Summary of Financial Statements for the Fiscal Year Ended March 31, 2026 (Consolidated)

May 8, 2026

Company name: JMDC Inc.

Listing: Tokyo Stock Exchange

Stock code: 4483

URL: https://www.jmdc.co.jp/en/ Representative: Ryo Noguchi, President and CEO

Inquiries: Yuzuru Kubota, Executive Officer and CFO TEL: +81-3-5733-5010

Scheduled date to hold an Ordinary General Meeting of Shareholders: June 25, 2026 Scheduled date to commence dividend payments: June 8, 2026

Scheduled date to file a Securities Report: June 24, 2026

Preparation of supplementary material on financial results: Yes

Holding of financial results presentation meeting: Yes (for institutional investors and analysts)

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

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

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

      	Revenue		Operating profit		Profit before tax		Profit
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 50,462 41,722	% 20.9 36.5	Millions of yen 10,521 8,717	% 20.7 59.0	Millions of yen 9,964 8,510	% 17.1 58.0	Millions of yen 6,812 7,382	% (7.7) 59.6

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 6,765 7,275	% (7.0) 57.9	Millions of yen 6,761 8,490	% (20.4) 83.3	Yen 103.44 111.34	Yen 102.46 110.23

      	Equity attributable to owners of parent Profit ratio	Total assets Ratio of profit (loss) before tax	Revenue Operating profit ratio
      Fiscal year ended	%	%	%
      March 31, 2026	8.4	6.6	20.9
      March 31, 2025	9.8	6.4	20.9

      Reference: Equity method profit (loss) Fiscal year ended March 31, 2026 ¥1 million

      Fiscal year ended March 31, 2025 ¥1 million

      EBITDA Fiscal year ended March 31, 2026 ¥13,178 million [20.5%] Fiscal year ended March 31, 2025 ¥10,932 million [18.6%]

      Notes:

      1. EBITDA: Operating profit + Depreciation and amortization ± Other income and/or expenses

      2. For the fiscal year ended March 31, 2025, the dispensing pharmacy support business is classified as discontinued operations and is presented separately from continuing operations due to the transfer of all shares of NOAH MEDICAL SYSTEM CORPORATION. Accordingly, the amount of revenue, operating profit, profit before tax, and EBITDA are presented on the consolidated statement of profit or loss to reflect only continuing operations.

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent	Owners' equity per share
      As of March 31, 2026 March 31, 2025	Millions of yen 158,538 143,020	Millions of yen 84,183 78,475	Millions of yen 83,677 78,022	% 52.8 54.6	Yen 1,278.09 1,192.97

   3. Consolidated cash flows

   	Cash flows from (used in) operating activities	Cash flows from (used in) investing activities	Cash flows from (used in) financing activities	Cash and cash equivalents balance at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 8,594 14,685	Millions of yen (10,556) (3,467)	Millions of yen (1,265) 6,484	Millions of yen 28,950 32,176

2. Cash dividends

   	Annual dividends					Total dividend (Total)	Payout ratio (Consolidated)	Ratio of owners' equity to gross assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	0.00	-	16.00	16.00	1,045	14.4	1.4
   Fiscal year ended March 31, 2026	-	0.00	-	18.00	18.00	1,177	17.4	1.5
   Fiscal year ending March 31, 2027 (Forecast)	-	-	-	-	-		-

   Note: The Company has decided that the year-end dividend per share for the fiscal year ended March 31, 2026 shall be

   ¥18. For more details, please refer to "Notice Concerning Dividends of Surplus" released on May 8, 2026.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

Reference: EBITDA Fiscal year ending March 31, 2027 ¥15,000 million [13.8%]

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

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

   3. Changes in accounting estimates: None

3. Number of issued shares (ordinary shares)

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

      As of March 31, 2026	65,439,808 shares
      As of March 31, 2025	65,373,808 shares

