Interim report
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―1― 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. October 15, 2026 Consolidated Financial Results for the Three Months Ended August 31, 2026 (Under Japanese GAAP) Company name: Pasona Group Inc. Listing: Tokyo Stock Exchange Securities code: 2168 URL: https://www.pasonagroup.co.jp Representative: Hirotaka Wakamoto, Representative Director, Chairperson and CEO Inquiries: Yuko Nakase, Executive Vice President and CFO Tel +81-3-6734-0200 Scheduled date to commence dividend payments: － Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the three months ended August 31, 2026 (June 1, 2026 to August 31, 2026) (1) 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 % August 31, 2026 79,327 3.1 93 － 94 － 496 － August 31, 2025 76,965 0.8 (568) － (64) － (606) － Note: Comprehensive income For the three months ended August 31, 2026: ¥597 million [－%] For the three months ended August 31, 2025: ¥(613) million [－%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen August 31, 2026 13.29 13.24 August 31, 2025 (15.92) － (2) Consolidated Financial Position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % August 31, 2026 228,667 130,101 54.4 May 31, 2026 235,482 132,929 53.9 Reference: Equity As of August 31, 2026: ¥124,391 million As of May 31, 2026: ¥126,888 million Note: Total assets as of August 31, 2026 and May 31, 2026 include temporary “Deposits received” from customers for contracted projects and the corresponding “Cash and deposits” in assets and liabilities. For details, please refer to “1. Overview of Business Results. ( 2) Overview of Financial Position for the Period under Review.” 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 May 31, 2026 － 0.00 － 75.00 75.00 Fiscal year ending May 31, 2027 － Fiscal year ending May 31, 2027 (Forecast) 0.00 － 75.00 75.00 Note: Revisions to the forecast of cash dividends most recently announced: None Note: Breakdown of the dividend for the fiscal year ended May 31, 2026 Ordinary dividend ¥15.00, Special dividend ¥60.00 Note: Breakdown of the dividend for the fiscal year ending May 31, 2027 (Forecast) Ordinary dividend ¥15.00, Special dividend ¥60.00
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―2― 3. Consolidated financial results forecast for the fiscal year ending May 31, 2027 (from June 1, 2026 to May 31, 2027) (Percentage figures are changes from the previous fiscal year.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 325,000 5.3 1,500 － 1,500 984.8 (1,000) － (26.77) Note: Revisions to the forecast of results most recently announced: None 4. NOTES (1) Significant changes in the scope of consolidation during the current period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement ⅰ) Changes in accounting policies due to revisions to accounting standards and other regulations: None ⅱ) Changes in accounting policies due to other reasons: None ⅲ) Changes in accounting estimates: None ⅳ) Restatement: None (4) Number of issued shares (common shares) ⅰ) Total number of issued shares at the end of the period (including treasury shares) As of August 31, 2026: 40,190,300 shares As of May 31, 2026: 40,190,300 shares ⅱ) Number of treasury shares at the end of the period As of August 31, 2026: 2,834,961 shares As of May 31, 2026: 2,837,873 shares ⅲ) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended August 31, 2026: 37,352,649 shares Three months ended August 31, 2025: 38,132,022 shares Note: The Company has introduced “Board Benefit Trust (BBT)” and “Employment Stock Ownership Plan (J -ESOP).” The Company’s shares in the BBT and J -ESOP, which are reported as treasury shares under Shareholders’ equity, are counted as the number of treasuries sha res as of the average number of shares outstanding for the period for the purpose of not including for computing basic earnings per share. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Explanation of appropriate use of earnings forecasts and other special notes (Cautionary statement regarding forward-looking statements) The forecasts are based on assumptions and beliefs in light of information available to management at the time of document preparation and accordingly include certain unconfirmed factors. As a result, readers are advised that actual results may differ materially from forecasts for a variety of reasons. For information regarding the assumptions underlying the earnings forecasts, please refer to attached document, “1. Overview of Business Results, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information.” (Method to obtain supplemental materials for financial results) Supplemental materials for the financial results have been posted on the Company’s website since October 15, 2026. https://www.pasonagroup.co.jp/english/ir/
