Slide 1: Financial Results for FY06/26
Financial Results for FY06/26 (July 1, 2025 to June 30, 2026) [Non-Consolidated] Intelligent Wave Inc. August 7, 2026 © INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Results Highlights
Results Highlights FY06/26 Results • Sales and operating profit reached record highs, driven by strong contributions from system upgrade and other projects for major customers • The work to address quality issues that had continued since the beginning of the fiscal year was completed during the year
Slide 3: Financial Results for FY06/26
FinancialResults Financial Resultsforfor FY06/26 FY06/26 Progress of the Medium-Term Management Plan and Earnings Forecasts for FY06/27 Reference © INTELLIGENT WAVE INC. All rights reserved. 3
Slide 4: Overview
Overview ◼ Sales and profit increased as system upgrade and other projects for major clients progressed ◼ Quality-related work underway since the beginning of the fiscal year was completed during the year, and profitability continued to recover ◼ Orders received and backlog declined from the high co
Slide 5: Sales by Business Domain
Sales by Business Domain ◼ Sales in the payment domain increased, particularly in the core FEP and fraud detection areas, as system upgrade and other projects for major clients progressed ◼ In the data communications and analytics infrastructure domain, revenue from system development projects for s
Slide 6: Sales by Category
Sales by Category ◼ System development projects, including system upgrade and other projects for major clients, progressed in the second half ◼ Cloud services sales increased, driven by user growth and the addition of new features for existing users ◼ Sales of third-party products increased signific
Slide 7: Operating Profit: Analysis of YoY Change
Operating Profit: Analysis of YoY Change ◼ Operating profit increased on higher sales, despite the impact of work undertaken to address quality issues for certain customers and a decline in the gross margin in the security domain ◼ The work to address quality issues that had continued since the begi
Slide 8: Performance by Half-Year
Performance by Half-Year FY06/25 FY06/26 (Millions of yen) 1H 2H 1H 2H Net sales 7,540 8,055 8,352 8,894 System development 3,479 3,359 2,769 3,417 Maintenance 796 822 832 844 In-house products and services 165 383 408 398 Third-party products and services 647 440 1,312 902 (hardware, etc.) Cloud se
Slide 9: Operating Profit: Annual and Quarterly Trends
Operating Profit: Annual and Quarterly Trends (Millions of yen) Gross profit SG&A expenses Operating profit Operating profit Operating margin Gross margin profit margin SG&A expense ratio Operating margin profit margin Gross margin 1,600 32.9% 33.6% 32.6% 32.6% 40.0% SG&A expense ratio 30.2% 31.3% 3
Slide 10: Orders Received by Category
Orders Received by Category ◼ Orders received declined against a high comparison base created by large, multi-year contracts secured in cloud services, the security domain, and other areas in the previous fiscal year ◼ Orders for system development projects increased, driven by system upgrade and ot
Slide 11: Order Backlog by Category
Order Backlog by Category ◼ Order backlog declined against a high comparison base created by large, multi-year contracts secured in the previous fiscal year. ◼ Order backlog for system development projects increased, driven by system upgrade and other projects from major clients. ◼ Although down yea
Slide 12: Long-term Order Backlog Trend
Long-term Order Backlog Trend ■System Development ■Maintenance, In-house products and services, Third-party products and services (Millions of yen) ■Cloud Services ■Security 20,311 20,000 18,429 16,584 15,000 10,974 10,000 9,563 5,335 5,317 5,022 5,000 4,434 0 FY06/18 FY06/19 FY06/20 FY06/21 FY06/22
Slide 13: Progress of the Medium-Term Management Plan and Forecast for FY06/27
Financial Results for FY06/26 Progress of the Medium-Term Management Plan and Forecast for FY06/27 Reference © INTELLIGENT WAVE INC. All rights reserved. 13
Slide 14: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan ◼ Sales were largely in line with the plan, driven by the payment business, while progress in the security and data communication & analytics infrastructure businesses fell short of the Medium-Term Management Plan ◼ Promoted the strengthening of the earnin
Slide 15: Review of FY06/2026 and Key Initiatives Going Forward
Review of FY06/2026 and Key Initiatives Going Forward Business Domain Key Initiatives for FY06/2027 Key Actions • Development of AI agents for quality management • Enhance and embed the quality management framework • Implementation of AI-driven development and other • Enhance development and quality
