Prestige International : FY2025.3 Q2 | Financial Results for the Q2, Fiscal Year Ending March 2025 with Explanation

Published November 19, 2024 at 2:10 a.m. UTC

Source: MarketScreener

Financial Results｜Interim Fiscal Year Ending March 2025

April 1, 2024 - September 30, 2024

October 29, 2024

Securities Code 4290

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Executive Summary

Sales increased driven by

growth in existing

businesses

Growth in the Group's core Automotive Business is the main driver, while the Property, Global and Financial Guarantee businesses are performing well.

Impact of

Vaccine-Related Operations

on Operating Profit

Excluding vaccine-related operations, year-on-year change in existing business.

Sales: +11.2%｜Operating Profit: +12.3%

*P30: Reference｜ Impact of Vaccine-Related Operations on Financial Results

Expansion to Misawa City,

Aomori Prefecture

Basic agreement concluded with Aomori Prefecture and Misawa City
Aomori BPO Misawa Branch (provisional name) is scheduled to start operations in April 2025.

▍Financial Results Summary for Q2 FY2025.3

▍Financial Results Summary for Q2 FY2025.3 by Segment

▍Shareholder Returns

▍Sustainability

▍Appendix

▍Financial Results Summary for Q2 FY2025.3

Summary of Consolidated Results｜FY2025.3｜Q2

(million yen)

FY2024.3｜Q2

FY2025.3｜Q2

Amounts are rounded down to the nearest whole unit.

YoY	Full-Year	Progress(%)
(%)	Forecast	vs. Full-Year Forecast

	Sales	28,763	30,770	+2,006	63,000	48.8%
	(+7.0%)


	Operating profit	3,857	3,729	-127	8,000	46.6%
	(-3.3%)


	Ordinary profit	4,071	3,961	-110	8,500	46.6%
	(-2.7%)


	Profit attributable to	2,357	2,231	-126	5,300	42.1%
	owners of parent	(-5.3%)


		Sales	Growth in the Group's core Automotive Business is the main driver, while the Property, Global and
			Financial Guarantee businesses are performing well.
		Operating Profit	Due to the completion of vaccine-related operations, profit declined in line with plan and at a lower
			level than in the Q1.
		Ordinary Profit	Slight decrease in ordinary profit due to the foreign exchange loss and the decrease in equity
			method investment income.
© 2024 PRESTIGE International Inc. All Rights Reserved.				5

Consolidated P&L Statement｜FY2025.3｜Q2

(million yen)

FY2024.3｜Q2

FY2025.3｜Q2

Amounts are rounded down to the nearest whole unit.

Change

YoY(%)

	Sales	28,763	30,770	+2,006	+7.0%

	Cost of sales	22,059	24,113	+2,054	+9.3%

	Gross profit	6,704	6,656	-47	-0.7%

	Gross profit margin	23.3%	21.6%	(-1.7pt)	―

	SG&A	2,846	2,927	+80	+2.8%

	Operating profit	3,857	3,729	-127	-3.3%

	Operating profit margin	13.4%	12.1%	(-1.3pt)	―

	Ordinary Profit	4,071	3,961	-110	-2.7%

	Ordinary profit margin	14.2%	12.9%	(-1.3pt)	―

	Profit attributable to	2,357	2,231	-126	-5.3%
	owners of parent


© 2024 PRESTIGE International Inc. All Rights Reserved.				6

Now we will begin the presentation for the Q2 financial results. Please refer to the material and start with the bottom right of page six.

First, for performance, net sales increased by 7% YoY to JPY30.77 billion, as the expansion of existing projects and the start of new projects covered the vaccine-related operation that ended in the previous fiscal year.

Cost of sales increased by 9.3% YoY due to an increase in Roadside Assist service expenses and dispatch fees for the Home Assist service. Other factors contributing to the increase were other services associated with increased sales, costs related to addressing rising wages, and the costs incurring for the non-operation of the Iwate BPO Fortress that opened in June. These factors resulted in a gross profit of JPY6.656 billion, a slight decrease of 0.7% YoY.

For SG&A expenses, an increase in allowance for doubtful accounts associated with the expansion of the rent guarantee business resulted in an increase of 2.0% YoY.

As a result of this, operating profits decreased by approximately 3% YoY to JPY3.729 billion. Ordinary profits decreased by 2.7% YoY to JPY3.961 billion, due to a decrease in investment equity in profits, resulting in final profits of JPY2.231 billion. This is generally close to the plan announced at the beginning of the period.

