[Delayed]Earnings Performance Review

Total Solution Company

Disclosure & IR

Providing total solutions leveraging IT expertise and practical

knowhow as a company specialized in supporting corporate

disclosure and IR

◆

For the Fiscal Year Ended March 31, 2016

[Delayed]Earnings Performance Review

President and Representative Director

Takeshi Ueno

Presentation Contents

New Medium-term Management Plan 2018

1. Results of Operations for the Year Ended March

31, 2016

2. Business Topics

3. Stock Price and Shareholder Return

4. Forecast for the Fiscal Year Ending

March 31, 2017

5. Corporate Profile

Part

１

1

Supplemental Data: Major Operating Performance Indicators, etc.

1. Results of Operations for the Year

Ended March 31, 2016

0 500 1,000 1,500 2012/3 2013/3 2014/3 2015/3 2016/3 0 5,000 10,000 15,000 20,000 25,000 2012/3 2013/3 2014/3 2015/3 2016/3 0 500 1,000 1,500 2,000 2,500 2012/3 2013/3 2014/3 2015/3 2016/3

Results for FYE March 2015 Results for FYE March 2016 Change YoY

Amount Share Amount Share Amount Share

Net sales 21,119 100.0 20,971 100.0 (147) (0.7)

Operating income 1,991 9.4 2,226 10.6 234 11.8

Ordinary income 2,036 9.6 2,255 10.8 219 10.8

Profit attributable to

owners of parent 1,358 6.4 1,680 8.0 321 23.7

(Unit：million yen)

(million yen) (million yen)

(million yen)

1-1 Financial Highlight (1)

■

Revenue decreased slightly and profits rose year-on-year

Down 0.7% Up 11.8% Up 23.7% Net sales Compared to forecast Forecast on 1/29/2016 Change 20,500 471 2,100 126 2,150 105 1,600 80

29.91 34.69 43.63 43.72 56.28 0.00 20.00 40.00 60.00 80.00 2012/3 2013/3 2014/3 2015/3 2016/3 9.5 10.1 10.6 9.4 10.6 0.0 5.0 10.0 15.0 2012/3 2013/3 2014/3 2015/3 2016/3 FYE March

2012 FYE March 2013 FYE March 2014 FYE March 2015 FYE March 2016 Target

Operating margin (%)

9.5

10.1

10.6

9.4

10.6

10.0

ＲＯＥ(%)

4.9

5.4

6.5

6.4

8.1

8.0

ＥＰＳ(Yen)

29.91

34.69

43.63

43.72

56.28

－

(Yen) (%) (%)

■

Targeted management benchmarks cleared

Up 1.2pt 5 Operating margin ＲＯＥ ＥＰＳ 4.9 5.4 6.5 6.4 8.1 0.0 2.0 4.0 6.0 8.0 10.0 2012/3 2013/3 2014/3 2015/3 2016/3 Up 1.7pt Up 12.56yen

1-1 Financial Highlight (2)



IR-related sales to listed companies decreased by around 20% (7% real increase)

due to consolidation change

Results for

FYE March 2015 FYE March 2016 Results for YoY change

Amount % Amount % Amount %

Listed companies disclosure-related

8,769

41.5

9,124

43.5

355

4.1

Listed companies

IR-related, etc.

* (after revision)

5,881

(4,374)

27.9

4,689

(4,689)

22.4

(1,191)

(315)

(20.3)

(7.2)

Financial

instruments

disclosure-related

6,005

28.4

6,655

31.7

649

10.8

Listed companies disclosure-related

462

2.2

502

2.4

39

8.5

Total * (after revision)

(19,612)

21,119

100.0

(20,971)

20,971

100.0

(1,359)

(147)

(0.7)

(6.9)

(Unit：million yen)

1-2

Sales by Product Area — Composition (YoY Comparison)

* Results after revision in which around 1,507 million yen of the a2media Group’s sales to outside

0 5,000 10,000 15,000 20,000 25,000 2012/3 2013/3 2014/3 2015/3 2016/3 7 (Unit：million yen)

46.7% 26.2% 25.5% 1.6% 48.2% 26.4% 24.2% 1.2% 42.8% 26.6% 28.2% 2.4%

■

Sales of financial instruments disclosure-related grew

21,119 41.5% 27.9% 28.4% 2.2% 19,882 18,031 17,785 20,971 43.5% 22.4% 31.7% 2.4%

1-3 Sales Composition by Product Area

■Listed companies disclosure-related

■Listed companies IR-related, etc. ■Financial instruments disclosure-related

Positive factors



Increase number of companies for use of

color in the convocation notice of

shareholders’ meetings



Increase in financing and IPOs

8,577 _8,420 8,506 8,769 9,124 0 5,000 10,000 2012/3 2013/3 2014/3 2015/3 2016/3



Colorization of convocation notices and increase in IPOs and financing contribute to slight

increase

(million yen)

Up 4.1%

Net sales Major factors

Order volume Market share Prices

Shareholders’ meeting-related

Convocation notices for

shareholders’ meetings/printing of resolution notices, etc.

Account settlement-related

Securities reports/earnings reports Systems related

IPO/finance-related Prospectuses and registration documents

Net sales +355 million yen

Positive factors



Exclusion of a2media Group’s external

sales



Increase in orders for English IR

(translation) services



Increase in orders for online services

such as IR websites



Increase in orders for visual services for

shareholders’ meetings

Negative factors 4,691 4,727 5,287 5,881 4,689 0 2,000 4,000 6,000 2012/3 2013/3 2014/3 2015/3 2016/3



Sales declined due to exclusion of a2media Group’s external sales.

