Consolidated financial results for the nine months ended November 30, 2025

Consolidated financial results for the nine months ended November 30, 2025 [IFRS]

January 14, 2026

Company name: BELLSYSTEM24 HOLDINGS, INC. Stock exchange listing: Tokyo

Stock exchange code: 6183 URL: https://www.bell24.co.jp/en/ Representative: Hiroshi Kajiwara, President and Chief Executive Officer

Contact: Masaaki Obayashi, Executive Officer TEL: +81-3-6733-0024 Scheduled date of start of dividend payment: -

Supplementary documents for financial results: Yes

Financial results briefing: No

(Figures are rounded to the nearest million yen)

1. Consolidated financial results for the nine months ended November 30, 2025 (From March 1, 2025 to November 30, 2025)

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

      	Revenue		Operating income		Income before income taxes		Net income
      Nine months ended November 30, 2025 November 30, 2024	Millions of yen 109,460 107,943	% 1.4 (4.5)	Millions of yen 9,436 7,366	% 28.1 (17.4)	Millions of yen 9,194 7,141	% 28.7 (18.3)	Millions of yen 6,258 4,864	% 28.7 (21.8)

      	Net income attributable to owners of the parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Nine months ended November 30, 2025 November 30, 2024	Millions of yen 6,118 4,681	% 30.7 (21.9)	Millions of yen 6,364 4,585	% 38.8 (28.0)	Yen 82.46 63.64	Yen 82.32 63.22

   2. Consolidated financial position

   	Total assets	Total equity	Total equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent
   As of November 30, 2025 February 28, 2025	Millions of yen 171,693 174,413	Millions of yen 73,316 70,837	Millions of yen 72,504 70,160	% 42.2 40.2

2. Dividend

   	Dividend per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Annual
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended February 28, 2025	-	30.00	-	30.00	60.00
   Fiscal year ending February 28, 2026	-	30.00	-
   Fiscal year ending February 28, 2026 (planned)				30.00	60.00

   (Notes) 1. Revision of most recently announced dividend forecasts: No

   For details, please refer to "(3) Explanation regarding consolidated financial results forecasts and other forward-looking statements" on Page 4 of the Accompanying Materials.

   2. Dividends for the six months ended August 31, 2025 were paid from the capital surplus. For details, please refer to "Breakdown of dividends paid from capital surplus" below.

3. Consolidated financial results forecast for the fiscal year ending February 28, 2026

(From March 1, 2025 to February 28, 2026) (Percentages represent changes from the same period of previous fiscal year)

(Note) Revisions of financial forecast in the latest announcement: No

For details, please refer to "(3) Explanation regarding consolidated financial results forecasts and other forward-looking statements" on Page 4 of the Accompanying Materials.

(Notes)

1. Significant changes in the scope of consolidation during the period: No

2. Changes in accounting policies and accounting estimates

   1. Changes in accounting policies required by IFRS: No

   2. Changes in accounting policies other than (i) above: No

   3. Changes in accounting estimates: Yes

3. Number of issued shares (common share)

   1. Number of issued shares at the end of the period (including treasury shares): As of November 30, 2025: 74,522,695 shares

      As of February 28, 2025: 73,753,310 shares

   2. Number of treasury shares at the end of the period:

      As of November 30, 2025: 177,374 shares

      As of February 28, 2025: 186,701 shares

   3. Average number of shares:

Nine months ended November 30, 2025: 74,188,257 shares

Nine months ended November 30, 2024: 73,546,754 shares

(Note) The Company's shares held by the Trust Account for the Officer Compensation BIP Trust are included in treasury shares.

• Review of the attached quarterly consolidated financial statements by certified public accountants or audit firms: Yes (optional)

• Explanation about the appropriate use of the results forecasts and other special notes (Note on forward-looking statements, etc.)

