Bridge Report (4762) June 7, 2024

https://www.bridge-salon.jp/

XNET Corporation (4762)

Takehiko Motani, President

Company Information
MarketIndustry
President
HQ Address
Year-end
Homepage

TSE Standard
Information and Communication
Takehiko Motani
Sumitomofudosan-building 4th Floor 13-4 Araki-cho Shinjuku-ku Tokyo, Japan
March
https://www.xnet.co.jp/about/index_ab_en.html

Stock Information
Share Price
Shares Outstanding (Term-end)
Total Market Cap¥1,4988,261,600 shares¥12,375 million
DPS Est.
Dividend Yield Est.
EPS Est.
PER Est.
¥45.003.0%¥129.71
11.5 xROE Act.
9.0%
BPS Act.
¥1,030.99

Trading Unit
100 shares
PBR Act.
1.5x* The share price is the closing price on June 6. All figures are from the financial results for the fiscal year ended March 2024.

Earnings Trend
Fiscal Year
March 2021 Act.
March 2022 Act.
March 2023 Act.
March 2024 Act.
March 2025 Est.

Sales
Operating Income Ordinary Income Net Income
5,039
694
719
576
5,419
968
995
718
5,357
950
985
694
5,547
1,066
1,101
741
5,300
880
850
570

EPS
69.81
86.95
84.00
89.74
129.71

DPS
28.00
28.00
30.00
30.00
45.00

*Unit: million yen. Estimates are those of the company. The EPS in the fiscal year ending March 2025 was forecast while taking into consideration
the effects of the acquisition of treasury shares, which was determined on April 30, 2024.

This report outlines XNET Corporation's financial results for the fiscal year ended March 2024.

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Table of Contents
Key Points
1. Company Overview
2. Fiscal Year ended March 2024 Earnings Results
3. Fiscal Year ending March 2025 Earnings Forecasts
4. Conclusions<Reference 1: Medium-term Management Plan 2022-2025><Reference 2: Regarding Corporate Governance>

Key Points⚫

In the fiscal year ended March 2024, sales were 5,547 million yen, up 3.5% year on year. All services performed
favorably. Operating income was 1,066 million yen, up 12.2% year on year. In addition to increased sales, cost-ofsales ratio improved mainly due to decreased depreciation expenses due to investment in XNET applications.
Gross profit increased 12.7% year on year, while gross profit margin rose 2.5 points. SG&A expenses also
augmented due to various investments, but this was absorbed. Operating income margin was 19.2%, far exceeding
the target of 15%. Like in the first half of the fiscal year, both sales and profit exceeded the forecast in the second
half and annual profit hit a new record high, exceeding the record achieved in the fiscal year ended March 2022
(an operating income of 968 million yen and an ordinary income of 995 million yen).

⚫

For the fiscal year ending March 2025, the company is forecasting sales of 5.3 billion yen, down 4.5% year on year,
and an operating income of 880 million yen, down 17.5% year on year. They are expecting that sales and profit
will decrease year on year in both the first and second halves of the fiscal year, but start rebounding in the second
half of the fiscal year. Regarding sales, continuous steady performance is projected in all services. However, withregard to AMO services, projects concerning infrastructure refurbishment, for which the company received manyorders in the fiscal year ended March 2024, will reach a milestone, and the company plans to withdraw from spot
projects with comparatively low profitability. While it can be said that this is part of the optimization of humanresources utilization as a step toward the “reinforcement of management foundations based on the expansion ofcore sales” stated in the Medium-term Management Plan, it will lead to a temporary decline in sales. Furthermore,regarding the impact of the treasury share acquisition announced on April 30, 2024, while there is virtually no
impact on sales, it is projected that costs for various in-house systems, etc. will arise in step with leaving the NTT
DATA GROUP. As a result, profit margin will slightly drop and the company plans to record the advisory fee
pertaining to the treasury share acquisition as a non-operating expense.

⚫

The company decided to pursue stable and proactive shareholder return while “being a company that does notdecrease dividends” as a new dividend policy. For the fiscal year ending March 2025, they plan to pay an annual
dividend of 45.00 yen/share (up 15.00 yen/share year on year), with each of the interim and year-end dividends
being 22.50 yen/share. The expected payout ratio is 34.7%.

⚫

Following the termination of the capital and business alliance agreement they had concluded with NTT DATA
Corporation and the dissolution of capital alliance, the company concluded a new business alliance agreement. In
this new business alliance, they aim for further elevation of the corporate value by supporting the foundations of
the “Asset Management Nation” concept as they contribute to further streamlining of the asset management
industry while utilizing the business partnership with NTT DATA as a company that offers independent solutions
for asset management. Moreover, they acquired treasury shares on May 1, 2024, in step with the termination of
the capital alliance.

⚫

Regarding the aim of the treasury share acquisition in step with the termination of the capital alliance with NTT
DATA, we would like to keep an eye on the “improvement of capital efficiency” and “expansion of shareholder
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return” in addition to the “termination of listing of the parent company and its subsidiaries” and “ensuring ofmanagement independence.” The company possesses a total of 7.8 billion yen in cash and cash equivalents andthe acquisition of treasury shares is one option for effective utilization.
⚫

Regarding the improvement of capital efficiency, the company forecasts ROE to improve 1% to 10% in the fiscal
year ending March 2025 as a result of trial calculation using the average of the equity ratio at the end of the fiscal
year ended March 2024 prior to the treasury share acquisition and the equity ratio at the end of the fiscal year
ending March 2025 after the treasury share acquisition. ROE in the fiscal year ending March 2026, which is
calculated by using the average of the equity ratio at the end of the fiscal year ending March 2025 and the end of
the fiscal year ending March 2026, is expected to show an even more significant growth, if sales and profit remainfavorable, and the position of P/B ratio is likely to change. While the company forecasts a decrease in sales andprofit for this fiscal year, we would like to pay attention to what kind of growth they can achieve, while receiving
the tailwind of the business environment brought about by the “Asset Management Nation” concept, which is agovernment policy.

1. Company Overview
The company operates the “XNET Service,” which mainly provides securities management systems to more than 180
institutional investors, including life and non-life insurance companies, investment trust advisors, trust banks, and banks, fora monthly usage fee. Since its establishment, the company has led the industry as the de facto standard, holding a market shareof around 90% in the life and non-life insurance industry in Japan. Currently, in addition to its securities business, it isexpanding its management targets to include individual trusts and loans. It is also actively offering “SO service,” in which it
not only provides systems, but also undertakes accounting and other tasks, aiming to further expand its business operations.

