Earnings Report for the Six-Month Period Ended March 2027 (Q2) [Japanese GAAP] (Consolidated)

Summary of Results

Net sales for the interim period totaled 11,475,274 thousand yen, a decrease of 8.6% year-over-year. The revenue decline was driven by the exclusion from consolidation of two subsidiaries and a reduction in outsourcing for large projects. Cost of sales declined due to reduced outsourcing expenses, resulting in operating income of 2,695,001 thousand yen, ordinary income of 2,783,918 thousand yen, and net income of 1,924,377 thousand yen, each lower than the same period last year. Inclusion of extraordinary gains and losses led to interim comprehensive income of 2,728,182 thousand yen, an increase of 14.9% year-over-year.

Financial Position and Outlook

Total assets stood at 20,621,666 thousand yen, net assets were 14,535,236 thousand yen, and the equity ratio was 70.5%, indicating stability. Liabilities increased due to higher short-term borrowings, but the financial base is sound with increased cash and investment securities. The consolidated full-year forecast remains unchanged from the previously announced outlook. The company is strengthening recruitment and proceeding with consideration of a capital alliance with Core Concept Technology to pursue strategic growth.