Forward-looking statements, including the results forecasts contained in this material, are based on information currently available for the Company and certain assumptions which the Company deems reasonable. The Company does not intend to provide any guarantee on the realization on these forecasts. Actual business results differ materially from the forecasts due to various factors. For matters related to the results forecasts, please refer to Page 4 of the Accompanying Materials.

(Breakdown of dividends paid from capital surplus)

The following table shows a breakdown of dividends paid from capital surplus for the six months ended August 31, 2025.

(Note) Proportion of the decrease in net assets 0.000

• Accompanying Materials - Contents

  1. Overview of Operating Results, Etc 2

     1. Overview of operating results 2

     2. Overview of financial position 3

     3. Explanation regarding consolidated financial results forecasts and other forward-looking statements 4

  2. Condensed Consolidated Financial Statements and Major Notes 5

1. Condensed quarterly consolidated statements of financial position 5

2. Condensed quarterly consolidated statement of income and condensed quarterly consolidated

   statement of comprehensive income 7

   Condensed quarterly consolidated statement of income 7

   First nine-month period 7

   Condensed quarterly consolidated statement of comprehensive income 8

   First nine-month period 8

3. Condensed quarterly consolidated statement of changes in equity 9

4. Condensed quarterly consolidated statement of cash flows 11

5. Notes to condensed quarterly consolidated financial statements 12

(Notes on going concern assumption) 12

(Changes in accounting estimates) 12

(Segment information) 12

1. Overview of Operating Results, Etc.

   1. Overview of operating results

      During the nine months ended November 30, 2025, the Japanese economy showed signs of a moderate recovery driven by continued improvement in personal spending and capital investment partly due to the improving employment and income situation and the effects of various policy measures. On the other hand, in addition to downside risks from US trade policy, the effects of continued price hikes on personal consumption could put downward pressure on the Japanese economy, and the effects of financial and capital market volatility continue to require caution.

      In the Customer Relationship Management (CRM) business, which is the Group's core business, business model transformation to a solution-based model that promises higher profit margins through the use of new technologies such as generative AI is key. In such a market environment, we are striving to improve the quality of operations and added value, while also driving the development of new business domains through expansion of customer support domains in line with diversification of customer contact points and data utilization. By accelerating the three priority measures under our Mid-term Management Plan, defined as "Human Resources (Maximizing the active participation of our workforce of 40,000 employees)", "Stylization (Achieving more sophisticated data utilization)", and "Co-creation (Developing the NEW BPO areas)", we have sought to achieve sustainable growth.

      During the nine months ended November 30, 2025, in a "Stylization" initiative, we completed the development of "Knowledge Generator." As our first solution, "Knowledge Generator" carves out some of the processes of "Hybrid Operation Loop," the contact center automation solution that is currently under development. "Knowledge Generator" is proprietary technology for automatically generating highly accurate knowledge from phone recording data in line with the global KCS (Knowledge-Centered Service) principles for knowledge generation. We are integrating "Knowledge Generator" into our knowledge management services consulting menu and making it available ahead of Hybrid Operation Loop as a complete solution. This will make it possible to shorten the enormously time-consuming process of developing knowledge in line with the KCS methodology from phone recording data, making the process far more efficient. Through the activities of GenAI Co-Creation Lab., we are conducting demonstration experiments for "Knowledge Generator" in collaboration with several companies including a major insurance company, and checking accuracy in anticipation of actual application. "Knowledge Generator" automates the knowledge and content development and creation processes that were previously done manually by humans, saving an enormous amount of time and money.

