TISI : Consolidated Financial Results for the Three Months Ended June 30, 2026

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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results for the Three Months Ended June 30, 2026 (Under Japanese GAAP) July 30, 2026 Company name TISI Inc. Stock exchange listings: Tokyo Prime Securities code 3626 URL https://www.tisi.jp/en/ Representative (Title) Representative Director, President and Executive Officer Department Manager of Finance (Name) Yasushi Okamoto Inquiries (Title) Dividend payable date (as planned) & Accounting Dept., Corporate Planning SBU. — (Name) Masahiro Hiwasa Tel +81 50-1702-4115 Supplemental material of financial results：Yes Convening briefing of financial results：Yes (targeted at institutional investors and analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 150,111 7.0 18,347 12.2 18,424 8.0 14,409 15.1 June 30, 2025 140,316 4.7 16,353 16.3 17,064 13.2 12,520 17.2 Note:Comprehensive income For the three months ended June 30, 2026 13,137 Millions of yen (-13.4%) For the three months ended June 30, 2025 15,170 Millions of yen (23.5%) Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 67.41 — June 30, 2025 54.02 — Consolidated financial position Total assets Net assets Capital adequacy ratio As of Millions of yen Millions of yen % June 30, 2026 524,657 304,235 55.7 March 31, 2026 551,507 337,726 58.9 Reference:Owner's equity As of June 30, 2026 292,441 Millions of yen As of March 31, 2026 324,730 Millions of yen Cash dividends Annual dividend First quarter Second quarter Third quarter Year end Annual Fiscal year ended March 31, 2026 Fiscal year ending March 31, 2027 Yen — — Yen 38.00 Yen — Yen 42.00 Yen 80.00 Fiscal year ending March 31, 2027 (Forecast) 45.00 — 45.00 90.00 Note:Revisions to the forecast of cash dividends most recently announced：None Consolidated financial forecast for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Six months ending September 30, 2026 Fiscal year ending March 31, 2027 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 300,000 620,000 4.0 3.9 36,500 81,000 2.7 6.3 36,500 81,000 1.5 5.9 26,000 57,000 9.6 22.3 123.67 271.70 Note:Revisions to the earnings forecasts most recently announced：None Notes Significant changes in the scope of consolidation during the period：None Newly included: － companies (Company name) 、Excluded: － companies (Company name) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements：None Changes in accounting policies, changes in accounting estimates, and restatement Changes in accounting policies due to revisions to accounting standards and other regulations ：None Changes in accounting policies due to other reasons ：None Changes in accounting estimates ：None Restatement ：None Number of issued shares (common shares) As of June 30, 2026 228,400,000shares As of March 31, 2026 228,400,000shares As of June 30, 2026 18,472,727shares As of March 31, 2026 8,325,746shares Three months ended June 30, 2026 213,755,651shares Three months ended June 30, 2025 231,771,045shares Number of issued and outstanding shares at the period end (including treasury shares) Number of treasury shares at the period end Average number of shares (quarterly period-YTD) Note: Treasury shares includes the number of the Company’s own shares held by TIS INTEC Group Employees’ Shareholding Association Trust and the Board Incentive Plan (BIP) Trust. Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm：None Proper use of earnings forecasts, and other special matters This report contains forward-looking statements that reflect TISI’s plans and expectations based on information available to TISI at the time of preparation and on certain other information TISI believes to be reasonable. These forward-looking statements are not guarantees of future performance, and actual results, performance, achievements or financial position may differ materially from those expressed or implied herein due to a range of factors. Accompanying Materials – Contents Results of Operations 2 Analysis of Consolidated Operating Results 2 Analysis of Financial Condition 6 Consolidated Earnings Forecast and Caution on Forward-Looking Statements 7 Consolidated Financial Statements 9 Consolidated Balance Sheets 9 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 11 Consolidated Statements of Income 11 Consolidated Statements of Comprehensive Income 12 Notes on the Consolidated Financial Statements 13 (Segment Information, etc.) 13 (Notes on Significant Changes in the Amount of Shareholders’ Equity) 14 (Notes on the Going-Concern Assumption) 14 (Notes on Quarterly Consolidated Statements of Cash Flows) 14 (Revenue recognition) 14 (Significant Subsequent Events) 15 Results of Operations Analysis of Consolidated