Business Overview for the First 2 Quarters of Fiscal 2025

*Disclaimer:

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.

Securities Code: 9474

Results for 2Qs of FY25

Ⅲ. Business Overview

1. Product

Actual results for 2Qs of FY25

7.4 billion yen YoY +0.1 bil. yen (+1.4%)

• Stock-typeservice performed well, but decline in flow-type products sales & shift to API kept the overall result on per with previous year's.

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Business Overview for 1st half of FY25

• • Price revisions were applied as planned, including for existing customers.
  • A new lineup debuted in 1st half of FY25, expanding our offerings to six series.
• Printed ResidentialMap / Data provision / Entrusted services

【Flow-type】

• Impact of the shift to ZENRIN Maps API (Approx.-0.3bil.yen）
• • Efforts are underway to propose API adoptionto existing customers who previously relied on standalone data offerings or GIS packages.

• Post-transition,net sales will be recorded under the IoT business, leading to a decline in the product business's net sales.

Supplemental info ：ZENRIN Maps API Overview →[P16]

Initiative for 2nd half of FY25

• GIS package

• Releasing add-on features* to enhance convenience for existing customers and drive upselling efforts.

*Released on11/6:Registration informationretrievalfeaturefor"GIS PackageReal Estate," available foranadditional¥1,100/month.

• Alongside stock-type services and API proposals supporting corporate DX, traditional product offerings are also being

promoted.

ＺＧＰ２５ Goal

Expand the sales ratio of stock-type services

to 70% of net sales.

Results for 2Qs of FY25

Ⅲ. Business Overview

2. Public Solution

Actual results for 2Qs of FY25

2.9 billion yen YoY + 0.0 bil. yen (＋1.1%)

• Despite a decline following last year's large-scale entrusted projects, increased map data provision and new contracts kept performance on par with the previous year.

23/3 24/3 25/3

Business Overview for 1st half of FY25

• Provision of residential map data [Flow-type]
• • Provision of residential map data local governments increased.
• Entrustedservices [Flow-type]
• • Custom map production contracts, survey contracts, and DX-

related projects increased.

（Examples）

1. [DisasterPrevention]Amendmentsto relatedlawssuchastheFloodControlAct→ Revisionofdamagepredictionareas→Updatestohazardmaps.
2. [Surveying]Amendmentsto theVacantHousesCountermeasuresAct→Commissioned forregularcycleinformationupdates.
3. [DigitalTransformation(DX)]Taskscommissioneddueto thedigitizationand systemizationofmunicipalpaperledgers(e.g.,taskoutsourcing,addressdata cleansing/normalization).
4. [SmartCity]CasestudyinChichibuCity,SaitamaPrefecture:Socialimplementationof shareddelivery,dronelogistics,andon-demandtransportation.

Initiative for 2nd half of FY25

• Net sales is expected to decline year-on-year due to the reactionary drop from last fiscal year's large-scale orders. However, efforts are focused on strengtheningstock-type services* to build a stable, mid-term sales foundation.
• Leveragingmunicipal relationships established through disaster support agreements (759municipalities)and stock-based services* (approximately500 municipalities),ZENRIN is actively proposing DX solutions to address regional challenges.
  *Examples: "ZenrinResidential Map LGWAN"and "Residential Maps for WEB"

ＺＧＰ２５ Goal

Increase sales through a shift from flow-type businesses to stock-type businesses and provide entrusted solutions.

Results for 2Qs of FY25

Ⅲ. Business Overview

3. Marketing Solution

Actual results for 2Qs of FY25

3.2 billion yen YoY +0.0 bil. yen (+1.2%)

• Sales promotion supporting services were robust

Business Overview for 1st half of FY25

• "RakuRaku sales promotion map" [Flow-type/Stock-type]
• • "Selection services," a version of "RakuRaku sales promotion map" with added optional area analysis and posting services, performed well.
• Consulting services [Flow-type/Stock-type]
• • Marketing support packages and consulting services are being offered to companies with multiple store locations.