      In "Co-Creation" initiatives, we agreed to form a capital and business alliance with Hedgehog MedTech, Inc. (Hedgehog MedTech), and transferred our "Zutool" division and our "Otenki.com" division, which operates a weather forecast site, to Hedgehog MedTech by way of an absorption type split. We acquired shares in Hedgehog MedTech as part of the consideration for the sale. Developed in 2013, "Zutool" has seen growth in users due to its unique focus on headaches and other physical ailments triggered by changes in atmospheric pressure. It has grown into a mobile app with more than

      2.2 million downloads. Until now, "Zutool" has supported users in deploying easy, independent health care strategies in day-to-day life. It, therefore, lacked a framework for helping users that need specialist diagnosis or treatment get access to the appropriate medical support. Hedgehog MedTech is a medical startup that develops treatment apps, diagnostic devices and other programs and medical devices and has a presence in the medical domain. BELLSYSTEM24 Group and Hedgehog MedTech formed the capital and business alliance in order to combine their assets with the aim of becoming Japan's first comprehensive platform for headaches offering tools for predicting, recording, diagnosing and treating headaches.

      In collaboration with ITOCHU Corporation, we also launched "Co-MR," an information provision support service for the aggregation of data about the MR (medical representative) activities of pharmaceutical companies at contact centers. With points of contact between MRs and doctors decreasing due to restrictions on visits to medical institutions and doctor work style reforms, this service leverages the ITOCHU Group's strategy partnering experience and partner alliances in the medical domain and our qualified personnel and other experts in the medical domain and our contact center knowhow to provide end-to-end support for information provision activities. This will lead to reduction in MR manhours and expansion of prescriptions through more efficient provision of information about the proper use of pharmaceuticals and through the provision of information to medical professionals in areas that are difficult to visit and the acquisition of appointments with them.

      In "Human Resources" initiatives, in the PRIDE Index 2025, an index that evaluates workplace initiatives related to LGBTQ+ (LGBTQ and other sexual minorities), we received the highest Gold rating, which indicates satisfaction of all certification criteria, for a seventh consecutive year. We consider "Human Resources" to be management resources of the utmost importance. We place diversity at the center of our management policies and have defined "diversity of our human resources and their work styles" as a material issue for us in our materiality assessment. This fiscal year, in an initiative aimed at promoting dialogue opportunities and understanding within the company, we held roundtable discussions between young employees and allies (*) and opinion exchange sessions between executives and LGBTQ+ individuals and allies in an attempt to raise awareness across the organization. Additionally, we included a program promoting understanding for LGBTQ+ issues in new employee training and also rolled out a new "D&I Training/LGBTQ+" e-learning module for all employees. Through this, we instilled knowledge about LGBTQ+ and SOGI (*2), including the nature of support we offer as a company, preventing harassment in the workplace, and points to remember when hiring. Going forward, we will continue working to foster an organizational climate that encourages respect for diverse values.

      Additionally, our group company True Touch Co., Ltd. ("True Touch") won awards in all nine categories it entered in the TCCTA Contact Center Awards 2025 held by Thai Contact Center Trade Association (TCCTA), including a Bronze Medal in the Organizational Category and Excellence Awards in four Individual Categories including The Best Contact Center Supervisor Professional and The Best Contact Center IT Support Professional. TCCTA is an organization established in 2014 by the Thai Ministry of Commerce for the purpose of promoting improvement in the quality of contact center services and developing contact center services. The TCCTA Contact Center Awards held by TCCTA every year recognize contact centers that provide outstanding services in Thailand, and True Touch was a winner in the latest awards in recognition of its outstanding expertise and excellent customer service. Going forward, True Touch will keep striving for high quality and reliability in its contact center operations and providing services that continue to meet customer expectations while at the same time strengthening sustainable partnerships with client companies and industry players.

      (*1) Allies: People who actively support and advocate for the LGBTQ+ community (*2) SOGI: Acronym for Sexual Orientation and Gender Identity

      Results for each business segment are as follows. (CRM Business)

      The CRM business posted revenue of 109,217 million yen (up 1.5% year on year) and income before income taxes of 8,506 million yen (up 21.0%) due to successful revenue improvement measures.

      (Others)

      The revenue of the Others segment amounted to 243 million yen (down 23.5% year on year) due to decline in income from the sale of content. However, income before income taxes was 688 million yen (up 535.2%) due to the partial sale of the content business by way of an absorption-type split.