[1-1 Corporate History up to stock listing]
The company was established in June 1991 and began offering “XNET Service,” its current mainstay service. In October ofthe same year, Nippon Life Insurance Company adopted the “XNET Service” for its middle-office operations, which was thefirst major order received by the company. Based on this achievement, it expanded its service domain to include back-officeservices for life and non-life insurance companies. The convenience and economic benefits of these services were highly
evaluated, due to which the number of clients using it increased at leading firms in the asset management industry, resulting
in the expansion of its business. It was listed on NASDAQ Japan of Osaka Exchange in June 2000, and on the First Sectionof the Tokyo Stock Exchange in March 2004.
In April 2022, it got listed on the standard market of Tokyo Stock Exchange due to market restructuring.
*In March 2009, NTT DATA Corporation officially acquired the shares of XNET Corporation, making it a wholly-owned
subsidiary of NTT DATA Corporation, but in May 2024, the capital and business alliance agreement was terminated and a
new business alliance agreement was concluded.
[1-2 Corporate Philosophy]
The company aims to be an “eXcellent Company” that can continue to grow while collaborating with its clients.

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Its objectives as an “eXcellent Company” are as follows.
1. Become a “One-Stop Solution Company for Asset Management.”
2. Continue to make efforts to bring smiles to clients' faces by transforming“Impossible” into “Possible.”
3. Create a better society by developing “new frameworks” and “new value.”
4. Implement management practices while being mindful of the well-being of
employees and their families and the profit returns to shareholders.
In addition, the company aims to become “an ecosystem orchestrator* in the asset management industry” by “becoming amaster of asset management industry operations” and “further reducing costs associated with the asset management industry,”
with the mission of “contributing to building Japanese people's overall assets.”
Furthermore, its vision is to achieve “Four-Way Satisfaction,” i.e., “Good for the Buyer: the asset management industry as aclient,” “Good for the Seller: the company,” “Good for the Society: The Japanese economy and people,” and “Good for the
Future: Three-Way Satisfaction.”(*) Ecosystem Orchestrator
It is a role to create an ecosystem (a structure to create significant value through symbiosis) in the asset management industry. For this, it isnecessary to become familiar with all information and elements related to asset management. The company aims to create a symbiotic environment
by connecting it with any service or system that the customer requires without owning all the solutions.

[1-3 Business Environment]
The amount of money management in Japanese asset management companies is on an increasing trend. As a result of the "Asset Management Nation" concept discussed below, the company's client market is expected to continue to expand steadily.

(From "Basic Data on Asset Management Nation (October 4, 2023)," Cabinet Secretariat)

Meanwhile, the company's clients are being affected by shifts in the business environment and facing resource shortages while
being forced to focus on their core businesses, resulting in growing needs for below-mentioned services of undertaking tasks
such as AMO and SO services as well as a growing market for these services.
Life & Non-Life Insurance
Investment Trust Advisors

Local BanksWith the advancement of information technology, the demand for developing advanced
insurance-related services is increasing. The company would like to focus its resources ondeveloping these services more than operation.
Making profits with conventional management methods is becoming increasingly
challenging, and the business volume for Investment Trust Advisors is increasing due to the
expansion of investments in alternative assets, etc., and compliance with new financial
regulations.
The environment with extremely low interest rates continues, making it increasingly difficult
to earn profits from providing loans, which is the core business of banks. The top priority is
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to increase profits through securities investment to compensate for this, however, there is a
shortage of appropriate personnel, and the administrative burden is increasing.
The Japanese government's " Asset Management Nation" concept is also likely to be a tailwind for the company's business.
In the Big-boned Policy 2023, approved by the Cabinet in June 2023, the government clearly stated that it will realize an AssetManagement Nation that contributes to sustainable growth by releasing 2,000 trillion yen in household financial assets.
The goal is to redirect household savings to investment, leading to "an increase in financial asset income" and "supplying
high-risk high return funds to support corporate growth."
The main points of the "Basic Data on the Asset Management Nation" (October 4, 2023), prepared by the Administration
Office for the Realization of New Capitalism, Cabinet Secretariat, are as follows.
◎Asset Income Doubling Plan
Target(1) Doubling the total number of NISA accounts (regular and savings) from 17 million to 34 million anddoubling the amount of NISA purchases (from 28 trillion yen to 56 trillion yen) in 5 years(2) Subsequently, the goal is to double the amount invested by households (total balance of stocks,
investment trusts, bonds, etc.). Through achieving these goals, the long-term objective is to double theasset management income itself.
Seven
Pillar Pillar 1: Fundamentally promoting the expansion and permanent utilization of NISA to shift household
Initiatives
financial assets from savings to investments
Pillar 2: Reform the iDeCo system, for example, by raising the age of membership
Pillar 3: Establish a mechanism to encourage the provision of neutral and reliable advice to consumers
Pillar 4: Strengthen asset accumulation for employers
Pillar 5: Enhance financial and economic education to promote the importance of stable asset formation
Pillar 6: Creation of an international financial center that is open to the world
Pillar 7: Ensure customer-oriented business operations◎Lecture by Prime Minister Kishida, hosted by the Economic Club of New York (September 21, 2023), Related part (extract)① Funds managed by the asset management sector in Japan are 800 trillion yen and have surged 1.5-fold over the past
three years. Aiming to improve this performance, we will promote the sophistication of investment management andencourage new entrants. First, we will correct Japan's unique business practices, eliminate barriers to entry, anddevelop support programs for new entrants. In addition, deregulation will be implemented to allow outsourcing of
back-office operations.
② In order to promote the entry of foreign investors, we will create a special zone for asset management, and we willreform regulations so that administrative actions can be completed only in English and focus on improving thebusiness and living environment. In order to promote reforms in line with the needs of investors worldwide, we would
like to establish an asset management forum based in Japan and the U.S., with your participation.
◎Household Financial Assets① From 2002 to the end of 2022, household financial assets (cash, deposits, bonds, stocks, etc.) in the U.S. and the U.K.
have grown 3.3 times and 2.3 times, respectively, while in Japan they have increased only 1.5 times through June thisyear.
② In Japan, cash and deposits account for a large share of household financial assets. Therefore, there is room for further
asset management growth through the reform of the asset management industry and the promotion of new entrants
and competition.
◎Asset Management Companies① The amount under management (gross) by Japanese asset management companies is approximately 800 trillion yen.
It has been increasing every year, and at present, after bottoming out due to the novel coronavirus, it has increased
1.5 times in 3 years. It has also increased 2.8 times in 10 years.
② If we look at the number of asset management companies in Japan in recent years, we will see that the number has
hardly changed, and new entrants into the investment trust management business have been limited.
③ In Japan, there is a unique practice (double calculation) in which an asset management company and a trust bank eachcalculate the NAV of an investment trust and reconcile them daily. This is pointed out as a factor of high costs and5

