Avant Group Corporation · TSE:3836
Avant — Q1 FY6/2027 Earnings Presentation
32 slides from Avant's earnings presentation, Oct 30, 2026
Slide 1: Financial Results Briefing for Q1 FY June 2027
3836 TSE Prime AVANT GROUP CORPORATION Financial Results Briefing for the first quarter of Fiscal Year June 2027 October 30, 2026 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. ©AVAN
Slide 2: Index
INDEX Ⅰ. Summary of Financial Results for the first quarter of Fiscal Year June 2027 Ⅱ. Other Reference Data ＊ Amounts are rounded down below the display unit; percentages are rounded to one decimal place. The forecasts, plans, targets, strategies, and other forward-looking information contained in
Slide 3: Summary of Financial Results for Q1 FY June 2027
I. Summary of Financial Results for the first quarter of Fiscal Year June 2027 ©AVANT GROUP CORPORATION. All Rights Reserved. 3
Slide 4: Financial highlights for FY6/27 Q1 results
Financial highlights for FY6/27 Q1 results Net Sales Operating Profit Net Income ¥ 7,650 million ¥ 1,277 million ¥ 793 million YoY＋1.8％ YoY－4.8％ YoY －6.9％ Revenue increased, driven primarily by Profit decreased year on year, mainly Net income attributable to owners of sales growth in the Consolidate
Slide 5: Highlights of the FY6/27 Q1 results
Highlights of the FY6/27 Q1 results Net Sales ： Revenue increased to ¥7,650 million (up 1.8% year on year), driven by solid demand for IT investment and growth primarily in the Consolidated Financial Disclosure Business and the Management Solutions Business. Operating ： Operating profit decreased to
Slide 6: Financial Results by Business Segment
Financial Results by Business Segment Revenue and profit increased, driven primarily by sales growth in the Consolidated Financial Disclosure Business (DIVA) and the Management Solutions Business (AVANT). The DX Promotion Business (ZEAL) recorded a significant decline in profit and a deteriorati
Slide 7: FY6/27 Q1 Quarterly Operating Profit Variance Analysis
FY6/27 Q1 Quarterly Operating Profit Variance Analysis Revenue growth in the Consolidated Financial Disclosure Business and the Management Solutions Business supported operating profit. Outsourcing expenses continued to decline from FY6/26, but the impact of higher personnel expenses outweighed
Slide 8: Group Cost Structure
Group Cost Structure Office expenses associated with office expansion and investment expenses aimed at achieving future growth, primarily by strengthening the software business, continued to increase. Lower outsourcing expenses, reflecting progress in developing in-house employees, continued fro
Slide 9: Earnings Forecast for the Fiscal Year Ending June 30, 2027
Earnings Forecast for the Fiscal Year Ending June 30, 2027 (unchanged from the initial forecast) FY6/26 FY6/27 Variance % Chg (millions of yen) （Actual） （Forecast） Net Sales 30,481 32,800 +2,318 +7.6% Operating Profit 4,697 5,000 +302 +6.4% OPM 15.4% 15.2% (0.2pt) - Net Income 2,985 3,450 +464 +15.6
Slide 10: Other Reference Data
Ⅱ. Other Reference Data ©AVANT GROUP CORPORATION. All Rights Reserved. 10
Slide 11: Quarterly Margin Trends
Quarterly Margin Trends Despite the deterioration in profitability due to lower revenue in the DX Promotion Business, the operating profit margin remained broadly in line with historical levels, supported by lower outsourcing expenses and the reversal of a one-time provision for loss on orders in
Slide 12: ROE Trends
ROE Trends (millions of yen) 20% * Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied. ©AVANT GROUP CORPORATION. All Rights Reserved. 12
Slide 13: Financial Position Trends
Financial Position Trends Total Assets: ¥24,147 million Total Assets: ¥22,092 million (-¥2,055 million) FY6/26 Year-End FY6/27 Q1 (millions of yen) ©AVANT GROUP CORPORATION. All Rights Reserved. 13
Slide 14: Cash Flow Trends
Cash Flow Trends Operating CF Main Sources quarterly profit before income taxes of ¥1,294 million, an increase in deposits received of ¥233 million Main Uses a decrease of ¥836 million in the provision for bonuses, a decrease of ¥60 million in the provision for bonuses for directors (and other offic
Slide 15: Progress in Software Sales and Software Gross Profit
Progress in Software Sales and Software Gross Profit The gross profit margin of other proprietary products increased significantly year on year, continuing to benefit from the completion of amortization of AVANT Chart in Q3 FY6/26. Factors including a review of the development structure also con
Slide 16: Quarterly Recurring Sales and Recurring Sales Ratio