      As a result of the above, financial results for the nine months ended November 30, 2025 were revenue of 109,460 million yen (up 1.4% year on year), operating income of 9,436 million yen (up 28.1%), income before income taxes of 9,194 million yen (up 28.7%), and net income attributable to owners of the parent of 6,118 million yen (up 30.7%).

   2. Overview of financial position

      1. Assets, liabilities and equity (Millions of yen)

         	As of February 28, 2025	As of November 30, 2025	Change
         Total assets	174,413	171,693	(2,720)
         Total liabilities	103,576	98,377	(5,199)
         Ratio of equity attributable to owners of the parent (%)	40.2	42.2	-

         Current assets increased 2,814 million yen from the end of the previous consolidated fiscal year, to 30,856 million yen, mainly due to increases of 2,037 million yen in cash and cash equivalents and 861 million yen in trade receivables.

         Non-current assets amounted to 140,837 million yen, decreasing 5,534 million yen from the end of the previous consolidated fiscal year mainly due to a decrease of 5,301 million yen in property, plant and equipment.

         As a result, total assets decreased 2,720 million yen from the end of the previous consolidated fiscal year, to 171,693 million yen.

         Current liabilities decreased by 9,645 million yen from the end of the previous consolidated fiscal year to 47,768 million yen, mainly due to a 12,599 million yen decline in borrowings despite a 2,399 million yen increase in liabilities for employee benefits and 1,434 million yen increase in other current liabilities.

         Non-current liabilities increased by 4,446 million yen from the end of the previous consolidated fiscal year to 50,609 million yen, driven primarily by a 8,940 million yen increase in long-term borrowings offsetting a 4,379 million yen decrease in other long-term financial liabilities.

         As a result, total liabilities decreased 5,199 million yen from the end of the previous consolidated fiscal year, to 98,377 million yen.

         Equity increased 2,479 million yen from the end of the previous consolidated fiscal year, to 73,316 million yen mainly due to an increase of 6,118 million yen in retained earnings, partially offset by a decrease of 4,070 million yen in capital surplus.

      2. Analysis of cash flow (Millions of yen)

         	Nine months ended November 30, 2024	Nine months ended November 30, 2025	Change
         Cash flows from operating activities	15,552	14,770	(782)
         Cash flows from investing activities	(1,946)	(261)	1,685
         Cash flows from financial activities	(11,847)	(12,497)	(650)
         Cash and cash equivalents at the end of the period	8,954	9,029	75

         Cash and cash equivalents at the end of the first nine months of the fiscal year under review increased 2,037 million yen from the end of the previous fiscal year, to 9,029 million yen. The cash flows in the first nine months of the fiscal year under review and factors relating to each are as follows.

         (Cash flows from operating activities)

         Net cash provided by operating activities was 14,770 million yen (as compared to net cash provided of 15,552 million yen in the same period of the previous fiscal year). This mainly reflects income before income taxes of 9,194 million yen, depreciation and amortization of 6,666 million yen, an increase in payable for consumption tax of 1,378 million yen and income taxes paid of 3,357 million yen.

         (Cash flows from investing activities)

         Net cash used in investing activities was 261 million yen (as compared to 1,946 million yen used in the same period of the previous fiscal year). This mainly reflects proceeds from refund of leasehold and guarantee deposits of 573 million yen, purchases of property, plant and equipment totaling 481 million yen, and purchases of intangible assets amounting to 340 million yen.

         (Cash flows from financing activities)

         Net cash used in financing activities was 12,497 million yen (as compared to 11,847 million yen used in the same period of the previous fiscal year). This primarily reflects proceeds from long-term borrowings of 18,000 million yen, repayments of long-term borrowings of 14,850 million yen, a decrease in short-term borrowings of 6,800 million yen, repayments of lease liability of 4,949 million yen, and dividends paid of 4,443 million yen.

