This is an unofficial translation. In case of any difference in meaning between the original Japanese text and the English translation, Japanese text shall prevail.

Consolidated Summary Report under Japanese GAAP
for the first quarter of the fiscal year ending June 30, 2023
Company Name:
Code Number:
Representative:
For inquiry:

October 31, 2022
Stock exchange listings: Tokyo

AVANT GROUP CORPORATION(Formerly AVANT CORPORATION)
3836(Title) President, Group CEO(Name) Tetsuji Morikawa(Title) Director, Group CFO(Name) Naoyoshi Kasuga

Securities report issue date: November 11, 2022
Supplementary information for financial statements: Available
Explanatory meeting to be held: No

URL: https://www.avantgroup.com/
TEL: (03) 6388-6739

Dividend payment date: -1. Consolidated results for the first quarter of the fiscal year ending June 30, 2023

(Millions of yen, rounded down to the nearest unit)(Percentages indicate year-on-year changes)(1) Consolidated results of operations
RevenueFirst quarter of the
fiscal year
ending June 30, 2023
ended June 30, 2022
Comprehensive income (loss)

EBITDA
%

5,025
4,047

709
519

for the 1Q of the fiscal year ending June 30, 2023

First quarter of the
fiscal year
ending June 30, 2023
ended June 30, 2022

Ordinary income

%

%

%

24.2
-

Net profit per
share

Operating income

36.7
-

614
461

367 million yen (52.9%)

33.2
-

601
441

Profit attributable toshareholders of parent
company%

36.1-

for the 1Q of the fiscal year ended June 2022

370
262

41.5
-

271 million yen (-)

Diluted net
profit per share

yen

yen

9.86
6.97

-

(Notes) EBITDA is derived by adding depreciation and amortization of goodwill to operating income.
The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarterof the fiscal year ended June 30, 2022, and the figures for the first quarter of the fiscal year ending June 30, 2022 are after the application of the said accounting standard,etc., so the percentage change from the same quarter of the previous year is not stated.

(2) Consolidated financial condition

Total Assets
As of

Net Assets

Equity Ratios

Unit: million yen

Unit: million yen%

15,942
16,617

10,478
10,59765.7
63.8

September 30, 2022
June 30, 2022

(Reference) Net assets attributable to the company’s shareholders

As of September 30, 2022

10,478 million yen

As of June 30, 2022

10,597 million yen

2. Dividends on common stock

Fiscal Year Ended

Dividends per share
1st
2nd
3rd
Fiscalquarter-end quarter-end quarter-end year-end
yenJune 30, 2022
June 30, 2023
June 30, 2023 (Forecast)-

Annual

yen

yen

-

13.00

13.00

0.00

-

15.00

15.00

0.00

yen

yen

Revisions to the most recently announced dividend forecast: None
(Note) Breakdown of year-end dividend for the fiscal year ending June 30, 2022: ordinary dividend of 12.00 yen and commemorative dividend of 1.00 yen (25th anniversaryof the Company's founding)

3. Consolidated earnings forecasts for the fiscal year ending June 30, 2023
(Percentages indicate year-on-year changes)

Revenue

Operating income

Profit attributable toowners of parent
company

Ordinary income

Net profit
per share

Fiscal Year ending

Unit: million yen%

Unit: million yen%

Unit: million yen%

Unit: million yen%

yenJune 30, 2023

21,800

16.6

3,100

-4.5

3,100

3.7

2,030

-0.7

53.96

(Notes)

Revisions to the most recently announced earnings forecast: None
Since the Company conducts annual business management, the consolidated financial forecast for the second quarter (cumulative total) is omitted.

Notes(1) Changes in significant subsidiaries during the period (changes in “Specified Subsidiaries” (Tokutei Kogaisha) accompanying changes
in scope of consolidation): No
Newly added to the scope of consolidation: nil
Newly deleted from the scope of consolidation: nil(2) Application of accounting procedures specific to the preparation of quarterly consolidated financial statements: none
(3) Changes in accounting policies, accounting estimates and correction of past errors:(i) Changes in accounting policies due to revision of accounting standards: Yes(ii) Changes in accounting policies due to reasons other than item (i) above: No(iii) Changes in accounting estimates: No(iv) Correction of past errors: No
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (4) Notes to Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)" on page 14 of the attached document.