   2. Number of treasury shares at end of the period

      As of March 31, 2026	816 shares
      As of March 31, 2025	731 shares

   3. Average number of shares outstanding during the period

(Reference) Outline of non-consolidated financial results

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Revenue		Operating profit		Ordinary profit		Profit (loss)
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 14,381 12,625	% 13.9 10.0	Millions of yen 1,058 696	% 51.9 (63.1)	Millions of yen 1,965 2,139	% (8.1) 11.0	Millions of yen (124) 3,107	% - -

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2026	(1.90)	-
   March 31, 2025	47.56	47.08

   Note: Information on diluted earnings per share for the fiscal year ended March 31, 2026 is not presented since, although potential shares did exist, the recorded figure was a basic loss per share.

2. Non-consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
   As of	Millions of yen	Millions of yen	%	Yen
   March 31, 2026	103,595	62,375	60.2	952.57
   March 31, 2025	103,891	63,625	61.2	972.76

   Reference: Equity As of March 31, 2026 ¥61,995 million

   As of March 31, 2025 ¥63,100 million

   • Financial results reports are exempt from audits conducted by certified public accountants or an audit corporation.
   • Proper use of earnings forecasts, and other special items

Notes on forward-looking statements

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual business and other results may differ substantially due to various factors. For details regarding matters related to earnings forecasts, please refer to page 5 of the attached materials.

How to obtain supplementary documents on financial results

Supplementary documents on financial results are released via TDnet on the same day.

Attached Material Index

1. Outline of business performance 2

   1. Outline of business performance for the fiscal year under review 2

   2. Outline of financial position for the fiscal year under review 3

   3. Outline of cash flows for the fiscal year under review 4

   4. Future outlook 5

2. Basic approach to the selection of accounting principles 5

3. Consolidated financial statements and significant notes thereto 6

   1. Consolidated statement of financial position. 6

   2. Consolidated statement of profit or loss 7

   3. Consolidated statement of comprehensive income 8

   4. Consolidated statement of changes in equity 9

   5. Consolidated statement of cash flows 11

   6. Notes to consolidated financial statements 12

Notes on going concern assumption 12

Segment information, etc. 12

Information per share 14

Notes on discontinued operations 14

Significant subsequent events 15

1. Outline of business performance
   1. Outline of business performance for the fiscal year under review

      JMDC Inc. (the "Company") is promoting the health of citizens, and delivering increased value of medical service providers and helping optimize their operations through gathering diverse data on the Japanese healthcare industry and thus benefiting society, with the aim of realizing a sustainable healthcare system by leveraging data and ICT.

      In the Healthcare-Big Data segment, to promote the health services for payers, centered on health insurance unions, we provide analysis services for data held by payers as well as personal health record (PHR) services developed by the Company. We also provide services such as medical data analysis and medical factoring to medical institutions as well as medicine databases. Furthermore, we have created a database of anonymously processed information in the course of pursuing this business and are promoting scientific and industrial applications of this data.

      In the Tele-medicine segment, we provide a matching service that connects medical institutions lacking a sufficient number of radiologists with contracted radiologists using a remote image interpretation system, as well as an ASP service that connects medical institutions with radiologists via the cloud to enable remote diagnostic imaging.

      As stated in the "Notice of Changes in Subsidiaries (Transfer of Shares) and in Reportable Segments" released on February 20, 2025, the Company transferred all shares of NOAH MEDICAL SYSTEM CORPORATION ("NOAH MEDICAL"), a consolidated subsidiary, to KAKEHASHI Inc. Accordingly, for the fiscal year ended March 31, 2025, the business of dispensing pharmacy support operated by NOAH MEDICAL is classified as discontinued operations, and revenue, operating profit, and EBITDA associated with said business are presented separately as discontinued operations.

      Operating results for the fiscal year ended March 31, 2026 are as follows.