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―3― Consolidated Financial Results for the Three Months Ended August 31, 2026 INDEX 1. Overview of Business Results (1) Overview of Operating Results for the Period under Review ………………………………………… 4 (2) Overview of Financial Position for the Period under Review ………………………………………… 8 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information …‥ 8 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheets ……………………………………………………………… 9 (2) Quarterly Consolidated Statements of Income ………………………………………………………‥ 11 (3) Quarterly Consolidated Statements of Comprehensive Income ……………………………………… 12 (4) Notes to Going Concern Assumption ………………………………………………………………… 13 (5) Notes on Significant Changes in the Shareholders’ Equity …………………………………………… 13 (6) Segment Information ………………………………………………………………………………… 13 (7) Notes to Statements of Cash Flows …………………………………………………………………… 14 (8) Important Subsequent Events ………………………………………………………………………… 14 3. Other (Investigation by the Japan Fair Trade Commission)……………………………………………………… 15
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―4― 1. Overview of Business Results (1) Overview of Operating Results for the Period under Review i) Business Results for the First Quarter ended August 31, 2026 Consolidated Financial Report (June 1, 2026 – August 31, 2026) (Millions of yen) Three months ended August 31, 2025 Three months ended August 31, 2026 Increase/ Decrease YoY Net sales 76,965 79,327 +2,362 +3.1% Gross profit 17,085 18,738 +1,653 +9.7% Selling, general and administrative expenses 17,653 18,645 +991 +5.6% Operating profit (loss) (568) 93 +662 － Ordinary profit (loss) (64) 94 +159 － Profit (Loss) attributable to owners of parent (606) 496 +1,103 － During the first quarter of the current consolidated fiscal year (hereinafter referred to as “the first quarter”), the Japanese economy experienced a moderate recovery, driven by a pickup in consumer spending and improvements in corporate earnings and the employment situation. At the same time, the economic outlook remained uncertain due to factors such as the situation in the Middle East. Under these circumstances, the Group’s business performance saw revenue growth in all segments except for BPO Solutions which was affected by the peak -out of large -scale contract projects, and the Placement/Recruiting business within Career Solutions where operating efficiency declined in the previous consolidated fiscal year (hereinafter referred to as “the previous fiscal year”). Although selling, general and administrative expenses increased due to costs associated with opening new facilities in the Regional Revitalization and Tourism Solutions segment and higher IT-related expenses in the BPO Solutions segment, consolidated operating profit rose compared to the same period last year, driven by higher consolidated ne t sales and an improvement in the gross profit margin. Non-operating income decreased year-on-year due to the absence of sponsorship income, merchandise sales and other revenues associated with Expo 2025 Osaka, Kansai, Japan that were recorded in the previous year. However, ordinary profit increased as expenses also declined. Furthermore, during the first quarter, profit attributable to owners of parent increased year-on-year because the Company recorded an extraordinary income due to the sale of shares and other securities held by the Company, the Company had recorded an extraordinary loss in connection with Expo exhibit related expenses in the same period last year and other factors.
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―5― ⅱ) Business Segment Information (before elimination of intersegment transactions) Segment Information (Figures include intersegment sales) Consolidated Net Sales by Segment (Millions of yen) Three months ended August 31, 2025 Three months ended August 31, 2026 Increase/ Decrease YoY HR Solutions 71,096 72,625 +1,529 +2.2% BPO Solutions (Contracting, Outsourcing) 33,071 32,787 (283) (0.9)% Expert Solutions (Temporary staffing) 34,680 36,538 +1,858 +5.4% Career Solutions (Placement/Recruiting, Outplacement) 3,345 3,299 (45) (1.4)% Global Solutions (Overseas Human Resource Services) 2,777 3,099 +322 +11.6% Life Solutions (Childcare support, Life support, etc.) 2,229 2,579 +349 +15.7% Regional Revitalization and Tourism Solutions 2,085 2,254 +168 +8.1% Elimination and Corporate (1,223) (1,231) (7) － Total 76,965 79,327 +2,362 +3.1% Consolidated Operating Profit (Loss) by Segment (Millions of yen) Three months ended August 31, 2025 Three months ended August 31, 2026 Increase/ Decrease YoY HR Solutions 3,432 4,089 ＋657 +19.1% BPO Solutions (Contracting, Outsourcing) 2,567 3,355 ＋787 +30.7% Expert Solutions (Temporary staffing) Career Solutions (Placement/Recruiting, Outplacement) 864 734 (130) (15.1)% Global Solutions (Overseas Human Resource Services) 26 142 ＋116 +440.9% Life Solutions (Childcare support, Life support, etc.) 18 115 ＋97 +533.6% Regional Revitalization and Tourism Solutions (336) (783) (446) － Elimination and Corporate (3,709) (3,471) ＋238 － Total (568) 93 ＋662 － HR Solutions Net sales ¥72,625 million Operating profit ¥4,089 million [BPO Solutions (Contracting, Outsourcing)] Net sales ¥32,787 million Although net sales declined due to the peak-out and completion of large-scale contract projects