Operating Results In the first quarter of fiscal 2027, the Japanese economy recovered moderately, while looking ahead, a recovery is expected due to improvements in employment and income conditions as well as the effects of various policy measures. At the same time, close attention must continue to be paid to the impact of developments in the Middle East and fluctuations in financial and capital markets. In the information services industry, in which the Group operates, software investment plans (for all industries, including financial institutions) in the Bank of Japan's Tankan survey (June 2026 survey) increased by 12.4% year on year. Amid the rapid advancement and widespread adoption of AI and the global acceleration of transformations in business processes and business models utilizing digital technologies, further increases in IT investment demand are expected. Under these circumstances, the Group will continue to pursue sustainable growth with added value in accordance with the basic policy of the Medium-term Management Plan (2024–2026), which is currently being implemented toward the achievement of “Group Vision 2032.” At the same time, by taking a future-oriented approach to market development and the expansion of business domains as starting points for improving the quality of the entire value chain, the Group aims to realize transformation in society and among its customers. Consolidated net sales for the Group in the first quarter of fiscal 2027 amounted to ¥150,111 million, up 7.0% year on year. Operating profit increased 12.2% year on year to ¥18,347 million, ordinary profit rose 8.0% to ¥18,424 million, while profit attributable to owners of parent totaled ¥14,409 million, up 15.1% year on year. (Unit: millions of yen) First Quarter, FY2026 (Apr. 1 – Jun. 30, 2025) First Quarter, FY2027 (Apr. 1 – Jun. 30, 2026) Year-on-year changes Net sales 140,316 150,111 +7.0% Cost of sales 101,748 108,707 +6.8% Gross profit 38,568 41,403 +7.4% Gross profit ratio 27.5% 27.6% +0.1P Selling, general and administrative expenses 22,214 23,056 +3.8% Operating profit 16,353 18,347 +12.2% Operating profit ratio 11.7% 12.2% +0.5P Ordinary profit 17,064 18,424 +8.0% Profit attributable to owners of parent 12,520 14,409 +15.1% Net sales increased year on year, supported by business expansion driven by the Group’s ability to respond appropriately to IT investment demand, including customers’ digital transformation initiatives, and by the continued provision of services. Operating profit increased from the same period of the previous fiscal year due to higher sales, as well as the promotion of high value-added businesses and productivity improvement initiatives, while the Group continued to actively execute growth investments, including investments in human resources, its most important management capital. In terms of profitability, the gross profit margin was 27.6% (up 0.1 percentage points year on year), while the operating profit margin was 12.2% (up 0.5 percentage points). Ordinary profit increased from the same period of the previous fiscal year due to higher operating profit. Profit attributable to owners of parent increased from the same period of the previous fiscal year, reflecting higher ordinary profit and an improvement in extraordinary gains and losses, net. During the first quarter of fiscal 2027, the Group recorded extraordinary income of ¥2.84 billion and extraordinary losses of ¥0.19 billion. The principal component of extraordinary income was gains on sales of investment securities of ¥2.48 billion, resulting from the reduction of policy shareholdings. In addition, merger- related expenses of ¥0.19 billion were recorded in selling, general and administrative expenses and ¥0.12 billion in non-operating expenses. Segment results were as follows. Note that sales for each segment include inter-segment sales. (Unit: millions of yen) First Quarter, FY2026 (Apr. 1 – Jun. 30, 2025) First Quarter, FY2027 (Apr. 1 – Jun. 30, 2026) Year-on-year changes Offering Service Business Net sales 36,246 39,831 +9.9% Operating profit 1,730 1,643 -5.0% Operating profit ratio 4.8% 4.1% -0.7P Business Process Management Net sales 10,686 11,050 +3.4% Operating profit 1,423 1,437 +1.0% Operating profit ratio 13.3% 13.0% -0.3P Financial IT Business Net sales 23,631 25,801 +9.2% Operating profit 2,979 3,528 +18.4% Operating profit ratio 12.6% 13.7% +1.1P Industrial IT Business Net sales 32,349 34,077 +5.3% Operating profit 5,107 6,201 +21.4% Operating profit ratio 15.8% 18.2% +2.4P Regional IT Solutions Net sales 43,800 45,855 +4.7% Operating profit 4,837 5,271 +9.0% Operating profit ratio 11.0% 11.5% +0.5P Other Net sales 2,522 2,676 +6.1% Operating profit 195 267 +36.9% Operating profit ratio 7.7% 