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FYE March 2027 Q1 Financial Results SORACOM , INC . August 12 , 2026 SORACOM
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2 FYE March 2027 Q1 Financial Summary Highlights Recurring Revenue Total Revenue EBITDA / Operating Profit JPY316M /215M YoY +48.6% YoY +52.1% YoY +81.5% / +69.3% JPY2.7B Executive Summary Note: (1) The share of global revenue (US, Europe, and Japanese customers in global accounts) within recurring revenue 0.00 JPY3.3B After -AI Organization Share of Global Revenue in Recurring Revenue (1) KPI of the SORACOM Platform 10M Connections YoY +45.9% %50.5 [Service Development] Industry -specialized AI agent [Productivity Improvement] SG&A ratio improved by 8.7 pt 206 Countries & Regions 581 Carriers /
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3 1 FYE March 2027 Q1 Financial Results 3 Appendix 2 Progress on Growth Strategy
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4 1 FYE March 2027 Q1 Financial Results 3 Appendix 2 Progress on Growth Strategy
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5 Resilient Recurring Revenue — Quarterly Trend Note: (1) As of FY3/26 year-end; annual churn = accounts with no recurring revenue in 12 months / qualifying accounts (2) FY25→FY26 NRR = this year's recurring from prior-year accounts / prior year's recurring revenue Low Churn Rate × High NRR — Recurring Revenue That Compounds NRR (2) %121 ChurnRate (1) ％0.4 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 Incremental Revenue Recurring Revenue YoY +48.6% (JPY MM)
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6 FY 3/27 Q1 Actual FY 3/26 Q1 Actual YoY Recurring Revenue 2,742 1,845 48.6% % of Revenue 81.0% 82.9% -1.9pt Revenue 3,384 2,225 52.1% Gross Profit 1,589 1,223 29.9% % Margin 47.0% 55.0% -8.0pt SG&A 1,373 1,096 25.3% % of Revenue 40.6% 49.3% -8.7pt EBITDA 316 174 81.5% % of Margin 9.4% 7.8% +1.6pt Operating Profit 215 127 69.3% % Margin 6.4% 5.7% +0.7pt FYE March 2027 Q1 Financial Results YoY Comparison • Recurring revenue grew 48.6% YoY to JPY 2.74B, while total revenue grew 52.1% YoY to JPY 3.38B • Gross profit grew 29.9% YoY to JPY 1.59B; gross margin declined 8.0pt due to the consolidation of Misora Connect • SG&A expenses as a percentage of revenue improved 8.7pt YoY to 40.6% • EBITDA grew 81.5% YoY to JPY 316M, and operating income grew 69.3% YoY to JPY 215M (JPY MM)
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7 FY 3/27 Q1 Actual FY 3/27 Full-Year Forecast Achievement Rate Recurring Revenue 2,742 11,421 24.0% % of Revenue 81.0% 75.5% Revenue 3,384 15,124 22.4% Gross Profit 1,589 7,614 20.9% % Margin 47.0% 50.3% SG&A 1,373 6,492 21.2% % of Revenue 40.6% 42.9% EBITDA 316 1,650 19.2% % of Margin 9.4% 10.9% Operating Profit 215 1,122 19.2% % Margin 6.4% 7.4% FYE March 2027 Q1 Financial Results vs. Forecast • Both recurring revenue and total revenue are progressing steadily against the full-year forecast • SG&A expenses continue to benefit from ongoing cost efficiency gains through AI adoption • EBITDA and operating income are also progressing steadily (JPY MM)
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8 [9.3k] [10.6k] 6.2k 7.1k 7.6k 8.1k 9.2k 10.4k 11.1k 0 3,000 6,000 9,000 12,000 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) Number of Paying Accounts (2)(3)Average Recurring Revenue per Paying Account (ARPA) (1)(2) Recurring Revenue KPIs: Group Recurring Revenue (= ARPA × Number of Paying Accounts) — Steady Growth Continues Notes: (1) Recurring revenue for each fiscal year is divided by the average number of paying accounts at the beginning and e nd of the same fiscal year; (2) Figures in [ ] represent Q1 values for each fiscal year; (3) Account numbers represent those at the end of each fiscal year ; (4) YoY for paying accounts is based on the average balance at the end of each quarter (JPY K) (Account) [799] [1,044] 394 502 589 688 761 947 1,060 0 300 600 900 1,200 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) YoY +30.6% YoY(4) +21.3%