(4) Number of shares outstanding (common stock)(i) Total shares outstanding including treasury stock(ii) Shares of treasury stock held(iii) Average outstanding shares*

As of September 30, 2022

37,625,501 shares

As of June 30, 2022

As of September 30, 2022

2,998 shares

As of June 30, 2022

First quarter of the fiscal year
ending June 30, 2023

37,622,503 sharesFirst quarter of the fiscal year
ended June 30, 2022

37,625,501 shares
2,998 shares
37,600,252 sharesThis report is exempt from the audits of CPAs or Audit firms.

* Explanation of the appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on information currently available to the Company
and on certain assumptions deemed to be reasonable. These statements are not promised by the Company regarding future performance.
Actual results may differ materially from the forecast depended on a range of factors. Please refer to "Earnings Forecasts" on page 8 forthe assumptions for earnings forecasts and notes for using earnings forecasts.
The Company issued new shares as performance-based stock compensation and restricted stock compensation on October 7, 2022. Net
income per share (forecast) is calculated based on the average number of shares during the period reflecting such issuance of new shares.

Accompanying Materials – Table of Contents
1. Qualitative Information on Financial Results for the Current Quarter .................................................... 2(1) Management's Discussion on Business Operations .............................................................................. 2(2) Discussion on Financial Condition .......................................................................................... 6(3) Earnings Forecasts ....................................................................................................... 8
2. Quarterly Consolidated Financial Statements and Notes.................................................................. 9(1) Quarterly Consolidated Balance Sheets.......................................................................................... 9(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income......................... 11
Quarterly Consolidated Statements of Income ................................................................................. 11
Quarterly Consolidated Statements of Comprehensive Income ......................................... 12(3) Quarterly Consolidated Statements of Cash Flows ..................................................................... 13(4) Notes to Quarterly Consolidated Financial Statements ..................................................................... 14(Notes on the Going Concern Assumption) .............................................................................. 14(Notes on Substantial Changes in the Amount of Shareholders' Equity) .................................. 14(Changes in accounting policies) ........................................................................................................... 14(Additional information) ........................................................................................................... 14(Segment information) ............................................................................................. 15(Revenue Recognition) ........................................................................................................... 16(Significant Subsequent Events) ........................................................................................................... 16- 1 -1. Qualitative Information on Financial Results for the Current Quarter(1) Management's Discussion on Business Operations
Consolidated financial results for the first quarter of the current fiscal year are as follows.
Fiscal Year ended June30, 2022
First quarter
Revenue(millions of yen, rounded down to the nearest unit)
Fiscal Year ending June
Year on Year Change
30, 2023
First quarter
Amount
%

4,047

5,025

978

24.2

Operating income

461

614

153

33.2

Ordinary income

441

601

159

36.1

Profit attributable to owners ofparent company

262

370

108

41.5

Consolidated net sales were 5,025 million yen (up 24.2% year-on-year) as a result of steady growth in all threebusinesses: Group Governance, Digital Transformation, and Outsourcing, as we proactively responded to growing
investment needs among Japanese companies, our customers, to maintain and strengthen competitiveness by"upgrading corporate management and activities using data and digital technology," which is becoming a mid- tolong-term trend.
The ratio of recurring sales (sales that occur on an ongoing basis, such as software maintenance fees), which is oneof the management indicators in the medium-term management plan, was 35.5%, down 1.4 percentage points fromthe same period of the previous year, due to a large increase in revenue from the Group Governance Business andDigital Transformation Business, which exceeded the effect of increased revenue from the Outsourcing Business,where the stock sales ratio is constantly maintained at around 90%. On the other hand, total stock sales continued to
grow steadily, increasing 19.5% year-on-year.
As for profits, there were increases in fixed personnel expenses due to improved compensation and an increase inheadcount to strengthen competitiveness for the purpose of securing human resources, as well as an increase insubcontracted processing expenses in response to an increase in orders, and an increase in expenses at the holding
company due to the reorganization of the group. However, these factors were offset by the effect of increased sales
in each business segment, resulting in operating income of 614 million yen (up 33.2% year-on-year), ordinary incomeof 601 million yen (up 36.1% year-on-year), and net income attributable to shareholders of the parent company of
370 million yen (up 41.5% year-on-year).

