[Densan] Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Overview of Results

For the current interim period, consolidated net sales were 8,787 million yen (YoY -17.1%), operating income was 907 million yen (YoY -46.2%), ordinary income was 934 million yen (YoY -44.6%), and net income attributable to owners of parent was 662 million yen (YoY -42.9%), resulting in declines in both sales and profits. Although the public and industrial segments progressed above plan, the overall results were below the prior year. The annual dividend for the fiscal year ended March 2026 totaled 140 yen, and the dividend forecast for the current fiscal year remains unchanged (interim/end dividend details include an end-of-term dividend of 30 yen and a full-year forecast of 70 yen).

Outlook and Capital Structure

The equity ratio improved to 76.1% at the end of the interim period. Full-year earnings guidance is maintained as of May 2026. The company is promoting initiatives in AI and DX areas, including a capital and business alliance with ITSO and making Japan Exa System a wholly owned subsidiary. Responses to legal and regulatory changes and renewal of financial accounting systems in the public sector, as well as progress in leasing business packages in the industrial sector, are proceeding smoothly. Acceleration of DX promotion is expected to create future growth opportunities.