Avant : Presentation for the third quarter of the fiscal year ending June 30, 2024

3836 TSE Prime

Avant Group Corporation

Financial Results Briefing

for the third quarter of Fiscal Year June 2024

April 26,2024

This is an unofficial translation. In the event of any discrepancy between the original Japanese

text and this English translation, the Japanese text shall prevail.

©AVANT GROUP CORPORATION. All Rights Reserved.

Financial Highlights for the Q3/24

Net Sales

Operating Income

¥17,806million	¥ 3,075million
(YoY＋10.0％）	(YoY＋5.3％）

Increase due to strong growth in the Digital Transformation Promotion Business (hereafter, DX Promotion Business) and continued high growth rate in the outsourcing business

Increase due to decrease in one-time expenses incurred in the previous fiscal year as a result of group reorganization and the effect of higher sales in the DX Promotion Business, despite increase in fixed personnel expenses resulting from increase in headcount, outsourced processing expenses to respond to increase in orders, and investment-related expenses to realize future growth.

• No changes are made to the forecast for the current financial year, which is expected to achieve sales of ¥ 24,000 million and operating profit of ¥ 3,850 million.
• The year-end dividend per share for FY2024 is expected to be 19 yen per share, with the aim of achieving the 8% ratio of dividends to net assets, which is the target for the period of the new medium-term management plan.

▼BE GLOBAL 2028' Actions to realise

• Avant Releases New Generation of AVANT Cruise
• Avant Group forms capital and business alliance with Figurout Inc.
• Avant and Nomura Securities Co., Ltd. jointly develop corporate value enhancement support software.
• Integrated Report "CREATIVE DIALOG 2023" published.
• Avant Group establishes a joint venture (consolidated subsidiary) in India.

©AVANT GROUP CORPORATION. All Rights Reserved.

2

Acquisition of own shares

• At a meeting of the Board of Directors held on April 26, 2024, the Company resolved on the following matters pertaining to the acquisition of own shares in accordance with Article 156 of the Companies Act as applied pursuant to Article 165, Paragraph 3 of the said Act.

Reason for acquisition of own shares

As part of its shareholder return policy, we are acquiring own shares to increase the value per share.

Details of matters relating to the acquisition
(1) Class of stocks to be purchased	Common stock
(2)	Total number of shares that may be acquired	1.2 million stocks (maximum)
(3)	Total amount for shares to be acquired	1 billion yen (maximum)
(4)	Acquisition Period	May 1, 2024 to November 30, 2024

©AVANT GROUP CORPORATION. All Rights Reserved.

3

【Reference】 Segment Reorganization

Group Governance

DX Promotion

Outsourcing

Before

Disclosure Net

Disclosure Net

After

Consolidated		Consolidated		Management Solutions
Accounts		Accounts Consulting		Business
Software		& Operations		(Software & consulting)

Consolidated				Consolidated
Accounts		Outsourcing		Accounts Consulting
Software				& Operations

BI＆Data

CPM*

Platforms

Management Solutions

BusinessCPM*

(Software & consulting)

Outsourcing

BI＆Data

Platforms

DX Promotion

Consolidated Financial Disclosure Business

Management Solutions Business

Business

※CPM：Corporate Performance Management

©AVANT GROUP CORPORATION. All Rights Reserved.

4

【Reference】 New business segments

Consolidated Financial Disclosure Business (M1)

In addition to the development and maintenance of our own packaged software "DivaSystem" for consolidated management support and consolidated accounting, we also provide outsourcing of consolidated and non-consolidated financial statements using this software, supporting value creation through corporate information disclosure. As for our position within our group, we aim to establish a business model that combines the software business and outsourcing business.

The consolidated financial statement disclosure service also includes an information search service for disclosure documents

provided by Internet Disclosure Co., Ltd. primarily for auditing firms.

Digital Transformation Promotion Business (M2)

Through consulting and system development, we provide AI and BI solutions that analyze, predict, and visualize data from a data platform that utilizes all kinds of data surrounding companies, and support companies in promoting digital transformation and data-driven management. From major cloud vendors to multi-cloud compatible software, you will learn about the latest information utilization methods and generation AI specializing in data utilization, as well as train engineers and develop your own data utilization platform products. We also aim to expand our group's products.

Management Solutions Business (M3)

Focusing on group management, consolidated accounting, and business management, we aim to visualize and maximize a company's "invisible value," and provide one-stop support from consulting to system planning, construction, implementation, operation, and maintenance. In addition to in-house development, it is also possible to develop in combination with software

developed by other companies. In this segment, we will continue to create solutions that make the most of the group's assets

and provide solutions that provide management information that will improve corporate value.

©AVANT GROUP CORPORATION. All Rights Reserved.

5

INDEX

Ⅰ. Summary of financial results for the third quarter of FY June 2024

Ⅱ. Earnings and Dividend Forecast

Ⅲ. 'BE GLOBAL 2028' Actions to realise

＊ Figures in this presentation are rounded down to the unit of display.

