Financial Results Presentations 2Q(25/4/1-25/9/30)

April 1, 2025 - September 30, 2025

Supplementary Briefing on Financial Results

ID Holdings Corporation （TSE Prime Market Code: 4709）

President, Representative Director and Group CEO Masaki Funakoshi

Change or Die !

November 20, 2025

Change or Die !

1. Performance Overview for Q2

2. Mid-term Management Plan

Next 50 Episode Ⅲ: Jump!!!

Overview of Financial Results for Q2

Net Sales ¥19,472 million (+12.2% YoY)

Change or Die !

⊕ Application development, IT infrastructure and cybersecurity* trended firmly.

Operating Income ¥2,018 million (+16.2% YoY)

Operating Income Margin 10.4% (+0.4P YoY)

⊝ Returns to employees increased, as did expenses for strategic investment in personnel training and retention.

⊕ Net sales rose and gross profit margin improved in application development and other

segments.

⊕ Decline in amount of amortization of goodwill

* Beginning in FY2025, the service formerly named "software development" is renamed "application development" and the service formerly named "cybersecurity, consulting and training" is split into two services, "cybersecurity" and "consulting and training." The changes in service names do not entail any change in operational content of the services.

Financial Results (Consolidated)

Diff.

(% of net sales)

Results

(% of net sales)

2025.9

2024.9

( million)

Net sales

Cost of sales

Change or Die !

Gross profit

SG&A expenses

EBITDA1

Operating income

Ordinary income

Net income attributable to owners of parent

Earnings per share (EPS) ()

EPS before amortization of goodwill2()

Notes:

1. EBITDA = Operating income + Depreciation + Amortization of goodwill

2. EPS before amortization of goodwill = (Net income attributable to owners of parent + Amortization of goodwill) ÷ Interim average number of shares

Net Sales by Service

（¥ million）

295

15,938

166

17,347

190

+14.3%

+7.4%

+36.6%

+31.0%

+55.0%

-1.8%

+49.5%

+27.6%

+14.0%

+5.6%

+4.4%

+2.9%

Change or Die !

19,472

2023.9 2024.9 2025.9

• System Management ■ Application Development

• IT Infrastructure ■ Cyber Security

• Consulting and Training ■ Others

Gross Profit by Service

System Management

2,000

1,819

1,822

40.0%

2,000

1,800

1,591

35.0%

1,800

1,600

1,600

30.0%

1,400

23.5%

1,400

25.0%

1,200

24.2%

1,200

1,000

22.1%

20.0%

1,000

800

20.3%

20.0%

15.0%

800

600

18.2%

15.0%

600

10.0%

400

10.0%

400

5.0%

200

5.0%

200

0

0.0%

0.0%

0

2023.9

2024.9

2025.9

2023.9

2024.9

2025.9

26.7% 30.0%

25.0%

1,028

1,213

45.0%

400%.

350%.

1,818

Application Development

■■ Gross profit (¥million)

Change or Die !

Gross profit margin (%)

Net Sales by Strategic Alliances

Hitachi Group

(Share of net sales: 7.4%)

⊕ Expansion of orders acceptance in application development, IT

infrastructure, etc.

IBM Group

(Share of net sales: 11.4%)

⊕ Continuing projects in application development and IT infrastructure

with customers related to energy

⊕ Receipt of new orders for application development projects from

customers related to transportation, etc.

843

980

1,287

(6.6%)

934 (4.8%)

• IBM Japan (development projects)

• MI Digital Services (operational projects)

2024.9

2025.9

The ID Group secures a stable earnings base by maintaining a balance between direct contracts (about 70%) and projects through major SIers (about 30%).

Major Customers (Non-Finance)

(Share of net sales: 21.4%)

⊕ Receipt of orders for new major projects in application development

from customers related to manufacturing and energy

⊕ Expansion of orders received for security projects with multiple customers

⊕ Receipt of new orders for IT infrastructure projects from customers

(¥ million)

17,347

2,837

3,652

4,681

1,347

1,332

1,672

1,823

+9.5%

+13.9%

+16.3%

-3.9%

+7.5%

+8.2%

+21.9%

19,472

3,107

4,158

5,446

1,294

1,433

1,809

2,222

Direct transactions (Share of net sales：65.3%)

Through major S5,00 0Iers (Share of net sales：34.7%)

Major Customers

(Finance)

Change or Die !

