Bridge Report:（4290）Prestige International Fiscal Year Ended March 2025

Shinichi Tamagami, CEO	Prestige International Inc.(4290)

Company Information

Stock Information

*Stock price as of closing on July 22. The number of shares issued was obtained by subtracting the number of treasury shares from the number of outstanding shares as of the end of the previous quarter.
*BPS and ROE are the actual results for the FY ended March 2025. The figures are rounded off.
*DPS and EPS are the company’s estimates for FY ending March 2026.

Consolidated Earnings Trend

* The estimated figures are based on the disclosure material made by the Company. Units: million yen.
* The company has adopted the “Accounting Standard for Revenue Recognition (ASBJ Statement No. 29)” etc. at the beginning of the fiscal year ended March 2022.

This report outlines the financial results of Prestige International Inc. for the fiscal year ended March 2025, etc.

Table of Contents

Key Points
1. Corporate Overview
2. Medium-Term Business Plan
3. Fiscal Year Ended March 2025 Earnings Results
4. Fiscal Year Ending March 2026 Earnings Estimates
5. Conclusions
<Reference: Regarding Corporate Governance>

Key Points

• In the fiscal year ended March 2025, sales grew 8.5% year on year to 63,719 million yen. As their mainstay assistance service expanded and the sales in each segment grew, an increase in contracts in the Financial Guarantee Business contributed to sales growth, offsetting the effect of the completion of vaccine-related operations. Operating profit rose 0.5% year on year to 7,961 million yen. Earnings in segments with sales growth offset the loss of vaccine-related profit. As a result, operating profit increased slightly.

   

• For the fiscal year ending March 2026, they forecast that sales will grow 9.9% year on year to 70 billion yen and operating profit will rise 6.8% year on year to 8.5 billion yen. Sales are expected to increase, as their assistance service, which is the mainstay, will keep growing and they will continue investment in Roadside Assist and Home Assist services, which are their core services, and offer valuable services while trying to differentiate them from competing services. Operating profit is projected to rise, despite the wage increase and commodity price hike, through improving business operation efficiencies via DX, including AI, and contract price increase with business partners. Regarding dividends, they plan to pay 26.00 yen/share (an interim dividend of 13.00 yen/share and a year-end dividend of 13.00 yen/share), up 2.00 yen/share from 24.00 yen/share in the previous fiscal year. The expected payout ratio is 62.2%.

   

• Although the BPO industry tends to shift resources from human to artificial intelligence in the service processes, they plan to actively utilize “human resources” from the perspective of their core business in assistance and emergency services. Due to the fact that inquiries on assistance and emergency situations are very unique from one to the other, and customers may be panicking in the situation, a “human touch” with a hospitality approach is essential to provide “peace of mind”. However, apart from direct customer contact points and processes, they will look into every aspect to adopt technologies that will streamline each process. The goal is to automate documentation, summarization, and work scheduling, as well as significantly improve efficiency in the fields of robotic process automation (RPA) and chatbots. We would like to pay attention to the progress of streamlining the process through these technologies and the timing of l the improvement in profitability and operation profit margin will start rising.

   

1. Corporate Overview

They operate the BPO (Business Process Outsourcing) Business together with in-house field network in Japan and overseas under the management philosophy: “To listen to end-user (consumer) inconveniences and troubles, engage in business creation that will lead to solutions, and grow as a company that contributes by providing solutions to social issues through that development.” Their main services for BPO include a roadside assistance service provided to automobile insurance company’s policy-holders as well as car manufacturer’s vehicle owners (executing in a one-stop basis, receiving trouble reports and providing on-site services to solve problems), the Healthcare Program (https://www.hcpg.jp/) dealing with injuries and illnesses which Japanese expats and tourists suffered during their overseas stay, a house maintenance service provided to high status condominium residents, etc. (stopping water leakage, lock opening, housecleaning, etc.) and a parking area assistance service for companies operating parking lots. For in-house field network, they provide an unique in-house field network, that fulfills the “last one mile” for the assistance and emergency process. This in-house network provides services; for automobiles (e.g. towing trucks), for households (e.g. plumbers), for up-market hospitals in Southeast Asia (e.g. “Japanese Help Desk”), where differentiates themselves largely from other status quo BPO providers. Although all these services are familiar, the company operates as a B-to-B-to-C business. In other words, they do business under the name of a client enterprise (E.g.: a non-life insurance company, an automobile-related company, or a real estate management company, or the like) when providing services. Thus the company name “Prestige International” is not often heard to the public.

(1) Group Philosophy and Group Operating Policy

Group Philosophy
To listen to end-user (consumer) inconveniences and troubles, engage in business creation that will lead to solutions, and grow as a company that contributes by providing solutions to social issues through that development.

Group Operating Policy
Prestige International Group strives to become a necessary part of our community, trusted by client enterprises and offering solutions that end users appreciate. While their desire is to continually contribute to society, they also aim to become a global company, prospering together with client enterprises, shareholders, employees, and local communities.

