■ Performance Trends of Progrit <9560>

2. Financial condition and performance indicators.

As of the end of August 2024, the total assets increased by 1,258 million yen compared to the previous year-end, reaching 3,886 million yen. Current assets increased by 1,066 million yen, including an increase in cash and deposits, resulting in a 1,161 million yen increase to 3,293 million yen. Fixed assets increased by 96 million yen to 593 million yen due to increases in buildings and security deposits. Total liabilities increased by 554 million yen to 2,089 million yen. Current liabilities increased by 555 million yen to 1,990 million yen due to increases in accounts payable, accrued expenses, and contract liabilities. Fixed liabilities decreased by 1 million yen to 99 million yen due to a decrease in long-term borrowings. Net assets increased by 703 million yen to 1,796 million yen, with increases in capital stock, capital surplus, and net income of 610 million yen. As a result, the management indicators reflecting safety improved, with a current ratio of 165.5% (up 16.9 points), a debt ratio of 116.3% (down 24.2 points), and an equity ratio of 46.0% (up 4.5 points).

3. Cash flow situation - In the fiscal year ending March 2024, cash flow from operating activities amounted to a revenue of ¥1,285 million. The main revenue sources were ¥13,157 million for net income before tax adjustments, ¥1,919 million for depreciation expenses, and an increase of ¥7,671 million in accounts payable. The main expenses were an increase of ¥20,326 million in accounts receivable and contract assets. Cash flow from investing activities had a revenue of ¥3,174 million, mainly from a net revenue of ¥3,000 million from the redemption of securities. Cash flow from financing activities had an expenditure of ¥6,069 million, mainly from an income of ¥674 million from short- and long-term borrowings, an expenditure of ¥2,549 million for the acquisition of treasury stock, and ¥4,083 million for the payment of dividends. As a result, cash and cash equivalents increased by ¥1,449 million, and the balance at the end of the period was ¥23,500 million.

Cash and cash equivalents in August 2024 increased by 1,066 million yen compared to the previous year-end, reaching 3,041 million yen. Cash flow from operating activities amounted to an income of 1,078 million yen (compared to 796 million yen in the previous period). This was mainly due to pre-tax net income of 817 million yen, an increase in contract liabilities of 242 million yen, corporate tax payments of 229 million yen, an increase in accounts payable and accrued expenses of 174 million yen, and an increase in bonus reserve of 63 million yen.

Cash flow from investing activities resulted in an expenditure of 83 million yen (compared to an expenditure of 16 million yen in the previous period). This was mainly due to expenses related to security deposits of 27 million yen and acquisitions of tangible fixed assets amounting to 55 million yen.

Cash flow from financing activities amounted to an income of 71 million yen (compared to an income of 239 million yen in the previous period). This was primarily due to income from issuing new shares through the exercise of subscription rights amounting to 85 million yen, income from long-term borrowings of 60 million yen, and expenses from the repayment of long-term borrowings of 74 million yen. The high profitability indicates that funds earned from core operations are being adequately held as investment funds, including advertising investments. Additionally, the stabilization of financial content through capital enhancement from the exercise of subscription rights and repayment of borrowings illustrates progress. In the August 2024 period, cash flow from operating activities reached the milestone of 1 billion yen, demonstrating strengthened cash generation capabilities in core operations, an achievement that our company evaluates positively.

(Writer: FISCO analyst Tomoichi Murase)