Fiscal Year Ending February 2027 – Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

For the second quarter of the fiscal year ending February 2027, consolidated revenue was 40,586 million yen, a 4.8% increase year-over-year; operating income was 2,787 million yen, a 10.0% increase year-over-year; ordinary income was 2,867 million yen; and net income attributable to owners of parent for the interim period was 986 million yen. Although special losses (losses related to litigation, contract cancellation losses, etc.) were recorded due to newly consolidated subsidiaries, the company achieved higher revenue and profit driven mainly by its core Security Business. Cash flows, including cash and deposits for the interim period, showed an improving trend.

Outlook and Key Points Going Forward

Refer to the announced revision to the full-year earnings guidance published today. During the interim period there were changes to the scope of consolidation (one newly consolidated company and one removed) and the recording of special losses, which may affect the full-year outlook going forward. By segment, the Security Business is performing well; key focus areas will be how contributions from new contracts and sustained elevated personnel costs are managed.