Zenrin Co., Ltd.TSE: 9474

Results for Fiscal 2024

May 23, 2024 at 5:58 AM UTC · Issued by Zenrin Co., Ltd.

Securities Code: 9474

(Year Ended March 31, 2024)

May 15, 2024

*Note:

This document contains forward-looking statements based on assumptions, forecasts and plans in light of information available to ZENRIN Co., Ltd. as of the preparation date of this document. Actual performance may vary significantly from the forecast figures due to various risks and uncertainties owing to global economic trends, market demand, status of competition, exchange fluctuations and other factors.

The information that appears in this document rounds down fractions to the nearest specified unit and rounds off decimals in the percentage of change to the first decimal place. In addition, cases where the percentage of change exceeds 1000% and cases where one or both of the items of comparison are negative are shown as "-."

*Disclaimer:

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.

Results for	Table of Contents
FY2024

Ⅰ . Overview of Results for Fiscal 2024

Ⅱ. Earnings Forecast for Fiscal 2025

Ⅲ. Business Overview

Appendix

©	ZENRIN CO., LTD. All Rights Reserved.	1

Results for	Table of Contents
FY2024

Ⅰ . Overview of Results for Fiscal 2024

Overview of Results 2-1. Sales by business
2-2. Causes for Change in Operating Income [Sales / Cost]

Sales-increasingEffect of Price Revisions
Changes in Cash Flows
Shareholder Returns

©	ZENRIN CO., LTD. All Rights Reserved.	2

Results for

Ⅰ . Overview of Results for Fiscal 2024

1. Overview of Results

FY2024

Key Points of Results for FY24

Sales and operating income increased

for the first time in two years

Sales

◼ Net sales increased for the first time in two fiscal years as sales of data for in-car navigation systems in the automotive-related business increased

significantly thanks to the recovery in automobile production, despite the effect of a reactionary fall in orders received in the IoT-related business, which

Result

were recognized in the previous fiscal year, and the discontinuation of certain services provided by our subsidiaries.

Expenses

◼ Operating income increased for the first time in two fiscal years as the effect of the increase in sales outweighed the effect of increase in cost of sales

・

related to the increase in net sales and the effect of increase in operating expenses mainly due to an increase in expenses for developing map databases

Profit

to improve the precision of location data and an increase in personnel expenses resulted from an increase in base salary.

and loss

(Amounts in million yen)

FY24

(1) FY23

(2) FY24

(3) FY24

Compared to FY23

Compared to Forecast

Actual

Forecast

(3) - (1)

(3) - (2)

Actual

(Apr. 28 2023)

% of Change

Net Sales

58,933

62,000

61,335

+2,401

+4.1%

-664

-1.1%

2nd best

Operating Expenses

57,134

59,500

59,353

+2,219

+3.9%

-146

-0.2%

Operating Income

1,799

2,500

1,981

+182

+10.1%

-518

-20.7%

Operating Margin

3.1%

4.0%

3.2%

+0.1pt

―

-0.8pt

―

Ordinary Income

2,104

2,700

2,060

-44

-2.1%

-639

-23.7%

Profit Attributable to

2,770

1,800

2,078

-692

-25.0%

+278

+15.5%

Extraordinary income from gain on

Owners of Parent

sales of investment securities and gain

Extraordinary income from gain

on sales of non-current assets

on sales of investment securities

ROE

5.9%

4.0%

4.4%

-1.5pt

―

+0.3pt

―

(Return On Equity)

Results for	Ⅰ ．Overview of Results for Fiscal 2024
2-2. Sales by business
FY2024

(Amounts in billion yen)

Compared

to FY23

(% of change)

Compared to Forecast

(% of change)

Business overview of FY24

58.9	61.3

	+2.4	-0.6	ー
TOTAL
(+4.1%)	(-1.1%)

16.1

16.4

Product

Business

-0.2-0.7

(-1.5%)(-4.2%)

While stock-type services remained firm, sales decreased due to a reactionary fall in sales of residential maps and entrusted services from the strong results in the previous fiscal year.

		8.1
7.4

		6.7
6.5

	14.0


Public solution	+0.6	+0.4	⚫	Provision of residential map data to government offices
Business
(+8.9%)	(+5.8%)		and entrusted services for local governments increased.


			⚫ Thanks to recovery in sales promotion demand, DMs,
Marketing solution	+0.2	+0.0
	sales promotion support services, and consulting
Business	(+4.2%)	(+1.3%)
		services increased.

14.5

16.1

IoT

Business

-0.5-0.8

(-3.6%)(-5.7%)

Sales decreased due to a reactionary fall in entrusted services from strong results in the previous fiscal year and the discontinuation of certain services provided by subsidiaries.

13.9
FY23	FY24

Automotive	+2.2	+0.3	⚫ Thanks to recovery in automobile production, sales of
Business
	(+16.0%)	(+2.4%)	data for in-car navigation systems picked up.