(Share of net sales: 28.0%)

related to energy, etc.

⊕ Expansion of orders received for cloud-related configuration and

vulnerability-response projects

⊕ Receipt of orders for new major projects in application development from customers related to insurance

⊕ Expansion of projects through strengthened sales activities

2024.9 2025.9

• IBM Group ■ Kyndryl Japan ■ Hitachi Group ■ Strategic Partners

• Major Customers (Finance) ■ Major Customers (Non-Finance) ■ Others

Note: Beginning in the fiscal year under review, accounting categories are changed for some customers.

Net sales in the previous fiscal year are calculated based on categories after the change.

Net Sales Composition by End-user Industry

Transactions with the financial sector account for about 50% of net sales.

(¥ million)

Figures in parentheses

indicate % of net sales

Transportation Others

Information & Communication

748

(3.8%)

1,662

(8.5%)

1,878

Change or Die !

(9.6%)

2,502

(12.9%)

Finance

8,724

(44.8%)

Manufacturing

Energy, public sector

3,955

(20.3%)

*"Media", "Healthcare", "Construction, Real estate", "Wholesale, Retail, Restaurants", etc.

Note: Accounting categories may be changed according to status of corporate clients. (Net sales in the previous fiscal year are calculated based on categories

after the change.)

Change or Die !

Operating Income Analysis (YoY)

Analysis of Balance-sheet Factors

Main Factors

・ Cash and deposits

decreased

-659

・ Accounts receivable

-trade increased

+210

・ Investment securities increased

+189

2025.3

2025.9

(¥ million)

Main Factors

・ Interest-bearing debt

decreased

-1,050

Change or Die !

Equity Ratio: 64.7％ Current Ratio: 204.7％ Goodwill: ¥374 million

Cash Flows and Interest-bearing Debt

Operating Activities

Investing Activities

Free Cash Flows*

Financing Activities

Interest-bearing Debt

1,212

Change or Die !

1,140

・Purchase of property, plant and equipment (-65)

・Purchase of investment securities

(-57)

・ Proceeds from sale of businesses (35)

・ Proceeds from other (cancellation of insurance funds, etc.) (41)

1,080

1,103

・Net decrease in short-

term loans payable

(-950)

・ Cash dividends paid (-772)

・Repayment of long-term loans payable

(-100)

1,250

900

・ Net income before income

taxes (2,050)

・ Increase in provision for bonuses

(205)

・ Corporation tax, etc. paid

(-1,099)

-131

-37

-1,782

-1,825

(¥ million)

• 2024.9

  ■ ■ 2025.9

  Main reasons in Q2 (FY2025)

  ©2025 ID Holdings Corporation. All Rights Reserved.

  *Free Cash Flows = Cash Flows from Operating Activities ＋ Cash Flows from Investing Activities 11

  
  
  
  
  
  
  
  
  

  Order Backlog by Service (Cumulative)

  10,480

  (¥ million)

  Change or Die !

  ■ 2024.９ ■ 2025.９

  8,366

  4,231

  3,541

  2,292

  2,489

  1,778

  1,869

  1,039

  1,179

  66

  158

  70

  129

  Total	System	Application	IT	Cybersecurity	Consulting and	Others
  	Management	development	Infrastructure		Training

  
  
  

  Shareholders (As of September 30, 2025)

  Shareholding by investor type

  50.85%

  22.90%

  20.77%

  14.52%

  14.15%

  10.93%

  11.96%

  1.48%

  2.27%

  Change or Die !

  50.17%

  2025.3
  2025.9
  
  
  
  
  

  Major shareholders

  • No. of shareholders: 7,435 (+212 since March 31, 2025)

  • No. of shareholders with voting rights: 5,875 (+117 since March 31, 2025)

  • Treasury stocks (25 thousand shares) are not included when calculating the ratio of shareholdings.

