PRONEXUS by the Numbers
This indicates the percentage of clients that continue to place subsequent orders in future fiscal years after placing an order with PRONEXUS for one of its core products, either a securities report or convocation notice for shareholders' meetings. (Data as of the fiscal year ended March 2010.)
One factor for this extremely high rate of repeat business can be attributed to the unique support services PRONEXUS provides for its clients' essential and ongoing legal disclosure documents. Another factor can be found in the strong marks PRONEXUS has received from its clients for the advanced level of expertise, accuracy and compliance found in its services. This figure is proof positive that our clients recognize the benefits of improved business efficiency through the use of our disclosure document production systems.
In addition, PRONEXUS has developed a secure information security system that appropriately stores and processes confidential information received from clients.
In this sense, PRONEXUS' ability to provide person-to-person support through its consulting services, as well as its development of an integrated service structure that includes the latest systems and security infrastructure, both serve as key strengths in attracting repeat business from clients.
Convocation notices for shareholders' meetings required under the Companies Act and securities reports required under the Financial Instruments and Exchange Act represent PRONEXUS' two core regular products. These products also contribute a steady revenue stream, since they are less susceptible to changes in securities and IPO market conditions. PRONEXUS is committed to solidifying its client base, increasing the number of its client accounts by boosting the percentage of repeat clients for these core products.
Moving forward, PRONEXUS will continue to retain a top share in the market—evidence of its clients' trust—by evolving and expanding its client support services, including consulting, systems and security, as a company focused on providing assistance to the disclosure needs of its clients.
Securities reports required under the Financial Instruments and Exchange Act are a core product within PRONEXUS' account settlement-related business. In Japan, securities reports have been required to be disclosed on a consolidated basis and in an electronic format since the year 2000. In 2008, laws were amended to require the filing of quarterly securities reports, while in the same year companies began using XBRL for their financial statements. In this manner, the disclosure activities of corporate Japan have evolved, expanded, been digitized and been globalized since the start of the 21st century.
In responding to these significant environmental changes, PRONEXUS has developed and provides systems like PRONEXUS WORKS that streamline the business processes of its clients and accommodate the latest changes in laws and legal systems. Today, 70% of our account settlement-related product clients use PRONEXUS WORKS to compile and edit their securities reports submitted to the Financial Services Agency through EDINET.
PRONEXUS' consulting services are executed by a staff of 80 professionals who gather and provide information, perform legal checks of disclosure documents and hold close dialogue with clients. Our consulting services broadly span multiple segments including shareholders' meetings under the Companies Act, account settlement disclosures, IPO, finance, investment trust and J-REITs under the Financial Instruments and Exchange Act as well as the field of investor relations.
In addition, persons in charge of disclosure activities at client companies face a variety of challenges whenever disclosure-related laws, regulations, standards and rules are revised or newly established. Our consulting staff leverage daily information collection and research activities to provide clients with easy-to-understand updates on the latest legal systems whenever a revision is instituted. By responding to client needs in a timely manner, our consulting staff help clients resolve any disclosure-related challenges they may face.
PRONEXUS has hosted miscellaneous training seminars that help clients prepare disclosure documents since the 1970s as part of its consulting services. Since it hosted its first non-disclosure-related working-level training seminar in fiscal 2007 PRONEXUS has worked to strengthen its seminar business segment. In fiscal 2009, PRONEXUS hosted more than 550 seminars, which attracted some 30,000 people from its client companies.
Today, seminar subject matter has been expanded from simple working-level seminars on the preparation of disclosure documents to span several segments, including basic accounting, internal control systems, international investor relations practices and video streaming over the Internet to name but a few, in order to respond to the wide-ranging needs of persons in charge of accounting and general affairs at its client companies.
PRONEXUS consulting services include the publishing of guidebooks which are just as important as performing legal checks and miscellaneous training seminars found under the same segment. Our clients can use guidebooks written and edited by PRONEXUS consultants to more deeply understand and acquire detailed facts about information presented at seminars and from consultant advisory services. We have been providing guidebooks, including manuals and case study collections, since the 1970s. Guidebooks have been positioned as a core pillar of our consulting business; one that we continually seek to enhance.
PRONEXUS guidebooks are known by many of our clients as a bible for preparing disclosure documents that comply with the latest laws and legal systems.
