PRONEXUS : Earnings Report FY2022 Consolidated

Translation

May 11, 2023

	Consolidated Financial Results
	for the Fiscal Year Ended March, 31 2023
Company name:	PRONEXUS INC.
Listing:	Tokyo Stock Exchange
Stock code:	7893
URL	https://www.pronexus.co.jp
Representative:	Takeshi Ueno, President and Representative Director
Inquiries:	Jun Takamatsu, Executive Officer, General Manager, President's Office
TEL	[phone] (from overseas)
Scheduled date of ordinary general meeting of shareholders:	June 28, 2023
Scheduled date to commence dividend payments:	June 13, 2023
Scheduled date to file Securities Report:	June 29, 2023
Preparation of supplementary material on earnings:	Yes
Holding of earnings performance review:	Yes (for analysts)

(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results					(Percentages indicate year-on-year changes.)
	Revenue		Operating profit	Profit before tax	Profit
Fiscal year ended	Millions of yen		%	Millions of yen	%		Millions of yen	%	Millions of yen	%
March 31, 2023	26,804		2.5	2,212	(10.9)		2,391	(8.9)	1,625	(8.1)
March 31, 2022	26,142		4.6	2,483	16.6		2,624	4.8	1,769	4.3
	Profit attributable to	Total comprehensive		Basic earnings per	Diluted earnings per
	owners of parent	income			share		share
Fiscal year ended	Millions of yen		%	Millions of yen	%			Yen		Yen
March 31, 2023	1,618		(8.2)	1,932	(5.8)			63.43		-
March 31, 2022	1,763		4.2	2,051	(3.2)			68.18		-
	Return on equity	Ratio of profit before	Ratio of operating
	attributable to owners
	tax to total assets	profit to revenue
	of parent
Fiscal year ended			%		%			%
March 31, 2023			6.8		6.6			8.3
March 31, 2022			7.5		7.3			9.5
Reference: Share of profit	(loss) of investments	accounted for using equity	method
Fiscal year ended March 31, 2023:	96 million yen
Fiscal year ended March 31, 2022:	79 million yen

(2) Consolidated financial position

			Equity	Ratio of equity	Equity
			attributable to	attributable to
	Total assets	Total equity	attributable to
	owners of parent	owners of parent
			owners of parent
			to total assets	per share
As of	Millions of yen	Millions of yen	Millions of yen	%	Yen
March 31, 2023	36,918	24,436	24,395	66.1	956.34
March 31, 2022	35,560	23,453	23,421	65.9	918.12

(3) Consolidated cash flows

	Cash flows from	Cash flows from
	operating activities	investing activities
Fiscal year ended	Millions of yen	Millions of yen
March 31, 2023	3,600	(6,478)
March 31, 2022	3,843	(1,609)

Cash flows from

financing activities

Millions of yen

(1,762)

(2,894)

Period-end cash and

cash equivalents

Millions of yen

7,574

12,208

2. Cash dividends

			Annual dividends
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March	-	16.00	-	19.00	35.00
31, 2022
Fiscal year ended March	-	18.00	-	18.00	36.00
31, 2023
Fiscal year ending	-	18.00	-	18.00	36.00
March 31, 2024
(Forecast)
	Total cash	Dividend payout	Ratio of dividends
	to equity
	dividends	ratio	attributable to
	(Total)	(Consolidated)	owners of parent
			(Consolidated)
	Millions of yen	%	%
Fiscal year ended March	893	51.3	3.9
31, 2022
Fiscal year ended March	918	56.8	3.8
31, 2023
Fiscal year ending		55.7
March 31, 2024
(Forecast)

3. Consolidated earnings forecasts for the fiscal year 2024 (from April 1, 2023 to March 31, 2024)

							(Percentages indicate year-on-year changes.)
	Revenue	Operating profit	Profit before tax	Profit		Profit attributable	Basic
		to owners of	earnings
										parent		per share
	Millions of	%	Millions of	%	Millions of	%	Millions of		%	Millions of		%	Yen
	yen	yen	yen	yen		yen
First six months
ending	17,400	8.6	2,630	(2.5)	2,630	(4.6)	1,820		(2.5)	1,820		(2.3)	71.35
September 30,
2023
Fiscal year ending	30,000	11.9	2,400	8.5	2,400	0.4	1,650		1.6	1,650		2.0	64.68
March 31, 2024

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2023		27,716,688 shares
	As of March 31, 2022		27,716,688 shares
b. Number of treasury shares at the end of the period
	As of March 31, 2023		2,207,521 shares
	As of March 31, 2022		2,207,421 shares
c. Average number of shares during the period
	For the fiscal year ended March 31, 2023		25,509,198 shares
	For the fiscal year ended March 31, 2022		25,855,870 shares

[Reference] Overview of non-consolidated performance

1. Non-consolidated performance for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Non-consolidated operating results				(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2023	25,155		2.9	1,752	(7.4)	2,290	(11.8)	1,606	(16.8)
March 31, 2022	24,450		2.8	1,893	(10.3)	2,595	11.0	1,931	41.1

	Basic earnings per	Diluted earnings per
	share	share
Fiscal year ended	Yen	Yen
March 31, 2023	62.97	-
March 31, 2022	74.67	-

(2) Non-consolidated financial position

	Total assets	Net assets		Equity ratio
As of		Millions of yen	Millions of yen		%
March 31, 2023		28,393	22,199		78.2
March 31, 2022		27,454	21,368		77.8
Reference: Equity
As of March 31, 2023:		22,199 million yen
As of March 31, 2022:		21,368 million yen

Net assets per share

Yen

870.25

837.67

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters (Caution regarding forward-lookingstatements and others)
  The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to PRONEXUS INC. (hereinafter the "Company") and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors. Please refer to the section of "(4) Future outlook" of "1. Review of operating results and others" on page 5 of [Attached Material] for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.
  (Means of access to contents of supplementary material on earnings and earnings performance review)
  The Company holds presentations for analysts regarding the first six-months and year-end results. Distributed presentation materials as well as video recordings of the performance reviews will be available on the Company's website. Furthermore, depending on the future state of COVID-19, we may not hold the briefings in person, and instead only upload briefing videos on earnings.

[Attached Material]
	Index
1. Review of operating results and others	2
(1)	Review of operating results for the fiscal year under review	2
(2)	Review of financial position for the fiscal year under review	4
(3)	Review of cash flows for the fiscal year under review	4
(4)	Future outlook	5
(5)	Basic policy on profit distribution and dividends for fiscal 2022 and fiscal 2023	6
2. Basic concept regarding selection of accounting standards	7
3. Consolidated financial statements and significant notes thereto	8
(1)	Consolidated statement of financial position	8
(2)	Consolidated statement of profit or loss and consolidated statement of comprehensive income	10
	(Consolidated statement of profit or loss)	10
	(Consolidated statement of comprehensive income)	11
(3)	Consolidated statement of changes in equity	12
(4)	Consolidated statement of cash flows	14
(5)	Notes to consolidated financial statements	15
	(Notes on premise of going concern)	15
	(Segment information)	15
	(Per share information)	15
	(Significant subsequent events)	15

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