- 2 -The status of each reportable segment is as follows.
(i) Revenues

Group Governance Businesses
Digital Transformation BusinessOutsourcing BusinessEliminationofinter-segment
transactions
Consolidated Revenues

Fiscal Year ended June30, 2022
First quarter
1,957
1,564
710

(millions of yen, rounded down to the nearest unit)
Fiscal Year ending June
Year on Year Change
30, 2023
First quarter
Amount
%
2,409
451
23.1
1,916
352
22.5
886
175
24.7

(185)

(186)

(1)

-

4,047

5,025

978

24.2

Fiscal Year ended June30, 2022
First quarter
286
187
161

Fiscal Year ending June30, 2023
First quarter
393
287
198

(173)

(264)

(91)

-

461

614

153

33.2

(ii) Operating income

Group Governance Businesses
Digital Transformation BusinessOutsourcing BusinessCorporate Expenses and Eliminationof inter-segment transactions
Consolidated operating income(millions of yen, rounded down to the nearest unit)
Year on Year Change
Amount

106
100
37

%

37.3
53.9
23.2

For the Group Governance business, net sales were 2,409 million yen, up 23.1% from the same period of theprevious year. The increase in sales of consulting services was the main reason for the rise in sales during the quarter,
due in part to growth in solutions that contribute to group management information control, in addition to consolidated
accounting and disclosure solutions. The ratio of SG&A and other expenses to the increase in net sales improved,
resulting in an increase in operating income of 393 million yen (up 37.3% year-on-year).
As for the Digital Transformation Promotion Business, the need among customers to utilize data for decision making
related to management and business promotion continues to accelerate, and has shifted to a focus on provision ofcloud data platforms and is becoming larger. On the other hand, the business intelligence-related development led theway during the quarter, while implementation and provision of corporate performance management (CPM) tools also
grew, resulting in an increase in sales. As a result, net sales increased to 1,916 million yen (up 22.5% year-on-year).
Despite an increase in personnel expenses due to higher compensation levels intended to strengthen competitivenessin order to secure personnel, this was offset by the effect of higher sales, and operating income was 287 million yen(up 53.9% year-on-year), significantly higher than the same period a year earlier.
In the outsourcing business, while stock sales continued to build steadily, sales of implementation and consulting
services related to new contracts also grew significantly, contributing to sales growth, resulting in an increase in net
sales of 886 million yen (up 24.7% year-on-year). In terms of profitability, operating income increased to 198 million
yen (up 23.2% year-on-year), despite factors that increased costs, such as an increase in office space due to an increasein headcount.

- 3 -The number of employees on a consolidated basis was 1,277 at the end of the first quarter, up 51 from the end of theprevious fiscal year.
Quarterly Trends of Number of Employees of the Group(person)
1,400
1,226
1,200

1,000
855

938

950

965

Q4

Q1

Q2

963

Q3

1,055

1,030 1,030 1,047

Q4

Q1

1,277

1,128 1,139
1,107 1,123

874

800

600

400

200

Q2

Q3
FY19/06

FY20/06

Q2

Q3

Q4

Q1

FY21/06

Q2

Q3

FY22/06

Q4

Q1

Q2

Q3

Q4

FY23/06

The status of orders received and sales by segment in the first quarter of the fiscal year under review is as follows.
(i) Orders Received

Group GovernanceBusinesses
Digital Transformation
Business
Outsourcing BusinessElimination of inter-segment
transactions
Total

Fiscal Year ended June 30,
2022
First quarter
OrdersOutstanding
Received
Orders
1,886

2,278

2,589

3,313

702

1,034

1,296

975

2,099

1,314

803

338

722

1,469

832

2,392

109

922

(238)

(343)

(170)

(563)

67

(220)

3,667

4,381

5,350

6,455

1,683

2,074

(ii) Sales

Group Governance Businesses
Digital Transformation BusinessOutsourcing BusinessElimination of inter-segment
transactions
Total(millions of yen, rounded down to the nearest unit)
Fiscal Year ending June 30,
Year on Year Change
2023
First quarter
AmountOrdersOutstanding
OrdersOutstanding
Received
Orders
Received
OrdersFiscal Year ended June 30,
2022
First quarter
1,957
1,564
710

