Financial Results Presentations Full-Year(24/4/1-25/3/31)

President, Representative Director

and Group CEO

Masaki Funakoshi

TSE Prime Market

Code

4709

ID Holdings Corporation April 1, 2024 - March 31, 2025 Financial Results Presentations

Our website can be accessed from the QR Code.

1

©2025 ID Holdings Corporation. All Rights Reserved.

May 20, 2025

Financial institutions, public services (energy), manufacturing, transportation/traffic, information and communication, medical care...

We develop and protect the IT behind the institutions and services that are essential to our daily lives.

IT realizing everyday safety

• Railroad operation

  management

• Aircraft maintenance

management

Change or Die !

IT supporting corporate activities

• Manufacturing industry

• Banks, financial institutions

• Companies' information

  system divisions

  IT rooted in everyday life

  • Electricity, gas

  • Optical communication

    network

  • TV broadcast, newspaper

Illustration by: Loose Drawing https: //loosedrawing.com/

IT driving society and the economy

• Retail outlets (POS

  settlement systems)

• Electronic medical records

  of hospitals

• AI research at universities

Change or Die !

1. Performance Overview for FY2024

2. Mid-term Management Plan

   Next 50 Episode Ⅲ: Jump!!!

   
   
   
   
   
   
   Sales in DX-related businesses were favorable. Against a background of a policy of price adjustment, results in net sales and operating income were well above targets.
   
   

   Note: In the Mid-term Management Plan disclosed on April 28, 2023:

   1. The targets for FY2023 were adjusted to ¥32.8 billion for net sales and ¥2.63 billion for operating income.

   2. The targets for FY2024 were adjusted to ¥35 billion for net sales and ¥3 billion for operating income.

Change or Die !

Unit: Billions of yen

Net Sales

36.2

Unit: Billions of yen

Operating Income

3.78

Original target

35.0

Target after adjustment in Mid-term Management Plan

Result

32.8 32.6

32.0

31.1

29.0

30.4

Original target

Target after adjustment in Mid-term Management Plan

Result

3.00

Operating income

margin (result)

2.76

2.63

2.42 2.55

1.95

2.20

7.8%

8.5%

9.7%

FY2022

FY2023 FY2024

FY2022

FY2023 FY2024

Change or Die !

• The four basic strategies were firmly implemented and return to stakeholders was achieved.

・ Against a background of growth in advanced system management and IT infrastructure, targets for both net sales and operating income were met and exceeded.

・ Share of DX-related net sales as a proportion of overall net sales improved to 64.2％, achieving

the target of 60% or more.

Human Resource Strategy

・ Efforts on qualifications were fruitful. The rate of qualification as DX engineers reached over 75% of employees.

・ Even amid a chronic shortage of personnel, by strengthening partnerships, the ID Group increased the number of business partners (BPs) as a proportion of all employees.

・ The Group used Sanin Business Process Outsourcing Center, overhauled in-house systems and shifted human resources from administrative to operating divisions. Against this background, selling, general and administrative (SG&A) expenses ratio were reduced.

Reference: SG&A expenses ratio in FY2024

Target: 13.9% or less Result: 13.4％

・Head-office electricity was switched to sustainable energy, achieving 100% elimination of CO2emissions.

・ Employees' awareness of environmental issues was kindled through voluntary participation in exercises such as beach cleaning.

SDGs Strategy

Target of 5% increase

Employees in annual salary

achieved!

(+15.4%)

BPs

Target of 5% increase in unit prices

achieved!

Shareholders

Dividend per share

￥40 ⇒ ￥70

(FY2021) (FY2024 forecasted)

Overview of Financial Results for FY2024

Net Sales ¥36,274 million (+11.0% YOY)

Change or Die !

⊕ All services, paced by IT infrastructure, posted solid growth trends, as the Group revised order acceptance prices and strategically committed management resources to the highly profitable fields of advanced system management and IT infrastructure.

Operating Income ¥3,780 million (+36.5% YOY)

Operating Income Margin 10.4% (+1.9P YOY）

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

⊕ High-margin DX-related business expanded.

( million)

-

36,274

Diff.

(% of net sales)

Results

(% of net sales)

2025.3

2024.3

Net sales 32,680 - 3,593 +11.0%

76.1%

27,616

Cost of sales 25,527 78.1% 2,088 +8.2%

23.9%

8,658

Change or Die !

