................... P5
Major Specialized Player in the Enterprise System Software Industry .......................................... P5
Business Philosophy ....................................................................................................................... P7
Tagline Renewal ............................................................................................................................... P7
2．Business Description and Business Model ..................................................................................... P8
Enterprise System Software Crucial for Efficient Business Operations ......................................... P8
Business Model with High Continuity and Marginal Profit Ratio ................................................. P8
Highly Stable and Profitable Subscription-Based Business ........................................................... P9
Cloud Business as the Growth Driver ........................................................................................... P10
3．Shareholder Composition .............................................................................................................. P11
Major Shareholder Composition ................................................................................................... P11
4．History of Growth .......................................................................................................................... P13
Company History .......................................................................................................................... P13
Past Transition in Financial Results .............................................................................................. P13
5．Business Environment ................................................................................................................... P16
Trends of the Software Market ..................................................................................................... P16
Comparison with Competitors ...................................................................................................... P17
6．Recent Topics and Overview of Consolidated Subsidiaries ....................................................... P19
PCA Hub Service Started ............................................................................................................... P19
Overview of the Three Consolidated Subsidiaries
Dreamhop Co., Ltd. ................................................................... P20
Xronos Inc. ................................................................................ P21
KEC Corporation ..................................................................... P23
7．This Fiscal Year’s H1 Results and Full-Year Forecast .............................................................. P24
Financial Results for the First Half of FY 2022 (H1) ................................................................................... P24
PCA’s Financial Forecast for FY 2022 (full year) ......................................................................... P27
Alpha-Win Research Dept.’s Financial Forecast for FY 2022 (full year) ...................................... P31
8．Growth Strategy ............................................................................................................................. P32
Management Indicators and Areas of Focus ................................................................................. P32
New Medium-to-Long-Term Vision“PCA Vision 2030: First Stage – 2022 Medium-Term Management Plan” ........................ P32
Alpha-Win Research Dept.’s Forecast of Medium-Term Financial Results ................................ P33
9．Analyst’s View ................................................................................................................................ P36
PCA’s Strengths and Challenges .................................................................................................. P36
Shareholder Return and Shareholder Benefit Program ................................................................. P36
Stock Price and Factors that May Affect Stock Price ................................................................... P38
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 2022
ends in March 2022.

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 First Section)

Issued: 11/22/2021

1. Company Overview◆ Major Specialized Player in the Enterprise System
Software Industry
w Major specialized player
in the industry with 41
years of history,
developing and providing
packaged enterprisesystem software fordomestic small/mediumsized companies

PCA CORPORATION (hereinafter, the “Company” or “PCA”) is anindependent, mid-tier, specialized company in the software industry. The
Company is a specialist in developing and selling packaged software(software prepared for use in certain operations) for enterprise systems1,
such as those for accounting and tax. It is a major player as a specialist insuch software for small/medium-sized companies. Established in 1980, it
has 41 years of history.

(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 andsold Keepdata.

As of the end of May 2021, the Company’s group was composed of a totalof four companies: the Company and three consolidated subsidiaries. The
consolidated subsidiaries are Xronos Inc. (development/sales of work
management system2 and time clocks; the Company founded thissubsidiary in 2001 and owns 80% of the shares), KEC Corporation(implementation support, operation, maintenance, and other services for
PCA’s products/services; wholly owned and founded in 1998 by theCompany), and Dreamhop Co., Ltd. (wholly acquired) that was newly
acquired in October 2020 (details of the business of each subsidiary aredescribed later on pages 20-30).

(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.
(3) New revenue-recognition
standard: “Accounting Standard
for Revenue Recognition” (ASBJ
Statement No. 29) released by
the Accounting Standards Boardof Japan (ASBJ) that incorporates
the concepts of IFRS-15. Large
companies are required to apply
this standard starting in April
2021.
w Consolidated to parentcompany sales ratio has
been around 1.1 to 1.3. The
summed recurring profit of
the consolidated
subsidiaries (consolidated
minus parent) has been asurplus.

The Company had acquired Keepdata Ltd. (hereinafter, “Keepdata”) in
March 2019 as its consolidated subsidiary. It had acquired Keepdata as afoothold for a 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 posting
net losses and had an excess of debt. Therefore, in December 2020, theCompany sold all shares of this subsidiary to a third party. The Company
ended up selling Keepdata less than two years after its acquisition, but thisdecision should contribute positively to consolidated results in terms of
profit/loss starting this fiscal year, since Keepdata’s sales (estimated by
Alpha-Win to be about Y80 million in the previous fiscal year) and net loss
(similarly estimated to be several dozen million yen) will no longer beposted.
The ratio of consolidated to parent-company sales has stably remained ataround 1.1, indicating that a greater weight is placed on the parent
company’s financial results (Figure 1 on page 6). This fiscal year, with thechange to the new revenue-recognition standard3, etc., the ratios for sales
and recurring profit are expected to be 1.3 and 1.2, respectively.

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 First Section)

Issued: 11/22/2021
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 subsidiaries, calculated by consolidated minus parent-company
recurring profit, has been a surplus since FY 2016 (Figure 2).

【Figure 1】Ratio of Consolidated to Parent-Company Sales (ratios shown on upper portion of graph)
Unit: million yen

Sales of parent company

Consolidated sales minus parent company sales

16,000

1.1

1.1

1.1

1.1

1.1

1.1

1.1

14,0001.1

Consolidated
to parent
company
ratio

1.3

887
1,167

12,000

2,891

712
782

10,000

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
10,6242,000
0FY 2014

FY 2019

FY 2020

FY 2021

FY 2022 CE(Ref) Figures 1 and 2 were both prepared by Alpha-Win Research Dept. based on the securities report. CE: the Company’s plan.

【Figure 2】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

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

1.2

N.A

1.6

1.1

1.0

1.2

1.2

1.1

1.2 to parent
company
ratio

402

2,500

396
443

2,000

1,500

1,000

221

500

918

238

59
26

0

2,406
1,897

34

-139

41

FY 2015

FY 2016

-19

800

2,208

1,039

405

-500
FY 2014

w Company name comesfrom how the founding
members were certified
public accountants (CPA).
w Rich in cash. Debt-lessmanagement.

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022 CE

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).
The Company’s finance is firm, rich in cash and debt-less. Relative to its
sales of Y13.5 billion (this fiscal year’s company plan) and total assets of
Y26.8 billion, its debt is zero and it has Y14.1 billion in cash & deposits(values as of the end of September 2021), which is equivalent to 53% of
total assets and 12.5 months’ worth of monthly sales.

6/41This 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 First Section)

Issued: 11/22/2021
Free cash flow (FCF) has been positive except for a certain period, and cash
& deposits on the balance sheet (B/S) have been generally increasing(Figure 3). As the business has become a “cash cow” and further
accumulation of cash & deposits is expected each year, the next challenge
would be to effectively use those cash & deposits. For the financial ratios,
its equity ratio is 61% and current ratio is 211%, also indicating financial
soundness (values as of the end of September 2021).

w Established a cash-cow
business model. Increasing
cash & deposits withpositive FCF.

【Figure 3】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 2021H1 FY 2022 (This H1)

H1 FY 2021 (Last H1)

Operating CF

①

627

488

141

847

1,048

547

1,427

1,533

1,270

2,141

3,328

1,632

1,988

487

Investing CF

②

-405

-127

185

-407

-750

-606

-627

-395

1,715

-80

-719

253

589

163

-207

-210

-205

-215

-216

-284

-214

-215

-216

-572

-225

-355

-247

-376

Financing CF
FCF ( ①+②)

222

361

326

440

299

-60

800

1,137

2,985

2,061

2,609

1,885

2,577

650

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

11,74914,08010,991(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.

◆ 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.

◆ Tagline Renewal
w The new tagline is “When
WORK Changes”

As 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, the Company declares to help improve back-officeproductivity, understand and support working people, and contribute to its
corporate clients’ customer success for their greater development.

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 First Section)

Issued: 11/22/2021

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 forrecording, processing, andintegrated management ofaccounting data
(5) HR and payroll software:
software for payroll calculationsand HR management

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
where 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.

w Provides about 26 types oforiginally developed
packaged enterprisesystem software
w About 90% of sales comefrom originally developed
products and services.

◆ 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) and its business model is based on themass production of a limited number of types of products. Due to the natureof its business, its marginal profit ratio is high. After the application of the
new revenue-recognition standard, its original products and services

8/41
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 First Section)

Issued: 11/22/2021(products/maintenance/cloud) have accounted for greater than 90% of thetotal sales, while the remaining 10% 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
per product. Version upgrades (revision updates), which are prepared asneeded, are released usually in a one- to two-year cycle. In recent years,
however, software functions have become so enhanced that customers now
tend to purchase 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.

w Sales are divided into fivecategories. Focused on thesubscription-based
businesses.

◆ Highly Stable and Profitable Subscription-BasedBusiness

Since FY 2017, all business segments have been consolidated into one, andsales are disclosed for five sales categories (types): “products,”“merchandise,” “maintenance service,” “cloud service,” and “otheroperating revenue (also called “solutions”)” (Figure 4). Profit and loss bysegment are not disclosed.
【Figure 4】Sales Classification (by category)
H1 FY 2022 (results)

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
Other Operating Revenue

Sales (million yen)

% of Total Sales

Est. Gross Margin

1,718

26.0

About 70%

167

2.5

About 40%

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

1,647

24.9

80-90%

Subscription service for software provided via the cloud

2,596

39.3

482

7.3

30-40%

6,609

100.0

Result: 68.2%

Sales of other companies’ products such as ledgers

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

Total & Average60-70%(Ref) Prepared by Alpha-Win Research Dept. based on the securities report and interview. Includes estimates. 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
64% of the total sales.

In recent years, sales of cloud services for the Company’s packaged
software have grown significantly, and the services have become theCompany’s growth driver with regards to both the overall sales and profit.
In FY 2021, sales of the cloud service became the largest by sales category,followed by maintenance service. The sum of these two categories, or“subscription-based revenue” (also called the “stock business” in Japanese),
accounted for about 57% of the total sales. During this fiscal year’s H1, thisratio rose to about 64%, partly also due to the change in the revenuerecognition standard. The maintenance and the cloud services have highgross margins and contract repat rates and have been stable sources of profit,
contributing to a greater stability of business and profit.
On the other hand, sales of products and other operating revenue havetended 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 foraccounting 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.

9/41
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 First Section)

Issued: 11/22/2021
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 software operation type.
However, in line with the medium-term plan, the Company has beenworking with an external IT consultation firm to create and adopt new
performance management indicators to make a transition from sales-based
management to profit-based management. The Company has commented
that the profit margins of each software operation type do not greatly differ
between one another, but the main accounting software business ispresumably 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 advantage.
(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. For
example, since June 2021, theCompany has been providing aplugin that allows nonprogramming linkage between
PCA Cloud and Kintone.
(8) AWS: Stands for Amazon
Web Services; the collective
name for the cloud computing
services provided by Amazon.
“on AWS” is 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-based business model). It is attractive as a stable,
subscription-based business model, similar to the maintenance service(average monthly payment of 20-30 thousand yen per corporate user). As
the cost of this cloud business is largely fixed due to the relatively small
amount of variable costs such as those related to server maintenance,
manufacturing, sales, and logistics, it has a high marginal 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 17,000 corporate users of
the cloud service already; well profitable (already a cash-cow business)
・ Therefore, it has a very strong price advantage compared to competitors
・ More than ten years’ worth of operation expertise・ User-friendly software, with WebAPI6 allowing linkage with othercompanies’ cloud (linkage already possible with about 60 companies,
including Kintone7 of Cybozu)
・In PCA Cloud on AWS8, service is possible 24 hours, 365 days (maxnumber of licenses for simultaneous use expanded from 3 to 72 CAL).
The Company has been focused on the cloud service, and its number ofcontracts as well as sales has been growing steadily (details described later;
see Figure 19 on page 26). Although there was some temporary slowdown
in the growth rate due to the COVID-19 crisis, the business is returning toa strong growth track again and is still believed to continue to be theCompany’s main growth driver.

10/41This 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 First Section)

Issued: 11/22/2021

3．Shareholder Composition◆ Major Shareholder Composition
w No large change to major
shareholders.
w MFS, a major US-based
investment management
firm, bought more sharesand holds more than 6% ofshares.

w Several Japanese andoverseas institutional
investors, etc., seem to beinvesting in the Company
through custodians.

