Fiscal Year Ending March 2027 Interim Financial Summary

Financial Summary

For the interim period of the fiscal year ending March 2027, revenue, gross profit and EBITDA increased year-over-year driven by the consolidation of HIT and expansion in Data & AI-related businesses. The main drivers were deeper transactions with key clients, business expansion, price improvement, and the effect of accounting standard changes. However, interim net income declined significantly (Year-over-Year -72.4%) due to costs related to core system migration and impairment losses recorded in 1Q. The full-year forecast for FY2027 (ending March 2027) projects revenue of 42,000 hundred million yen and net income attributable to owners of the parent of 2,250 million yen, with net income expected to be below the prior year. The medium- to long-term plan anticipates recovery to a growth trajectory while bearing in mind the impact of head office relocation costs.

Outlook and Capital Allocation

The mid-term plan targets growth from FY2027 to FY2029 with revenue goals set from 38,109 hundred million yen to 53,000 hundred million yen. EBITDA margin assumptions are 13.9% → 14.5%. Shareholder returns will continue considering ROE and DOE. Quarterly dividends are assumed at an annual 52 yen, and shareholder benefits including digital gifts will be maintained. Note that head office relocation costs should be considered as a factor that will suppress profits during the mid-term plan period.