Slide 1: Financial Results for 9M FY06/26
Financial Results for 9M FY06/26 (July 1 to March 31, 2026) [Non-Consolidated] Intelligent Wave Inc. May 15, 2026 © INTELLIGENT WAVE INC. All rights reserved.
Slide 2: Financial Results for Q3 9M FY06/26 / Forecast Revision and Future Outlook
Financial Results for Q3 9M FY06/26 Full-Year Forecast Revision and Future Outlook Reference © INTELLIGENT WAVE INC. All rights reserved. 2
Slide 3: Overview
Overview ◼ Sales remained steady; profit declined amid quality-related measures and product mix changes in the security domain ◼ Orders decreased overall, reflecting multi-year contract projects recorded in the previous term; system development orders increased 9M FY06/25 9M FY06/26 YoY change (Mill
Slide 4: Sales by Business Domain
Sales by Business Domain ◼ Payment domain sales increased, driven by growth in the core FEP and fraud detection ◼ Data communications and analysis infrastructure domain sales increased, driven by system development projects for securities firms YoY change (Millions of yen) 9M FY06/25 9M FY06/26 Amou
Slide 5: Sales by Category
Sales by Category ◼ System development sales decreased YoY, but secured a certain level against the plan ◼ Cloud services sales increased, driven by user growth and the addition of new features for existing users ◼ Third-party products and services sales increased, driven by an FEP system renewal pr
Slide 6: Operating Profit: Analysis of YoY Change
Operating Profit: Analysis of YoY Change ◼ Higher sales had a positive impact; the overall gross profit margin declined amid quality-related measures for a specific cloud service client and changes in the product mix in the security domain (Millions of yen) +300 (349) Impact of quality- (34) (83) Yo
Slide 7: Operating Profit: Annual and Quarterly Trends
Operating Profit: Annual and Quarterly Trends (Millions of yen) ■… Operating profit Gross profit SG＆A expenses Operating profit ●… Operating margin Gross profit margin SG&A expense ratio Operating margin 600 25.0% 1,496 1,600 32.9% 33.6% 32.6% 32.6% 1,445 30.2% 27.6% 31.3% 27.9% 30.0% 28.2% 1,361 24
Slide 8: Orders Received by Category
Orders Received by Category ◼ System development orders increased, driven by multiple system renewal projects from major clients ◼ Orders for recurring revenue, multi-year contract projects declined, including cloud services, security, and infrastructure operation services ◼ Multiple cloud services
Slide 9: Order Backlog by Category
Order Backlog by Category ◼ System development order backlog increased, driven by system renewal projects from major clients ◼ Order backlog for recurring revenue projects decreased, including cloud services, security, and infrastructure operation services (Millions of yen) ■…System Development ■…Ma
Slide 10: Full-Year Forecast Revision and Future Outlook
Financial Results for 9M FY06/26 Full-Year Forecast Revision and & Future Future Strategy Outlook Reference © INTELLIGENT WAVE INC. All rights reserved. 10
Slide 11: Revision to Full-Year Earnings Forecasts
Revision to Full-Year Earnings Forecasts ◼ Full-year earnings forecasts revised downward, reflecting prolonged quality-related responses for a specific client project ◼ IT investment by credit card companies and payment service providers remained steady in the payment market ◼ Company-wide issues re
Slide 12: Future Outlook and Key Initiatives
Future Outlook and Key Initiatives ◼ Current situation and key challenges outlined below ◼ Continue initiatives under the Medium-Term Management Plan; strengthen the business foundation and improve profitability Current Situation and Key Challenges Medium-Term Management Plan Initiatives (1) Address
Slide 13: Reference
Financial Results for 9M FY06/26 Full-Year Forecast Revision and Future Outlook Reference © INTELLIGENT WAVE INC. All rights reserved. 13
Slide 14: Manufacturing Costs
Manufacturing Costs (Millions of yen) FY06/25 FY06/26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Material costs 17 5 6 11 15 4 4 Labor costs 770 747 751 742 798 795 804 Overhead costs 819 814 790 1,003 908 945 954 Subcontract processing costs 1,064 1,032 969 901 854 871 914 Total manufacturing costs for 2,672 2,600 2,
Slide 15: 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 Recruiting and training 18 12 12 40 21 11 21 Equipment and maintenance, etc. 108 112 110 115 115 116 114 Advertising 13 14 26 12 5 11 7 Other 127 131 146 129 146 138 114 Total 675 699 713 73
Slide 16: Cash Flows
Cash Flows (Millions of yen) (99) (1,337) (968) Income before taxes +1,374 D&A +1,263 A/R increase (1,069) Inventories increase (126) A/P increase +91 Accrued consumption Dividends paid (966) (387) taxes decrease 6,422 Income taxes paid (1,251) Payments into time deposits Purchase of intangible asse
Slide 17: Historical Performance
Historical Performance 17000 ■ Net sales ■ Operating profit (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 18: Revenue Type: Recurring and Spot
Revenue Type: Recurring and Spot ■ Net Sales ■ Order Backlog …Recurring …Spot …Recurring …Spot (Millions of yen) (Millions of yen) 14,000 25,000 12,497 21,795 21,187 12,000 11,530 1,896 20,311 20,238 10,751 20,000 1,588 19,024 18,636 1,115 18,790 2,310 10,000 4,577 16,584 2,235 2,005 2,895 4,829 2,1
Slide 19: Medium-Term Management Plan (2025-2027)
Medium-Term Management Plan(2025–2027) We will aim to diversify our business and establish a foundation for sustainable growth, looking ahead to the 2030s. We will also develop our business in various fields, particularly in the payment, security, and technology domains, to bring value to people's l
Slide 20: Basic Policies
Basic Policies To prepare for the market environment of the 2030s, we will focus on three key areas of transformation: "business," "technology," and "human resources," to continue developing products and services that create new levels of reliability. 01 Transformation of Business ①Maximize the valu
Slide 21: Numerical Targets
Numerical Targets We aim to achieve sales of ¥19 billion, operating profit of ¥2.85 billion, and ROE of at least 17.0% by the fiscal year ending June 30, 2027. By expanding our business areas and improving profitability in each domain, we aim to achieve sales of around ¥30 billion and an operating m
Slide 22: Company Overview
Company Overview Established December 27, 1984 (As of December 31,2025) Location Kayabacho Tower, 1-21-2 Shinkawa, Chuo-ku, Tokyo No. of employees 513 Parent company Dai Nippon Printing Co., Ltd. (50.73%*) Share capital ¥843,750 thousand Issued shares 26,340,000 shares No. of shareholders 11,917 Sha
Slide 23: 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