Consolidated Financial Results for the nine months ended March 31, 2026(Japanese GAAP)

1. ‌Consolidated financial results for the nine months ended March 31, 2026 (From July 1, 2025 to March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes)

      	Net sales		EBITDA*		Operating profit		Ordinary profit		Net income attributable to owners of parent
      Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	22,828	9.0	4,396	10.0	4,072	12.3	3,975	9.8	2,542	12.0
      March 31, 2025	20,938	17.6	3,996	15.2	3,625	17.9	3,620	17.1	2,270	15.0

      (Note) Comprehensive income: Nine months ended March 31, 2026 2,585 million yen (23.2%)

      Nine months ended March 31, 2025 2,099 million yen (4.1%)

      	Earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      March 31, 2026	70.16	-
      March 31, 2025	62.24	-

      *EBITDA is operating profit + depreciation + amortization of goodwill

   2. ‌Consolidated financial position

      	Total assets	Net assets	Equity ratio
      As of	Millions of yen	Millions of yen	%
      March 31, 2026	21,160	14,361	67.9
      June 30, 2025	24,373	15,597	63.9

      (Reference) Shareholders' equity As of March 31, 2026 14,361 million yen

      As of June 30, 2025 15,582 million yen

2. Dividends

   	Dividend per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   FY ended June 30, 2025	-	0.00	-	25.00	25.00
   FY ending June 30, 2026	-	0.00	-
   FY ending June 30, 2026 (forecast)				32.00	32.00

   Change of dividend forecast from the most recent dividend forecast : No

3. Consolidated earnings forecast for the fiscal year ending June 30, 2026 (July 1, 2025 to June 30, 2026)

(Percentages indicate year-on-year changes)

Correction of earnings forecast from the most recent financial forecast : No

‌Notes

1. ‌Changes in accounting policies, accounting estimates and restatement

   1) Changes in accounting policies due to revision of accounting standards	:	No
   2) Changes in accounting policies due to reasons other than item 1) above	:	No
   3) Changes in accounting estimates	:	No
   4) Restatement	:	No

2. Number of issued shares (common stock)

Accompanying Materials - Table of Contents

1. Overview of the operating results, etc. 2

   1. Operating results for the current consolidated cumulative quarter 2

   2. Financial position for the current consolidated cumulative quarter 8

   3. Explanation on forward-looking statements such as consolidated earnings forecasts 10

2. Quarterly consolidated financial statements and notes 11

   1. Quarterly consolidated balance sheet 11

   2. Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income 13

   3. Quarterly consolidated statement of cash flows 15

   4. Notes to quarterly consolidated financial statements 17

(Going concern assumption) 17

(Significant changes in the amount of shareholders' equity) 17

(Additional information) 17

(Segment information) 18

(Revenue recognition) 19

(Subsequent events) 19

1. Overview of the operating results, etc.

   1. ‌Operating results for the current consolidated cumulative quarter

      Consolidated financial results for the third quarter cumulative period (hereinafter referred to as the "third quarter") are as follows.

      (Millions of yen, rounded down to the nearest unit)
      	Nine months ended	Nine months ended	Year-on-year change
      	March 31, 2025	March 31, 2026	Amount	%
      Net sales	20,938	22,828	1,889	9.0
      Operating profit	3,625	4,072	446	12.3
      Ordinary profit	3,620	3,975	354	9.8
      Net income attributable to owners of parent	2,270	2,542	272	12.0

      Regarding net sales, investment demand among our Japanese corporate clients for maintaining and strengthening competitiveness through "upgrading corporate management and business activities using data and digital technologies"-a medium- to long-term trend-has moderated somewhat following the completion of basic IT infrastructure upgrades but remains solid overall. With the Consolidated Financial Disclosure Business and Digital Transformation Promotion Business continuing to achieve strong sales growth, net sales increased to ¥22,828 million (9.0% increase year-on-year).

      Regarding profits, despite increases in personnel, hiring and IT expenses in line with business expansion, office expenses associated with office relocation and expansion, and investment expenses to achieve future growth centered on strengthening the software business, profits increased due to improved profit margins from growth in the software business and a decrease in outsourced processing expenses to supplement inhouse resources. Operating profit was ¥4,072 million (12.3% increase year-on-year), ordinary profit was ¥3,975 million (9.8% increase year-on-year), and net income attributable to owners of parent was ¥2,542 million (12.0% increase year-on-year).

