Slide 1: ISB Group Financial Results First Half FY2026
ISB Group Financial Results First Half of the Fiscal Year Ending December 31, 2026 ISB Corporation Securities code: 9702 Disclaimer: This material has been translated from the Japanese original for reference purposes only. In the August 7, 2026 event of any discrepancy between this translated materi
Slide 2: Company Overview
Company Overview Company Name ISB Corporation Founded June 1970 Kazufumi Wakao Representative Representative Director and President Share Capital ¥2,426.03 million (as of April 27, 2026) Stock Exchange Prime Market, Tokyo Stock Exchange Listing (Securities code: 9702) Kazufumi Wakao, Representative
Slide 3: ISB Group's Milestones
ISB Group's Milestones 1970 ISB was founded 2003 IVC founded 2022 ISB transferred to the TSE Prime Market 1985 SMC founded 2008 ISB listed on the Tokyo 2024 ISB acquired AMBC Stock Exchange (TSE) 2nd Section 1990 ISB traded on the OTC market 2025 ISB relocated its corporate headquarters 2012 ISB acq
Slide 4: Business Areas of the ISB Group
Business Areas of the ISB Group ■Mobile Devices / Smartphones ■Access Control Systems / ALLIGATE ■Telecommunications / Mobility Security ■Mobile Device Management Wireless Base Stations (MDM) ■Automotive / プロダクト モビリティ ■ IoT / Wi-SUN Automotive Systems ソリューション ソリューション 事業 事業 ■Business Systems / Digita
Slide 5: Agenda
Agenda 01 First Half FY2026 Financial Results Overview 02 Initiatives Under the Medium- to Long-Term Business Plan 2030
Slide 6: Agenda
Agenda 01 First Half FY2026 Financial Results Overview 02 Initiatives Under the Medium- to Long-Term Business Plan 2030
Slide 7: First Half FY2026 Financial Results Highlights
First Half FY2026 Financial Results Highlights • Progress is largely on track against the full-year forecast. Summary • Strengthening order acquisition efforts to secure projects from the second half onward, while monitoring the impact of changes in the global environment and market conditions. Orde
Slide 8: First Half FY2026 Overview of Consolidated Financial Results
First Half FY2026 Overview of Consolidated Financial Results (Millions of yen) FY2026 FY2026 FY2025 FY2026 YoY Change YoY (%) First-Half % of Forecast Full-Year First Half First Half Forecast Forecast Net sales 18,439 19,171 732 104.0% 18,700 102.5% 38,500 Operating Profit 1,409 1,582 173 112.3% 1,4
Slide 9: Consolidated Financial Performance Trends
Consolidated Financial Performance Trends (Millions of yen) Net Sales Operating Profit Profit Attributable to Owners of Parent Progress: 49.8% Progress: 52.7% 3,500 2,500 Progress: 55.0% 40,000 38,500 3,000 37,020 3,000 2,800 2,032 33,954 2,734 2,000 32,388 1,850 2,500 30,000 2,314 1,500 1,472 1,435
Slide 10: Breakdown of First-Half Consolidated Net Sales Growth
Breakdown of First-Half Consolidated Net Sales Growth (Millions of yen) Net Sales: +732 FY2025 First Half FY2026 First Half Business and Enterprise Net Sales Mobility Security Net Sales Industrial ⚫ Wi-SUN-related ⚫ Increase in new ⚫ Finance / Securities ⚫ Security Systems projects: Solid AI-related
Slide 11: Breakdown of Consolidated Operating Profit Growth
Breakdown of Consolidated Operating Profit Growth (Millions of yen) Operating Profit: +173 FY2025 First Half Net Sales SG&A FY2026 First Half Operating Profit Profitability Operating Profit Growth Expenses (+) Finance / Securities (+) Expansion of the recurring (+) Lower office relocation (+) Public
Slide 12: Net Sales by Business Category: Mobility / Business and Industrial
Net Sales by Business Category: Mobility / Business and Industrial (Millions of yen) YoY 100.4% • Wi-SUN-related projects remained solid. Mobility • Automotive remained broadly flat year on year, reflecting Includes: market conditions. 2,593 2,655 2,665 - Automotive • With the decline in automotive
Slide 13: Net Sales by Business Category: Enterprise / Security
Net Sales by Business Category: Enterprise / Security (Millions of yen) • Finance remained solid, supported by major clients. YoY 104.5% Continued strategic upskilling to develop engineers capable Enterprise of handling upstream processes. • Public sector drove overall growth, supported by growth in
Slide 14: FY2026 Topics: Growth of Recurring Revenue Products