Major shareholders as of the end of September 2021 are shown in Figure 5
on page 12. Compared to the end of March 2021, the top ten major
shareholders have not largely changed, except for custodians (trust banks,etc.).
Massachusetts Financial Services Company (“MFS”) owned 5.22% ofshares as of March 31, 2021, and a statement of large-volume holdings (the“5%-rule” statement) had been submitted. It later purchased more sharesand held 6.23% as of May 31. MFS is one of the oldest investment firms in
the US. It invests globally and its AUM is 610.2 billion dollars (approx. 63
trillion yen as of the end of December 2020). Characterized by a long-term,
active investment style, it has an office in Japan and invests in many
Japanese stocks as well.
Although MFS is not included in the list of major shareholders, it ispresumably investing through several accounts including JP Morgan Chase
Bank at second place (ranking excludes the Company and its treasury
shares; the same applies hereinafter).
The Master Trust Bank of Japan at third place, MSIP CLIENTSECURITIES at fourth place, GOLDMAN SACHS INTERNATIONAL
at sixth place, and Custody Bank of Japan (trust account) at tenth place arealso among the major shareholders. Their final investors and investment
purposes are unknown, but they are predicted to be pure investments by
Japanese and foreign institutional investors and funds. Th change incustodians (trust banks, etc.) indicates that perhaps some of the large
investors or investment funds may have changed.
Regarding investment trusts in Japan, the Company’s shares areincorporated in index funds managed by mainly Sumitomo Mitsui Trust
Asset Management, Mitsubishi UFJ Kokusai Asset Management, and AssetManagement One.

w The largest shareholder isthe founder family’s asset
management company.
w Owns approx. 1,000,000
shares or 13.4% as treasury
sharesw No change to stableshareholders in Japanw Its rival OBC is also thefifth largest shareholder.

Below is supplemental information:
・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). Excluding treasury shares (about 1,000,000 shares or 13.4%
based on the number before the stock split), it possesses approximately 41%
of all outstanding shares.
・The fifth largest shareholder Obic Business Consultants Co., Ltd. (OBC)
is a competitor with whom the Company has no transactions. There has
been no change in the number of shares held.
・The seventh largest shareholder, or the Employee Stock Ownership Plan,
had been selling shares in response to the rising stock price, decreasing thepercent of shares owned. However, with shareholding encouragement
measures, the number of shares held has slightly increased again.
・ The eighth largest shareholder Logic Systems Co., Ltd.’s purpose isunknown.
・The nineth largest shareholder Nagoya PCA Co., Ltd. is a company towhich the Company outsources a part of its software development(SHOKON and other products).

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 First Section)

Issued: 11/22/2021

w There seems to be no
activists 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.

【Figure 5】Current Major Shareholders
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.
GOLDMAN SACHS INTERNATIONALPCA Employee Stock Ownership Plan
Logic Systems Co., Ltd.
Nagoya PCA Co., Ltd.
Custody Bank of Japan (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 ACCOUNTAPPLIED SYSTEM LABORATORY Inc.
Mizuho Bank, Ltd.
BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTSM 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
Hiroko Wada (individual)

Unit for shares owned: thou. 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 Sept.
2021% of Total Shares

848

848

2,935
848

2,935
849

2,736
1,049

2,735
1,045

254

254

254

254

295
254

110
114

119
114
100

127
114
100

127
114
100

254
303
135
114
100

2,736
1,034
338
95
295
254

100
114
100

112
114
100

2,735
1,033
466
330
295
254
126
115
114
100
89

41.05
13.42
6.99
4.96
3.84
3.30
1.64
1.49
1.48
1.29
1.16

Ranking

1
―
2
3
4
5
6
7
8
9
10

154
120
472
89
87
86

121

121

86
121

86
121

121

181
244

181
249

181
266

151
266
90

112
174
94

1,467
1,467
358

1,467
1,467

(Ref) Prepared by Alpha-Win Research Dept. based on the securities report.
(Note) “% of Total Shares” is the percent of shares over the total number of outstanding shares excluding treasury shares. “Ranking” excludes
treasury shares (shares held by PCA).

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 First Section)

Issued: 11/22/2021

4．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 computers(PC) in 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

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 (SaaS9) in 2008.

(9) SaaS (Software as a Service):
software where, as a service, one
can use the necessary function in
the necessary amount whenneeded; 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.

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. Also, since the Company meets the requirements of
the Prime Market that will be newly established, it is expected to move to
the Prime Market.

w Changed its market listingfrom the Second to theFirst Section of the TSE in
Dec. 2014. Expected tomove to the Prime Market.

◆ Past Transition in Financial Results
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 6. The
following is supplemental information on the financial results inchronological order:【Figure 6】Long-Term Transition in Financial Results
w Has been generally
Sales (left axis)
Recurring Profit (right axis)
increasing sales over the(million yen)(million yen)
16,0003,000
long term. Profit had
2,808
2,604
temporarily weakened, but
2,340
14,266
14,000then recovered in a V2,500
shape.
12,00011,4391,783
10,000

8,000

1,565

1,539
1,290

1,396

1,227

1,218

1,084

1,181

10,475
1,582
1,392
1,181

7,551

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

6,805
6,383
798
6,269
6,006 6,336
1,139
724
5,597
5,095
5,441
4,827
6,275
4,762
4,867
6,167
3,5414,551
3,232
4,000
5,026
5,867
501 384
3,017
6,000 660 565

794

13,308 13,515
2,000

834

935

1,500

1,000

463
500
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
FY 20
20 21
22
CE

0

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. Estimate/forecast(CE) for FY 2022 is from the Company’s plan (based on new revenue-recognition standard).

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 First Section)

Issued: 11/22/2021
・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 a while,
being unable to maintain or exceed the level of profit that it had once
achieved.

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.
w Results weakened after the
Lehman shock. In FY 2014,
record-high sales wereachieved (Y10 billion) due
to event-driven highdemand.
(10) 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 Net loss posted for two
consecutive fiscal years in
FY 2015 and FY 2016,
partially in reaction to theprevious event-driven highdemand.

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

・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 reaction to 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 ERP10 (integrated
enterprise system) product Dream 21 (former product name).
・The decline in sales for four consecutive years from FY 2007 to FY 2010,
as well as the decline in profit for seven consecutive years from FY 2007
to FY 2013, was caused by decreased demand due to the post-Lehman
economic downturn and by increased personnel, R&D, and sales promotion
expenses, as well 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) largely due to decreased sales in reaction to theprevious event-driven high demand 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 7 on page 15). This was due to increased
price competition from intensified competition among packaged softwaredevelopers during the economic downturn, worsened product mix from arise in the percentage of other companies’ less-profitable goods, and higher
costs especially for labor costs, production expenses (subcontractor costs),
and R&D costs.
・However, since FY 2016, the Company has been increasing sales again
and the decline in operating margin had stopped. Operating marginbottomed out 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 forseveral years, including the disposal of assets with impairment risk (realestate and securities) and shortened software amortization period.
・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.

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 First Section)

Issued: 11/22/2021

w Turned to sales/profit
growth trend starting in FY
2016. Stable net profit. Vshaped recovery of results.

・ 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 due to economic
recovery. Since FY 2017, the Company has generally been stably andcontinuously making and increasing profit.

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 profit.

・In FY 2020 (the fiscal year before the previous), 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 grew significantly, hitting their record highs.
・Then, in reaction to this event-driven high demand, sales dropped in
FY2021. However, sales were still higher than the previous high level thatit had achieved in FY 2019 before the event-driven high demand.

w For the past six fiscal years
including this fiscal year,
its profit results haveexceeded its initial plan.
Revisions to financial
forecasts have often beenannounced in Septemberor the next year’s February
to April.

・As reference, the Company's initial forecast and actual results in the past
are compared in chronological order (Figure 8). Although the actual
results have sometimes greatly deviated from the initial forecast, since FY
2017, actual profit has tended to largely exceed the initial forecast. Notethat past announcements of revisions to financial forecasts have often
been made in September or February to April of the following year. Thisfiscal year, it announced upward revisions with the announcement of H1
results in October (for details, see “Full Year” on page 29).

w Improving profit margin【Figure 7】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

63.0

60.0

65.9
60.3
53.5

51.0

57.0

54.5

60.3

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
-2.2

0.0

0.5

4.6

19.1

17.4

10.9

8.2

-10.0
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
CE

【Figure 8】Comparison of the Company’s Initial Financial Forecast and Actual Results in Chronological Order
Consolidated

Sales

Unit: million yen

Initialforecast

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 (CE)

5,634
5,104
5,521
6,096
6,870
6,860
6,790
6,800
6,500
5,908
6,505
7,025
8,641
9,198
8,880
9,731
9,876
10,486
12,783
13,28012,447

Actualresult
5,026
4,762
5,095
5,595
6,005
6,383
6,336
6,274
6,268
5,867
6,166
6,805
7,550
10,474
8,168
8,440
9,360
9,785
11,43914,266
13,30813,515

Operating Profit
Initialforecast
1,321
1,294
1,141
878
806
56
284
453
242
165
645
825
1,478
2,034
1,866

Actualresult
1,224
925
1,073
1,170
1,551
1,747
1,533
1,325
1,117
744
686
468
354
1,110
-179
40
432
807
1,248
2,781
2,314
2,586

Recurring Profit
Initialforecast
1,215
1,015
1,125
1,293
1,780
1,550
1,365
1,360
1,200
927
835
84
311
483
272
187
669
842
1,499
2,055
1,899

Actualresult
1,227
935
1,083
1,181
1,565
1,783
1,582
1,391
1,181
797
724
501
383
1,138
-157
66
463
834
1,277
2,808
2,340
2,604

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

Initial forecast
589
653
769
1,059
922
812
809
714
519
381
29
141
283
131
51
425
588
976
1,358
1,192

Sales

695
533
576
682
915
327
852
644
680
436
411
75
181
604
-207
-93
160
441
906
1,816
1,668
2,310

Simple average of difference (unit: %), calculated based on the longest period with available data for sales & profits (excluding this FY) →Pink highlight:
Second highest

Green highlight:
Record highFrom initial forecast, "upward revision : downward revision" (unit: # of times) (excl. this FY) →Operating
ProfitRecurring
ProfitNet Profit

Difference from initial forecast

Actual result

Operating Recurring
Net Profit
ProfitProfitSales

YoY change in actual results-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%
8.6%
38.6%
37.1%
93.8%
-0.9%

74.4%

40.9%

58.9%

8 ： 12

8：6

13 ： 7

9 ： 10

-5.3%
7.0%
9.8%
7.3%
6.3%
-0.7%
-1.0%
-0.1%
-6.4%
5.1%
10.4%
10.9%
38.7%
-22.0%
3.3%
10.9%
4.5%
16.9%
24.7%
-6.7%
1.6%
5.7%

-24.4%-23.8%-23.3%
16.0%
15.8%
8.1%
9.0%
9.0%
18.4%
32.6%
32.5%
34.2%
12.6%
13.9%
-64.3%-12.2%-11.3% 160.6%-13.6%-12.1%-24.4%-15.7%-15.1%
5.6%-33.4%-32.5%-35.9%
-7.8%
-9.2%
-5.7%
-31.8%-30.8%-81.8%-24.4%-23.6% 141.3%
213.6% 197.1% 233.7%
To loss
To loss
To loss
To profit To profit To profit
980.0% 601.5% -272.0%
86.8%
80.1% 175.6%
54.6%
53.1% 105.4%
122.8% 119.9% 100.4%-16.8%-16.7%
-8.1%
11.8%
11.3%
38.5%
74.9%

52.7%

26.0%

↑ Simple average for each period(excluding this FY)(Ref) Figures 7 and 8 were prepared by Alpha-Win Research Dept. based on the financial results summary. The FY 2022 forecasts/estimates (CE)are from the Company’s plan. (Note) The new revenue-recognition standard is applied starting in FY 2022.

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 First Section)

Issued: 11/22/2021

5． 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 Active software investment
among small/mediumsized and mid-tiercompanies. Improving
market environment.

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 the other hand, companies and organizations have been working on
rebuilding or strengthening their enterprise systems, as they have been
faced by increasingly serious needs for human resources and have beenworking on improving operational efficiency and financial performance.
Although the number of small/medium-sized companies will likely
continue to decrease, we predict that the size of the enterprise system
software market will steadily increase over the medium to long term as thedemand for software to streamline business operations increases.

Current Situation: BOJ Tankan
According to the Bank of Japan Tankan for September 2021, software
investment (planned amount) in 2021 by small/medium-sized companies(all industries) came out to be +26.7% YoY (breakdown: +57.4% formanufacturing and 15.2% for non-manufacturing), with investment by
especially manufacturers expected to increase significantly. Mid-tiercompanies are also showing similar trends, planning to increase investment
by +15.2% (+59.5% and +8.0%, respectively). Compared to the previous
survey in June, software investment by small/medium-sized companies (allindustries) have been revised upward by +5.9%, which is greater than the
mid-tier companies’ revision of +0.6%. The Company's customer base, or
small/medium-sized companies, seems to be starting to be eager ininvesting in software.
For the survey on the business sentiment of small/medium-sized companies,
the “recent” sentiment improved from the December 2020 survey’s -18 to-8, and “outlook” also improved from -23 to -10, indicating that thenegative business sentiment is weakening (same for mid-tier companies).
Regarding profit plans, profit margins are expected to improve comparedto the previous fiscal year. Although there is still some concern that apotential slowdown may occur in the second half (“H2”), significant
increases in profit are expected for the full fiscal year and the percent ofrevision from the previous survey is also in the positive direction, indicatingthat improvement of sentiment is likely.