(million yen)

Down 20.3%

Net sales Major factors

Order volume Market share Prices Business reports

Online IR services

English-language IR tools

Visuals and operational support for shareholders’ meetings

9 -1,191million yen

Net sales

Positive factors



Increase in orders Asset management

reports



Increase in orders for prospectuses and

sales materials



Increase in orders for online services

4,303 4,596 5,610 6,005 6,655 0 2,000 4,000 6,000 2012/3 2013/3 2014/3 2015/3 2016/3



Vigorous investment trust market boosted orders for various products and services

(million yen)

Net sales Major factors

Order volume Market share Prices

Domestic investment trust management company- related

J-REIT listed investment trust-related

Foreign investment trust management company-related Foreign company-related

Up 10.8%

+649million yen Net sales

Positive factors



High rate of contract renewals by existing

clients



Increase in new orders

213 287 478 ₄₆₂ 502 0 200 400 600 2012/3 2013/3 2014/3 2015/3 2016/3



Sales increased with high rate of contract renewals and new orders

(million yen)

Up 8.5%

11 +39million yen

Net sales

5,492 5,630 5,684 5,520 6,265 30.9 31.2 28.6 26.1 29.9 0 20 40 60 80 100 0 2,000 4,000 6,000 8,000 2012/3 2013/3 2014/3 2015/3 2016/3

(Unit：million yen)

10,608 10,574 12,090 13,606 12,480 59.6 58.6 60.8 64.4 _59.5 0 20 40 60 80 100 0 3,000 6,000 9,000 12,000 15,000 2012/3 2013/3 2014/3 2015/3 2016/3 (%) (%)

(Unit : million yen)

1-5 Profitability (1)



Increase in SG&A absorbed by decrease in cost of sales

Cost of sales / Cost-of-sales ratio SG&A expenses / SG&A expense ratio

■_{SG&A expenses SG&A expenses ratio}

■Cost of sales Cost-of-sales ratio

 Disappear of the initial cost burden to comply with the new EDINET

 a2media Group-related costs were largely decreased.

 Increase in in-house production associated with large printer operation

Cost-of-sales ratio: Down 4.9 percentage pts YoY

 Increase in personnel associated with enhancement of sales structure

1,060 1,166 1,417 1,358 1,680 6.0 6.5 7.1 _6.4 8.0 0.0 10.0 20.0 30.0 0 1,000 2,000 3,000 2012/3 2013/3 2014/3 2015/3 2016/3 13

(Unit：million yen)

1,685 1,826 2,107 1,991 2,226 9.5 10.1 10.6 9.4 10.6 0 10 20 30 0 1,000 2,000 3,000 2012/3 2013/3 2014/3 2015/3 2016/3 (%) (%)

■Profit attributable to owners of parent

Net income margin

(Unit：million yen)

1-5 Profitability (2)



Income and margin increased by reduction in costs and recording of extraordinary gain

Operating income / Operating margin Profit attributable to owners of parent/ Net income margin

■_{Operating income Operating margin}

 Reduction in cost of sale > increase in SG&A expenses

Operating margin: Up 1.2pt YoY

 Recorded extraordinary gain of 213 million yen



a2media Group-related costs was declined and increase in in-house

production brought the reduction of cost of sales substantially



The reduction of cost of sales was absorbed increasing costs associated

with structural enhancement due to increased orders.

1-6

FYE March 2016 Main positive and negative earnings factors

Structural

enhancement in consolidated companies

Increase in orders

Cost of sales decline +1,126million yen Sales decline -147million yen

－

SG&A expense decrease -744 million of yen

＋

Operating income increase +234 million of yen

＝

See previous

pages for details Deduction of sales of a2media

Group’s external sales ★Decrease on a2media Group-related costs Increase in in-house production

Disappear of initial costs for next-generation EDINET compliance Increase in personnel associated with structural enhancement

★Factors of increase or decrease

resulting from change in scope of consolidation for a2media Group.

FYE Mar 2015 operating

income 1,911 million yen FYE Mar 2016 _{operating income}

2,226 million yen

↑Negative ↓Negative

(Unit：million yen)

Year ended March 2015 Year ended March 2016 Difference over _{previous year} 1st half 2nd half Full year 1st half 2nd half Full year Full year

Net sales

12,168

8,950

21,119

12,315

8,655

20,971

-147

Cost of sales

7,367

6,239

13,606

6,876

5,603

12,480

-1,126

Cost of sales ratio

60.5%

69.7%

64.4%

55.8%

64.7%

59.5%

-4.9pt

Gross profit

4,801

2,711

7,512

5,438

3,052

8,491

978

Selling, general and

administrative expenses

2,744

2,775

5,520

3,128

3,136

6,265

744

Operating income (loss)

2,056

(64)

1,991

2,310

(83)

2,226

234

Operating margin

16.9%

(0.7%)

9.4%

18.8%

(1.0%)

10.6%

1.2pt

Non-operating income

62

51

113

67

35

103

-10

Non-operating expenses

79

(9)

69

24

49

74

4

Ordinary income

2,039

(3)

2,036

2,353

(97)

2,255

219

Extraordinary income

-

36

36

904

‐

904

867

Extraordinary losses

-

-

-

662

28

691

691

Quarterly profit attributable

to owners of parent

1,253

105

1,358

1,702

(22)

1,680

321

15

Year ended

March 2015 March 2016 Year ended change Main reasons for difference

Cash and deposits

6,851

7,114

262

Notes and accounts receivable—trade

2,182

1,938

-244

Other

4,874

6,099

1,225

Increase in securities: ¥1,201 million

Total current assets

13,908 15,152

1,243

Property, plant and equipment

6,019

4,133

-1,885

Increase in machinery, equipment and vehicles: ¥226 million _{Reduction in land: ¥1,958 million}

Intangible assets

2,650

2,450

-199

Investments and other assets

4,899

5,887

987

Increase in investment securities: ¥981 million

Total noncurrent assets

13,569 12,471

-1,097

Total assets

27,478 27,624

145

Total liabilities

6,544

6,772

227

Increase in income tax payable: ¥523 million, Decline in account payable-other: ¥394 million, Increase in long-term loans payable: ¥300 million, Decrease in deferred tax liabilities: ¥365 million

Capital stock / retained earnings

24,827 23,846

-980

Increase of net income: ¥1,680 million Decrease due to dividend of surplus: ¥628 million and cancellation of treasury shares: ¥2,032million

Treasury stock

(4,498) (3,466)

