Supplementary Presentation Materials for FY ending March 2027 Q2 (Interim)

Business Performance Overview

In Q2 of the fiscal year ending March 2027, revenue reached 4,897 million yen (YoY +6.6%) and orders were 5,928 million yen (YoY +18.8%), showing growth. However, due to delays in revenue recognition and overlapping one-off expenses, operating income was -198 million yen and ordinary income was the same amount, resulting in interim net income attributable to owners of the parent of -185 million yen (loss). By segment, orders and revenue in the Security and Solution Services divisions were solid. Conversely, gross margin declined due to rising material costs and foreign exchange impacts. Going forward, the company will transition to a new medium-term management plan while balancing investment and cost control.

Outlook and Capital Policy

Full-year FY2027 forecast assumes revenue of 12,200 million yen, operating income of 662 million yen, ordinary income of 715 million yen, and net income of 429 million yen. The company will continue its progressive dividend policy; for FY2027 it expects a dividend equivalent to 0.54 yen per share (¥0.54). ROE target is 12.0%, aiming for 15.0% by 2029. Temporary expenses such as increased personnel investment, AI training costs, and one-off M&A-related costs affected the period. In preparation for the new medium-term plan, the group will optimize capital efficiency and investment strategy across the group.