Consolidated Balance Sheet｜As of End of September, 2024

	(million yen)			Amounts are rounded down to the nearest whole unit.
		End of March	End of September	Change	Change(%)
		2024	2024

	Current assets	40,740	40,523	-216	-0.5%

	Non-current assets	27,096	28,729	+1,633	+6.0%

	Total assets	67,836	69,253	+1,417	+2.1%

	Current liabilities	17,778	18,032	+253	+1.4%

	Non-current liabilities	2,832	2,723	-109	-3.9%

	Total liabilities	20,611	20,755	+144	+0.7%

	Shareholders' equity	40,603	42,155	+1,552	+3.8%

	Accumulated other	3,418	2,956	-461	-13.5%
	comprehensive income


	Non-controlling	3,203	3,385	+181	+5.7%
	interests, etc.


	Total net worth	47,224	48,497	+1,273	+2.7%

	Total liabilities and	67,836	69,253	+1,417	+2.1%
	equity


© 2024 PRESTIGE International Inc. All Rights Reserved.			7

Next, the balance sheet details.

First, for assets, advances have increased due to an increase in delayed rent payments related to Entrust Inc.'s (Securities code: 7191) Rent Guarantee Business.

Also, assets went up due to an increase in in-process inventory for system development and other factors, along with an increase in fixed assets related to buildings associated with the opening of the Iwate BPO Fortress.

For debts, contract liabilities increased due to undetermined compensation for facility inspections in the Property Business and annual compensation for the Health Care Program in the Global Business.

For current liabilities, an increase in new contracts for Entrust's Rent Guarantee Business led to an uptick in advances received for the unexpired portion of the guarantee period.

Quarterly Sales

(million yen)
Q1	Q2	Q3	Q4
60,000
50,000
40,000
30,000
	23,385	24,225	22,223	24,619

20,000	6,281	6,133	6,010	6,570


	6,010	5,716	5,782	6,462


10,000	5,838	6,449	5,422	6,050


	5,254	5,926	5,007	5,536
0
	FY12.3	FY13.3	FY14.3	FY15.3

									63,000
									(forecast)
								58,738
							54,562
						46,744		14,993
				42,377		14,110
				40,617	12,483
			37,196
			10,672
		33,119		10,568			14,981
					14,272	30,770
	29,477		9,816
27,328
8,684				11,967
			11,016
6,936	7,596			10,309
		9,478					15,721
						14,845
		8,488
						13,568
	7,674
6,920
				11,599
			10,687	10,266
			9,271

		8,079
6,816	7,238
							15,048
		7,866	8,630	10,001	9,473	10,693	12,611	13,917
6,654	6,967

FY16.3	FY17.3	FY18.3	FY19.3	FY20.3	FY21.3	FY22.3	FY23.3	FY24.3	FY25.3

Due to rounding down fractions, some values may not equal the sum of the separate figures.

Next, sales and operating profits by quarter.

Net sales increased by 6% YoY. This translates to a growth of 4.5% for Q1 or the three months of April-June, which is the highest net sales pace ever achieved over a three-month period.

Quarterly Operating Profit

(million yen)
Q1	Q2	Q3	Q4 OPM(full-year)
12,000											14.6%	14.4%			15.0%
										12.9%			13.5%	12.7%
			12.6%			12.8%	12.8%	12.6%
				12.2%					(forecast)

10,000				12.0%				11.7%

11.2%													12.0%

		9.8%										7,840	7,921	8,000
8,000												(forecast)


											6,842	1,799	2,066		9.0%

6,000									4,959	5,233	1,918
								4,687		2,201
							4,230				1,997		6.0%
								1,179	1,374
						3,768					3,729
4,000					3,345		1,491		1,860
					1,368
			2,809	2,952
	2,621			1,064		1,362	1,247			1,967
	2,380		966				1,953
		762			1,193			2,000
		746		1,051			1,579	3.0%
	891			926
2,000	720	737	858		1,128	1,314
	782			1,023
	619	468			877	877
	672	790	745				1,886	1,889
	605	651		933	978	1,289	1,296	1,484	1,729
	609	661	775	899
0	504	540							0.0%

	FY12.3	FY13.3	FY14.3	FY15.3	FY16.3	FY17.3	FY18.3	FY19.3	FY20.3	FY21.3	FY22.3	FY23.3	FY24.3	FY25.3

Due to rounding down fractions, some values may not equal the sum of the separate figures.

Meanwhile, operating profits slightly exceeded the previous year's three- month period level due to the termination of vaccine-related operations in the current fiscal year, which was covered by this operation.

▍Financial Results Summary for Q2 FY2025.3 by Segment