Quarterly Recurring Sales and Recurring Sales Ratio (millions of yen) Effective from the beginning of the first quarter of FY6/22, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have been applied. ©AVANT GROUP CORPORATION. All Rights Reserved. 16
Slide 17: Results by Business Segment (Orders)
Results by Business Segment (Orders) In the Consolidated Financial Disclosure Business, orders received decreased, while the order backlog increased and remained at a high level. In the DX Promotion Business, although recent business conditions have been somewhat weak, both orders received and t
Slide 18: Results by Business Segment (Orders)
Results by Business Segment (Orders) Consolidated Financial Disclosure DX Promotion Management Solutions Orders Order Backlog (millions of yen) ©AVANT GROUP CORPORATION. All Rights Reserved. 18
Slide 19: Number of Group Employees
Number of Group Employees Headcount continued to trend upward in support of sustainable growth, although the pace of increase has recently moderated. Headcount decreased slightly by 12 from the end of the previous quarter, as Q1 hiring was limited to mid-career hires, compared with Q4, when new
Slide 20: Capital Allocation Update
Reproduced from the FY6/26 Financial Results Presentation Capital Allocation Update Operating cash flow is expected to exceed the initial Medium-Term Management Plan assumption by approximately ¥1.9 billion, reaching a cumulative ¥21.2 billion over the plan period. While dividends were initially
Slide 21: Shareholder Returns
Reproduced from the FY6/26 Financial Results Presentation Shareholder Returns Maintain an average ROE of over 20% while paying dividends based on the DOE criteria (with a target of 8% for the fiscal year ending June 2028, the final year of the medium-term plan). The year-end dividend for the fis
Slide 22: Reference: Company Overview
Reference : Company Overview ©AVANT GROUP CORPORATION. All Rights Reserved. 22
Slide 23: Group Companies Supporting AVANT GROUP
Group Companies Supporting AVANT GROUP Net Sales Inception：May 26, 1997 ¥30.4b (FY6/26) Representative：Tetsuji Morikawa, Founder, Chairman & Group CEO Market cap：Approximately ¥43.1 billion （ TSE Prime, 3836, End of July 2026 ） Consolidated ・Providing DivaSystem LCA, covering the entire consolidated
Slide 24: AVANT GROUP Product Lineup
AVANT GROUP Product Lineup Consolidated Accounting System Financial Closing Support Services BPO Service No. 1 in Japan for 15 consecutive years Unique BPO service used by approx. 300 companies, provided by Japan’s No. 1 vendor Board of Directors DX System Treasury Management System TMS Enhancing co
Slide 25: Avant Group Philosophy
Avant Group Philosophy ©AVANT GROUP CORPORATION. All Rights Reserved. 25
Slide 26: Our Founding Principles: Three Orientations and Five Management Principles
Our Founding Principles: Three Orientations and Five Management Principles Three Orientations 1. Customer Orientation 2. Mastery Orientation 3. High-Profitability Orientation Five Management Principles Trust means honoring our commitments. In our relationships with customers, we believe trust is 1．T
Slide 27: AVANT GROUP advances to the next five years to achieve BE GLOBAL
AVANT GROUP advances to the next five years to achieve BE GLOBAL Mar. 2023～ FY Mar. 2000~ Apr. 2008～ Jun. 2015～ Request from TSE for ‘Action to Reporting in consolidated accounting Introduction of Internal Control Corporate Governance Code achieve cost of capital and share price Reporting System (J-
Slide 28: Long-Term Trends in Net Sales and Operating Profit
Long-Term Trends in Net Sales and Operating Profit (millions of yen) (millions of yen) FY6/26 Net Sales ¥ 30.4 billion 10-year CAGR 12.2% FY6/26 Operating Profit ¥ 4.6 billion 10-year CAGR 15.5% （Forecast） ©AVANT GROUP CORPORATION. All Rights Reserved. 28
Slide 29: Customer Base of Consolidated Accounting System DivaSystem LCA
Customer Base of Consolidated Accounting System “DivaSystem LCA” Sales to More Than 1,300 Companies*1 Our share in the FY2025 consolidated accounting software market was 55.6% for SaaS/PaaS and 44.7% for packaged software*2 Supporting the strengthening of corporate governance across financial
Slide 30: Numerical Summary
Numerical Summary ©AVANT GROUP CORPORATION. All Rights Reserved. 30
Slide 31: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements The forecasts, plans, targets, strategies, and other forward-looking information contained in this document are based on information available to the Company as of the date of preparation of this document and on certain assumptions that the
Slide 32: AVANT GROUP
AVANT GROUP SUSTAINABILITY IS VALUE