Interim report
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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. November 14, 2025 CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll RRRRReeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee SSSSSiiiiixxxxx MMMMMooooonnnnnttttthhhhhsssss EEEEEnnnnndddddeeeeeddddd SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222255555 (((((UUUUUnnnnndddddeeeeerrrrr JJJJJaaaaapppppaaaaannnnneeeeessssseeeee GGGGGAAAAAAAAAAPPPPP))))) Company name: Quest Co., Ltd. Listing: Tokyo Stock Exchange Securities code: 2332 URL: https://www.quest.co.jp/ Representative: Satoshi Kamata Representative Director, President and Chief Executive Officer Inquiries: Yutaka Koizumi Director, Senior Executive Officer Telephone: +81-50-3785-3965 Scheduled date to file semi-annual securities report: November 14, 2025 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for Analyst) (Yen amounts are rounded down to millions, unless otherwise noted.) 11111..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee sssssiiiiixxxxx mmmmmooooonnnnnttttthhhhhsssss eeeeennnnndddddeeeeeddddd SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222255555 (((((fffffrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 11111,,,,, 22222000002222255555 tttttooooo SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222255555))))) (((((11111))))) CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd ooooopppppeeeeerrrrraaaaatttttiiiiinnnnnggggg rrrrreeeeesssssuuuuullllltttttsssss (((((cccccuuuuummmmmuuuuulllllaaaaatttttiiiiivvvvveeeee))))) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 8,785 21.4 486 (2.1) 511 (4.5) 335 (5.8) September 30, 2024 7,234 3.3 496 9.6 535 9.8 356 9.2 Note: Comprehensive income For the six months ended September 30, 2025: ¥ 329 million [ 28.4%] For the six months ended September 30, 2024: ¥ 256 million [ (26.3) %] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 62.60 - September 30, 2024 66.54 - EBITDA: For the six months ended September 30, 2025: ¥ 611 million For the six months ended September 30, 2024: ¥ 616 million EBITDA margin: For the six months ended September 30, 2025: 7.0% For the six months ended September 30, 2024: 8.5% Please refer to "1.Summary of Business Results, (1) Summary of Business Results for the Six Months Ended September 30,2025 of the Consolidated Fiscal Year Ending March 31,2026 "for above formula. (((((22222))))) CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll pppppooooosssssiiiiitttttiiiiiooooonnnnn Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen September 30, 2025 10,140 7,308 72.1 1,358.15 March 31, 2025 9,818 7,253 73.9 1,354.61 Reference: Equity As of September 30, 2025: ¥ 7,308 million As of March 31, 2025: ¥ 7,253 million
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22222..... CCCCCaaaaassssshhhhh dddddiiiiivvvvviiiiidddddeeeeennnnndddddsssss 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 - 0.00 - 58.00 58.00March 31, 2025 Fiscal year ending - 0.00March 31, 2026 Fiscal year ending March 31, 2026 (Forecast) - 55.00 55.00 Note: Revisions to the forecast of cash dividends most recently announced: None Note: Breakdown of the year-end dividend for the fiscal year ending March 31, 2025 : Ordinary dividend 53.00 yen Memorial dividend 5.00 yen (60th anniversary dividend) 33333..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuulllllttttt fffffooooorrrrreeeeecccccaaaaassssstttttsssss fffffooooorrrrr ttttthhhhheeeee fffffiiiiissssscccccaaaaalllll yyyyyeeeeeaaaaarrrrr eeeeennnnndddddiiiiinnnnnggggg MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222266666 (((((fffffrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 11111,,,,, 22222000002222255555 tttttooooo MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222266666))))) (Percentages indicate year-on-year changes.) 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 16,860 12.9 1,180 11.8 1,240 11.5 845 10.1 157.32 Note: Revisions to the financial result forecast most recently announced: None ***** NNNNNooooottttteeeeesssss (1) Significant changes in the scope of consolidation during the period: None Newly included: - companies( ) Excluded: - companies( ) (2) Adoption of accounting treatment specific to the preparation of Semi-annual 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 September 30, 2025 5,487,768 shares As of March 31, 2025 5,487,768 shares (ii) Number of treasury shares at the end of the period As of September 30, 2025 106,741 shares As of March 31, 2025 133,102 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 5,362,403 shares Six months ended September 30, 2024 5,356,547 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters -The financial forecasts contained in this document are based on the information currently available and certain assumptions deemed reasonable, and are not intended as a promise that they will be achieved. and actual results may differ significantly due to various factors. *Supplementary on semi-annual financial results -The semi-annual financial results meeting for the analyst is scheduled on November 28, 2025. The meeting material will be available on our website and TDnet immediately after the meeting.