FY2026 Topics: Growth of Recurring Revenue Products Steady revenue growth driven by three products: ALLIGATE, the construction site card reader, and FiT SDM. (Millions of yen) PICKUP TOPIC Recurring Revenue Products: Net Sales Trend Cloud-Based Access Control System “ALLIGATE” 1,500 ● Expanded produ
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets Total liabilities declining due to lower current liabilities and net assets increasing through profit accumulation. (Millions of yen) Assets Liabilities and Net Assets As of December As of June 30, As of December As of June 30, 31, 2025 2026 31, 2025 2026 Current assets 1
Slide 16: FY2026: Forecasts of Consolidated Financial Results and Dividends
FY2026: Forecasts of Consolidated Financial Results and Dividends Financial Forecasts (Change from 2025 Results) Dividend and Dividend Payout Ratio Trend （Yen） （%） 43.9 43.4 80 Net Sales ¥38.5B (+¥1.5B) 60 32.5 30.4 40 30 20 40 10 70 0 54 55 Operating Profit ¥3.0B (+¥0.7B) 20 42 -10 -20 0 -30 FY2023
Slide 17: Agenda
Agenda 01 First Half FY2026 Financial Results Overview 02 Initiatives Under the Medium- to Long-Term Business Plan 2030
Slide 18: Medium- to Long-Term Business Plan 2030
Medium- to Long-Term Business Plan 2030 Executing Three Key Strategies to Build a Resilient Organization Capable of Adapting to Future Risks Medium- to Long-Term Business Plan 2030 Theme ¥100B ISB Innovation: Toward Breakthrough Growth — from challenge to breakthrough — ¥50B ¥37B FY2025 FY2026 FY202
Slide 19: Overview of the Medium- to Long-Term Business Plan 2030
Overview of the Medium- to Long-Term Business Plan 2030 ISB Innovation: Toward Breakthrough Growth — from challenge to breakthrough — Drive Change to Thrive, with ¥50.0 Billion in Net Sales as a Milestone Executing Three Key Strategies to Build a Resilient Organization Capable of Adapting to Future
Slide 20: Initiatives for Key Strategy 1: Business Strategy
Initiatives for Key Strategy 1: Business Strategy Key Strategy Under the Medium- to Long-Term Business Plan 2030, we will accelerate the shift to 1 2 3 high-value domains and strengthen the competitiveness of our core businesses, thereby enhancing profitability. Topics ⚫ Expand participation in cons
Slide 21: Initiatives for Key Strategy 1: Business Strategy — AI
Initiatives for Key Strategy 1: Business Strategy — AI Changes in the System Integration Market Milestones Toward Realization 2026 2027–2028 2029–2030 Moving Beyond the Time-and-Materials Model • Partial AI automation reduces billable hours, lowering project revenue AI Implementation Expansion and E
Slide 22: Initiatives for Key Strategy 2: Human Capital Strategy
Initiatives for Key Strategy 2: Human Capital Strategy Key Strategy Develop highly skilled talent through engineer recruitment and strategic upskilling in 1 2 3 specialized fields, while enhancing engagement through talent development system reforms and workplace improvements. Topics ⚫ Invest approx
Slide 23: Initiatives for Key Strategy 3: Financial and Management Foundation Strategy
Initiatives for Key Strategy 3: Financial and Management Foundation Strategy Key Strategy We aim to strengthen the management foundation that supports sustainable growth by 1 2 3 improving capital efficiency, establishing highly transparent governance, and addressing environmental challenges. Topics
Slide 24: Growth Investment
Growth Investment First Half FY2026 Investment: ¥650 million allocated in 1H FY2026 for building a sustainable growth foundation and driving future expansion. Progress: Reached 82% completion against the 3-year cumulative investment plan of ¥3.78 billion. FY2024 FY2025 FY2026 First Half FY2024–FY202
Slide 25: Medium- to Long-Term Business Plan 2030: Group Targets and KPIs
Medium- to Long-Term Business Plan 2030: Group Targets and KPIs Operating Profit per Net Sales Operating Profit Net Sales per Employee Employee ¥50.0 Billion ¥4.5 Billion ¥17.60 Million ¥1.60 Million FY2030 or Higher or Higher or Higher or Higher Business and FY2025 Result: ¥37.0 billion FY2025 Resu
Slide 26: ⚫ This material is intended to provide information on our company's business performance for
⚫ This material is intended to provide information on our company's business performance for the first half of the fiscal year ending December 31, 2026, and to promote a deeper understanding of our company. It is not intended as a solicitation to invest in any securities issued by our company. ⚫ Thi