(Trust Account)

1. Custody Bank of Japan, Ltd.

   (Trust Account)

   3.38%

2. Mizuho Trust & Banking Co., Ltd. 3.25%

3. TDC SOFT Inc. 2.47%

4. Akemi Funakoshi 1.72%

5. Kaori Marubayashi 1.56%

   Individual Japanese Corp. Financial Inst. Non-Japanese Others

6. Custody Bank of Japan, Ltd.

(Trust Account E)

1.33%

Enhancement of return to shareholders

In FY2025 the Company distributed an interim dividend of ¥35 per share. The Company further expects to distribute a year-end dividend of ¥35 per share.

Dividend per share & dividend yield

Dividend payout ratio & total return ratio

35.00

45.00

25.00

25.00

25.00

25.00

20.00

20.00

20.00

16.67

16.67

16.67

16.67

2.9%

3.2%

2.6%

3.1%

3.6%

3.8%

3.9%

4.0%

4.5%

4.7%

116.0%

Change or Die !

48.3%

64.7%

73.4%

77.4%

44.1%

64.9%

[Target]

50～60％

50.9% 50.4%

46.0%

47.0% 49.1% 47.4%

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 2026.3

(forecast)

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3 2026.3

(forecast)

Dividend () Dividend yield (%)

Dividend payout ratio Total return ratio

©2025 ID Holdings Corporation. All Rights Reserved.

※Total return ratio = (Total dividends + Amount of purchase of treasury stock) ÷ Net income attributable to owners of parent

14

Stock Price (Month-End Closing) and Trading Volume Trends of IDHD

Indicators related to share price1 (as of October 31, 2025)

2.5x

Stock price +¥431 in 2025

Change or Die !

Trends in share price and volume2

Volume (thousands of shares) Share price (yen)

(Percentages in text boxes indicate comparison with

April 28, 2023

Full-year financial results: 29.7%

November 14, 2024 Conversion of BBsec to an affiliated company accounted

for by the equity method

February 14, 2025 Dividend increase announced

July 31, 2025

Q1 financial results: 38.3%

increase in operating income

1,144

October 31, 2025

Q2 financial results: 12.2% increase in net sales, 16.2% increase in operating income Forecast revised upwards

2,545

1,400

1,200

the same period of the previous fiscal year.)

February 14, 2023

Upward revision of forecast of full-year business results

increase in operating income

Mid-term target revised

upwards

October 31, 2023

Q2 financial results: 23.0% increase in operating income

1,685

Capital and operating partnership announced

851

January 31, 2025

Q3 financial results: 30.3% increase in operating income

757

733

2,025

1,000

800

836

469

546

January 31, 2023

Q3 financial results: 51.4%

increase in operating income

906

463

1,005

275

662

1,285

July 31, 2023

1,440

609

1,549 1,360

522

569 560

April 15, 2025

317

361 New Mid-term Management Plan announced

508

600

400

March 14, 2023

Increase in dividend announced, listing-criteria conformance plan announced

Q1 financial results: 30.7% increase in operating income

August 5, 2024

Collapse of Nikkei

share-price average

December 16, 2024

Absorption merger

0

among subsidiaries announced

April 30, 2025

Q4 financial results: 36.5% increase in operating income Dividend increase announced

200

1. PER and PBR are calculated based on net income per share as of March 2025, net assets per share as of March 2025 and the closing share price on October 31, 2025.

2. Volume is a monthly cumulative figure. Share price is the closing price on the last day of each month.

Change or Die !

1. Performance Overview for Q2

2. Mid-term Management Plan

Next 50 Episode Ⅲ: Jump!!!

Path of Growth Toward Achieving the Vision

To achieve the medium-term vision, the ID Group is setting two themes: a shift to a lean, high-profit

model and a transformation of culture to support it.

FY2029

Next 50 Episode Ⅲ: JUMP!!!

Achievement of a lean ID Group with high profit and excellent reputation

Change or Die !