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1 〇 Contents of Attachment 1. Summary of Business Results ………………………………………………………………………………… 2 (1) Summary of Business Results for the Six Months Ended September 30, 2025 of the Consolidated Fiscal Year Ending March 31,2026 ............................. 2 (2) Summary of Financial Position for the Six months Ended September 30, 2025 of the Consolidated Fiscal Year Ending March 31,2026 ............................. 4 (3) Explanation of consolidated financial forecasts and other forward-looking information......................... 5 2. Semi-annual Consolidated Financial Statements and Primary Notes......................................................... 6 (1) Semi-annual Consolidated Balance Sheet................................................................................................ 6 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income...................................... 8 Semi-annual Consolidated Statement of Income........................................................................................ 8 Semi-annual Consolidated Statement of Comprehensive Income.............................................................. 9 (3) Semi-annual Consolidated Statements of Cash Flows............................................................................. 10 (4) Primary Notes to Semi-annual Consolidated Financial Statements................................. 12 (Notes on Going Concern Assumption) ............................................................................................. 12 (Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ................................... 12 (Notes to Segment Information and others) ............................................................................................ 12 (Business combination) ............................................................................................................................. 12 (Additional Information) .......................................................................................................................... 14 (Significant Subsequent events) ............................................................................................................... 14
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2 1.Summary of Business Results (1) Summary of Business Results for the Six Months Ended September 30,2025 of the Consolidated Fiscal Year Ending March 31, 2026 During the Six Months Ended September 30,2025 of the current consolidated fiscal year, the Japanese economy is continuing to recovery gradually thanks to an improvement in the employment and income environment based on improved corporate earnings and wage increases. On the other hand, the outlook remains uncertain due to factors such as a downturn in consumer sentiment caused by persistent inflation, fluctuations in financial and capital markets, and the impact of U.S. tariff policies. In the information services industry, to which our group belongs, companies continue to be high level of IT-related investments aimed at improving corporate productivity and strengthening competitiveness. In addition to overhauling existing systems, migrating to the cloud, and leveraging advanced technologies like generative AI, the importance of security measures—such as countering malware infections and attacks exploiting software vulnerabilities—has also grown significantly. In this business environment, we are carrying out the activities to strengthen its foundation and steady growth based on the following basic policies set forth in the “Medium-term management plan for fiscal years 2024 –2026”, as the second phase of the medium- to long-term vision “Quest Vision 2030” (*1).Furthermore, under the leadership of the new president, we are advancing the activities of the task force to accelerate the achievement of our goals. ■ Transformation of Business Portfolio ・ We are aiming to improve profitability through deepening our existing customer- oriented business (core services) which is one of our strengths, and expanding our solution services. ・ We have set a clear goal of increasing the sales ratio of solution services to 30% by fiscal year 2030, and will focus on four areas where we can leverage our strength of deep business understanding: engineering solutions, supply chain solutions, data engineering solutions, and cloud-based managed services. ・ Considering the supply and demand trends of customer industries and their future growth potential, we have categorized our customers into three domains (*2) and are promoting the appropriate allocation of resources in our daily business and the planned shift of resources toward domains of technology that need to be strengthened. ■ Investment in Employees and Technology for the Future ・ We are expanding human capital investment and continuing to invest in the acquisition of new technologies to strengthen our “Solution Services”. ・ We are strengthening human resource development, technological development, and business design aimed at establishing solution services that bring high added value. ■ Strengthening Business Structure and Management Bases ・ We are building a solid business foundation that supports the realization of sustainable growth and increased corporate value. ・ Through projects aimed at promoting high resource liquidity and data-driven management, we are working to change mindsets and improve execution capabilities.