      Effective from the nine months of the current fiscal year, the Company has reviewed its business segment classification method and has changed the classification of its operating segments so that "Consolidated Financial Disclosure Business," "Digital Transformation Promotion Business," and "Management Solutions Business" consist of one company per segment, and other small companies are categorized as "Other." In accordance with this change, results for the same period of the previous fiscal year for each segment have been restated to reflect the amended segment categories.

      The status of each segment is as follows.

      1. Net sales

         (Millions of yen, rounded down to the nearest unit)
         	Nine months ended	Nine months ended	Year-on-year change
         	March 31, 2025	March 31, 2026	Amount	%
         Consolidated Financial Disclosure Business	6,141	7,141	1,000	16.3
         Digital Transformation Promotion Business	7,729	8,457	727	9.4
         Management Solutions Business	7,016	7,139	122	1.8
         Other	315	365	49	15.8
         Elimination of inter-segment transactions	(263)	(275)	(11)	-
         Consolidated net sales	20,938	22,828	1,889	9.0

      2. Operating profit

      (Millions of yen, rounded down to the nearest unit)
      	Nine months ended	Nine months ended	Year-on-year change
      	March 31, 2025	March 31, 2026	Amount	%
      Consolidated Financial Disclosure Business	1,663	2,305	641	38.6
      Digital Transformation Promotion Business	1,312	1,580	267	20.4
      Management Solutions Business	1,316	947	(369)	(28.1)
      Other	69	57	(11)	(17.1)
      Corporate expenses and elimination of inter-segment transactions	(736)	(818)	(81)	-
      Consolidated operating profit	3,625	4,072	446	12.3

      In the Consolidated Financial Disclosure Business, net sales increased to ¥7,141 million (16.3% increase year-on-year) as in addition to a transfer of some maintenance service transactions from the Management Solutions Business starting in this consolidated fiscal year, the outsourcing business continued to maintain a high growth rate. In terms of profitability, operating profit increased to ¥2,305 million (38.6% increase year-on-year), significantly outpacing net sales growth due to an improved profit margin resulting from a decrease in hiring expenses and the effects of improved productivity due to the promotion of cloud migration in the software business, despite factors that increased costs, such as increased personnel expenses and office expenses due to an increase in the number of employees and the expansion of office space.

      In the Digital Transformation Promotion Business, while demand has moderated somewhat as client needs have become more sophisticated, demand for leveraging data in management and business decision-making remains solid. Sales growth was driven by an increase in projects centered on 'cloud and data platform development', resulting in net sales of ¥8,457 million (9.4% increase year-on-year). Although personnel expenses rose due to headcount increases to support sales growth, and temporary and ongoing office expenses increased due to an office relocation, outsourcing costs to supplement internal resources declined. Furthermore, there was a rebound effect from the lower profitability caused by the cancellation of a large project in the same period last year, leading to operating profit of ¥1,580 million (20.4% increase year-on-year).

      In the Management Solutions Business, net sales increased slightly to ¥7,139 million (1.8% increase year-on-year), despite an increase in software business sales, due to the transfer of some maintenance service transactions to the Consolidated Financial Disclosure Business from this consolidated current fiscal year. Operating profit was ¥947 million (28.1% decrease year-on-year) due to the above-mentioned factors that kept the sales growth at a low level, as well as an increase in personnel expenses to secure personnel for future growth and in research and development expenses and marketing expenses and outsourcing expenses to strengthen the software business.

      The number of employees on a consolidated basis was 1,779 at the third quarter-end, an increase of 72 from the end of the previous consolidated fiscal year.

      
      
      

      Orders and net sales by segment in the third quarter were as follows.