10.0% +2.3P Offering Service Business Configures services through own investment based on best practices the Group accumulated and provides knowledge- intensive IT services. Segment net sales during the first quarter of fiscal 2027 totaled ¥39,831 million, up 9.9% year on year, while operating profit totaled ¥1,643 million, down 5.0% from the same period of the previous fiscal year. Net sales increased due to expanding IT investment demand in areas including platform and payment services, as well as contributions from overseas businesses. However, operating profit declined from the same period of the previous fiscal year due to increased upfront investments in the payment services business and lower profitability in overseas businesses. The operating profit margin was 4.1%, down 0.7 percentage points year on year. Business Process Management Applies such strengths as IT expertise, business know-how and skilled human resources to realize and provide higher-level, more-efficient outsourcing solutions targeting business process-related issues. Segment net sales during the first quarter of fiscal 2027 totaled ¥11,050 million, up 3.4% year on year, while operating profit totaled ¥1,437 million, up 1.0% year on year. Net sales and operating profit increased from the same period of the previous fiscal year, supported by orders received in the DX business, which is positioned as a key focus area. The operating profit margin was 13.0%, down 0.3 percentage points year on year. Financial IT Business Considers business and IT strategies together and leverages both, and supports business progress using expert business and operating know-how specific to the finance industry. Segment net sales during the first quarter of fiscal 2027 totaled ¥25,801 million, up 9.2% year on year, while operating profit totaled ¥3,528 million, up 18.4% year on year. Net sales and operating profit increased from the same period of the previous fiscal year due to deeper engagement with key customers in the credit card business and the promotion of high value-added businesses, including modernization-related services. The operating profit margin was 13.7%, up 1.1 percentage points year on year. Industrial IT Business Considers business and IT strategies together and leverages both, and supports business progress using expert business and operating know-how specific to industry sectors other than finance. Segment net sales during the first quarter of fiscal 2027 totaled ¥34,077 million, up 5.3% year on year, while operating profit totaled ¥6,201 million, up 21.4% year on year. Net sales and operating profit increased from the same period of the previous fiscal year, driven by expanding IT investment across a wide range of industries, including manufacturing and services. The operating profit margin was 18.2%, up 2.4 percentage points year on year. Regional IT Solutions Provides IT professional services extensively, across regions and client sites, and collects and develops this know-how as the source of solutions to support efforts to address issues and promote business activities. Segment net sales during the first quarter of fiscal 2027 totaled ¥45,855 million, up 4.7% year on year, while operating profit totaled ¥5,271 million, up 9.0% year on year. Net sales and operating profit increased from the same period of the previous fiscal year due to expanding IT investment demand across a broad range of industries, particularly in life and non-life insurance, healthcare, and other industrial sectors, including modernization-related services. The operating profit margin was 11.5%, up 0.5 percentage points year on year. Other Consists of ancillary businesses offering IT services, and other activities. Segment net sales during the first quarter of fiscal 2027 totaled ¥2,676 million, up 6.1% year on year, while operating profit totaled ¥267 million, up 36.9% year on year. The operating profit margin was 10.0%, up 2.3 percentage points year on year. As mentioned above, the Group is implementing the Medium-term Management Plan (2024–2026), which represents the first stage toward achieving “Group Vision 2032,” and will continue to pursue sustainable growth. For details, please refer to “2. Management Policy (2) Medium- to Long-Term Management Strategy” in the Consolidated Financial Results for the fiscal year ended March 31, 2026. The status of major initiatives during the first quarter of fiscal 2027 is as follows. On July 1, 2026, the Company completed the absorption-type merger of INTEC Inc. and launched its new organization under the trade name “TISI Inc.” (For details, please refer to, among others, the announcement dated July 30, 2025, titled “Notice regarding Decision on Basic Policy for Merger with Subsidiary (INTEC Inc.), Change