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3 ・ In April 2025, we acquired c a wholly owned subsidiary and are steadily promoting PMI (Post Merger Integration) centered on business improvement and strengthening of corporate structure to create synergies. As a result of the above, the business results of our group for the Six Months Ended September 30,2025 of the current consolidated fiscal year are as follows. Net sales increased by 21.4% to 8,785 million yen, compared to the same period of the previous consolidated fiscal year. This is due to an increase in new orders from key customers in the semiconductor sector(memory)of priority strengthening domains, and customers in the financial sector of stable growth domains, as well as the contribution of Sept Inc., which newly joined a consolidated subsidiary. Operating profit amounted 486 million yen, decreased by 2.1%, ordinary profit amounted 511 million yen, decreased by 4.5% and net profit attributable to owners of parent amounted 335 million yen, decreased by 5.8%, compared to the same period of the previous consolidated fiscal year respectively. We have further expanded our investment in human capital, including ongoing efforts to improve employee compensation and training, while also establishing new offices and expanding existing ones to strengthen our sales capabilities and expand our business. Additionally, during the current period, expenses related to activities commemorating the 60th anniversary of our company's founding, along with temporary costs associated with the management transition and strengthening of internal controls following the acquisition of Sept Inc. as a subsidiary, resulted in a decline compared to the same period last year. The costs associated with these measures, including temporary costs, have been incorporated into the current fiscal year's plan and will not affect the full-year earnings forecast. For reference, EBITDA (*3) and EBITDA margin (*4) for the Six Months Ended September 30,2025 of the consolidated fiscal year were 611 million yen and 7.0%, respectively. As a reference, EBITDA and EBITDA margin for the same period of the previous consolidated fiscal year were 616 million yen and 8.5%, respectively. Starting from the Three Months Ended June 30,2025 of the current consolidated fiscal year, the Group has changed its reporting segment to a single segment, “Information Services Business”. Details are as described in "(4) Primary Notes to Semi-annual Consolidated Financial Statements (Notes to Segment Information and others) ". (Notes)*1. Quest Vision2030:Please refer to our website. https://www.quest.co.jp/corporate/ir-info/quest-vision-2030.html *2. priority strengthening domains: semiconductor sector, manufacturing sector stable growth domains: financial sector, information & communication sector, entertainment sector social issues solver domains: public & social sector, mobility & logistics sector, healthcare & medical sector *3. EBITDA: Net profit before income taxes + Interest expense+ Depreciation and amortization + Amortization of Customer-related assets + Amortization of goodwill *4. EBITDA margin: EBITDA divided by net sales.
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4 (2) Summary of Financial Position for the Six Months Ended September 30,2025 of the Consolidated Fiscal Year Ending March 31,2026 1）Summary of Assets, Liabilities and Net Assets <Assets> Total assets at the end of the Six Months Ended September 30,2025 of this consolidated fiscal year, increased 321 million yen from the end of the previous consolidated fiscal year to 10,140 million yen. This was due to an increase of 510 million yen in Notes and accounts receivable - trade, and contract assets and 315 million yen in Goodwill, while a decrease of 518 million yen in Cash and deposits. <Liabilities> Total liabilities at the end of the Six Months Ended September 30,2025 of this consolidated fiscal year, increased 266 million yen from the end of the previous consolidated fiscal year to 2,832 million yen. This was due to an increase of 199 million yen in Accounts payable-trade and 40 million yen in Non-current liabilities-Other, while a decrease of 80 million yen in Provision for bonuses. <Net Assets> Net assets at the end of the Six Months Ended September 30,2025 of this consolidated fiscal year, increased 54 million yen from the end of the previous consolidated fiscal year to 7,308 million yen. This was mainly due to an increase of 25 million yen in Retained earnings and 17 million yen in Capital surplus. Retained earnings increased by 25 million yen due to an increase of 335 million yen in Profit attributable to owners of parent and a decrease of 310 million yen by dividend payment. 2）Summary of Cash Flows Cash and cash equivalents (hereinafter referred to as "funds") at the end of the Six Months Ended September 30,2025 of this consolidated fiscal year amounted to 2,813 million yen, a decrease of 936 million yen compared to the end of the previous consolidated fiscal year. Cash flows and factors affecting cash flows at the end of the Six Months Ended September 30,2025 of this consolidated fiscal year are as follows. <Cash Flows from Operating Activities> Operating activities resulted in a net cash outflow of 94 million yen. This was mainly due to Profit before income taxes of 511 million yen, a decrease in funds due to Increase in accounts receivable - trade, and contract assets of 313 million yen and a decrease in funds due to Income taxes paid of 124 million yen and a decrease in Provision for bonuses of 114 million yen. <Cash Flows from Investing Activities> Investing activities resulted in a net cash outflow of 307 million yen. This was mainly due to Purchase of shares of subsidiaries of 370 million yen and Proceeds from sales of investment securities of 25 million yen. <Cash Flows from Financing Activities> Financing activities resulted in a net outflow of 533 million yen. This was mainly due to Dividends paid of 309 million yen and repayments of long-term borrowings previously recorded at Sept. Inc., which became a consolidated subsidiary, of 222 million yen.
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5 (3) Explanation of consolidated financial forecasts and other forward-looking information No revisions have been made to the consolidated earnings forecast announced on May 14,2025.