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barriers to entry in the asset management business, such as the introduction of investment trust accounting systems
by asset management companies.
In Europe and the United States, on the other hand, double calculation is rare, and in many cases, trust banks andspecialized firms are responsible for this practice.
◎Promoting New Entry and Competition① In Japan, there is a unique practice (double calculation) in which an asset management company and a trust bank eachcalculate the NAV of an investment trust and reconcile them daily. This is pointed out as a factor of high costs andbarriers to entry in the asset management business, such as the introduction of investment trust accounting systems
by asset management companies.
In Europe and the United States, on the other hand, double calculation is rare, and in many cases, trust banks andspecialized firms are responsible for this practice.
② The public sales network through which asset management companies exchange daily information on investment
trusts with distributors is operated by a small number of system vendors, each with its own specifications, and in somecases, requires manual work and multiple terminals for information exchange due to incompatibility in data linkage.
An oligopoly is also developing for the investment trust accounting system used to calculate NAVs of investment
trusts by offering the system as a package with terminals.
③ The Financial Services Agency/Finance Bureau provides prior consultation, registration procedures, and postregistration supervision in English for the registration of foreign asset management companies newly entering theJapanese market, and the Support Office for Establishing Bases in Japan was opened on January 12, 2021, to provide
comprehensive services for these operations. To date, 27 business registrations and notifications have been completed.
④ In June 2021, Japan launched a project to provide free, comprehensive information, consultation, and support in termsof business start-up and daily life in English for foreign financial businesses (investment management companies,
investment advisors/agents, etc.) that are establishing a base in Japan. A total of 35 businesses have been selected forsupport under the project so far, 15 of which have completed business registration and notification.
The increase in assets under management and the rise in the number of new asset management companies are entirely positive
factors for the company's business.
As the number of assets under management grows, the diversification of assets under management, such as alternative
investments, is also expected to increase. As asset management firms seek to focus their resources more than ever on
improving their operational capabilities, task undertaking services are expected to provide them with more opportunities tomeet such needs.
Regarding new entrants, in addition to foreign-affiliated asset management companies, an increase in the number of start-up
asset management companies is also expected in Japan.
The company has already built up a significant track record by providing start-up support services in cooperation with external
partners in areas such as legal aspects, which is another positive factor.
The above abolition of double calculation and elimination of oligopoly in the public sales network are also noteworthy.
It is expected that NAV calculations for investment trusts will be performed by trust banks, and daily investment trust
information exchange with distributors will be performed by trust banks. Trust banks are currently outside the framework of
the public sales network. This is an opportunity to point out issues such as the lack of easy connections, and there are strong
calls for a review of the public sales network, which has become an oligopoly.
The market share of the top vendors of the investment trust accounting system is about 70%. The company also provides
accounting management services for investment trusts, but its market share is not large. The elimination of double calculationand the revision of the public sales network are expected to lead to share fluctuations, and for the company, the impact ofthese changes may be more positive than negative.
As described above, the Asset Management Nation may work positively for the company in macroeconomic terms, and it canalso benefit from the actual policy management.

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https://www.bridge-salon.jp/[1-4 Business Description]
The company provides “XNET Service,” a specialized asset management system developed by the company, to over 180
institutional investors, including life and non-life insurance companies, investment trust companies, investment advisors, trustbanks, and banks.
It has a single business segment, the XNET service business. The services can be categorized into “XNET Service” and“Equipment Sales.” However, “Equipment Sales” service is provided to clients who wish to install computers and otherequipment while adopting “XNET Service” and accounts for about 0-1% of total sales.
◎XNET Service
1. Clients' Situation
The institutional investors who are the company's clients invest in thousands of securities, including stocks and bonds, andhave invested in various high-cost systems to manage their securities, including transactions, balances, profits/losses, andaccounting processes.

(Taken from the company’s documents)

Many Japanese companies have conventionally built such systems and used them exclusively in-house. In cases of systemoutsourcing, where development and management are outsourced to an external company, the system is often the companyspecific system, with all development and maintenance costs borne by the company.
In response to this situation, the company developed its own information system since its foundation and came up with aunique business model, which it named “XNET Service,” to offer this system to multiple clients for a monthly fee only.
It also provides comprehensive support for asset management operations from front to back office, including providing thestock information.
The company currently has approximately 180 clients.
(2) Main Service Lineup① Front Office for Securities②

Middle Office for Securities③

Back Office for Securities④

Back Office for IM⑤

Center-type Indicative STP

A service for institutional investors and securities companies to provide functions
related to placing and receiving orders for securities.
A service to provide performance analysis, reporting to beneficiaries, and otherfunctions for financial products invested by institutional investors.
A service to provide management functions such as journal entries, deposits,
withdrawals, and actual item storage for financial products invested byinstitutional investors.
A service to provide investment trust advisory companies with functions forinvestment trust accounting operations (calculating base prices of investment trusts
and creating management reports and other forms).
A service allowing investors to electronically send trust instructions to a managing
trust bank.
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Bridge Report (4762) June 7, 2024⑥

Disclosure of Trust-linked Data⑦

Loan Management⑧

Stewardship Solutions⑨

Report Manager⑩

XNET-AMOManagement
Service⑪

SO (Smart Outsourcing) Service⑫

Remuneration
Management
Service
Trust
Management
forIndividuals⑬(Application
Outsourcing)⑭

