Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2025

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Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. Should there be any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

April 11, 2025

Consolidated Financial Results

for the Third Quarter of the Fiscal Year Ending May 31, 2025

Dividend payment commencement date: –

Preparation of explanatory materials for financial results: Yes

Holding of a briefing on financial results: Yes (For Institutional Investors, Analysts)

(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Cumulative Third Quarter of the Fiscal Year Ending May 31, 2025 (June 1, 2024 to February 28, 2025)

(2) Consolidated financial position

(Reference) Shareholders’ equity: As of February 28, 2025: ¥11,706 million As of May 31, 2024: ¥11,036 million

(Note) The “Accounting Standard for Current Income Taxes” and related accounting guidance are applied from the beginning of the first quarter of the consolidated fiscal year under review. The figures for the fiscal year ended May 31, 2024 are after retrospective application of the foregoing.

2. Dividends

2. In line with the change in shareholder return policy, the Company has set a DOE (Dividend on Equity Ratio) target of 4.0% or higher. Hence, based on the information available as of the date of the publication of this material, the theoretical value of the annual dividend for the fiscal year ending May 31, 2025, would be 43 yen. However, given that figures could fluctuate depending on a variety of factors, making it difficult to calculate the annual dividend with a high degree of accuracy, the forecast announced on January 10, 2025, remains unchanged at this time.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending May 31, 2025

(June 1, 2024 to May 31, 2025)

(% figures show year-on-year change for the full year and quarter)

(Note) 1. Amendment to forecasts of financial results recently announced: None

2. The Company has implemented an ESOP and Directors’ stock compensation plan both in the form of stock benefit trusts. Accordingly, profit per share is calculated based on the average number of shares during the fiscal year, excluding the number of treasury shares, which includes Inter Action stock held by the stock benefit ESOP trust accounts and Directors’ compensation stock benefit trust accounts.

1. Application of special accounting for preparing quarterly consolidated financial statements: None
2. Changes in accounting policies and estimates, and retrospective restatements
1. Changes in accounting policies in accordance with revision of accounting standards: Yes
2. Changes in accounting policies other than item (i) above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None

(Note) For details, refer to page 8 of the attached materials, “2. Quarterly Consolidated Financial Statements and Notes (3)

Note regarding the quarterly consolidated financial statements (Notes on changes in accounting policies).”

1. Number of shares issued (common shares)
1. Number of shares outstanding at end of period (including treasury shares)

(ii) Number of treasury shares at end of period

(iii) Average number of shares during period

(Note) The Company has implemented an ESOP and Directors’ stock compensation plan both in the form of stock benefit trusts. Accordingly, treasury shares, as stated, include Inter Action stock held by the stock benefit ESOP trust accounts and Directors’ compensation stock benefit trust accounts.

• Review of the attached quarterly financial results conducted by certified public accountants or an audit firm: None
• Proper use of earnings forecasts, and other special matters
  The above forecasts of consolidated financial results are based on certain assumptions on economic situation, market trends, etc. deemed to be reasonable when the forecasts were made. Consequently, actual results may differ from the forecasts due to a variety of future factors. For details of the above forecasts, refer to“(3) Explanation of forward-looking information including consolidated earnings forecasts” under “1. Financial Results” (page 3) of the Attached Materials.

[Attached Materials]