Gross profit 7,153 21.9% 1,504 +21.0%

12.1%

4,390

13.4%

4,877

SG&A expenses 4,384 13.4% 493 +11.2%

EBITDA13,421 10.5%

969 +28.3%

10.4%

3,780

Operating income 2,769 8.5% 1,011 +36.5%

6.6%

2,389

10.6%

3,862

Ordinary income 2,860 8.8% 1,001 +35.0%

Net income attributable to owners of parent

1,777 5.4%

612 +34.5%

142.54

Earnings per share (EPS) () 106.42 -

EPS before amortization

of goodwill2() 133.04 -

36.12 -

-

-

32.39 -

165.43

Note:

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

31,101

467

(1.5%)

11,458

(36.8%)

Change or Die !

2,934

(9.4%)

2,602

(8.4%)

13,637

(43.9%)

-135

-29.1%

+114

+1.0%

+385

+13.1%

+259

+10.0%

+956

+7.0%

32,680

331

(1.0%)

11,573

(35.4%)

3,319

(10.2%)

2,862

(8.8%)

14,593

(44.7%)

+139

+42.0%

+908

+7.8%

+675

+20.4%

+1,362

+47.6%

+508

+3.5%

36,274

470

(1.3%)

12,481

(34.4%)

3,994

(11.0%)

4,224

(11.6%)

15,102

(41.6%)

(¥ million)

Figures in brackets indicate % of net sales

Others

Software Development

Cyber Security, Consulting and Training

IT Infrastructure

System Management

Key points of net sales by service

• System Management ⊕ Expansion of order acceptance and securing of new projects, including projects related to relocation of data centers for customers in finance and major IT vendors

  ⊕ Revision of unit prices to reflect increases in labor and outsourcing expenses

• IT Infrastructure ⊕ Order acceptance for cloud-computing projects from customers related to finance, the public sector and transportation

  ⊕ Expansion of transactions with major IT vendors

• Cyber Security, Consulting and Training ⊕ Expansion of order acceptance in cybersecurity and consulting

• Software Development ⊕ Expansion of order acceptance from customers in the public sector and finance

⊕ Expansion of transactions due to strengthened sales efforts to major IT vendors

2023.3 2024.3 2025.3

4,000

3,500

2,964

System Management

3,226

3,608

40.0%

35.0%

IT Infrastructure

1,279

■■ Gross profit (¥ million)

Gross profit margin (%)

3,000

2,500

2,000

1,500

21.7%

22.1%

30.0%

23.9%25.0%

20.0%

15.0%

644

24.8%

796

27.8%

30.3%

Change or Die !

1,000

10.0%

500 5%0.

Cybersecurity, Consulting and Training

0

2023.3 2024.3 2025.3

Software Development

0.0%

2023.3 2024.3 2025.3

Efforts to improve gross profit margin

1,400

1,200

1,000

960

1,271

50.0%

45.0%

40.0%

35.0%

2,535

2,117

2,517

800

600

621

21.2%

28.9%

31.8%30.0%

25.0%

20.0%

22.1%

18.3%

20.2%

150%.

400

100%.

200

50%.

0

2023.3 2024.3 2025.3

0.0%

2023.3 2024.3 2025.3

DX-related business

Promoting customer's DX by combining existing IT services with cutting-edge technologies such as cloud and AI.

（¥ million）

Change or Die !

47.6%

14,810

55.5%

18,137

DX-related sales & sales ratio

5,325

5,106

3,113

259

1,509

64.2%

23,304

Expansion focused on advanced system management, remote support,

security and IT infrastructure

【 Gross profit margin 】

26.1% (+1.4P YOY)

About 5 points higher than

non-DX-related business

242

2,208

2023.3 2024.3 2025.3

Security and IT Infrastructure

Remote Support, Advanced Development & System Management* Cloud

Consulting and Training

Automation and Optimization Sales ratio

*"Advanced System Management" has been added from the beginning of FY2023.

Transactions with major, high-value customers that are actively investing in IT account for over 80% of net sales.

(¥ million)

Figures in brackets

indicate % of net sales

31,101

Change or Die !