1,032

Cancelled approximately 2.88 million shares and acquired _{approximately 0.8 million shares in the fiscal year under review} Total shareholders’ equity

20,328 20,379

51

Total net assets

20,934 20,852

-81

Total liabilities and net assets

27,478 27,624

145

1-8

Financial Position – YoY Comparison with the FYE March 2016

3,417 2,761 1,969 3,038 2,707 -213 -164 -798 -1,061 64 -1,062 -1,970 -1,749 -2,895 -1370 -4,000 -2,000 2,000 4,000 6,000 2012/3期 2013/3期 2014/3期 2015/3期 2016/3期 連結キャッシュ・フロー _{Cash flow from operating activities}

Cash flow from investing activities Cash flow from financing activities

Year ended

March 2015 March 2016 Year ended Change Major factors Cash flow from operating activities

3,038

2,707

-330

Cash flow from investing activities

(1,061)

64

1,125

Proceeds from sales of property, plant and equipment: 2,244 million yen

Decrease in purchase of investment securities: 1,103 million yen

Cash flow from financing activities

(2,895)

(1,370)

1,525

Purchases of treasury stock: 999 million yen _{Cash dividend paid: 628 million yen} Net increase (decrease) in cash and

cash equivalents

(924)

1,408

2,332

Cash and cash equivalents at end

of period

10,642

11,854

1,212

(Unit：million yen)

17

(Unit：million yen)

1-9 Consolidated Statements of Cash Flows for the FYE March 2016

Consolidated cash flows

912 ₈₉₅ 862 1,020 1,022 1,020 0 500 1,000 1,500 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3

(Unit：million yen)

639 1,255 1,167 1,199 1,069 _1,050 0 500 1,000 1,500 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3

(Unit：million yen)

Capex: Down 130 million yen YoY Depreciation: Up 1 million yen YoY

Capex Depreciation



Investment for development of next-generation EDINET-compliant software leveled off and

will stay the same for now.



We will continue improving the function and enhancing the competitiveness of our support

systems as our core businesses.

Forecast

Forecast

*As of fiscal year under review, we switched the method of depreciation for property, plant and equipment from declining balance method to the straight-line method.

2. Business Topics

2011/4 2016/4 Corporate website development and updating

service

(including for investment trust management firms and J-REITs IR site automatic updating and

developing support service

2011/4 2016/4

2

Business Topics (1) Enhancement of web services and increasing orders

Establishing partnerships with specialized companies that have advanced expertise

Approx. 500

companies



Increasing orders through ‘planning and proposal abilities’ and ‘production and operation support

systems’ unique to a company specialized in disclosure and IR support

IR tools / online planning and production

Approx.

650

companies

Approx. 110 companies

Approx.

350

companies

2012/3 2013/3 2014/3 2015/3 2016/3

●Sales of website planning,

production, and operation services

Approx. ¥1.3 billion

Online planning and production

●Planning and production / operation support system

20

2

Business Topics (2) Increasing orders for English-financial services

2012/3 2013/3 2014/3 2015/3 2016/3

English-language disclosure materials produced (annually)

Wholly owned subsidiary specialized in financial translation providing high-quality service



Increasing orders through organizational enhancement of subsidiaries with expertise in

English-language financial disclosure, accounting, and IR

●Sales of English-language IR tools

Approx. ¥800 million

Translation of information disclosure documents and production of materials English-language tools

production support organization

Approx.

1,200

_{(About 280 companies}

Over

30

%

per year)

40

companies

Number of listed companies producing English-language convocation notices for general meetings of shareholders: About 800 per year (estimate by Pronexus in March 2016)

Earnings reports in English

Convocation notice in English

21

Approx. ¥300 million

Top share of English-language convocation

notices

Annual reports produced (annually)

2

Business Topics (3)

Expansion of practical IFRS disclosure service

 Introduction of advisors and dispatching of personnel

 Translation service

◆Disclosure documents (securities reports/earnings reports, etc.)

◆_{Accounting manuals for overseas subsidiaries}

 Provision of English-language disclosure documents editing system

 Identification of customers’ disclosure issues through analysis of disclosure examples for specific sources

 Provision of IFRS disclosure documents entry form customized for each customer

 Support such as advice, editing, and proofing in production of IFRS disclosure documents

 Provision of IFRS disclosure documents editing system

Practical IFRS: A member service providing information

Holding of IFRS seminars

Production Support for disclosure documents



As a partner that solves practical IFRS issues, we handle all kinds of requests, from the provision of

information and seminars to help producing IFRS disclosure documents and incidental matters

Practical support for related matters

Provision of information / knowhow

We support 49 of 77 companies

(64%) that have chosen in option

application of IFRS

(As of April 25, 2016)

Member website Materials provided

Office-like compilation operability

Examples⇔_text

searching system

* The materials and searching system contain IFRS texts obtained with permission of the FRS Foundation

We support 26 of 34 companies

(76%) that will chose application of

2

Business Topics (4) Smart Convocation Notice Service launched

1. Links to information of interest 2. Easy to scroll drop-down menu

3. Map directions to the shareholders meeting venue 4. Videos stream function

1. Visual aids and compact summaries based on the original convocation notice

2. Provided over a secure server

3. Effective notifications to shareholders / investors 4. Efficient production through linkages with original

data

Overview of the Smart Convocation Notice Service

POINT

POINT

POINT

POINT

POINT

 Online convocation notices for shareholder meetings will be uploaded to a secure server

 Easily accessible online by a smartphone, tablet device or personal computer, in addition to the traditional printed materials

 Developed and initially examined based on a request from AEON CO., LTD.

