WingArc1st (4432) Investor Day 2024 presentation summary

Medium-term policy progress

• Revenue and EBITDA exceeded the initial plan, supported by favorable market conditions; FY2025 is forecast and FY2026 onward is based on the plan.

• Disciplined growth investments supported sales growth and improved profit margins.

• EBITDA margin is targeted to reach 37.5% in FY2027, the final year of the medium-term policy.

Financial indicators and market valuation

• ROE and PBR have improved, with continued profit-margin gains, strategic capital allocation and active investor dialogue identified as drivers.

• PER was 20.0x in FY2024 and 19.2x as of the latest date shown for FY2025.

• FY2024 investor engagement included 209 meetings, covering a total of around 400 companies.

Cash flow and capital allocation

• Cash flow is trending upward on strong business performance and recurring revenue accumulation, with further growth expected from margin improvement.

• Capital allocation for FY2024–FY2025 is progressing against the plan announced in October 2023.

• The medium-term plan targets cumulative sales cash flow above ¥30 billion over FY2024–FY2027.

• Planned uses include M&A and investments, capital investments, loan repayment, treasury stock acquisition and dividends.