6,470

(20.8%)

4,029

(13.0%)

5,133

(16.5%)

8,020

(25.8%)

3,099

(10.0%)

4,347

(14.0%)

-138

-2.1%

-461

-11.5%

+684

+13.3%

+393

+4.9%

-230

-7.4%

+1,331

+30.6%

32,680

6,332

(19.4%)

3,568

(10.9%)

5,818

(17.8%)

8,414

(25.7%)

2,868

(8.8%)

5,678

(17.4%)

+42

+0.7%

-236

-6.6%

+1,173

+20.2%

+1,189

+14.1%

-134

-4.7%

+1,559

+27.5%

36,274

6,374

(17.6%)

3,331

(9.2%)

6,992

(19.3%)

9,603

(26.5%)

2,734

(7.5%)

7,238

(20.0%)

Major Customers (Non-Finance)

⊕ Expansion of transactions with clients related to the public

sector, manufacturing and broadcasting, with focus on software development

Major Customers (Finance)

⊕ Expansion of transactions in software development and IT infrastructure

⊕ Acceptance of orders for new projects in system

management, etc.

IBM Group

⊕ Expansion of transactions in software development

⊕ Acceptance of orders for new projects in system management and IT infrastructure, etc.

Reference:

(2,000)

2023.3 2024.3 2025.3

• IBM Group ■ Hitachi Group ■ Major Customers (Finance)

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

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

(¥ million)

Figures in brackets

indicate % of net sales

Change or Die !

Transportation

1,525

(4.2%)

Manufacturing

3,373

(9.3%)

2,890

Others 4,914

(13.5%)

Finance

16,520

(45.5%)

Information & Communication

(8.0%)

Public

7,049

(19.4%)

*"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 !

Change or Die !

2024.3

(¥ million)

Main Factors

・Contract liabilities

increased

+561

・Income taxes payable increased

+498

・ Provision for bonuses

increased

+285

・Interest-bearing debt decreased

-601

2025.3

Main Factors

・Investment securities increased

+2,206

・Accounts receivable

-trade increased

+872

・Decrease due to amortization of goodwill

-383

・Cash and deposits decreased

-237

Change or Die !

Equity Ratio

60.3％

Current Ratio

180.2％

Goodwill

475 million

Operating Activities

3,557

Investing Activities

Free Cash Flows*

Financing Activities

Interest-bearing Debt

Change or Die !

1,422

・Purchase of investment securities

(-2,027)

・Purchase of property, plant and equipment (-171)

1,189

1,278

・Net decrease in short-

term loans payable (-400)

・Repayment of long-term loans payable

(-200)

・Cash dividends paid

(-854)

2,551

1,950

・ Net income before income taxes

(3,837)

・Corporation tax, etc. paid (-1,124)

・Increase in notes and accounts receivable-trade

(-872)

・Amortization of goodwill (383)

・Increase in notes and accounts payable-trade

(344)

-233

-2,279

-432

-1,509

(¥ million)

• 2024.3

■ ■ 2025.3

Main reasons in FY2024

・Increase in provision for bonuses (285)

©2025 ID Holdings Corporation. All Rights Reserved.

*Free Cash Flows = Cash Flows from Operating Activities ＋ Cash Flows from Investment Activities 16

11,288

(¥ million)

■ 2024.3 ■ 2025.3

Change or Die !

5,991

4,985

2,362

719

1,022

1,501

2,392

1,093

2,733

314

154

Total

System Management

IT Infrastructure Cybersecurity,

Consulting and

Training

Software Development

Others

Shareholders (As of March 31, 2025)

Shareholding by investor type

Change or Die !

50.87% 50.17%

2024.3

2025.3

Major shareholders

• No. of shareholders: 7,223 (+590 since March 31, 2024)

• No. of shareholders with voting rights: 5,758 (+370 since March 31, 2024)

  21.36%

  22.90%

  14.58%

  14.52%

  11.50%

  10.93%

  1.69%

  1.48%

  
  
  

• Treasury stocks (23 thousand shares) are not included when calculating the ratio of shareholdings.

(Trust Account)

Individual Japanese Corp. Financial Inst. Non-Japanese Others

(Trust Account E)

1. Akemi Funakoshi 1.72%

2. Kaori Marubayashi 1.56%

The Group expects to increase the year-end dividend for FY2024 by ¥15. Successive increases in dividends have increased dividends by a factor of 4.5 over the past 10 years!