Features of the Service

Function of the Service

The convocation notice for the 91st Regular General Meeting of Shareholders of AEON CO., LTD., released on April 2016, was the first to use this service. We started providing the service fully for general meetings of shareholders held after the year ended March 2016. The convocation notice for 72nd General Meeting of Shareholders of Pronexsus, which was

released online in June 2016 was also adopt this service. ₂₃



The Service for Listed Companies and to be Applied by PRONEXUS

called “Smart Convocation Notice Service”

Support business for Japanese companies looking to expand in Asia

Business tie-ups with regional financial institutions are moving forward

2 Business Topics (5) Progress of capital and business alliance

April 2016: Business tie-ups with 25 regional financial institutions

System consulting strengthened

■

December 2015: Business tie-up forged with Business Brain Ota-Showa Inc. (BBS)

_{Cooperation in the system service field for accounting, financial results, and} disclosure

_{Information sharing on clients, technology, and staff, as well as cooperation} for mutual benefit

Exploration of new tie-up fields through mutual use of each company’s strengths and expertise



we acquired treasury stock from BBS through a third-party allocation

Details of the business tie-ups

 Consulting on business expansion in overseas

 Human resources/payroll services

 Accounting services and support services for registrations necessary to establish a new base, etc.

 Proxy service for working visas and other applications

 Office space rental and virtual office services (Taiwan only) Details of the

business tie-ups

Strengthen support services for regional companies that are expanding overseas



March 2016: Started live relay consulting service for venturing into Asia

(At a desk in Chiba Kogyo Bank Ltd.)



February 2016: “J-REIT Fan 2016,” an IR fair for individual investors

(held jointly with TSE and Radio Nikkei)

•

A better IR venue for both individual investors and J-REITs

•

Exposure to a broad investor stratum centered on Radio Nikkei

listeners is achieved

Program

■J-REIT IR seminars ■Securities company seminars

■Keynote speech ■Special speech ■J-REIT discussion



March 2016: Individual Investors Thanksgiving Day

– Spring IR Festival 2016 – (held jointly with Radio Nikkei)

•

Radio Nikkei’s appeal to clients and its media power will be fully; broad

notification ensures exposure to a broad investor stratum.

•

Collaboration with the jointly held Investment Strategy Fair boosts the

appeal to diverse investors

■Stock speech ■Corporate IR seminars

■Seminars to be broadcast on radio and kept in archives



Tie-ins with Radio Nikkei program “Asazai”: Positive results

since July 2012

•

IR and investment information offered on morning program “Asazai”

•

Corporate IR and individual investor-support events

•

Asazai IR Special Seminars that provide a platform for direct dialogue

between individual investors and companies

2 Business Topics (6) Events for individual investors, held jointly with Radio Nikkei, will be expanded

25

Program

3-1

Shareholder return for the fiscal year under review

1. May 2015

(Voted)

Cancellation of treasury stock:

Cancelation of 2,883,000 shares of common stock

⇒

Shares outstanding after cancellation: 33,444,000 shares

Total treasury stock: 3,500,000 shares (10.5%)

2. September 2015

(Voted)

85th anniversary

commemorative dividend

FYE March 2015 FYE March 2016

End first half 9 yen

Ordinary 9 yen

Comm. 3 yen Total 12 yen End fiscal year 9 yen (Planned) 9 yen

Annual 18 yen (Planned) 21 yen

3. March 2016

(Voted)

Acquisition of treasury stock:

853,000 shares of common stock

(2.6% of outstanding stock)

(About 1 billion yen

(62.5% of forecast net income on January 29, 2016)

Acquisition (period: 2/1 to5/31/2016, completed 3/11)

27

4. April 2016

(Voted)

3-2

Recent treasury stock acquisitions and cancellations



Approx. 6.35 million shares bought back and 5.88 million shares

cancelled in four years

Shares acquired

Acquisition value

Shares cancelled

June 2012

About 2 million

942 million yen

2 million

May 2013

About 1 million

749 million yen

1 million

July 2014

About 1 million

799 million yen

Nov. 2014

1.5 million

1,075 million yen

May 2015

About 2.88 million

March 2016 About 850,000

999 million yen

Total

About 6.35 million

4,567 million yen

About 5.88 million

Outstanding shares of as March 2016

33,444,000 shares

Treasury stock

Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17 (forecast) Dividend payout ratio 54.1% 116.6% 56.8% 51.9% 45.8% 41.2 % 40.9% 38.1% Annual dividend per share ¥22 ¥22 ¥17 ¥18 ¥20 ¥18 ¥23 ¥22 Pct. of earnings returned to shareholders

54.1

%

116.7

%

58.3

%

131.0

%

98.7

%

178.7

%

99.9

%

(Unit：million yen)

1,441 668 1,060 792 779 ₆₀₂ 15 780 779 ₇₈₀ 617 1,166 601 927 1,529 749 648 1,417 _1,398

3-3

Shareholder return

(200 mil.shs) (100 mil.shs) 1,875 (250 mil.shs) 1,358 552 2,428 29 1,680 _1,679 679 (85 mil.shs)



Percentage of earnings returned to shareholders has been

around 100% over the past four years

1,680

999

639 Total shareholder return

0 0 (including ¥2 commemorative dividend) (including ¥3 commemorative dividend)

Trading Volume 0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15,000 16,500 18,000 19,500 21,000 0 100 200 300 400 500 600 700 800 900 1000 1100 1200

1300 Stock price (monthly closing price basis)

プロネクサス 日経平均

3,000

2,000

1,000

30

Annual dividend per share ¥23.00

(forecast for FYE Mar. 2016)

Net income per share: ¥56.28 (FYE Mar. 2016 results)

Net assets per share: ¥716.79 (FYE Mar. 2016 results)

Share unit: 100 shares (minimum unit: ¥98,300)

 Dividend yield 2.3% (based on figure at left)

 P/E ratio 17.47x (based on figure at left)

 P/B ratio 1.37x (based on figure at left)

(thousand)

Stock Indicators Based on the May 9, 2016 Closing Price (¥983) <Calculations of per share indicators exclude treasury stock>

PRONEXUS Nikkei 225

3-4 Stock Price, Trading Volume, and Related Indicators

3-5 Shareholder Benefit Program

31

■

QUO prepaid cards presented based on the number of years and number of shares owned

(offered to shareholders recorded in the shareholder registry as of March 31 each year who own more than 100 shares)

“Number of years owned” is the number of years that a shareholder with the same shareholder no. is recorded continuously in the shareholder registry.

