Fiscal Year Ending March 2027 Q2 (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

Forval Telecom,Inc. expanded revenues in the interim period centered on information and communications areas such as the IP & Mobile Solutions Business and the Utility Business. Revenue increased substantially to 13,622 million yen year-over-year, while operating income declined from the prior year due to increases in selling, general and administrative expenses. By segment, the Utility Business showed solid growth, with segment revenue of 7,289 million yen and segment profit of 668 million yen, representing significant increases. Overall ordinary income was essentially flat, and net income decreased.

Outlook and Dividends

There is no change to the full-year forecast announced previously. The year-end dividend forecast for the fiscal year ending March 2027 has not been newly disclosed; however, the most recent dividend information is presented with respect to the end of the second quarter. Cash and cash equivalents are trending downward, but liquidity is being maintained to address increases in contract assets and accounts receivable. Growth in demand for security services driven by increased data volumes could be a long-term growth driver.