Dividend payout ratio & total return ratio

Dividend per share & dividend yield

4.7%

4.5%

The Group plans to distribute a commemorative divided of ¥5, increasing the

dividend by ¥15!

4.0%

3.9%

3.8%

3.1%

2.6%

3.2%

64.7%

48.3%

46.0%

16.67

16.67

16.67

16.67

20.00

20.00

20.00

25.00

25.00

25.00

35.00

45.00

Change or Die !

116.0%

73.4%

77.4%

44.1%

64.9%

50.9% 50.4%

[Target]

50～60％

47.0% 49.1% 48.8%

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3

(forecast)

2026.3

(forecast)

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3 2024.3 2025.3

(forecast)

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

19

Indicators related to share price1 (as of April 30, 2025)

13.7x

2.4x

Trends in share price and volume2

Change or Die !

Volume (thousands of shares) Share price (yen)

2,500 (Percentages in text boxes indicate comparison with the same period of the previous fiscal year.)

2,000

February 14, 2023

April 28, 2023

Full-year financial results: 29.7% increase in operating income Medium-term target revised upwards

October 31, 2023

Q2 financial results: 23.0% increase in operating income

November 14, 2024 Conversion of BBsec to an affiliated company accounted for by the equity method Capital and operating partnership announced

January 31, 2025

Q3 financial results: 30.3% increase in operating income

February 14, 2025 Dividend increase announced

1,1441,200

1,959

1,500

546

Upward revision of forecast of full-year business results

662

1,285

1,440

1,685

609

851

1,549 1,360

1,594

1,755

569 560

1,000

800

1,000

469

906

463

1,005

522

451

361

April 15, 2025

600

836

500

344

January 31, 2023

275

March 14, 2023

July 31, 2023

Q1 financial results: 30.7% increase in operating income

August 5, 2024

Collapse of Nikkei

share-price average

317

December 16, 2024

New Mid-term Manag400 ement Plan announced

April 30, 2025

Q4 financial results: 36.5%

Q3 financial results: 51.4% increase in operating income

0

Increase in dividend announced, listing-criteria conformance plan announced

Absorption merger

among subsidiaries announced

increase in operating income Dividend increase announced

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2022

2023

2024

2025

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 April 30, 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 FY2024

2. Mid-term Management Plan

Next 50 Episode Ⅲ: Jump!!!

To concentrate engagement with customers and strengthen Group-wide synergies, thereby further raising profitability,

the Group plans to merge four domestic operating companies: ID, DCM, DX and AIF.

4 overseas companies

AI Factory

(A special subsidiary)

K.K. PURAIDO

4 overseas companies

AI Factory

(A special subsidiary)

K.K. PURAIDO

ID AI Factory (AIF)

DX CONSULTING (DX)

ID DATA CENTER MANAGEMENT

(DCM)

INFORMATION DEVELOPMENT (ID)

Change or Die !

INFORMATION

DEVELOPMENT

（ID）

AI is serving as "digital labor," taking over some tasks previously handled by humans.

Upstream processes

Change or Die !

AI Area

Human Area

Personnel are flexibly committed to address individual needs and high-level engineering requirements that AI cannot yet handle, such as consulting and upstream processes (definition of requirements, overall design, specialized technical areas).

Automation of programming (coding) and help desks

Arrival of a society in which standardized and simple tasks requiring general knowledge are switched over to AI

Downstream processes

Prospects for the business and social environments remain unclear. Under current conditions, vigorous

・Japan's aging demographic profile and

(Society) low birth rate have led to shortages in

personnel.

(Industry)

・Democratization of IT by users and a trend of industry reorganization by

major companies and funds

(Customers)

・Fluctuation risk in IT investment in

view of customers' changing

business environment

・Issues regarding the profitability of application

(Business) development

・A business portfolio weighted toward relatively

low-growth, low-profit businesses

・Business style based mainly on

(Organizations)subcontracting, resulting in a passive,

compartmentalized sales organization

(Personnel)・Short supply of engineers for high-growth, high-profit fields

Internal environment

External environment

growth is difficult to achieve.

Change or Die !

Medium-term Vision

Not an extension of EpisodeⅡbut discontinuous growth

JUMP!!!

to a high-profit, high-growth business model ⇒ Service portfolio (pp. 27-35)

JUMP!!!

to a high-presence organization that can survive in the IT industry

* Establishment of customer contact points (pp. 36-37)

JUMP!!!

to a proactive culture ⇒ Investment in human capital (pp. 38)

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 25

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

Operating income (margin)

41.0

38.5

36.2

5.7

13.0%)

4.0

10.4%)

4.4

10.7%)

(

(

(

Change or Die !