of Trade Name, and Transition to a Company with an Audit and Supervisory Committee,” and the announcement dated October 31, 2025, titled “Notice regarding Absorption-type Merger (Simplified and Short-form Merger) of Our Subsidiary (INTEC Inc.).”). Through this merger, the Company aims to enhance value exchange with customers and society, and to further increase corporate value by strongly promoting the optimal allocation of management resources centered on strategic investments in technology and highly specialized human resources, as well as by further enhancing the value provided by its core business locations. In addition, in order to further enhance corporate governance from a global perspective and meet the expectations of stakeholders both in Japan and overseas, the Company transitioned to a company with an Audit and Supervisory Committee pursuant to a resolution approved at the 18th Annual General Meeting of Shareholders held on June 23, 2026. The business environment surrounding the Group is changing rapidly as AI continues to advance and become more widespread, and these changes are expected to accelerate further going forward. The Group views these changes as growth opportunities and will focus on strengthening the Group-wide value chain and promoting growth strategies suited to the AI era in order to realize its desired long-term vision. Looking ahead to the next Medium-term Management Plan, which will commence in the next fiscal year, the Group has identified the following three areas as priority strategies: a qualitative transformation of earnings through AI-driven development; expansion of stock-based revenue through Vertical AI services (agent-based AI specialized in industry-specific operations); and diversification of revenue models through strategic investments focused on priority areas. Under these strategic directions, the Group is promoting various in itiatives. Among them, to accelerate business growth through AI, the Group is accelerating efforts to drive customer business transformation and create new value through initiatives such as “IntegriA,” a brand that provides end-to-end support for corporate AI utilization from strategy formulation to implementation and value creation, and the launch of the next- generation payments platform strategy “PAYCIERGE,” which combines Vertical AI specialized in the payments domain with highly skilled professionals. As part of efforts to further enhance and streamline the Group’s headquarters functions, the Board of Directors resolved at its meeting held on July 24, 2026 to transfer a portion of the Company’s back-office operations, including general affairs and sales and procurement administration functions, to its wholly owned subsidiary, TIBS Inc., through an absorption-type company split. The Group will further promote the shared services of back-office operations across the Group and strengthen initiatives to improve productivity, reinforce Group governance, and enhance operational efficiency based on integrated Group management. In addition, as part of implementing a nimble capital policy that can respond flexibly to changes in the business environment, the Company repurchased treasury shares totaling approximately ¥50.0 billion (14,368,400 shares) from March to May 2026. This share repurchase was implemented as a measure to contribute to the achievement of the key management indicators of the Medium-term Management Plan, namely “ROE exceeding 16%” and “average annual EPS growth rate exceeding 10%,” from the perspective of achieving improvements in shareholder returns and capital efficiency at an early stage, based on the premise that sustainable growth and enhancement of corporate value can continue to be achieved, and in light of the Company’s recognition that its share price does not necessarily fully reflect its intrinsic value. This repurchase includes approximately ¥8.2 billion of treasury share acquisitions for the fiscal year ending March 31, 2027, based on the Company's basic shareholder return policy of a total payout ratio of 50%. In addition, in accordance with the Company’s policy of holding treasury shares up to a maximum of 5% of the total number of issued shares and canceling any holdings in excess of this limit, and for the purpose of eliminating concerns regarding future share dilution, the Board of Directors resolved at its meeting held on July 30, 2026 to cancel the above-mentioned treasury shares equivalent to ¥50.0 billion (13,700,000 shares). Analysis of Financial Condition (Unit: millions of yen) As of March 31, 2026 (A) As of June 30, 2026 (B) Increase/decrease (B − A) Current assets 295,295 267,657 -27,637 Fixed assets 256,211 256,999 +787 Total assets 551,507 524,657 -26,849 Current