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9 [1,052] [1,546] 828 1,396 2,153 2,887 3,759 4,968 6,069 16.0% 25.6% 34.2%36.4% 41.8%40.0%40.1% 0 2,000 4,000 6,000 8,000 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) FY3/27 Q1 YTD: 45.7% YoY +47.0% Global Revenue Global Revenue (1)(3) Global Revenue Up 47.0% YoY Now Over 40% of Total Revenue, 50% of Recurring Revenue UK Base JP Base US Base AI / IoT Connectivity Platform(2) Case Studies Case Studies Case Studies (JPY MM) Notes: (1) Revenue from US, Europe, and Japanese customers in global accounts (2) SORACOM‘s global coverage shown in blue; (3) Figures in [ ] represent Q1 values for each fiscal year % of Global Revenue in Total Revenue(1)
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10 [126] [249] [361] [631]568 1,200 1,952 0 500 1,000 1,500 2,000 2,500 3,000 FY3/24 FY3/25 FY3/26 FY3/27 Strong Growth Rate in the US Business Large US Market Delivers 71% CAGR, Plus New Large-Scale Wins US Revenue (1) Notes: (1) Figures in [ ] represent Q1 values for each fiscal year; (2) CAGR from FY3/24 Q1 to FY3/27 Q1 CAGR(1) +71% (JPY MM) New Use Case SPAN's Smart Distribution Panel A service that uses AI to analyze collected data, forecast energy demand, and optimize power supply — SORACOM was adopted for its highly reliable connectivity, which was the deciding factor
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11 Recurring Revenue KPIs: Global Global Drives Growth with Double -Digit Increases in Both ARPA and Number of Paying Accounts Number of Paying Accounts (2)(3)Average Recurring Revenue per Paying Account (ARPA) (1)(2) (JPY K) (Account) [2.2k] [2.7k] 1.2k 1.3k 1.5k 1.7k 2.1k 2.6k 2.8k 0 750 1,500 2,250 3,000 3,750 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) [1,757] [2,121] 848 959 1,306 1,606 1,751 1,911 2,118 0 500 1,000 1,500 2,000 2,500 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) Global ARPA is approximately double that of the group as a whole YoY +20.7% YoY(4) +27.6% Notes: (1) Recurring revenue for each fiscal year is divided by the average number of paying accounts at the beginning and e nd of the same fiscal year; (2) Figures in [ ] represent Q1 values for each fiscal year; (3) Account numbers represent those at the end of each fiscal year ; (4) YoY for paying accounts is based on the average balance at the end of each quarter
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12 Evolving into an After -AI Organization Generative AI Boosts Productivity — SG&A-to-Revenue Ratio Improves 8.7pt YoY SG&A Expenses Employees (1) 100% Employee AI Adoption Rate Product AI Integration AI-Enabled ～100% Code Written by Gen AI *Quality confirmed by humans 1,096 1,373 49.3% 40.6% -200.0% -150.0% -100.0% -50.0% 0.0% 50.0% 0 500 1,000 1,500 2,000 FY3/26 Q1 FY3/27 Q1 Personnel Marketing Other (JPY MM) 65% 8% 26% 61% 12% 27% (People) 57 58 96 116 22 22175 196 0 50 100 150 200 250 FY3/26 Q1 FY3/27 Q1 Engineer Business Back Office SG&A as % of Revenue Increase Mainly Due to M&A Note: (1) Employee count excludes executive directors and reflects the number at the end of each fiscal year Traditional Large Organization • Engineer • Business • Back Office Small Teams (Fewer People, More AI) Japan Business US Business Europe Business Auto/MVNE Business Sora-Cam Business Wisora Business New Business Existing Businesses
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13 1 FYE March 2027 Q1 Financial Results 3 Appendix 2 Progress on Growth Strategy
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14 Total IoT Market Size Extending our reach to the global IoT market by leveraging strengths across multiple IoT categories Source: IDC’s Worldwide Internet of Things Spending Guide (Dec, 2025) The market size for IoT platforms and IoT-related services is estimated as the total of the market sizes for IoT Platform, Cellular, and Services within the IoT market 2026(E) 2029(E) Worldwide (2029) USD 952.3B Platform and Application, etc. Software USD 132.4B Cloud and data processing, etc. Infrastructure USD 73.8B Sensors and security equipment, etc. End points USD 308.1B Including Cellular / LPWA, etc. Connectivity USD 64.6B System design and Construction, etc. Service USD 62.6B
