New Medium-term Management Plan 2024

• Driven by growth in the “non-printing fields,” we achieved record-breaking consolidated revenue.
• Due to the impact of COVID-19 pandemic, the numerical targets for the second and third years were withdrawn, leading to the recording of impairment losses on a subsidiary and the implementation of DX investments and growth investments.

• The “non-printing fields” of system services, web services and English translation drove an increase in revenue.

• Adapting to positive and negative changes to enhance our growth potential was set as PRONEXUS’s top priority of management.

• Start of operations of the “electronic provision system”* of convocation notices from the shareholders’ meetings held in March 2023
• In the first fiscal year of the introduction of the electronic provision system, the fiscal year ended March 31, 2024, about 70% of all companies followed the conventional practice of printing out convocation notices of shareholders’ meetings (“full set delivery”). The decrease in the number of printed pages of the remaining 30% companies was covered by the new service “Electronic Notice of Convocation Service” that caters to the system changes, making the impact on consolidated revenue negligible.

Overview of the “electronic provision system”

The electronic provision system allows for the provision of informational materials for the shareholders’ meetings by publishing those materials on a website and sending a simple notice that explains how to access those materials (Access Notice).
The system began to be adopted from the shareholders’ meetings held on and after March 1, 2023.

• We aim to strengthen our systems and consulting functions by catering to the expanded scope of content, particularly “non-financial information disclosure.” Further expansion of the “non-printing fields” to support digitization of disclosure

Upon celebrating the 90th anniversary of our founding in 2020, we revised our management philosophy, which was limited to the disclosure and IR domains, and redefined our business domains as information communication and documentation services. This plan takes on the challenge of expanding these domains with our 100th anniversary as our target milestone. Up until now, we have worked to achieve business reform and growth aligned with the changes to our business environment, such as the digitization of shares certificates, and the introduction of electronic disclosure for securities reports. As a result of the aforementioned digitization of convocation notices and the shift to paperless systems in the investment trust field, our core business operations underwent significant change. With these changes, we aim to achieve further growth by accurately meeting customer needs arising from these changes and turning them to opportunities to offer new services. On the other hand, a certain decrease in printing sales is inevitable, so we will aim to secure profits by adjusting to the changing business environment through further expanding and enhancing profitability of the “non-printing fields” such as web services, English translation and BPO. We will also enhance our systems and consulting functions to meet the need for more comprehensive “non-financial information disclosure,” including sustainability information. Through this, we will embrace the challenge of taking on new business areas such as support for the documentation needs surrounding disclosure, aiming for medium- to long-term growth.

• Digitization of convocation notices
• Increasing demand for web services

• Develop services for digitization of convocation notices, and support listed companies in reducing operational burdens.
• Expand peripheral support such as for enhancing web disclosure associated with the digitization of convocation notices, in addition to support for fulfilling legal requirements.

• Shift to paperless prospectuses, etc.
• Growing need for operational streamlining in line with “work-style reform”
• Increasing demand for web services

• Expand the functions of the investment trust document preparation support system and develop new digital products
• Expand support, primarily web services, peripheral to disclosure for investment trust companies

• Enhanced disclosure of non-financial information
• Enhanced dialogue with investors
• Post-COVID
• Challenges in improving profitability

• Strengthen consulting services to support sustainability disclosure
• Enhance the “non-printing fields,” including web services, English translation, support for virtual shareholders’ meetings, and BPO to improve profitability.

• Enhanced disclosure of non-financial information
• Growing need for operational streamlining in line with “work-style reform”
• Post-COVID

• Improve functions for the disclosure document preparation support system for listed companies and increase orders received for optional services.
• Offer practical information online and steadily offer business administrative functions.
• Expand support to reporting fields peripheral to disclosure.

• Increased order volumes
• Challenges in improving profitability
• PRONEXUS’s own “work-style reforms”

• Secure and nurture professional talent in new fields
• Utilize external resources including M&As and capital and business alliances
• Expand existing fields and seek out new business fields

• ROE 6.8%
• Dividend payout ratio 56.8%

• Increase capital efficiency through improving profitability and continuing high-level shareholder returns.
• Provide stable dividends based on a standard of a dividend payout ratio of 50% or higher.

• We have set the performance targets for the fiscal year ending March 31, 2024 and the fiscal year ending March 31, 2025 by calculating the impact of system changes, etc. on business performance based on certain hypotheses.
• We aim to minimize the impact of negative factors, and secure revenue and profit levels by making Cine Holdings and other companies into consolidated subsidiaries and moving forward with and expanding the key strategies raised in the new MTP, including systems, English translation, and non-financial information-related consulting services.

May 11, 2023 release: Announcement of Performance Targets for New Medium-term Management Plan 2024 (in Japanese only) [View PDF]

March 10, 2023 release: Notice Concerning Acquisition of Shares of Cine Holdings Co., Ltd. (for Conversion into a subsidiary) (in Japanese only) [View PDF]