Support Service for Investment
Trust Management Business⑮

SupportServiceforDiscretionary
Investment
Business

https://www.bridge-salon.jp/

A service allowing users to receive portfolio data (transactions, balances, portfolio
attributes) in XNET format for special funds, fund trusts, etc., which are re-trusted
by the managing trust bank.
A service that offers functions to manage all loan-related operations, including
primary, secondary, syndicated, and mortgage loans, on a uniform platform
regardless of the loan type.
A service providing functions to support the administrative operations ofshareholder voting rights.
Support services for preparing external forms required in the investment trust andinvestment advisory business.
In addition to providing application service (basic service), it offers data creation
support (optional service) services.
A service in which dedicated CEs provide comprehensive support from“installation” “operation /maintenance” to “design/development” related to XNET
application use from the customer's perspective, supporting the business operationof XNET applications suitable for the clients.
A service using XNET services (back-office, middle-office, investment trust, etc.)
to execute work duties, such as accounting and producing reports, in place ofclients.
Support services for managing operations related to remuneration for investment
advisory companies.
It is possible to provide “beneficial interest management” and “jointly managed
money trust/investment account management” for a representative trust for wills.
It can be used independently by a trust bank or by a trust bank in partnership witha local financial institution as an agent.
Comprehensive support services for launching an investment trust managementbusiness, starting from establishing a company and preparing investment
applications to starting the business.
Comprehensive support services for launching a discretionary investment
business, starting from establishing a company and preparing investment
applications to starting the business.

In addition to providing software customized to customer needs, the company is focusing on expanding its outsourced systemmanagement and business process services, including “10) XNET-AMO Service” and “11) Smart Outsourcing (SO) Service.”
By having the company's professional human resources undertake front, middle, and back-office operations, clients are able
to focus their resources on other tasks.
The company views SO services as their second pillar, following application services.
(3) Business Model: Adopting a subscription model
Since its launch in 1991, the “XNET Service” has been offering its services on a subscription model, receiving a fixed monthly
subscription fee on a continuous basis.
It is a pioneer in the “subscription” business model, an innovative business model distinct from the “in-house development
type,” in which SI vendors and software houses develop software on contract, and the “package type,” in which package
vendors provide packages.
In the “in-house development type,” all costs are borne by the ordering company, and the risk of unsuccessful development isborne solely by one company.
In the “package type,” it is cheaper to install a pre-existing system, but the cost of modification and additional development
is high.
In contrast, the “XNET Service,” developed under the concept of “collaboration with clients,” differs significantly from the“in-house development” and “package type” services. The reason for this is that after the launch, it is improved and refinedwith clients, with no initial cost and additional investment required.
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The company owns the copyrights to the application and provides it to other users, thereby increasing profitability as thenumber of users grows.
In addition, a major advantage for both the clients and the company is that all the know-how accumulated throughcollaboration with multiple clients can be stored in the XNET application to facilitate knowledge sharing.
Merits for users

Meritsforcompanythe* No initial investment required* Quick installment period* No additional investment required* Overall cost is low because many users pay for one system* Incorporate ideas from many users so advanced know-how can be shared (knowledge sharing)* Constantly updated so the system does not get outdated* Stable revenue due to monthly fees, unlike selling the entire system outright.
* Discontinuation of the service is difficult* High profitability due to collaborative use of the same application

Another feature of the “XNET Service” is the low number of service cancellations owing to the fact that users are unlikely toswitch to another company's system due to the significant burden of transferring historical data once the XNET system has
been installed.
[1-5 Features, Strengths, Competitive Advantages](1) Largest Market ShareXNET utilization accounts for 81% of the total amount of securities under management for all companies affiliated with The
Life Insurance Association of Japan and 96% of non-life insurance.
The convenience and economic advantages of the comprehensive XNET service are evaluated highly, and the track record of
the company's asset management system, including front, middle, and back-office services, is ranked predominantly No. 1 inthe life and non-life insurance industry.

(Taken from the company’s documents)

The source of this competitive advantage is extensive information on securities and applications updated constantly to reflect
the information and know-how.
In addition to revising rules and systems in the securities investment and management industry, it is necessary to stay updated
on new investment targets, such as cryptocurrencies. Additionally, it is essential to incorporate the information into logic andreflect it in the application rather than simply having it as information.
The “XNET System” incorporates not only the information and know-how accumulated by the company, but also the knowhow acquired by its clients through securities management into the application, making it the best and most up-to-dateapplication that accumulates a variety of know-how at any time.

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https://www.bridge-salon.jp/(2) Provide High-added Value
The company creates high-added value by providing high-level “applications,” “know-how,” and “support” as an integrated
package.
(3) Stable Profit StructureCore sales account for about 80% of the company's sales. It is striving to establish a stable revenue base by expanding its coresales.
The Medium-term Management Plan targets core sales of 5 billion yen for the fiscal year ending March 2026.
Sales
Summary
Target Service
Type
Core
Stable sales through a subscription model
Application, AMO (monthly), SO
Spot
Sales from one-time transactions only, although necessary to maintain AMO (spot) *New installation andcore
platform renewal[1-6 ROE Analysis]
FY 3/18

ROE (%)Net income margin (%)
Total asset turnover (times)
Leverage (x)

7.7
11.08
0.60
1.15

FY 3/19

FY 3/20

7.7
10.94
0.60
1.17

7.8
11.04
0.61
1.17

FY 3/21

8.3
11.44
0.63
1.17

FY 3/22

9.8
13.25
0.63
1.17

FY 3/23

8.9
12.95
0.59
1.17

FY 3/24

9.0
13.36
0.58
1.16

*Prepared by Investment Bridge Co., Ltd. based on disclosed material.

While net income margin rose in the fiscal year ended March 2024, ROE remained almost the same as in the previous fiscal
year due to a drop in total asset turnover and leverage. However, it is above 8.0%, which is generally said to be the target forJapanese companies and which the company stated in their Medium-term Management Plan as a target for the fiscal year
ending March 2026.
In addition, ROE is projected to further grow due to the acquisition of treasury stock in step with the recent termination of thecapital alliance with NTT DATA.
[1-7 Shareholder return]
The company considers the securing of stable management foundations and the elevation of shareholder profits based on
dividends as an important management measure and their policy was to provide return to shareholders stably and proactively.

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However, they decided to take another step in the fiscal year ending March 2025 and pursue stable and proactive shareholder
return while “being a company that does not decrease dividends” as a new dividend policy.

