Notice Regarding Recording of Extraordinary Gains, Extraordinary Losses and Non-Operating Expenses, and Differences between Earnings Guidance and Actual Results for the Fiscal Year Ending November 2025

Overview of Performance

In Q4 of the fiscal year ending November 2025, the company recorded an extraordinary gain of 2,046 million yen from equity method gains. This was due to an increase in our equity interest in the joint venture as the subscription price of the capital increase by Sumitomo Mitsui Banking Corporation exceeded the consolidated book value. Meanwhile, extraordinary losses and non-operating expenses were recorded as follows: impairment loss on investment securities of 635 million yen, impairment losses on equity method securities of 652 million yen and 994 million yen, and provision for doubtful accounts of 1,086 million yen. Considering these impacts, net sales amounted to 50,349 million yen, within the range of previous forecasts, and adjusted EBITDA was 4,963 million yen, exceeding the upper limit of expectations. Operating income was △2,653 million yen, near the upper forecast limit, and ordinary income also improved accordingly. Net income attributable to owners of parent was 1,587 million yen, exceeding the previous forecast.

Differences between Earnings Guidance and Actual Results, and Outlook

Consolidated net sales and SaaS ARR remained within the guidance range. The improvements in adjusted EBITDA and operating income were contributed by productivity enhancements and strengthened investment discipline that improved cost efficiency. Although net income exceeded expectations due to recording of extraordinary gains, extraordinary losses and non-operating expenses were also recorded. Going forward, the company will continue to focus on balancing cost management and business growth to stabilize performance.