Financial Summary for the Second Quarter of Fiscal Year Ending September 2026 (Interim) [Japanese GAAP] (Consolidated)

Summary of Business Performance

The consolidated results for the second quarter of the fiscal year ending September 2026 (October 1, 2025 to March 31, 2026) showed significant increases, with net sales of 72,571 million yen (up 10.9% YoY), operating income of 9,293 million yen (up 36.3% YoY), ordinary income of 10,094 million yen (up 32.1% YoY), and net income attributable to owners of parent of 8,470 million yen (up 73.5% YoY). Notably, the recognition of gains on sales of investment securities boosted net income. By segment, the Think Tank & Consulting Services segment performed well with net sales of 33,562 million yen (up 16.1% YoY) and ordinary income of 8,431 million yen (up 49.3% YoY), while the IT Services segment posted net sales of 39,009 million yen (up 6.8% YoY) but ordinary income declined to 1,665 million yen (down 16.7% YoY).

Financial Position and Future Outlook

Total assets stood at 140,413 million yen (up 9.6% from the previous fiscal year-end), and net assets increased to 88,553 million yen (up 8.9%), resulting in a stable equity ratio of 56.4%. Cash flow from operating activities recorded an outflow of 11,992 million yen, while cash outflow for investing activities decreased to 305 million yen. The full-year consolidated earnings forecast for the fiscal year ending September 2026 has been revised upward, with net sales projected at 125,000 million yen (up 2.5% from the previous forecast), operating income at 8,400 million yen (up 12.0%), ordinary income at 9,500 million yen (up 5.6%), and net income attributable to owners of parent at 6,600 million yen (up 13.8%). While the impact of geopolitical developments in the Middle East is considered limited, the company will closely monitor customer investment trends going forward.