Consolidated Financial Results for the Six Months Ended September 30, 2025(full version)

October 31, 2025

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

1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025)

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

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      September 30, 2025	42,569	4.0	3,069	(20.1)	3,297	(19.1)	1,537	(44.4)
      September 30, 2024	40,914	2.2	3,841	13.8	4,075	18.5	2,764	17.8

      Note: Comprehensive income	For the six months ended September 30, 2025:	¥	2,047 million [	(14.4) %]
      	For the six months ended September 30, 2024:	¥	2,393 million [	(16.8) %]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	44.55	-
      September 30, 2024	80.54	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of	Millions of yen	Millions of yen	%
   September 30, 2025	56,422	37,796	67.0
   March 31, 2025	56,032	36,470	65.1

   Reference: Equity

   As of September 30, 2025:	¥	37,796 million
   As of March 31, 2025:	¥	36,470 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	-	24.00	-	27.50	51.50
   March 31, 2025
   Fiscal year ending	-	29.50
   March 31, 2026
   Fiscal year ending March 31, 2026 (Forecast)			-	29.50	59.00

   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: Yes

* Notes

(4) Number of issued shares (common shares)

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

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

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters (Cautions on forward-looking statements, etc.)

The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ from forecasts due to various factors in the future.

(How to obtain supplementary explanatory materials for financial results)

Financial results briefing materials will be disclosed on TDnet on the same day and posted on the Company's website.

Contents of Exhibit

1. Overview of business results 2

   1. Summary of operating results for the six months ended September 30, 2025 2

   2. Summary of financial position 3

   3. Explanation of consolidated earnings forecasts and other forward-looking statements 4

2. Semi-annual Consolidated Financial Statements and Primary Notes 5

   1. Semi-annual Consolidated Balance Sheet 5

   2. Semi-annual Consolidated Statements of Income and Comprehensive Income 7

      Semi-annual Consolidated Statement of Income 7

      Semi-annual Consolidated Statement of Comprehensive Income 8

   3. Semi-annual Consolidated Statement of Cash Flows 9

   4. Notes to semi-annual consolidated financial statements 10

(Notes on segment information, etc.) 10

(Notes on significant changes in the amount of shareholders' equity) 11

(Notes on going concern assumption) 11

(Notes to semi-annual consolidated statement of income) 11

(Notes on semi-annual consolidated statement of cash flows) 11

(Notes on significant subsequent events) 11

1. ‌Overview of business results
   1. ‌Summary of operating results for the six months ended September 30, 2025

      In the six months ended September 30, 2025, the Japanese economy has shown a gradual recovery trend due to improvements in the employment and income environment. However, the outlook remains uncertain due to the effects of U.S. trade policies, trends in domestic and international monetary policy, and the protraction of geopolitical risks in the Middle East, etc. In the retail industry, personal consumption activities continue to face difficult conditions as real wages have declined due to continuous price hikes, especially for food products, leading to high levels of belt-tightening. In the e-commerce and mail-order industries, although the

      size of the markets continues to exhibit steady growth, the growth rate has slowed down when compared to the explosive expansion during the COVID-19 pandemic, and competition between companies across industries and business categories has been intensifying due to an increasing number of companies entering the industry.

      In this environment, the Group has set our Medium- to Long-Term Vision as "To become a true Marketing Solution Company (MSC), we will hone our uniqueness in Marketing Solution domain," and aims to enhance profitability by expanding our business domain without limiting ourselves to the direct marketing market

      while pursuing highly unique business models. In FY2025, we are working to improve the Group's corporate value by focusing on two main policies of "strengthening earning power by pursuing uniqueness" and

      "promoting agile 'responsibility' management" by dedicating management resources to LPB (Logistics,

      Payment, and BPO). Furthermore, during the six months ended September 30, 2025, it became apparent that the Company's consolidated subsidiary ZonExpert Co., Ltd. would not yield the initially expected earnings. The business plan was therefore revised. As a result of carefully assessing the possibility of recovery,

      impairment losses on goodwill of ¥548 million were recorded as extraordinary losses. Additionally, business restructuring expenses of ¥151 million were recorded as extraordinary losses.

      As a result, net sales for the six months ended September 30, 2025 amounted to ¥42,569 million (up 4.0% from the six months ended September 30, 2024). As for profits, operating profit was ¥3,069 million (down

      20.1% from the six months ended September 30, 2024), ordinary profit was ¥3,297 million (down 19.1% from the six months ended September 30, 2024), and profit attributable to owners of parent was ¥1,537 million (down 44.4% from the six months ended September 30, 2024).

