Weathernews : Supplementary material on financial results for Q2 FY2023(English)

Financial Results for H1 2024.5

(ended November 30, 2023)

Weathernews Inc

December 28, 2023

1. H1 2024.5 Results
2. 2024.5 Full-year Forecast
3. Initiative status for 2024.5

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１．H1 2024.5 Results

Summary of financial results

【Net sales】 11,150 MJPY（+6.3％ Y/Y）

Mobile, Land and Sea businesses drived sales growth.

【Operating profit】 1,263 MJPY (△0.7％ Y/Y）

Despite temporary costs (outsourcing costs, etc.), operating profit remained flat.

(Millions of Yen)	2023.5	2024.5	Y/Y
H1 Actual	H1 Actual
Net sales	10,486	11,150	+6.3%
Operating profit	1,271	1,263	△0.7%
Margin(%)	12.1	11.3	△0.8Pt
Ordinary profit	1,310	1,284	△2.0%
Profit attributable to owners	921	1,018	+10.4%
of parent
EPS (JPY)	83.7	92.2	+8.5JPY
FOREX Rates (JPY/USD)	139.8	145.8	+6.0JPY

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１．H1 2024.5 Results

Operating Profit Analysis (Y/Y)

• Personnel expenses increased due to human resource strengthening for overseas business and IT development (including SaaS product development)
• Communication expenses increased due to expansion of cloud-based service development environment
• As a result of strategic advertising investments that identified the growing need for weather information, sales promotion expenses decreased compared to the previous FY.

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１．H1 2024.5 Results

Sales by Segment

Millions	2023.５	2024.５	Y/Y	Business environment and results
of Yen	H1 Actual	H1 Actual	(%)
				Cargo movements remained weak due to sluggish demand in the bulk carrier market despite
Sea	2,810	2,863	1.9	recovering in vessel supply, including the completion of new container ships. Although the
number of services provided in Europe decreased, the sales increased due to expansion of
				OSR-e and the impact of exchange rates.
				Airline market conditions continue to recover on both domestic and international due to the
Sky	645	617	△4.4 end of border measures. Although our sales in airline markets also recovered, total sales
				decreased due to the temporary impact that occurred in Q1 of last FY.
				The need for extreme weather information increases from the perspective of ensuring
Land	1,499	1,625	8.4 safety in logistics. Especially in expressway market, the revenue increased by providing
				services that takes regional weather characteristics into account.
				The need of weather information in energy market is increasing both in Japan and Global.
Environment	474	582	22.9	Sales in Japan increased by expanding forecasting service regarding renewable energy and
				electricity demand.
Other BtoB	17	58	227.5	In Climate tech business, expand sales of climate change risk analysis service "Climate
Impact" mainly to Japan companies.
Mobile・Inter				The number of app users has increased due to the investment in TV commercials and web
3,951	4,301	8.9 advertising. As growing interest in weather, we increased sales by improving app user
net				satisfaction and usage by enriching its content.
				While our major customers such as broadcasting stations continue to review their costs
Broadcast	1,086	1,101	1.4	based on structural changes in their business environment, the need of information about
extreme weather is increasing. Our sales increased due to system updates for broadcasting
				stations.

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１．H1 2024.5 Results

Sea business

・Cargo movements remain weak due to recovery in vessel supply and sluggish demand.

・Despite a partial decrease in the number of services provided to European customers in this Q2, sales increased due to expansion of OSR-e which supports eco friendly voyage and the impact of FOREX rates.

Q2

Q2

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１．H1 2024.5 Results

Sea business

Q2Q2

Number of vessels using our services

(counts as one vessel even when using multiple services)

TAM of Sea planning business and

Our occupancy rate (as of 2023.5 Q2)

28%

3%

3%

The number of vessels by TAM shown in Mid-term management plan

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１．H1 2024.5 Results

Mobile/ Internet business

• Subscription sales and advertising revenue increased due to raised awareness and high forecast accuracy through advertising investment.
• Cumulative DAU increased compared to previous FY due to content enhancement and UI improvements.

Q2	Q2	Q2	Q2	8

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2．2024.5 Full-year Forecast

Summary of Financial plan

【Net sales】22,500 MJPY（＋6.6％ Y/Y）

• Plans to increase sales by continuous growth of Mobile business and expanding existing BtoB businesses.

【Operating profit】3,500 MJPY（＋7.5％ Y/Y）

• Continue to invest in advertising, overseas expansion, and data/cloud.

(Millions of Yen)	2023.5 Actual	2024.5 Forecast	Y/Y
Net sales	21,114	22,500	+6.6%
Operating profit	3,256	3,500	+7.5%
Margin (%)	15.4	15.6	+0.2Pt
Ordinary profit	3,284	3,500	+6.6%
Profit attributable to	2,398	2,500	+4.3%
owners of parent
EPS (JPY)	217.7	226.5	+8.8JPY
ROE (%)	13.7	13.2	△0.5Pt
FOREX Rates (JPY/USD)	135.5	130.0	△5.5JPY	9

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2．2024.5 Full-year Forecast

Dividend Guidance

• Based on the concept of high contribution, high profit, and high distribution; we prioritize strategic business investments that promote mid-long business, and set a dividend on equity ratio of around 3% as a standard for long-term stable dividends.
• Dividends are determined by comprehensively considering the optimal level of equity capital,

the investment environment, profits, etc.

- We plan to pay an annual dividend per share of 120 yen for 2024.5.

+10JPY

110JPY

100JPY 100JPY 100JPY

120JPY

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