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 and its size had been
gradually expanding. However, since the outbreak of COVID-19, there
seems to be some temporary stagnation in growth.
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. Y110 billion. Annual
growth rate is predicted to be about 3% and 10%, respectively, over the
medium term.

16/41
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 First Section)
w Market potential of cloudbased enterprise system
software in Japan is stilllarge.

Issued: 11/22/2021
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 2017 version of the “WHITE PAPER,” thepenetration rate of the cloud in Japan is approximately 26% for “payroll /financial accounting / HR” and only 6-8% 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 rateof 20% per year over the medium to long term as it replaces a part of theoutsourced system development 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 9 is an overview of the various positions and main players of theindustry, categorized by customer zone. 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 9】Target Customers and Main Players of the Enterprise System Software Market(Ref) Excerpt from past financial results briefing materials, partially edited by Alpha-Win Research Dept.

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

w The Company provides
high-quality products andservices at reasonable
prices.

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 private companies, Yayoi(subsidiary of ORIX), OHKEN (independent company), and OSK(subsidiary of OTSUKA CORPORATION) are its direct competitors.
The Company is characterized by its high-quality but reasonably priced
products and services.
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 First Section)

Issued: 11/22/2021

w Its key product or theaccounting software has
the third largest share in
the market.

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.

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

In the cloud accounting market, the two companies Money Forward (TSE
Mothers 3994; providing cloud services such as household accounting
application for individuals and accounting software for companies) andfreee (TSE Mothers 4478; providing ERP services or cloud accounting
software for small businesses) are also its competitors among listedcompanies. Both target one-person businesses and small companies such as
small/medium-sized companies and SOHOs. They directly compete with
the Company in specific areas.

Profitability Comparison of 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 10 and 11. Compared to the Company, both margins
are stable for OBC and MJS, presumably due to the economies of scale (thesales of OBC and MJS are about 2.5x and 2.8x greater than the Company,
respectively, and similarly their operating profit is about 6.0x and 1.6x
greater, respectively, based on the companies’ forecasted values for thisfiscal year) and the difference in the sales composition (the percentage of
support service sales, etc.).

利益率や資産効率は、【Figure 10w】
Long-Term Transition大in the
きく改善。
Gross Margin of Three Major Listed
Companies (PCA, OBC, and MJS)
PCA

（％）

OBC

MJS

90.0
85.0

83.4

84.2

84.0

66.4

66.8

66.1

65.9

65.0

84.4

83.7

84.3

84.8

65.2

66.3

84.7

84.4

84.0

82.5

83.8

60.3

60.1

83.7

79.0

80.0
75.0

70.1

70.0
65.0
60.0

61.8

59.5

55.0

64.4
63.2

63.0
62.3

64.0

66.3

65.9

63.6
57.0

60.3

54.5

53.5

57.8

62.1

59.6

51.0

50.0
45.0
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
CE(Ref) Figures 10-12 were prepared by Alpha-Win Research
Dept. based on the securities reports. Estimates/forecasts(CE) are from the companies’ business plans.

Both competitors used to have a lower contract rate for the maintenancesupport service but succeeded in strategically raising this rate, resulting ina greater earning power. However, the Company too has been moving its
focus toward the subscription business in recent years, and as a result, its
profit margin has been increasing to levels that are high compared to past
years’ performance as well. It plans to continue to aim for greater earning
power.
Similarly, the transition in the Company’s ROA and ROE, shown in Figure
12, indicates that its capital efficiency has also been significantly improving.
In the most recent fiscal year, the Company was about average among thethree companies in terms of those ratios (actual results for FY 2021, in theorder of ROA and ROE: compared to 9.7% and 11.4% for PCA, 9.2% and7.8% for OBC and 11.1% and 13.6% for MJS).

【Figure 11】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

OBC
43.2

41.7

MJS

42.7

（％）

ROA

16.0
14.0

14.3
11.4

44.4
41.4

43.2

44.2

45.3

10.0

13.0
8.8

6.0

28.0

16.3
17.8

10.0
4.3

12.7

11.1

10.3

10.9

10.8

11.3

12.9

6.9

0.0

14.7
10.9

4.6

10.6

19.5

15.6
8.2

6.2
8.0

16.5

13.3

19.1

10.8

-10.0
FY 2010

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

4.0

2.0

4.8
3.5

4.0

0.0

0.7

2.6

5.2

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021 FY 2022 CE

FY
2010

FY
2011

FY
2012

FY
2013

6.8

3.9
-1.0
-1.8

FY
2009

9.7

2.9
0.4

1.7

-4.0

-2.2
FY 2009

6.3

5.2

-2.0

0.5

4.7

5.8

4.0
17.4

7.8

7.2

8.0

20.0

ROE

12.0

40.0

30.0

【Figure 12】Transition in the Company’s ROA and ROE

FY
2014

FY
2015

1.5

-0.9
FY
2016

FY
2017

FY
2018

FY
2019

FY
2020

FY
2021

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

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 First Section)w PCA Hub centered around"PCA Hub eDOC" isscheduled to start service
in February of next year.
Cloud service fordocument managementthat also supports theapplication of theElectronic Books
Maintenance Act.
w Monthly-subscriptionbased business model(11) hyper (PCA hyper): newsoftware for mid-tier companies
as a successor to Dream21.
Targets the approx. 90,000
companies in Japan with sales of
1 to 10 billion yen, less than orequal to 1,000 employees, andless than 10 subsidiaries in thecorporate group. A superiorversion of the DX series. Its
unique features: the user can
flexibly select between the onpremises and the cloudaccording to their stage of
growth, make flexible linkage
with other systems using API,and streamline data
management within an entire
corporate group (consolidated
accounting).
(12) [The revised] Electronic
Books Maintenance Act: A lawthat allows the storage ofnational-tax-related books anddocuments as electronic data.
Scheduled to come into effect inJanuary 2022. Its purpose is toimprove productivity andconvenience, as well as
promoting paperless operation
and remote work.
(13) JIIMA certification: “Legal
Requirements Certification
Program for Scan-Store
Software in Applying theElectronic Books Law”
administered by the Japan Image
and Information Management
Association (JIIMA). Checks
whether commercially available
software meets the requirementsof the Electronic Books
Maintenance Act and certifies
those that have been judged tomeet the legal requirements.

Issued: 11/22/2021

6．Recent Topics and Overview ofConsolidated Subsidiaries◆PCA Hub Service Started
PCA Hub (hub as in “center of something”), which has been developed inhouse for some time, has been completed and is scheduled to start service
in February 2022.
PCA Hub is a group of services centered on "PCA Hub eDOC," a cloudbased document management service. It is also linked with the PCA DX
series and the hyper11 series, and provides the tool for centrally managing
business-related documents to optimize business efficiency. As shown in
Figure 13, these services will promote the digitization and paperless
operation of fund management, accounting management, labor
management, and more. It also supports the application of the Electronic
Books Maintenance Act12 (planning to acquire the JIIMA certification13).
In addition, though effective utilization of the data accumulated from these
services using visualization, analysis, AI-linkage, etc., the Company aims
to create new values. Through the new values, it hopes to contribute to thecustomer success of especially small/medium-sized companies, which are
its current customers.
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 as astable source of revenue.
【Figure 13】Overview of the Service Lineup of PCA Hub eDOCの ROA、及び ROE の推移

Monitoring / abnormal
value detection
Automatic deposit
check

Automaticjournal entries

Expensesettlement

Budgetmanagement

Labor
management

Pay slip

Work shift
management

Year-end tax
adjustment

Talent management(recruit/place/train/evaluate,
etc.)(Ref) Financial results briefing materials

19/41
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 First Section)

Issued: 11/22/2021◆Overview of the Three Consolidated Subsidiaries
Figure 14 summarizes the current conditions of the three consolidated
subsidiaries. Each company's sales (excluding internal sales between
consolidated companies) account for less than 10% of consolidated sales.
The summed profit/loss of the consolidated subsidiaries (Figure 2 on page
6; based on difference between consolidated and parent recurring profit)
has stayed at a surplus. The performance of individual companies isgenerally not disclosed, but among the three companies, Xronos’
contribution to consolidated results is presumably the largest due to positive
impact from the work-style reforms. Xronos, as well as KEC with its stablebusiness, seems to be posting profits and offsetting Dreamhop’s net loss.

w Summed profit/loss of theconsolidated subsidiaries
has been a surplus.
w Dreamhop’s loss
compensated by the othertwo subsidiaries【Figure 14】Overview of Consolidated Subsidiaries
Overview of Consolidated Subsidiaries
Company Name

Dreamhop Co., Ltd.

Xronos Inc.

KEC Corporation

Headquarters Location

Create Bldg, 1-8-10 Iidabashi, Chiyoda-ku, Tokyo

15th Floor, Sumitomo Fudosan Akihabara Ekimae Building, 300 Kanda
Neribeicho, Chiyoda-ku, Tokyo

4th Floor, PCA Building, 1-2-21 Fujimi, Chiyoda-ku, Tokyo

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

Business Description

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

Customers

FoundedPCA Corporation; Hongo Tsuji Tax & Consulting; Ministry of Health,Labour and Welfare; Ministry of the Environment; Ministry of Land,
Number of accounts using Xronos Performance: 1,710,000
Infrastructure, Transport and Tourism; Tokyo Metropolitan Government;
Number of accounts using X'sion: 431,784
Kanagawa Prefecture; Saitama Prefecture; Chiba Prefecture; City of(Both as of the Nov. 15, 2021)
Yokohama; Osaka City; City of Sapporo; and other governmentorganizations and private companies. Used by companies and organizationsof 10-100,000 people.
October 2020 (date acquired; founded in June 2005)

May 2011 (business acquired)

More than 20,000 companies (in Japan)

April 1988

Capital Stock (million yen)

56.5

60

10

Percent of Shares Owned by PCA

100%

80%

100%

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

15

111

42

Sales (for the most recent period)

Not disclosed

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

Not dislocsed
Same as PCA

Management Policy

Same as PCA

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

Consolidated Sales Category

Other operating revenue

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

Most other operating revenue, plus products, merchandise, maintenance,and cloudWebsite URL

https://www.dreamhop.com/

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

https://www.kec-sp.com/page1(Ref) Prepared by Alpha-Win Research Dept. based on each company’s website and interview

w Acquired Dreamhop, acompany focused on stresscheck services.
(14) Stress check: The revision in
the Industrial Safety and HealthAct has required workplaces with50 or more employees to
conduct stress checks of its
employees starting in December
2015. Checks are conducted on aregular basis, and the results arenotified to the individual. The
purpose is to reduce the mental
health risk of each person as wellas improving the workplaceenvironment.
w Plans to increase synergy
within the PCA Group andexpand the HR business

w Has an excellent customer

base including thegovernment, variousorganizations, and large
companies in the private
sector. Strong track record.

◆Dreamhop Co., Ltd.
Overview of Dreamhop Co., Ltd.
In October 2020, the Company (PCA) acquired Dreamhop Co., Ltd.
(hereinafter, “Dreamhop”; headquartered in Shinjuku-ku, Tokyo;
Toshiyuki Mukuno as the new president; established in June 2005; capitalof Y56.5 million after capital increase; 15 employees) for approx. Y108
million as a wholly owned subsidiary.
The Company believes that its HR solutions must urgently be strengthened
to sustainably grow as a Management Support Company. For this purpose,
the Company acquired Dreamhop, with whom synergy in the development
and expansion of business connections as well as cross-selling and upselling can also be expected.
Dreamhop is a small-sized company specialized in services and business
management related to mental health and health management, with a focus
on stress check services14. It has unique programs and expertise and offers
full management of the programs on behalf of its corporate customers (fordetails of business/service, see pages 13-14 of our company report issued
on June 9, 2021).
Dreamhop’s tests have been conducted at more than 10,000 offices. Afterthe stress check, contracts have been made with more than 1,200
organizations (the government and companies in the private sector).
Currently, more than 1 million people are using its service.
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 First Section)

w Dreamhop posted a net
loss due to upfront
investment costs. Excess indebt was relieved throughan increase in capital.

Issued: 11/22/2021

Financial Performance
Dreamhop's financial performance disclosed in its past news release issummarized in Figure 15. In the most recently disclosed financial results
for the fiscal year ended May 2020, sales grew but a net loss was posted:sales were Y129 million (+16.5% YoY) and net loss was Y38 million (a net
profit of Y0.2 million was posted in the previous fiscal year). There wasalso an excess of debt by Y20 million. These results seem to have been due
to increased upfront investment costs and fixed costs for the expansion ofsystems and businesses. Also, after the acquisition, PCA increased
Dreamhop’s capital by Y80 million and the excess in debt seems to havebeen relieved.

【Figure 15】Transition in Dreamhop’s Financial Results
Unit: million yen
Sales
Operating Profit
Net Profit
Net Assets
Total Assets
Net Assets Per Share (yen)FY ended May 2018
104
2
0
17
102
10,507(Rounded to the nearest unit)

FY ended May 2019
111
4
0
18
86
10,645

FY ended May 2020
129
-39
-38
-20
74
-12,383(Ref) Prepared by Alpha-Win Research Dept. based on the news releasew Conducted rebranding andthe expansion of service
lineup after theacquisition. Also adopted
the subscription model.