in public-sector, both net sales and gross profit margin performed steadily because new demand remained robust against the backdrop of companies’ digital transformation efforts and increasingly complex management challenges. In addition, “ProShare” —which is a service where professional talent solves corporate management challenges—continued to expand, and service unit prices rose due to an increase in high-value-added projects. In addition, we saw growth in facility management service contracts resulting from the reorganization and consolidation of our client companies’ operations, and Radiant Communication Sdn. Bhd. of Malaysia which became a consolidated subsidiary at the end of the previous fiscal year contributed to our financial performance. In September 2026, we made En Factory, Inc., which maintains a network of approximately 30,000 members registered as professionals, a subsidiary, and will continue to drive the further expansion of our BPO services.
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―6― [Expert Solutions (Temporary staffing)] Net sales ¥36,538 million The number of new registrants for temporary staffing continued to rise, following the trend from the previous fiscal year, and against a backdrop of steady demand for temporary staff, the number of new orders also grew year-on-year. Net sales increased primarily due to revisions in hourly staffing rates resulting from improved working conditions for temporary staff, further supported by the fact that the first quarter had one more business day than the same period last year. We are working to improve our contract conversion rate by streamlining the process leading up to staffing contracts and utilizing digital tools. Furthermore, as our clients’ staffing needs and business challenges become increasingly diverse, we provide the most suitable solutions for each client by accelerating proposals that incorporate BPO solutions. [BPO Solutions・Expert Solutions] Net sales ¥69,325 million Operating profit ¥3,355million Gross profit increased due to improved gross profit margins in both segments. In addition, although selling, general, and administrative expenses including personnel costs and IT -related expenses rose, consolidated operating profit increased. [Career Solutions (Placement/Recruiting, Outplacement)] Net sales ¥3,299 million Operating profit ¥734 million In the Placement/Recruiting business, net sales for the first quarter declined due to a lack of growth in the number of successful placements in the previous quarter. However, as we continue to improve business processes and enhance operational efficiency through digital tools including AI, the number of successful placements is showing signs of recovery in the first quarter. In the Outplacement services business, net sales increased as the number of users remained at a high level. Additionally, the replacement of certain core systems resulted in related expenses and an increase in depreciation expenses. As a result, the segment’s net sales decreased, and operating profit also declined. Global Solutions (Overseas Human Resource Services) Net sales ¥3,099 million Operating profit ¥142 million In the U.S., net sales increased in BPO services such as accounting and temporary staffing. In addition, selling, general and administrative expenses decreased due to the optimization of various costs, including labor costs, leading to improved profitabili ty. In Taiwan, Placement/Recruiting services grew against the backdrop of a continued strong semiconductor market. In India, business expanded primarily in Placement/Recruiting services due to an increase in projects driven by expansion into the market by Japanese companies, while in Singapore, business expanded primarily in recruitment services as a result of a review of the sales structure. As a result, both net sales and gross profit for the segment increased, and operating profit also rose due to measures such as the promotion of appropriate cost management. Life Solutions (Childcare support, Life support, etc.) Net sales ¥2,579 million Operating profit ¥115 million In the Childcare support business, while the number of after-school clubs operated primarily in Tokyo increased, the number of childcare facilities, particularly corporate -based childcare centers, decreased. However, the number of children enrolled rose, p artly due to higher utilization rates. Furthermore, an increase in contract fees aimed at improving staff compensation contributed to higher net sales and improved operating profit. In the Life support business, childcare support services continued to expand among private-sector companies and local governments in urban areas, leading to the launch of new contracted projects. Additionally, net sales increased due to extended service ho urs at existing clients. On the other hand, net sales in the nursing care business declined following the closure of four facilities that provided care services, such as day care. As a result, the segment as a whole reported increase in net sales and operating profits.