Less than 1 year

but less than 3 years

1 or more years

3 years or more

100 shares

or more

prepaid card

¥500 QUO

prepaid card

¥1,000 QUO

prepaid card

¥1,500 QUO

1,000 shares

or more

prepaid card

¥1,000 QUO

prepaid card

¥3,000 QUO

prepaid card

¥5,000 QUO

Number of years owned Number

4. Forecast for the Fiscal Year Ending

March 31, 2017

Results for year ended March 2016 Forecast for year ending March 2017 Difference 1st half 2nd half Full year 1st half 2nd half Full year Full year

Net sales

12,315

8,655

20,971

12,600

8,900

21,500

528

Cost of sales

6,876

5,603

12,480

7,000

5,700

12,700

219

(Cost of sales ratio)

55.8% 64.7%

59.5%

55.6% 64.0%

59.1%

-0.4pt

Gross profit

5,438

3,052

8,491

5,600

3,200

8,800

308

SG&A expenses

3,128

3,136

6,265

3,250

3,200

6,450

184

Operating income (loss)

2,310

(83)

2,226

2,350

0

2,350

123

(Operating margin)

18.8% (1.0%)

10.6%

18.7%

0%

10.9%

0.3pt

Ordinary income (loss)

2,353

(97)

2,255

2,400

0

2,400

144

Profit (loss) attributable to

owners of parent

1,702

(22)

1,680

1,680

0

1,680

-0

●_{Management Indicators}

Full year result for FYE March 2016 Full year forecast for FYE March 2017 Difference

ROE

8.1%

7.8%

-0.3pt

(Unit：million yen)

4-1 1H vs. 2H Earnings Forecast for FYE March 2017



Forecasting YoY rise in sales and flat net income for the FYE March 2017

(an extraordinary gain was recorded in the FYE March 2016)

33 ●P/L summary M ai n ma na ge me nt indi ca to rs ta rg et ed

Main factors behind the change in net sales

Listed companies

disclosure-related ((＋－) Increase in orders for convocation notices and system services ) Slight decrease in IPOs and financing Listed companies

IR-related, etc. (＋) Increase in orders for English-language IR (translation) services and online services

Financial instruments

disclosure-related (＋) Increase in orders for domestic investment trusts and J-REITs

Database-related (_＋) Additions such as sales of eolDB data

4-2 Factors behind the Change in Net Sales by Product Area for the FYE March 2017

Results for year ended March 2016 Forecast for year ending March 2017 Difference 1st half 2nd half Full year 1st half 2nd half Full year Full year

Listed companies disclosure-related

6,065

3,059

9,124

6,100

3,180

9,280

155

Listed companies IR-related, etc.

2,698

1,990

4,689

2,800

2,090

4,890

200

Financial instruments disclosure-related

3,313

3,341

6,655

3,440

3,360

6,800

144

Database-related

238

263

502

260

270

530

27

Total

12,315

8,655

20,971

12,600

8,900

21,500

528

5. Corporate Profile

Founded Paid-in Capital Net Sales Operating Income Main Clients Number of Employees Offices Plant Group Companies

5-1

Company Data



Founded in 1930, PRONEXUS became the company with net sales ¥20 billion yen,

operating income of ¥2 billion yen and 1,000 employees.

Three consolidated subsidiaries _{Five affiliates under the equity}

method 36 Takeshi Ueno President and Representative Director

Site of the head office (Minato Ward)

Plant (Toda City, Saitama

Prefecture) Data center in the Hokuriku region

December 15, 1930; 2015 was the 85th anniversary

3,058millions of yen(As of March 31, 2016)

20,971millions of yen (consolidated; FYE March 31, 2016)

2,226millions of yen (consolidated; FYE March 31, 2016)

967 (consolidated; as of March 31, 2016)

Approximately 2,700 listed companies +

approximately 1,100 companies considering an IPO

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo

Toda City, Saitama Prefecture

37

Founded as a firm specializing

in the printing of securities certificates

Expanded into IR-related business

Expanded into Commercial Code (Companies Act)-

related documents business

Expanded into Securities and Exchange Act (Financial

Instruments and Exchange Act)-related documents business

Became a leader in securities printing

1930

1960

1970-1980s

Expanded into disclosure business

1990s

Expanded into investment trust-related business

Responded to major changes in disclosure-related laws

Accommodated change to electronic disclosures

and developed and grew system services

2000s

Expanded the business base with consulting and system services

5-2

PRONEXUS’ History

_{Founded as a firm specializing in the printing of securities certificates, PRONEXUS later moved into the disclosure}

About 70% of sales originate from disclosure and investor relations services for listed companies

22.4%

31.7%

2.4%

43.5%

5-3

Composition of net sales

Listed companies IR- related,

etc.

Financial instruments

disclosure-related

Database-related

Net sales (FYE March 31, 2016) 20,971 million

Listed companies disclosure-related

 _{Account settlement-related}

system

 Disclosure support system

 _{Disclosure and accounting}

information generating system

Shareholders’ meeting-related

Account settlement-related

_{IPO/finance-related}

Corporate information databases

 _{Business reports}

 _{IR site building and updating}

service

 _{Support for shareholders’}

meeting (visualization, etc.)

 _{English-language IR tools}

 _{Public notices, advertising, etc.}

Disclosure documents and sales

tools for investment trusts, J-REITs and foreign securities, etc.

 _{Investment trust document}

preparation support systems

 Fund management system

5-4

Our Products: (1)

Main Products and Services

１．

Listed companies disclosure-related

Main clients

Shareholders’ meeting-related

Account settlement-related

IPO/finance-related

Support producing shareholders’ meeting documents

• Convocation notices for

Shareholders’ meeting

• Printing of resolution notices • Voting forms, etc.

Support producing disclosure documents

•Securities reports •Quarterly reports •Earnings reports •Extraordinary reports

•Large shareholding report, etc.

System-based document production support

IPO support services

Support producing IPO and finance documents

Se

rv

ic

es •Provision of information •Consulting service, etc.