Regarding its business, its mental health program was rebranded and theservice lineup was also expanded. The price system for its main service isa monthly subscription payment based on price per user and other factors,
combined with the price of options.

w Became a consolidated
subsidiary, but due toworsened financial
performance, goodwill wasrecorded as extraordinary
losses in a one-time
amortization.

Dreamhop's financial results for the previous fiscal year (ended May 2021)
is not disclosed, but its loss seems to have worsened due to costs from
employee retirements and upfront investment costs (its fiscal year has beenchanged to be March-ending). Starting this fiscal year (FY 2022 ending
March 2022), Dreamhop’s results will be fully included in the consolidated
results (of the PCA Group). Due to the worsened financial performance ofDreamhop, PCA recorded the remaining goodwill of Y174 million entirely
as impairment loss under extraordinary losses for this H1.

w Hopes to gain net profit
within several years.
w Small sized, with relatively
heavy fixed costs. To gain
net profit, top line growthwould be necessary.

Going forward, Dreamhop’s sales are planned to be increased by using PCAGroup’s sales force and development capabilities to increase its customers,
while also working on the streamlining of business. Net profit is hoped tobe achieved within several years. We should wait for the Company toannounce drastic reconstruction measures and growth strategies.

◆Xronos Inc.

w Xronos is a major player inwork management
systems.
w Provides service as onpremises and on the cloud.
Its strength are its strong
products and flexibility inmeeting customer needs.

Overview of Xronos Inc.
Xronos conducts development, sales, and maintenance of work
management (or attendance management) systems and time clocks. It is amajor player in the market and has a high market share among mediumsized companies with 100 to 999 employees.
It provides work management software (automatic tabulation of working
hours, creation of data linked to payroll software, etc.) as an on-premises
product (product name: Xronos Performance) and on the cloud (service
name: X'sion). In either format, there seem to be a little less than 10companies providing such services. Xronos’ strength is its ability toflexibly make proposals according to customer needs and environment in

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 First Section)

Issued: 11/22/2021
combination with external devices such as time clocks (product: Teletime
series).
Its main customers include the Company (PCA), Miroku Jyoho Service,
OHKEN, Mitsubishi Electric IT Solutions, Daiwabo Information System,
and NTT Data Sekisui Systems.

w Growing sales partly
owing to the work-stylereformFinancial PerformanceIts sales have been solid and were Y1.5 billion in FY 2019, Y2.1 billion in
FY 2020, and Y2.16 billion in FY 2021 (fiscal years are March ending;Figure 16). Sales plan for FY 2022 has not been disclosed, but sales andprofit growth are expected. In FY 2025, the company is planning to achievesales of Y4 billion (according to Xronos’ former website).
Thanks to the tailwind from the work-style reform, Xronos’ business with
its work management system has been solid. Among PCA’s three
consolidated subsidiaries, it presumably has the largest sales and profit.
Profit is not disclosed, but it seems to be maintaining profit and generally
increasing sales and profit, thus contributing to the Company’s consolidated
financial results.
【Figure 16】Change in Xronos’ Sales (Rounded to the nearest unit)(thousand yen)
2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021(Ref) Prepared by Alpha-Win Research Dept. based on information on Xronos’ website.
(Note) Xronos was founded in May, so sales for FY 2012 are for the 11 months through March 2021.

w SaaS for work management
is a growing market.

Market Environment and Competitors
Although the work management market has about 30 major players and is
not a blue ocean market, it is expected to continue to grow steadily inbusiness areas related to work-style reforms. In particular, in the form of
SaaS (cloud), double-digit annual growth is expected.
The main competitors by service content are as follows (in parentheses are
the names of the competing products or services; in the case of listedcompanies, the listed market and securities code are also shown).
・Competitors in the three areas of packaged software, SaaS, and timeclocks:OHKEN (Shugyo Daijin NX and Shugyo Daijin NX Cloud), Kinjiro(previously Nittsu System; Kinjiro Enterprise Shugyo), and Hitachi
Solutions (Lysithea / work management）

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.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 11/22/2021
・Competitors in the two areas of packaged software and time clocks:
Amano (TSE First Section 6436: Time Pro-XG Shugyo, Time Pro-VG
Shugyo, Time Pro-NX Shugyo, and Time Asset), and Obic (TSE First
Section 4684: OBIC7 Work Information System)
・Competitors in SaaS only:
Human Technologies (King of Time), DONUTS (Jobcan), and jinjer(previously Neo Career: jinjer attendance management system)w Planning for full-scale
entry into the market
targeting small companies

Strategy Going Forward (excerpt from Xronos’ website)
There is plenty of room for market development in business toward small
companies with 10 to 50 employees. Therefore, Xronos plans to prepare
new products and expand its market share through full-scale entry. In
addition, its cloud service sales have exceeded its on-premises sales andhave grown to account for 26% of Xronos’ total sales. It is aiming toincrease this proportion to greater than 50% in 2025, the final year of its
medium-term plan. Its strategy is also to create replacement demand by
developing a new time clock.

◆KEC Corporation
w Centered on PCA’s
packaged software,
providing instructor
support for software
implementation, etc.

KEC provides specialized services (useware business: a general term fortechnologies and services necessary for utilizing information systems suchas computers and the Internet), centering on PCA’s packaged businesssoftware. Specifically, it provides instructor support for implementing
PCA’s and other partnered companies’ packaged software, sells businesssoftware, provides consulting service and data migration support related tocomputer system implementation and operation, and provides
implementation and operation support for network environments and cloudenvironments.
Its business performance is affected by sales and renewals of products,
contract status of the maintenance and cloud services, sales of related
equipment, and the COVID-19 crisis since its services are mainly provided
face-to-face. However, it is a stable business and seems to be stably
profitable.

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 First Section)

Issued: 11/22/2021

7．This Fiscal Year’s H1 Results and Full-Year
Forecast◆ Financial Results for the First Half of FY 2022 (H1)
Overview of H1
w Strong H1 results.
Although a simple
comparison cannot bemade due to the change inthe revenue-recognition
standard, sales and profits
grew significantly YoY.
Both sales and profits are
the second highest levelsin the Company’s history.

w Based on the previous
standard, sales and profits
have essentially hit their
H1 record highs.

w H1 forecast had not been
disclosed, but sales andprofits seem to haveexceeded the company
plan. Replacement demand
for the products and thecloud business were thedrivers of growth.
w Progress against the
upwardly revised, newfull-year forecast is alsohigh compared to past rates
of progress.

w Product mix improved, and
SG&A expenses ratio also
decreased. Due to sales
growth and improved
profit margins, profit
nearly doubled. Extremely
strong results.
w Dreamhop’s goodwill wasrecorded under
extraordinary losses in a
one-time amortization, but
this was offset by the gainon sales of securities.

Consolidated financial results for the first half of FY 2022 (AprilSeptember 2021) were as follows: sales were Y6,609 million (+10.5%
YoY), operating profit was Y1,753 million (+86.8% YoY), recurring profit
was Y1,782 million (+85.3% YoY), and net profit attributable to owners of
the parent was Y1,449 million (+145.9% YoY; hereinafter, “net profit”),
resulting in large, double-digit increases in sales and profits (Figure 17 on
page 25). These results are the second highest level in the Company’s
history after the record-high sales and profits achieved in H1 of the fiscal
year before the previous (FY 2020) which had fully benefited from the highdemand driven by two events (early demand in response to consumption
tax revision and end of support for Windows 7). Note that the rates of YoYchange have not been adjusted for the change in the revenue-recognition
standard and are for reference only.
As reference, if we take into account the change to the new revenuerecognition standard and correct this H1’s results to the previous standard,sales will increase by Y854 million to Y7,463 million (+24.8% YoY), andoperating profit and recurring profit will each increase by Y120 million toY1,873 million (+99.7% YoY) and Y1,902 million (+98.3% YoY),
respectively. These corrected values all exceed the Company’s record highsfor H1.
Although the Company had not disclosed its forecast for this H1, sales andeach of the profit seem to have largely exceeded the Company's internalplans (sales seem to have exceeded the plan by about +Y850 million andoperating profit by about +Y940 million). Compared to the Company's
upwardly revised full-year forecasts, the progress in H1 was 48.9% for sales,
67.8% for operating profit, and 62.7% for net profit. These each greatly
exceed the progress of 44.9%, 40.5%, and 35.3%, respectively, in H1 of theprevious fiscal year as well as the average sales progress of 45.2% andoperating profit progress of 39.0% for the past 16 years.
This solid performance is due to the greater-than-expected replacement
demand in response to the upcoming end of support for the PCA X series(scheduled for December 2021), which had led to strong sales of products(DX series), and the high growth maintained for the sales of the cloud eventhough the prior forecast had been set at a somewhat conservative value.
Additionally, in terms of profit, the product mix had improved due toincreased sales of profitable in-house products and growth of the highly
profitable cloud business, resulting in a YoY increase in the gross margin(61.3% → 68.2%; +6.9%). Also, since expenses were suppressed during
the COVID-19 crisis, the actual amount of SG&A expenses stayed mostly
flat (Y2,727 million → Y2,753 million; +Y26 million or +1%), andconsequently the sales growth led to a decrease in the SG&A expenses ratio
from 45.6% → 41.7%. Similarly, the operating margin improved
significantly from 15.7% → 26.5% (+10.8%). As a result, operating profit
and recurring profit almost doubled YoY. Also, while the goodwill ofDreamhop was recorded as impairment loss of Y174 million under
extraordinary losses, the Company had sold some of the listed securities

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 First Section)

Issued: 11/22/2021
that it had owned and recorded Y673 million as extraordinary income. This
made the net profit growth rate even higher.

【Figure 17】Change in Financial Performance for H1 FY 2022 (Q1 and Q2)
H1 Results

Q1 FY 2021

Q1 FY 2022

Q2 FY 2021

Q2 FY 2022

H1 FY 2021

H1 FY 2022

% Change in H1

Difference in H1% of H1 sales overtotal sales

Unit: million yen

April-June 2020

April-June 2021

July-Sept. 2020

July-Sept. 2021

April-Sept. 2020

April-Sept. 2021

YoY: %

YoY: million yen%

Consolidated Sales
Sales Category
Gross Profit
SG&A Expenses
Operating Profit
Recurring Profit
Net Profit(Unit: million yen, %)Products
Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue
Gross Margin (%)
SG&A Expenses Ratio (%)
Operating Margin (%)
Recurring Margin (%)
Net Margin (%)

Old revenueNew revenueOld revenueNew revenueOld revenueNew revenuerecognition standard recognition standard recognition standard recognition standard recognition standard recognition standard
2,789
3,328
3,192
3,281
5,981
6,609
307
935
420
783
727
1,718
77
85
98
82
175
167
899
820
877
826
1,776
1,646
957
1,255
991
1,340
1,948
2,595
546
231
805
250
1,351
481
1,756
2,284
1,909
2,222
3,665
4,506
63.0
68.6
59.8
67.7
61.3
68.2
1,290
1,309
1,437
1,444
2,727
2,753
46.3
39.3
45.0
44.0
45.6
41.7
465
975
473
778
938
1,753
16.7
29.3
14.8
23.7
15.7
26.5
272
987
687
795
959
1,782
9.8
29.7
21.5
24.2
16.0
27.0
272
614
317
835
589
1449
9.8
18.4
9.9
25.4
9.8
21.9

Last H1 = old standard, this H1 = new standard
10.5
136.2
-4.8
-7.3
33.2
-64.4
22.9
1.0
86.8
85.7
145.9

628
991
-8
-130
647
-870
841
6.9
26
-3.9
815
10.8
823
10.9
860
12.1

100.0
26.0
2.5
24.9
39.3
7.3

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary.

w Significant YoY growth inboth Q1 and Q2. Q1
growth was especiallylarge, with doubled profit,
thanks to event-driven
high demand for the
products. Somewhat
decreased momentum inQ2.

By quarter, Q1 sales were Y3,328 million (+19.3% YoY) and operating
profit was Y975 million (+109.7% YoY), while Q2 sales were Y3,281
million (+2.8% YoY) and operating profit was Y778 million (+64.5%
YoY). Both in Q1 and Q2, there were significant YoY increases in sales
and profit. However, the growth momentum declined in Q2, resulting in a
Y47 million decrease in sales and a Y197 million decrease in operating
profit compared to Q1. This was because there was greater event-driven
high demand related to sales of products during Q1, which also led togreater improvement in profit margins. Also, Q2 had greater SG&A
expenses than Q1 (+Y135 million).

