Prestige International : May 10 Consolidated Results Fiscal Year 2024 with script

Financial Results

For The Fiscal Year Ended March 2024

April 1, 2023 ▶ March 31, 2024

May, 10 2024

Securities Code 4290

⃰ 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.

1

Executive Summary

Medium- Term Business Plan

Three Consecutive Years

of Sales Growth

• Achieved steady growth in existing consignment businesses during the three-year period of the medium-term business plan, which was affected by the pandemic.

	Increased	 Despite the impact of lower profitability due to the
	All Types of Profit	completion of vaccine-related operations, all types of
	Year-on-Year	profit increased year-on-year.
	Formulation of New	 Theme: Connecting Growth - Origin/Next 50
	Medium-Term Business Plan
© 2024 PRESTIGE International Inc. All Rights Reserved.	2

2

▍Financial Results Summary for FY2024.3

▍Financial Results Summary for FY2024.3 by Segment ▍Financial Forecast for FY2025.3

▍KPI: Shareholder Returns ▍Appendix ▍Sustainability

© 2024 PRESTIGE International Inc. All Rights Reserved.

3

3

▍Financial Results Summary for FY2024.3

© 2024 PRESTIGE International Inc. All Rights Reserved.

4

4

Summary of Consolidated Results for FY2024.3

(million yen)

Amounts are rounded down to the nearest whole unit.

FY2023.3	FY2024.3	YoY	Full-Year	Achievement
(%)	Forecast	Ratio

Sales	54,562	58,738	+4,175	56,500	104.0%
(+7.7%)
Operating profit	7,840	7,921	+80	8,200	96.6%
(+1.0%)
Ordinary profit	8,378	8,458	+79	8,700	97.2%
(+1.0%)
Profit attributable to	5,318	5,791	+472	5,200	111.4%
owners of parent	(+8.9%)

• Although affected by vaccine-related operations, growth in existing businesses in major segments offset the decline of revenues.
• Operating profit fell short of the plan due to the impact of a temporary decline in profits from the completion of vaccine- related operations and the revision of the compensation system. However, the target for the final year of the original medium-term business plan was largely achieved.
• Profit attributable to owners of parent increased due to extraordinary gains from the sale of investment securities and the application of tax credits for a wage increase incentive system.

© 2024 PRESTIGE International Inc. All Rights Reserved.

5

This is a summary of consolidated financial results.

Regarding sales, in the Customer Business, the vaccine-related operations that we had been engaged in for the past three years were scaled down and completely terminated in H1, but the Financial Guarantee Business and the Global Business performed well, and the Automotive Business was also strong. As a result, net sales increased by about JPY4.1 billion.

Regarding operating profit, although the downsizing and termination of the vaccine- related operations, which had been highly profitable, occurred as a factor that reduced sales against operating profit, the target of JPY8.2 billion was slightly higher YoY due to a slight revision of salaries outside the plan, partly due to the recent situation. Consequently, the target of JPY8.2 billion was not reached.

Regarding ordinary profit, equity in earnings of affiliates was positive, and net income increased YoY due to an extraordinary gain from the sale of shares and a decrease in tax burden resulting from the taxation of higher wages.

5

Consolidated P&L Statement for FY2024.3

(million yen)

Amounts are rounded down to the nearest whole unit.

FY2023.3

FY2024.3

Change

YoY(%)

	Sales	54,562	58,738	+4,175	+7.7%
	Cost of sales	41,263	44,981	+3,717	+9.0%
	Gross profit	13,299	13,757	+458	+3.4%
	Gross profit margin	24.4％	23.4%	(-1.0pt)	―
	SG&A	5,458	5,835	+337	+6.9%
	Operating profit	7,840	7,921	+80	+1.0%
	Operating profit margin	14.4％	13.5%	(-0.9pt)	―
	Ordinary Profit	8,378	8,458	+79	+1.0%
	Ordinary profit margin	15.4％	14.4%	(-1.0pt)	―
	Profit attributable to	5,318	5,791	+472	+8.9%
	owners of parent
© 2024 PRESTIGE International Inc. All Rights Reserved.				6

Next, I will explain the income statement.

As for the cost of sales, personnel expenses mainly amounted to about JPY1 billion, and purchases due to roadside assistance vendor expenses amounted to about JPY1 billion. Rent payment fees from credit card transactions amounted to about JPY260 million. In addition, depreciation and amortization increased by JPY190 million YoY.

