Slide 1: Presentation Materials for the Earnings Briefing for FY Ended March 31, 2026
Presentation Materials for the Earnings Briefing for the Fiscal Year Ended March 31, 2026 May 8, 2026 MKSystem Corporation (stock code: 3910) 1
Slide 2: Table of contents
Table of contents Contents Group Overview and 01 Business Activities 02 Consolidated Financial Results for FY3/26 03 Shalom Business 04 CuBe Business 05 Key Highlights 06 Growth Strategies: AI Shalom 07 Consolidated Earnings Forecast 08 Security Basic Policy 09 Service Overview 2
Slide 3: Group Overview and Business Activities
Group Overview and Business Activities 3
Slide 4: Company profile
■ Group Overview and Business Activities Company profile ● Company name: MKSystem Corporation MISSION VISION Management Philosophy Management Policies ● Representative: Noboru Miyake Provide comprehensive services in We provide cloud solutions that the field of the personnel and labor benefit you ma
Slide 5: Business model: Segments and target
■ Group Overview and Business Activities Business model: Segments and target Shalom Business CuBe Business Contracted development type semi- ASP service System product sale Cloud service customized services Monthly system service fee and initial setup fee, etc. Sales of working time recording system
Slide 6: Shalom Business: Steady revenue business that builds a solid profit base
■ Group Overview and Business Activities Shalom Business: Steady revenue business that builds a solid profit base The Shalom service is provided for a monthly fee. The business generates stable monthly revenue and has a structure that enables new customers to immediately become part of the base for
Slide 7: Consolidated Financial Results for FY3/26
Consolidated Financial Results for FY3/26 Financial results for the fiscal year ended March 2026 7
Slide 8: Financial summary (consolidated)
■ Consolidated Financial Results for FY3/26 Financial summary (consolidated) Fiscal year profitability Profit attributable to owners of parent was 256 million yen due to a fiscal year profit. Although sales decreased 1.0% because of one-time extra demand in FY3/25 in the CuBe business, earnings at a
Slide 9: Balance sheet (consolidated)
■ Consolidated Financial Results for FY3/26 Balance sheet (consolidated) Financial soundness Net assets increased 235 million yen YoY due to a fiscal year profit. improved due to profitability and debt Progress with improving financial soundness as non-current liabilities decreased 309 million yen d
Slide 10: Indicators (consolidated)
■ Consolidated Financial Results for FY3/26 Indicators (consolidated) ROE: A big improvement from -16.1% to 32.7% because of profit attributable to owners of parent Big improvement PBR: Decreased from 2.50 in FY3/25 to 1.73 because of the increase in net assets per share caused by the return to in e
Slide 11: Cash flows (consolidated)
■ Consolidated Financial Results for FY3/26 Cash flows (consolidated) Operating activities: Positive 711 million yen; profitability is improving Stable free cash flows (Cash and cash equivalents Investing activities: Negative 181 million yen; down temporarily due to the FY3/25 release of Shalom FORE
Slide 12: Net sales (consolidated)
■ Consolidated Financial Results for FY3/26 Net sales (consolidated) No change Consolidated sales decreased 1.0% YoY to 3,256 million yen. in sales (Down 1.0% YoY) Sales were basically unchanged, down slightly following the one-time extra demand in the CuBe business in FY3/25. 1,100 1,036 1,000 974
Slide 13: Sales composition for business segments (consolidated)
■ Consolidated Financial Results for FY3/26 Sales composition for business segments (consolidated) Two major The Shalom Business is about 75% of total sales, driving the growth of the entire MKSystem Group. businesses Accounting for more than 25% of sales, the Cube Business also contributes to the d
Slide 14: Gross profit (consolidated)
■ Consolidated Financial Results for FY3/26 Gross profit (consolidated) Increase in gross profit Consolidated gross profit increased 16.6% YoY to 1,472 million yen. (Up 16.6% YoY) The main contributor was measures to lower the cost of sales, primarily IDC expenses. 600 Bar chart: Gross profit Line c
Slide 15: Operating profit (consolidated)
■ Consolidated Financial Results for FY3/26 Operating profit (consolidated) Positive operating Became profitable with operating profit of 247 million yen, which was higher than the forecast. A strong performance compared with prior years. A reexamination of all expense items raised earnings as the p
Slide 16: YoY changes in operating profit (consolidated)
■ Consolidated Financial Results for FY3/26 YoY changes in operating profit (consolidated) A big improvement from a 23 million yen loss to a 247 million yen operating profit as progress with Improvement in strengthening the profit structure continues. Sales decrease of 34 million yen and personnel e
Slide 17: Number of employees (consolidated)