(2) Outline of business segments

The corporate group provides mainly seven types of businesses. Many of the businesses operated by the company have created and offer services required by end-users, based on the ambition to “listen to those who have trouble and solve the trouble,” which remains unchanged ever since the company establishment.

◎ Automotive Business
This business deals with inquiries from customers and provides roadside assistance service for end-users of their clients, which are non-life insurance companies as well as automobile manufacturers and dealers. Their contact centers receive calls from customers facing trouble concerning automobiles, and in-house field staff from group companies or partner companies which meet Prestige International’s quality standards handle the trouble on site. This allows for the provision of a uniform and high-quality service both in terms of technical capability and customer services ranging from receiving the report to solving the problem, which is a strength unique to this corporate group. Even in case an emergency response is required, they swiftly solve trouble anytime, 24 hours a day and 365 days a year, by fusing IT solutions and optimized backup systems.

(Taken from the corporate website/as of the end of March 2025)

◎ Property Business
They operate a multilateral business supporting client enterprises, whose mission is shifting from “providing a place to live” to “providing value in living.” So that customers can feel at ease even more after constructing their home and moving in, and live there for a long time, the company receives calls concerning housing-related trouble (facilities using water, electrical appliances, fittings, locks, glass, etc.) 24 hours day and 365 days a year, and provides on-site support services where in-house field staff from group companies deal with trouble on site (house inspections, repairs, emergency measures, etc.). Moreover, they provide a Park Assist service, which is support for troubleshooting, maintenance, inspections, etc. at coin-operated parking lots and carsharing stations.

(Taken from the corporate website/as of the end of March 2025)

◎ Global Business
They provide a service for supporting Japanese travelers when they suffer an injury or illness, aimed at non-life insurance companies which offer overseas travel insurance and enterprises expanding to foreign markets whose employees are stationed abroad. This business includes phone consultation desks available 24 hours a day, the function of a claim agent, medical support such as “cashless medical services,” and operation of credit cards for payment in U.S. dollars catering to the insured such as overseas travelers, expats stationed abroad and their accompanying family members. The network cooperation between the global network of 30 operational bases in 18 countries in the world (as of the end of March 2025) and medical institutions enables response tailored to various circumstances in different countries and meticulous needs at a local site.

(Taken from the corporate website/as of the end of March 2025)

◎ Customer Business
As a business that elevates the added value of products and services offered to users by client enterprises, reduces management risks and creates long-lasting value of “security” and “reliability,” they provide customer support services such as customer communication centers and comprehensive services for equipment warranty, such as processing requests for repair of household appliances and technical support. Including a number of service fields into which the corporate group forays for the first time, and businesses where future growth can be anticipated, this business stably provides high-quality services, backed up by fostered know-how on the operation of contact centers and human resources with extensive experience accumulated in long-term employment.

(Taken from the corporate website/as of the end of March 2025)

◎ Financial Guarantee Business
This business offers a variety of services concerning guarantee for financial products related to everyday life, such as rent fees, medical expenses, nursing care and child support payments. They assume responsibility for the risk of non-payment by end-users (occupants and users) of their clients which are mainly real estate management companies, medical institutions and nursing care facilities. They utilize know-how cultivated through these fields to develop unique services.

(Taken from the corporate website/as of the end of March 2025)

◎ IT Business
This business comprehensively handles business operations by providing core systems and IT technologies that underpin all business operations of the corporate group. An environment that allows people to manifest their capabilities to the maximum is arranged through the utilization of IT, such as building and maintaining communication systems essential for contact center operations, and independently developing and operating tools for the automatization of arrangements and assessments.

◎ Social Business
The corporate group views as a social responsibility to address the issue of population decline in Japanese rural areas, and creating employment through the establishment of BPO centers alone is not sufficient to achieve the challenge.. Through the Social business, they aim for the revitalization of various regions, which will pave the way for the growth of companies. Women’s sport team “Prestige International Aranmare” has become hubs of local societies, and they aim for the development of each region by growing together with local governments and other partner companies. They engage in a variety of initiatives, such as providing support to people who work while raising children through “Orangery Day Care Centers,” which are built adjacent to BPO centers in each region.

(Taken from the corporate website/as of the end of March 2025)

(3) History

The motive for founding the company in October 1986 lay in the CEO, Tamagami’s wish for “being able to have access to high-quality and heartfelt services like in Japan even while staying overseas,” coming from his experience of inconveniences due to the differences in language and culture when he lived overseas for seven years. In the following year, the company started business in New York and launched a service for 24-hour response in Japanese to inquiries from Japanese travelers who encountered trouble. After that, the company widened its scope of the services while broadening the network to major cities in Asia and Europe. The company also developed their business in Japan and expanded their range.
Prestige International Inc. was listed on the NASDAQ Japan market in July 2001 and opened a contact center attending to emergency requests 24 hours a day, 365 days a year in Akita City, Akita Prefecture (current “Akita BPO Main Campus” WEST Wing, approx. 650 seats) in October 2003. The BPO bases, opened with the philosophy of “long-term and stable securing of human resources is what makes it possible to provide a stable service to customers,” grew in scale, having the EAST Wing (approx. 550 seats) in 2007 and the Satellite Wing (approx. 300 seats) in 2012. The high-quality infrastructure is highly regarded by clients and the center also plays a part in generating new employment opportunities in Akita in addition to its role as a showroom. Following the listing on the Second Section of the TSE in December 2012, the company’s stock was listed on the First Section of the TSE in December 2013. In April 2022, the company was listed on the Prime Market of TSE in the wake of the TSE market restructuring.

