Weathernews : Supplementary material on financial results for Q1 FY2023(English)

Financial Results for FY2023

(ended August 31, 2023)

Weathernews Inc

October 6, 2023

１．Q1 FY2023 Results

Summary of financial results

【Net sales】 5,580 MJPY（+6.8％ Y/Y）

Mobile, Sea and Land businesses drive sales growth.

【Operating profit】 415 MJPY (△12.1％ Y/Y）

Profit decreased due to increased upfront advertising investment and personnel expenses.

(Millions of Yen)	2023.5	2024.5	Y/Y
Q1 Actual	Q1 Actual
Net sales	5,225	5,580	+6.8%
Operating profit	472	415	△12.1%
Margin(%)	9.0	7.4	△1.6Pt
Ordinary profit	525	443	△15.7%
Profit attributable to	369	428	+16.1%
owners of parent
EPS (JPY)	33.5	38.9	+5.4JPY
FOREX Rates (JPY/USD)	133.6	142.5	+8.9JPY	2
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１．Q1 FY2023 Results

Operating Profit Analysis (Y/Y)

• Sales promotion expenses increased due to intensive advertising investment due to the occurrence of weather topics such as heavy rain and typhoons.
• Increased personnel expenses regarding overseas business promotion and IT development.
• Communication expenses increased due to cloud-based service development.
• Other expenses such as travel expenses and outsourcing expenses increased.

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１．Q1 FY2023 Results

Sales by Segment

Millions	2022.５ Q1	2023.５ Q1	Y/Y	Business environment and results
of Yen	Actual	Actual	(%)
				・While vessel supply has recovered by easing of demurrage, market conditions is still weak
Sea	1,378	1,411	2.4	due to a decline in cargo demand.
Planning				・Although the number of services provided in Europe decreased, but the sales increased
				due to the impact of exchange rates and expansion of OSR-e.
				・Numbers of airline passenger continue to recover on both domestic and international
Sky	334	301	△9.8	routes by the removal of movement restrictions.
Planning				・Although our sales in airline markets also recovered, total sales decreased due to the
				temporary impact that occurred in Q1 of last FY.
Land				The need for extreme weather information increases from the perspective of ensuring
734	802	9.3	safety in logistics. In expressway market, the revenue increased by providing services that
Planning
			takes regional weather characteristics into account.
Environment				The need of weather information for energy is increasing globally.
225	286	27.1	・Sales increased by expanding forecasting service regarding renewable energy and
Planning
			electricity demand.
Other BtoB	7	22	182.6	・In Climate tech business, expand sales of climate change risk analysis service "Climate
				Impact" mainly to domestic companies.
Mobile・Inter				・The number of app users has increased due to the investment in TV commercials and web
net	2,011	2,229	10.8	advertising. As growing interest in weather, we increased sales by improving user
Planning				satisfaction and usage through enriching app content.
Broadcast				・Although the need of information about extreme weather is increasing, customers
532	525	△1.3	continue to review their costs as business environment changes. We promoted efforts to
Planning
			improve the efficiency of service operations and build new services.
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１．Q1 FY2023 Results

Sea Planning business

・Although the number of services provided in Europe decreased, sales increased due to sales expansion of OSR-e and the impact of foreign exchange rates.

・The number of voyages offered increased due to the recovery of container market conditions and the impact of typhoons.

Number of Voyages provided （line）

Number of voyages provided for routing services (OSR, OSR-Lite,OSR-e)

Ship Services (Other than routing)

Redefined the conventional "ocean-going vessel (Others) as "Services for marine vessels . NAR sales is included here as this has different billing formats from routing services.

Routing Service

This mainly refers to sales of routing services where sales are generated for each voyage. The number of voyages has a correlation with market conditions.

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