H1 SalesFigure 18 summarizes the factors that increased or decreased sales in H1
compared to the previous fiscal year’s H1 (overall sales growth of +Y628
million). Analyzing the increase or decrease in sales since the previous H1
by sales category, sales of products had increased by Y990 million(+136.2% YoY) and cloud sales had increased by Y646 million (+33.2%
YoY). These offset the categories that were greatly negatively impacted by
the change in the revenue-recognition standard; sales of solution and otherhad decreased by -Y869 million (including sales decline of -Y724 million
due to the change in standard) and sales of maintenance had decreased by Y130 million (-Y120 million from the change in standard). By company,
regarding the summed sales of products + cloud, sales of the Company
alone increased by Y1,227 million and Xronos increased by Y456 million,
contributing significantly to the results.

w Event-driven high demand
for the products and thegrowth of the cloudbusiness were the driversof growth. Xronos also
contributed to the results.

【Figure 18】Increase/Decrease in Sales by Sales Category in H1 FY 2022 (ended September 2021)(million yen)

9,000

Increase

8,500

Impact of change inaccounting standard
-120

8,000
7,500

6,000

6,609

-130

-869

5,980
PCA

5,500

PCA

+935

5,000

Xronos+64

4,500

Impact of change inaccounting standard

-9

4,000

646

8

990

7,000
6,500

Impact ofchange inaccounting
standard-724

Decrease

H1 FY 2021

Products

Merchandise+292

Xronos +392

Other

Main tenance

-38

Cloud

Solution and Other

H1 FY 2022

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing materials.

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 First Section)

Issued: 11/22/2021
Cloud
The number of corporate users of PCA Cloud reached 10,000 in FY 2018.
Then, the number reached 11,331 by the end of September 2018, 12,313 by
the end of March 2019 (compared to half a year ago: +982), 13,343 by theend of September 2019 (+1,030), 14,388 by the end of March 2020 (+1,045),
15,262 by the end of September 2020 (+874), 16,444 by the end of March
2021 (+1,182), and 17,785 by the end of September 2021 (+1,341),
increasing steadily (Figure 19).

w The number of corporate
users of PCA Cloud has
been increasing steadily.
More than 17,000 users
now.

The semi-annual comparison indicates that the net increase in the numberof users had temporarily slowed down for some time due to the impact of
COVID-19, but the net number of corporate users has been increasing overthe past two half-year periods thanks to the increasing penetration of thecloud service among users. This net growth speed also has been maintained
as the Company entered the second half, and the Company hopes tomaintain the net growth in corporate customers at more than 2,000
companies per year for the meanwhile.

w Number of corporate usersof PCA Cloud is also
currently increasing
steadily.

As a result, the cloud’s sales have been expanding from Y1,496 million in
FY 2017 → Y1,854 million in FY 2018 (+Y358 million or +23.9% YoY)
→ Y2,452 million in FY 2019 (+Y598 million or +32.3% YoY) → Y3,374
million in FY 2020 (+Y922 million or +37.6% YoY) → Y4,057 million in
FY 2021 (last fiscal year) (+Y683 million or +20.2%). In H1, sales
increased by +33.2% YoY to Y2,595 million at an accelerated sales growthrate (sales growth rates: +24.3% in the previous H1 and +16.7% in theprevious H2). This growth seems to reflect the increase in the number ofcorporate users, the increase in the number of licenses including options,and the increase in cloud sales of Xronos.

w In H1, cloud sales
increased by 33% YoY at anaccelerated growth rate.
w The Company and Xronos’
products and the cloud had
contributed to the sales
growth.

【Figure 19】Change in the Sales of PCA Cloud and the Number of Companies thatHave Implemented PCA Cloud
30,0009,000

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

Number of companies that have implemented PCA
Cloud (left axis: companies)

17,785 corporate
users as of theend of Sept. 2021

8,000
7,000

20,000

6,000
5,000

15,0004,000
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
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
E
E
E
(Note) Sales from FY 2008 to FY 2010 have not been disclosed. Estimates are partially included in the number of companies thathave implemented PCA Cloud.

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

w The proportion of thesubscription businesses’
sales increased further to
62% of the total.

Subscription-Based BusinessFor subscription-based revenue (combined sales of the maintenance service
and the cloud), which is one of the Company's key performance indicators,
its percentage over total sales has been generally increasing over the past
five years excluding H1 of FY 2020 when there was a sharp increase inproduct sales due to event-driven high demand. This fiscal year, theproportion was 65.2%, increasing further from 62.3% in the previous fiscal
year. This was because subscription-based revenue had increased due to the

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 First Section)

Issued: 11/22/2021
high growth of the cloud, while the new revenue-recognition standard had
caused the one-time-payment-based revenue of solution and other to appear
to decrease significantly.

w SG&A expenses had
increased slightly, andsales growth had
contributed to the profit
growth. In-house products
and the cloud with highprofit margins contributed
to the large profit growth.

ProfitFactors that contributed to an increase or decrease in consolidated operating
profit in H1 are shown in Figure 20. While SG&A expenses have been kept
as planned, sales of in-house products and the cloud service with high profit
margins had increased, resulting in the achievement of a significant
increase in profit.
Although there was a decrease in cost of sales, as well as an increase insales promotion and advertising expenses (+Y67 million YoY) and anincrease in other SG&A expenses (+Y74 million YoY), R&D expenses had
decreased (-Y115 million YoY), resulting in only a slight increase in the
SG&A expenses. Sales growth had contributed largely to the profit growth,and operating profit increased significantly by Y814 million or +186.9%
YoY.
【Figure 20】Factors that Increased/Decreased Operating Profit in H1
FY 2022 (ended September 2021)
Sales

Cost of sales

Operating profit

SG&A expenses(million yen)

2,500

Increase
391

2,000

628
1,500

1,000

Decrease
115

-133
-45

1,753
-74

-67

938

500

Profit grew by Y814 million (186.9%) YoY
0A

H1 FY 2021

A in sales
Increase

A in cost
Increaseof cloudA
Decreaseinpurchase cost ofsales

AIncreaseinothermanufacturing
expenseA in sales
Increasepromotion andadvertisingexpensesA
Decreasein
R&D expenses

A
Increaseinother SG&A
expensesA

H1 FY 2022

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

◆ PCA’s Financial Forecast for FY 2022 (full year)
w Sales and profit decline
expected in H2

w Sales of cloud andproducts expected toincrease in H2 too. The“gap down” due to the newrevenue-recognition
standard is expected tohave a large impact on
solution and other andbecome a sales decreasing
factor.

Second Half (H2)The Company also announced its financial forecast for the second half (H2)of this fiscal year (October 2021 to March 2022) when it announced its
financial results for H1. It expects sales to be Y6,905 million, operating
profit to be Y833 million, recurring profit to beY822 million, and net profit
to be Y861 million.
Although a simple comparison cannot be made due to the difference in therevenue-recognition standard, compared to the previous H2, the Company
is expecting sales to decrease by Y422 million (-5.8%), operating profit todecrease by Y543 million (-39.5%), recurring profit to decrease by Y559
million (-40.5%), and net profit to decrease by Y218 million (-20.2%).
Regarding sales, as shown in Figure 21 on page 28, the cloud is expected
to continue to perform well in H2 and replacements of the DX series
products are expected to continue in response to the upcoming end of
support for the X series. Consequently, the Company expects sales of cloud
to increase by Y752 million (35.7%) and sales of products to increase by
Y530 million (42.8%), totaling an increase in sales by Y1,282 million.

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 First Section)

Issued: 11/22/2021
On the other hand, sales of solution and other are expected to decreasesignificantly by Y1,466 million (-78.2%), which includes the expected
negative impact of Y802 million due to the change in the accounting
standard. In addition to this, small sales declines are expected for themerchandise, by Y83 million (-27.1%), and for maintenance, by Y156
million (-8.8%).

【Figure 21】Expected Increase/Decrease in Sales by Sales Category in H2 FY 2022
(million yen)

8,500

Increase

8,000

530
-83

7,500

752

Decrease

-156

7,328

6,905

7,000

-1,466
6,500
Impact of changein accounting
standard
-802

6,000

H2 FY 2021

Products

Merchandise

Main tenance

Cloud

Solution and Other

H2 FY 2022 Plan

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

w Operating profit expected
to decline in H2 due to thesales drop was well as theplanned increase in
expenses such as personnel
expenses and upfront
investments.

Regarding operating profit, although the decrease in the cost of purchase,etc., are expected to increase profit by Y555 million, large negative impacts
are expected due to the sales decline by Y422 million, increase in sales
promotion and advertising expenses by Y316 million, and increase invarious costs by Y261 million. Consequently, the Company expects
operating profit to decrease by Y543 million (-39.5%) from Y1,376 million
in the previous H2 to Y833 million in this H2 (Figure 22).
Due to solid H1 results and the anticipated improvement of businessenvironment, the Company has decided to increase sales promotion
expenses by Y200 million and personnel expenses (recorded as othermanufacturing expense and SG&A expenses) by Y120 million compared
to its initial plan as part of its active upfront investment for growth startingin the next fiscal year. As a result, operating profit in H2 will be reduced by
Y320 million compared to its actual value.
Taking this into consideration, as well as the impact of the new accounting
standard on earnings in H2 (estimated be 20-30 million yen), operating
profit in H2 is estimated to be essentially a little less than Y1,200 million,
meaning that it would only be about 14% less than Y1,375 million of theprevious fiscal year.
(million yen)

【Figure 22】Factors that Are Expected to
Increase/Decrease Operating Profit in H2
FY 2022

1,500

Cost of sales

Sales

1,700

Operating profit

SG&A expenses

555
1,375

-49

1,300

1,100

-316
-422

900

-23

-25

833
Increase-261

Decrease

700500(Ref) Prepared by Alpha-Win Research Dept. from thefinancial results briefing materials.

H2 FY 2021
A
ResultDecreaseAin
sales

Increase
A in costof cloud

Decrease
A inpurchase cost of
sales

Increase
A in
othermanufacturing
expenseA in sales
Increasepromotion andadvertisingexpenses

Increase
inA
R&D
expenses

IncreaseinAother SG&A
expenses

H2 FY
A 2022Plan

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 First Section)

Issued: 11/22/2021

w Gross margin expected to
improve YoY in H2, but
SG&A expenses ratio will
increase. Operating margin
predicted to decreasesignificantly.

w Compared to H1, althoughsales growth is expected,
due to the sharp increase in
SG&A expenses, the profit
margin is expected to
decline. Operating profit
expected to be halved.

By improving the product mix, the Company expects the gross margin in
H2 to improve by 4.4 percentage points from 59.2% in the previous H2 to63.6%, but it also expects the SG&A expenses to increase by Y601 million
from Y2,960 million to Y3,561 million. Consequently, the SG&A expenses
ratio is expected to increase by 11.2 percentage points from 40.4% to 51.6%,
and the operating margin to decrease by 6.7 percentage points from 18.8%
to 12.1%. This decrease in profit margin and the sales drop are expected tolead to decreased profit. In Q3, gain on sales of securities is expected to berecorded as Y500 million in extraordinary income. As a result, net profit ispredicted to be kept to a Y218 million decline (-20.2%), from Y1,078
million to Y860 million.
Compared to H1, sales are expected to increase by Y296 million (+4.5%),
but the gross margin is expected to decrease by 4.6 percentage points, while
the SG&A expenses will increase sharply by Y808 million (+29.3%) withan increase in the SG&A expenses ratio by 9.9 percentage points. As aresult, operating profit is expected to decrease by Y920 million (-52.5%),
and the operating margin is expected to worsen by 14.4 percentage points.

Full Year
Based on the solid performance in H1, the Company has revised its forecast
for this full fiscal year (FY 2022) significantly upward from its initial
forecast: sales from Y12,447 million → Y13,515 million, operating profit
from Y1,866 million → Y2,586 million, and net profit from Y1,192 million→ Y2,310 million (Figure 23).

w Major upward revision to
full-year forecast.

w Although sales drop of 6.5% and operating profit
drop of -19.4% had been
expected, the Company
now expects 1.6% sales
growth and large operating
profit growth of 38.6%.

Although a simple comparison with the previous fiscal year cannot be madedue to the change in the revenue-recognition standard, it appears that for
the full fiscal year the Company now expects sales to increase by 1.6%
instead of decline by 6.5% and operating profit to increase by 11.8% insteadof decline by 19.4%.
When the impact of the new revenue-recognition standard on businessresults (estimated to decrease sales by about Y1.7 billion and operating
profit by about Y150 million for the entire year) is taken into account, thefull-year forecasts for FY 2022 (the current fiscal year) are estimated to be
Y15.2 billion for sales (+14% YoY) and Y2.7 billion for operating profit(+18% YoY). Sales are essentially expected to hit a record high andoperating profit to be close to its record high.