      Operating results by segment are as follows.

      Effective from the semi-annual period of the current fiscal year, the Company has partially changed the classification of its reportable segments, and in the following year-on-year comparisons, figures from the same period of the previous fiscal year have been compared based on the segment classification after such change. For details, please refer to "2. Semi-annual Consolidated Financial Statements and Primary Notes thereto (4) Notes to semi-annual consolidated financial statements (Notes on segment information, etc.)."

      Net sales for each segment include intersegment sales or transfers.

      1. Solutions Business

         In the Solutions Business, we are working to expand our market by targeting all types of businesses without limiting our service offerings to the direct marketing market, capitalizing on our strength in providing the functions essential for direct marketing business operations on a one-stop basis. In addition to this, we will strengthen our profitability by developing high value-added businesses tailored to customer needs. With regards to distribution agency services, in response to growing logistics needs in the Kanto region, SLC

         Tsukuba has become operational as our third base in the Kanto area. We will contribute to enhancing

         profitability by acquiring new customers and meeting the growing demand of existing customers. In payment agency services, transaction volumes remain steady. In addition, we are strengthening the credit recovery and credit management systems as we press forward with efforts to reduce the risk of bad debts. The marketing support business is showing steady growth, centered on social media marketing.

         As a result, net sales amounted to ¥17,304 million (up 24.2% from the six months ended September 30, 2024), and segment profit was ¥564 million (up 50.3% from the six months ended September 30, 2024).

      2. Mail-order Business

         In the Mail-order Business, net sales decreased compared to the six months ended September 30, 2024 due not only to the increasing belt-tightening accompanying the continuous rise in prices, particularly for food, but also due to the effects of record-setting intense and lingering summer heat. Aiming to generate maximum profit under these circumstances, we are continuing to promote business efficiency by controlling inventory and reducing and restraining various costs, including sales promotion expenses.

         As a result, net sales amounted to ¥19,171 million (down 7.6% from the six months ended September 30, 2024), and segment profit was ¥2,676 million (down 24.1% from the six months ended September 30, 2024).

      3. E-commerce Business

         In the E-commerce Business, we are continuously promoting the completion of business restructuring, which has been underway since FY2024, and the transformation of the business model to build a new revenue base.

         As a result, net sales amounted to ¥6,641 million (down 5.3% from the six months ended September 30, 2024), and segment loss was ¥70 million (segment profit of ¥41 million in the six months ended September 30, 2024).

      4. Group Jurisdiction Business

         In the Group Jurisdiction Business, performance remained solid, supported by the Group's rental of real estate, including its own logistics facilities, and the Group's logistics operations. In its logistics operations, we

         continued to reinforce its center operations in the Tokai, Kansai, and Kanto areas and strove to create a stable operating system. In addition to transactions within the Group, we are also engaged in sales activities to

         acquire external customers.

         As a result, net sales amounted to ¥1,867 million (up 9.3% from the six months ended September 30, 2024), and segment profit was ¥123 million (down 7.0% from the six months ended September 30, 2024).

   2. ‌Summary of financial position

      1. Assets, liabilities and net assets

         (Assets)

         Total assets as of September 30, 2025 were ¥56,422 million, up by ¥389 million compared with March 31, 2025. This is mainly due to an increase in cash and deposits and a decrease in accounts receivable - other.

         (Liabilities)

         Liabilities were ¥18,625 million, down by ¥935 million compared with March 31, 2025. This is mainly due to a decrease in accounts payable - other and a decrease in provisions.

         (Net assets)

         Net assets were ¥37,796 million, up by ¥1,325 million compared with March 31, 2025, and the equity ratio stood at 67.0%.

      2. Cash flows

         The balance of cash and cash equivalents ("cash") as of September 30, 2025 was ¥8,598 million, up by ¥2,972 million compared with March 31, 2025.

         The respective cash flow positions and the factors thereof in the six months ended September 30, 2025 were as follows.

         (Cash flows from operating activities)

         Net cash provided by operating activities was ¥3,872 million (¥2,192 million was provided in the six months ended September 30, 2024). This was mainly due to recording of profit before income taxes and a decrease in accounts receivable - other.

