Major KPIs of"BE GLOBAL 2023"

In our mid-term management plan "BE GLOBAL 2023," in order to transform our business model, in addition to indicators such as net sales, operating income, ROE, and dividends, we have established our own indicators such as recurrent sales ratio and sales growth rate + operating income ratio.

 

<Net Sales>
We target sales of 18-22 billion yen in the fiscal year ending June 30, 2023. This is based on the assumption that sales growth is achieved at an average growth rate of around 10% from the previous fiscal year's sales.

 

<Stock sales ratio>
Recurrent sales refer to sales that occur continuously every fiscal year, such as software maintenance fees, and we have set a goal of increasing the “recurrent sales ratio," which is the ratio of recurrent sales to net sales, to 70%.

 

<Operating income>
The average growth rate of 18% targeted in the medium- to long-term management strategy is also targeted in the medium-term management plan.

 

<Sales growth rate and operating margin combined (GPP)>
GPP is an indicator established to expand sales with profit growth in order to expand corporate value, rather than pursuing expansion of scale at the expense of profit. Since global SaaS companies have a combined ratio of 40% or more, the AVANT Group has set a goal of achieving a combined ratio of 40% or more in order to be as healthy as such companies.

 

＜ROE＞
In order to realize our medium-term management plan, we recognize that it is necessary not only to grow our three existing businesses but also to engage in investment activities, such as internal investment and external growth. As a guidepost for investment activities, we have set a medium- to long-term target of maintaining ROE of 20% or more.

 

<Dividends>
The Company regards dividends as an important part of its shareholder return policy and focuses on indicators such as the ratio of dividends to net assets, aiming to maintain and improve the amount of dividends in a stable manner without being greatly influenced by the business performance of each fiscal year. The Company aims to achieve operating results and financial condition sufficient to pay a dividend of 15 yen per share for the fiscal year ending June 30, 2023.

The information in this document concerning forecasts of business performance and other future projections and strategies is based on judgments made by the Company based on information reasonably available at the time this document was prepared and within the scope of what could be expected under normal circumstances. However, actual results may differ from these forecasts due to the occurrence of extraordinary circumstances or unforeseeable results that are not usually foreseeable. While we strive to proactively disclose information that we believe is important to investors, please refrain from making judgments based solely on the financial forecasts contained in this document. Please do not reproduce or transmit this material for any purpose without permission.