Consolidated Financial Highlights for 3Q FY2025

February 12, 2026

Company name: HAKUHODO DY HOLDINGS INCORPORATED

Listing: Tokyo Stock Exchange Securities code: 2433

URL: https://www.hakuhodody-holdings.co.jp/

Representative: Yasuo Nishiyama Representative Director & President

Inquiries: Daisuke Hara Manager, Investor Relations Group Telephone: +81-3（6441）9033

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (For Analysts and Institutional Investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025)

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

      	Revenue		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended December 31, 2025 December 31, 2024	Millions of yen 595,323 659,512	% (9.7) 2.0	Millions of yen 28,599 22,649	% 26.3 44.9	Millions of yen 29,540 24,877	% 18.7 46.4	Millions of yen 10,371 256	% - -

      Note: Comprehensive income	For the nine months ended December 31, 2025:	¥	14,958 million	[	205.5%]
      	For the nine months ended December 31, 2024:	¥	4,896 million	[	(77.8) %]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      December 31, 2025	28.38	28.37
      December 31, 2024	0.70	0.69

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio
      As of December 31, 2025 March 31, 2025	Millions of yen 1,007,643 1,050,191	Millions of yen 407,647 413,682	% 37.9 37.2

      Reference: Equity

      As of December 31, 2025:	¥	381,954 million
      As of March 31, 2025:	¥	390,255 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	16.00	-	16.00	32.00
   Fiscal year ending March 31, 2026	-	16.00	-
   Fiscal year ending March 31, 2026 (Forecast)				16.00	32.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the financial result forecast most recently announced: None

1. Significant changes in the scope of consolidation during the period: Yes

   Newly included:	2	companies( DIGITAL HOLDINGS, INC. , OPT, Inc.	)
   Excluded:	3	companies( D.A.Consortium Inc. , IREP Co.,Ltd , UNITED, Inc.	)

   (Note) For details regarding Newly included, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes

   1. Notes to Quarterly Consolidated Financial Statements (Business Combinations, etc.)" on page 13 of the Attached Material.

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of December 31, 2025	389,559,436 shares
      As of March 31, 2025	389,559,436 shares

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

      As of December 31, 2025	29,538,996 shares
      As of March 31, 2025	22,174,066 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters

Forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. The Company does not intend to promise that these forecasts will be achieved. Actual results may differ significantly due to various factors. For the assumptions underlying the earnings forecasts and precautions regarding their use, please refer to "1. (3) Explanation of Consolidated Forecasts" on page 3 of the attached material. Supplementary explanatory materials on quarterly financial results are available on the Company's website (https://www.hakuhodody-holdings.co.jp/).

1. Qualitative Information Regarding Quarterly Results 2

   1. Explanation of Consolidated Operating Results 2

   2. Explanation of Consolidated Financial Position 3

   3. Explanation of Consolidated Forecasts 3

2. Quarterly Consolidated Financial Statements and Primary Notes 5

   1. Quarterly Consolidated Balance Sheet 5

   2. Quarterly Consolidated Statements of Income and Comprehensive Income 7

   3. Notes to Quarterly Consolidated Financial Statements 10

(Notes Regarding the Going Concern Assumption) 10

(Notes to Consolidated Statements of Cash Flows) 10

(Notes Regarding Significant Changes in Shareholders' Equity) 10

(Segment Information, etc.) 11

(Business Combinations, etc.) 13

(Significant Subsequent Events) 14

1. Explanation of Consolidated Operating Results

   During the consolidated cumulative third quarter under review (April 1, 2025 to December 31, 2025; hereinafter, the "consolidated cumulative third quarter"), the Japanese economy continued to show a moderate recovery, with consumer sentiment showing signs of picking up supported by steady improvements in the employment and income environment, and corporate capital investment remaining solid, although the impact of soaring prices continued to linger. The domestic advertising market (Note 1) also generally exceeded the previous year's level and performed steadily.