2. Fiscal Year ended March 2024 Earnings Results[2-1 Overview of Financial Results]
FY 3/23

Sales
Gross Profit
SG&A
Operating Income
Ordinary Income
Net Income

5,357
1,506
556
950
985
694

Ratio tosales

100.0%
28.1%
10.4%
17.7%
18.4%
13.0%

FY 3/24

5,547
1,698
631
1,066
1,101
741

Ratio to
sales

YoY

Comparedwith
forecast

100.0%
30.6%
11.4%
19.2%
19.8%
13.4%

+3.5%
+12.7%+13.6%+12.2%+11.8%+6.8%+1.8%+11.1%+11.2%+10.6%*Unit: million yen.

Sales and profit increased, exceeding the forecast. Annual profit hit a new record high, exceeding the record achievedin the fiscal year ended March 2022.
Sales were 5,547 million yen, up 3.5% year on year. All services performed favorably.
Operating income was 1,066 million yen, up 12.2% year on year. In addition to increased sales, cost-of-sales ratio improved
mainly due to decreased depreciation expenses due to investment in XNET applications. Gross profit increased 12.7% year
on year, while gross profit margin rose 2.5 points. SG&A expenses also augmented due to various investments, but this wasabsorbed. Operating income margin was 19.2%, far exceeding the target of 15%.
Like in the first half of the fiscal year, both sales and profit exceeded the forecast in the second half and annual profit hit a
new record high, exceeding the record achieved in the fiscal year ended March 2022 (an operating income of 968 million yen
and an ordinary income of 995 million yen), due to the growth in core sales and spot sales, mainly from infrastructure public
offering projects, which exceeded expectations.

[2-2 Trend of each service]
FY 3/23XNET services
Application services
AMO/SO service
Equipment sales, etc.
Total sales

5,353
3,779
1,574
4
5,357

Composition
ratio

99.9%
70.5%
29.4%
0.1%
100.0%

FY 3/24

5,536
3,827
1,709
11
5,547

Composition
ratio

YoY

99.8%
+3.4%
69.0%
+1.2%
30.8%
+8.6%
0.2% +180.0%
100.0%+3.5%*Unit: million yen.

◎Application services
Regarding the securities management system, which is the mainstay, the company has begun to develop and provide newservices to proactively promote the linkage with systems of other companies as an “ecosystem orchestrator of the asset
management industry” in addition to expanding the adoption of the system in the Shinkin bank industry. Service cancellations
from existing clients are rare and the service continues to perform stably as a pillar that supports the performance.
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In December 2023, as risk management in the life and non-life insurance industry grew even more important, they started tooffer the “To Aladdin Linking System,” which allows for linking the XNET system with risk management systems without
requiring any effort, time or cost.
With regard to individual trusts, such as living trusts, the company stably provides the system despite a slight decline in thenumber of new clients. The variety of system functions is broadening as financial institutions expand the variation of trust
products and as the market keeps growing due to the aging of the population, reinforcing the company’s position as a systemvendor on this market.
The loan management system, which they started to provide to Meiji Yasuda Life Insurance Company in the fiscal year ended
March 2023, is operating smoothly and the number of clients who use it is increasing. There are many inquiries concerning
the loan management system also from life and non-life insurance clients and it is projected that the business scale will expand
from now on.
◎AMO services
The company’s capability to provide support is recognized amid the shortage of IT human resources at financial institutions
and orders for continuous system maintenance projects are being received steadily, contributing to the expansion of core sales.
In the fiscal year ended March 2024, orders received for spot projects concerning infrastructure refurbishment, etc. werefavorable, contributing to the overall growth in sales of XNET services.
◎SO services
Regarding the provision of SO services to the life and non-life insurance industry, the company started to offer services to thesecond company and the adoption of services was decided at the third company. They are currently forging ahead withpreparations for the adoption at multiple life and non-life insurance companies. “Easier requirements for entry into theinvestment management business (such as outsourcing of back-office operations)” have been stated as an initiative for therealization of the “Asset Management Nation” concept upheld by Prime Minister Kishida and it is projected that there will befurther opportunities for providing the system, especially in the trust investment advisory industry.
Core sales, which consist of the sales from application services, monthly application management services, and task
undertaking services, and which ensure stable sales through a subscription model, grew steadily by 3.3% year on year to 4,583
million yen.

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https://www.bridge-salon.jp/[2-3 Financial Standing and Cash Flows]◎Main Balance Sheet
End of
End of
March
March
2023
2024
Current assets
4,243
5,040

Increase/
Decrease+796

Cash and deposits

2,258

3,038

+779

Deposit paid in
subsidiaries andaffiliates
Non-current assets

1,463

1,481

+18

5,037

4,870

-166

Intangible assets
SoftwareInvestment,
othersTotal assets

1,218
1,217
3,725

1,136
1,135
3,642

-82
-82
-83

9,281

9,910

+629

Current
liabilities
Accounts
payableIncome taxes
payableNon-current
liabilities
Total liabilities
Net assets
Retainedearnings
Total liabilities
and net assets

End of
March
2023
669

End of
March
2024
795

Increase/
Decrease

289

306

+17

150

232

+82

587

597

+10

1,257
8,024
5,779

1,393
8,517
6,273

+136
+493
+493

9,281

9,910

+629

+126

*Unit: million yen. The software contains temporary accounts.

*Prepared by Investment Bridge Co., Ltd. based on disclosed material.

Total assets increased 629 million yen from the end of the previous term to 9,910 million yen due to the increase in cash anddeposits etc.
Total liabilities increased 136 million yen from the end of the previous term to 1,393 million yen.
Net assets grew 493 million yen from the end of the previous term to 8,517 million yen due to the increase in retained earnings.
Equity ratio was 85.9%, down 0.6 points from the end of the previous term.
◎CF
FY 3/23
Operating Cash Flow
Investing Cash Flow
Free Cash Flow
Financing Cash Flow
Balance of Cash andEquivalents

1,156
-523
632
-239
2,258

FY 3/24
1,443
-416
1,027
-247
3,038

Increase/
Decrease
+287
+107
+394
-8
+779

*Unit: million yen.

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https://www.bridge-salon.jp/*Prepared by Investment Bridge Co., Ltd. based on disclosed materials.