(millions of yen, rounded down to the nearest unit)
Fiscal Year ending June 30,
Year on Year Change
2023
First quarter
Amount
%
2,409
451
23.1
1,916
352
22.5
886
175
24.7

(185)

(186)

(1)

－

4,047

5,025

978

24.2

- 4 -

Quarterly trends in revenues and operating income are as follows:
Revenues and Operating Income for the Last four quarters(millions of yen, rounded down to the nearest unit)
Fiscal Year ending June30, 2023
Fourth quarter
First quarter

Fiscal Year ended
June 30, 2022
Third quarter

Second quarter
Revenue

4,703

5,035

4,916

5,025

Operating income

1,020

1,140

624

614

Operating income margin
(%)

21.7

22.7

12.7

12.2

Quarterly trends of revenue, operating income and operating margins
Net Sales(millions of yen)

Operating Income

OP Margin

6,000

25%

5,000

20%

4,000
15%
3,000

12.2%
10%

2,000

5%

1,000

0

1Q

2Q

3Q

FY19/06

4Q

1Q

2Q

3Q

FY20/06

4Q

1Q

2Q

3Q

FY21/06

- 5 -

4Q

1Q

2Q

3Q

FY22/06

4Q

1Q

2Q

3Q

FY23/06

4Q

0%(2) Discussion on Financial Position(i) Financial position
Total assets at the end of the first quarter were 15,942 million yen (down 674 million yen from the end of theprevious fiscal year). This was mainly due to a 555 million yen decrease in current assets, which was mainly
attributable to a 1,094 million yen decrease in cash and deposits and a 67 million yen increase in prepaid expenses.
On the other hand, total liabilities amounted to 5,464 million yen (down 555 million yen from the end of the previous
fiscal year). This was mainly due to a decrease of 712 million yen in provision for bonuses.
Total net assets amounted to 10,478 million yen (down 119 million yen from the end of the previous fiscal year) due
to the recording of 370 million yen in net income attributable to parent company shareholders and payment of 489
million yen in dividends from surplus. As a result, the equity ratio was 65.7% (63.8% at the end of the previous fiscal
year), an improvement of 1.9 percentage points from the end of the previous fiscal year, and the Company believes
it maintains a highly stable financial balance with low interest-bearing debt.
(ii) Cash Flow
Cash and cash equivalents (hereinafter referred to as "cash") at the end of the first quarter decreased by 1,091 million
yen from the end of the previous fiscal year to 8,911 million yen. The status of each cash flow and their factors are
as follows.
< Net cash provided by (used in) operating activities >Funds used in operating activities totaled 491 million yen. (173 million yen used in the same period of the previous
year)
The main factors of increase were income before income taxes and minority interests of 601 million yen and increasein deposits received of 691 million yen, while the main factors of decrease were decrease in allowance for bonusesof 712 million yen, decrease in allowance for directors' bonuses of 127 million yen and income taxes paid of 893
million yen.
< Net cash provided by (used in) investing activities >Funds used in investing activities totaled 111 million yen. (177 million yen used in the same period of the previous
year)
The main accounts of cash outflow were 16 million yen for purchase of property, plant and equipment, 50 million
yen for purchase of intangible assets, and 120 million yen for payment of lease and guarantee deposits, while themain accounts of cash inflow were 90 million yen for proceeds from redemption of marketable securities.
< Net cash provided by (used in) financing activities >Net cash used in financing activities totaled 493 million yen. (417 million yen used in the same period of the previous
year)
The main component of cash outflow was 489 million yen in cash dividends paid.

- 6 -In our group, cash flow from operating activities in the first quarter was at a low level due to the payment of income
taxes and the payment of performance-based bonuses to officers and employees, and it gradually increases from thesecond quarter onward, and is typically positive for the full fiscal year.
Maintenance fees and commissions paid for the outsourcing business in the consolidated accounting-related
business are prepaid for the year in advance of the provision of services. As a result, the business model has almost
no need for working capital than the original. In the business intelligence business, on the other hand, as outsourcing
costs and other expenses are paid in advance, working capital demand will increase as sales grow. However, byconcentrating the excess funds of the Group as a whole in the holding company, the Group is able to smoothly extend
funds across the Group. In addition to the total amount of cash held, the Group has established a commitment line
totaling 3.5 billion yen with each bank with which it does business. Accordingly, at present there are no concerns
about funding, and rather, we intend to use the excess funds for strategic investment in the future.
Quarterly trends of operating cash flow (millions of yen)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
-500

