Financial Summary for the Second Quarter (Interim) of Fiscal Year Ending July 2026 [Japanese GAAP] (Consolidated)

Overview of Business Results

In the second quarter of the fiscal year ending July 2026, net sales reached JPY 174,081 million (42.9% YoY increase), operating income was JPY 5,481 million (51.5% YoY increase), and net income attributable to owners of parent was JPY 4,894 million (78.4% YoY increase), setting new record highs. In the public sector market, demand for device renewal per student based on the GIGA School Initiative reached its peak, and the company steadily secured large projects for network enhancement and security measures. In the private sector, renewal demand driven by the end of Windows 10 support and the expansion of cloud-based services contributed positively. Although selling, general and administrative expenses increased due to strengthened human investment, overall business performance was favorable.

Financial Position and Dividend Status

Total assets amounted to JPY 209,774 million (19.9% increase from previous fiscal year-end), and net assets were JPY 74,099 million (4.7% increase). However, the equity ratio declined by 5.1 points from 40.3% to 35.2%. Cash flow from operating activities increased by JPY 13,188 million, bringing cash and cash equivalents to JPY 34.66 billion. Regarding dividends, the company maintains a basic policy of stable dividend payments and plans to increase the period-end dividend to JPY 66 per share (an increase of JPY 6 from the previous forecast), which will be proposed at the Annual General Meeting of Shareholders on October 10, 2026. Figures reflect the stock split (1 share → 5 shares) and demonstrate enhanced shareholder returns.