liabilities 164,190 176,720 +12,530 Non-current liabilities 49,589 43,701 -5,888 Total liabilities 213,780 220,422 +6,641 Total net assets 337,726 304,235 -33,491 (Assets) Consolidated total assets as of June 30, 2026 amounted to ¥524,657 million, a decrease of ¥26,849 million from ¥551,507 million at the end of the previous fiscal year. This was mainly due to increases of ¥10,408 million in other current assets and ¥6,641 million in buildings and structures and land attributable to the split acquisition of beneficial interests in real estate trusts, while notes and accounts receivable-trade and contract assets decreased by ¥22,850 million due to collections and other factors, and securities decreased by ¥9,356 million as a result of redemption and other factors. (Liabilities) Consolidated total liabilities as of June 30, 2026 amounted to ¥220,422 million, an increase of ¥6,641 million from ¥213,780 million at the end of the previous fiscal year. This was mainly due to increases of ¥29,979 million in short-term borrowings resulting from financing activities and other factors, while income taxes payable decreased by ¥11,968 million due to tax payments, provision for bonuses decreased by ¥8,813 million due to bonus payments, and provision for loss on litigation decreased by ¥7,434 million following the settlement of litigation. (Net assets) Consolidated total net assets as of June 30, 2026 amounted to ¥304,235 million, a decrease of ¥33,491 million from ¥337,726 million at the end of the previous fiscal year. This was mainly due to an increase of ¥5,117 million in retained earnings, while treasury shares increased by ¥35,735 million as a result of share repurchases and other factors (resulting in a decrease in net assets). The increase in retained earnings was mainly attributable to an increase of ¥14,409 million from profit attributable to owners of parent, partially offset by a decrease of ¥9,291 million resulting from cash dividends paid. Consolidated Earnings Forecast and Caution on Forward-Looking Statements Our consolidated results are generally tracking in line with plan, and we will continue to strive to achieve our full-year targets through the steady implementation of various initiatives. At this time, there are no changes to the consolidated earnings forecast announced on May 8, 2026. As initially planned, under the basic policy of the Medium-term Management Plan (2024–2026), “Frontier Expansion,” the Group will promote the provision of high value-added businesses and productivity improvement initiatives. At the same time, by continuing to respond appropriately to IT investment demand, including customers’ digital transformation initiatives, and by promoting the provision of services to expand its business, the Group aims to achieve sustainable growth and further improvements in profitability, even while actively executing growth investments, including investments in human resources, which represent its most important management capital. In addition, the Group will view changes in industrial structures driven by AI as growth opportunities and will promote growth strategies to realize sustainable growth and enhance corporate value. For details, please refer to “2. Management Policy (2) Medium- to Long-Term Management Strategy” in the Consolidated Financial Results for the fiscal year ended March 31, 2026. The consolidated earnings forecast includes anticipated preparation costs related to the aforementioned merger between the Company and INTEC, including approximately ¥1.6 billion in selling, general and administrative expenses (an increase of approximately ¥1.5 billion year on year) and approximately ¥0.6 billion in non-operating expenses (an increase of approximately ¥0.2 billion year on year). In addition, profit attributable to owners of parent reflects extraordinary income of ¥5.0 billion expected to arise from the sale of investment securities, based on the Company’s policy of selling such securities as part of efforts to improve asset efficiency. (Unit: millions of yen) Fiscal 2026 Actual results Fiscal 2027 Forecast Year-on-year change Net sales 596,479 620,000 +3.9% Cost of sales 428,145 440,500 +2.9% Gross profit 168,334 179,500 +6.6% Gross profit ratio 28.2% 29.0% +0.8P Selling, general and administrative expenses 92,105 98,500 +6.9% Operating profit 76,229 81,000 +6.3% Operating profit ratio 12.8% 13.1% +0.3P Ordinary profit 76,511 81,000 +5.9% Profit attributable to owners of parent 46,624 57,000 +22.3% (Unit: millions of yen) Fiscal 2026 Actual results Fiscal 2027 Forecast Year-on-year change Offering Service Business Net sales 160,574 164,100 +2.2% Operating profit 10,442 11,250 +7.7% Operating profit ratio 6.5% 6.9% +0.4P Business Process Management Net sales 44,092 