Do cum en ts Do cum en ts Do cum en

ts •Stock listing applications •Securities registration

statements

•Prospectuses and others

39 Listed companies (accounting / administrative divisions)

Disclosure support system Disclosure and accounting information generating system System-based document production support

２．

Listed companies IR-related, etc.

5-4

Our Products: (2)

Main Products and Services

Creation of communication tools

Tool

s

•Business reports

•Visual convocation notices •CSR reports

•Integration reports

•Earnings announcements, etc.

Website production and operation

We

bs

ite •_•Corporate information websites _{IR websites} •CSR websites

•Recruitment websites, etc.

Proprietary automatic IR site development/updating support service English-language IR Di sc lo su

re •_•English earning report _{English convocation notices for}

shareholders’ meeting

•English securities report

•English corporate governance reports, etc.

ＩＲ

•English earnings announcements •English websites

•English fact books, etc.

Support for shareholders’ meeting

Se rv ic e IR consulting Public notices, advertising Support for electronic

public notices

•Venue proposal

•AV arrangement and operation •Production of business report visuals •Planning and production of

pre-meeting visuals, etc.

Business seminars Tie-ins with Radio Nikkei program “Asazai”

•IR events, seminars

40 Main clients Listed companies _{(IR departments)}

5-4

Our Products: (3)

Main Products and Services

Main clients

Domestic investment trust management companies, listed J-REITs, overseas investment trust management companies, and overseas companies

3. Financial product disclosure-related

J-REIT company-related

Investment Trust Company related

Foreign investment trust / foreign company-related

Disclosure support system

Investment trust support system

FDS

Do cum en ts •Securities registration (EDINET documents) •Prospectuses

•Asset management report •Sales promotion tool, etc.

J-REIT support system

Su pp or t f or b ook cl os in g, sh ar eh ol de rs ’ m ee tin gs , p ub lic s to ck offer in gs , et c. Suppo rt fo r ma na gemen t co m pa ny es ta bl ishm ent a nd IPO •Prospectuses •Securities registration •Newspaper advertisement •Sales promotion tool, etc.

•Securities report •Earnings report

•Asset management report •Results briefing material •Convocation notices for

shareholders' meeting

•Voting form, etc.

・Website development / operation support, translation services

41 •Securities registration (EDINET document)

•Prospectuses

•Asset management report •Sales promotion tool, etc.

・Website development / operation support, translation services

System-based document production support

・Website development / operation support, translation services

Do cum en ts System-based document production support

BenchMark

•Analysis of one’s own company compared to

other companies. Corporate information comparison service.

42

5-4

Our Products (4): Main Products and Services

4. Database-related

Universities, research institutions, and general business companies

eolDB

Corporate information databases

•Comprehensive distribution of

information, mainly on

publicly traded companies in Japan (dating back to 1961)

Japanese English Chinese

eol Asia One Data

•Comprehensive data on

listed companies in Asia’s main regions (9 regions, about 12,500 companies) LionShares DataFeeds Company Navi •Corporate information service for career planning allowing simple company research

Japanese

•Timely distribution of needed information.

Support for database operation. Japanese

Japanese

Japanese •Support for overseas IR activities. Foreign

investors database service. Main clients

Support by

consulting

Support by

System

Security

support

Customer

support

(Account settlement)

⇒

Disclosure, Shareholders’ meeting-related

Listed Company

5-5

The Role of Our Business

Investment Trust

Company

J-REIT

Overseas investment trust management companies, and

overseas companies

IR

Sales promotion and marketing Main clients

Operation and management

Customers’ work that we address

IPOs, financing, and fund establishment

•Information, seminars •Guidebooks

•Legal checks •Ｑ＆Ａ

• Disclosure support system • Investment trust support system • Asset management and operation

support system

• Infrastructure to

maintain confidentiality

• Information security system • Insider information management

structure

•Two agent support system •Customer support center •Technical support center •ISO certification

Four

functions

that we

provide

■

We support a variety of work, centered on disclosure and IR, through four functions.

45

New Medium-term

Management Plan 2018

１

Background to the New Medium-term Management Plan 2018

■

Changes in the business environment

46

Environmental changes in recent years

Environmental changes envisioned

for the medium- to long-term

•Recovery of number of listed companies

•Increasing sales of financial products such as investment trusts

•Growing need for dialogue between companies and investors based on

adoption of corporate governance codes

Contributied to

performance for FYE

March 2015 and FYE

March 2016

•Digitization of convocation notices and unification of disclosure documents •Greater need for support services to handle diversification and vigorous

business in financial products

•Expansion of new securitization markets such as infrastructure funds •Move to online disclosure and IR tools with development of the Internet

environment

We envision big

changes with both

positive and negative

aspects

Our paramount management issue is to foresee and respond to

environmental changes and change them into growth potential

■

Our social mission

Supporting disclosure and IR

for over 2,100 listed companies

Our mission is to provide advanced and

stable services as a kind of social

infrastructure in Japan’s capital markets

２

Basic Concept of the New Medium-term Management Plan 2018

47



Expanding domain: From support producing disclosure documents to support for

practical processes surrounding disclosure

•In the practical business of disclosure, the process of going from accounting data to disclosure data is

increasing the burden on customers year by year.

•We will expand the scope of practical support by upgrading our system services and enhancing our BPO

and consulting services

Clients’ practical operations in areas between

book closing and disclosure

Support for producing disclosure documents mainly used by disclosure support systems

System-based

support BPO support Consulting support

Clients’ IR and marketing activities

Support for producing IR and marketing materials

Expansion of support in new areas Enhancem ent of support in existing areas Support for producing disclosure documents

3

Expansion of Domains based on the New Medium-term Management Plan 2018

48



We will expand the domain of practical support while strengthening our foundation in

support producing statutory disclosure documents.