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15 Serviceable Obtainable Market JPY 50 B by 2031 Is Barely a Fraction of What's Possible Notes: (1) TAM (Total Addressable Market): the total addressable IoT market size. Based on the total IoT market (IDC forecast), our estimate extends the figure to 2031 using an approximate CAGR of 14.1% for 2026–2029; (2) SAM (Serviceable Available Market): the market size actually reachable with our business model. Calculated by applying the co nnectivity market‘s share (approx. 10.1%) within the total IoT market as of 2026 to the TAM estimate; (3) SOM (Serviceable Obtainable Market): the market size we actually aim to capture. Calculated from our FY2031/3 revenue target (¥50 billion) converted at ¥150/dollar; (4) The circle sizes above are schematic representations of the relative positions of TAM, SAM, and SOM, and do not reflect the actual scale of market size SOMSAM IoT Connectivity Market USD 124.9B(2) TAM Total IoT Market USD 1,239B(1) FY3/31 Expected Revenue Range: USD 333M(3) (JPY 50 B)
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16 12,423 50,000 FY3/26 (Actual) FY3/31 0 10,000 20,000 30,000 40,000 50,000 Built a High -Growth Foundation via Global Expansion, Strategic Alliances, M&A Pursuing Exponential Growth through Organic × Inorganic Strategies Expected Revenue Range by FY 3/31 Revenue CAGR(1) 30%+ Recurring Revenue Ratio 70～80% Inorganic Ratio 20～30% Organic EBITDA Margin 20%+ Note: (1) CAGR from FY3/26 to FY3/31 Inorganic (JPY MM) 5-Year Expected Revenue Range B50JPY
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17 Services for Carriers Providing cloud-native mobile core to domestic and overseas MNOs, driving replacement of legacy telecom equipment Connected Car Using next-gen eSIM as the backbone, providing seamless in- vehicle connectivity across borders to domestic and overseas mobility companies AI-Native Camera Cloud camera × AI analytics to visualize the physical world in real time and integrate field data into management decisions AI × IoT Solutions End-to-end solution business combining connectivity, cloud, and devices — creating a new revenue pillar for the Physical AI era Global No. 1 AI / IoT Connectivity Platform Creating Synergies Across New Growth Markets Progress Across All Four Growth Areas Evolving into a Platform that Connects Both the Physical and Digital Worlds to AI Global No. 1 AI / IoT Connectivity Platform A B C D E
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18 Beyond Massive IoT / Industrial DX, the Market Expands Further into Physical AI Massive IoT Data Volume: Small Several MB and up Representative Examples Smart meters, equipment monitoring, etc. Nature of Growth A foundation for stable growth, driven by large unit volumes and long-term usage Industrial DX Data Volume: Medium Several hundred MB and up Representative Examples Remote control, payment terminals, telematics, etc. Nature of Growth Applications span a wide range of operations and are embedded into on-site workflows, resulting in high switching costs Physical AI Data Volume: Large Tens of GB and up Representative Examples AI cameras, drones, autonomous driving, etc. Nature of Growth Market expansion is underway, driven by video × AI, resulting in large data volumes and high unit prices Smart Metering Temp Monitoring Railway CBM Store Camera Bus SecurityRemote BMS Tuning AI / IoT Connectivity Platform: Current Market Shift A
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19 Total Connections Surpassed 10 Million(1) in July 2026 AI / IoT Connectivity Platform: Number of Connections A Note: (1) Total number of connections for SORACOM Air (including SORACOM Air for Cellular, Sigfox, and LoRaWAN), combined with the number of connections for Misora Connect, Inc.