【Figure 23】Financial Forecast for This Fiscal Year (the Company’s plan)
FY 2021

Consolidated (unit: million yen)

Sales
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)New revenue-recognition
standard

FY 2022

Results (old
Initial company
YoY: Simple YoY: Simple
revenue-recognition
forecast
diff. (amount)diff. (%)
standard)
A
13,308
8,001
60.1%
5,686
42.7%
2,314
17.4%
2,340
17.6%
1,668
12.5%
11.33

12,447
7,690
61.8%
5,824
46.8%
1,866
15.0%
1,899
15.3%
1,192
9.6%
11.33

-861
-311
1.7%
138
4.1%
-448
-2.4%
-441
-2.3%
-476
-3.0%

-6.5%
-3.9%
2.4%
-19.4%-18.8%-28.5%

New revenue-recognition
standard

FY 2022

Revised company
YoY: Simple YoY: Simple
forecast
diff. (amount)diff. (%)
B
13,515
8,901
65.9%
6,315
46.7%
2,586
19.1%
2,604
19.3%
2,310
17.1%
12.00

207
900
5.7%
629
4.0%
272
1.7%
264
1.7%
642
4.6%

1.6%
11.2%
11.1%
11.8%
11.3%
38.5%

FY 2022Amount ofrevision
B-A% ofrevision
B/A

1,068
1,211
4.1%
491
-0.1%
720
4.1%
705
4.0%
1,118
7.5%
0.67

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

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.

8.6%
15.7%
8.4%
38.6%
37.1%
93.8%

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 11/22/2021
The factors that are expected to increase sales or profit in the full fiscal year
are shown in Figure 24 and Figure 25, respectively (sum of H1 results andH2 forecast). Comparing the full-year sales forecast with the initial plan
(corrected version), the Company has revised its overall sales upward by
Y1,068 million or 8.6%. Looking at the breakdown by sales category,
maintenance, solution and other, and merchandise have been revised
downward by Y112 million, Y47 million, and Y50 million, respectively,
while the products have been revised upward by Y1,059 million (+43.3%
revision) and the cloud has been revised upward by Y214 million (+4.1%
revision) (Figure 26).

w With the gain on sales of
securities, the final profit isexpected to hit a record
high.

Regarding profit, compared to the initial forecast, it revised each profit
significantly upward since it expects the gross margin to improve by 4.1
percentage points, the SG&A expense ratio to improve by 0.1 percentage
point, the operating margin to improve by about 4.2 percentage points, sales
to increase, and gain on sales of securities to be recorded under
extraordinary income. The final profit is expected to hit a record high.

【Figure 24】Factors that Are Expected to
Increase/Decrease Sales in FY 2022 (company plan)【Figure 25】Factors that Are Expected to Increase/Decrease
Operating Profit in FY 2022 (company plan)(million yen)(million yen)

Sales

4,000

16,500

Increase

16,000Decrease

Cost of sales

946

3,500

1,398

15,000

1,520

2,313

2,500

-75

14,500

206

2,586

-383

-335

-70

2,000

-286
14,0001,500

13,514
13,500

92

-182

3,000

15,500Operating profit

SG&A expenses

13,308-2,335

Increase

Decrease5
Increaseinothermanufacturing
expense6 in sales
Increasepromotion andadvertisingexpenses

1,000

13,000500

12,5000

12,000FY 20211Result2
Products

3
Merchandise

4
Maintenance

5
Cloud

6 and
Solutions
Other

FY 12021
Result7 PlanFY 2022

2
Increasein sales3 inIncreasecost of cloud4
Decreaseincost ofpurchase,
etc.

7Decreasein
R&D
expenses8
Increaseinother SG&A
expneses

FY92022Plan(Ref) Figures 24 and 25 were prepared by Alpha-Win Research Dept. based on the financial results briefing materials.

【Figure 26】Change in Sales and This Fiscal Year’s Forecasted Sales Breakdown by Category (Unit: million yen, %)Cloud

Maintenance

Solution

Merchandise

Products
Old
accounting
standard

16000

14,266

11,439

12000
10000

9,360
8,440

8000

1767
854
1639

955
1740

4000
2000
0

3026
1152

3098
1496

1954
988

2516
563

552
3701

3471
3109

1854

13,308101.6%

3506

143.3.％

176.6.％

1985
485

2447

3227

443
938

393
891

88.7％
95.0％
95.0％

27.6%

3377

3265

96.7％

91.9％

5242

5456

104.1％

134.5％

81.0％

3552

3124

2452

3374

4057

% of Total

13,515
12,4472781

1878

108.5％

Subscription-Based
Revenue

6000

2069

9,785

3166

YoY
ChangeOne-Time-Payment
Based Revenue

14000

Diff. frominitial forecastNew
accounting
standard

2016年
2017年
2018年
2019年
2020年
2021年
2022年
FY
FY
FY
FY 2022年
FY
FY
FY
FY
2016

2017

2018

2019

2020

2021

2022

2022

Initial

Revised

CE

CE(Ref) Edited and prepared by Alpha-Win Research Dept based on the financial results briefing and financial results summary. (CE) is theCompany’s forecast/estimate.
(Note) The accounting standard for the posting of sales as merchandise or solution had been partially changed in FY 2020, and adjustments
were retroactively made for FY 2019 according to this 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 there is no continuity insales between the old and the new standards except for the cloud and merchandise. “% of Total” is based on the company forecast for FY
2022 (after revision) that uses the new revenue standard.

30/41This 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 First Section)

Issued: 11/22/2021◆ Alpha-Win Research Dept.’s Financial Forecast for FY
2022 (full year)

w We reviewed our forecast
for this fiscal year, andrevised down sales andprofits. Dividend wasraised to the same amountas the Company’s forecast.

w Sales of products and thecloud were revised up,
while other operating
revenue was revised down.

w Due to downward revisionof sales forecast and theincrease in upfront
investment, we revised our
profit forecasts downward.
However, our forecast is
still higher than the
Company’s conservative
forecasts for profit.

w The risks are the sixthwave of COVID-19 which
may cause economic
stagnation, slowed IT
investment, and struggles
with new products andservices.

Summary・Although the new company forecast for this fiscal year after the upwardrevision on October 25 did not reach the values of our previous forecast(described in the report issued on August 3, 2021), it greatly exceeds theinitial company forecast made the beginning of the fiscal year.
・Based on the H1 results and the current situation, we reviewed our forecast
for this fiscal year (Figure 29 on page 34). While we lowered sales andprofits compared to our previous forecast, we revised annual dividend
upward to the Company's forecast of 12 yen/share. However, since the salesof the cloud and the products are continuing to be solid, the Company's
estimates seem conservative, and we believe that the full-year results havethe potential to exceed the Company's forecasts for both sales and profits.

Sales
In our previous forecast, we had expected full-year sales to be Y14,200
million, but we have now revised this to Y13,760 million. However, thisforecast still excceeds the new company forecast by Y245 million (+1.8%).
The main difference between our previous and current forecasts is thatwhile the the sales of products and the cloud were revised upward due totheir greater-than-expected performance, we had revised downward theother operating revenue (solution and other) in which recovery had
previously been expected. This reflects the slow recovery of the sales ofsoftware and hardware of other companies and the Company's slow
progress with its new businesses.
ProfitFor profit, too, we revised our forecast to reflect the increased upfront
investment of Y320 million in H2, which had not been initially expected,
and in accordance with the revision of sales. In the order of previous →current forecast, we reduced operating profit from Y3,330 million →Y2,700 million and net profit from Y2,475 million → Y2,380 million.
However, as mentioned above, the current situation is solid and theCompany’s plan for H2 seems somewhat conservative. More cost control
seems possible, too, especially for the SG&A expenses. Therefore, we
predicted that profits will exceed the Company forecast by about Y114
million (+4.4%) or Y70 million (+3.0%), respectively.
Risk Factors
In the medium-term financial forecast including this fiscal year, the main
risk factors are the occurrence of the sixth wave of COVID-19 (outbreaksof mutants types, etc.) and its prolongation leading to another stagnation of
economic activities, as well as weaker financial performance of corporate
users that will cause them to refrain from purchasing products and services
or postpone software implementation.
However, regarding the existing services, their financial results so far showthat the Company has been able to adequately overcome the difficult
situation, and they will most likely not present large issues during H2 too.
Progress may possibly not be made as planned, though, in customer
acquisition and sales of the new services such as PCA Subscription(subscription-based use of downloaded software), healthcare-related
services, hyper, and PCA Hub, and also in the business restructuring ofDreamhop.

31/41This 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 First Section)

Issued: 11/22/2021

8．Growth Strategy◆ Management Indicators and Areas of Focus
In 2012, the PCA Group announced management indicator goals of Y20
billion for sales (as reference, the actual result in FY 2021 was Y13.3
billion), 2.5% for DOE (FY 2021: 1.5%), and 80,000 corporate users of thecloud service (a little less than 18,000 companies as of the end of September2021), and has been developing its business in line with this plan.

w As its management
indicators, it has set goals
for sales, DOE, and thenumber of cloud users.

To achieve these goals, it has set out five areas of focus: 1) grow evengreater as the No. 1 player in the cloud-based enterprise system software
market, 2) enhance the solutions business to provide more than simple
functionality, 3) enhance PCA Cloud with greater leading-edge
technologies, 4) pursue the shift to services, and 5) actively conduct M&As.

w Has set out five areas offocus, planning to further
strengthen the cloud,provide solution-services,and work on M&As.

◆ New Medium-to-Long-Term Vision “PCA Vision
2030: First Stage – 2022 Medium-Term Management
Plan”
Since the Company will reach a milestone in the year 2030 as its 50th
anniversary, in November 2018 it announced the “PCA Vision 2030: First
Stage – 2022 Medium-Term Management Plan.” There has been no change
to this plan since then.
w In the current mediumterm plan, it is aiming tobecome a solutionproviding service provider
and is focused on creatinga firmer earnings base andmanagement foundation.

The Company has been working on its basic policy for the medium term,
which has been set forth in the Medium-Term Management Plan (FY 2020
– FY 2022) as “transform our business structure and build the foundation
for continuing and developing businesses that are both long-term andstable.” Aiming to become a solution-providing service providor, theCompany has been creating a firm earnings base and managementfoundation through enhancement of its original products, cloud services,and maintenance services. As a result, the Company seems to havesucceeded in getting its business on a growth path.
The basic strategies, priority measures, and progress of the current mediumterm plan are described in Figure 27. The Company has been making
progress with its priority measures, including the strengthening of PCA
Cloud through the release of the onAWS version, launch and sales
expansion of the hyper series, launch of PCA Subscription, development of
new areas such as HR through the acquisition of Dreamhop, preparation for
the introduction of new KPIs and management system, and strengtheningof the R&D system.

w Executing measures mostly
along schedule under thebasic strategies of themedium-term plan.

【Figure 27】Basic Strategies, Priority Measures, and Progress of the Medium-Term Plan (recap)
Overview of Our Four Basic Strategies (recap)
I. Establish a strong revenue base for the core businesses
1. Strengthen PCA Cloud and expand its sales

PCA Cloud offers an extensive lineup and an operational expertise of more than 10 years of service. By
focusing on areas such as improving brand power, acquiring Web-API partners, and enhancing service
functions, we will establish a firm market position and a strong revenue base as one of our core businesses.
Expand sales through the release of the onAWS version (May 2021)

2. Strengthen the on-premises businessTo strengthen the on-premises business (sales/maintenance of the on-premises products), we will review
our products, service systems, etc., based on our users’ needs.

Greater market penetration of PCA Subscription (launched in July 2020)

II. Create new business opportunities
To create a new revenue base for the future, we will create a team for discovering the seeds of new
products and businesses in areas related to new technologies such as AI, big data, RPA, and Fintech. We
will thereby accelerate the progress with our initiatives for the new business opportunities.

Developing new areas of business → Acquisition of Dreamhop (HR business expansion)

III. Strengthen the management foundation to build a high-profit structure
To continue to further improve our earning power, we will work on improving and strengthening ourmanagement foundation, including our management plan and profit management system, while reflecting
the changes in the business environment.
Shift to a new HR system and operational IT infrastructure

IV. Strengthen monozukuri (creation of ‘things’)
We will build a corporate structure that will boost our potential to create PCA brand products and services
with originality, innovativeness, user-friendliness, and other features that “only PCA can provide.” We willtransform and strengthen our foundation for “monozukuri.”Integrated planning, development, and verification(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 First Section)

Issued: 11/22/2021
In FY 2020, the first year of the current medium-term management plan,
the initial medium-term management goals for the final year of the plan
(FY 2022) were achieved. Consequently, last fiscal year, the Company
revised the goals upward (Figure 28). These revised goals, too, are expected
to be fully achieved during this fiscal year.

w Numerical goals for FY
2022, the final year of thecurrent medium-term
plan, had been revised
significantly upward, but
are expected to be largely
exceeded.

Consequently, this fiscal year, the Company plans to conduct a part of theinvestment that is planned for the next medium-term management plan thatwill start next fiscal year. The next medium-term management plan will
likely be announced after late April 2022 (when the full-year financial
results will be announced), and its strategy and numerical targets should be
noted. In the next medium-term management plan, the Company plans tostart "developing our company’s structure for creating new businesses,
products, and services ahead of changes in the society.”w This FY, a part of the
upfront investment
planned for the next
medium-term plan
starting next FY will be
conducted.