      1) Orders (Millions of yen, rounded down to the nearest

      unit)

      	Nine months ended		Nine months ended		Year-on-year change
      	March 31, 2025		March 31, 2026		Amount
      	Orders received	Orders backlog	Orders received	Orders backlog	Orders received	Orders backlog
      Consolidated Financial Disclosure Business	6,410	4,783	7,724	5,573	1,313	789
      Digital Transformation Promotion Business	7,358	1,698	8,534	2,089	1,176	390
      Management Solutions Business	6,347	3,332	6,776	2,808	428	(523)
      Other	278	134	315	149	36	14
      Elimination of inter-segment transactions	(312)	(2,023)	(344)	(945)	(31)	1,077
      Total	20,082	7,926	23,005	9,674	2,923	1,748

      7462) Net sales (Millions of yen, rounded down to the nearest unit)

      	Nine months ended	Nine months ended	Year-on-year change
      	March 31, 2025	March 31, 2026	Amount	%
      Consolidated Financial Disclosure Business	6,141	7,141	1,000	16.3
      Digital Transformation Promotion Business	7,729	8,457	727	9.4
      Management Solutions Business	7,016	7,139	122	1.8
      Other	315	365	49	15.8
      Elimination of inter-segment transactions	(263)	(275)	(11)	-
      Total	20,938	22,828	1,889	9.0

      Quarterly trends in net sales and operating profit are as follows.

      Net sales and operating profit for the last four quarters (Millions of yen, rounded down to the nearest unit)

      	Fiscal year ended June 30, 2025	Fiscal year ending June 30, 2026
      	Fourth quarter	First quarter	Second quarter	Third quarter
      Net sales	7,289	7,515	7,686	7,625
      Operating profit	978	1,341	1,404	1,326
      Operating profit margin (%)	13.4	17.8	18.3	17.4

      
      
      

   2. ‌Financial position for the current consolidated cumulative quarter

      1. Status of assets, liabilities and net assets

         Total assets at the third quarter-end were ¥21,160 million (¥3,212 million decrease from the end of the previous consolidated fiscal year). This was mainly due to a decrease of ¥4,043 million in cash and deposits, an increase of ¥268 million in notes and accounts receivable - trade and contract assets, an increase of ¥101 million in investment securities, and an increase of ¥409 million in shares of subsidiaries and affiliates.

         On the other hand, total liabilities amounted to ¥6,798 million (¥1,976 million decrease from the end of the previous consolidated fiscal year). This was mainly due to a decrease of ¥259 million in income taxes payable, a decrease of ¥777 million in contract liabilities, and a decrease of ¥577 million in provision for bonuses.

         Total net assets amounted to ¥14,361 million (¥1,235 million decrease from the end of the previous consolidated fiscal year), mainly due to net income attributable to owners of parent of ¥2,542 million for the quarterly period, purchase of treasury shares of

         ¥3,001 million and payment of dividends of surplus of ¥930 million. As a result, the equity ratio was 67.9% (63.9% at the end of the previous consolidated fiscal year), an improvement of 4.0 percentage points from the previous fiscal year, and the Company believes it maintains a highly stable financial balance with low interest-bearing liabilities.

      2. Cash flows

      Cash and cash equivalents ("funds") at the end of the third quarter decreased ¥3,827 million from the end of the fiscal third quarter-end to ¥11,334 million. The status of each cash flow and their factors are as follows.

      (Cash flows from operating activities)

      Funds generated from operating activities amounted to ¥1,148 million. (¥1,827 million was generated in the third quarter of the previous year).

      The main sources were profit before income taxes of ¥3,975 million and depreciation of ¥324 million. The main uses were a decrease of ¥577 million in provision for bonuses, an increase of ¥268 million in trade receivables and contract assets, a decrease of ¥777 million in contract liabilities, and ¥1,565 million in income taxes paid.

      (Cash flows from investing activities)

      Funds used in investing activities amounted to ¥990 million. (¥288 million was used in the third quarter of the previous year).

      The main expenditures were purchases of property, plant and equipment of ¥243 million and purchases of investment securities of ¥130 million, and ¥420 million for purchase of shares of subsidiaries and affiliates.

      (Cash flows from financing activities)

      Funds used in financing activities amounted to ¥4,011 million. (¥1,056 million was used in the same quarterly period of the previous year).

      The main cash outflows were ¥3,001 million for purchase of treasury shares and ¥930 million for dividends paid.

      The Group's cash flows from operating activities are usually low in the first quarter due to the payment of income taxes and performance-linked bonuses to executives and employees, and gradually increase from the second quarter onward, resulting in a positive cash flow for the full year.