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20 • Recognized for Completeness of Vision and Ability to Execute Source：Gartner® Magic Quadrant for Managed IoT Connectivity Services, Worldwide, by Pablo Arriandiaga, Kameron Chao, Jon Dressel at 4 May 2026 Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. GARTNER and MAGIC QUADRANT are trademarks of Gartner, Inc. and its affiliates. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Soracom. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this stockholder presentation), and the opinions expressed in the Gartner Content are subject to change without notice. Soracom-KDDI Named a Leader 2026 Gartner Magic Quadrant for Managed IoT Connectivity Services, Worldwide AI / IoT Connectivity Platform: Global Recognition ① A
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21 • Recognized for directly embedding generative AI into the IoT development workflow • The only vendor offering a complete set of features (SORACOM Flux, SORACOM Query, MCP Server, etc.) that let both engineers and non-engineers build AI- integrated IoT applications on the platform Soracom Named a “Most Valuable Pioneer“ QKS Group — AI Maturity Matrix For IoT Connectivity Management Platform, 2026 AI / IoT Connectivity Platform: Global Recognition ② A
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22 Now Offering Our Cloud-Native Mobile Core Technology to Domestic and International MNOs/MVNOs ⚫ 包括契約の中でKDDIのIoTプラットフォーム戦略の支援を実施 YoY +21% • Existing KDDI business tracked in line with last year in Q1, with revenue growth expected for the first half • Began newly providing SORACOM's subscriber management database (HSS) to Misora Connect • Launched a new business exporting our software-based cloud-native core to domestic and international telecom operators, targeting the multi-billion-dollar MNO equipment replacement market Customers Worldwide SORACOM Cloud-Native Core Network infrastructure redesigned for the cloud Core Network Functions Platform Services Providing SORACOM's Cloud-Native Software to Support Partner Telecom Operators' Businesses Line Reselling Partner Telecom Operator Evolves based on customer feedback Subscriber Management (HSS/HLR) Packet Forwarding (UPF/PGW) Messaging & Voice (IMS, SMSC) AI / Cloud Integration AI Data Analytics, Billing & Monitoring API / Console Services for Carriers B
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23 Launching 'SORACOM Automotive Suite,' an End-to-End Solution for Connected Cars, with Plans to Expand Automaker and Telecom Partnerships Connected Car App-Based Control and Status Monitoring Firmware and AI Model Updates Infotainment and In-Car WiFi Operator Calls and Emergency Notifications Connected Car C
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24 Price: Open Pricing Launching in September LTE-Equipped, Outdoor-Ready Cloud Camera Digitizing Any Site with Ease — The Eye of the AI Era IP65 Waterproof / Dustproof LTE Connectivity Motion Detection Night Vision Zero Setup Compact 4x Optical Zoom Announcing a New Model with Built-In Cellular Connectivity — Plug In and Go, Driving Adoption in Construction and Safety Management AI Integration AI-Native Camera D
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TOYOTA INDUSTRIES CORPORATION Using AI to analyze vehicle footage captured by IoT cameras, reading license plates to digitize truck entry and exit times, and applying this data to understand on-site dwell time SORACOM services used: Soracom Cloud Camera Services, SORACOM Flux Manufacturing Customer Case Study Device used: SORACAM Outdoor Starter Kit *Currently in proof-of-concept testing
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Japan Airlines Co., Ltd. JALCargo Service Co.,Ltd. Streamlining operations through remote monitoring and AI image analysis of storage utilization rates inside container- type cold storage units located across the airport, built in-house by employees using SORACAM Sora-Cam Customer Case Study Transportation & Logistics Services used: Soracom Cloud Camera Services, SORACOM Flux Device used: ATOM Cam 2
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27 An AI Agent Trained on SORACOM's Expertise Helps Users Articulate, Implement, and Operationalize IoT Complexity and Tacit Knowledge New!! New A u t o n o m y Long - Te r m M e m o r y S e c u r e F u l l y M a n a g e d O n c e g i v e n a g o a l , i t a u t o n o m o u s l yc o m p l e t e s t a s k s — n o n e e d t o b e a n e x p e r t , j u s t a s k c a s u a l l y R e t a i n s l o n g- t e r m m e m o r y o f t h e p r o j e c t, a c c u m u l a t i n g o n- s i t e t a c i t k n o w l e d g e o v e r t i m e R u n s i n a n i s o l a t e d e n v i r o n m e n tf o r e a c h u s e r ; a n y d a t a e n t e r e d r e m a i n s t h e u s e r ' s o w n i n t e l l e c t u a l asset A m a n a g e d s e r v i c e r e q u i r i n g no l o c a l e n v i r o n m e n t— r e a d y t o u s e i n s t a n t l yv i a S O R A C O M ' s w e b c o n s o l e AI × IoT Solutions: SORACOM Agent E
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28 Chat with the AI Agent — It Operates the Camera, Analyzes Images, and Notifies You of Results" New!! New AI × IoT Solutions: SORACOM Agent Demo ① E There should be a LOVOT in the SORACOM office — find it and show me a still image of that moment.