44,300 +0.5% Operating profit 6,397 6,250 -2.3% Operating profit ratio 14.5% 14.1% -0.4P Financial IT Business Net sales 98,730 108,500 +9.9% Operating profit 12,729 14,900 +17.0% Operating profit ratio 12.9% 13.7% +0.8P Industrial IT Business Net sales 133,396 137,000 +2.7% Operating profit 22,507 23,100 +2.6% Operating profit ratio 16.9% 16.9% -0.0P Regional IT Solutions Net sales 184,238 191,000 +3.7% Operating profit 23,328 25,000 +7.2% Operating profit ratio 12.7% 13.1% +0.4P Other Net sales 10,397 10,600 +1.9% Operating profit 940 800 -14.9% Operating profit ratio 9.0% 7.5% -1.5P The Company has adopted a target total payout ratio of 50% as its basic shareholder return policy under the Medium-term Management Plan (2024–2026). As a result of the aforementioned repurchase of treasury shares (excluding the portion acquired for the purpose of optimizing the capital structure), the total payout ratio for the current consolidated fiscal year is expected to be 47.7%, based on the current consolidated earnings forecast and dividend forecast. The Company believes that, in order to continuously enhance profit distribution to shareholders in line with business growth, it is desirable to implement shareholder returns based on profits generated from operating activities that are not affected by temporary gains or losses. Based on this approach, the total payout ratio is expected to be at a level consistent with the Company's basic policy. Note: The total return ratio is the ratio of the total amount of dividends and share buybacks to profit attributable to owners of parent. Consolidated Financial Statements Consolidated Balance Sheets Assets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Current assets Cash and deposits 87,235 82,059 Notes and accounts receivable - trade, and contract assets 144,106 121,256 Lease receivables and investments in leases 5,025 4,913 Securities 10,229 872 Merchandise and finished goods 5,510 5,302 Work in process 1,542 1,205 Raw materials and supplies 166 174 Other 41,708 52,116 Allowance for doubtful accounts (231) (242) Total current assets 295,295 267,657 Non-current assets Property, plant and equipment Buildings and structures, net 36,773 37,659 Machinery, equipment and vehicles, net 6,135 6,086 Land 35,712 41,467 Leased assets, net 3,664 3,316 Other, net 6,600 6,803 Total property, plant and equipment 88,886 95,333 Intangible assets Software 16,275 15,700 Software in progress 3,311 4,948 Goodwill 7,969 7,738 Other 19,112 18,793 Total intangible assets 46,669 47,180 Investments and other assets Investment securities 58,705 56,363 Retirement benefit asset 18,848 18,746 Deferred tax assets 21,040 17,201 Other 22,124 22,227 Allowance for doubtful accounts (62) (54) Total investments and other assets 120,655 114,485 Total non-current assets 256,211 256,999 Total assets 551,507 524,657 Liabilities (Millions of yen) As of March 31, 2026 As of June 30, 2026 Current liabilities Notes and accounts payable - trade 30,064 27,215 Short-term borrowings 21,330 51,309 Income taxes payable 14,121 2,152 Provision for bonuses 17,994 9,180 Provision for loss on orders received 457 330 Provision for performance-linked compensation 321 427 Provision for loss on litigation 7,434 — Other provisions 169 284 Other 72,297 85,818 Total current liabilities 164,190 176,720 Non-current liabilities Long-term borrowings 13,494 8,300 Lease liabilities 3,408 3,035 Deferred tax liabilities 12,088 12,056 Provision for retirement benefits for directors (and other officers) 0 0 Provision for performance-linked compensation 738 534 Other provisions 177 67 Retirement benefit liability 10,456 10,566 Asset retirement obligations 7,051 7,061 Other 2,173 2,079 Total non-current liabilities 49,589 43,701 Total liabilities 213,780 220,422 Net assets Shareholders' equity Share capital 10,001 10,001 Capital surplus 4,111 4,111 Retained earnings 317,476 322,593 Treasury shares (31,284) (67,019) Total shareholders' equity 300,304 269,686 Accumulated other comprehensive income Valuation difference on available-for-sale securities 12,815 11,429 Deferred gains or losses on hedges (71) 1 Foreign currency translation adjustment 2,557 2,560 Remeasurements of defined benefit plans 9,124 8,763 Total accumulated other comprehensive income 24,426 22,755 Non-controlling interests 12,995 11,793 Total net assets 337,726 304,235 Total liabilities and net assets 551,507 524,657 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 140,316 150,111 Cost of sales 101,748 108,707 Gross profit 38,568 41,403 Selling, general and administrative expenses 22,214 23,056 Operating profit 16,353 18,347 Non-operating income Interest income 124 106 Dividend income 672 775 Other 218 206 Total non-operating income 1,015 1,088 