Cash inflow from operating activities and the surplus of free cash flow increased due to a growth in operating income, etc.
The cash position improved.
[2-4 Topics](1) Terminating the capital alliance with NTT DATA Corporation and concluding a new business alliance agreement
On April 30, 2024, the company announced that they decided to terminate the capital and business alliance agreement they
had concluded with NTT DATA Corporation and dissolve their capital ties, and to conclude a new business alliance agreement
aimed at building a new business partnership. The termination of the capital and business alliance agreement and the newagreement will come into effect on May 1, 2024.
(Reasons for the cancellation of the capital alliance and conclusion of a new business alliance agreement)
From January 2009, XNET and NTT DATA Corporation have collaborated through a capital and business alliance with XNET
being responsible for NTT DATA solutions in the field of funds and securities. NTT DATA clients have been introduced to
XNET and they have made joint proposals concerning solutions for funds and securities and they have built foundations for acertain collaborative relationship between both parties, aiming for the elevation of corporate value.
On this occasion, the company received a request from NTT DATA, the parent company, that they would like to consider their
future partnership with the development of both companies in mind, on the premise of selling all ordinary shares of XNET
and promoting a new business partnership.
Taking into consideration that NTT DATA wishes to sell the ordinary shares of XNET, XNET decided to acquire treasury
shares and dissolve capital ties as a step toward building the new relationship.
Meanwhile, XNET and NTT DATA decided to conclude a new agreement and establish a new business partnership based on
the collaborative relationship they have built so far with the objective of contributing to further elevation of the corporate
value of both companies.
From now on, XNET will aim for further elevation of corporate value by supporting the foundations of the “Asset Management
Nation” concept as they contribute to further streamlining of the asset management industry while utilizing the business
partnership with NTT DATA as a company that offers independent solutions for asset management.
(Details of the termination of the capital alliance)
NTT DATA used to own about 4,210,000 common shares of XNET (whose ratio to the total number of outstanding shares
excluding treasury shares: 51.3%), but they sold all of these shares in step with the termination of the capital alliance. On May
1, 2024, XNET acquired about 4,080,000 treasury shares through ToSTNeT-3 (ratio to the total number of outstanding shares:
49.4%).
(Details of the new business alliance following the termination of the capital alliance)
XNET and NTT DATA decided to form a business alliance in the field of funds and securities based on a new contract which
consists of the following items as a step toward the business growth of both parties. In order to facilitate the new businessalliance, XNET plans to accept a part-time director dispatched from NTT DATA based on their request.
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・Continuous joint provision of services for clients・Joint planning and development of new asset management solutions
・Joint expansion of sales of the solutions of both companies to clients・Mutual support in terms of marketing measures, such as the introduction of solutions of both companies
・Placement of a responsible person and interaction between personnel to promote collaboration based on the business alliance・Information exchange concerning technology alliances, trends in advanced IT information, etc.
(2) Human Resources Strategy, investments① Human Resources Strategy
The company takes various measures concerning recruitment, training and retention in order to enhance human capital.
In the fiscal year ended March 2024, they published a recruitment site to further convey the charm of their business, leading
to an increase in communication with job applicants.

(Taken from the company’s documents)② Investment in systems
In the fiscal year ended March 2024, they started working on OS upgrade to maintain services as a defensive investment inaddition to the continuous improvement and expansion of application services. In this way, they are striving to continuously
maintain services.
Moreover, when it comes to the improvement and betterment of the existing applications, they have upgraded UI for about
92% of their applications.

3. Fiscal Year ending March 2025 Earnings Forecasts[3-1 Earnings Forecast]
FY 3/24
Sales
Operating Income
Ordinary Income
Net Income

5,547
1,066
1,101
741

Ratio tosales
100.0%
19.2%
19.8%
13.4%

FY3/25
(Est)
5,300
880
850
570

Ratio tosales
100.0%
16.6%
16.0%
10.8%

YoY
-4.5%
-17.5%-22.8%-23.1%*Unit: million yen. Estimates are those of the company.

Sales and profit are expected to decrease.
The company is forecasting sales of 5.3 billion yen, down 4.5% year on year, and an operating income of 880 million yen,down 17.5% year on year.
They are expecting that sales and profit will decrease year on year in both the first and second halves of the fiscal year, but
start rebounding in the second half of the fiscal year.
Regarding sales, continuous steady performance is projected in all services. However, with regard to AMO services, projects
concerning infrastructure refurbishment, for which the company received many orders in the fiscal year ended March 2024,
will reach a milestone, and the company plans to withdraw from spot projects with comparatively low profitability. While it15

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can be said that this is part of the optimization of human resources utilization as a step toward the “reinforcement ofmanagement foundations based on the expansion of core sales” stated in the Medium-term Management Plan, it will lead toa temporary decline in sales.
Furthermore, regarding the impact of the treasury share acquisition announced on April 30, 2024, while there is virtually no
impact on sales, it is projected that costs for various in-house systems, etc. will arise in step with leaving the NTT DATAGROUP. As a result, profit margin will slightly drop and the company plans to record the advisory fee pertaining to the treasury
share acquisition as a non-operating expense.
As mentioned in 【1-7 Shareholder return】 of Section 1 “Company Overview,” the company decided to pursue stable andproactive shareholder return while “being a company that does not decrease dividends” as a new dividend policy. For the
fiscal year ending March 2025, they plan to pay an annual dividend of 45.00 yen/share (up 15.00 yen/share year on year), witheach of the interim and year-end dividends being 22.50 yen/share. The expected payout ratio is 34.7%.

4. Conclusions
Regarding the aim of the treasury share acquisition in step with the termination of the capital alliance with NTT DATA, wewould like to keep an eye on the “improvement of capital efficiency” and “expansion of shareholder return” in addition to the“termination of listing of the parent company and its subsidiaries” and “ensuring of management independence.”
The company possesses a total of 7.8 billion yen in cash and cash equivalents and the acquisition of treasury shares is one
option for effective utilization. For the fiscal year ending March 2025, they plan to pay an annual dividend of 45.00 yen/share(up 15.00 yen/share year on year) based on their basic policy of pursuing stable and proactive shareholder return while “being
a company that does not decrease dividends.” The company further enhances shareholder returns through a significant increasein dividends and share buybacks.
Regarding the improvement of capital efficiency, the company forecasts ROE to improve 1% to 10% in the fiscal year ending
March 2025 as a result of trial calculation using the average of the equity ratio at the end of the fiscal year ended March 2024
prior to the treasury share acquisition and the equity ratio at the end of the fiscal year ending March 2025 after the treasury
share acquisition. ROE in the fiscal year ending March 2026, which is calculated by using the average of the equity ratio at
the end of the fiscal year ending March 2025 and the end of the fiscal year ending March 2026, is expected to show an evenmore significant growth, if sales and profit remain favorable, and the position of P/B ratio is likely to change. While thecompany forecasts a decrease in sales and profit for this fiscal year, we would like to pay attention to what kind of growththey can achieve, while receiving the tailwind of the business environment brought about by the “Asset Management Nation”
concept, which is a government policy.