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29 End-to-End Support Across Spec Creation, Device Building, and IoT App Development New!! New .md Spec Creation Support Device Building Support IoT App Development Support AI × IoT Solutions: SORACOM Agent Demo ② E .md Spec Creation Support Device uilding Support IoT App Development Support
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30 Today’s Summary FYE March 2027 Q1: Strong growth — recurring revenue +48.6%, revenue +52.1%, global share of recurring revenue at 50.5%1 All four growth areas — services for carriers, connected car, AI-native cameras, AI × IoT solutions — progressing steadily3 AI / IoT connectivity platform surpasses 10 million connections, expanding global presence2
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31 1 FYE March 2027 Q1 Financial Results 3 Appendix 2 Progress on Growth Strategy
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32 (JPY MM) FY 3/25 Annual FY 3/26 Annual FY 3/27 Q1 Recurring Revenue 6,562 9,296 2,742 % of Revenue 73.0% 74.8% 81.0% Revenue 8,993 12,423 3,384 Gross Profit 5,033 6,143 1,589 % Margin 56.0% 49.4% 47.0% SG&A 4,376 5,271 1,373 % of Revenue 48.7% 42.4% 40.6% EBITDA 833 1,228 316 % Margin 9.3% 9.9% 9.4% Operating Profit 656 871 215 % Margin 7.3% 7.0% 6.4% Ordinary profit 619 857 202 % Margin 6.9% 6.9% 6.0% Profit attributable to owners of parent 352 631 171 % Margin 3.9% 5.1% 5.1% Selected Income Statement
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33 Balance Sheet FY 3/25 Annual FY 3/26 Annual FY 3/27 Q1 Cash and Deposits 8,917 9,269 9,255 Accounts Receivable 2,428 2,312 2,009 Other Current Assets 962 1,218 1,293 Current Assets 12,308 12,799 12,558 Tangible Assets 85 511 488 Intangible Assets 554 1,732 1,788 Investments and other assets 437 447 437 Fixed Assets 1,077 2,690 2,714 Total Deferred Assets 17 9 7 Total Assets 13,403 15,499 15,280 FY 3/25 Annual FY 3/26 Annual FY 3/27 Q1 Accounts Payable 814 756 659 Contract Liabilities 836 1,148 1,134 Long-term loans *repayable within 1 year 249 249 249 Other Current Liabilities 419 1,057 805 Current Liabilities 2,319 3,212 2,849 Lease - 67 62 Long-term loans 687 437 375 Other Fixed Liabilities 40 33 35 Fixed Liabilities 728 539 472 Total Liabilities 3,048 3,752 3,322 Shareholder’s Equity 9,878 10,720 10,969 Others 476 1,027 988 Total Net Assets 10,355 11,747 11,957 Total Liabilities and Net Assets 13,403 15,499 15,280 (JPY MM)
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34 Cash Flow Statement FY 3/25 Annual FY 3/26 Annual FY 3/27 Q1 CF from operating activities -728 1,761 80 CF from investing activities -474 -1,382 -116 CF from financing activities 2,451 -67 10 Effect of exchange rate change on cash and cash equivalents -27 40 11 Net increase (decrease) in cash and cash equivalents 1,220 351 -14 Term-end cash and cash equivalents 8,917 9,269 9,255 (JPY MM)
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35 Capital Allocation Policy Growth Investment First, Excess Capital Returned Flexibly Notes: (1) Net cash = cash and cash equivalents minus interest-bearing debt (including lease obligations); (2) ROIC (Return on Invested Capital) > WACC (Weighted Average Cost of Capital) = the return generated from an investment exceeds the cost of capital required for that investment Capital Sources Current Financial Position (as of FY3/27 Q1-End) Cash and Cash Equivalents on Hand JPY 9.2B (Net Cash(1): JPY 8.5B) Equity Ratio: 78.6% (Low leverage, ample funding capacity) Shareholder Returns Return excess capital flexibly (e.g., share buybacks) when it can't be fully allocated to organic/inorganic growth within a set period Inorganic Growth Investment Disciplined investment where ROIC > WACC(2), funding our target of 20–30% revenue mix from inorganic growth by FYE March 2031 Organic Growth Investment Talent, R&D, and capex to support existing business growth Working Capital Minimum cash reserves for business continuity and contingencies Allocation Policy
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36 36 Corporate Philosophy Vision and Mission