   3. Explanation regarding consolidated financial results forecasts and other forward-looking statements

   There are no changes to the consolidated financial results forecast announced on April 9, 2025.

   Forward-looking statements are based upon what the Group believes to be reasonable assumptions and involve risks and uncertainties. Please note that actual results may differ materially from the forecasts due to various key factors.

2. Condensed Consolidated Financial Statements and Major Notes

1. Condensed quarterly consolidated statements of financial position

   (Millions of yen)

   	As of February 28, 2025		As of November 30, 2025
   Assets
   Current assets
   Cash and cash equivalents	6,992		9,029
   Trade and other receivables	19,006		19,867
   Other financial assets	163		193
   Other current assets	1,881		1,767
   Total current assets	28,042		30,856
   Non-current assets
   Property, plant and equipment	31,563		26,262
   Goodwill	94,651		94,658
   Intangible assets	2,830		2,505
   Investments accounted for using equity method	6,558		6,520
   Deferred tax assets	3,174		3,148
   Other financial assets	7,339		7,532
   Other non-current assets	256		212
   Total non-current assets	146,371		140,837
   Total assets	174,413		171,693

   (Millions of yen)

   	As of February 28, 2025		As of November 30, 2025
   Liabilities and equity
   Liabilities
   Current liabilities
   Trade and other payables	5,634		5,242
   Borrowings	30,799		18,200
   Other short-term financial liabilities	6,031		5,907
   Income taxes payable	1,834		1,404
   Liabilities for employee benefits	10,813		13,212
   Provisions	65		132
   Other current liabilities	2,237		3,671
   Total current liabilities	57,413		47,768
   Non-current liabilities
   Long-term borrowings	23,247		32,187
   Other long-term financial liabilities	18,429		14,050
   Liabilities for employee benefits	962		925
   Provisions	3,303		3,225
   Deferred tax liabilities	187		187
   Other non-current liabilities	35		35
   Total non-current liabilities	46,163		50,609
   Total liabilities	103,576		98,377
   Equity
   Common stock	27,097		27,456
   Capital surplus	(8,058)		(12,128)
   Retained earnings	51,385		57,503
   Treasury shares	(312)		(296)
   Other components of equity	48		(31)
   Total equity attributable to owners of the parent	70,160		72,504
   Non-controlling interests	677		812
   Total equity	70,837		73,316
   Total liabilities and equity	174,413		171,693

2. Condensed quarterly consolidated statement of income and condensed quarterly consolidated statement of comprehensive income

   Condensed quarterly consolidated statement of income First nine-month period

   Nine months ended November 30, 2024

   (Millions of yen)

   Nine months ended November 30, 2025

   Revenue	107,943		109,460
   Cost of sales	(88,717)		(89,204)
   Cost of sales	19,226		20,256
   Selling, general and administrative expenses	(11,998)		(11,604)
   Other income	166		840
   Other expenses	(28)		(56)
   Operating income	7,366		9,436
   Share of profit (loss) of investments accounted for using equity method	133		303
   Financial income	42		31
   Financial costs	(400)		(576)
   Income before income taxes	7,141		9,194
   Income taxes	(2,277)		(2,936)
   Net income	4,864		6,258
   Net income attributable to:
   Owner of the parent	4,681		6,118
   Non-controlling interests	183		140
   Net income	4,864		6,258
   			(Unit: yen)
   Earnings per share (attributable to the parent)
   Basic	63.64		82.46
   Diluted	63.22		82.32

   Condensed quarterly consolidated statement of comprehensive income First nine-month period

   Nine months ended November 30, 2024

   (Millions of yen)

   Nine months ended November 30, 2025

   4,864		6,258
   (192)		69
   (36)		-
   (228)		69
   (93)		39
   42		(2)
   (51)		37
   (279)		106
   4,585		6,364

