Slide 1: Financial Results for 2Q of the Fiscal Year Ending November 30, 2025
ELEMENTS, Inc. | July 2025 Financial Results for 2Q of the Fiscal Year Ending November 30, 2025 (FY2025/11) This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original
Slide 2: Financial Highlights
Highlights ⚫ Driven by the strong performance of LIQUID eKYC and sales contributions from the digital ID wallet for local governments, net sales reached Financial 974MM JPY (+26% YoY), which was the highest quarterly number. Highlights ⚫ EBITDA landed at 148MM JPY and operating income was 31MM JPY,
Slide 3: Update on Full Year Earnings Forecast
Update on Full Year Earnings Forecast ⚫ The net sales forecast range was revised upward based on recent performance progress. ⚫ While EBITDA remains profitable, continuing from the previous period, an operating loss is expected due to the inclusion of Polarify's earnings and PMI-related expenses. ⚫
Slide 4: Contents
Contents FY2025/11 2Q Financial Highlights Appendix
Slide 5: 2Q Consolidated Financial Highlights
FY25/11 2Q Financial Highlights 2Q Consolidated Financial Highlights （MM JPY） Sales reached 974MM JPY(+26% YoY), driven by the strong FY24/11 FY25/11 2Q 2Q YoY performance of LIQUID eKYC and the delivery of digital ID wallets for local governments. Net Sales 776 974 198 +26% *Polarify Inc.'s revenue
Slide 6: 2Q Consolidated Financial Highlights (Cumulative)
FY25/11 2Q Financial Highlights 2Q Consolidated Financial Highlights（Cumulative） （MM JPY） FY24/11 FY25/11 Sales reached 1,690MM JPY,(+40% YoY), driven by the 2Q 2Q YoY (Cumulative) (Cumulative) strong performance of LIQUID eKYC. We achieved strong revenue growth before revenue Net Sales 1,208 1,690
Slide 7: Net Sales
FY25/11 2Q Financial Highlights Net Sales （MM JPY） YoY +26% 1,200 Sales reached 974MM JPY, up +26% YoY, 1,000 974 driven by the strong performance of LIQUID eKYC and the delivery of digital ID wallets for 800 776 local governments. 600 707 *Polarify Inc.'s revenue will be consolidated starting from
Slide 8: Key Topics (1) Number of Identification cases and implementing businesses
Key Topics(1) Number of Identification cases and implementing businesses ⚫ The combined quarterly number of identification cases for LIQUID and Polarify exceeded 10 million. ⚫ As of the end of May 2025, the total number of group-wide contracts expanded by 24 QoQ to 592. Quarterly personal identifica
Slide 9: Key Topics (2) Outline of high-value-added solutions
Key Topics(2) Outline of high-value-added solutions ●We will provide solutions that ensure overwhelming convenience and enhanced safety for our expanded customer base. - Strengthening document forgery resistance and minimizing attrition rates in line with the transition to IC reading methods for per
Slide 10: Key Topics (3) Expansion of usage purposes and situations
Key Topics(3) Expansion of usage purposes and situations ⚫ When the service was launched, main usage was initial identity verifications online services, but it is now being used for various purposes such as change of address and for offline account openings. ⚫ Also, the number of cases of introducti
Slide 11: Key Topics (4) Expansion of usage scenes and high-value-added solutions
Key Topics(4) Expansion of usage scenes and high-value-added solutions ⚫ The scenes where eKYC is required for identity verification has been expanding. ⚫ The number of customers in non-regulatory businesses has expanded approximately 7.5 times to over 100 companies in 3.5 years © ELEMENTS, Inc. All
Slide 12: Key Topics (5) Multi factor authentication solution
