Pronexus IncorporatedTSE: 7893

2024 Fiscal Year 1st Quarter Performance Review

Aug 9, 2024 at 3:38 AM UTC · Issued by Pronexus Incorporated

The First Three Months Earnings Report for the Year Ending March 31, 2025

Performance Review

(From April 1 to June 30, 2024)

July 31,2024

PRONEXUS INC.

(Securities code：7893)

Contents

	Results of Operations for the First Three Months
１	of the Fiscal Year Ending March 31, 2025

2 Shareholder Return and Stock Price

References		Corporate Profile
	Our Business Domains
		Business Environment
		Major Management Indicators

Summary of Performance

Performance	Revenue	11,794Million yen （YoY change -	0.1％）
	Operating Profit	3,232	2.4
	Million yen （YoY change＋	％）
	Profit attributable to owners of parent	3,192	46.3
	Million yen （YoY change＋	％）

Point	 Orders increased for web services,English translation services etc.
The restructuring of the Tokyo Stock Exchange's market segments, growing
	societal demands related to ESG, and an increase in the number of individual
	shareholders
	 Negative impact of the electronic provision of convocation notices is
	minor.
	⊖	March 2023 Introduction of the system for the electronic provision decreased the
	number of printed pages.
	⊕	The shift to electronic provision has been more gradual than expected, an increase in the
	number of printed copies, accompanying the increase in the number of individual
	shareholders, the promotion of orders for new services in response to the introduction of
		the new system

Revenue is

YoY change 7Million yen Down

Operating Profit is

YoY change 75Million yen UP

 Decrease due to change in the accounting for the annual fee sales
for some services. （No impact on full-year results / Change from lump-sum	If there is no change in the method of recording sales
recording at the beginning of the period to monthly installments.)	Revenue YoY UP 155Million yen
 Operating income increased due to decrease in paper cost and sales
promotion cost	Operating Profit YoY UP 237
Million yen

 Gain on sale of investments accounted for using the equity method
1,411Million yen. （ No impact on operating income, contribution to income before income taxes
and minority interests and thereafter ）	3
Note: The Company has adopted International Financial Reporting Standards (IFRS) from the Securities Report for the fiscal year ending March 31, 2020.

Financial Highlights 1Q for FYE March 2024(IFRS)

Increased orders for IR-related services, minor negative impact has of the shift to electronic provision of convocation notices.Profit increased due to lower costs and recording gain on sale of investments accounted for using equity method of 1,411 million yen

							（Unit：Million yen）

	1Q for FYE March 2024	1Q for FYE March 2025	YoY change	Compared to initial forecast

	Amount	Share(%)	Amount	Share(%)	Amount	(%)	Forecast	Difference
	from forecast

Revenue	11,800	100.0	11,794	100.0	(7)	(0.1)	31,000	38.0

Operating profit	3,157	26.8	3,232	27.4	75	2.4	2,500	129.3

Profit before tax	3,184	27.0	4,676	39.6	1,492	46.9	3,900	119.9

Profit attributable to	2,182	18.5	3,192	27.1	1,010	46.3	2,650	120.5
owners of parent


ROE（％）		－		－		－	10.0	－

EPS（Yen）		85.53		125.13		＋39.6	103.88	－

Starting from the first three months of the current fiscal year, the accounting for the annual fees for the practical information provision services for our client companies was changed from

If there is no change in the method of recording sales

recording a lump sum at the beginning of the fiscal year previously to recording monthly installments. the sales for these services for the first three months decreased by 162 million yen year on year. （No impact on full-yearresults / Change from lump-sumrecording at the beginning of the period to monthly installments.)

Revenue YoY UP 155Million yen Operating Profit YoY UP 237Million yen

Financial Highlights Growth in non-printing sales

An increase in the ratio of revenue to sales in the non-printing sector due to higher revenues from the non-printing sectors of web services and English translation services, and progress, albeit slower than expected, in the electronic provision of convocation notices.

非印刷・印刷分野別の売上推移

非印刷分野印刷分野

（Unit：Million yen）

10,976

Revenue 10,441 9,435

Non-	49.1	49.8	49.6
printing	％	％	％

11,800

In March 2023,adoption of electronic

provision of convocation notices

Sales of the shareholder convocation notices 】

Previ	Mailing ▶ Generally recorded in the
ous	printing sales

	Published on the Web
ge	▶Content creation costs are recorded
in non-print
Chan
	Accompanying printed materials
	▶Recorded in printing sales

64.5

％

11,794

	Growth areas
	 System
	 Web
	 English translation
	 BPO
	 Event
	 Consulting seminars
	 New creation of
	support for overseas
65.3	expansion
％	 Database

2021/3	2022/3	2023/3	2024/3	2025/3
1Q	1Q	1Q	1Q	1Q

Revenue structure

1. Orders for products related to financial results and general shareholders' meetings from listed companies with a fiscal year end in March peak in the first quarter. As a result, first quarter sales account for about 40% of our annual revenue.

2. The ratio of regular orders, for which orders are stable, to non-regular orders, which are affected by market conditions, is 6:4.