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―7― Regional Revitalization and Tourism Solutions Net sales ¥2,254 million Operating profit ¥(783) million “Nijigen no Mori” on Awaji Island in Hyogo Prefecture marked its 10th anniversary since opening in 2017. Driven by increased visitor numbers primarily to the permanent attractions “Dragon Quest Island” and “NARUTO & BORUTO SHINOBI -ZATO”, attraction usage a nd merchandise sales grew. As a result of continued optimizing staff allocation and these efforts, profitability continued to improve. Among the restaurant facilities on Awaji Island, net sales increased at “HELLO KITTY SMILE” and “Miele,” which was renovated last year. In addition, profitability improved at each location through rigorous cost management of ingredients and other supplies, which have been rising in price. On the other hand, operating profit declined due to the recognition of expenses including initial costs and depreciation expense associated with the opening in June of this year of “THE PASONA natureverse retreat,” a Long-Stay Wellness Retreat Facility. Eliminations and Corporate Net sales ¥(1,231) million Operating profit ¥(3,471) million During the first quarter, operating profit improved as a result of our efforts to control costs, including the appropriate allocation of personnel. We will continue to review our cost allocation in order to optimize corporate costs, as outlined in our medium-term vision.
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―8― (2) Overview of Financial Position for the Period under Review Status of Assets, Liabilities and Net Assets As of August 31, 2026, the amount of ¥10,840 million (¥8,802 million at the end of the previous fiscal year) of temporary “Deposits received” from customers related to contract projects, which is restricted in use by the Group, was recorded in liabilities, and “Cash and deposits” worth it was recorded in assets. Assets Total assets as of August 31, 2026 stood at ¥228,667 million, a decrease of ¥6,815 million or 2.9%, compared with May 31, 2026. This was mainly attributable to a decrease of ¥7,168 million “Cash and deposits” due to the acquisition of non -current assets and the payment of dividends and inc ome taxes, and a decrease of ¥5,000 million in “Securities” by the redemption. On the other hand, “Notes and accounts receivable-trade, and contract assets” increased by ¥2,402 million, and “Property, plant and equipment” for Regional Revitalization and Tourism Solutions segment increased by ¥2,863 million. Liabilities Total liabilities as of August 31, 2026 stood at ¥98,565 million, a decrease of ¥3,986 million or 3.9%, compared with May 31, 2026. This was mainly attributable to a decrease of ¥1,235 million in "Accrued expenses", a decrease of ¥1,615 million in "Income taxes payable", and a decrease of ¥921 million in "Provision for bonuses". Net Assets Net assets as of August 31, 2026 stood at ¥130,101 million, a decrease of ¥2,828 million or 2.1%, compared with May 31, 2026. This was mainly attributable to a decrease of ¥2,373 million in "Retained earnings" as Profit attributable to owners of the parent amounted to ¥496 million, while dividend payments totaled ¥2,870 million. As a result, equity ratio as of August 31, 2026 was 54.4% (53.9% at the end of the previous fiscal year). Total assets after deducting “Cash and deposits” associated with “Deposits received” related to contracted projects stood at ¥217,826 million (¥226,679 million at the end of the previous fiscal year), and equity ratio 57.1% (56.0% at the end of the previous fiscal year). (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information As we mark our 50th anniversary since our founding, we have positioned the five-year period starting with the fiscal year ending May 2026 as “PASONA GROUP VISION 2030,” our new growth strategy looking ahead to the next 50 years. Under this vision, we are pursuing reforms to our earnings structure and growth strategies for new businesses, striving for sustainable corporate growth and further enhancement of corporate value. There are no changes from the earnings forecast announced on July 15, 2026.