      Maintenance fees in the Consolidated Financial Disclosure Business and the Management Solutions Business and commissions for the outsourcing business are paid annually in advance before the services are provided, making this a business model that requires almost no working capital. On the other hand, since outsourcing expenses and other payments for the Digital Transformation Promotion Business are incurred in advance, the demand for working capital increases as sales grow. However, by concentrating on the Group's surplus funds at the holding company, smooth inter-group financing is made possible. In addition to the Group's total cash holdings, commitment lines totaling ¥3.5 billion have been established with the Group's banking partners, so there are currently no cash flow concerns. Rather, we intend to utilize surplus funds for strategic investments going forward.

      
      
      

   3. ‌Explanation on forward-looking statements such as consolidated earnings forecasts

      In August 2023, the Company announced a medium-term management plan, a five-year plan through the fiscal year ending June 2028, with targets to be achieved in five years. In the fiscal year ending June 2026, the third year of the plan, the Group will continue to promote measures to realize the Avant Group's materiality ('Becoming a software company that contributes to enhancing corporate value'), with a focus on strengthening the software business. We expect that the growth investments necessary to realize the Group's materiality will continue to be implemented continuously and flexibly, primarily centered on the Group operating companies, and additionally, we anticipate that R&D expenses for new product development and investment costs for launching new businesses will also be incurred at the holding company level, and expect these effects to gradually emerge over the five-year period.

      Although unstable factors such as heightened geopolitical risks in the Middle East and Ukraine and concerns of an economic recession due to the impact of U.S. policy trends may affect the Group's performance, the Group believe that demand for the Group's businesses, such as an increase in the number of companies that want to utilize data for management and strengthen group governance, will continue to increase in the medium to long term.

      As a result, the Company forecasts net sales of ¥33,300 million and operating profit of ¥5,100 million in the current consolidated fiscal year.

      In accordance with the Group's existing dividend policy, we will raise the ratio of total amount of dividends to net assets (consolidated) to always exceed the average of all listed companies, while keeping in mind that we should pay stable dividends (in principle, dividends per share should not fall below the level of the previous fiscal year). For the current fiscal year, the above policy itself remains unchanged, and we forecast dividends of ¥32 per share, aiming to achieve the ratio of total amount of dividends to net assets (consolidated) of 8%, which we have set as the Group's target to achieve within the period of the medium-term management plan.

      
      
      

2. ‌Quarterly consolidated financial statements and notes

   1. ‌Quarterly consolidated balance sheet

      		(Thousands of yen)
      Previous fiscal year (June 30, 2025)		Current third quarter (March 31, 2026)
      Assets
      Current assets
      Cash and deposits	14,593,169	10,549,321
      Notes and accounts receivable - trade, and contract assets	4,228,796	4,497,312
      Securities	500,000	500,000
      Work in process	17,868	13,018
      Raw materials and supplies	55,016	61,778
      Prepaid expenses	1,163,320	1,206,452
      Other	211,287	304,360
      Allowance for doubtful accounts	(3,516)	(3,782)
      Total current assets	20,765,941	17,128,462
      Non-current assets
      Property, plant and equipment	549,165	622,059
      Intangible assets
      Software	342,474	229,721
      Other	38,028	34,484
      Total intangible assets	380,502	264,205
      Investments and other assets
      Investment securities	830,184	932,163
      Shares of subsidiaries and affiliates	-	409,853
      Long-term prepaid expenses	10,158	4,735
      Leasehold and guarantee deposits	826,752	803,279
      Deferred tax assets	864,785	718,248
      Other	145,566	277,278
      Total investments and other assets	2,677,446	3,145,558
      Total non-current assets	3,607,114	4,031,823
      Total assets	24,373,055	21,160,286