【Figure 28】Targets of the Medium-Term Management Plan and Their Actual or Forecasted Progress
Current Medium-Term Management Plan (FY 2020 - FY 2022)
1st Year of
Current Plan
Target Items of the Medium-Term Plan
・ Consolidated Sales

2nd Year of
Current Plan

3rd Year of Current Plan = Final Year (FY 2022)

FY 2020 Result FY 2021 Result

Initial Goal (A)Last FY's Revision (B)Current Outlook (C)Difference (B-A)

Y14.266 billion Y13.308 billion≥Y11.5 billion≥13.5 billion

Y13.515 billion

Y2.0 billion

Y15 million

Of which are sales from subscription-based businesses(maintenance & cloud)Difference (C-B)

Y6.845 billion

Y7.609 billion

Achieve Y6.0 billion

Achieve ≥7.5 billion

Y8.721 billion

Y1.5 billion

Y1.221 billion

・Consolidated Operating Profit

Y2.781 billion

Y2.314 billion≥Y1.5 billion≥Y2.1 billion

Y2.586 billion

Y600 million

Y486 million

・Consolidated Operating Margin19.49%

17.39%

≥10%

≥15%

19.1%

5%

4.1%

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results briefing materials.
(Note) “Accounting Standard for Revenue Recognition,” etc. (new revenue-recognition standard), have been applied starting in the company planfor FY 2022. The previous standard was used through FY 2021. Plan refers to the plan announced by the Company.

w Reviewed our forecast for
next fiscal year onwards aswell

w当調査部では、中期の年間利益成長率をw Expecting
economic
5~8％予想。
activities to graduallynormalize in FY 2023

w We reviewed our sales andprofit forecasts and revised
them downward.
w Next fiscal year, sales andprofit drops may occur in areactionary decline fromthis fiscal year’s eventdriven high demand, but
we expect high levels ofsales and profits to be
maintained.
w High growth expected to be
maintained for the cloud◆Alpha-Win Research Dept.’s Forecast of Medium-Term
Financial Results
We had made medium-term financial forecasts for the three fiscal years
including this fiscal year (FY 2022 – FY 2024) (Figure 29 on page 34), but
upon considering this fiscal year’s situation, we revised down our forecasts
for next fiscal year and beyond as well.

Next Fiscal Year (FY 2023)
Since strong progress has been made with COVID-19 vaccinations in Japanand the COVID-19 crisis is starting to settle down, we predicted thatpeople’s lives, economic activities, and IT investments by small/mediumsized companies will gradually and almost fully normalize starting in thenext fiscal year.
Although there will no longer be a “gap down” due to the new revenuerecognition standard, temporary sales and profit drops are expected due tothe following factors:
1. Product sales are expected to decline relative to this fiscal year’s highreplacement demand for the X series (sales have been greater than expected,
with estimated event-driven demand of approx. Y1.7 billion for the current
fiscal year).
2. The launch of new products and services have been slow.
3. Sales of other operating revenue, which had been expected to recover,were revised down in a conservative prediction.
4. In the next medium-term management plan which is expected to beannounced at the beginning of the next fiscal year, the Company may
increase upfront investment for future growth and various costs in the next
fiscal year, the first year of the plan (see “Estimates for Expenses and Profit”
explained later on page 35).

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.

Alpha-Win Company Research Report
PCA (9629 TSE First Section)

Issued: 11/22/2021
5. The gain on sales of securities that is scheduled to be posted this fiscal
year (a little less than +Y1.2 billion) will most likely no longer be present.

w High growth expected to be
maintained for the cloud

However, since the cloud business (PCA + Xronos) is expected to continue
to grow at a high rate, and IT investments are expected to recover as the
economy normalizes, we believe that the overall sales decline rate will be
kept small and that high levels of sales and profits will likely be maintained.
We revised our forecast for the next fiscal year from our previous forecast(see our report issued on August 3, 2021) as follows: sales of Y14,400
million → Y13,700 million, operating profit of Y2,950 million → Y2,300
million, and net profit of Y1,863 million → Y1,580 million. However, eventhough we had made downward revisions, compared to our new forecasts
for this fiscal year, we are expecting a slight decrease in sales by -0.4%, adecrease in operating profit by a little less than -15%, and a decrease in net
profit by -33.6%. We also predicted that dividend will be 12 yen/share,
which is the same as the forecast for the current fiscal year.

【Figure 29】Medium-Term Financial Forecast
Unit: million yen, %Sales

FY 2020 Result FY 2021 Result
14,266
13,3083,166
1,985
Merchandise
552
485
Maintenance Service
3,471
3,552
Cloud Service
3,374
4,057
Other Operating Revenue
3,701
3,227
Gross Margin
60.3%
60.1%
SG&A Expense
5,817
5,686
(% over sales)
40.8%
42.7%
Operating Profit
2,781
2,314
(% over sales)
19.5%
17.4%
Recurring Profit
2,808
2,340
(% over sales)
19.7%
17.6%
Net Profit for the Year
1,816
1,668
(% over sales)
12.7%
12.5%
Category

Products

Sales (% YoY growth for all values)
Category

Products
Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue

Gross Margin (% YoY diff.)
SG&A Expense (% growth)
Operating Profit (% growth)
Recurring Profit (% growth)
Net Profit for the Year (% growth)

24.7%
25.8%
-2.0%
11.1%
37.6%
33.1%
3.3%
10.3%
122.8%
119.9%
100.4%-6.7%-37.3%-12.1%
2.3%
20.2%-12.8%-0.2%-2.3%-16.8%-16.7%-8.1%

FY 2022 Old CE
12,447
2,447
443
3,377
5,242
938
61.8%
5,824
46.8%
1,866
15.0%
1,899
15.3%
1,192
9.6%
-6.5%
23.3%
-8.7%
-4.9%
29.2%
-70.9%
1.7%
2.4%-19.4%-18.8%-28.5%FY 2022 Revised CE FY 2022 Revised E FY 2023 Revised E
13,515
13,76013,700
3,506
3,700
2,700
393
390
350
3,265
3,270
3,050
5,456
5,500
6,600
891
900
1,000
65.9%
65.5%
65.7%
6,315
6,320
6,700
46.7%
45.9%
48.9%
2,586
2,700
2,300
19.1%
19.6%
16.8%
2,604
2,720
2,320
19.3%
19.8%
16.9%
2,310
2,380
1,580
17.1%
17.3%
11.5%
1.6%
76.6%
-19.0%-8.1%
34.5%-72.4%
5.7%
11.1%
11.8%
11.3%
38.5%

3.4%
86.4%
-19.6%-7.9%
35.6%-72.1%
5.4%
11.2%
16.7%
16.2%
42.7%

-0.4%
-27.0%-10.3%
-6.7%
20.0%
11.1%
0.2%
6.0%
-14.8%-14.7%-33.6%FY 2024 Revised E
15,000
2,900
300
2,900
7,800
1,100
65.3%
7,200
48.0%
2,600
17.3%
2,620
17.5%
1,780
11.9%

FY 2022 Old E
14,200
3,500
400
3,150
5,050
2,100
65.0%
5,900
41.5%
3,330
23.5%
3,360
23.7%
2,475
17.4%

FY 2023 Old E
14,400
2,500
380
3,050
6,200
2,270
62.5%
6,050
42.0%
2,950
20.5%
2,980
20.7%
1,863
12.9%

FY 2024 Old E
15,680
2,600
330
2,900
7,500
2,350
62.5%
6,200
39.5%
3,600
23.0%
3,630
23.2%
2,269
14.5%

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

6.7%
76.3%
-17.5%-11.3%
24.5%-34.9%
4.9%
3.8%
43.9%
43.6%
48.4%

1.4%
-28.6%
-5.0%
-3.2%
22.8%
8.1%
-2.5%
2.5%
-11.4%-11.3%-24.7%

8.9%
4.0%-13.2%
-4.9%
21.0%
3.5%
0.0%
2.5%
22.0%
21.8%
21.8%

(Note 1) “Old” refers to the previous forecast and “Revised” refers to the current, new forecast. CE is the Company’s forecast. E is Alpha-Win’s forecast.
(Note 2) “Accounting Standard for Revenue Recognition,” etc., have been applied starting in FY 2022. The previous standard was used through FY 2021. FY
2022 onwards are based on the new standard, so there is no continuity with the past years with some exceptions.
(Ref) Prepared by Alpha-Win Research Dept.

w For FY 2024, forecasts wererevised downward, but
sales and profit growth isexpected.
w The cloud and the products
were revised upward,
while other operating
revenue was revised
downward.

w A large upfront investment
for future growth isexpected.

Fiscal Year After the Next (FY 2024)
In the fiscal year after the next, we believe that as economic activities getback on track, the Company will enter a phase in which its subscription
businesses will continuously and stably expand. In addition, as the COVID19 crisis settles down, the Company is expected to be able to resume sales
acitivities and full on-site support for its customers. Therefore, if the new
businesses can be put on track, we believe that the Company can return toa growth trend for sales and profits.
For FY 2024, the fiscal year after the next, we also revised our forecast as
follows: sales of Y15,680 million ⇒ Y15,000 million (+9.5% YoY),
operating profit of Y3,600 million ⇒ Y2,600 million (+13.0% YoY), andnet profit of Y2,269 million ⇒ Y1,780 million (+12.7% YoY). While thecloud and the products were revised upoward, we reviewed the predicted
contribution by the new businesses to the results, and revised otheroperating revenue downward. In addition, since costs of upfront investment

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 First Section)
w Over the medium term, in
addition to the growth rateof the existing cloudbusiness, results may beaffected by whether the
new products/services will
succeed.

w We somewhat
conservatively expect thatthe gross margin willremain about the same andthe operating margin will
decrease by about 2-3%.

w Development of new
products and technologies
and increase in the numberof employees are expected
to increase upfront
investment costs.

Issued: 11/22/2021
for future growth may be increased, SG&A expenses have been revised
upward and the SG&A expenses ratio was also revised.
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 in its areas of focus, which are PCA Subscription, hyper,
PCA Hub which it is currently working on, and the HR business withDreamhop.
Estimates for Expenses and Profit
In our forecasts for FY 2023 and FY 2024, we predicted that the productmix will improve but the gross margin will remain almost unchanged dueto the increase in development costs, outsourcing costs, etc. On the other
hand, we estimated the SG&A expenses ratio to rise to around 48-49% dueto the increase in expenses, which had previously been suppressed, in
response to the normalization of economic activities, and also due to active
upfront investments. Consequently, we predicted that the operating margin
will be lower than the forecast for this fiscal year.
In moving to the next medium-term management plan in FY 2023, wepredicted that the Company will increase its upfront investments, including
reinforcing business foundation in preparation for future growth,developing new products, researching technologies necessary for thatdevelopment (virtualization technology, AI, Web API, and FinTech-linked
technology), and increasing employees for that purpose. Therefore, we
predicted that SG&A expenses will increase, especially regarding the sales
promotion, R&D, and personnel expenses.
Merchandise sales will continue to decline as more companies go paperless,and sales of maintenance services will also continue to drop due to the shift
to the cloud. However, the increase in cloud sales, improvement of productmix with the increasing sales and proportion of the cloud, the shift ofvarious businesses to the subscription-based business model, and theprogress with rationalization of business may lead to improved profitability
after the upfront investment phase ends.

w With the subscriptionbased businesses as thegrowth driver, annual
profit growth rate is
expected to be about 8-10%
over the medium term.

Profit Growth Rate over the Medium/Long Term
Over the medium to long term, based on normalized figures excluding theeffect of event-driven high demand, we are expecting a high annual sales
growth rate of around 6-8% and an even greater final profit growth rate (810% per year). Since the cloud business (subscription business), which is
the Company’s core business as well as its growth driver, has a highmarginal 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 First Section)

Issued: 11/22/2021

9．Analyst’s View
◆ PCA’s Strengths and Challenges
The Company’s SWOT analysis results are listed in Figure 30.
Looking at its strengths, the Company is well known due to its long years
of practice in the industry and the trust that it has earned over those years.
It is especially strong in certain areas of business (such as accounting
software for small/medium-sized companies). Additionally, the Company
has been developing a subscription-based business model with highcontinuity and stability. It is leading the market with the cloud, which hasa high growth potential, and has a high competitive edge and top-level trackrecord.
As for its risks, events such as the end of support for Windows and revisions
in tax laws, accounting regulations, and other laws and regulations induce
high demand before and after the event and tend to cause greater volatility
in financial performance. Intensifying competition with competitors is
another risk. Its challenges may be to develop new customers among midtier companies, develop next-generation products and services for future
growth, and effectively utilize its abundant cash.
【Figure 30】SWOT Analysis

Strength

Weakness

Opportunity

・ Brand recognition and trust earned over many years (major specialized player in the enterprise system software market forsmall/medium-sized companies)
・Firm financial standing (debtless management) and stable cash flow
・Growth of the subscription business based on continuous payment for service; capable of continuously generating stable revenue(established a cash-cow business)
・ 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 businesstargeting small/medium-sized companies)
・High barrier to market entry
・Very experienced call center staff and engineers (non-price competition through services)
・Rich product lineup; provides products both as on-premises and by cloud (non-price competition through products)
・ Sales network (13 sales offices in Japan; 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 thename 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)
・New products (hyper, PCA Hub, etc.), new services (transition of on-premises to subscription-based model), and innovations intechnology
・ Development of HR businesses
・Revisions in regulations related to accounting and tax, etc.
・Emergence of an alternative as advanced AI technology becomes widely used, delayed product development, defects in products, etc.