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023-1,000Operating cash flow (accumulated)- 7 -Operating cash flow (quarter)4Q

(3) Earnings Forecasts
In September 2018, the Company announced a five-year plan (five-year target to be achieved in five years) as its
medium-term management plan, and the fiscal year ending June 2023 is the final year of the plan. Prior to that, wehave defined the materiality of the Avant Group as "to become a software company that helps improve corporate
value," and have clarified what we aim to become during the period of the next medium-term plan. As a concretemeasure to realize this materiality, we have reorganized the group and started business activities as the new Avant
Group on October 1, 2022.
The reorganization of the group will also clarify the direction of each operating company and expand the means ofresponse, thereby enabling us to respond to growing needs better than ever before and achieve sustainable sales
growth. At the same time, in order to maximize the effects of the reorganization, we plan to aggressively implement
expenditures for the future, including a review of the Group's branding and a fundamental revision of our productdevelopment strategy, including a reorganization of our low-profit products.
Although there is a risk that the spread of the new coronavirus infection, which has yet to be resolved, and thesituation in Ukraine may indirectly affect the Group's performance, we believe that the needs of the Group's business,such as the increasing number of companies that want to utilize data for management and strengthen group
governance, will rather continue to grow. However, we believe that the needs of the Group's business will continue
to increase in the future.
As a result, the Company expects to achieve net sales of 21,800 million yen and operating income of 3,100 million
yen in the current fiscal year.
This forecast is based on the assumption that the spread of the new coronavirus infection will not cause a greater
stagnation in the economic activities of domestic companies than the current situation. If this becomes greater in the
future, the Group's operating results may be worse than expected.
In accordance with our existing dividend policy, we will raise the ratio of dividends to net assets, always being
conscious of exceeding the average of all listed companies, while at the same time striving to maintain stabledividends (in principle, dividends per share should not fall below the level of the previous fiscal year). In accordancewith this policy, we forecast a dividend of 15 yen per share for the current fiscal year.

Trends of dividends (adjusted for stock splits)(yen/share)

15.0
13.0
11.0
9.0
7.5
6.0

2018

2019

2020

2021

- 8 -

2022

2023
(Forecast)2. Quarterly consolidated financial statements and notes(1) Quarterly Consolidated Balance Sheets(Unit: thousand yen)First Quarter of the Fiscal Year
Previous Consolidated Fiscal Yearending June 30, 2023
(June 30, 2022)(September 30, 2022)
AssetsCurrent assets
Cash and Deposits
Notes and accounts receivable – trade

9,444,021
3,024,049

8,349,213
2,998,983

Marketable securities
Work in progress

590,019
18,100500,000
15,985

Raw materials and supplies
Prepaid expenses

82,827
539,637

85,837607,341

Other
Allowance for doubtful accounts

46,346(3,685)

632,833(3,904)

13,741,316

13,186,290

398,117423,534

SoftwareOther

676,429521

676,499
225

Total intangible assets

676,951

676,724

Investments and other assets
Investment securities

511,133

508,374

Long-term prepaid expenses
Leasehold and guarantee deposits

29,713560,883

22,023
681,659

Deferred tax assets
Other

568,997
129,933

313,910
129,933

1,800,661

1,655,900

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Total investments and other assets
Total non-current assets
Total assets- 9 -2,875,730

2,756,159

16,617,046

15,942,450

(Unit: thousand yen)First Quarter of the Fiscal Year
Previous Consolidated Fiscal Yearending June 30, 2023
(June 30, 2022)(September 30, 2022)
Liabilities
Current liabilities
Notes and accounts payable - trade
Lease obligations

662,316
12,428632,596
12,086

Accounts payable – other, and accrued expenses
Income taxes payable

392,568
586,626

782,597-

Unearned revenue
Asset retirement obligations

2,355,344
15,6062,226,397
15,606

Provision for bonuses
Provision for bonuses to directors and other officers

1,050,315
170,813338,193
43,64017,743556,718

15,268
1,166,112

5,820,483

5,232,500

18,324
180,576

15,272
213,487

Allowance for loss on orders received
Other
Total current liabilities
Non-current liabilities
Lease obligations
Asset retirement obligations
Deferred tax liabilities