(4) Strengths

They provide services by combining contact centers, which receive calls from end-users and offer “peace of mind”, and field staff who find a solution on each site, i.e., provide “last one mile” solution. Furthermore, this cooperation is coupled with IT technologies. Such a system is a feature unique to the corporate group, and also their vision. They contemplate and offer a variety of “systems” and “services” alongside their client enterprises and group companies in order to address ever-changing needs.

(Taken from the corporate website)

In addition, the strengths of the company lie in the stable recurring-revenue business, service operational bases which support their high-quality service, and consequently the achievement of high profitability and management efficiency. Moreover, the company offers not only response to phone inquiries, but also one-stop solutions based on assistance services such as on-site response. On-site response by the company itself and the countrywide network are high barriers to entry, so those are competitive advantages of the company.

① Stable recurring-revenue business
As the company offers mainly value-added services (special insurance contracts) to the existing customers of their client enterprises, such as non-life insurance companies, the fluctuation of revenues due to the external environment is relatively insignificant. The fee set under the outsourcing contract with a client company is calculated by multiplying the number of service users by the unit price of the service. If the number of service users or the utilization rate per service user increases, it will be reflected in the outsourcing contract fee for the next fiscal year. The numbers of participating enterprises and users grew especially in regard to the response to automobile-related trouble owing to better recognition of the company, bringing about a continuous increase of users eligible for the service and elevation of the usage rate. They also provide similar roadside assistance services to warranty services that automobile manufacturers and dealers attach to new car sales. The fact that each company is actively expanding its service revenue is also a tailwind. In the real estate-related service, condominium developers, etc., who used to be dependent on the pay-per-product service of selling off the properties, are enhancing recurring-revenue business in the same way, also bringing tailwind. Furthermore, the Health Care Program (medical support for employees assigned to overseas workplaces), which the company operates as an overseas business, is supported by the global development of enterprises aiming for the remarkably growing overseas market.

② Service operation bases which support high-quality services
In order to offer high quality services, the company operates contact centers and provides on-site support services in Japan. In addition, the company has a global network of 30 operational bases in 18 countries (as of the end of March 2025).

③ BPO operation bases in Japan

(Source: the company’s presentation materials)

As of the end of March 2025, they operate 10 BPO centers, including branches. The overall operational capacity is 5,916 seats, while the capacity ratio at centers is 70.6%, the rate of progress of the plan to recruit necessary personnel from business departments is 89.8% and turnover rate at centers is 12.6%. In order to elevate the capacity for undertaking tasks, the company thoroughly focuses on (1) flexible development of centers, (2) reduction of incoming telephone calls by providing online services, (3) improvement of quality by utilizing AI and (4) streamlining based on the utilization of resources.

④ Providing in-house operated on-site response in major cities throughout Japan
To bridge the call and last-one-mile service, on-site response for the Roadside Assist (automobile-related), Home Assist (real estate-related), and Park Assist (parking lot-related) are operated and managed wholly by Premier Assist Inc., a group company, in major cities throughout Japan.
Staff who assist end users with trouble on the site are full-time employees, all wearing crisp clean uniforms, and the company regularly gives lectures on manners, etc., sparing no effort in initiatives for elevating the service quality. The on-site response by full-time employees of Premier Assist Inc. is highly regarded and constitutes the source of the company’s competitiveness and differentiation.

(Source: the company's presentation materials)

⑤ Offering services globally
The corporate group has been venturing into overseas markets ever since its establishment, developing business in various countries and regions. Up to now, they have built and expanded a network of 30 bases in 18 countries in the world (as of the end of March 2025) in order to utilize their abundant experience and know-how cultivated over long years to provide high-quality services to end-users as a global enterprise. Offering multilingual services in Japanese, English, etc. 24 hours a day, 365 days a year at every of these corporate group’s bases is facilitated by the global network of approximately 4,800 medical institutions extended throughout the world.

(Taken from the corporate website)

2. Medium-Term Business Plan

On May 10, 2024, the company announced its three-year medium-term business plan started in FY 2025.