Threat・High competition (maturation of on-premises market; other companies catching up with the Company in the cloud business)
・COVID-19 outbreak/prolongation
・Contract termination risk, etc.
・System troubles and information leakage
・Rise in personnel and development costs(Ref) Prepared by Alpha-Win Research Dept.

◆ 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.

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 First Section)

Issued: 11/22/2021
Dividend History and Forecast
Regarding dividend, ever since the first public offering of the Company’s
stock, ordinary dividend has not been decreased and has generally been
gradually raised with several years of no change in between (Figure 31).

【Figure 31】Change in Dividend and Dividend Payout Ratio
（％）

300.0

Dividend (right axis)
Dividend payout ratio (left axis)

Commemorative dividend (right axis)

281.1

18

(Y)

20.0
18.0

250.0

16.0

13

6.7

200.0

12.0

150.0

10.0

132.0

8.0

100.0
10.0

10.0

30.9

47.8

10.3

10.3

10.3

10.3

50.0
0.0

14.0

3.3

116.9

47.2

46.5

10.3

10.3

ＮＡ

ＮＡ

10.3

10.3

10.3
23.3

48.2

11.3

11.3

12.0

19.8

13.6

10.1

12.0

13.0

6.0
4.0

15.2

14.6

2.0
0.0

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 FY 2024
(E)
(E)
(E)

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. Estimates/forecast (E) were made by Alpha-Win.

w Ordinary dividend has
been increasing. Dividend
revised upward this fiscal
year.

Excluding commemorative dividend, the ordinary dividend had been kept
at 10.3 yen/share per year since FY 2011 (retroactively reflects the 3-for-1
stock split on October 1, 2021, and rounded to the first decimal place; same
applies hereinafter). Then, in FY 2020, it increased dividend to 11.3 yen
and also paid a commemorative dividend for its 40th foundation
anniversary (6.7 yen/share). In FY 2021, there was no commemorative
dividend, and dividend returned to just the ordinary dividend of 11.3
yen/share, the amount after the dividend hike. This dividend had beenplanned to be maintained this fiscal year as well, but due to positive
financial performance, dividend has been revised upward to 12.0 yen/share.

w The target dividend payout
ratio is 33% and the target
DOE is 2.5%. Due to thedifference between theactual and target ratios,
dividend hikes are likely tooccur over the medium tolong term.

The target dividend payout ratio is 33%, but the actual ratio was 19.8% in
FY 2020 and 13.6% in FY 2021, and the Company expects the ratio to be
10.4% in FY 2022 (the Company’s forecast; 15.7% when calculated basedon EPS excluding extraordinary income/losses), all below the target ratio.
To achieve the target dividend payout ratio of 33% during this fiscal year,
based on EPS excluding extraordinary income/losses, the Company would
need to pay an annual dividend of 25.3 yen (dividend hike by 13.3 yen).
Dividend on equity (DOE), which is one of the Company’s KPIs (keyperformance indicators), was 1.5% in the previous fiscal year or FY 2021
and was below its target of 2.5% (a similar level is forecasted for this fiscal
year as well).
In recent years, stability and the level of profit have improved significantly,
but there is still a large difference between the target and actual values for
dividend payout ratio and DOE. Considering their common levels among
companies, we believe that a further dividend hike will be necessary.

w The actual annual net yield
including the shareholder
benefit program is about
1.2% (at maximum).

Dividend Yield and Shareholder Benefit Program
Based on a stock price of Y1,617 (closing price on November 22, 2021,
assuming dividend to be 12 yen), the annual net yield for this fiscal year
will be about 0.7%.
The Company also 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 greaterthan 300 shares and less than 900 shares (based on the number after the
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 First Section)

Issued: 11/22/2021
stock split) are granted Y2,000 worth of Quo Card. Based on a stock priceof Y1,617, the actual annual net yield for a shareholder owning 300 sharesis about 1.2% (at maximum) including the ordinary dividend of 12 yen(after the stock split) and the shareholder benefit (Figure 32).
Based on the same conditions, the actual annual net yield is about 1.8% for
OBC (4733: Obic Business Consultants) (including the shareholder benefit
program) and about 2.2% for MJS (9928: Miroku Jyoho Service) (onlydividend yield since it has no shareholder benefit program).

【Figure 32】Shareholder Benefit Program and Actual Net Yield
Number of Shares Owned(greater than or equal to)300
900(less than)Shareholder Benefit (Quo Card: Y)

Dividend: Y

Net Yield (maximum): %

900

2,000

12

1.15

1500

3,000

12

0.95

4,000

12

0.91

1,500

Net yield = (dividend + benefit value) / (stock price), calculated for the minimal amount of stock owned in each range
Stock price: Y1,617 (closing price on 11/22/2021)(Ref) Prepared by Alpha-Win Research Dept.

Stock Split
A stock split had not been conducted since the 1.3-for-1 stock split in May
2000, but on October 1, 2021, it conducted a large, 3-for-1 stock split. The
announcement of this stock split positively affected stock price and has led
to increasing liquidity.

w 3-for-1 stock split
conducted◆ Stock Price and Factors that May Affect Stock Pricew With solid performance,stock price has increased
largely and has beensignificantly
outperforming the TOPIX
for the past 5 years or so.

Performance
The Company’s stock price and relative stock price compared to the
TOPIX for the past approximately five years are described in the summary
section (Figure C on page 3) (stock price has risen by approx. 4.3x over the
past five years or so). Since around October 2018, the stock price has
especially been increasing, significantly outperforming the TOPIX.
On the other hand, the market has recently tended to buy large-cap,
economically sensitive stocks this year in anticipation of post-COVID-19
changes, and the Company’s stock had been underperforming the TOPIX
due to its defensive characteristic. However, it has been starting tooutperform again after the announcement of Q1 results. Also, over the past
two years, it has been showing a high performance compared to its twocompetitors (4733 Obic Business Consultants or OBC and 9928 Miroku
Jyoho Service or MJS) (Figure 33).

w Outperforming its
competitors over the past
two years【Figure 33】Comparison of Stock Performance with Competitors(Note: stock price as of the end of October 2019 was set to zero upon creating the graph. Reflects prices up through the closing price on November 22, 2021)
80%

PCA (9629)

OBC (4733)

MJS (9928)

60%

40%

20%

0%

-20%

-40%

10
/2

01
11 9
/2
01
12 9
/2
01
01 9
/2
02
02 0
/2
02
03 0
/2
02
04 0
/2
02
05 0
/2
02
06 0
/2
02
07 0
/2
02
08 0
/2
02
09 0
/2
02
10 0
/2
02
11 0
/2
02
12 0
/2
02
01 0
/2
02
02 1
/2
02
03 1
/2
02
04 1
/2
02
05 1
/2
02
06 1
/2
02
07 1
/2
02
08 1
/2
02
09 1
/2
02
10 1
/2
02
11 1
/2
02
1

-60%

(Ref) Prepared by Alpha-Win Research Dept.

38/41
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 First Section)

w No cheapness in valuationcompared to the average ofthe entire TSE First Section

Issued: 11/22/2021

Valuation
Based on the Company’s current stock price, there is no cheapness invaluation in terms of the main valuation indicators compared to the averageof the entire TSE First Section.
Compared to the TSE First Section’s forecasted average P/E of 15.8, theCompany’s P/E based on its forecasted values for this fiscal year is 14.0.
Similarly, compared to TSE’s actual P/B of 1.3 and dividend yield (simple
average) of 1.9%, the Company’s is 2.0 and 0.7%, respectively.
Based on the Company’s forecast and excluding extraordinary
income/losses, the Company’s expected P/E after revision is 21.1
(calculated by Alpha-Win). Based on our forecast for profit, the P/E is
expected to be 20.5 in the next fiscal year and 18.2 in the year after the next.

w Valuation is aroundaverage compared to its
competitors.

When its valuation is compared with the two competitors, the Company’svaluation is cheap in terms of P/B, but the lowest of the three companies
for dividend yield. For the other valuation indicators, it is around average(Figure 34).

【Figure 34】Comparison of Valuation with Competitors
Company Name
Code
Stock Price (at 11/22 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)

Obic Business Consultants(OBC: nonconsolidated)

Miroku Jyoho Service(MJS: consolidated)

9629

4733

9928

1,617
37,353
14.0
2.0
0.7
9.4
2.8

5,440
410,198
33.9
3.2
1.3
22.0
12.1

1,708
59,449
13.6
2.4
2.2
10.2
1.6

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary(Note) Market cap = shares outstanding x market stock price [at 11/22 closing]
EV/EBITDA = (market cap + interest-bearing debt - cash & deposits) / (O.P. + depreciation + intangible fixed asset amortization, etc.)
Interest-bearing debt and cash & deposits are actual H1 values. The denominator’s values are from FY 2021.
The companies' forecasted EPS for FY 2022 used in all P/E calculations. BPS values used in P/B calculation are actual values as ofthe end of September 2021. Dividends are the companies’ forecasts.
P/S = market cap / sales [the companies' forecasts for FY 2022]

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

Money Forward (TM: 3994) and freee (TM: 4478) described previously
are also the Company’s competitors among listed companies in cloud
accounting software. However, they are not reasonable targets forvaluation comparison since they have been posting net losses and paying
no dividend. Regarding P/S and P/B, the comparable valuation indicators,
these two companies’ valuations are extremely expensive.
*Money Forward (TSE Mothers: 3994)
・Market cap of Y452.6 billion at stock price of Y8,500（11/22 closing price）
・FY 2021 (November-ending) company forecast: sales of Y15,250 million
and net loss of Y1,108 million (median values, since both were announced
as ranges); no dividend (P/S of 29.7 [as reference, P/S = market cap / sales];P/B of 39.7)*freee (TSE Mothers: 4478)
・Market cap of 438.4 billion at stock price of Y7,940（11/22 closing price）
・FY 2022 (June-ending) company forecast: sales of Y14,361 million andoperating loss (after adjustment) of Y2,461 million; no dividend (P/S of
30.5 and P/B of 9.3)

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 First Section)

w The key themes are cloud,subscription, work-stylereform, and mental
healthcare.
w Domestic-demand-oriented
growth stock with highgrowth potential
w Temporary sales and profit
declines are possible next
fiscal year, but expected toreturn to sales and profit
growth trend starting in
the fiscal year after thenext.
w Considering the growthpotential over the medium
term, we believe that there
may be an upside to thestock price.

w Key points are the cloud’s
growth rate, themonetization of the new
businesses/services, returnof profit to shareholders,
and the next medium-term
plan.

Issued: 11/22/2021

Outlook
Although there are still uncertainties surrounding the rise in prices ofcommodities and interest, as well as the economic situation such as China’s
real estate issue, the COVID-19 crisis is beginning to settle down in Japanand economic activities are expected to gradually normalize. The Company
will most likely continue to be evaluated as a domestic-demand-oriented
growth stock which has a strong subscription-based business (shifting
packaged enterprise system software to the cloud/subscription services)and can benefit from the growth potential of this business as well as its
advantageous position in terms of the government’s promotion of thework-style reform and the expansion of the metal-health-related market.
Sales and profits may decline temporarily in the next fiscal year as there
will no longer be the event-driven high demand for its products and theextraordinary income that will occur this fiscal year. However, there seems
to be limited downside to stock price since (1) the Company's estimates forthe current fiscal year are somewhat conservative, with small downside riskin terms of profit, (2) with the cloud and the work management system as
the growth drivers, sales and profit growth trends are likely over the
medium term starting in the fiscal year after the next, (3) there is a highpossibility that dividend hikes will occur and the Company has abundant
cash and deposits that will enable it to conduct share buybacks and M&As,and (4) the valuation does not seem overpriced. In fact, over the medium
term, there seems to be an upside to the stock price.
Going forward, the following are the key points to watch:
1) Performance of the cloud business (PCA Cloud’s number of corporate
users and sales growth rate)2) Shift of users to subscription versions of the on-premises (PCA
Subscription)
3) Progress with the development of new products, services, and businesses,
their contribution to profit, and their market competition (especiallyregarding the financial performance of the acquired Dreamhop, and sales
situation of hyper and PCA Hub)
4) Contents of the new medium-term management plan to be announced in
the next fiscal year5) Measures to return profit to shareholders such as dividend hikes, stock
splits, and share buybacks
6) Progress with the M&A strategy
7) Introduction of business/profit management system and their effects
8) New tax systems and changes in regulations
9) Effective use of its accumulated cash

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 First Section)

Issued: 11/22/2021＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

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 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.
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, thestock of the company 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 for any 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.
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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.