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37 IoT SIM （5G/LTE/3G/LTE-M) SORACOM IoT Connectivity Remote Control AI Data Processing IoT Automation SORACOM Devices SORACOM Cloud LPWA / Satellite Wi-Fi / Wired Communication Modules Sensor Devices Partner Cloud Services AWS / Microsoft Google / OpenAI Partner Devices “Sora-Cam,” the AI Eye AI Agent “SORACOM Agent” SORACOM’s AI / IoT Connectivity Platform AI / CloudIoT / AI Devices IoT Connectivity Incremental Revenue Recurring Revenue High-Capacity Connectivity for Physical AI
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38 Current Growth Drivers Driving Exponential Growth from a Cloud -Native Mobile Core, Powered by Two Growth Drivers Combined with AI and Inorganic Strategies Core IoT Growth & Expansion 1 Global Expansion 2 Current Position ①Core IoT Growth & Expansion ⚫ Domestic Connectivity Demand Surge from Industrial AI Adoption ⚫ Accelerating Domestic Group Company Growth ⚫ Connected Car / IoT Infrastructure for Carriers Inorganic (M&A) ⚫ Regional (Overseas M&A) + Technology Complementarity ⚫ Global Niche IoT Solutions ＋ AI × IoT ⚫ End-to-End AI × IoT Platform from Edge to Cloud ⚫ Operational Automation Powered by Generative AI ⚫ Cost Reduction ▲ Drivers Acting Across All Phases ▲ Note: (1) For details, see next page ②Global Expansion ⚫ Achieving Global No. 1 in AI / IoT Connectivity Platforms ⚫ Rapid Expansion Through Acquisition of Overseas IoT MVNOs ⚫ Phased Entry into Regions Adjacent to Europe and the Americas
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39 ①Core IoT Growth & Expansion ②Global Expansion Vertically integrating connectivity functions around SGP.32-compliant eSIM management (Remote SIM Provisioning), expanding connected car case studies, and capturing MNO infrastructure refresh demand worth hundreds of billions of yen through cloud-based replacement of legacy telecom equipment. Connected Car / IoT Infrastructure Business for Carriers Structural growth in demand for high-bandwidth, low- latency, high-reliability connectivity infrastructure as domestic industries pursue AI readiness. The shift to AI- driven connectivity is pushing up both connection volumes and per-connection value, entering a phase of accelerated growth. Surging Domestic Connectivity Demand Integrating group assets such as Misora Connect and Cariot to expand the economic ecosystem. Driving cross- sell, reducing costs through network integration, and improving group-wide profitability by infusing SORACOM's technology capabilities. Accelerating Domestic Group Company Growth Expanding into high-growth emerging markets including Latin America and Asia. Leveraging local partnerships and global coverage as weapons to capture IoT market growth in new regions ahead of competitors. Phased Entry into Regions Adjacent to Europe and the Americas Adoption expanding into social and industrial infrastructure, centered on the US and EU. Global revenue ratio exceeds 40%. Deepening collaboration with TSD⁽¹⁾ in the US to accelerate customer acquisition, targeting a global revenue ratio above 50%. Achieving Global No. 1 in AI / IoT Connectivity Platform Replacing legacy infrastructure at acquired companies with a cloud-native mobile core to simultaneously achieve cost reduction and service quality improvement. Selecting targets on both regional and technology complementarity axes to make Global No. 1 irreversible. Rapid Expansion Through Overseas IoT MVNO Acquisitions Note: (1) TSD (Technology Solution Distributor): A large-scale technology solution distribution company with a network of thousands of TSA s (Technology Solution Advisors — partners that combine products and services from multiple vendors to deliver optimal solutions to end users). Growth Drivers in Detail
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40 New!! 2 1 3a 3b Integrating with AI -Native Cameras: SORACOM Flux Simplifying Generative AI Integration with SORACAM to Streamline Operations Cloud Recording Starts Simply by Connecting to Wi-Fi “Sora-Cam,” the AI Eye Cameras in restricted areas detect human presence Generative AI analysis of images with detected humans Add an action to turn on the signal tower light Add an action to place an emergency callLow-Code IoT App Builder SORACOM Flux - Warning from Warehouse AI - • OpenAI • Anthropic • Gemini D