   Net income

   Other comprehensive income, net of tax

   Items that will not be reclassified to profit or loss

   Financial assets measured at fair value through other comprehensive income

   Share of other comprehensive income of investments accounted for using equity method

   Total items that will not be reclassified to profit or loss

   Items that may be reclassified to profit or loss

   Exchange differences on translating foreign operations

   Share of other comprehensive income of investments accounted for using equity method

   Total items that may be reclassified to profit or loss

   Total other comprehensive income, net of tax Total comprehensive income

   Comprehensive income attributable to:
   Owner of the parent	4,410		6,223
   Non-controlling interests	175		141
   Total comprehensive income	4,585		6,364

3. Condensed quarterly consolidated statement of changes in equity

   Nine months ended November 30, 2024

   (Millions of yen)

   Common stock

   Capital surplus Retained earnings

   Treasury shares

   As of March 1, 2024	27,097		(3,826)		43,382		(378)
   Net income Other comprehensive income	- -		- -		4,681 -		- -
   Total comprehensive income	-		-		4,681		-
   Share-based payments	-		(7)		-		-
   Dividends paid	-		(4,413)		-		-
   Purchase of treasury shares	-		-		-		(0)
   Disposal of treasury shares	-		(2)		-		56
   Total transaction with owners	-		(4,422)		-		56
   As of November 30, 2024	27,097		(8,248)		48,063		(322)

   Other components of equity

   Total equity attributable to owners of the parent

   Non-controlling interests

   (Millions of yen) Total equity

   As of March 1, 2024	455		66,730		1,009		67,739
   Net income	-		4,681		183		4,864
   Other comprehensive income	(271)		(271)		(8)		(279)
   Total comprehensive income	(271)		4,410		175		4,585
   Share-based payments	(19)		(26)		-		(26)
   Dividends paid	-		(4,413)		(231)		(4,644)
   Purchase of treasury shares	-		(0)		-		(0)
   Disposal of treasury shares	-		54		-		54
   Total transaction with owners	(19)		(4,385)		(231)		(4,616)
   As of November 30, 2024	165		66,755		953		67,708

   Nine months ended November 30, 2025

   Common stock

   Capital surplus Retained earnings

   (Millions of yen) Treasury shares

   As of March 1, 2025	27,097		(8,058)		51,385		(312)
   Net income Other comprehensive income	- -		- -		6,118 -		- -
   Total comprehensive income	-		-		6,118		-
   Exercise of share acquisition rights	359		359		-		-
   Forfeiture of share acquisition rights Share-based payments Dividends paid Purchase of treasury shares	- - - -		12 - (4,437) -		- - - -		- - - (0)
   Disposal of treasury shares	-		(4)		-		16
   Total transaction with owners	359		(4,070)		-		16
   As of November 30, 2025	27,456		(12,128)		57,503		(296)

   Other components of equity

   Total equity attributable to owners of the parent

   Non-controlling interests

   (Millions of yen) Total equity

   As of March 1, 2025	48		70,160		677		70,837
   Net income	-		6,118		140		6,258
   Other comprehensive income	105		105		1		106
   Total comprehensive income	105		6,223		141		6,364
   Exercise of share acquisition rights	(179)		539		-		539
   Forfeiture of share acquisition rights	(12)		-		-		-
   Share-based payments	7		7		-		7
   Dividends paid	-		(4,437)		(6)		(4,443)
   Purchase of treasury shares	-		(0)		-		(0)
   Disposal of treasury shares	-		12		-		12
   Total transaction with owners	(184)		(3,879)		(6)		(3,885)
   As of November 30, 2025	(31)		72,504		812		73,316

4. Condensed quarterly consolidated statement of cash flows

   Nine months ended November 30, 2024

   (Millions of yen)

   Nine months ended November 30, 2025

   Cash flows from operating activities:

   Income before income taxes 7,141 9,194

   Depreciation and amortization 7,083 6,666

   Loss (gain) on disposal or sales of property, plant and equipment

   14 38

   Share of (profit) loss of investments accounted for using the equity method	(133)		(303)
   Loss (gain) on sale of businesses	-		(637)
   Financial income	(42)		(31)
   Financial costs	400		576
   Decrease (increase) in trade and other receivables	(241)		(874)
   Increase (decrease) in trade and other payable	211		(351)
   Increase (decrease) in payable for consumption tax	1,909		1,378
   Other, net	1,764		2,577
   Subtotal	18,106		18,233
   Interest and dividends received	176		389
   Interest paid	(344)		(495)
   Income taxes paid	(2,386)		(3,357)
   Net cash provided by (used in) operating activities	15,552		14,770
   Cash flows from investing activities:
   Payments into time deposits	-		(50)
   Purchase of property, plant and equipment	(786)		(481)
   Purchase of intangible assets	(418)		(340)
   Proceeds from sale of businesses	-		300
   Purchase of securities	(700)		(100)
   Payments for guarantee deposits	(139)		(52)
   Proceeds from guarantee deposits	253		573
   Payments for asset retirement obligations	(156)		(111)
   Other, net	0		-
   Net cash provided by (used in) investing activities	(1,946)		(261)
   Cash flows from financial activities:
   Increase (decrease) in short-term borrowings	1,200		(6,800)
   Proceeds from long-term borrowings	5,000		18,000
   Repayment of long-term borrowings	(8,250)		(14,850)
   Dividends paid	(4,413)		(4,437)
   Dividends paid to non-controlling interests	(231)		(6)
   Repayments of lease liability	(5,179)		(4,949)
   Proceeds from issuance of shares	-		539
   Proceeds from sale of treasury shares	26		6
   Purchase of treasury shares	(0)		(0)
   Net cash provided by (used in) financial activities	(11,847)		(12,497)
   Effect of exchange rate change on cash and cash equivalents	(18)		25
   Net increase (decrease) in cash and cash equivalents	1,741		2,037
   Cash and cash equivalents at the beginning of the period	7,213		6,992
   Cash and cash equivalents at the end of the period	8,954		9,029

5. Notes to condensed quarterly consolidated financial statements

(Notes on going concern assumption) Not applicable.

(Changes in accounting estimates)

(Changes in useful lives and lease terms of property, plant and equipment)

During the six months ended August 31, 2025 and three months ended November 30, 2025, the Company decided to terminate the leases of some leased offices. As a result, the Company changed its estimates of the useful lives of buildings and structures (property, plant and equipment) and the lease terms of right-of-use assets (property, plant and equipment). As a result of these changes in estimates, property, plant and equipment decreased by 1,849 million yen and other long-term financial liabilities decreased by 1,872 million yen. Operating income and income before income taxes each declined by 102 million yen in the nine months ended November 30, 2025.

(Segment information)

The Group's reportable segments are components of the Group for which separate financial information is available and which are subject to periodic review by the Board of Directors to determine the allocation of management resources and evaluate their performance. The Group's business segments consist of the CRM business segment and the Others business segment, and business segmentation is based on comprehensive consideration of service type and characteristics, markets and other factors.

The Group is primarily involved in the CRM business, which deals with the operation of contact centers and other operations incidental thereto.

This business accounts for the majority of the absolute amounts of the Group's reported revenue and net profit or loss and the amount of its reported assets. Accordingly, the Group's only reportable segment is the CRM business.

Internal transfers between segments are generally based on market prices.

Nine months ended November 30, 2024

(Millions of yen)

(*) 1. Intersegment revenue is eliminated on consolidation and included in the "Adjustments and eliminations" section.

2. Revenue is revenue recognized from all contracts with customers.

Nine months ended November 30, 2025

(Millions of yen)

(*) 1. Intersegment revenue is eliminated on consolidation and included in the "Adjustments and eliminations" section.

2. Revenue is revenue recognized from all contracts with customers.