      (Operating results)

      (Millions of yen)

      Category	12th fiscal year (From April 1, 2024 to March 31, 2025)	13th fiscal year (From April 1, 2025 to March 31, 2026)	YoY change
      Revenue	41,722	50,462	8,739	20.9%
      Operating profit	8,717	10,521	1,803	20.7%
      EBITDA [margin]	10,932 [26.2%]	13,178 [26.1%]	2,246	20.5%

      (Segment results)

      (Millions of yen)

      Category		12th fiscal year (From April 1, 2024 to March 31, 2025)		13th fiscal year (From April 1, 2025 to March 31, 2026)		YoY change
      Healthcare-Big Data	Segment revenue	35,646		44,070		8,423	23.6%
      	Segment profit [ratio]	9,557	[26.8%]	11,722	[26.6%]	2,165	22.7%
      Tele-medicine	Segment revenue	6,117		6,392		274	4.5%
      	Segment profit [ratio]	2,236	[36.6%]	2,407	[37.7%]	171	7.7%
      Adjustment	Segment revenue	(41)		-		41	-
      	Segment profit	(861)		(952)		(91)	-
      Total	Revenue	41,722		50,462		8,739	20.9%
      	EBITDA [margin]	10,932	[26.2%]	13,178	[26.1%]	2,246	20.5%

      (Note) EBITDA is an objective indicator for judging the achievement of the JMDC Group's (the "Group's") management policies and strategies or management objectives. The Group uses EBITDA to measure the performance of each segment and believes that it is a useful and necessary measure to assess the Group's performance more effectively. The formulas for calculating EBITDA and EBITDA margin are as follows.

      • EBITDA: Operating profit + Depreciation and amortization ± Other income and/or expenses

      • EBITDA margin: EBITDA / Revenue x 100

        Healthcare-Big Data

        The Group possesses the largest scale of healthcare big data in Japan that is available for public through data anonymization of receipts (admitted patients, day patients, prescriptions), medical examinations and member records received from health insurance unions, etc. During the fiscal year ended March 31, 2026, the number of contracted health insurance unions, etc. increased year-on-year. The annual

        transaction value at pharmaceutical and insurance companies, etc. which use and utilize the healthcare big data, showed robust results. The business is continuing to expand.

        Moreover, the Pep Up health information platform developed by the Company is used to generate individualized advice and display risk of diseases for every individual user based on the above healthcare-big data. The number of IDs issued for Pep Up continued to expand during the fiscal year ended March 31, 2026.

        In addition to the above-mentioned business expansion, the Company gathered companies and organizations that will work to implement health management that exceeds industry organizations, and commenced full-scale operations for the "Health & Productivity Management Alliance" in June 2023, expanding to 525 companies and organizations as of March 31, 2026. The mission of this alliance is to revitalize Japanese companies through the health of employees and enable the sustainability of the health insurance system, and it is currently promoting three initiatives to hold study sessions and seminars, create health management assessments based on surveys and data analysis, and build information platforms for health management solutions. Going forward, the Company will accelerate the creation of results and business, by further expanding the activities and implementing health management.

        As a result, segment revenue for the fiscal year ended March 31, 2026 was ¥44,070 million and segment profit (segment EBITDA) was ¥11,722 million.

        Tele-medicine

        The Group has the biggest platform for radiologists in Japan. In the fiscal year ended March 31, 2026, revenue increased on a year-on-year basis as a result of the continued increase in the number of medical institutions utilizing remote image interpretation services.

        We continue to take measures to expand our business, including adding functions to "AI-RAD," an artificial intelligence engine platform that assists in diagnostic imaging, and preparations for full-scale business development in Asia.

        As a result, segment revenue for the fiscal year ended March 31, 2026 was ¥6,392 million and segment profit (segment EBITDA) was ¥2,407 million.

        As a result of the above, for the fiscal year ended March 31, 2026, revenue increased to ¥50,462 million, operating profit to ¥10,521 million, and EBITDA to ¥13,178 million. Adjustments to reconcile EBITDA to operating profit are as follows.

