Fiscal Year Ending December 2026 — Third Quarter Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

Rococo Co. Ltd. recorded net sales of 7,165,522 thousand yen for the cumulative third quarter of the fiscal year ending December 2026 (a 9.3% increase YoY). Operating income was 297,094 thousand yen (a 26.9% decrease YoY), ordinary income was 285,138 thousand yen (a 32.7% decrease YoY), and net income attributable to owners of parent for the quarter was 147,674 thousand yen (a 48.7% decrease YoY). The full-year forecasts are net sales of 10,304 million yen, operating income of 610 million yen, ordinary income of 603 million yen, and net income attributable to owners of parent of 409 million yen, with earnings per share of 109.94 yen. By segment, ITO & BPO posted net sales of 4,891,124 thousand yen, Cloud Solutions 2,213,993 thousand yen, and Overseas Business 347,015 thousand yen, totaling 7,452,133 thousand yen.

Outlook and Key Issues

As noted in the supplementary materials to the financial statements for the current period, despite an increase in gross profit, the rise in selling, general and administrative expenses has pressured profits. With continued investment of effort in acquiring new projects and newly acquired subsidiaries, the contribution from overseas operations and growth in cloud/AI-related businesses will be key. While the earnings forecast remains unchanged from the previous announcement, actual performance could be affected by factors such as higher crude oil prices, inflationary pressure, and foreign exchange movements, warranting caution.