Non-operating expenses Interest expenses 131 243 Share of loss of entities accounted for using equity method 94 122 Commission expenses 12 411 Other 65 233 Total non-operating expenses 304 1,010 Ordinary profit 17,064 18,424 Extraordinary income Gain on sale of non-current assets 674 4 Gain on sale of investment securities 1,354 2,488 Other 25 355 Total extraordinary income 2,054 2,849 Extraordinary losses Loss on retirement of non-current assets 16 23 Loss on valuation of investment securities 34 150 Other 5 24 Total extraordinary losses 56 197 Profit before income taxes 19,062 21,076 Income taxes - current 1,753 1,663 Income taxes - deferred 4,316 4,581 Total income taxes 6,070 6,244 Profit 12,992 14,831 Profit attributable to non-controlling interests 472 422 Profit attributable to owners of parent 12,520 14,409 Consolidated Statements of Comprehensive Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 12,992 14,831 Other comprehensive income Valuation difference on available-for-sale securities 2,506 (1,422) Deferred gains or losses on hedges (7) 150 Revaluation reserve for land 1,007 — Foreign currency translation adjustment (690) (241) Remeasurements of defined benefit plans, net of tax (152) (361) Share of other comprehensive income of entities accounted for using equity method (485) 180 Total other comprehensive income 2,178 (1,694) Comprehensive income 15,170 13,137 Comprehensive income attributable to Comprehensive income attributable to owners of parent 14,935 12,738 Comprehensive income attributable to non-controlling interests 235 398 Notes on the Consolidated Financial Statements (Segment Information, etc.) First Quarter, FY2026 (Apr. 1 - Jun. 30, 2025) Information on net sales and income by reportable segment (millions of yen) Reportable segment Other (Note 1) Total Adjustment (Note 2) Amount recorded in quarterly consolidate d statement of income (Note 3) Offering Service Business Business Process Managem ent Financial IT Business Industrial IT Business Regional IT Solutions Total Net sales Net sales to external customers Inter-segment sales or transfers 32,740 3,505 10,322 363 23,297 333 32,217 132 41,211 2,588 139,790 6,924 525 1,996 140,316 8,921 — (8,921) 140,316 — Total 36,246 10,686 23,631 32,349 43,800 146,714 2,522 149,237 (8,921) 140,316 Segment income 1,730 1,423 2,979 5,107 4,837 16,079 195 16,275 78 16,353 (Notes) 1. “Other” refers to business segments not included in the reportable segments, and consists of businesses incidental to the provision of various IT services, etc. The adjustment of segment income of ¥78 million includes the elimination of unrealized income of ¥125 million. Segment income has been adjusted to with operating profit recorded in the consolidated statements of income. First Quarter, FY2027 (Apr. 1 - Jun. 30, 2026) Information on net sales and income by reportable segment (millions of yen) Reportable segment Other (Note 1) Total Adjustment (Note 2) Amount recorded in quarterly consolidate d statement of income (Note 3) Offering Service Business Business Process Managem ent Financial IT Business Industrial IT Business Regional IT Solutions Total Net sales Net sales to external customers Inter-segment sales or transfers 35,770 4,061 10,734 315 25,217 584 33,928 148 43,905 1,949 149,556 7,059 554 2,121 150,111 9,181 — (9,181) 150,111 — Total 39,831 11,050 25,801 34,077 45,855 156,615 2,676 159,292 (9,181) 150,111 Segment income 1,643 1,437 3,528 6,201 5,271 18,083 267 18,350 (3) 18,347 (Notes) 1. “Other” refers to business segments not included in the reportable segments, and consists of businesses incidental to the provision of various IT services, etc. The adjustment of segment income of ¥-3 million includes the elimination of unrealized income of ¥14 million. Segment income has been adjusted to with operating profit recorded in the consolidated statements of income. (Notes on Significant Changes in the Amount of Shareholders’ Equity) The Company acquired treasury shares based on the written resolution of the Board of Directors dated March 10, 2026. As a result, treasury shares increased by ¥35,735 million during the first quarter of fiscal 2027, and treasury shares amounted to ¥67,019 million as of June 30, 2026. (Notes on the Going-concern Assumption) Not applicable (Notes on Quarterly Consolidated Statements of Cash Flows) Quarterly consolidated statement of cash flows for the first quarter of the current fiscal year has not been prepared. Depreciation (including amortization related to intangible assets, excluding goodwill) and amortization of goodwill for the first quarter of the current consolidated fiscal year are as follows. First Quarter, FY2026 (Apr. 1 - Jun. 30, 2025) First Quarter, FY2027 (Apr. 1 - Jun. 30, 2026) Depreciation 