        (Reconciliation of EBITDA to operating profit)

        (Millions of yen)

        	12th fiscal year (From April 1, 2024 to March 31, 2025)	13th fiscal year (From April 1, 2025 to March 31, 2026)
        EBITDA	10,932	13,178
        Depreciation and amortization Other income Other expenses	(2,711) 607 (110)	(3,200) 715 (171)
        Operating profit	8,717	10,521

   2. Outline of financial position for the fiscal year under review Assets

      Assets at the end of the fiscal year under review were ¥158,538 million, an increase of ¥15,517 million compared with the end of the fiscal year ended March 31, 2025. This was mainly due to increases of

      ¥7,005 million in property, plant and equipment, ¥4,155 million in goodwill and ¥3,949 million in trade and other receivables. For details regarding the changes in cash and cash equivalents, please refer to "(3) Outline of cash flows for the fiscal year under review."

      Liabilities

      Liabilities at the end of the fiscal year under review were ¥74,355 million, an increase of ¥9,810 million compared with the end of the fiscal year ended March 31, 2025. This was mainly due to increases of ¥3,798 million in trade and other payables, ¥2,057 million in borrowings in non-current liabilities, ¥1,606 million in lease liabilities in non-current liabilities and ¥1,161 million in borrowings in current liabilities.

      Equity

      Equity at the end of the fiscal year under review was ¥84,183 million, an increase of ¥5,707 million compared with the end of the fiscal year ended March 31, 2025. This was mainly due to an increase of

      ¥5,672 million in retained earnings due to the recording of ¥6,765 million in profit attributable to owners of parent and ¥1,045 million in payment of dividends.

   3. Outline of cash flows for the fiscal year under review

      Cash and cash equivalents ("net cash") at the end of the fiscal year under review was ¥28,950 million, a decrease of ¥3,225 million compared with the end of the fiscal year ended March 31, 2025.

      The respective cash flow positions for the fiscal year under review and the factors thereof are as follows.

      Cash flows from operating activities

      Net cash provided by operating activities was ¥8,594 million (¥14,685 million provided in the previous fiscal year). This was mainly due to the recording of ¥9,964 million in profit before tax, an increase of

      ¥3,238 million in trade and other payables and depreciation and amortization of ¥3,200 million, despite recording ¥4,177 million in income taxes paid and an increase of ¥3,064 million in trade and other receivables.

      Cash flows from investing activities

      Net cash used in investing activities was ¥10,556 million (¥3,467 million used in the previous fiscal year). This was mainly due to purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥8,883 million and purchase of intangible assets of ¥1,467 million.

      Cash flows from financing activities

      Net cash used in financing activities was ¥1,265 million (¥6,484 million provided in the previous fiscal year). This was mainly due to the recording ¥4,772 million in repayments of long-term borrowings,

      ¥1,253 million in repayments of lease liabilities and ¥1,045 million in dividends paid despite recording

      ¥5,744 million in proceeds from long-term borrowings.

   4. Future outlook

   The Group will likely post increased revenue and profit for the fiscal year ending March 31, 2027.

   1. Healthcare-Big Data

      The Company expects the further expansion of business performance as a result of developing measures for the various players associated with healthcare by creating high value-added data utilization services and expanding data types. On the other hand, the Company will continue to make necessary up-front investments for future growth in order to establish a data environment in the major areas of healthcare in Japan.

   2. Tele-medicine

   The business performance will likely continue to expand by further strengthening and increasing the operational efficiency of remote image diagnostic support services, and capturing the remote image interpretation needs at medical institutions. Furthermore, the Company is looking into the expansion of the content of services for medical institutions, such as the utilization of AI, as well as the development of business overseas.

   As for the Group's consolidated financial results, we forecast ¥60,500 million in revenue (an increase of ¥10,037 million year on year), ¥11,500 million in operating profit (an increase of ¥978 million year on year), ¥11,000 million in profit before tax (an increase of ¥1,035 million year on year) and ¥ 7,100 million in profit attributable to owners of parent (an increase of ¥334 million year on year). EBITDA, which the Company deems to be an important business indicator, is forecast at ¥15,000 million (an increase of ¥1,821 million year on year).

