Prestige International : Medium Term Business Plan ｜Connecting Growth Origin_Next50

Connecting Growth

Origin/Next 50

Medium-Term Business Plan

FY2025.3 ▶ FY2027.3 (April 1, 2024 ▶ March 31, 2027)

May 21, 2024

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.

01. The 7th Mid-Term Business Plan	02. The 8th Mid-Term Business Plan
◼	Performance Review	◼ Positioning Plan and Busines Environment
◼	Impact of the COVID-19	◼	Management Targets
	Pandemic	◼	Main Strategies

• Shareholder Returns

03. Business Strategy

04. Financial Strategy

◼	Strategy by Segment	◼	Cash Position
◼	IT and DX Initiatives	◼	Capital Allocation
		◼	Shareholder Return Policy

05. Sustainability

• Succession Plan
• SDGs
• External Evaluation and Environmental Initiatives

Connecting Growth

Origin/Next 50

© 2024 PRESTIGE International Inc. All Rights Reserved. 2

01.

The 7th Mid-Term Business Plan

FY2022.3 ▶ FY2024.3

© 2024 PRESTIGE International Inc. All Rights Reserved. 3

Previous Mid-Term Business Plan (FY2022.3 - FY2024.3) ｜Review

unit: billion yen

Steady growth
in the pandemic	58.7

Sales

Operating profit

+13.1% +14.8%

40.6

5.2

2.9

7.9

5.7

(CAGR)(CAGR)

◼ The Global Business struggled and stagnated due

to the COVID-19 pandemic.

◼ Domestically, the Automotive Business performed

solidly, and consignment business from local

municipalities for vaccine-related operations

complemented the Global Business.

FY2021.3

FY2024.3

Sales Operating profit Profit attributable to owners of parent

◼ Costs increased due to higher wages and

accelerated price increases.

© 2024 PRESTIGE International Inc. All Rights Reserved. 4

Previous Mid-Term Business Plan (FY2022.3 - FY2024.3) ｜Impact of the COVID-19 Pandemic

Automotive		731	2,466
		(14.7%)
			(49.7%)
Property	293
Global	(5.9%)	FY2020.3
	938	(Before COVID-19
	pandemic)
Customer	(18.9%)
Other		531
		(10.7%)

* Transition of operating profit (unit: million yen)

	869	2,909	1,990
	(16.6%)	3,680
		(55.6%)	(24.3%)
		(44.9%)
(13.6%)	FY2021.3		FY2024.3
713
	(During COVID-19		(After COVID-19
235	pandemic)		970	pandemic)
		(11.8%)
(4.5%)
	507		770
(9.7%)
	(9.4%)	790
				(9.6%)

Declining international travel has had a significant impact on the Global Business.

The Global business is covered by consignment business for vaccine-related operations from local municipalities.

Our strength in business diversification

has been successful in avoiding a negative impact on our business performance.

© 2024 PRESTIGE International Inc. All Rights Reserved. 5

Previous Mid-Term Business Plan (FY2022.3 - FY2024.3) ｜Review

	FY2021.3
	Actual
Sales	40.6 bn yen

Operating	5.2 bn yen
profit

Final year of the previous mid-term business plan

(FY2024.3)

Target	Actual	vs. FY2021.3
(CAGR)
60.0 bn yen	58.7 bn yen	13.1 ％
8.0 bn yen	7.9 bn yen	14.8 ％

• Taking into account a change in the accounting method used for contracts with some customers in the Automotive Business, sales were generally in line with the plan.

Point

Investment

Amount

• BPO construction, etc.

5 billion yen

• Vehicles, portable battery chargers for EV 0.9 billion yen

• System/IT investment, etc.

1.2 billion yen

© 2024 PRESTIGE International Inc. All Rights Reserved. 6

Previous Mid-Term Business Plan (FY2022.3 - FY2024.3) ｜Shareholder Returns

unit for dividend: million yen		28.1%	30.2%		26.4%	26.5%
			26.1%		25.0%
		Intertim
						11.00	12.00
		Year-end
		6.50	7.00	7.00	8.50	6.00
		Dividend payout	4.50	6.00
		3.50	3.50	3.50
		ratio
			5.00	6.00
			3.00	3.50	3.50	4.00
			FY2019.3	FY2020.3	FY2021.3	FY2022.3	FY2023.3	FY2024.3
Dividends per share	6.50 yen	7.00 yen	7.00 yen	8.50 yen	11.00 yen	12.00 yen
Dividend payout ratio	26.1%	28.1%	30.2%	25.0%	26.4%	26.5%
ROE	12.7%	11.7%	10.0%	13.4%	14.5%	13.9%
Repurchase of own shares	－	－	－	417 million yen	－	499 million yen
Total return ratio	－	－	－	34.6%	－	35.1%

• Long-term,stable dividend increases in line with profit growth.
• ROE also improved compared to FY2021.3.
• Total amount of treasury stock repurchased: 1 billion yen

© 2024 PRESTIGE International Inc. All Rights Reserved. 7

02.

The 8th Mid-Term Business Plan

FY2025.3 ▶ FY2027.3

© 2024 PRESTIGE International Inc. All Rights Reserved. 8

Positioning of the New Mid-Term Business Plan (FY2025.3 - FY2027.3)

Launched a three-yearmedium-term business plan, "Origin/Next 50", covering the fiscal year ending March 31, 2025 (the first year) through the fiscal year ending March 31, 2027, which marks the 40th anniversary of the Company's founding.

50th

anniversary

40th

anniversary

~2024.3~2027.3

~2030's

• Origin/Next 50 is the first half of the next 50-year company beyond the 40th anniversary of the company's founding.
• Looking at the new mid-term business plan as a "Nexus Point = Bridge between the Past and the Future", we will look at the changes over the next 10 years, including our "Starting Point", "Strengths" and "Vision for the Future".
• Continue to develop niche and unique businesses in the spirit of the Group.

© 2024 PRESTIGE International Inc. All Rights Reserved. 9

Business Environment Outlook

• A once-in-a-century period of industry	• Rising real estate prices and polarization
transformation	• Delay in IT/DX in an industry
• Widespread adoption of connected cars and	• Lack of condominium management staff
automated driving
• Changes in vehicle usage, such as CASE
and MAAS

Automotive industry	Labor shortages, rising wages,	Real estate industry
	higher prices, advances in IT,

Warranty-related industry	environmental		initiatives	Call center industry
• Due to an aging population and the shift to		• Increased demand due to labor
nuclear families, rent guarantees are			shortages across all industries
increasingly in demand.			•	Recruitment difficulties, rising labor
• Continued expansion of product warranties,			costs
extended warranties, etc. due to growing		•	AI Diffusion
interest in SDGs and awareness of using
products for a long time.

© 2024 PRESTIGE International Inc. All Rights Reserved. 10