■ Consolidated Financial Results for FY3/26 Number of employees (consolidated) Recruitment is continuing to strengthen development and support systems. Making progress with building a framework capable of supporting future growth. Number of employees Composition of employees 140 135 135 130 118 BNC
Slide 18: Personnel and outsourcing expenses (consolidated)
■ Consolidated Financial Results for FY3/26 Personnel and outsourcing expenses (consolidated) The April 2025 salary increase raised personnel expenses, resulting in a 3.6% increase to 1,000 million yen in FY3/26. Outsourcing expenses were down 50.4% YoY to 109 million yen because the stability of Sh
Slide 19: IDC and software amortization expenses (consolidated)
■ Consolidated Financial Results for FY3/26 IDC and software amortization expenses (consolidated) IDC expenses decreased 13.3% YoY to 526 million yen due to the stable operation of Shalom FOREVER, contributing to reduced costs. Software amortization expenses remained generally stable, decreasing 4.9
Slide 20: The Shalom Business
The Shalom Business 20
Slide 21: Use of the Shalom series
■■社労夢事業 Shalom Business 導入実績 Use of the Shalom series ● Introductions*1 ● IDs issued*1 ● Registered companies*1 and *2 3,215 14,253 800,000 companies companies IDs ● ARPU*3 ● ARPA*4 53,800 12,100 yen yen *1: Number of introductions, IDs issued, and companies registered in the Shalom series as of the
Slide 22: Target markets and strategies
■ Shalom Business Target markets and strategies Labor and social security attorney market The number of labor and social security attorney offices in Japan has increased by about four times since FY3/15, rising from 752 to Corporate End-Mar 2026 3,103 at the end of March 2025. 3,103 This market is b
Slide 23: Net sales
■ Shalom Business Net sales Small sales increase Steady revenue increased 2.0% YoY to 2,264 million yen (Up 2.0% YoY) Although the sales increase is small, steady revenue from monthly fees is climbing steadily. *1 700 Lower bar: Steady revenue Upper bar: Other sales Steady revenue as pct. of net sal
Slide 24: Operating profit
■ Shalom Business Operating profit Fiscal year profit Operating profit improved from a loss to 220 million yen. (Operating loss in FY3/25) Following the return to profitability in 4Q FY3/25, operating profit has been positive in every quarter. 100 73 73 79 60 51 50 50 30 21 15 8 0 -4 -22 -17 -50 -39
Slide 25: CuBe Business
CuBe Business 25
Slide 26: Net sales and operating profit
■ CuBe Business Net sales and operating profit Consistent profit Sales totaled 847 million yen, a small decrease following the sales contribution in FY3/25 from one-time extra mainly in 2H demand. Fiscal year operating profit of 17 million yen despite a loss in the 1Q. Sales are highest in the 4Q. N
Slide 27: Key Highlights
Key Highlights 27
Slide 28: Shalom security & AI support office
■ Key Highlights Shalom security & AI support office Shalom Security & AI Support Office opened on Thursday, March 5, 2026 Located on the second floor of the Umeda Center Building in central Osaka, which also houses MKSystem’s head office, this office was opened to provide a more powerful security i
Slide 29: Consultant Summit 2026 on March 11, 2026
■ Key Highlights Consultant Summit 2026 on March 11, 2026 The largest-ever summit with record-high attendance of more than 300 and presentations by 14 people representing many fields The theme of the fourth Labor Consultant Summit was how support by labor and social security attorneys using generati
Slide 30: Consultant Summit 2026 on March 11, 2026
■ Key Highlights Consultant Summit 2026 on March 11, 2026 High satisfaction with presentations, especially about the latest information of AI and its practical use Feedback from summit participants ■ Received latest AI and DX information I learned about the latest advances in AI and how technology i
Slide 31: Growth Strategies: AI Shalom
Growth Strategies: AI Shalom 31
Slide 32: Business climate changes and AI Shalom investment
■ Growth Strategies Development of AI Shalom MKSYSTEM Business climate changes and AI Shalom investment 1. Changes in the business climate and issues for labor and social security attorneys 2. Problem solving and development of AI Shalom We have already surpassed the point where Structural problems
Slide 33: Additional benefits for clients' businesses
■ Growth Strategies Development of AI Shalom MKSYSTEM Additional benefits for clients’ businesses Raising the use of AI in stages makes all client business operations more advanced and convenient Four changes due to AI Shalom The goal Larger number of cases Consistently high quality Using AI to perf
Slide 34: AI Shalom development roadmap (concept)
■ 成長戦略: AI社労夢の開発 ■ Growth Strategies Development of AI Shalom AI社労夢開発の全体像とロードマップ AI Shalom development roadmap (concept) AI extends from procedures to entire business operations The aim is expansion in steps to entire business operations rather than stand-along functions STEP 1 STEP 2 STEP 3 STEP 4
Slide 35: Constant growth due to AI Shalom