      		(Thousands of yen)
      Previous fiscal year (June 30, 2025)		Current third quarter (March 31, 2026)
      Liabilities
      Current liabilities
      Accounts payable - trade	769,142	694,125
      Lease liabilities	6,112	7,704
      Accounts payable - other, and accrued expenses	783,077	755,568
      Income taxes payable	797,648	538,227
      Contract liabilities	3,766,666	2,988,755
      Asset retirement obligations	49,224	22,437
      Provision for bonuses	1,232,404	655,270
      Provision for bonuses for directors (and other officers)	140,888	70,032
      Provision for loss on orders received	11,363	1,263
      Provision for stock benefits	131,442	102,165
      Other	752,649	621,653
      Total current liabilities	8,440,619	6,457,204
      Non-current liabilities
      Lease liabilities	27,111	23,561
      Asset retirement obligations	305,984	315,033
      Deferred tax liabilities	1,350	2,491
      Total non-current liabilities	334,446	341,086
      Total liabilities	8,775,065	6,798,290
      Net assets
      Shareholders' equity
      Share capital	345,113	345,113
      Capital surplus	417,417	270,367
      Retained earnings	16,490,130	15,686,009
      Treasury shares	(1,688,845)	(2,007,219)
      Total shareholders' equity	15,563,815	14,294,271
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	(1,193)	10,474
      Deferred gains or losses on hedges	(2,921)	2,318
      Foreign currency translation adjustment	22,354	54,932
      Total accumulated other comprehensive income	18,239	67,724
      Non-controlling interests	15,934	-
      Total net assets	15,597,989	14,361,995
      Total liabilities and net assets	24,373,055	21,160,286

   2. ‌Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income

      ‌Quarterly period Consolidated Statements of Income Third quarter Consolidated Cumulative period‌

      		(Thousands of yen)
      Previous third quarter (July 1, 2024 to March 31, 2025)		Current third quarter (July 1, 2025 to March 31, 2026)
      Net sales	20,938,513	22,828,303
      Cost of sales	11,630,040	12,542,505
      Gross profit	9,308,473	10,285,798
      Selling, general and administrative expenses	5,682,574	6,213,031
      Operating profit	3,625,898	4,072,766
      Non-operating income
      Interest income	9,044	33,777
      Dividend income	7,324	2,414
      Foreign exchange gains	1,118	-
      Subsidy income	4,139	3,212
      Other	797	3,098
      Total non-operating income	22,425	42,503
      Non-operating expenses
      Interest expenses	1,108	1,834
      Share of loss of entities accounted for using equity method	-	10,138
      Loss on investments in investment partnerships	14,740	70,727
      Commission expenses	11,874	51,175
      Foreign exchange losses	-	6,281
      Other	91	0
      Total non-operating expenses	27,814	140,157
      Ordinary profit	3,620,508	3,975,112
      Extraordinary profit
      Gain on sales of investment securities	167,968	-
      Insurance income	300	-
      Total extraordinary income	168,268	-
      Extraordinary losses
      Loss on retirement of non-current assets	140	-
      Loss on cancellation of leases	86	-
      Total extraordinary losses	227	-
      Profit before income taxes	3,788,549	3,975,112
      Income taxes - current	1,310,395	1,298,053
      Income taxes - deferred	211,586	140,037
      Total income taxes	1,521,982	1,438,090
      Quarterly period Net profit	2,266,567	2,537,021
      Net loss attributable to non-controlling interests	(3,482)	(5,159)
      Net income attributable to owners of parent	2,270,050	2,542,181

      ‌Quarterly consolidated statement of comprehensive income Third quarter consolidated cumulative period‌

      		(Thousands of yen)
      Previous third quarter (July 1, 2024 to March 31, 2025)		Current third quarter (July 1, 2025 to March 31, 2026)
      Quarterly period Net profit	2,266,567	2,537,021
      Other comprehensive income
      Valuation difference on available-for-sale securities	(130,534)	11,668
      Deferred gains or losses on hedges	(4,086)	5,239
      Foreign currency translation adjustment	(32,365)	43,449
      Share of other comprehensive income of entities accounted for using equity method	-	(11,475)
      Total other comprehensive income	(166,985)	48,881
      Quarterly period Comprehensive income	2,099,581	2,585,902
      Comprehensive income attributable to
      Owners of parent	2,103,064	2,591,665
      Non-controlling interest	(3,482)	(5,763)