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―9― 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheets (Millions of yen) As of May 31, 2026 As of August 31, 2026 Assets Current assets Cash and deposits 76,779 69,611 Notes and accounts receivable - trade, and contract assets 37,471 39,874 Securities 16,000 11,000 Inventories 2,360 2,389 Other 6,679 6,424 Allowance for doubtful accounts (43) (41) Total current assets 139,248 129,259 Non-current assets Property, plant and equipment Buildings 21,138 40,845 Accumulated depreciation (8,940) (9,366) Buildings, net 12,198 31,479 Other 58,988 42,775 Accumulated depreciation (8,699) (8,903) Other, net 50,289 33,871 Total property, plant and equipment 62,487 65,351 Intangible assets Goodwill 1,292 1,788 Other 9,876 9,858 Total intangible assets 11,169 11,646 Investments and other assets Other 22,519 22,356 Allowance for doubtful accounts (15) (15) Total investments and other assets 22,503 22,341 Total non-current assets 96,160 99,339 Deferred assets 73 68 Total assets 235,482 228,667
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―10― (Millions of yen) As of May 31, 2026 As of August 31, 2026 Liabilities Current liabilities Accounts payable - trade 2,670 1,829 Short-term borrowings 5,739 5,565 Accrued expenses 17,996 16,761 Income taxes payable 2,166 551 Deposits received 11,921 12,646 Provision for bonuses 4,112 3,191 Provision for bonuses for directors (and other officers) 15 20 Asset retirement obligations 3 - Other 15,550 16,071 Total current liabilities 60,177 56,637 Non-current liabilities Bonds payable 1,570 1,570 Long-term borrowings 30,952 30,238 Provision for share awards for directors (and other officers) 253 253 Allowance for stock benefit for employee 277 273 Retirement benefit liability 2,333 2,306 Asset retirement obligations 2,962 2,962 Other 4,024 4,323 Total non-current liabilities 42,374 41,928 Total liabilities 102,552 98,565 Net assets Shareholders' equity Share capital 5,000 5,000 Capital surplus 16,046 16,048 Retained earnings 109,443 107,069 Treasury shares (4,842) (4,838) Total shareholders' equity 125,647 123,278 Accumulated other comprehensive income Valuation difference on available-for-sale securities (25) (59) Foreign currency translation adjustment 711 755 Remeasurements of defined benefit plans 556 417 Total accumulated other comprehensive income 1,241 1,112 Share acquisition rights 0 0 Non-controlling interests 6,041 5,709 Total net assets 132,929 130,101 Total liabilities and net assets 235,482 228,667
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―11― (2) Quarterly Consolidated Statements of Income For the Three-Month Period (Millions of yen) For the three months ended August 31, 2025 For the three months ended August 31, 2026 Net sales 76,965 79,327 Cost of sales 59,880 60,588 Gross profit 17,085 18,738 Selling, general and administrative expenses 17,653 18,645 Operating profit (loss) (568) 93 Non-operating income Interest income 105 104 Sponsorship money income 225 0 Subsidy income 11 15 Expo product sales income 260 - Other 154 96 Total non-operating income 757 216 Non-operating expenses Interest expenses 78 145 Share of loss of entities accounted for using equity method 13 24 Commitment fees 7 8 Expo cost of product sales 127 - Other 27 36 Total non-operating expenses 253 214 Ordinary profit (loss) (64) 94 Extraordinary income Gain on sale of non-current assets 0 7 Gain on sale of investment securities 4 61 Gain on sale of shares of subsidiaries and associates - 237 Gain on change in equity 2 1 Total extraordinary income 8 308 Extraordinary losses Loss on sale and retirement of non-current assets 12 16 Expo exhibit related expenses 520 - Total extraordinary losses 532 16 Profit (loss) before income taxes (588) 386 Income taxes - current 224 325 Income taxes - deferred (248) (679) Total income taxes (24) (353) Profit (loss) (563) 740 Profit attributable to non-controlling interests 43 243 Profit (loss) attributable to owners of parent (606) 496
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―12― (3) Quarterly Consolidated Statements of Comprehensive Income For the Three-Month Period (Millions of yen) For the three months ended August 31, 2025 For the three months ended August 31, 2026 Profit (loss) (563) 740 Other comprehensive income Valuation difference on available-for-sale securities 4 (47) Foreign currency translation adjustment (20) 45 Remeasurements of defined benefit plans, net of tax (34) (140) Share of other comprehensive income of entities accounted for using equity method 0 (0) Total other comprehensive income (50) (142) Comprehensive income (613) 597 Comprehensive income attributable to Comprehensive income attributable to owners of parent (661) 367 Comprehensive income attributable to non-controlling interests 47 230