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Bridge Report (4762) June 7, 2024

https://www.bridge-salon.jp/<Reference 1: Medium-term Management Plan 2022-2025>
The company, which achieved record sales and profit in the fiscal year ended March 2022, plans to promote growthstrategies and effectively utilize its assets to refine its “earning” and “spending capabilities” in order to continue to improveits corporate value and sustainable growth.
To this end, the company has formulated a Medium-term Management Plan with the fiscal year ended March 2023, as its
first year. This is the first Medium-term Management Plan made public.
[1. Sources of Added Value of the Company]
The three sources of added value of the company are “applications,” “know-how,” and “support.” The company generates
higher added value by fusing all the above at an advanced level.

(Taken from the company’s documents)(1) Application
As mentioned in “1. Company Overview,” the company’s “XNET service” is an application service with a fixed monthly fee
and no additional charges.
It is a pioneering subscription model and an advanced business model, distinct from the services of other companies.
The company currently has approximately 4,000 applications.
It possesses the latest and best applications by accumulating know-how over the applications it develops.
The development cost per application is typically 2-3 million yen, but the value of each application goes beyond thisamount, when it is considered that it is the latest application with accumulated know-how.
The 4,000 high-value-added applications generate stable high value or cash flow through the subscription model.

(Taken from the company’s documents)(2) Know-how
The company’s applications are improved and mounted with new functions, reflecting not only the voices of customers, butalso the latest needs that the company’s employees grasp on site, and changed on a daily basis according to the operational
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and institutional changes.
In addition, as the company owns the copyrights to the applications and has accumulated various types of in-house know-how,
it can provide the “latest and the best” at all times, ensuring that its applications do not become obsolete.
(3) Support
The company is more deeply customer-oriented than its competitors. It assigns a Client Executive (CE) for each customer tometiculously serve them and offer expertise-based support.
In many cases, the call centers of general system companies are either unaware of whether they can handle emergency requests
received over a phone call or are incapable of providing an immediate response if professional support is required.
In contrast, the company’s CEs can directly respond to customers in an emergency. It can also provide immediate, specialized
support and meticulously serve the customers as per the customer’s unique circumstances.
[2 Key Business Domains for Sustainable Growth]
To further strengthen its “earning capacity,” the company aims to become a “one-stop solution company” that not only
provides applications, but also offers a full range of solutions for asset management.
(1) Evolution into a One-Stop Solution Company
In addition to the provision of applications (software), the company provides further added value by AMO (undertaking
application management) and SO (undertaking business operations) services.

(Taken from the company’s documents)(2) Medium- to Long-Term Service Deployment: Growth of the businesses of AMO and SO
Over the medium to long term, the company will grow the businesses of AMO (undertaking application management) and SO(undertaking business operations) services to become a true one-stop solution company.
By achieving significant growth of these businesses, the company will create a product mix that meets the needs for asset
management.

(Taken from the company’s documents)(3) Business Strategy During the Medium-Term Management Plan
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The company will further strengthen its “core” segment, which secures stable sales through a subscription model, and maintainhigh profitability.
Focusing on the “core” will provide the basis for “earning capacity,” strengthen the management base, and further increase
corporate value.

(Taken from the company’s documents)[3. Investment Strategy]
The company will actively invest in applications, systems, and human resources while refining the “spending capacity.”(1) Development of New Application Services
The company will actively develop new solutions and further expand its application service, one of its sources of added value.
It intends to actively promote the development of new solutions in uncultivated areas of “asset management” and “peripheralbusinesses.”(Taken from the company’s documents)(2) System Investment
The company will invest “aggressively” and “defensively” in its existing services.
*Aggressive Investment
The company will invest for improving and upgrading over 4,000 existing applications, which are their high-quality assets, todevelop new solution services and improve convenience for customers.
*Defensive Investment
The company will ensure that the system is updated with the upgraded operating system to maintain a high level of service.
(3) Human Resources Strategy
The company will actively invest in human resources, which are vital.
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The company will continue to focus on actively recruiting experienced personnel.
At the same time, it will utilize the expertise of veterans and the know-how accumulated in the applications to train young
personnel for the future. In addition, the company will create an improved environment to enhance productivity.
The company’s strength is its ability to recruit industry veterans ready to work immediately in the face of the shortage of IT
personnel.
[4. Management Goals]
The following targets have been set for the final year of the plan, that is, the fiscal year ending March 2026.
Core Sales
5 billion yen
Operating
15.0% or higher
Income Margin
ROE
8.0% or higher[5. Shareholder Return]
The company considers the securing of stable management foundations and the elevation of shareholder profit based on
dividends as an important management measure and their policy was to provide return to shareholders stably and proactively.
However, they decided to take another step in the fiscal year ending March 2025 and pursue stable and proactive shareholder
return while “being a company that does not decrease dividends” as a new dividend policy.
They have a shareholder benefit program to express their gratitude to shareholders, deepen their understanding of the Mediumterm Management Plan, and encourage them to hold shares over the medium to long term.
(Overview of the Shareholder Benefit Plan)*Effective Period
In line with the period of the Medium-term Management Plan (April 1, 2022, to March 31, 2026).
*Eligible Shareholders
Shareholders whose names are recorded in the shareholder’s register on the record date, that is, the end of September or theend of March of each year during the effective period, and who have held at least one trading lot (100 shares) of the company.
*Benefits
All shareholders with at least 1 trading lot will receive a QUO Card worth 500 yen.