【New Medium-Term Business Plan (8th Medium-Term Business Plan)】

◎Positioning
They have launched a three-year medium-term business plan, “Origin/Next 50,” starting in the fiscal year ending March 2025 and continuing through the fiscal year ending March 2027, which marks the 40th anniversary of the founding of the company. “Origin/Next 50” is the first half of the plan to move beyond the 40th anniversary of the company’s founding to become a 50-year company. The new medium-term business plan is intended to serve as a “Nexus Point = Bridge between the Past and the Future.” Based on its “Starting Point,” “Strengths,” and “Vision for the Future,” they will pursue niche, unique, and edgy business developments over the next decade in a manner that is true to the corporate group’s identity.

◎Future business environment

◎ Management goals and earnings trends

*Unit: million yen

The basic policy of the new medium-term business plan is to increase the volume of existing subscription-based business contracts, capitalize on peripheral businesses where outsourcing is increasing amid labor shortages, and cultivate new businesses.

◎ Overall strategy
① Creating Business Potential
<Thorough improvement of quality and profitability of existing businesses>

② Development of a service platform-based revenue model
<Development and provision of a one-time-pay-type service platform that does not require human intervention, including systems>
The current business model in which client companies outsource their operations to the contact center of Prestige International involves such issues as a lack of system coordination between the client company and the contact center, a lack of real-time data sharing, and increased operating costs. They plan to develop a service that integrates operations by incorporating the client company’s telephone network into Prestige International’s contact center system. By charging per ID, the client company can curtail installation costs (because existing business phones can be used and there is no need to alter the Internet environment). The service also allows for the coexistence of internal and external telephones, real-time data sharing, and the integration of multiple communication methods, such as handheld phones used in stores and wireless devices to streamline their operations.
In addition, as a future one-time-pay-type revenue model, they will also work to build a revenue model that does not rely on human resources by providing a system that can automate and streamline business processes, for example, building a system that uses AI to calculate the amount of damage from a car accident based on images taken at the scene when staff are dispatched to a car accident. They also plan to introduce a service in which AI automatically estimates the amount of damage to a car from the images and charges for each case.

③ Flexible expansion of the sites
<Meeting the growing demand by opening satellite BPO bases (approximately 100-150 seats)>

◎ Individual business strategies
① Automotive Business
(1) The automobile industry is undergoing a once-in-a-century period of transformation, and they will actively seek to capture new demand.

(2) To develop new services in the automotive field

(3) The conventional approach of providing three-pronged services with contact centers, IT/DX, and field operations will be replaced by a new approach that offers services based on individual functions tailored to specific needs.

② Property Business
(1) Foray into the field of rental apartments, provision of next-generation management services and integrated management services
They have focused on providing on-site repairs (for leaks and clogging) and housing equipment inspections as its main business for condominiums. However, it now plans to actively expand its on-site repair services to rental apartments as well. Additionally, to address the shortage of condominium management personnel and the decline in management quality, they will introduce next-generation management services that combine patrol management with IT, primarily for condominiums. Furthermore, they plan to offer integrated customer services that comprehensively provide these services to both rental apartments and condominiums.

(2) To provide next-generation management services to condominium developers and management companies
They will actively promote its next-generation management service, Smart Desk Smart Call (Smart Management), which combines patrol management and IT, to condominium developers and management companies. This Smart Desk Smart Call (Smart Management) is a solution to the shortage of building managers. Users who introduce it will be able to adopt the IoT for condominium management tasks such as guidance, reception, and attendance through smartphone apps, tablets, and touch-screen signage. In addition, they will be able to provide a new condominium management service by adding on-site services, regular patrols, inspections, cleaning, and garbage disposal, which are management tasks that can only be done by people.

③ Global Business
(1) Expanding services in the markets for expatriates and travelers in processes from pre-departure to returning home
Their Global Business focuses on providing services to end users traveling overseas who use Overseas Travel Insurance Assistance Services (OTAI), the Health Care Program for Expatriates (HCP), the Medical Support Program (MSP), the Japanese Help Desk (JHD), the Premier Health Clinics (PHC), and Credit Cards (*US only (CARD)). In the future, they will work with HCPs to promote its brand even before customers depart and are assigned to work and create opportunities to collaborate with local solutions such as JHD, HCP, and MSP and provide touchpoints at the time of customers’ travel before departure or when temporarily returning home. By doing so, they aim to establish an economic zone for global business centered on medical-related businesses.

(2) To expand the Japanese Help Desk and Premier Health Clinic.

④ Financial Guarantee Business
They will strengthen the Rent Guarantee Business, which is a pillar of growth and earnings, and expand it. They will also nurture the medical and nursing care expense guarantee business to reach its full potential. They will enhance the Rent Guarantee Business, a pillar of growth and earnings, by expanding and evolving its strengths. They will invest for growth, strengthen its products, services, and technological capabilities, and discuss mergers and acquisitions. Medical and nursing care expense guarantees will be positioned as the next pillar of growth and nurtured to its full potential. They will continue to make upfront investments to improve their popularity, access potential customers, and increase sales frequency. In addition, they will create new businesses to make up for the shortage caused by social changes. In new businesses, they will make investments to take on new challenges, search for business opportunities, and acquire local knowledge and know-how through trials.