FY2025 to FY2027

Net sales ¥50 billion

Gross profit (margin)

Next 50 Episode II: Ride on Time

Shift to a high-profit model

Transformation

of culture

¥15 billion (30%)

FY2022 to FY2024

Cultivation of a platform for growth in the DX era

Net sales ¥36.2 billion*

Gross profit (margin)

¥8.65 billion (23.9%)*

©2025 ID Holdings Corporation. All Rights Reserved.

Net sales ¥44 billion

Gross profit (margin) ¥12.3 billion

(28%)

60th anniversary of foundation 17

Overview of Next 50 Episode III "JUMP!!! "

Advancement of six key strategies including service portfolio, establishment of customer contact points and investment in human capital

Targets for Net Sales and Operating Income

Unit: Billions of yen

１

Service portfolio

Net sales

44.0

６

Management that is mindful of capital cost and share price

５

Global strategy

strategy

Change or Die !

Shift to a high-

profit model

Transformation of culture

４

２

Establishment of customer contact points

３

Strategy for investment in human capital

Operating income (margin)

41.0

38.5

36.2

5.7

13.0%)

4.0

10.4%)

4.4

10.7%)

(

(

(

FY2024

FY2025*

FY2026

FY2027

M&A strategy

* On October 31, 2025, we announced the "Notice Regarding Revision of Forecast of the Full-year Consolidated Business Results," revising upward our net sales and profit forecasts for FY2025.

1. Service Portfolio Strategy: Overview

2030.3 target

2028.3 target

2025.3 result

22.2%

Application

development

Improvement of gross profit margin

through effective use of leading-edge technology and effective project selection and focus

Targets for gross profit margin

29.0%

26.5%

System

management

2030.3 target

2028.3 target

2025.3 result

Consulting

8.2

15.7

（¥ billion）

Cybersecurity

22.4

Targets for net sales

Expansion of the scale of net sales

by concentrating resources and providing high-value-added services

IT

infrastructure

Market growth potential

Aiming to Jump!!! by growing the scale of business in Focus areas and profitability in Base areas.

Target:

Expansion of the scale of business

Problem Child

Dog

Cash

Cow

Star

Target:

Improvement of profitability

Change or Die !

Note: The above overview was prepared based on a BCG matrix analysis and

the ID Group's own perspective.

Profitability

Shift to a high- Transformation

1. Service Portfolio Strategy: Numerical Targets

profit model

of culture

Personnel shift

Shifting of personnel from Base areas to

Focus areas

FY2025

H1 results: 16 people

(Full-year target: 50 people;

progress rate: 32.0%)

Educational and training expenses

Expansion of education and training, including upskilling

FY2025

H1 results: ¥210 million

(Progress rate on full-year target:

49.3％)

Formation of in-house systems

Implementation of measures to foment innovation

• ISO42001

  (Management systems related to AI)

• ISO56001

(Innovation management systems)

Change or Die !

Shift to a high-

Transformation

1. Service Portfolio Strategy: Human Resources: Business Partners

profit model

of culture

Securing of high-value-added personnel by strengthening certification of core partners and training personnel for mutual assistance

【FY2025 H1】

2,115 people

Change or Die !

of which 787 are core partners

2,500 people

Strengthening Partnerships

• Early strategic securing of partners through enhanced information gathering and management

• Development of co-creation partners for

new business ventures

Core

partners

2,000 people

Enhancing Governance

• Promoting sound transactions and

partners' health management through

strengthened project management

FY2024 FY2027 target

Shift to a high-

Transformation

1. Service Portfolio Strategy: R&D Strategy

   profit model

   of culture

   The ID Group will strive to improve competitiveness by focusing on R&D and implementation to effect
   
   

   progress in existing businesses and create new services.

   
   
   

   Expansion of deployment of ID-VROP

   VR

・Advancement of technical

research through industry-academic partnerships

・Acquisition of 6 patents related

to blockchain and AI

(Patents related to solutions for sharing and managing medical information using blockchain, etc.)

Research to expand application

of patented technologies

・Research toward implementation

of the latest technologies

・Spread of use of next-generation

systems

・Formation of development

processes that incorporate AI

・Promotion of AI application in

consulting

Promotion of application of AI in

customers' business areas

Change or Die !