         (Cash flows from investing activities)

         Net cash provided by investing activities was ¥58 million (¥1,693 million was used in the six months ended September 30, 2024). This was mainly due to a decrease in time deposits, purchase of shares of subsidiaries resulting in change in scope of consolidation, and purchase of property, plant and equipment.

         (Cash flows from financing activities)

         Net cash used in financing activities was ¥945 million (¥3,806 million was used in the six months ended September 30, 2024). This was mainly due to dividends paid.

   3. ‌Explanation of consolidated earnings forecasts and other forward-looking statements

   As for consolidated earnings forecasts, we have revised the full-year consolidated earnings forecasts for the fiscal year ending March 31, 2026 announced in the "[Summary] Consolidated Financial Results for the Year Ended March 31, 2025" as of May 7, 2025. For details, please refer to the "Notice Concerning Recording of Extraordinary Losses and Revisions to Full-Year Consolidated Results Forecasts" that was released today (October 31, 2025).

2. ‌Semi-annual Consolidated Financial Statements and Primary Notes

1. ‌Semi-annual Consolidated Balance Sheet

   		(Millions of yen)
   As of March 31, 2025		As of September 30, 2025
   Assets
   Current assets
   Cash and deposits	8,125	10,098
   Accounts receivable - trade	11,863	10,823
   Inventories	8,646	9,217
   Accounts receivable - other	10,154	8,456
   Other	1,280	1,378
   Allowance for doubtful accounts	(1,391)	(1,519)
   Total current assets	38,679	38,455
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	5,697	5,549
   Land	5,511	5,511
   Other, net	672	860
   Total property, plant and equipment	11,881	11,920
   Intangible assets
   Goodwill	504	441
   Other	601	556
   Total intangible assets	1,106	998
   Investments and other assets
   Other	5,099	6,133
   Allowance for doubtful accounts	(734)	(1,085)
   Total investments and other assets	4,364	5,047
   Total non-current assets	17,352	17,966
   Total assets	56,032	56,422
   Liabilities
   Current liabilities
   Accounts payable - trade	2,625	2,501
   Accounts payable - other	11,604	11,222
   Income taxes payable	1,362	1,242
   Provisions	665	429
   Other	1,644	1,528
   Total current liabilities	17,903	16,923
   Non-current liabilities
   Provisions	52	54
   Retirement benefit liability	1,423	1,453
   Other	181	194
   Total non-current liabilities	1,658	1,702
   Total liabilities	19,561	18,625

   		(Millions of yen)
   As of March 31, 2025		As of September 30, 2025
   Net assets
   Shareholders' equity
   Share capital	6,116	6,229
   Capital surplus	7,045	7,158
   Retained earnings	22,019	22,610
   Treasury shares	(1)	(1)
   Total shareholders' equity	35,180	35,996
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	1,180	1,713
   Deferred gains or losses on hedges	40	32
   Foreign currency translation adjustment	69	54
   Total accumulated other comprehensive income	1,290	1,799
   Total net assets	36,470	37,796
   Total liabilities and net assets	56,032	56,422

2. ‌Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statement of Income‌

   		(Millions of yen)
   For the six months ended September 30, 2024		For the six months ended September 30, 2025
   Net sales	40,914	42,569
   Cost of sales	23,487	24,239
   Gross profit	17,427	18,329
   Selling, general and administrative expenses	13,586	15,260
   Operating profit	3,841	3,069
   Non-operating income
   Interest income	11	36
   Dividend income	47	56
   Foreign exchange gains	54	31
   Gain on adjustment of accounts payable	24	39
   Recoveries of written off receivables	27	28
   Other	87	43
   Total non-operating income	253	235
   Non-operating expenses
   Interest expenses	5	3
   Expense related to restricted stock	5	1
   Other	8	2
   Total non-operating expenses	18	7
   Ordinary profit	4,075	3,297
   Extraordinary losses
   Loss on retirement of non-current assets	0	-
   Impairment losses	-	* 548
   Loss on liquidation of business	-	151
   Total extraordinary losses	0	699
   Profit before income taxes	4,075	2,597
   Income taxes - current	1,258	1,168
   Income taxes - deferred	52	(108)
   Total income taxes	1,310	1,060
   Profit	2,764	1,537
   Profit attributable to owners of parent	2,764	1,537