⑤ IT and DX
(1) They will build a development system in Vietnam, Myanmar, and Thailand, using Singapore as a hub.
Currently, PI EIS Insurance Technology Inc., which is a group company in charge of development of medium/large-scale systems, recruits engineers for offshoring in mainly Singapore, but from now on, it will recruit personnel also in Vietnam, Myanmar, and Thailand, to establish a development system with the hub located in Singapore.

(2) They will promote the standardization, labor saving, and automation of service platforms.
As of the end of the fiscal year ending March 2024, the development and maintenance structure for IT and DX has a total of 200 employees: 100 in Japan and 100 overseas. They plan to increase the number of development and maintenance staff members for IT and DX to a total of 300 by the end of the fiscal year ending March 2025 (100 in Japan and 200 overseas) and to a total of 400 by the end of the fiscal year ending March 2027 (100 in Japan and 300 overseas).
In addition, they will strengthen development using AI, which will be utilized for voice and natural language dialogue services to improve call routing and optimize the process of handling incoming calls. AI will also be utilized in the application of image recognition technology to help assess accidents and will also be used to support intellectual operations such as information entry/registration and back-office operations.

◎ Financial Strategy
① Changes in invested capital
(1) They will change the ratios of equity and interest-bearing debt in its invested capital and lower equity ratio from 64.9% to the 50% level in three years. Thereafter, they will continue efforts to maintain an appropriate level of equity capital.
(2) They will use interest-bearing debt in a well-balanced manner and limit the increase in equity, based on the premise that they will continue to invest while simultaneously strengthening shareholder returns.

② Capital Allocation
(1) They will implement an aggressive growth investment of 12 billion yen over the three years of the new medium-term business plan, centered on the development of new business bases.
(2) They intend to increase the dividend payout ratio in line with business expansion and enhance shareholder returns to achieve a total of 13 billion yen in shareholder returns in the three years of the new medium-term business plan.

③ Improvement of ROE
(1) They will raise ROE from 13.9% in the fiscal year ended March 2024 to 15% in the fiscal year ending March 2027. They will further increase ROE in the fiscal year ending March 2027 and beyond through medium-term initiatives.
(2) They will reduce equity ratio from 64.9% in the fiscal year ended March 2024 to the 50% level in the fiscal year ending March 2027.

<Medium-term initiatives to improve ROE>
◆Securing free cash
◆Continuously increasing the dividend amount
◆Preventing capital accumulation
◆Reducing equity through increased return
◆Increasing profitability through business growth

◎Sustainability
① Succession Plan for CEO
They plan to adopt a management structure under a new CEO in or after 2027, the 40th anniversary of the company’s founding. In preparation for this, they have designated the period from 2024 to 2025 as a period for evaluating, identifying, and narrowing down succession candidates, and will submit individual reports from senior executive officers and executives at higher positions and conduct individual interviews with senior executive officers. The Nomination and Compensation Committee will report on the results of the evaluation. The plan is to nominate and announce successors in or after 2026 through approval of successors by the Nomination and Compensation Committee and the Board of Directors.

② SDGs

③ ESG Initiatives for Achieving the SDGs

④ External evaluation

(Source: the company’s medium-term business plan)

3. Fiscal Year Ended March 2025 Earnings Results

(1) Consolidated Business Results

*Unit: million yen
*The figures include the figures calculated by Investment Bridge Co., Ltd. as reference values and may differ from the actual figures. (The same applies below.)

Sales grew 8.5% year on year and profit rose 0.5% year on year.
Sales grew 8.5% year on year to 63,719 million yen. As their assistance service, which is the mainstay, expanded, the sales in each segment grew, and the increase of contracts in the Financial Guarantee Business contributed to sales growth, offsetting the effect of the decrease of vaccine-related operations.
Operating profit rose 0.5% year on year to 7,961 million yen, again the earnings in the segments that saw sales growth offset the decrease of vaccine-related profit As a result, operating profit increased slightly.
Gross profit margin declined 1.4 points year on year to 22.0%, and the ratio of SGA to sales decreased 0.4 points year on year. As a result, operating profit margin dropped 1 point year on year to 12.5%. Ordinary profit margin declined 0.5% year on year, as investment gain on equity method, which was posted as non-operating profit, increased while exchange loss, which was posted as non-operating expenses, decreased. Profit attributable to owners of parent declined 15.9% year on year, due to the decline in extraordinary gain from the sale of shares, which was recorded in the previous fiscal year, the disappearance of tax effects of the liquidation of a subsidiary, the decrease in tax break due to the taxation for promoting the rise in wages, etc. When vaccine-related operations are excluded, sales and operating profit increased 11.2% and 9.5%, respectively, year on year.
Sales exceeded the initial forecast, but operating profit, ordinary profit, and profit attributable to owners of parent fell below the initial forecast slightly.

(2) Trends by Segment

*Unit: million yen

*Produced by Investment Bridge Co., Ltd. Based on disclosed material.