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Results for	Ⅰ ．Overview of Results for Fiscal 2024

FY2024 2-2. Causes for Change in Operating Income [Sales / Cost]
	Operating Income (compared to FY23)	(Amounts in billion yen)

+0.1 billion yen

Increase in cost

(Compared to Forecast : -0.5billion yen)

of sales due to

increased sales

Personnel

◼ Impact of base-pay up

expenses

Effect of Increased

(Including overseas subsidiaries)

Sales from Price

Revisions

Development

expenses of map

databases

Details on

Other expenses

◼ Marginal profit margin

improved due to changes

in sales composition

Increased sales

1.9

1.7

mainly in automotive-

related business

+10

Operating		Changes in Sales		Changes in Operating Expenses	Operating
Income		(compared to FY23)		(compared to FY23)	Income
FY23			+ 2.4			+ 2.2	FY24
			billion yen			billion yen

		(Compared to Forecast : -0.6	billion yen)	(Compared	billion yen)
	to Forecast : -0.1

©	ZENRIN CO., LTD. All Rights Reserved.	5

Results for	Ⅰ ．Overview of Results for Fiscal 2024
3. Sales-increasing Effect of Price Revisions
FY2024

Sales-increasing effect of price revisions

Schematic illustration of sales-increasing effect of price revisions

during FY2024

[Approx. 1.0 billion yen]

Sales-increasingeffects for the FY24 were largely in line with forecast.
In the FY25, the increase in sales is expected to be approximately 2 billion yen due to the expansion of products and services subject to price revisions.

Progress status of price revisions for each product and service

Scale of revenue increase due to price revision

23/4

Approx. 1.0 billion yen

FY2424/4

Approx. 3.0 billion yen

FY25 25/3

5. Map data for in-car navigation systems

(Timing and impact undetermined)

4. Entrusted services

3. Provision of residential map data

2. GIS package and online residential map and other data services

1. Printed residential maps

	Main products and services	Business	Type	Implementation period	Notices
	of price revision

1	Printed residential maps		PR		Flow	April 2023～	ー

	PU


	GIS package
		PR				Cancellation for the reason of price revision has been almost
2	Online residential map and				Stock	August 2023～

	PU		none.
	other data services

	Provision of residential
3		PR		Flow		Price revision negotiation started in April 2023.
map data
	PU		April 2024～

						(Some expressed during FY23)	Project negotiation reflecting increases in personnel expenses
4	Entrusted services	All business	Flow
	and procurement cost started in April 2023.


	Map data for in-car					Under negotiation for the	The new navigation model under negotiation is scheduled to be
5		AM		Flow	released in or after March 2026.
navigation systems			next model to be released
					(Prices are usually negotiated two to three years in advance.)

©	ZENRIN CO., LTD. All Rights Reserved.	6

Results for	Ⅰ ．Overview of Results for Fiscal 2024
4. Changes in Cash Flows
FY2024

10,000

7,500

5,000

2,500

-2,500

-5,000

-7,500

-10,000

7,995

6,351

8,201

6,541

6,318

	Free cash flows	2,162
	Financing cash flows	-3,114
	Effect of exchange rate	200
	Net increase in cash and	-752
	cash equivalents

	Cash and cash equivalents	13,965
	at beginning of period
	Cash and cash equivalents	13,213
	at end of period

FY20 FY21 FY22 FY23 FY24

											(Amounts in million yen)
					5,036	1,309	4,417	4,090	2,162	Third-party allocation of shares (NTT)

	Gain on sales of non-current
	assets arising from the								Purchase of shares of subsidiaries
	reorganization of subsidiaries, etc.
													Redemption of bonds
											-8
-2,958	-5,041	-3,784	-2,451	-4,155						-2,007		-4,629	6,744	-3,114
													-
FY20	FY21	FY22	FY23	FY24	FY20	FY21	FY22	FY23	FY24	FY20	FY21	FY22	FY23	FY24

	Operating Cash Flows	Investing Cash Flows	Free Cash Flows	Financing Cash Flows

FY2024	6,318 million yen	-4,155 million yen	2,162 million yen	-3,114 million yen
(Actual)

Compared to	Inflows down	Outflows up	Inflows down	Outflows down
FY2023	222 million yen	1,704 million yen	1,927 million yen	3,629 million yen

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Results for	Ⅰ ．Overview of Results for Fiscal 2024
5. Shareholder Returns
FY2024

Basic policy for shareholder return

Dividend

Return income to shareholders derived from income growth based on the medium- to long-term business plan, while taking into account maintaining an adequate amount of internal reserves

Target dividend on equity (DOE) on a consolidated basis of 3% or higher

FY24(Planned) Annual diviend : 28.5 yen/share (compare to FY23 +1.5 yen) / DOE : 3.6% (compare to FY23 +0.1pt)

dividend		interim	Year-end	Annual	DOE		DOE(%)
(yen/share)
					3.7%
40					3.6%	4.0%
		3.5%	3.5%	(Forecast)
	3.4%	3.4%	(Planned)

					28.50	30.00
					(Forecast)
30				27.00		3.0%
		26.00	(Planned)

	25.00	25.00			15.00
			15.00
			13.50	13.50	(Forecast)
	12.50	12.50	(Planned)


20					Increase		2.0%
					(+1.5 yen)
				13.50	13.50	15.00
10	12.50	12.50	12.50	(Forecast)	1.0%

0							0.0%
	FY20	FY21	FY22	FY23	FY24	FY25

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Results for	Table of Contents
FY2024

Ⅱ. Earnings Forecast for Fiscal 2025

Earnings Forecast for Fiscal 2025
Changes in Net Sales, Income and Profit

3-1. Assumptions for Earnings Forecasts [Sales by business]

3-2. Assumptions for Earnings Forecasts [Sales / Costs]

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