The information contained in this material regarding the business outlook and other forecasts and strategies etc. are forward-looking statements and are determined within the range that could normally be predicted based on the information reasonably available to the Company at the time of preparation of this material. Investors should be aware of the risks, however, that actual results may differ from the business prospects described in the material due to the occurrence of extraordinary circumstances that cannot usually be predicted or the occurrence of results that cannot usually be predicted. The Company will proactively disclose information that is considered material to investors, but investors should be advised not to make judgment based entirely on only the business prospects described in this material. This material should not be copied or transferred for any purpose without permission of the Company.

©AVANT GROUP CORPORATION. All Rights Reserved.

6

I. Summary of financial results for the third quarter of FY June 2024

©AVANT GROUP CORPORATION. All Rights Reserved.

7

Results Highlights

• Net sales increased by 10.0% year-on-year to 17,806 million yen due to significant growth in the DX promotion business and continued to maintain a high growth rate in the outsourcing business.
• Operating income increased by 5.3% year-on-year to 3,075 million yen due to a decrease in one-time expenses incurred in the previous fiscal year due to the restructuring of the Group and the effect of an increase in sales in the DX promotion business, despite an increase in fixed personnel costs due to an increase in personnel and outsourcing processing expenses to meet an increase in orders, as well as expenses for investment to achieve future growth.

	FY6/24	YoY Variance
(million of yen)	Q3	Yr earlier	% chg
Net Sales	6,063	5,664	7.0%
Cost of Sales	3,407	3,174	7.3%
Gross Profit	2,656	2,489	6.7%
GPM	43.8%	44.0%	-0.2pt
SG&A	1,471	1,362	8.0%
Operating Income	1,185	1,127	5.1%
OPM	19.5%	19.9%	-0.4pt
Net Income	757	729	3.9%
NPM	12.5%	12.9%	-0.4pt
EBITDA	1,344	1,255	7.1%
EBITDA margin	22.2%	22.2%	0.0pt

FY6/24	YoY Variance
Q3 Total	Yr earlier	% chg
17,806	16,188	10.0%
9,976	8,855	12.7%
7,829	7,332	6.8%
44.0%	45.3%	-1.3pt
4,753	4,412	7.8%
3,075	2,921	5.3%
17.3%	18.0%	-0.8pt
1,974	1,871	5.5%
11.1%	11.6%	-0.5pt
3,470	3,245	7.0%
19.5%	20.0%	-0.6pt

©AVANT GROUP CORPORATION. All Rights Reserved.

8

Progress to Full-Year Sales Targets

• FY24 3Q cumulative sales are progressing at 74.2% of full-year sales, on par with the past 4 years

Nat Sales

100.0%

¥15.6b	＋3.5%	¥16.2b	＋15.2%	¥18.7b	＋14.6%	¥21.4b	＋12.0% ¥24.0b

※Plan

80.0%
										¥17.8b
						¥11.7b			¥13.7b	¥16.1b			Q3 Cum.
							¥11.9b
60.0%		25.8%			26.3%	26.9%	26.4%	25.3%
												Q2
40.0%
	25.6%			24.9%	25.1%	25.7%	25.4%
20.0%													Q1
	23.7%			22.2%	21.6%	23.5%	23.5%
0.0%
	2020年6月期				2021年6月期	2022年6月期	2023年6月期	2024年6月期
		Q1			Q2		Q3		Q4

©AVANT GROUP CORPORATION. All Rights Reserved.

9

FY6/24 Q3 Operating Income Bridge (YoY)

FY6/23 Q3 Operating Income

Higher GP from

sales growth

Personnel and

recruiting expenses

Outsourcing expenses

IT expenses

2,920

+1,636

▲921

▲18

▲263

Personnel and recruiting expenses

Aggressive recruiting activities for sustainable growth are underway, and personnel and recruiting expenses increased at a level higher than the rate of revenue growth, but less than the amount of revenue growth.

Outsourcing expenses

Although subcontracting expenses in the consolidated financial disclosure, which were temporarily incurred as restructuring costs, decreased, subcontracting expenses increased in DX in order to meet strong demand.

IT expenses

IT expenses increased due to an increase in headcount and cloud computing (for customers

and internal environment).

Other Expenses

Office expenses decreased due to the office review. Despite a decrease in restructuring expenses, other expenses increased slightly due to expenses for the introduction of the RS

Trust and an increase in fees paid related to the Materiality Realization Office.

Other expenses

FY24 Q3 Cumulative

Operating Income before

Allowance for Investment

Expenses

Investment

cost

FY24 Q2 Results

Cumulative Operating

Income

+70

3,424

▲349

3,075

（ Millions of yen ）

Investment cost: 349 million yen

M3	(Business Management Solution) 210M
M1	(Consolidated financial disclosure) 55M
M2	(DX propulsion)	52M
AVANT GROUP CORPORATION	31M

Software development and procurement, and most occur in M3, which is undergoing a business model transformation.

The Materiality Realization (MI) Office, which

is responsible for the group-wide R&D function,

is located at Avant Group Corporation and thus

incurs investment cost.

Operating Income / YoY Growth

Before inclusion of

investment expenses

＋¥500m / 17.3％UP

After inclusion of

investment expenses

＋¥150m / 5.3％UP

©AVANT GROUP CORPORATION. All Rights Reserved.

10