-

2,924

198,900

231,684

6,019,383

5,464,185

Share capital
Capital surplus

329,128
265,928

329,128
265,928

Retained earnings
Treasury shares

9,872,031(608)

9,756,070(608)

Total shareholders' equity

10,466,479

10,350,518

103,126

88,840236
27,820300
38,605

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 10 -

131,183

127,746

10,597,663

10,478,264

16,617,046

15,942,450

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeConsolidated Quarterly Statements of Income
First Quarter of the Current Fiscal Year
(Unit: thousand yen)First Quarter of the Previous First Quarter of the Current Fiscal
Fiscal YearYear
(From July 1, 2021 to September (From July 1, 2022 to September
30, 2021)
30, 2022)
Net sales
Cost of sales

4,047,484
2,227,854

5,025,971
2,776,438

Gross profit

1,819,630

2,249,533

Selling, general and administrative expenses

1,357,970

1,634,571

461,660

614,962Interest income
Dividends income

76
1,048

57
511

Subsidy income
Miscellaneous income

1,350
78

220
1,270

47

33

2,601

2,092

209

144

19,341

-

601
1,430

1,538
1,423

Foreign exchange loss
Compensation for damages

311
-

1,660
10,831

Other

647

289

Operating profit
Non-operating income

Other
Total non-operating income
Non-operating expenses
Interest expense
Share of loss of entities accounted for using equity
methodLoss on investments in investment partnerships
Commission expenses

22,542

15,888

Ordinary profit

Total non-operating expenses

441,719

601,165

Income before income taxes

441,719

601,165

Income taxes - current

97,742(32,530)

Income taxes - deferred

81,805

262,798

Total income taxes

179,547

230,267

Profit262,172

370,898--

262,172

370,898

Profit attributable to noncontrolling interests
Profit attributable to owners of the parent- 11 -

Consolidated Quarterly Statements of Comprehensive Income
First Quarter of the Current Fiscal Year

ProfitOther comprehensive income(Unit: thousand yen)First Quarter of the Previous First Quarter of the Current Fiscal
Fiscal YearYear
(From July 1, 2021 to September (From July 1, 2022 to September
30, 2021)
30, 2022)
262,172
370,898

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

8,679
11

(14,286)64

Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income

1,468

9,011

(852)

1,773

9,306

(3,437)

Comprehensive income

271,479

367,461

Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to noncontrollinginterests

271,479

367,461--- 12 -

(3) Quarterly Consolidated Statements of Cash Flows(Unit: thousand yen)First Quarter of the Previous First Quarter of the Current Fiscal
Fiscal YearYear
(From July 1, 2021 to September (From July 1, 2022 to September
30, 2021)
30, 2022)
Cash flows from operating activities
Profit before income taxes

441,719

601,165

Depreciation
Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for loss on orders
received
Interest and dividend income
Interest expenses
Commission expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on investments in investment partnerships

60,8183,861
92(427,828)

101,795
4,457
218(712,122)(96,827)(127,172)

10,290(2,474)(1,125)
209
1,430

(568)
144
1,423

19,341

-

601

1,538

Subsidy income
Decrease (increase) in trade receivables(1,350)449,871(220)
25,116(2,779)(17,156)(895)(29,720)

288,406

128,193(7,958)(85,244)

Increase (decrease) in unearned revenue
Increase (decrease) in deposits received(356,315)
235,680(128,946)
691,949

Other, net(66,950)(67,512)Subtotal

534,032

401,125

1,235

759

(209)
1,350
(710,025)(173,617)

(144)
220
(893,709)(491,747)(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable and accrued
expenses
Increase (decrease) in accrued consumption taxes

Interest and dividends received
Interest payments
Amount of grants received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from redemption of marketable securities-

90,019Purchase of property, plant and equipment
Purchase of intangible assets(68,642)(146,408)(16,518)(50,717)

Purchase of investment securities
Payment of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Other, net△11,044(168,288)(13,935)(120,775)

216,775

-

96

371

Net cash provided by (used in) investing activities(177,512)(111,554)(3,528)(3,392)(413,602)(417,131)(1,500)(489,092)(493,985)

