Financial Summary for Q3 of Fiscal Year Ending May 2026 [Japanese GAAP] (Consolidated)

Overview of Financial Performance

Consolidated net sales for Q3 of the fiscal year ending May 2026 were JPY 229,470 million, a 0.2% increase YoY. While revenue declined due to the peak out of a large-scale BPO solutions contract, sales slightly increased driven by business expansion in Expert Solutions, Regional Revitalization & Tourism Solutions, and Life Solutions. Gross profit increased to JPY 51,518 million (3.7% YoY growth), but selling, general and administrative expenses rose due to higher retirement benefit costs and IT infrastructure usage fees, resulting in an operating loss deterioration from △JPY 1,280 million to △JPY 1,329 million YoY. Ordinary income improved from △JPY 842 million to △JPY 286 million due to increased non-operating income. Net quarterly loss attributable to owners of parent was △JPY 1,893 million, a significant improvement from △JPY 6,163 million in the previous year.

Segment Results and Financial Position

By segment, BPO Solutions reported decreases in both sales and profits, while Expert Solutions saw sales growth (+1.3%) and improved profitability. Life Solutions recorded net sales of JPY 7,056 million (12.1% YoY increase) with a substantial increase in operating income. Regional Revitalization & Tourism Solutions also showed improved profitability with net sales of JPY 5,964 million (20.4% YoY increase). On the financial front, total assets stood at JPY 229,276 million (13.5% YoY decrease) and net assets at JPY 133,824 million (5.2% YoY decrease), raising the equity ratio to 55.7%. Full-year earnings guidance has been revised to net sales of JPY 310,000 million (0.2% increase), operating income of JPY 500 million, and a net loss attributable to owners of parent of JPY 1,800 million.