Index

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1. Financial Results

1. Explanation of quarterly operating results
   Net sales and operating profit in the Inter Action Group’s financial results for the first nine months of the consolidated fiscal year under review rose year on year. This is due to strong sales of the products in the Internet of things related works and promotion business of Industry 4.0 segments.
   As a result of these business activities, the Inter Action Group’s financial results for the first nine months of the consolidated fiscal year under review were as follows. Net sales rose by 8.7% to 5,303 million yen (compared with 4,880 million yen in the previous fiscal year); gross profit rose by 27.2% to 2,464 million yen (compared with 1,938 million yen in the previous fiscal year), largely due to the increase in net sales; operating profit rose by 71.0% to 1,273 million yen (compared with 745 million yen in the previous fiscal year); ordinary profit rose by 56.0% to 1,275 million yen (compared with 817 million yen in the previous fiscal year); and profit attributable to owners of parent excluding income taxes rose by 64.2% to 902 million yen (compared with 549 million yen of profit attributable to owners of parent in the previous fiscal year).
   The overall performance of each business segment was as follows.
   (Internet of things related works)
   During the first nine months of the consolidated fiscal year under review, net sales to this segment’s external customers rose by 14.8% year on year to 3,175 million yen (compared with 2,767 million yen in the previous fiscal year), and segment profit rose by 39.9% to 1,657 million yen (compared with 1,184 million yen in the previous fiscal year). This reflects strong sales mainly of inspection illuminators for domestic customers.
   (Environmental energy related works)
   During the first nine months of the consolidated fiscal year under review, net sales to this segment’s external customers fell by 29.8% to 570 million yen (compared with 813 million yen in the previous fiscal year), and segment profit fell by 55.7% year on year to 20 million yen (compared with 46 million yen in the previous fiscal year). This is attributable to sluggish sales of main units and maintenance projects in the exhaust gas treatment system area despite strong sales of main units and maintenance projects in the drying deodorizer area.
   (Promotion business of Industry 4.0)
   During the first nine months of the consolidated fiscal year under review, net sales to this segment’s external customers rose by 19.8% to 1,557 million yen (compared with 1,299 million yen in the previous fiscal year), and the segment profit rose by 3,049.0% year on year to 209 million yen (compared with 6 million yen in the previous fiscal year). This reflects strong sales of products in the precision vibration isolation systems and gear testing systems areas.
2. Explanation of quarterly financial position
   As of the end of the third quarter of the consolidated fiscal year under review, net assets amounted to 13,574 million yen, a decrease of 71 million yen compared with the end of the previous consolidated fiscal year.
   Current assets amounted to 12,115 million yen, a decrease of 192 million yen compared with the end of the previous consolidated fiscal year. This is mainly attributable to decreases of 354 million yen in notes and accounts receivable – trade, 2,191 million yen in electronically recorded monetary claims – operating, and 497 million yen in work in progress, although there was an increase of 2,805 million yen of cash and deposits.
   Non-current assets amounted to 1,458 million yen, an increase of 120 million yen compared with the end of the previous consolidated fiscal year.
   As of the end of the third quarter of the consolidated fiscal year under review, liabilities amounted to 1,867 million yen, a decrease of 742 million yen compared with the end of the previous consolidated fiscal year. This is mainly attributable to decreases respectively of 104 million yen in notes and accounts payable – trade, 261 million yen in income taxes payable, 160 million yen in advances received (other current liabilities), and 142 million yen in accrued consumption taxes (other current liabilities).
   As of the end of the third quarter of the consolidated fiscal year under review, total assets amounted to 11,706 million yen, an increase of 670 million yen compared with the amount held at the end of the previous consolidated fiscal year. This is mainly attributable to recording of profit attributable to owners of parent of 902 million yen
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and a 180 million yen decrease in treasury shares, despite a year-end dividend of 276 million yen in the previous fiscal year and an interim dividend of 110 million yen in the fiscal year under review.

Note that the “Accounting Standard for Current Income Taxes” and related accounting guidance are applied from the beginning of the first quarter of the consolidated fiscal year under review. With respect to the figures related to the end of the previous consolidated fiscal year, comparison and analysis are performed based on the figures after retrospective application.

1. Explanation of forward-looking information including consolidated earnings forecasts There is no amendment to consolidated earnings forecasts disclosed on January 10, 2025.

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2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly consolidated balance sheets

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1. Quarterly consolidated statements of income and consolidated statements of comprehensive income (Quarterly consolidated statements of income)
   (June 1, 2024 – February 28, 2025)

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(Quarterly consolidated statements of comprehensive income) (June 1, 2024 – February 28, 2025)

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