   3. ‌Quarterly consolidated statement of cash flows

      		(Thousands of yen)
      Previous third quarter (July 1, 2024 to March 31, 2025)		Current third quarter (July 1, 2025 to March 31, 2026)
      Cash flows from operating activities
      Profit before income taxes	3,788,549	3,975,112
      Depreciation	371,086	324,000
      Share-based payment expenses	8,715	2,378
      Insurance income	(300)	-
      Increase (decrease) in allowance for doubtful accounts	(184)	265
      Increase (decrease) in provision for bonuses	(593,026)	(577,134)
      Increase (decrease) in provision for bonuses for directors (and other officers)	(53,788)	(70,855)
      Increase (decrease) in provision for loss on orders received	(12,615)	(10,099)
      Increase (decrease) in provision for share benefits	(22,450)	(29,277)
      Interest and dividend income	(16,369)	(36,191)
      Interest expenses	1,108	1,834
      Commission expenses	11,874	51,175
      Loss (gain) on sale of investment securities	(167,968)	-
      Share of loss (profit) of entities accounted for using equity method	-	10,138
      Loss (gain) on investments in investment partnerships	14,740	70,727
      Subsidy income	(4,139)	(3,212)
      Decrease (increase) in notes and accounts receivable trade and contract assets	125,097	(268,472)
      Decrease (increase) in inventories	(99,013)	(1,912)
      Increase (decrease) in trade payables	14,285	(75,043)
      Increase (decrease) in accounts payable - other, and accrued expenses	60,035	2,748
      Increase (decrease) in accrued consumption taxes	(12,516)	(36,129)
      Increase (decrease) in contract liabilities	(676,281)	(777,911)
      Increase (decrease) in deposits received	(111,637)	(99,801)
      Other	572,129	229,541
      Subtotal	3,197,330	2,681,880
      Interest and dividends received	13,295	30,771
      Interest paid	(1,108)	(1,834)
      Subsidies received	4,139	3,212
      Amount of insurance proceeds received	300	-
      Income taxes paid	(1,726,608)	(1,565,503)
      Income taxes refund	339,657	-
      Cash flows from operating activities	1,827,005	1,148,527
      Cash flows from investing activities
      Purchase of property, plant and equipment	(70,757)	(243,249)
      Payments for asset retirement obligations	-	(203)
      Purchase of intangible assets	(44,756)	(71,508)
      Purchase of investment securities	(190,154)	(130,486)
      Payments into time deposits	-	(14,193)
      Proceeds from withdrawal of time deposits	-	27,360
      Purchase of shares of subsidiaries and affiliates	-	(420,981)
      Payments of leasehold and guarantee deposits	(346,161)	(3,693)
      Proceeds from refund of leasehold and guarantee deposits	149,529	27,109
      Purchase of insurance funds	(4,459)	(4,459)
      Other	218,515	(155,972)
      Cash flows from investing activities	(288,245)	(990,279)

      		(Thousands of yen)
      Previous third quarter (July 1, 2024 to March 31, 2025)		Current third quarter (July 1, 2025 to March 31, 2026)
      Cash flows from financing activities
      Repayments of finance lease liabilities	(7,619)	(4,992)
      Commission fee paid	(11,699)	(52,110)
      Purchase of treasury shares	(701,263)	(3,001,836)
      Dividends paid	(708,296)	(930,856)

      Proceeds from share issuance to non-controlling shareholders

      22,680 -

      Proceeds from sale of treasury shares 349,911 -

‌(Going concern assumption) Not applicable.

‌(Significant changes in the amount of shareholders' equity) Not applicable.

(Additional information)

(Transaction for the issuance of Company shares to employees and executive officers through a trust)

Starting from the fiscal year ending June 2024 (the 28th term), the Company has introduced a share issuance trust as an incentive for its employees and executive officers (hereinafter referred to as 'Employees, etc.') to provide benefits and to enhance the Company's corporate value.

1. Outline of the transaction

   Under this scheme, in accordance with the share issuance regulations established by the Company in advance, points are granted to Employees, etc. who fulfil certain requirements, and the Company common shares (hereinafter referred to as "the Company's shares") corresponding to the number of points granted to such beneficiaries are delivered to those Employees, etc. who fulfil the requirements to be beneficiaries as stipulated in the share delivery regulations. The shares to be issued are acquired in accordance with the amount set in the trust in advance, including the future portion, and are segregated and managed as trust assets.

2. Company shares remaining in the trust

The Company's shares remaining in the trust are recorded as treasury shares under net assets at their book value (excluding the amount of incidental expenses). The book value and number of shares of such treasury shares were ¥788,116 thousand and 559,778 shares at the end of the previous consolidated fiscal year and ¥655,604 thousand and 465,799 shares at the end of the third quarter of the current consolidated fiscal period.