Investment in R&D: ¥1 billion over three years

Shift to a high-

Transformation

1. Establishment of Customer Contact Points

profit model

of culture

The ID Group will JUMP!!! by taking a proactive and cross-cutting approach, establishing new

marketing and business functions.

Marketing activities of the ID Group

Establishment of new marketing and

Main targets of the ID Group

Existing and large-scale customers

Finance, manufacturing, transportation, public services (corporate users)

From relationships built in Base areas, the ID Group aims to:

・Secure major projects based on DevSecOps

・Become customers' medium-to-long term strategic IT partner

Change or Die !

Information and communications

(major system integrators)

Through major system integrators, the ID Group aims to:

・Leverage customer solutions to expand order

acceptance

・Cross-apply to other companies in the same field expertise accumulated by working with existing customers

New customers

Leveraging proposals focused on Focus areas, the Group aims to expand orders received for system management and application development.

1. Marketing Direction by Customer Industry

   Starting with security and consulting, the Group aims to expand operations with customers into service
   
   
   
   
   
   
   
   

   domains in which they do not yet participate while deepening its engagement in existing domains.

   Change or Die !

   Expansion → Holding Contraction

   Category Share of net sales	Industry Share of net sales	Customer	Focus areas		Base areas
   			Security and consulting	IT infrastructure	Application development	System management
   10 companies with direct contracts 43％	Manufacturing 3.7％	Company A				*
   			Expansion in security, consulting, IT infrastructure and application development
   	Transportation 2.1％	Company B				*
   			Expansion in security, consulting, IT infrastructure and application development
   	Finance 27.1％	Companies: C, D, E, F, G and H			*	*
   			Despite wrap-up of major projects with some customers, the Group is aiming for expansion, focusing on security and consulting.
   	Public sector 9.8％	Company I, Company J
   			Expansion in all service domains
   5 strategic partners 32％	Operating vendors 14.8％	Company K, Company L			ー
   	Development vendors 17.4%	Companies: M, N and O			*	*
   			Despite wrap-up of major projects with some customers, the Group is aiming for expansion, focusing on security, consulting and IT infrastructure.

   ©2025 ID Holdings Corporation. All Rights Reserved.

   Note: Share of net sales is as of the end of FY2024. 24

   
   
   

   Shift to a high-

   Transformation

   
   
   

2. Strategy for Investment in Human Capital

profit model

of culture

The ID Group will JUMP!!!

Career

awareness

active role.

to become a corporate Group where a professional workforce plays an

Investment in human capital:

・Providing employees with opportunities that align with their long-term

career visions

・Support to strengthen employees' creativity and ability to change to achieve their career visions

・ Merit-based personnel evaluation system and treatment linked to upskill

¥6 billion over three years

・Reduction of overtime work, improvement in uptake of paid leave

・Health support to enable employees to work energetically regardless

of workplace

・Expansion of options for work flexibility in response to each life event

A self-starting workforce

・A culture of repeatedly applying oneself to problems to obtain results that exceed expectations

・An organization with a high degree of psychological safety, respecting diversity and human rights

・An organization filled with mutual respect and proud of its work

・Enhancing Innovation Management (Efforts Towards Obtaining ISO 56001)

Improved corporate value

Improved employee

engagement

Corporate

culture

Health

management

Change or Die !

(Including recruitment expenses, educational and training expenses, pay rises, etc.)

JUMP!!!

Shift to a high-

4. M&A Strategy

profit model Transformation

of culture

Aiming to expand its workforce, technology and license portfolio and customer base, the ID Group

Change or Die !

will JUMP!!!

through M&A and capital and business alliances.

Targets of M&A and capital and business alliances

Net sales from operations:

From ¥5 billion

Personnel

Securing personnel for upstream processes

・Consultants

・Project managers

Technology and licenses

Securing technologies for Focus areas

・SaaS and packaged solutions

・Network-related solutions

・Cybersecurity and IT infrastructure

areas

Customers

Attracting excellent customers

・New customers in existing industries

・Customers in new industries

Shift to a high- Transformation

5. Global Strategy

profit model

of culture

The ID Group seeks to be a true IT strategic partner offering Japanese-quality IT services.