Net sales

44.0

６

Management that is mindful of capital cost and share price

５

Global strategy

strategy

Shift to a high-profit model

Transformation

of culture

４

２

Establishment of customer contact points

３

Strategy for investment in human capital

FY2024

FY2025

FY2026

FY2027

M&A strategy

©2025 ID Holdings Corporation. All Rights Reserved. 26

Shift to a high-

1.1 Service Portfolio Strategy: Overview

profit model Transformation

of culture

Aiming to JUMP!!!

by growing the scale of business in Focus areas and profitability in Base areas.

FY2024 FY2027 target

Market growth potential

Market Forecast

• Further promotion of corporate and public

  digital shift

  Change or Die !

• Demand for migration to cloud, containers, etc.

• Measures against intensifying security threats

¥8.2 billion⇒ ¥15.7 billion

FY2029 target

Consulting

⇒¥22.4 billion

Cybersecurity

Problem Child

IT infrastructure

Star

Dog Cash Cow

Application development

System management

Market Forecast

· Cost awareness toward conventional IT

and promotion of AI utilization

operation and mechanization trends

⇒Slowing growth through unmanned

Base areas: Improvement in

gross profit margin

FY2024

FY2027

target

FY2029

target

22.2%⇒ 26.5％⇒

%

29

©2025 ID Holdings Corporation. All Rights Reserved.

Note: The above overview was prepared based on a BCG matrix analysis and the ID Group's own perspective.

Profitability 27

Shift to a high-

Transformation

1.2 Service Portfolio Strategy: By Business Area (1)

profit model

of culture

Resources will be concentrated on Focus areas. Sales will be expanded by providing value-added services.

Numerical targets: Net sales

FY2025 FY2026 FY2027

¥8.7 billion (+6.1%) ¥11.6 billion (+34%) ¥15.7 billion(+35%)

Topic

Business Strategy

Technology/Resource

Service

Consulting

Cybersecurity

infrastructure

IT

Focus areas

Change or Die !

Completion of a consulting

group with expertise in all processes of IT services

Expansion of coverage of service areas

Establishment of a highly skilled unit to meet forecasted demand

• Establishment of AI consulting

• Expansion of upstream projects in cybersecurity, IT infrastructure and system management

• Creation of streamlined DevSecOps services in collaboration with BroadBand Security, Inc.

• Strategic project participation of skill

  holders in IT infrastructure

• Active development of Openshift

  start packs

  • Additional consulting skills for high-end talent in application development, cybersecurity, IT infrastructure and system management

    ・Support for Focus areas from IT infrastructure and system management

    ・Strengthening of the resource framework through collaboration with other companies and use of partners

  • Developing engineers for cloud/containers/virtualization/ upstream design

    ・Upskill of system management personnel

    
    
    

    Shift to a high-

    Transformation

    
    
    

    1.2 Service Portfolio Strategy: By Business Area (2)

    profit model

    of culture

    The ID Group will focus closely on improving the profit margin of Base areas, to complete their conversion
    
    

    into high-profit areas

    Numerical targets: Gross profit margin

    FY2025 FY2026 FY2027

    25.1% (+2.9pp) 25.5% (+0.4pp) 26.5% (+1.0pp)

    Service

    Topic

    Business Strategy

    Technology/Resource

    Application

    development

    
    
    

    Base areas

    Change or Die !

    Determination to exponential improvement in profitability

  • Achieving higher profitability through

    price optimization and contract review

  • Acquisition of SaaS/packaged solution

    projects

  • Cost control through project management

    ・Hiring and training of project managers

• AI utilization and near-shore/off-shore optimization

  System management

  Further enhancement of

  operational services

  • Expansion of upstream projects

    
    
    

    twining around security as well

  • Withdrawal from low-profit projects and shift to high-profit projects through selection and concentration

  • Promotion of VROP utilization

    • Fostering next-generation IT

      service management personnel

    • Strengthening collaboration with

core partners

Shift to a high-

Transformation

Change or Die !

1.3 Service Portfolio Strategy: Numerical Targets

profit model

of culture