‌(Performance-linked stock-based compensation plan for directors)

Starting from the fiscal year ending June 2025 (the 29th term), the Company has introduced a stock-based compensation plan utilizing a trust (the "Plan") for its directors (excluding directors who are Audit Committee Members and outside directors).

The purpose of this system is to provide directors (excluding directors who are Audit Committee Members and outside directors) with long-term incentives to enhance corporate value, including the period after stocks have been granted.

1. Outline of the transaction

   The Plan is a stock compensation plan under which a trust (the "Trust") established through monetary contributions by the Company acquires shares of the Company's stock and a number of the Company's shares equivalent to the points granted to each director (excluding directors who are Audit Committee Members and outside directors) by the Company are delivered to each director (excluding directors who are Audit Committee Members and outside directors) through the Trust.

2. Company shares remaining in the trust

The Company's shares remaining in the trust are recorded as treasury shares under net assets at their book value (excluding the amount of incidental expenses). The book value and number of shares of such treasury shares were ¥349,911 thousand and 178,800 shares at the end of the previous consolidated fiscal year and ¥349,911 thousand and 178,800 shares at the end of the third quarter of the current consolidated fiscal period.

‌(Segment information)

Previous third quarter (July 1, 2024 to March 31, 2025)

1. Information on net sales and profit or loss by reportable segments

   (Thousands of yen)

   	Reportable segments				Other (Note 1)	Total	Adjustments (Note 2)	Amount recorded on quarterly consolidated financial statements (Note 3)
   	Consolidated Financial Disclosure Business	Digital Transformation Promotion Business	Management Solutions Business	Total
   Net sales
   Net sales to external customers	5,930,083	7,712,303	6,992,939	20,635,325	303,188	20,938,513	-	20,938,513
   Inter-segment net sales or transfers	210,949	16,895	23,225	251,070	12,660	263,730	(263,730)	-
   Total	6,141,032	7,729,198	7,016,165	20,886,396	315,848	21,202,244	(263,730)	20,938,513
   Segment profit	1,663,751	1,312,576	1,316,635	4,292,963	69,888	4,362,852	(736,953)	3,625,898

   Notes: 1. The "Other" category refers to business segments not included in the reportable segments, such as information and service businesses.

2. The segment profit adjustment of ¥(736,953) thousand includes elimination of inter-segment transactions of ¥783,820 thousand, corporate expenses ¥(1,525,432) thousand not allocated to each reportable segment and ¥4,657 thousand of non-current assets adjustment. Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

3. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

Current third quarter (July 1, 2025 to March 31, 2026)

1. Information on net sales and profit or loss by reportable segments

   (Thousands of yen)

   	Reportable segments				Other (Note 1)	Total	Adjustments (Note 2)	Amount recorded on quarterly consolidated financial statements (Note 3)
   	Consolidated Financial Disclosure Business	Digital Transformation Promotion Business	Management Solutions Business	Total
   Net sales
   Net sales to external customers	6,914,923	8,451,867	7,114,375	22,481,166	347,137	22,828,303	-	22,828,303
   Inter-segment net sales or transfers	226,669	5,265	24,646	256,581	18,654	275,235	(275,235)	-
   Total	7,141,592	8,457,133	7,139,022	22,737,747	365,791	23,103,539	(275,235)	22,828,303
   Segment profit	2,305,500	1,580,387	947,238	4,833,126	57,942	4,891,069	(818,302)	4,072,766

   Notes: 1. The "Other" category refers to business segments not included in the reportable segments, such as information and service businesses.

2. The segment profit adjustment of ¥(818,302) thousand includes elimination of inter-segment transactions of ¥940,311 thousand, corporate expenses ¥(1,756,478) thousand not allocated to each reportable segment and ¥(2,134) thousand of non-current assets adjustment. Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

3. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

2. Matters regarding changes, etc. in reportable segments

Effective from the cumulative quarter of the current consolidated fiscal year, the Company has reviewed its performance management categories and added a new operating segment, "Other". Segment information for the third quarter of the previous fiscal year is disclosed based on the amended segment categories.

(Revenue recognition)

Breakdown of net sales from contracts with customers

Previous third quarter (July 1, 2024 to March 31, 2025)

(Thousands of yen)

Current third quarter (July 1, 2025 to March 31, 2026)

(Thousands of yen)

(Subsequent events) Not applicable.