4,455 million yen 4,612 million yen Amortization of goodwill 182 221 (Revenue recognition) Disaggregated information on revenue from contracts with customers First Quarter, FY2026 (Apr. 1 - Jun. 30, 2025) (millions of yen) Reportable segment Other (Note 1) Total Offering Service Business Business Process Manage ment Financial IT Business Industrial IT Business Regional IT Solutions Total Software development 13,368 3,376 12,913 22,319 20,986 72,963 — 72,963 Operating and Cloud services 10,779 6,551 9,483 6,197 15,355 48,367 — 48,367 Product and Software Sales 8,593 394 901 3,700 4,869 18,459 — 18,459 Other — — — — — — 525 525 Total 32,740 10,322 23,297 32,217 41,211 139,790 525 140,316 (Notes) 1. “Other” refers to business segments not included in the reportable segments, and consists of businesses incidental to the provision of various IT services, etc. 2. The above includes income from lessor leases, as the amounts are insignificant and so they are not presented separately from revenue from contracts with customers. First Quarter, FY2027 (Apr. 1 - Jun. 30, 2026) (millions of yen) Reportable segment Other (Note 1) Total Offering Service Business Business Process Manage ment Financial IT Business Industrial IT Business Regional IT Solutions Total Software development 14,313 3,792 13,728 23,656 22,398 77,888 — 77,888 Operating and Cloud services 12,150 6,585 10,330 6,310 15,935 51,312 — 51,312 Product and Software Sales 9,307 356 1,158 3,961 5,571 20,355 — 20,355 Other — — — — — — 554 554 Total 35,770 10,734 25,217 33,928 43,905 149,556 554 150,111 (Notes) 1. “Other” refers to business segments not included in the reportable segments, and consists of businesses incidental to the provision of various IT services, etc. 2. The above includes income from lessor leases, as the amounts are insignificant and so they are not presented separately from revenue from contracts with customers. (Significant Subsequent Events) (Absorption-type merger of a consolidated subsidiary) The Company resolved at the meeting of the Board of Directors held on October 31, 2025 to conduct an absorption-type merger with INTEC Inc., a specified subsidiary and wholly owned subsidiary of the Company, as the absorbed company, and completed the merger on July 1, 2026. Overview of the Transaction Name and Business Activities of the Company to be Merged Name of the combined company: INTEC Inc. Business Activities Software, System Integration, Networks, Outsourcing, IT Consulting Date of the Business Combination (Effective Date) July 1, 2026 Legal Form of Business Combination Absorption-type merger in which the Company is the surviving company and INTEC Inc. is the absorbed company. Details of Allotment Related to the Merger There was no allotment of shares or other cash or assets as a result of this merger. Name of the Company After the Merger TISI Inc. Purpose of the Merger In light of changes in the business environment surrounding the Group, the Company considers the early and steady realization of its long-term management policy, “Group Vision 2032,” to be extremely important. To this end, the Company determined that it was essential to merge with INTEC Inc. and build a stronger management and business foundation than ever before. Accordingly, the Company carried out the merger. Outline of the Accounting Treatment Implemented The merger was accounted for as a transaction under common control based on the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, January 16, 2019) and the "Guidance on Accounting Standards for Business Combinations and Accounting Standards for Business Divestitures" (ASBJ Guidance No. 10, January 16, 2019). (Cancellation of Treasury Shares) The Company resolved at the meeting of the Board of Directors held on July 30, 2026 to cancel treasury shares pursuant to Article 178 of the Companies Act, as follows. Reason for the Cancellation As a general rule, the Company holds treasury shares up to a maximum of 5% of the total number of issued shares, and cancels any holdings in excess of 5%. The treasury shares acquired pursuant to the written resolution of the Board of Directors dated March 10, 2026, equivalent to ¥50.0 billion, will be canceled in accordance with the Company’s policy for the purpose of eliminating concerns regarding future share dilution. Method of Cancellation Reduction of additional paid-in capital and retained earnings brought forward. Class of Shares to be Canceled Common stock. Number of Shares to be Canceled 13,700,000 shares (6.0% of the total number of issued shares before cancellation). Scheduled Date of Cancellation August 31, 2026 (scheduled). Total Number of Issued Shares After Cancellation 214,700,000 shares.

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