Slide 16: Strengthening Corporate Foundations through AI
Strengthening Corporate Foundations through AI Integrate AI into development and quality assurance processes to enhance development productivity and quality, while advancing existing services and creating new business opportunities. (I) Internal Transformation (II) Enhancement of Existing (III) Crea
Slide 17: Framework for Creating New Solutions
Framework for Creating New Solutions Leveraging technology assets developed through existing businesses, the Company will pursue proof-of-concept initiatives and collaboration in growth areas such as next-generation payments, financial and capital markets, and data utilization and governance. (III)
Slide 18: FY06/2027 Earnings Forecast
FY06/2027 Earnings Forecast ◼ IT investment demand from credit card companies and payment service providers is expected to remain firm ◼ On the profit front, the impact of the work undertaken in the fiscal year under review to address quality issues has subsided. We will seek to improve profitabilit
Slide 19: FY06/2027 Earnings Forecast
FY06/2027 Earnings Forecast (Millions of yen) FY06/26(actual) FY06/27(forecast) 1H 2H Full year 1H 2H Full year YoY Net Sales 8,352 8,894 17,247 8,800 8,900 17,700 +2.6% Payment 6,970 7,314 14,285 7,350 7,200 14,550 +1.9% Security 993 1,073 2,067 970 1,180 2,150 +4.0% Data communication and 387 506
Slide 20: FY06/2027 Earnings Forecast by Category
FY06/2027 Earnings Forecast by Category ◼ System development is expected to remain robust, driven primarily by system renewal projects for major customers ◼ Hardware sales are expected to remain at a level comparable to the previous fiscal year, with growth normalizing following the substantial incr
Slide 21: Shareholder Returns
Shareholder Returns ◼ Our basic dividend policy is to maintain stable dividends with a target payout ratio of 50% ◼ The Company plans to pay a year-end dividend of ¥20 per share for FY06/26, in line with its initial forecast ◼ The Company plans annual dividends totaling ¥37 per share for FY06/27, co
Slide 22: Reference
Financial Results for FY06/26 Progress of the Medium-Term Management Plan and Forecast for FY06/27 Reference Reference © INTELLIGENT WAVE INC. All rights reserved. 22
Slide 23: Manufacturing Costs
Manufacturing Costs (Millions of yen) FY06/25 FY06/26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Materiak costs 17 5 6 11 15 4 4 2 Labor costs 770 747 751 742 798 795 804 797 Overhead costs 819 814 790 1,003 908 945 954 1,019 Subcontract processing costs 1,064 1,032 969 901 854 871 914 986 The manufacturing costs for
Slide 24: SG&A Expenses
SG&A Expenses (Millions of yen) FY06/25 FY06/26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Personnel 407 428 416 431 438 434 427 447 Recruiting and training 18 12 12 40 21 11 21 46 Equipment and maintenance, etc. 108 112 110 115 115 116 114 120 Advertising 13 14 26 12 5 11 7 9 Other 127 131 146 129 146 138 114 126 Tot
Slide 25: Cash Flows
Cash Flows (Millions of yen) 313 Income before taxes +2,106 (1,730) D&A +1,711 A/R increase (2,031) Inventories increase (142) (975) A/P increase +554 6,422 Accrued consumption (404) Dividends paid (972) taxes decrease Income taxes paid (1,255) Payments into time deposits (600) Purchase of intangibl
Slide 26: Revenue Type: Recurring and Spot
Revenue Type: Recurring and Spot ■ Net Sales (Millions of yen) ■ Order Backlog (Millions of yen) Recurring Spot Recurring Spot 20,000 25,000 120% 18,000 17,247 21,795 21,187 20,311 20,238 15,596 1,896 1,588 100% 16,000 20,000 18,636 1,115 19,024 18,790 14,518 2,310 18,428 2,005 14,000 6,523 16,584 2
Slide 27: Historical Performance
Historical Performance ■ Net sales ■ Operating profit 17000 (Millions of yen) 15000 Transition to TSE prime market 13000 Listing on the 1st Section of TSE 11000 9000 Inclusion into the DNP Group Listing on the JASDAQ market 7000 5000 3000 1000 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 0
Slide 28: Company Overview
Company Overview Established December 27, 1984 (As of June 30, 2026) Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo No. of employees 534 Parent company Dai Nippon Printing Co., Ltd. (50.73%*) Share capital ¥843,750 thousand Issued shares 26,340,000 shares No. of shareholders 12,055 Shareh
Slide 29: Intelligent Wave Inc.
These materials have been prepared solely for the purpose of providing information regarding Intelligent Wave Inc. and its businesses, and are not intended to solicit investment in any securities issued by Intelligent Wave Inc. Any opinions, forecasts, or other statements contained herein are based