Vision

The Group aims to expand operations, focusing on securing business at overseas bases of Japanese-affiliated companies.

Target

Marketing

Change or Die !

Supporting overseas expansion by financial institutions and other major clients

Delivery

Undertaking contracts for overseas projects as a domestic corporate Group

Net-sales target for global strategy

¥2

billion

JUMP!!!

¥1.45

billion

Establishment of a Global Delivery Center

Plan

Sharing of technology and resources

Establishment of a reverse-offshore framework

Sales activities and customer management based on gathering information on market trends and advanced solutions

2025.3 result 2028.3 target

6. Management That is Mindful of Capital Cost and Share Price (ROE and ROIC)

Over the past 10 years, return on equity (ROE) and return on invested capital (ROIC) have been on an improving trend.

Going forward the Group will, in a sustainable fashion, continue to aim for ROE greater than shareholder capital cost and ROIC greater than weighted average cost of capital (WACC).

Trends in ROE and ROIC

Unit: %

18.7

ROE

Level exceeding shareholder capital cost (5.2%-8.5%)

15.3

14.2

15.9

12.9

8.1

8.3

9.5

11.2

8.4

8.3

15.0

11.7

12.0

11.3

6.3

6.9

8.2

6.8

9.2

7.3

8.1

ROIC

Level exceeding WACC

(4.8％-7.9%)

M&A is conducted with the aim of improving ROIC.

Change or Die !

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

• Return on invested capital (ROIC) ＝（Operating income - income taxes) ÷ (net assets + interest-bearing debt)× 100

• Reference calculation of shareholder capital cost and WACC based on Mizuho Securities Co., Ltd. and Mizuho Trust & Banking Co., Ltd.

・Shareholder capital cost (5.2-8.5％) ＝risk-free rate (about 1.55％) + beta (0.6-0.95) ×market risk premium (6.0-7.37％)

・WACC＝interest-bearing debt ÷ (market cap ＋ interest-bearing debt) × (1－effective tax rate) × debt cost ＋market cap ÷(market cap ＋ interest-bearing debt )× shareholder capital cost

Market cap: ¥31.5 billion (as of March 31, 2025, after deduction of treasury stock); debt cost: 0.4％-0.49％; effective tax rate: 30％-38％

1. Management That is Mindful of Capital Cost and Share Price (Cash Flow Allocation)

   By boosting profitability and applying financial leverage, the ID Group will secure capital, which it will allocate
   
   

   strategically to improve corporate value.

   Adjusted operating cash flow (operating cash flow plus amount of investment appropriated as expenses)

   ¥16 billion

   Change or Die !

   FY2025-FY2027 cumulative period

   • Improvement in sustainable profitability Shift to key businesses EBITDA ¥15 billion

   • Investment in human capital (¥6 billion)

     Investment

     ¥13 billion +

     Hiring, education, training, upskill, increase in average salary, etc.

   • Investment in management reform (¥1 billion)

     Investment in in-house IT systems to improve productivity and make

     profitability transparent

   • Investment in R&D (¥1 billion)

     Focus on research in advanced technologies such as AI, VR and blockchain

   • Investment in M＆A and alliances

     Acquisition of companies with synergies in Focus areas such as IT

     infrastructure and cybersecurity

     • Use of leverage within a scope that preserves financial soundness

       Cash in Cash out

     • Dividends

       Additional debt

       ¥1 billion +

       Return to

       shareholders

       ¥4 billion +

       A stable and continuous dividend is a basic management principle.

       Target of total return ratio of 50％-60％

     • Acquisition of treasury shares Flexible implementation

Key Numerical Targets of Current Mid-term Management Plan

Change or Die !

Note: The figures in this table do not include amounts from inorganic growth by M&A.

The forecasts in these materials are prepared using information available at the time of publication. Actual business results may differ from these forecasts as a result of a wide range of factors.