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―13― (4) Notes to Going Concern Assumption None (5) Notes on Significant Changes in the Shareholders’ Equity None (6) Segment Information i) Three months ended August 31, 2025 Information regarding net sales, segment profit (loss) by reporting segment and revenue decomposition (Millions of yen) Reporting segments Total Adjustment (Note 1) Figures in consolidated statements of income (Note 2) HR Solutions Global Solutions Life Solutions Regional Revitalization and Tourism Solutions BPO Solutions, Expert Solutions Career Solutions Net sales BPO Solutions 32,447 － － － － 32,447 － 32,447 Expert Solutions 34,557 － － － － 34,557 － 34,557 Career Solutions － 3,335 － － － 3,335 － 3,335 Global Solutions － － 2,710 － － 2,710 － 2,710 Life Solutions － － － 2,102 － 2,102 － 2,102 Regional Revitalization and Tourism Solutions － － － － 1,810 1,810 － 1,810 Revenue from contract with customers 67,005 3,335 2,710 2,102 1,810 76,965 － 76,965 Other revenue － － － － － － － － Sales to outside customers 67,005 3,335 2,710 2,102 1,810 76,965 － 76,965 Intersegment sales and transfers 745 9 66 127 274 1,223 (1,223) － Total 67,751 3,345 2,777 2,229 2,085 78,189 (1,223) 76,965 Operating profit (loss) 2,567 864 26 18 (336) 3,140 (3,709) (568) Notes: 1. Adjustments of ¥(3,709) million with Operating profit (loss) includes corporate expenses of ¥(3,624) million which primarily consist of Group management costs relating to the Company and incubation cost for our new business and the elimination of intersegment transactions of ¥(84) million. 2. Operating profit (loss) is adjusted with operating loss under consolidated statements of income.
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―14― ii) Three months ended August 31, 2026 Information regarding net sales, segment profit (loss) by reporting segment and revenue decomposition (Millions of yen) Reporting segments Total Adjustment (Note 1) Figures in consolidated statements of income (Note 2) HR Solutions Global Solutions Life Solutions Regional Revitalization and Tourism Solutions BPO Solutions, Expert Solutions Career Solutions Net sales BPO Solutions 32,083 － － － － 32,083 － 32,083 Expert Solutions 36,400 － － － － 36,400 － 36,400 Career Solutions － 3,296 － － － 3,296 － 3,296 Global Solutions － － 3,056 － － 3,056 － 3,056 Life Solutions － － － 2,441 － 2,441 － 2,441 Regional Revitalization and Tourism Solutions － － － － 2,047 2,047 － 2,047 Revenue from contract with customers 68,484 3,296 3,056 2,441 2,047 79,327 － 79,327 Other revenue － － － － － － － － Sales to outside customers 68,484 3,296 3,056 2,441 2,047 79,327 － 79,327 Intersegment sales and transfers 841 2 42 137 206 1,231 (1,231) － Total 69,325 3,299 3,099 2,579 2,254 80,559 (1,231) 79,327 Operating profit (loss) 3,355 734 142 115 (783) 3,564 (3,471) 93 Notes: 1. Adjustments of ¥(3,471) million with Operating profit (loss) includes corporate expenses of ¥(3,457) million which primarily consist of Group management costs relating to the Company and incubation cost for our new business and the elimination of intersegment transactions of ¥(14) million. 2. Operating profit (loss) is adjusted with operating loss under consolidated statements of income. (7) Notes to Statements of Cash Flows Quarterly consolidated statements of cash flows have not been prepared for three months ended August 31, 2026. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the first quarter of the consolidated fiscal year under review are as follows. (Millions of yen) For the three months ended August 31, 2025 For the three months ended August 31, 2026 Depreciation 673 1,115 Amortization of goodwill 60 75 (8) Important Subsequent Events None
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―15― 3. Other (Investigation by the Japan Fair Trade Commission) Our subsidiary, Pasona Inc., is currently subject to an investigation by the Japan Fair Trade Commission regarding the pricing structure for its temporary staffing services. The Company is in earnest cooperation with this investigation.