   The above-mentioned outlook is based on judgments and assumptions derived from information that is currently available to the Company, and the actual business performance in the future may differ significantly due to changes in the situation.

2. Basic approach to the selection of accounting principles

   Starting from the fiscal year ended March 31, 2019, the Group began to voluntarily adopt the International Financial Reporting Standards (IFRS) instead of Japanese GAAP in order to make its financial statements more comparable internationally in capital markets and unify the Group's accounting practices.

3. Consolidated financial statements and significant notes thereto

(Millions of yen)

Assets

Current assets

As of March 31, 2025 As of March 31, 2026

Liabilities and equity Liabilities

1. Consolidated statement of comprehensive income

   Fiscal year ended March 31, 2025

   (Millions of yen)

   Fiscal year ended March 31, 2026

   Profit 7,382 6,812

   Other comprehensive income

   Items that will not be reclassified to profit or loss

   Financial assets measured at fair value through other comprehensive income

   Total of items that will not be reclassified to profit or loss

   Items that may be reclassified to profit or loss

   Exchange differences on translation of foreign operations

   Total of items that may be reclassified to profit or loss

   1,107 (46)

   1,107 (46)

   0 (4)

   0 (4)

   Other comprehensive income, net of tax	1,107		(51)
   Comprehensive income	8,490		6,761
   Comprehensive income attributable to Owners of parent	8,383		6,714
   Non-controlling interests	106		47
   Comprehensive income	8,490		6,761

2. Consolidated statement of changes in equity

Fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

Equity attributable to owners of parent

(Millions of yen)

Other components of equity

Share capital Capital surplus Treasury shares

Exchange differences on translation of foreign operations

Financial assets measured at fair value through other comprehensive income

Share acquisition rights

Equity attributable to owners of parent

Other components of

equity Retained

earnings Total

Non-controlling interests

Total

Total

Transactions with non-controlling interests

Increase (decrease) by business combination

Fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

Equity attributable to owners of parent

(Millions of yen)

Other components of equity

Share capital Capital surplus Treasury shares

Exchange differences on translation of foreign operations

Financial assets measured at fair value through other comprehensive income

Share acquisition rights

Equity attributable to owners of parent

Other components of

equity Retained

earnings Total

Non-controlling interests

Total

Total

Purchase of shares of subsidiaries resulting in change in scope of consolidation

(3,585) (8,883)

Effect of exchange rate changes on cash and cash equivalents

(0) 1

Cash and cash equivalents at end of period 32,176 28,950

1. Notes to consolidated financial statements Notes on going concern assumption

   Not applicable.

   Segment information, etc.

   1. Overview of reportable segments

      The Group's reportable segments are components of the Group for which discrete financial information is available, and whose operating results are regularly reviewed by the Board of Directors to make decisions about managerial resources to be allocated to the segments and assess their performances.

      The Group considers similarities in the nature of the services it provides and has reportable segments: "Healthcare-Big Data" and "Tele-medicine."

      For the fiscal year ended March 31, 2025, the business of dispensing pharmacy support operated by NOAH MEDICAL SYSTEM CORPORATION is classified as discontinued operations and removed from segment information. Accordingly, segment information for the fiscal year ended March 31, 2025 has been reclassified to exclude discontinued operations and show only the amount for continuing operations.

      The main businesses and main services included in each reportable segment are as follows.

      Reportable segments	Main businesses	Main services
      Healthcare-Big Data	Business for industry Business for payers and individuals Business for medical service providers	Development and provision of medical databases (receipts, pharmaceuticals, etc.) and analysis of medical big data
      Tele-medicine	Tele-medicine business	Remote image interpretation matching service and ASP service for remote image interpretation system

   2. Information about reportable segments

      Revenue and operating results by reportable segments of the Group are as follows.

      Intersegment revenues are based on negotiated transaction prices, taking into account market prices and production costs. Segment profits are EBITDA (Operating profit + Depreciation and amortization ± Other income and/or expenses).

      Fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

      (Millions of yen)

      	Reportable segments			Adjustments (Note)	Consolidated
      	Healthcare-Big Data	Tele-medicine	Total
      Revenue
      Revenue from external customers	35,605	6,117	41,722	-	41,722
      Intersegment revenue	41	-	41	(41)	-
      Total	35,646	6,117	41,764	(41)	41,722
      Segment profit EBITDA	9,557	2,236	11,793	(861)	10,932
      Other items Depreciation and amortization	2,199	512	2,711	0	2,711

      Note: Adjustments include elimination of intersegment transactions and corporate expenses.

      Fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

      (Millions of yen)

      	Reportable segments			Adjustments (Note)	Consolidated
      	Healthcare-Big Data	Tele-medicine	Total
      Revenue
      Revenue from external customers	44,070	6,392	50,462	-	50,462
      Intersegment revenue	-	-	-	-	-
      Total	44,070	6,392	50,462	-	50,462
      Segment profit EBITDA	11,722	2,407	14,130	(952)	13,178
      Other items Depreciation and amortization	2,613	586	3,200	0	3,200

      Note: Adjustments include elimination of intersegment transactions and corporate expenses.

      A reconciliation of EBITDA to profit before tax is as follows.

      (Millions of yen)

      	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
      EBITDA	10,932	13,178
      Depreciation and amortization	(2,711)	(3,200)
      Other income	607	715
      Other expenses	(110)	(171)
      Operating profit	8,717	10,521
      Finance income	15	88
      Finance costs	(223)	(646)
      Share of profit (loss) of investments accounted for using equity method	1	1
      Profit before tax	8,510	9,964

   3. Information about products and services

      A listing of the products and service categories was omitted, because they are identical to the reportable segments.

   4. Information by region

      Information by region was omitted because over 90% of the Group's total revenue was generated in Japan and its non-current assets are nearly entirely located in the country.

   5. Information about major customers

      Information about major customers was omitted as there are no parties accounting for 10% or more of revenue in the consolidated statement of profit or loss out of revenue from external customers.

      Information per share

      1. Basis for calculating the basic earnings per share

         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
         Profit attributable to owners of parent (Millions of yen)	7,275	6,765
         Profit not attributable to ordinary shareholders of parent (Millions of yen)	-	-
         Profit used to calculate the basic earnings per share (Millions of yen)	7,275	6,765
         Continuing operations	5,821	6,765
         Discontinued operations	1,454	-
         Weighted average of the number of ordinary shares (Thousands of shares)	65,349	65,404
         Basic earnings per share (Yen)	111.34	103.44
         Continuing operations	89.08	103.44
         Discontinued operations	22.26	-

      2. Basis for calculating the diluted earnings per share

1. Overview of discontinued operations

   The Company resolved to transfer all shares of NOAH MEDICAL SYSTEM CORPORATION ("NOAH MEDICAL"), a consolidated subsidiary, to KAKEHASHI Inc. at the meeting of its Board of Directors held on February 20, 2025, and the transfer of shares was completed on February 21, 2025.

   As a result, for the fiscal year ended March 31, 2025, business related to dispensing pharmacy support operated by NOAH MEDICAL is classified as discontinued operations.

2. Name of the subsidiary, business lines and name of the segment in which the said subsidiary was included

   Name	NOAH MEDICAL SYSTEM CORPORATION
   Business lines	Development and sales of business systems for pharmacies
   Name of the segment	Dispensing Pharmacy Support

3. Number of shares transferred and status of shares held before and after the transfer

   Number of shares held before transfer	500 shares (ownership ratio of voting rights: 100%)
   Number of shares transferred	500 shares
   Number of shares held after transfer	0 shares (ownership ratio of voting rights: 0%)

4. Profit or loss from discontinued operations

Profit or loss from discontinued operations is as follows.

(Millions of yen)

Note: Income tax expense for the fiscal year ended March 31, 2025 includes income tax imposed upon gain on sale of the business of ¥761 million.

Not applicable.