■ Growth Strategies Development of AI Shalom Constant growth due to AI Shalom A powerful base for earnings and higher profitability: Larger customer base, more revenue per customer, stable/long-term earnings Larger customer base More revenue per customer Stable/long-term earnings [More customer segm
Slide 36: Consolidated Earnings Forecast
Consolidated Earnings Forecast 36
Slide 37: Financial summary (consolidated) forecast for FY3/27
■■2026年3月期 連結業績予想 Consolidated Earnings Forecast for FY3/27 業績のサマリー（グループ） Financial summary (consolidated) Forecast sales growth backed by steady increase in ASP sales and the launch of AI Shalom. Forecast higher gross and operating profit due to the outlook for sales growth and planned measures to
Slide 38: Dividend forecast for FY3/27
■ Consolidated Earnings Forecast for FY3/27 Dividend forecast for FY3/27 Our basic policy is to pay dividends while placing emphasis on the consistent distribution of earnings to shareholders. In FY3/25, the dividend was reduced because of results of operations in that year. The dividend for FY3/26
Slide 39: Security Basic Policy
Security Basic Policy 39
Slide 40: Basic policy for upgrading security and external certifications
■ Security Basic Policy Basic policy for upgrading security and external certifications CIS Control Version 8 Cloud security certification The basic policy for security was established by using the CIS Controls (V8) of the ISO/IEC 27017: 2015 certification U.S. Center for Internet Security as the ba
Slide 41: Service Overview
Service Overview 41
Slide 42: Our mainstay service (Shalom)
■■サービス概要 Service Overview 主力サービスのご紹介_社労夢 Our mainstay service (Shalom) A system for labor and social security attorney offices For number one and two tasks performed solely by social security attorney offices Tasks performed by labor and social security attorneys No. 1 tasks No. 2 tasks No. 3 tasks
Slide 43: Our mainstay service (Shalom Company Edition)
■■サービス概要 Service Overview 主力サービスのご紹介_社労夢Company Our mainstay service (Shalom Company Edition) Edition ① A version of Shalom for companies that is fully compatible with making e-applications mandatory at large companies Allows performing internally all application procedures for unemployment and soci
Slide 44: Our mainstay service (MYNABOX)
■■サービス概要 Service Overview 主力サービスのご紹介_MYNABOX Our mainstay service (MYNABOX) A personal ID number management system that can be used with Shalom Links with a variety of procedures and a use history and other capabilities Tax office MYNABOX CL Flowchart MYNABOX Flowchart (MYNABOX for Clients) Labor an
Slide 45: Our mainstay service (Net de Komon)
■■サービス概要 Service Overview 主力サービスのご紹介_ネットde顧問 Our mainstay service (Net de Komon) A web application for use with Shalom Use with master data recorded in Shalom One step payroll calculation by Can be accessed anywhere linking with work attendance and anytime (Smartphone Concerned about erroneous Can p
Slide 46: Our mainstay service (DirectHR)
■■サービス概要 Service Overview 主力サービスのご紹介_Direct Our mainstay service (DirectHR) HR Centralized management using the cloud for all applications submitted by employees during their entire time at the company, including for events like childbirth. Smartphones and PCs can be used for applications. Handles e
Slide 47: Our mainstay service (eNEN)
■■サービス概要 Service Overview 主力サービスのご紹介_eNEN Our mainstay service (eNEN) Fully supporting year-end tax adjustment operations by reducing tax filling input and implementing progress management function 1. It makes the operation easy to understand! Enhanced control with authority settings The screen guid
Slide 48: Our mainstay service (Cloud Pocket)
■■サービス概要 Service Overview 主力サービスのご紹介_Cloud Our mainstay service (Cloud Pocket) Pocket For the safe and easy distribution and receipt of official documents. Greatly simplifies the distribution of job separation forms, benefit receipt qualification confirmation notices, workplace accident forms and ot
Slide 49: Our mainstay service (CuBe Business semi-customized services)
■■サービス概要 Service Overview Our mainstay service (Contracted development type semi-customized services / CuBe Business) Business process design + semi-customized system development Accurate and flexible like the one for custom-built houses Used by half a million major company employees. Your IT partne
Slide 50: Our mainstay service (GooooN / CuBe Business)
■■サービス概要 Service Overview Our mainstay service (GooooN / CuBe Business) GooooN eliminates all unnecessary functions to focus solely on functions needed for the growth of employees. Support for HR development at small, midsize and larger companies by providing quality services that are quick, inexpen
Slide 51: Forward-looking statements and contact
The plans, estimates and other forward-looking statements contained in this material are forecasts based on information available at the time this material was prepared, and these statements include risk and uncertainty. Actual performance may differ from these statements due to changes in business