Avant : Financial Results Briefing Q4 FY22/06

Financial Results Briefing

for the Fiscal Year ended June 30, 2022

Effective from the first quarter of the current fiscal year, the Company has changed the name of its reportable segments and applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. For details, please refer to the notes on page 2.

This is an unofficial translation. In case of any difference in meaning between the original Japanese text and the English translation, Japanese text shall prevail

AVANT CORPORATION

(Code：3836 Prime Market）

August 5, 2022

Contents

Ⅰ . Summary of financial results

for the fiscal year ended June 30, 2022 Ⅱ. Earnings and Dividend Forecast

＊Figures in this material 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.

© 2022 AVANT CORPORATION. ALL RIGHTS RESERVED.	1

I. Summary of financial results

for the fiscal year ended June 30, 2022

Note 1

Effective from the first quarter of the current fiscal year, the Company has changed the names of its reportable segments from "Consolidated Accounting Related Business" and "Business Intelligence Business" to "Group Governance Business" and "Digital Transformation Business" in order to properly present the nature of its business. This change in segment name has no impact on segment information.

Note 2

Effective from the beginning of the first quarter of the current fiscal year, the Company has adopted "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc., and the figures for the fiscal year ending June 30, 2022 are after the application of the said accounting standard. Please note that when comparing figures with those of the fiscal year ended June 30, 2021 or earlier, the impact of the change in accounting standards should be considered. The year-on-year changes in amounts (millions of yen) and rates of change (%) shown in this document are calculated based on the figures for the fiscal year ending June 30, 2022 before the application of the "Accounting Standard for Revenue Recognition.

© 2022 AVANT CORPORATION. ALL RIGHTS RESERVED.	2

Results Highlights

Seven consecutive fiscal years of sales and profit growth

• Demand continued to grow, and the Co achieved increases in both sales and profit despite a slight deterioration in profit margins due to higher personnel and other costs. Net income attributable to shareholders of the parent company increased only slightly due to the impact of an impairment loss on the investment in Metapraxis in the U.K.
• We expect double-digit sales growth in FY June 2023, but expect a decline in profit due to the upfront burden of scheme development for the next mid-term business plan.

	FY21/06		FY22/06
Net Sales	16,236		18,703
Cost of Revenue	8,572		9,782
SG&A expenses	4,867		5,674
Operating Income	2,796		3,247
OP Margin	17.2%		17.4%
Ordinary Income	2,808		2,988
Net Income	1,888		2,045
EBITDA	3,038		3,582

			(millions of yen)
FY22/06	Year-on-Year (Before accounting
(Before accounting		impact)
Variance		%CHG
impact)
18,804	+ 2,567		+ 15.8%
10,091	+ 1,519		+ 17.7%
5,674	+ 806		+ 16.6%
3,038	+ 242		+ 8.7%
16.2%	-		1.1 point
2,780	27		1.0%
1,897	+ 8		+ 0.4%
3,374	+ 335		+ 11.0%

© 2022 AVANT CORPORATION. ALL RIGHTS RESERVED.	3

Results by Business Segment

Profit increase due to DX and Outsourcing offsetting decrease in G-governance profit

• All companies continue to achieve high levels of growth in sales and profits. Operating income in the Group Governance business declined slightly due to increased hiring, performance-linked personnel expenses, and outsourcing costs, but in line with expectations.

FY21/06 FY22/06

	Net Sales	8,160		9,372
Group
Operating Income	1,935		2,060
Governance
	OP Margin	23.7%		22.0%
	Net Sales	6,250		7,015
Digital
Operating Income	811		1,244
Transformation
	OP Margin	13.0%		17.7%
	Net Sales	2,479		3,044
Outsourcing	Operating Income	523		661
	OP Margin	21.1%		21.7%

		(millions of yen)
FY22/06	Year-on-Year (Before accounting impact)
(Before accounting	Variance	%CHG
impact)
9,109	+ 949	+ 11.6%
1,915	19	1.0%
21.0%	-	2.7 point
7,370	+ 1,120	+ 17.9%
1,174	+ 363	+ 44.8%
15.9%	-	+ 3.0 point
3,052	+ 572	+ 23.1%
667	+ 143	+ 27.5%
21.9%	-	+ 0.8 point

© 2022 AVANT CORPORATION. ALL RIGHTS RESERVED.	4