As for SG&A expenses, bad debts related to rent guarantees increased by approximately JPY130 million, and taxes and dues increased by approximately JPY38 million due to increased tax-exempt sales related to guarantees, resulting in an overall increase.

6

Consolidated Balance Sheet As of End of March, 2024

(million yen)

Amounts are rounded down to the nearest whole unit.

		End of March	End of March	Change	Change(%)
		2023	2024
	Current assets	35,892	40,740	+4,847	+13.5%
	Non-current assets	24,380	27,096	+2,715	+11.1%
	Total assets	60,273	67,836	+7,563	+12.5%
	Current liabilities	15,701	17,778	+2,077	+13.2%
	Non-current liabilities	2,753	2,832	+79	+2.9%
	Total liabilities	18,455	20,611	+2,156	+11.7%
	Shareholders' equity	36,781	40,603	+3,821	+10.4%
	Accumulated other	2,297	3,418	+1,120	+48.8%
	comprehensive income
	Non-controlling	2,738	3,203	+464	+17.0%
	interests, etc.
	Total net worth	41,817	47,224	+5,406	+12.9%
	Total liabilities and	60,273	67,836	+7,563	+12.5%
	equity
© 2024 PRESTIGE International Inc. All Rights Reserved.				7

Next, as for the balance sheet, current assets rose due to increased advances paid, accounts receivable, and bad debts.

In terms of fixed assets, there was an increase due to the construction of the BPO center in Ichinoseki, Iwate Prefecture, which will be opened in June.

Liabilities increased due to unearned income related to rent guarantees, insurance premiums from clients, and customer deposits, such as change for coin-operated parking lots.

7

Quarterly Sales

(million yen)
Q1	Q2	Q3	Q4
60,000
50,000
40,000
30,000					24,619	27,328
	23,385	24,225	22,223	6,936
20,000	6,281	6,133	6,010	6,570
					6,920
			5,716		6,462
	6,010	5,782
10,000	5,838	6,449	5,422	6,050	6,816
	5,254	5,926	5,007	5,536	6,654
0
	FY12.3	FY13.3	FY14.3	FY15.3	FY16.3

© 2024 PRESTIGE International Inc. All Rights Reserved.

58,738

						54,562
					46,744		14,993
					14,110
			42,377	40,617	12,483
		37,196
		10,672
	33,119		10,568			14,981
				14,272
29,477		9,816
	8,684		11,016		11,967
7,596			10,309
		9,478
						14,845
	8,488					13,568
7,674
				11,599
			10,687	10,266
		9,271
	8,079
7,238
			10,001	9,473	10,693	12,611	13,917
	7,866	8,630
6,967
FY17.3	FY18.3	FY19.3	FY20.3	FY21.3	FY22.3	FY23.3	FY24.3

Due to rounding down fractions, some values may not equal the sum of the separate figures.

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As for the quarterly results, the top line has steadily increased, although it has been slightly bumpy.

8

Quarterly Operating Profit

(million yen)
Q1	Q2	Q3	Q4 OPM(full-year)
10,000											14.6%	14.4%		15.0%
													13.5%
			12.6%		12.2%	12.8%	12.8%	12.6%		12.9%
			12.0%
							11.7%			7,840	7,921
8,000	11.2%										12.0%
		9.8%									6,842	1,799	2,066
6,000										5,233	1,918			9.0%
									4,959
								4,687			2,201
							4,230				1,997
									1,374
						3,768		1,179
4,000									1,860			6.0%
				3,345		1,491
					1,368
				2,952
			2,809		1,064			1,247
	2,621		966			1,362		1,953	1,967
	2,380
		762			1,193
		746		1,051
	891			926			1,579
2,000	720		737	858		1,128	1,314			3.0%
	782
						1,023
	619	468			877	877
	672	790	745				1,886	1,889
	605	651						1,484
				933	978	1,289	1,296
	540	609	661	775	899
0	504						0.0%
	FY12.3	FY13.3	FY14.3	FY15.3	FY16.3	FY17.3	FY18.3	FY19.3	FY20.3	FY21.3	FY22.3	FY23.3	FY24.3
						Due to rounding down fractions, some values may not equal the sum of the separate figures.
© 2024 PRESTIGE International Inc. All Rights Reserved.											9

Despite the increase in profit, the profit margin declined slightly due to the complete termination of the highly profitable vaccine-related operations in the previous quarter.

9

▍Financial Results Summary for FY2024.3 by Segment

© 2024 PRESTIGE International Inc. All Rights Reserved.

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