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41 [1,845] [2,742]2,324 3,348 4,325 5,382 6,562 9,296 11,421 44.8% 61.4% 68.7% 67.9% 73.0% 74.8% 75.5% -20% 0% 20% 40% 60% 80% 0 4,000 8,000 12,000 16,000 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) Recurring Revenue Revenue FY3/27 Maintains Focus on Recurring Revenue, Targeting 22.8% YoY Organically Recurring Revenue & Revenue Growth Forecast (JPY MM) (JPY MM) Recurring Revenue as a % of Total Revenue YoY +48.6% FY3/27 Q1 YTD: 81.0% [2,225][3,384] 5,186 5,450 6,299 7,928 8,993 12,423 15,124 -15% 5% 25% 45% 65% 85% 0 4,000 8,000 12,000 16,000 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) YoY +52.1% Note: (1) Figures in [ ] represent Q1 values for each fiscal year
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42 [1,223] [1,589] 2,305 2,727 3,270 4,492 5,033 6,143 7,614 0 2,000 4,000 6,000 8,000 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) YoY +29.9% Gross Profit Growth Gross Profit Gross Profit Margin Gross Profit Delivers Double -Digit Growth Despite Temporary Margin Impact from Misora Connect Consolidation 44.5% 50.0% 51.9% 56.7% 56.0% 49.4% 50.3% 20% 40% 60% 80% FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) (JPY MM) FY3/27 Q1 YTD: 47.0% Note: (1) Figures in [ ] represent Q1 values for each fiscal year
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43 1,025 1,096 1,373 54.2% 49.3% 40.6% -150.0% -100.0% -50.0% 0.0% 50.0% 0 500 1,000 1,500 2,000 FY3/25 Q1 FY3/26 Q1 FY3/27 Q1 Personnel Marketing Other [134] [174] [316] [94] [127] [215] 833 1,228 1,650 656 871 1,122 0 400 800 1,200 1,600 2,000 FY3/25 FY3/26 FY3/27 (E) FY3/25 FY3/26 FY3/27 (E) 54 57 58 79 96 116 24 22 22157 175 196 0 50 100 150 200 250 FY3/25 Q1 FY3/26 Q1 FY3/27 Q1 Engineer Business Back Office YoY +81.5% Employees (1)SG&A Expenses EBITDA / Operating Profit (2) SG&A and EBITDA EBITDA and Operating Profit Increased Significantly, Driven by SG&A Cost Control through Generative AI and Other Initiatives EBITDA Notes: (1) Employee count excludes executive directors and reflects the number at the end of each fiscal year; (2) Figures in [ ] represent Q1 values for each fiscal year YoY +31% EBITDA Operating Profit SG&A as % of Revenue (JPY MM) (JPY MM)(People) 69% 13% 20% 65% 8% 26% 61% 12% 27% YoY +69.3%
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44 [950] [1,386]878 1,203 1,840 2,586 3,376 4,458 5,676 37.8%35.9% 42.6% 48.0%51.5%48.0%49.7% 0 2,000 4,000 6,000 8,000 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E) Global revenue as % of recurring revenue FY3/27 Q1 YTD: 50.5% YoY +45.9% Strong US Growth Drives Global Expansion Distributor Strategy Fuels High US Growth with Minimal Resources Distributor StrategyGlobal Share of Recurring Revenue (1)(2) Notes: (1) Figures in [ ] represent Q1 values for each fiscal year; (2) Revenue from customers in the US, Europe, and Japanese customers in global accounts (3) Technology Solution Distributor: large-scale tech solution distribution company with thousands of TSA partners (4) Technology Solution Advisor: partner that combines pro ducts and services from multiple vendors to deliver optimal solutions SORACOM TSA(4) TSA(4) TSA(4) TSA(4) Compares multiple vendors and recommends the optimal solution for each customer TSD(3) Thousands of TSA partners (incl. Intelisys, TD SYNNEX) (JPY MM)
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45 Expected Exchange Rate Impact Fluctuations due to one yen depreciation Revenue An increase of 40 MM JPY Operating Profit The impact is largely neutral (an increase of 4 MM JPY) Expected Exchange Rate 150.00 JPY / USD
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46 Recurring Revenue FYE March 2027 Q1 Recurring Revenue (JPY MM) Recurring Revenue Remains Strong, Up 41.6%YoY on a Currency-Adjusted Basis, Maintaining High Growth Exchange Rate FY3/26 Q1 144.59 JPY / USD FY 3/27 Q1 159.45 JPY / USD Actual Constant Currency(1) Note: (1) Based on 145 JPY / USD 1,845 2,742 1,848 2,616 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1 Q1 Q1 Q1 FY3/26 FY3/27 FY3/26 FY3/27 YoY +48.6% YoY +41.6%