<Reference 2: Regarding Corporate Governance>◎ Organization type, and the composition of directors and auditors
Organization typeCompany with audit and supervisory committee
Directors
9 directors, including 3 outside directors (of which 3 are independent
directors)◎ Corporate Governance Report
Last update date: July 10, 2023
<Basic Policy>
We recognize that continuous improvement of business performance contributes to the development of society, enhances
corporate value, and meets the expectations of our shareholders and other stakeholders. To this end, we believe that it isimportant for corporate governance to function effectively, realize a system that can appropriately respond to changes in thebusiness environment, and conduct fair and transparent corporate management.
<Reasons for Non-compliance with the Principles of the Corporate Governance Code (Excerpts)>[Supplementary Principle 3-1-2]
Considering the company's foreign shareholder ratio (0.4% as of March 2023), the scale of its business, and the cost of20

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disclosure in English, the company has determined that it is premature to disclose and provide information in English at thistime.
It will discuss the necessity of English-language disclosure at meetings of the Board of Directors and other forums while
taking into consideration the trends in the ratio of foreign shareholders, the scale of its business, and the status of its overseas
business operations.
<Disclosure Based on the Principles of the Corporate Governance Code (Excerpts)>[Principle 1-4]
Currently, we do not hold any listed shares for strategic shareholding. Although we do not plan to hold such shares in the
future, if the possibility of holding listed shares should arise, we will take sufficient time to thoroughly examine and verify
the purpose, benefits, and risks in advance, based on this principle, and will disclose the results of such examination andestablish and disclose the criteria for exercising voting rights.
[Supplementary Principle 2-4-1](1) Human resources development and in-company environment development policies, and their statuses
Our approach to human resources development is based on on-the-job training (OJT), which is supplemented by off-the-job(OffJT) training, mainly the training programs listed below, to proactively support employees in strengthening their skills.
・ Group training for new employees
・ Business training by level・ Training on basic financial knowledge
・ Training on individual themes・ Introductory training in system development
・ Others
In addition, as an initiative to complement employee development, we are promoting the hiring of the following people
・ Hiring people who want to give back to the industry, such as veterans and retirees who have been active in the asset
management industry for many years
・ Hiring women left the industry after maternity or childcare and resigned employees who are experienced in the asset
management industry
・ Rehiring highly skilled and highly motivated former employees who are recognized by all
・ Hiring people (such as temporary staff) who are employed with us and who love our corporate culture and values
・ Hiring fresh graduates from high school
We actively hire people who understand our corporate culture and values, and we will continue to upgrade their skills as we
integrate them within the company.
(2) Ensuring diversity
In order to create and provide services that continue to be sought after in the asset management industry, we continuously hire
diverse human resources, including mid-career hires with a variety of work experience, and allocate them in a manner that
respects their motivation and abilities so that each and every employee can grow to become a professional.
<Promoting women in managerial positions>
We believe that diversity in human resources, or diversity in values, is essential for maintaining the vitality of an organization.
In this context, we are developing and improving various support systems to promote the active participation of women andenable them to work in a more flexible and diverse manner. As a result, the ratio of women in managerial positions is increasing
and will continue to do so in the future.
<Promoting non-Japanese employees in managerial positions>
At present, the percentage of non-Japanese employees is very low due to the fact that our business domain is limited to thedomestic domain, and we have no track record of promoting non-Japanese employees to managerial positions. For the same
reason, we do not set or disclose targets for the ratio of non-Japanese managers. However, it is our basic policy to evaluate
employees based on their abilities and achievements regardless of their nationality.
<Promoting mid-career hires to managerial positions>
In order to secure diverse human resources, our company has adopted mid-career hiring as a general rule since its founding,and mid-career hires account for 100% of our managerial positions. We will continue to focus on mid-career hiring based on
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our policy of cultivating and securing diverse human resources specializing in asset management IT and maintain the highratio of mid-career hires in managerial positions, which is one of our company's unique characteristics.
Please refer to our website for information on the status of our employees, managers, and our training policy.
Developing Human Resources Specializing in Asset Management IT https://www.xnet.co.jp/if/sus2.html[Supplementary Principle 3-1-3](1) Initiatives for sustainability
Recognizing the importance of ESG (Environmental, Social, and Corporate Governance) in improving corporate value overthe medium term, we have posted our policy on sustainability and other initiatives for sustainable growth on our website. For
more information on our approach toward sustainability, policies, and initiatives, please visit our website.
Sustainability https://www.xnet.co.jp/if/index_sus.html(2) Investment in human capitalIn addition to supporting the diverse work styles of our diverse human resources, we are developing and improving our worklife balance support system to enable our employees to realize their ideal work styles in order to meet the demand from society,such as promoting the active participation of women and rectifying long working hours.
In addition, human resources are essential for creating and providing services that continue to be sought after in the asset
management industry. To this end, we actively support the growth of each employee so that they can become professionals.
Please refer to our website for more information on our efforts to provide diverse work styles and human resources
development initiatives.
https://www.xnet.co.jp/if/sus2.html(3) Investment in intellectual property
As a provider of securities management systems and related services, we recognize that intellectual property is an important
corporate asset. Our policy is to maintain and manage these assets appropriately and utilize them effectively as our strength.
By securing intellectual property rights that are beneficial to our business as needed, and working on intellectual property
activities, we aim to differentiate our services and secure a competitive advantage in the market, as well as to prevent
infringement of intellectual property rights of third parties, including customers and business partners, and intend to reduce
legal risks in our business operations. In addition to maintaining regulations in the divisions in charge, we are working to raiseawareness of intellectual property rights by providing educational and enlightening opportunities for employees in cooperation
with NTT DATA Corporation.
[Principle 5-1]
Our company proactively responds to requests for individual interviews, including those from shareholders, taking into
consideration the equality of information disclosure and the necessity from the perspective of improving corporate value, and
the President and Representative Director responds to such requests.
Our policy for dialogue with shareholders and other stakeholders is as follows.
(i) The President and Representative Director oversees IR activities and promotes activities to promote dialogue withshareholders.
(ii) In conducting IR activities, the personnel in charge of corporate planning, IR, legal affairs, general affairs, accounting,and other areas within the Administration Division, under the direction of the President and Representative Director, aredirectly involved in everything from the preparation of IR materials to company briefings and interviews with individual
shareholders, in an effort to ensure continuous internal information coordination while paying close attention to insider
information and to ensure fairness of information in dialogues.
(iii) The President and Representative Director reports to the Board of Directors on the opinions received from shareholders
and others during IR activities and discusses how to respond to them after sharing and exchanging opinions on therequirements and issues.

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This report is intended solely for information purposes and is not intended as a solicitation for investment. The
information and opinions contained within this report are made by our company based on data made publicly available,
and the information within this report comes from sources that we judge to be reliable. However, we cannot wholly
guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness, orvalidity of said information and opinions, nor do we bear any responsibility for the same. All rights pertaining to thisreport belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice.
All investment decisions are the responsibility of the individual and should be made only after proper consideration.
Copyright(C) Investment Bridge Co., Ltd. All Rights Reserved.

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