Weathernews Inc. TSE:4825

Weathernews : Supplementary material on financial results for FY2024

Published

Source: MarketScreener

Financial Results for 2024.5

(ended May 31, 202４)

Weathernews Inc

July 8, 2024

1

  1. 2024.5 Results （P3）
    • Summary of financial results
    • Operating Profit Analysis (Y/Y)
    • Update on the Meteorological Data Strategy
    • Sales by Segment
    • Sea business
    • Mobile/ Internet business
  3. 2025.5 Full-year Forecast （P10）
    • Summary of Financial plan
    • Redefine business areas
    • Focused Customers
    • Introduction of Wxtech(WeatherTech)
    • Wxtech(WeatherTech) KPI Progress
    • Introduction of Weathernews Pro (coming soon)
    • Dividend Guidance
  5. Appendix (P19)

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１．2024.5 Results

Summary of financial results

【Net sales】 22,242 MJPY（+5.3％ Y/Y）

Mobile, Sea and Land businesses drived sales growth.

【Operating profit】 3,270 MJPY (+0.4％ Y/Y）

Temporary cost recorded due to business liquidation for medium- to long-term growth, but profits remained flat.

(Millions of Yen)

2023.5

2024.５

2024.5

Y/Y

vs Fcst

Actual

Forecast

Actual

Net sales

21,114

22,500

22,242

+5.3%

△1.1%

Operating profit

3,256

3,500

3,270

+0.4%

△6.6%

Margin(%)

15.4

15.6

14.7

△2.2Pt

△0.9Pt

Ordinary profit

3,284

3,500

3,341

+1.7%

△4.5%

Profit attributable to

2,398

2,500

2,437

+1.7%

△2.6%

owners of parent

EPS (JPY)

217.7

226.5

220.9

+5.3JPY

+5.6JPY

ROE (%)

13.7

13.2

12.8

+0.9Pt

△0.4Pt

FOREX Rates (USD/JPY)

135.5

130.0

147.9

+8.7JPY

+17.8JPY

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１．2024.5 Results

Operating Profit Analysis (Y/Y)

  • Personnel expenses increased due to human resource strengthening for overseas business and IT development. (including SaaS product development)
  • Communication expenses increased due to expansion of cloud-based service development environment.
  • Temporary costs incurred such as unrecorded liabilities liabilities, disposal costs related to our weather radar.

(Major cost items)

・Travel and transportation costs ・Utility costs

・Supplies

・Outsourcing costs, etc.

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１．2024.5 Results

Update on the Meteorological Data Strategy

・Reviewed the strategy for enriching data, one of the company's strengths, from this FY.

・We reduced the production of its weather observation infrastructure (EAGLE Radar) and recorded temporary cost for its disposal cost and valuation losses.

・We will further accelerate our efforts to acquire weather data that can be obtained globally.

"EAGLE Radar" a compact weather radar for high-frequency observation

New compact and lightweight weather IoT sensor "Soratena Pro"

Accelerate data acquisition to develop local data on weather and climate worldwide

5

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１．2024.5 Results

Sales by Segment

Millions

2023.５

2024.５

Y/Y

Business environment and results

of Yen

Actual

Actual

(%)

・Decrease in the number of service voyages in existing contracts due to geopolitical risks.

Sea

5,503

5,813

+5.6

・The number of service voyages remained flat due to lost orders from some customers. Overall revenue increased due to new

orders for an environmental navigation support service, and the impact of foreign exchange rates.

・In the airline market, passenger volume on both domestic and international flights continued to recover due to demand for

Sky

1,235

1,261

+2.1

inbound travel to Japan and domestic leisure demand.

・Sales to domestic and international airlines market recovered, and sales increased with new services in the domestic

helicopter market

・Increased need for weather information for disaster prevention and transportation during extreme weather events.

Land

3,202

3,495

+9.1

・In the expressway market, sales increased as customers expanded due to the provision of weather information based on

regional characteristics.

・Increased marketability of energy weather in general due to the growing market for renewable energy in Japan and Europe.

Environment

1,044

1,184

+13.4

・In Japan, sales of SaaS products WxTech Data and Weatherｎews for Business remained strong, resulting in increased

revenues.

Other BtoB

50

123

+142.8

・In the Climate Tech business, sales increased due to an increase in orders for Climate Impact, a climate change risk analysis

service in Japan.

・DAUs continue to increase due to advertising investment in TV commercials and increased attention to domestic weather

Mobile・Intern

7,829

8,206

+4.8

topics.

et

・Overall sales increased due to an increase in advertising revenue on the back of an improvement in the advertising market

and an increase in DAU, despite a decrease in sales to mobile carriers in the subscription sales.

・Increased importance of weather information such as heavy rainfall and heat waves associated with extreme weather

Broadcast

2,247

2,159

△3.9

events in disaster prevention reporting.

・Sales declined while efforts to improve service operation efficiency and build new services continued.

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１．2024.5 Results

Sea business - 1

・Cargo movement slowed against a backdrop of heightened geopolitical risks in Europe.

・Number of voyages remained flat due to slowdown in cargo movement caused by market conditions and loss of orders from some customers. Revenues increased due to new orders for environmental navigation support service in the Americas, and the effect of FOREX ｒates.

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１．2024.5 Results

Sea business - 2

TAM of Sea planning business

(shown in Mid-term management plan)

Q4

Q4

Number of vessels using our services

(counts as one vessel even when using multiple services)

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１．2024.5 Results

Mobile/ Internet business

  • Increased awareness through investment in advertising and the No. 1 rating in forecast accuracy led to an increase in daily usage and an increase in accumulated DAU. In addition, advertising revenues increased on the back of improved advertising market conditions.

● Subscription sales declined due to lower sales to mobile carrier.

*DAU: Daily Active Users

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2．2025.5 Full-year Forecast

Summary of Financial plan

【Net sales】 23,500 MJPY（＋5.7％ Y/Y）

Plan to increase revenues through continued growth in mobile weather business, growth in Europe in nautical weather business, and expansion of SaaS business in Land Domain(*).

【Operating profit】 3,800 MJPY（＋16.2％ Y/Y）

Steadily promote the transformation to a more profitable structure and aim for record profits at each stage of the profit structure.

(Millions of Yen)

2024.5 Actual 2025.5 Forecast

Y/Y

Net sales

22,242

23,500

+5.7%

Operating profit

3,270

3,800

+16.2%

Margin (%)

14.7

16.2

+1.5Pt

Ordinary profit

3,341

3,800

13.7%

Profit attributable to

2,437

2,700

+10.8%

owners of parent

EPS (JPY)

220.9

244.2

+23.3JPY

ROE (%)

12.8

13.3

+0.5Pt

FOREX Rates (USD/JPY)

147.9

150.0

+2.1JPY

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