1,158

6,161

(767,102)
7,786,223
7,019,120(1,091,126)
10,002,870
8,911,744

Cash flows from financing activities
Repayment of finance lease obligations
Disbursement of commissions paid
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 13 -

(4) Notes to Quarterly Consolidated Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
Not applicable.
(Change in accounting policy)<Application of the "Guidance on Accounting Standard for Measurement of Fair Value">
The Company adopted the "Guidance on Accounting Standard for Measurement of Fair Value (ASBJ Guidance No.
31, June 17, 2021). Hereafter referred to as the "Guidance on Accounting Standard for Fair Value Calculation")" fromthe beginning of the first quarter of the current consolidated fiscal year and will apply the new accounting policy inaccordance with the transitional treatment stipulated in Paragraph 27-2 of the Guidance on Accounting Standard for
Measurement of Fair Value. There is no impact on the quarterly consolidated financial statements.
(Additional Information)<Application of the "Treatment of Accounting and Disclosure for Application of the Group Totalization System">
Effective from the first quarter of the current fiscal year, the Company and some of its domestic consolidated
subsidiaries have shifted from a consolidated tax payment system to a group totalization system. In accordance withthis change, the accounting treatment and disclosure of income taxes, local income taxes, and tax effect accounting
are in accordance with "Treatment of Accounting and Disclosure for Application of the Group Totalization System(PITF No. 42, August 12, 2021; hereinafter referred to as "PITF No. 42"). In addition, in accordance with Paragraph
32 (1) of the PITF No. 42, the Company has deemed that there is no impact from the change in accounting policy
upon the application of PITF No. 42.
<Accounting estimates related to the spread of new coronavirus infections>
There has been no significant change in the assumptions regarding the impact of the new coronavirus infection
described in (Additional Information) (Accounting Estimates Regarding the Spread of the New Coronavirus
Infection) in the Annual Securities Report for the previous fiscal year.

- 14 -

(Segment information)
Previous quarter (From July 1, 2021 to September 30, 2021)
1. Information on revenues and profits or losses by reported segment
Group GovernanceBusiness
Revenue
Sales to customers
Intersegment sales
Total
Segment profit

Reportable segments
DigitalTransformation
Business

1,949,559
8,154
1,957,714
286,556(thousands of yen)
Outsourcing
Business

1,558,785
5,625
1,564,410
187,044539,140
171,534
710,674
161,200

Total

4,047,484
185,3144,232,799
634,802

2. Difference between the total amount of income (loss) of reportable segments and the amount recorded in thequarterly consolidated statements of income, and major details of said difference (matters related to difference
reconciliation)
ProfitAmountReportable segments total
Elimination of transactions between the Company and segments
Corporate expenses (Note)
OthersOperating income in the quarterly consolidated statements of income(Note) Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

(thousands of yen)
634,802
187,147(360,668)
379
461,660

Current quarter (From July 1, 2022 to September 30, 2022)
1. Information on net sales and profits or losses by reported segment
Group GovernanceBusiness
Revenue
Sales to customers
Intersegment sales
Total
Segment profit

Reportable segments
DigitalTransformation
Business

2,399,169
10,3392,409,508
393,338(thousands of yen)
Outsourcing
Business

1,916,764
25
1,916,789
287,924710,037
176,089
886,127
198,621

Total

5,025,971
186,454
5,212,425
879,884

2. Difference between the total amount of income (loss) of reportable segments and the amount recorded in thequarterly consolidated statements of income, and major details of said difference (matters related to difference
reconciliation)
ProfitReportable segments total
Elimination of transactions between the Company and its segments
Corporate expenses (Note)
OthersOperating income in the quarterly consolidated statements of income

Amount(Note) Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

- 15 -(thousands of yen)879,884
207,106(472,408)
379
614,962

(Revenue recognition)
Breakdown of revenue from contracts with customers
Previous quarter (From July 1, 2021 to September 30, 2021)

Group GovernanceBusiness
Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Net sales to external customers(thousands of yen)

Reportable segments
DigitalTransformation
Business

Outsourcing
Business

Total

79,252

16,05336,735132,042

1,870,306

1,542,731

502,404

3,915,442

1,949,559

1,558,785

539,140

4,047,484

Current quarter (From July 1, 2022 to September 30, 2022)