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47 8,993 12,423 15,124 0 5,000 10,000 15,000 20,000 FY3/25 FY3/26 FY3/27 (E) Vesting Condition • Vesting Condition of Non-GAAP OP Margin is over 10% • Vesting Condition of Profitable Growth (Recurring revenue growth rate + Non- GAAP OP margin) is over 40% Progress on Vesting Conditions for Paid Stock Options Vesting Conditions: Early Achievement of Revenue Over JPY 20B (Recurring Revenue Over JPY 14B) and Market Cap Over JPY 150B RevenueRecurring Revenue 6,562 9,296 11,421 0 5,000 10,000 15,000 20,000 FY3/25 FY3/26 FY3/27 (E） Vesting Condition (JPY MM) ×2 ×2 Over 14B JPY Over 20B JPY
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48 Profitable Growth = Recurring Revenue Growth EBITDA Margin+ KPI for Achieving Profitable Growth Focusing on Recurring Revenue Growth While Maintaining Profitability Note: (1) Non-GAAP Operating Profit-based Profitable Growth: Non-GAAP Profitable Growth FY3/23: 30.8%、FY3/24:33.9%、FY3/25: 29.9%、FY3/26: 49.7％、FY3/27(E): 31.4% • FY3/26 Profitable Growth of 51.6% Significantly Exceeded the 40% Target • FY3/27 recurring revenue shifts to an organic basis, while EBITDA Margin improves by 1.0pt, advancing a healthier revenue structure Sustainably Achieving the 40% Target 2.7% 10.5% 9.3% 9.9% 10.9% 29.2% 24.4% 21.9% 41.7% 22.8% 31.9% 35.0% 31.2% 51.6% 33.8% 0% 10% 20% 30% 40% 50% 60% FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 (E)EBITDA Margin Recurring Revenue Growth Rate FY3/27 Q1 YTD: 58.0%
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49 Legal Disclaimer This document has been prepared by SORACOM, INC. (the “Company”) solely for the informational purposes of explaining company information and does not constitute a solicitation of purchase or sale of securities in any jurisdiction including Japan, the United States, or any other jurisdiction. The offer or sale of its securities in Japan, the United States, or any other area cannot be conducted without registration or notification based on applicable laws or exemptions derived therefrom. In preparing this document, the Company has relied on the truthfulness, accuracy, and completeness of the information available to it at the time of its preparation. The information contained in this document may be subject to change without prior notice. This document and its contents cannot be disclosed to or used by any third party for any purpose without the prior written consent of the Company. Descriptions contained in this document regarding future business activities or performance are forward-looking statements. Forward-looking statements include expressions such as "aim," "predict," "assume," "believe," "sustain," "attempt," "estimate," "anticipate," "initiative," "intend," "plan," "potentially," "likelihood," "scheme," "intention," "risk," "pursue," "supposed to," "endeavor," "aspire," "intend to," "planned," or other similar expressions describing future business activities, performance, events, or situations. Forward-looking statements are based on the judgment of the Company's management at the time of preparation of this document, taking into account information available at that time, and these statements contain various risks and uncertainties. Therefore, these forward-looking statements may be influenced by various risks and uncertainties, and actual future business activities or performance may differ from the expectations explicitly or implicitly expressed in the forward-looking statements. Information related to companies or parties other than the Company or information created by them is generally based on publicly available information and other information cited in this document, and the Company has not independently verified the accuracy and appropriateness of such information, nor does it provide any guarantees regarding such information. This English translation is provided for convenience only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese version shall prevail. Contact Information IR manager Email：ir-contact@soracom.jp Website：https://soracom.com/en/ir