Automotive Business (accounting for 42.8% of sales in FY 2025)
Sales grew 7.7% but profit declined 2.6% year on year.
The Automotive Business, which mainly offers roadside assistance services to non-life insurance companies and automobile manufacturers, saw sales growth, thanks to the increase of vehicles covered by auto insurance provided by mainly direct auto insurance companies, the increase of operations in client companies for automobile equipment, and the start of assistance for new leading used car dealers. In addition, the number of cases of Roadside Assist in FY 2025 was 942,606, down 0.1% from the previous fiscal year, due to the termination of contracts with some client companies.
Operating profit declined slightly, as unit prices and expenditures to subcontractors augmented and the revision to fees for outsourcing to some client enterprises did not progress. The strengthening of the on-site support system of Premier Assist Inc., which is a group company, contributed to the curtailment of outsourcing costs. Operating profit margin dropped 1.3 points year on year to 12.7%.
The number of bases directly managed by Premier Assist in FY 3/2025 was 33, down 1 from the end of the previous fiscal year, but the total number of employees and the number of vehicles increased.

*Produced by Investment Bridge Co., Ltd. with reference to the company’s presentation materials

Property Business (accounting for 13.6% of sales in FY 2025)
Sales and profit grew 22.5% and 45.4%, respectively, year on year.
In the Property Business, which repairs condominiums, apartments, and detached houses and maintains coin-operated parking lots, sales grew due to the business expansion as on-site support services for rental housing in Home Assist performed as planned.
Operating profit rose, as on-site support services for rental housing performed as planned. The strengthening of the on-site support system of Premier Assist Inc., which is a group company, contributed to the curtailment of outsourcing costs. In addition, operating profit margin rose 1.3 points year on year to 8.4%. The total number of Home Assist cases in FY 2025 was 148,872, up 2.1% year on year, and the total number of Park Assist cases rose 3.3% year on year to 306,990.

*Produced by Investment Bridge Co., Ltd. with reference to the company’s presentation materials

Global Business (accounting for 14.0% of sales in FY 2025)
Sales and profit grew 10.2% and 41.3%, respectively, year on year.
In the Global Business, which offers medical support (Health Care Program) for claim agents and expatriates for overseas travel insurance, sales grew as the number of subscribers to Health Care Program, which is the mainstay, as they increased new client companies and the area of existing client companies increased.
Operating profit increased, thanks to the improvement in profitability through the revision to outsourcing fees for overseas Japanese-language services. Operating profit margin rose 2.8 points year on year to 12.7%. In addition, the number of subscribers increased as more people became aware of “Japanese Help Desk,” which supports subscribers in receiving a diagnosis in Japanese at overseas medical institutions.

Customer Business (accounting for 10.6% of sales in FY 2025)
Sales and profit decreased 15.2% and 34.6%, respectively, year on year.
In the Customer Business, which offers customer support services, sales and profit declined, as vaccine-related operations, which contributed to business performance temporarily until the previous fiscal year, ended and contracts with some client companies expired, although sales grew due to the increase of existing business operations.
In addition, operating profit margin declined 3.5% year on year to 11.8% for the same reason.

Financial Guarantee Business (accounting for 16.6% of sales in FY 2025)
Sales and profit increased 17.8% and 12.7%, respectively, year on year.
The sales of the Financial Guarantee Business, which offers financial guarantee services related to daily life, including rents and medical expenses, increased, as the number of contracts in the Rent Guarantee Business, which is operated by the group company Entrust Inc., grew, the ratio of the business model of adding rent guarantee when requested increased and the growth of the Medical Expense Guarantee Business and the Nursing Care Guarantee Business contributed.
Operating profit rose, as the augmentation of allowance for doubtful accounts was offset by the sales growth. Operating profit margin dropped 1.0 points year on year to 22.1%.

IT Business (accounting for 1.4% of sales in FY 2025)
Sales grew 30.0% but profit declined 14.3% year on year.
The sales of the IT Business, which offers IT solutions, increased, as they undertook the development of supply chain management systems steadily.
Operating profit declined, as they increased overseas personnel in parallel with the expansion of the offshore IT development system and upfront expenses were posted. Operating profit margin dropped 6.8 points year on year to 13.2%.

Social Business (accounting for 1.1% of sales in FY 2025)
Sales increased 2.0% year on year, and operating loss expanded 212 million yen year on year.
The sales of the Social Business, which operates the women’s sport team “Aranmare,” childcare and regional revitalization businesses, increased, as the revenue from sponsors of “Aranmare” grew as its popularity improved and an in-house nursery school was opened.
Operating profit declined, as they increased personnel expenses for improving the system and competitiveness of the sports business and increasing the number of pupils in the childcare business.

(3) Financial Condition and Cash Flows

◎Financial Condition

Interest-bearing debt: 250 million yen as of the end of March 2024, 125 million yen as of the end of March 2025
*Unit: million yen
*Interest-bearing liabilities = Borrowings (excluding lease obligations)

*Produced by Investment Bridge Co., Ltd. based on disclosed material.