   ‌Semi-annual Consolidated Statement of Comprehensive Income

   		(Millions of yen)
   For the six months ended September 30, 2024		For the six months ended September 30, 2025
   Profit	2,764	1,537
   Other comprehensive income
   Valuation difference on available-for-sale securities	(181)	533
   Deferred gains or losses on hedges	(210)	(8)
   Foreign currency translation adjustment	20	(15)
   Total other comprehensive income	(371)	509
   Comprehensive income	2,393	2,047
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	2,393	2,047
   Comprehensive income attributable to non-controlling interests	-	-

3. ‌Semi-annual Consolidated Statement of Cash Flows

   		(Millions of yen)
   For the six months ended September 30, 2024		For the six months ended September 30, 2025
   Cash flows from operating activities
   Profit before income taxes	4,075	2,597
   Depreciation	475	441
   Impairment losses	-	548
   Amortization of goodwill	63	63
   Share-based payment expenses	62	96
   Increase (decrease) in allowance for doubtful accounts	337	461
   Increase (decrease) in other provisions	(152)	(235)
   Increase (decrease) in retirement benefit liability	(3)	29
   Interest and dividend income	(59)	(92)
   Interest expenses	5	3
   Loss (gain) on sale and retirement of non-current assets	0	-
   Loss on liquidation of business	-	151
   Decrease (increase) in trade receivables	894	1,038
   Decrease (increase) in inventories	(1,360)	(571)
   Decrease (increase) in accounts receivable - other	(1,394)	1,355
   Decrease (increase) in other current assets	7	51
   Increase (decrease) in trade payables	(138)	(162)
   Increase (decrease) in accrued liabilities	418	(512)
   Increase (decrease) in other current liabilities	(7)	(125)
   Other, net	(27)	(28)
   Subtotal	3,196	5,111
   Interest and dividends received	61	93
   Interest paid	(5)	(3)
   Income taxes paid	(1,083)	(1,329)
   Income taxes refund	23	0
   Net cash provided by (used in) operating activities	2,192	3,872
   Cash flows from investing activities
   Decrease (increase) in time deposits	(1,000)	1,000
   Purchase of property, plant and equipment	(117)	(357)
   Purchase of intangible assets	(91)	(100)
   Proceeds from sale of investment securities	26	-
   Proceeds from cancellation of insurance funds	105	-
   Purchase of shares of subsidiaries resulting in change in scope of consolidation	(672)	(458)
   Other, net	57	(25)
   Net cash provided by (used in) investing activities	(1,693)	58
   Cash flows from financing activities
   Proceeds from short-term borrowings	-	1,700
   Repayments of short-term borrowings	(25)	(1,700)
   Repayments of long-term borrowings	(3,165)	-
   Dividends paid	(615)	(944)
   Other, net	(0)	(0)
   Net cash provided by (used in) financing activities	(3,806)	(945)
   Effect of exchange rate change on cash and cash equivalents	20	(12)
   Net increase (decrease) in cash and cash equivalents	(3,286)	2,972
   Cash and cash equivalents at beginning of period	7,396	5,625
   Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation	19	-
   Cash and cash equivalents at end of period	4,129	8,598

4. ‌Notes to semi-annual consolidated financial statements

1. Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024)

   1. Information on net sales and profit (loss) by reportable segment

      (Millions of yen)
      	Reportable segments					Adjustment (Note 1)	Amount recorded in semi-annual consolidated statements of income (Note 2)
      	Solutions Business	Mail-order Business	E-commerce Business	Group Jurisdiction Business	Total
      Net Sales
      Sales to external customers	13,251	20,747	6,899	14	40,914	-	40,914
      Intersegment sales or transfers	677	0	113	1,692	2,484	(2,484)	-
      Total	13,929	20,748	7,013	1,707	43,398	(2,484)	40,914
      Segment profit (loss)	375	3,526	41	133	4,076	(0)	4,075

      (Notes) 1. The adjustment to segment profit (loss) includes unrealized profit of ¥ (0) million.

   2. Segment profit (loss) is reconciled to ordinary profit in the semi-annual consolidated statement of income.

      2. Information on impairment losses on non-current assets and goodwill, etc. by reportable segment (Significant changes in amount of goodwill)

      In the Solutions Business, the Company acquired all shares of BeBorn co., ltd. during the six months ended September 30, 2024, making it a consolidated subsidiary. As a result, ¥630 million in goodwill was recorded.