Disclosure for listed companies Disclosure for financial instruments IR for listed companies

Operational support domains related to disclosure and IR

Sales promotion for financial instruments Legal disclosure document preparation support Overseas expansion support and database business

Expand support domains by system services Provide consulting and

BPO services based on enhanced expertise Ｊ－ＲＥＩＴ Reinforce foundation of core businesses Provide IR support services to address changes in disclosure systems

Expand support domains for financial products

4

Key Strategies in the New Medium-term Management Plan 2018 (1)

49

1.Expand the disclosure process support domain for listed companies disclosure

2.Provide services that address changes in disclosure systems

Background

 Increased workload of operational processes from account settlements to disclosure

 Rising demand from clients to streamline operations

 Shortage of highly experienced experts in disclosure

Key strategies

Expansion of function and rool out support

system service centered on PRONEXUS WORKS

Provision of BPO services

Background

 Growing demand for engagement between companies and investors with the introduction of the Corporate Governance Code  Increasing number of companies

adopting IFRS

 Growing demand for the translation of disclosure documents into English  Future digitization of convocation

notices for general shareholders meetings

Key strategies

_{Enhancement of English language translation}

system

_{Expansion of online services}

_{Enhancement of support services} for IFRS compliance

Supporting customers’ practical business through system services and consulting

Providing pioneering services that meet regulation changes, increasing needs, and IT environment development

4

Key Strategies in the New Medium-term Management Plan 2018 (2)

3.Expand services in new domains of financial instruments disclosure

4.Develop the overseas expansion support business and expand the database business

Background

 Investment trust market expected to maintain its current vigor over the interim

 Diversification of financial product markets

 Growing demand among asset management companies to streamline operations

Key strategies

Expansion of operational support to

the investment trust management companies Initiatives in new securitization fields

such as infrastructure funds

Strengthening of support for marketing of financial products such as websites and marketing tools

Support for asset management in J-REITs

Background

 Increase in number of Japanese companies expanding into Asia given the long-term contraction of

domestic demand

 Maturation of the corporate information database market

Key strategies

Development of business to support

Japanese companies intending to expand their business in Asia

Expansion of corporate information database eolDB

Expand practical support surrounding financial disclosure

4

Key Strategies in the New Medium-term Management Plan 2018 (3)

51

5.Build a company-wide platform for supporting business domain expansion

6.Utilize outside resources to expand business domains

7.Financial strategy

Background

 Growing need for enhancing human resources and organizations for carrying out business domain expansion

 Need to improve productivity and profitability for domain expansion and stronger competitiveness

Key strategies

_{Build company-wide platform for domain}

expansion including human resources development, etc.

Enhancement of productivity and profitability increased ratio of in-house production and improvements in business processes

Control cost increases from system enhancement by improving productivity and earning power

Background

 New know-how and skills are essential for expanding business domains

Key strategies

_{Promote the utilization of outside resources, including M&A as well} as capital/business alliances

Speed up domain expansion by making use of external resources in addition to strengthening internal resources

Background

 ROE of 8.1% in the fiscal year ended March 2016

 Total shareholder return ratio of 99.9% in the fiscal year ended March 2016

Key strategies

_{continuing to improve profitability and maintaining shareholder} returns at an elevated level.

Position improvement of capital efficiency as an important management issue

5

Quantitative Targets in the New Medium-term Management Plan 2018 (1)

52

■

Medium-term net sales, operating income, operating margin, and ROE targets

12,480 12,700 13,000 13,300 6,265 6,450 6,700 6,900 2,226 2,350 2,500 2,800 0 5,000 10,000 15,000 20,000 25,000 30,000 2016/3 (Results) 2017/3 (Plan) 2018/3 (Plan) 2019/3 (Plan) Operating income

Selling, general and administrative expenses

Cost of sales

20,971 21,500 22,200

23,000

 As a particularly important key performance indicator for management, PRONEXUS will work to achieve an operating margin of 12% or higher and a shareholders' equity ratio of 9% or higher.

10.60% 10.90% 11.30% 12.20%

8.1% _7.8% 8.2% 9.0%

Operating Margin ratio ROE

5

Quantitative Targets in the New Medium-term Management Plan 2018 (2)

53

■

Forecast of medium-term net sales by product

• We plan to increase sales in each product category, especially in the field of financial disclosure.

9,124 9,280 9,500 9,530 4,689 4,890 4,910 5,090 6,655 6,800 7,240 7,800 502 530 550 580 20,971 21,500 22,200 23,000 0 5,000 10,000 15,000 20,000 25,000 30,000 2016/3

(Results) 2017/3(Plan) 2018/3(Plan) 2019/3(Plan)

Database-related Financial instruments disclosure-related

Listed companies IR-related, etc.

Listed companies disclosure-related

5

Quantitative Targets in the New Medium-term Management Plan 2018 (3)

54

■

Detailed quantitative targets

• We will practice stable and flexible shareholder return in addition to pursuing performance targets.

Results for Year Ended March 2016

Plan for Year Ending March

2017

Plan for Year Ending March

2018

Plan for Year Ending March

2019

Change from Results for Year Ended March 2016

1. Results

Net sales _{20,971 21,500 22,200 23,000 2,028 110%}

Cost of sales _{12,480 12,700 13,000 13,300 820 107%}

Cost to sales ratio _{59.5% 59.1% 58.6% 57.8% -1.7pt －}

Operating income _{2,226 2,350 2,500 2,800 573 126%}

Ordinary income _{2,255 2,400 2,550 2,850 595 126%}

Net income _{1,680 1,680 1,780 1,970 289 117%}

2. Management indicator

Operating Margin ratio _{10.6% 10.9% 11.3% 12.2% 1.6pt －}

ROE _{8.1% 7.8% 8.2% 9.0% 0.9pt －}

3. Shareholder return

Payout ratio _40.9% Provide stable dividend with a payout ratio

of at least 30% － －

Acquisition of Treasury Stock 850,000

shares

Carry out in an agile manner as an important measure for returning profits to shareholders based on stock price, and

financial standing

Sales 15,257 15,388 18,582 20,816 21,987 22,479 _21,094 19,685 19,003 17,785

■Cost of Sales ■SG&A expenses ■Operating income

9,388 9,616 10,935 11,861 12,114 13,069 12,460 11,937 12,054 10,608 10,574 12,090 13,606 12,480 4,098 4,257 4,598 4,991 5,523 5,889 _5,751 5,548 5,534 5,492 5,630 5,684 5,520 _6,265 1,770 1,514 3,049 3,963 4,348 3,520 2,882 2,199 _1,414 1,685 1,826 2,107 1,991 2,226 11.6% 9.8% 16.4% 19.0% 19.8% 15.7% 13.7% 11.2% 7.4% 9.5% 10.1% 10.6% 9.4% 10.6% -15 -10 -5.0 0.0% 5.0% 10.0 15.0 20.0 25.0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Mar/03 Mar/04 Mar/05 Mar/06 Mar/07 Mar/08 Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