Key Topics(5) Multi factor authentication solution ⚫ We are strengthening the provision of our "Multi-Factor Authentication Solution" using FIDO authentication (passkeys) as a countermeasure against account takeovers, which have recently become a hot topic, particularly affecting major securities br
Slide 13: Gross Profit
FY25/11 2Q Financial Highlights Gross Profit YoY （MM JPY） Gross Profit +11% Gross Margin 760 100.0% Gross profit was 750MM JPY (+11% YoY). 90.0% 740 Although the gross profit margin decreased due to 87.0% 80.0% the impact of digital ID wallet projects for local 720 86.7% 70.0% governments, it remain
Slide 14: SG&A Expenses
FY25/11 2Q Financial Highlights （MM JPY） SG&A Expenses R&D G&A S&M Polarify-related impact Excluding Polarify-related impact 646MM JPY 800 719 Total SG&A Expenses for 2Q amounted to 719MM 700 637 648 73 JPY, which include 73MM JPY of Polarify-related 544 578 expenses(*). 600 127 114 118 116 114 500
Slide 15: EBITDA
FY25/11 2Q Financial Highlights EBITDA （MM JPY） EBITDA Polarify-related impact Excluding Polarify-related 250 Impact YoY EBITDA was 148MM JPY, a decrease of 58MM JPY YoY. 200 +15 MM JPY 73 Excluding the Polarify impact, the figure was 150 221MM JPY, an increase of 15MM JPY YoY, which is a higher lev
Slide 16: Operating Profit
FY25/11 2Q Financial Highlights Operating Profit （MM JPY） Excluding Operating profit was 30MM JPY, an improvement Polarify-related Impact YoY 150 QoQ. ▲27 Excluding the Polarify factor, the amount 103MM 130 MM JPY 100 JPY. 73 50 Cumulative operating income for the first half 30 was 17MM JPY, securin
Slide 17: Consolidated Balance Sheet
FY25/11 2Q Financial Highlights （MM JPY） February 28, May 31, Consolidated Balance Sheet 2025 2025 Current Assets 3,495 3,413 ❶ cash and deposits 2,939 2,057 accounts receivable 392 1,097 Non-current Assets 1,858 2,564 The balance sheet of Polarify has been consolidated Property, plant and equipment
Slide 18: About Liquidity on Hand After Refinancing
About Liquidity on Hand After Refinancing ⚫ In July 2025, borrowed 1,255MM JPY from three financial institutions as part of the acquisition funds for Polarify Inc. Concurrently, repaid the overdraft. ⚫ Liquidity on hand after this refinancing is secured at 3.3B JPY. Refinancing Liquidity unused over
Slide 19: Impairment of Goodwill and Customer-related intangible assets of AD Medica
Impairment of Goodwill and Customer-related intangible assets of AD Medica ⚫ Regarding AD Medica, we determined that achieving the initially expected future profits would be difficult. As a result we recorded a total impairment loss of 659MM JPY on "goodwill" and "customer-related intangible assets"
Slide 20: Mid-Term Financial Targets
Mid-Term Financial Targets ⚫ As of the fiscal year ending November 2027, financial targets have been set as follows: Sales of 6–6.5BN JPY, operating profit margin of 15%, and EBITDA margin of 25%. ⚫ The net sales targets 30%+ CAGR for the five years after IPO （ MM JPY ） Sales CAGR: 30%+ Balancing Fu
Slide 21: Contents
Contents FY2025/11 2Q Financial Highlights Appendix
Slide 22: Corporate Profile and History
Corporate Profile and History Corporate Profile History Company ELEMENTS, Inc. ◼ LIQUID eKYC has top share of eKYC domestic name market (FY 2019-FY 2024 (forecast)) (1) Present 2019 ◼ Launch of ELEMENTS CLOUD | ◼ Acquisition of Shares of AD medica, Inc to Make Acceleration of 2025 Established Decemb
Slide 23: Notes regarding the handling of this document
Notes regarding the handling of this document ◼ This document has been prepared for information purposes only. ◼ This document does not constitute an offer to sell or the solicitation of an offer to buy any securities in Japan, the United States or elsewhere. ◼ This document contains forward-looking