2. Six months ended September 30, 2025 (April 1, 2025 to September 30, 2025)

   1. Information on net sales and profit (loss) by reportable segment

      (Millions of yen)
      	Reportable segments					Adjustment (Note 1)	Amount recorded in semi-annual consolidated statements of income (Note 2)
      	Solutions Business	Mail-order Business	E-commerce Business	Group Jurisdiction Business	Total
      Net Sales
      Sales to external customers	16,690	19,171	6,575	131	42,569	-	42,569
      Intersegment sales or transfers	613	0	65	1,735	2,414	(2,414)	-
      Total	17,304	19,171	6,641	1,867	44,984	(2,414)	42,569
      Segment profit (loss)	564	2,676	(70)	123	3,295	2	3,297

      (Notes) 1. The adjustment to segment profit (loss) includes unrealized profit of ¥2 million.

   2. Segment profit (loss) is reconciled to ordinary profit in the semi-annual consolidated statement of income.

1. Changes to Reportable Segments, etc.

   One overseas subsidiary, which was previously included in the "Group Jurisdiction Business," has been reclassified under the "Mail-order Business" in accordance with the change in the internal management classification from the semi-annual period of the current fiscal year. The segment information for the semi-annual period of the previous fiscal year has been restated based on the classification of the reportable segments for the semi-annual period of the current fiscal year.

2. Information on impairment losses on non-current assets and goodwill, etc. by reportable segment (Significant impairment losses on non-current assets)

In the Solutions Business, it became apparent that the Company's consolidated subsidiary ZonExpert Co., Ltd. would not yield the initially expected earnings. The business plan was therefore revised. As a result of carefully assessing the possibility of r ecovery, the entire sum of goodwill of ¥548 million was recorded as impairment loss for the six months ended September 30, 2025.

(Significant changes in amount of goodwill)

In the Solutions Business, the Company acquired all shares of ZonExpert Co., Ltd. during the six months ended September 30, 2025, making it a consolidated subsidiary. As a result, ¥548 million in goodwill was recorded.

As indicated above under (Significant impairment losses on non-current assets), the entire sum of goodwill of ¥548 million was recorded as impairment loss for the six months ended September 30, 2025.

Not applicable.

Not applicable.

*Impairment loss

The Group has recognized an impairment loss for the following asset group. Six months ended September 30, 2025

The Group, in principle, groups assets for the purpose of measuring impairment losses at the reportable segment level, based on the business for which investment decisions are made. For consolidated subsidiaries, assets are grouped at the company level, taking into account size and other factors. Idle assets and assets held for lease are grouped on a property-by-property basis.

It became apparent that the Company's consolidated subsidiary ZonExpert Co., Ltd. would not yield the initially expected earnings. The business plan was therefore revised. As a result of carefully assessing the possibility of recovery, the entire sum of goodwill was recorded as impairment loss for the six months ended September 30, 2025. As the recoverable amount of the asset in question is calculated based on its value in use, it is valued at zero.

The relationship between the balance of cash and cash equivalents as of September 30, 2025, and the amounts listed in the semi-annual consolidated balance sheet is as follows.

(Millions of yen)

(Purchase and cancellation of treasury shares)

At a meeting of the Board of Directors held on October 31, 2025, the Company resolved the following matters concerning the purchase of treasury shares in accordance with Article 459 Paragraph 1 of the Companies Act and Article 36 of the Company's Articles of Incorporation, as well as the following matters concerning the cancellation of treasury shares in accordance with Article 178 of the Companies Act.

1. Reasons for the purchase and cancellation of treasury shares

   The Company intends to purchase and cancel treasury shares to improve capital efficiency and enhance shareholder returns.

2. Details concerning the purchase of treasury shares

   1. Class of shares to be purchased: Common shares

   2. Total number of shares to be purchased: 1,050,000 shares (maximum)

      (Representing 3.0% of the total number of shares outstanding, excluding treasury shares)

   3. Total acquisition cost of purchased shares: ¥1,000,000,000 (maximum)

   4. Purchase period: November 5, 2025 - March 31, 2026

   5. Method of purchase: Purchase on the Tokyo Stock Exchange

3. Details concerning the cancellation of treasury shares

   1. Class of shares to be cancelled: Common shares

   2. Total number of shares to be cancelled: All treasury shares purchased under Item 2 above, excluding those expected to be allocated as share-based payment

   3. Scheduled date of cancellation: April 30, 2026