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(Industryexamples)

[Retail]Supermarkets,drugstores,restaurants, furniture,apparel,petshops,caraccessories, mobilesales,etc.

[Entertainment]Video games, pachinkoparlors, etc.

[Services]Beautysalons,laundromats,fitness centers,autorepair,carsharing,coinparking,real estate,mobilesales,weddingandfuneralservices, buy-and-sellshops,storageunits,transportation services,etc.

Initiative for 2nd half of FY25

• Continue to promote the sales of sales promotion support packages through expansion of target industries.
• Provide and expand high value-added services by first offering packages.

ＺＧＰ２５ Goal

Expand revenue by solving sales promotion issues of regional SMEs and sole business proprietors.

Results for 2Qs of FY25

Ⅲ. Business Overview

4. IoT

Actual results for 2Qs of FY25

6.8 billion yen YoY +0.4 bil. yen (+6.6%)

• ZENRIN Maps API performing well
• Solution Services also performing well

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Business Overview for 1st half of FY25

By integrating with customer business systems/websites, this development tool allows access to the latest map data and advanced location-based features from the ZENRIN database server. Compared to full scratch development, it enables cost-effective and rapid system construction.

• Increasing number of companies are using it, driven by the need to DX their business operations.
• In addition to new customers, existing customers in the product business are transitioning to this solution.

• Slight increase in commissioned development.
• Through DX proposals utilizing map data, such as address cleansing (normalization) for logistics (delivery support systems) and business DX, the solution helps customers solve their challenges.

Initiative for 2nd half of FY25

• Solution services for large corporations

• Strengthening proposals and development for major logistics companies.

• ZENRIN Maps API

• Expand functions and services, including the addition of solution packages optimized for each industry/business, and promote a shift to a stock-type business.

ＺＧＰ２５ Goal

Expand sales by strengtheningindustry-specific solutions

utilizing "ZENRINMaps API."

Actual results for 2Qs of FY25

8.3 billion yen YoY +0.9 bil. yen (+13.0%)

• Along with increased data provision for car navigation systems, 1Q saw a temporary rise due to one-time factors.

Supplement: [Revenue RecognitionProcessfor NavigationBusiness]

1. Receivereportsfromcustomerson thenumberof unitsshipped(sold)using ourdataadoptionmodel.
2. Multiplythereportedunitsbythelicenseunitprice,issueaninvoice,and recognizethenetsales.

Domestic car sales: 2.16 million units (Previous year: 2.22 million units, -2.6%)

(Source:JapanAutomobileDealersAssociation&JapanLightMotorVehicleandMotorcycleAssociation,April2024-September2024)

Business Overview for 1st half of FY25

• Providing data for car navigation systems[Flow-type]
• • Despite an end to this market recovery cycle and the impact of some manufacturers halting shipments, increased market share from more adopted navigation modelsand price hikes from bundled appscontributed to revenue growth.
  • • While 1Q saw strong sales with certain manufacturers, 2Q is approaching the same level as previous year, and the outlook for the second half and full-year remains uncertain.
• For 1Q, sales from underreported quantities in previous years were recognized (one-time factor)
• • A specific manufacturer reported underreported shipments over the past few years, and sales for the shortfall were recognized in 1Q.
• Strengthening EV-related Co-Creation (Alliance)
• • 8/29: Pioneerand Zenrinstrengthencollaborationto addressindustry mobility challenges.
  • 9/20: MitsubishiMotors and ZENRIN group launchJapan'sfirst"EVbehavior analysisreport"usingEV driving/chargingdata and map information.

Initiative for 2nd half of FY25

• Price increase through higher added value
  ➢ Strengthen proposals for EV/ADAS content.
• Expanding market share

• Continue to propose switching to our data for manufacturers not yet using it.

ＺＧＰ２５ Goal

Expand the business domains and create high-added value through ADAS content.