Total assets at the end of the fiscal year ended March 2025 stood at 71,590 million yen, growing 3,754 million yen from the end of the previous fiscal year. Assets increased mainly due to a rise in cash and deposits, advances paid, buildings and structures, investment securities, etc., while liabilities and net assets grew mainly due to an augmentation in contract liabilities, provision for bonuses, and retained earnings brought about by the increase in profit attributable to owners of parent. The liquidity of assets is high, as current assets account for approx. 59% of total assets. Capital-to-asset ratio remains as high as 64.3%.

◎Cash Flow

*Unit: million yen

Produced by Investment Bridge Co., Ltd. based on disclosed material.

In terms of cash flows, the cash inflow from operating activities increased due to the decline in increases in accounts receivable and advances paid. The cash outflow from investment activities augmented, due to the increases in expenditures for acquiring tangible and intangible fixed assets and for acquiring investment securities, but the surplus of free cash flow, too, increased. The cash outflow from financial activities augmented due to the increase in payment of dividends. Accordingly, the year-end cash position increased 2.7% year on year.

(4) Sustainability

◎ Diversity promotion project
They consider that an important basic strategy is to create an environment where all employees can work lively with peace of mind and contribute to local communities. Evolving the women’s advancement promotion project launched in 2018 into a diversity promotion project, they aim to realize flexible, diverse workstyles while respecting the values, individuality, and background of each employee.

◎ Project for Health and Productivity Management
They implement initiatives for Health and Productivity Management in order to maintain and enhance the health of employees, prevent physical and mental disorders or cure them early, under the direction of the representative director with the personnel affairs division and the business administration division serving as a secretariat, while enlisting cooperation from the health insurance association, BPO bases, etc. so as to realize an environment where employees can work cheerfully and healthily.

4. Fiscal Year Ending March 2026 Earnings Estimates

(1) Consolidated Earnings Estimates

*Unit: million yen

Sales and operating profit are expected to rise 9.9% and 6.8%, respectively, year on year.
Due to the steep hike of commodity prices and the rise in wages in recent years, there is a rapid trend of reflecting augmented costs onto contract prices. But not all the price increases will be successful, so they are required to offer services with more added value and or process enhancement through DX, including AI, the streamlining of operations, etc. Therefore, they will invest in the system for developing IT technologies, including AI, to strengthen it.
For the fiscal year ending March 2026, they forecast that sales will grow 9.9% year on year to 70 billion yen and operating profit will rise 6.8% year on year to 8.5 billion yen.
Sales are expected to increase, as their assistance service, which is the mainstay, will keep growing and they will continue investment in Roadside Assist and Home Assist services, which are their core services, and offer valuable services while trying to differentiate them from competing services.
Operating profit is projected to rise, despite the wage increase and commodity price hike, through improving business operation efficiencies by DX, including AI, and contract price increase with business partners. . Operating profit margin is forecast to decline 0.4 points year on year to 12.1%.
Regarding dividends, they plan to pay 26.00 yen/share (an interim dividend of 13.00 yen/share and a year-end dividend of 13.00 yen/share), up 2.00 yen/share from 24.00 yen/share in the previous fiscal year. The expected payout ratio is 62.2%.

(2) Outlook and major strategies in each segment (million yen)

*Unit: million yen

【Automotive Business】
The company estimates that sales will increase 9.0% and profit will decrease 4.3% year on year.
Sales are expected to grow, due to the increases of cases and vehicles covered by the roadside assistance service, which is the mainstay, the revision to outsourcing fees in response to the rise in commodity prices, and the increase of new client enterprises. On the other hand, operating profit is projected to decline, due to the augmentation of procurement costs caused by the rise in commodity prices and the increase in personnel expenses. Operating profit margin is forecast to drop 1.6 points year on year.

【Property Business】
The company estimates that sales and profit will increase 8.8% and 16.4%, respectively, year on year.
Sales are expected to grow, as on-site support services for rental properties kept growing and they will expand Home Assist operations and rationalize prices with the aim of maximizing the synergy with the Financial Guarantee Business. Operating profit is projected to increase, thanks to the sales growth. Operating profit margin is expected to rise 0.6 points from the previous fiscal year.

【Global Business】
The company estimates that sales and profit will increase 13.0% and 4.5%, respectively, year on year.
Sales are expected to grow, due to the increase of new client companies for Healthcare Program and the revision to outsourcing fees. Meanwhile, the growth of operating profit is forecast to become gentle, due to the enhancement of the marketing systems of overseas bases, the investment in systems related to overseas travel insurance, etc. Operating profit margin is expected to drop 0.9 points from the previous fiscal year.

【Customer Business】
The company estimates that sales and profit will increase 6.8% and 24.2%, respectively, year on year.
Sales are expected to increase, thanks to the growth of chat-based operations related to credit cards, etc. The growth rate of operating profit is projected to increase that of sales, due to the withdrawal from less profitable businesses and the cancellation of less profitable contracts. Operating profit margin is expected to rise 2.0 points from the previous fiscal year.