Group GovernanceBusiness
Goods or services transferred at a point
in timeGoods or services that are transferredover a period of time
Net sales to external customers(thousands of yen)

Reportable segments
DigitalTransformation
Business

Outsourcing
Business

Total

82,342

24,39086,536

193,270

2,316,826

1,892,373

623,500

4,832,701

2,399,169

1,916,764

710,037

5,025,971(Significant Subsequent Events)(Transactions under common control, etc.)
At a meeting of the Board of Directors held on June 22, 2022, the Company's Board of Directors resolved a policyof reorganization (corporate separation among consolidated subsidiaries) of the Group, and on July 15, 2022, DIVACORPORATION, a consolidated subsidiary of the Company agreed that it will succeed to the development businessof consolidated closing support systems (main product brands: "DivaSystem LCA" and "DivaSystem FBX") by wayof an absorption-type company split (hereinafter referred to as "Absorption-Type Company Split No. 1") and ZEALCORPORATION, a consolidated subsidiary of the Company agreed that it will succeed to the business under thejurisdiction of the Corporate Performance Management Unit through an absorption-type company split (hereinafterreferred to as "Absorption-type Company Split No. 2"). These agreements were executed on October 1, 2022.
In conjunction with this reorganization, the trade names of the Company and its consolidated subsidiaries werechanged as follows on October 1, 2022.
After

BeforeAVANT GROUP CORPORATIONAVANT CORPORATIONAVANT CORPORATIONDIVA CORPORATIONDIVA CORPORATIONFIERTE CORPORATION

Absorption-type Split No. 1(1) Outline of the Transaction(i) Name and description of the business subject to the transaction
Development business of consolidated closing support systems (main product brands: "DivaSystem LCA"
and "DivaSystem FBX")(ii) Date of business combination
October 1, 2022(iii) Legal form of business combination
DIVA CORPORATION will be the splitting company and FIERTE CORPORATION will be the successor- 16 -

company.
(iv) Name of the company after the business combination
FIERTE CORPORATION (DIVA CORPORATION after the trade name change)(v) Other matters related to the outline of the transaction
In order to realize the materiality of our group, we will accelerate the growth of existing businesses andcreate new growth businesses through reorganization.
(2) Outline of Accounting Procedures Implemented
In accordance with the "Accounting Standard for Business Combinations" and the "Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures," the transaction will betreated as a transaction under common control.
2nd Absorption-type Split(1) Outline of the transaction(i) Name and description of the business subject to the transaction
Business under the jurisdiction of Corporate Performance Management Unit(ii) Date of business combination
October 1, 2022(iii) Legal form of business combination
A corporate split in which ZEAL CORPORATION will be the splitting company and DIVACORPORATION will be the successor company(iv) Name of the company after the combination
DIVA CORPORATION (After the trade name change: AVANT CORPORATION)(v) Other matters related to the outline of the transaction
In order to realize the materiality of our group, we will accelerate the growth of existing businesses andcreate new growth businesses through reorganization.
(2) Outline of Accounting Procedures Implemented
In accordance with the "Accounting Standard for Business Combinations" and the "Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures," the transaction will betreated as a transaction under common control.

- 17 -(Issuance of new shares as performance-linked stock compensation and restricted stock compensation)
At the Board of Directors meeting held on October 7, 2022, the Company's Board of Directors resolved to issue
new shares of stock to the Company's Directors under the performance-linked stock compensation plan and to issue
new shares as restricted stock compensation to the Company's Corporate Officers and Directors of the Company's
subsidiaries. The payment procedure was completed on October 28, 2022.
Outline of Issuance of New Shares(1) Payment date

October 28, 2022

(2) Class and number of shares to be issued

20,350 shares of common stock of the Company(3) Issue price

1,571 yen per share(4) Total amount of issuance

31,969,850 yen(5) Capitalization

785.5 yen per share(6) Total amount of capital incorporation

15,984,925 yen(7) Allottees of shares, number of allottees andnumber of shares to be allotted

1 director of the Company: 4,216 shares Corporate Officer of the Company
and directors of the Company's subsidiaries, totaling 15 directors: 16,134
shares(8) Other

A securities registration statement in accordance with the Financial
Instruments and Exchange Act has been filed for this issuance of new shares.

- 18 -