(Unit：millions of yen) 18,031 19,882 ●EDINET becomes mandatory (June/04) ●Disclosure of consolidated financial statements in the convocation notices (Apr./05)

●Companies Act and

Increase in convocation notice publishing (May/06)

●Increased publication of investment trust risk information (Sep./07)

▽Digitization of listed company stock certificates in Japan (Jan./09)

▽_{Simplification of investment trust}

prospectuses (Aug./10)

●Financial Instruments and Exchange Act (Sep./07)

●Quarterly reporting system and XBRL disclosure

(Apr./08) ▽_{Simplification of quarterly reporting}

system (Apr./11)

▽_{Lehman crisis (Sep./08)} ●Main system revision

●Next-generation EDINET (Sep./13) Securities reports disclosure begun via new EDINET (from Jan./14)

1

Operating margin

▽_{Management reports}

split into two stages (begun Jan./15)

21,119

●_{Introduction of corporate}

governance code (begun Jun./15)

1.

Our Performance and Business Environment: System Changes and Effects of Market

Conditions

2. Main Management Indicators

2012/3 2013/3 2014/3 2015/3 2016/3 _(Forecast) 2017/3 Net sales 17,785 18,031 19,882 21,119 20,971 21,500 Rate of change (%) (6.4) 1.4 10.3 6.2 (0.7) 2.5 Cost-of-sales ratio (%) 59.6 58.6 60.8 64.4 59.5 59.1 Operating income 1,685 1,826 2,107 1,991 2,226 2,350 Rate of change (%) 19.1 8.4 15.4 (5.5) 11.8 5.6 Operating margin (%) 9.5 10.1 10.6 9.4 10.6 10.9

Profit attributable to owners of parent 1,060 1,166 1,417 1,358 1,680 1,680

Earnings per share (EPS) 29.91 34.69 43.63 43.72 56.28

Rate of change in EPS (%) 58.6 16.0 25.8 0.2 28.7

Net assets 21,943 21,758 21,819 20,934 20,852

ROE (%) 4.9 5.4 6.5 6.4 8.1 7.8

Dividends per share 17 18 20 18 23 22

Total dividends 602 601 648 552 679

Acquisition of treasury stock 15 927 749 1,875 999

Dividend payout ratio (%) 56.8 51.9 45.8 41.2 40.9

Total return to shareholders (%) 58.3 131.0 98.7 178.7 99.9

Average number of shares

during year (excld. treasury stock) 35,440 33,633 32,485 31,077 29,855

3,824 3,940 3,942 3,839 3,728 3,641 _{3,583 3,552} 3,533 3,578 3,608 2,111 2,319 2,352 2,342 _2,271 2,237 _{2,163 2,163} 2,135 2,144 2,157 55.2% 58.9% 59.7% 61.0% 60.9% 61.4% _{60.4% 60.9%} 60.4% _59.9% 59.8% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0 1,000 2,000 3,000 4,000 5,000 6,000

Mar/2006 Mar/2007 Mar/2008 Mar/2009 Mar/2010 Mar/2011 Mar/2012 Mar/2013 Mar/2014 Mar/2015 Mar/2016

Listed companies Client companies Market share

1. Number of Listed Client Companies for Regular and Ongoing Products

※

Number of listed clients companies that place orders for either convocation notices or

securities reports

60% of listed companies are PRONEXUS clients

No. of listed companies trending upward ＋₃₀ 3 ＋₄₅ Number of companies 3. Major Operating Performance Indicators

3,824 3,940 3,942 3,839 3,728 3,641 _3,583 3,552 3,533 3,578 3,608 1,874 2,069 2,118 2,120 2,065 _2,013 1,948 1,946 _1,923 1,943 1,957 49.0% 52.5% 53.7% 55.2% 55.4% _55.3% 54.4% 54.8% _54.4% 54.3% 54.2% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Mar/2006 Mar/2007 Mar/2008 Mar/2009 Mar/2010 Mar/2011 Mar/2012 Mar/2013 Mar/2014 Mar/2015 Mar/2016

Listed companies Client companies Our share of listed company customers

Ranging between

53% and 55%

4

3. Major Operating

Performance Indicators 2. Number of Clients for Securities Reports (Listed Companies)

3,824 3,940 3,942 3,839 3,728 3,641 _3,583 3,552 3,533 3,578 3,608 1,722 1,942 2,012 1,998 1,928 1,914 _{1,857 1,863} 1,840 1,854 1,872 45.0% 49.3% 51.0% 52.0% _51.7% 52.6% _51.8% 52.4% 52.1% 51.8% 51.9% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Mar/2006 Mar/2007 Mar/2008 Mar/2009 Mar/2010 Mar/2011 Mar/2012 Mar/2013 Mar/2014 Mar/2015 Mar/2016

Listed companies Client companies Our share of listed company customers

Number of companies

Hovering around 52%

3.Number of Clients for Convocation Notices for Shareholders’ Meeting (Listed Companies)

5

3. Major Operating

158 188 121 49 19 22 36 46 54 77 92 93 117 74 26 10 12 20 24 22 38 45 59% 62% 61% 53% 53% 55% 56% 52% 41% 49% _49% 10% 20% 30% 40% 50% 60% 70% 0 50 100 150 200 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

No. of IPOs Client companies Market share

3. Major Operating

Performance Indicators 4.Number of Clients for Listing Application Materials (Calendar-Year Basis)