【Financial Guarantee Business】
The company estimates that sales and profit will increase 13.5% and 11.3%, respectively, year on year.
The sales of the Rent Guarantee Business are expected to rise continuously in Entrust Inc., which is a group company. To achieve further growth, they will focus on the expansion of guarantee services in the fields of medical and nursing care. The sales growth is expected to contribute to operating profit. Operating profit margin is expected to decline 0.4 points from the previous fiscal year.

【IT Business】
The company estimates that sales and profit will drop 29.5% and 21.1%, respectively, year on year.
Sales and operating profit will be affected by the decrease of systems delivered, and expenses for recruiting engineers in Japan will be first posted. Operating profit margin is expected to rise 1.6 points from the previous fiscal year.
【Social Business】
The company estimates that sales will increase 37.6% year on year and operating loss will decrease 58 million yen year on year.
Sales are expected to grow, due to the revenue from sponsors, the revenue from tickets for home games, etc. that increase as popularity improves. Operating loss is expected to shrink, due to the sales growth although expenses will augment as they will recruit athletes and join an association for their team in the Sports Business.

(3) Policy for utilizing human resources and technologies in a hybrid manner

As their assistance services are offered mainly for dealing with car accidents, breakdowns, plumbing trouble, and diseases, “human resources” who can offer hospitality need to attend to end users at the point of direct contact with them, while judging what should be supported flexibly. On the other hand, it is indispensable to improve the quality and efficiency of the functions to support the appropriate judgment of operators and summarize responses by utilizing technologies. From now on, they will actively utilize human resources and technologies in a hybrid manner.

(Taken from the explanatory material for their financial results)

【Cases of adoption of technology】
Except for the point of direct contact with end users, they will not establish a bastion, and plan to adopt technologies for each process to streamline them.

(4) Shareholder return

◆ To raise payout ratio to around 60% by the second year of the 8th medium-term management plan
◆ To increase total return ratio to 70% or higher by the final fiscal year of the 8th medium-term management plan, and return profits amounting to 13 billion yen to shareholders while considering the status of share price and purchasing treasury shares (up to 3 billion yen)
◆ To expand not only earnings, but also the shareholder return policy to improve ROE and dividend yield again, so that Prestige International will become an attractive investment target

◎ Return with dividends

◎ Acquisition of treasury shares
【Measures in FY 3/2025】
◆ From Dec. 2, 2024 to Jan. 15, 2025, they acquired a total of 740,300 treasury shares (total amount: 499,959,300 yen).
【Measures in FY 3/2026】
◆ On May 30, 2025, they retired 1,500,000 treasury shares (which account for 1.17% of the total number of outstanding shares before the retirement).
◆ From Jun. 2 to Sep. 22, 2025, they plan to acquire a total of 750,000 treasury shares (total amount: 500,000,000 yen).
(which accounts for 0.59% of the total number of outstanding shares before the retirement)

5. Conclusions

Although the BPO industry tends to shift resources from human to artificial intelligence in the service processes, they plan to actively utilize “human resources” from the perspective of their core business in assistance and emergency services. Due to the fact that inquiries on assistance and emergency situations are very unique from one to the other, and customers may be panicking in the situation, a “human touch” with a hospitality approach is essential to provide “peace of mind”.
However, apart from direct customer contact points and processes, they will look into every aspect to adopt technologies that will streamline each processes. The goal is to automate documentation, summarization, and work scheduling, as well as significantly improve efficiency in the fields of robotic process automation (RPA) and chatbots. We would like to pay attention to the progress of streamlining the process through these technologies and the timing of l the improvement in profitability and operation profit margin will start rising.

<Reference: Regarding Corporate Governance>

◎Organization type, and the composition of directors and auditors

◎Corporate Governance Report (Latest Update: April 1, 2025)
Basic PolicyIn our company, we understand corporate governance as the basic framework of corporate management in relation to respective stakeholders including end-users, client companies, shareholders, employees, and local communities.
We believe that enhancing and strengthening corporate governance is our responsibility to increase shareholder profits and corporate value, and have set the following policies

1. Respect the rights of shareholders and ensure their equality.
2. Cooperate with each stakeholder in an appropriate manner.
3. Ensure transparency through appropriate disclosure of corporate information.
4. Work to build a board of directors and other structures that enable fair, transparent, swift, and decisive decision-making.
5. Engage in appropriate dialogue with shareholders.

<Reasons for Non-compliance with the Principles of the Corporate Governance Code>
Our company is fully compliant with the Principles of Corporate Governance Code.

<Disclosure Based on the Principles of the Corporate Governance Code (Excerpts)>

The back issues of the Bridge Report (Prestige International Inc.: 4290) and the contents of the Bridge Salon (IR Seminar) can be found at :www.bridge-salon.jp/ for more information.