1. Seasonal factor	2.	Regular/Irregular orders
Revenue Breakdown

（Unit：Million yen）

四半期ごとの売上収益の推移

31,000

■

FYE Mar 2024(IFRS)

（Forecast）

E Mar 2025(I

■

30,117

11,794

11,800

5,916

6,275

6,126

Full Year

About

35％

約65%

	(Apr.-Jun.)	(Jul.-Sep.)	(Oct.-Dec.)	(Jan.-Mar.)
	四半期ごとの営業利益の推移			（Unit：Million yen）
■ FYE Mar 2024(IFRS)
■ FYE	Mar 2025(IFRS)				2,500

3,232
				（Forecast）

3,157						2,435


						38

					△252		△509
		Q1	Q2	Q3	Q4	Full Year
	(Apr.-Jun.)	(Jul.-Sep.)	(Oct.-Dec.)	(Jan.-Mar.)

Regular orders

Listed companies disclosure/IR-related

・Securities reports ・Earnings reports

・Convocation notices for shareholders' meetings

・Business reports

・Services to support shareholder

meetings etc.

Concentration in the first

quarter

Irregular orders

Listed companies disclosure/IR- related

・IPO ・Finance

・IR support, investor briefings etc.

 Financial product disclosure ・New domestic and international

funds

・Domestic REIT IPOs,Finance etc.

	*In the year ended 31 March 2024, the provisional accounting treatment for mergers and acquisitions was finalized. Operating profit for the first	6
Copyright© PRONEXUS.INC All Rights Reserved.	three quarters of FY2024 has therefore been calculated based on figures retrospectively adjusted using the finalized accounting treatment.

Revenues Composition by Product Area

Revenue of IR and event-related sales for listed companies fell below that of the same period of the previous year. Due to a change in the accounting for the annual fees for the practical information provision services for our client companies was changed from recording a lump sum at the beginning of the fiscal year previously to recording monthly installments.

					（Unit：Million yen）

	1Q for FYE March 2024	1Q for FYE March 2025	YoY change

	Amount	Share(%)	Amount	Share(%)	Change	(%)

Listed companies disclosure-related	6,256	53.0	6,324	53.6	68	1.1

Listed companies IR and events-	3,739	31.7	3,646	30.9	（93）	（2.5）
related, etc. business

Financial instruments disclosure-	1,551	13.1	1,567	13.3	16	1.1
related

Database-related	254	2.2	257	2.2	2	1.0

Decrease of 162 million yen due to change in accounting method for recording sales of annual membership fees

Revenue by Product Area

Listed Companies Disclosure-Related

68Million yen

（Unit：Million yen）

(1.1%)

Impact of the electronic provision	Negative impact is minor
of convocation notices

March 2023 Introduction of the system for the electronic provision decreased the

5,231

5,659

6,072 6,256 6,324

⊖ number of printed pages.

the shift to electronic provision has been more gradual than expected, an increase

in the number of printed copies, accompanying the increase in the number of

⊕ individual shareholders, the promotion of orders for new services in response to the

introduction of the new system

Positive factors

21/3 1Q

22/3 1Q

23/3 1Q

24/3 1Q

25/3 1Q

Orders increased for finance-related products
- Financing increased against the backdrop of robust stock markets
Orders increased in outsourcing services for the preparation of disclosure documents
- With persisting high demands for operational streamlining in line with work-style reform


Revenue		Major factors
Order volume	Market share	Prices

Shareholders' meeting-related	Convocation notices for shareholders'
meetings/printing of resolution notices, etc.

Account settlement-related	Securities reports/earnings reports

Systems-related


IPO/finance-related	Prospectuses and registration documents

Revenue by Product Area
Listed Companies IR and events-Related, etc.
			Down
			93Million yen	Positive factors
			(2.5%)
（Unit：Million yen）			3,739	3,646	 Orders increased for web services,English translation

		3,078			services etc.
				▶ The restructuring of the Tokyo Stock Exchange's market segments, growing
	2,788				societal demands related to ESG, and an increase in the number of individual
2,503					shareholders
					Negative Factors
					 Revenue from business reports for shareholders decreased as the number of
					companies preparing such reports has declined.
					 The accounting for the annual fees for the practical information provision
					services for our client companies was changed from recording a lump sum at
					the beginning of the fiscal year previously to recording monthly	（no
					installments. The sales decreased by 162 million yen year on year.
21/3 1Q	22/3 1Q	23/3 1Q	24/3 1Q	25/3 1Q	impact on the performance for the full year as a result of this change)


Revenue		Major factors
Order volume	Market share	Prices

Business reports

Online IR services

English-language IR tools

Visuals and operational support for shareholders' meetings

Revenue by Product Area

Financial Instruments Disclosure-Related

16Million yen

（Unit：Million yen）

(1.1%)

1,727

Positive factors

 Orders increased for promotion tools, mainly for

salescompany websites

1,428

1,571 1,551 1,567

▶ The backdrop of the increase in the number of

individual investors following the introduction of

the new NISA (Nippon Individual Savings Account)

scheme.

Negative Factors

21/3 1Q

22/3 1Q

23/3 1Q

24/3 1Q

25/3 1Q

In the real estate securities business, a decrease in financing compared to the same period of the previous fiscal year and a decline in orders for products related mainly to redemption of foreign bonds.

Revenue		Major factors
Order volume	Market share	Prices

Domestic investment trust management company- related J-REIT listed investment trust-related Foreign investment trust management company-related Foreign company-related

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