   Under such an environment, looking at the consolidated cumulative third quarter, due to the exclusion of UNITED, Inc. (Note 2) from consolidation, the impact of a reactionary decline in government projects, sluggish growth in the Greater China region and ASEAN affected by tariff issues, and foreign exchange fluctuations, consolidated billings (Note 3) decreased to 1,115,175 million yen (down 3.0% year on year). However, looking at the third quarter consolidated accounting period alone (October 1, 2025 to December 31, 2025; hereinafter, the "third quarter accounting period") from October 2025 onwards, signs of recovery are appearing, centered on the domestic market, which saw a revenue increase of 2.6% due to growth in the marketing promotion domain and television turning positive year on year. Consequently, consolidated billings turned to an increase from the decline in the first half, reaching 420,151 million yen (up 1.5% year on year).

   In addition to the recovery of the top line, initiatives to improve profitability in Japan and overseas also proved successful. Gross profit after adjustments (Note 4) for the third quarter accounting period increased by 5.8% year on year, and for the consolidated cumulative third quarter, it reached 287,605 million yen, shifting to an increase of 2.0% year on year. The gross margin after adjustments for the consolidated cumulative third quarter improved by 1.2 points to 25.8%.

   Furthermore, due to the effects of cost control measures implemented in Japan and overseas, SG&A expenses were reduced by 3,673 million yen year on year even as gross profit exceeded the previous year. Operating income was 28,599 million yen (up 26.3% year on year), and operating income after adjustments increased by 9,206 million yen year on year (up 47.5% year on year), expanding the profit increase margin compared to the first half. The adjusted operating margin before amortization of goodwill (Note 5) was 13.2% (up 2.1 points year on year), indicating steady progress in structural reforms.

   Reflecting the increase in operating income, net income attributable to owners of parent was 10,371 million yen, an increase of 10,114 million yen.

   (Notes)

   1. Sources: "Monthly Survey on Service Industries" (Ministry of Internal Affairs and Communications).

   2. The company was our consolidated subsidiary until the fiscal year ended March 2025, but became an equity-method affiliate from the fiscal year ending March 2026.

   3. "Billings" are based on previous accounting standards but are voluntarily disclosed because we believe the metric is useful to financial statement users, although not in accordance with the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards.

   4. "After adjustments" excluding impact from the sale of shares in Mercari, Inc. held by UNITED, Inc. (5)Adjusted operating margin before amortization of goodwill = Operating income after adjustments and before amortization of goodwill ÷ Gross profit after adjustments.

2. Explanation of Consolidated Financial Position

   Total assets at the end of the consolidated third quarter decreased by 42,548 million yen compared to the end of the previous consolidated fiscal year to 1,007,643 million yen. The main changes were a decrease of 47,339 million yen in cash and deposits, a decrease of 16,327 million yen in notes and accounts receivable, an increase of 14,492 million yen in inventories, and an increase of 26,141 million yen in investment securities.

   Liabilities decreased by 36,513 million yen compared to the end of the previous consolidated fiscal year to 599,996 million yen. The main changes were a decrease of 9,322 million yen in notes and accounts payable, an increase of 55,949 million yen in short-term borrowings, a decrease of 12,346 million yen in income taxes payable, a decrease of 11,661 million yen in provision for bonuses, and a decrease of 51,592 million yen in deposits received.

   Net assets decreased by 6,034 million yen compared to the end of the previous consolidated fiscal year to 407,647 million yen. The main changes were a decrease of 3,509 million yen in retained earnings, an increase of 8,569 million yen in treasury shares, and an increase of 2,393 million yen in non-controlling interests.

   From the end of the consolidated third quarter, the balance sheet of the DIGITAL HOLDINGS Group has been consolidated.

3. Explanation of Consolidated Forecasts

There are no changes to the full-year consolidated earnings forecast at this time.

(Note) Please note that these forecasts are based on conditions we currently deem reasonable, and actual results may differ significantly depending on various future factors.