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6 2.Semi-annual Consolidated Financial Statements and Primary Notes (1)Semi-annual Consolidated Balance Sheet (Thousands of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 3,331,256 2,813,003 Notes and accounts receivable - trade, and contract assets 3,445,277 3,956,165 Money held in trust 200,000 - Work in process 3,853 26,453 Other 141,681 200,057 Total current assets 7,122,068 6,995,679 Non-current assets Property, plant and equipment 204,376 263,318 Intangible assets Customer-related assets 420,973 399,924 Goodwill 152,958 468,842 Other 12,032 11,210 Total intangible assets 585,964 879,978 Investments and other assets Investment securities 808,502 760,840 Other 1,097,809 1,240,631 Total investments and other assets 1,906,311 2,001,471 Total non-current assets 2,696,652 3,144,768 Total assets 9,818,720 10,140,448
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7 (Thousands of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Accounts payable - trade 499,418 699,012 Income taxes payable 164,690 185,743 Contract liabilities 33,721 56,063 Provision for bonuses 801,963 721,287 Provision for loss on projects - 1,818 Other 651,975 691,046 Total current liabilities 2,151,769 2,354,971 Non-current liabilities Provision for retirement benefits for directors (and other officers) - 16,078 Retirement benefit liability 239,654 242,596 Asset retirement obligations 10,701 15,398 Other 163,135 203,144 Total non-current liabilities 413,490 477,218 Total liabilities 2,565,260 2,832,190 Net assets Shareholders' equity Share capital 491,031 491,031 Capital surplus 611,349 629,253 Retained earnings 5,889,105 5,914,195 Treasury shares (90,024) (72,193) Total shareholders' equity 6,901,461 6,962,285 Accumulated other comprehensive income Valuation difference on available-for-sale securities 271,652 266,684 Remeasurements of defined benefit plans 80,345 79,288 Total accumulated other comprehensive income 351,998 345,972 Total net assets 7,253,460 7,308,258 Total liabilities and net assets 9,818,720 10,140,448
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8 (2)Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statement of Income (Thousands of yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Net sales 7,234,892 8,785,173 Cost of sales 5,876,708 7,283,732 Gross profit 1,358,183 1,501,440 Selling, general and administrative expenses Salaries and bonuses 236,265 284,016 Provision for bonuses 68,130 70,101 Provision for bonuses for directors (and other officers) 4,964 - Retirement benefit expenses 6,697 8,562 Provision for retirement benefits for directors (and other officers) 3,395 (1,943) Other 541,772 654,082 Total selling, general and administrative expenses 861,226 1,014,818 Operating profit 496,957 486,621 Non-operating income Interest income 292 2,751 Dividend income 9,954 16,000 Gain on sale of investment securities - 1,175 Gain on investments in investment partnerships 16,875 14 Subsidy income 7,097 6,860 Other 4,403 1,458 Total non-operating income 38,623 28,261 Non-operating expenses Interest expenses 449 1,793 Loss on cancellation of insurance policies - 1,756 Loss on sale of investment securities - 12 Other 0 165 Total non-operating expenses 449 3,727 Ordinary profit 535,131 511,154 Profit before income taxes 535,131 511,154 Income taxes - current 119,265 134,058 Income taxes - deferred 59,433 41,436 Total income taxes 178,699 175,494 Profit 356,432 335,659 Profit attributable to owners of parent 356,432 335,659
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9 Semi-annual Consolidated Statement of Comprehensive Income (Thousands of yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Profit 356,432 335,659 Other comprehensive income Valuation difference on available-for-sale securities (100,514) (4,911) Remeasurements of defined benefit plans, net of tax 889 (1,057) Total other comprehensive income (99,625) (5,968) Comprehensive income 256,806 329,691 Comprehensive income attributable to Comprehensive income attributable to owners of parent 256,806 329,691
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10 (3)Semi-annual Consolidated Statement of Cash Flows (Thousands of yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 535,131 511,154 Depreciation 21,152 21,015 Amortization of customer-related assets 21,048 21,048 Amortization of goodwill 38,239 56,877 Share-based payment expenses 3,960 4,422 Increase (decrease) in provision for bonuses (109,741) (114,712) Increase (decrease) in provision for bonuses for directors (and other officers) 4,964 - Increase (decrease) in provision for loss on project contracts (1,412) 1,818 Increase (decrease) in provision for retirement benefits for directors (and other officers) 3,395 (81,943) Interest and dividend income (10,246) (18,752) Loss (gain) on investments in investment partnerships (16,875) (14) Loss (gain) on sale of investment securities - (1,162) Loss (gain) on sale of non-current assets - (635) Interest expenses 449 1,793 Loss (gain) on cancellation of insurance policies - 1,756 Decrease (increase) in accounts receivable - trade, and contract assets 180,973 (313,181) Decrease (increase) in inventories 86 (22,600) Decrease (increase) in retirement benefit asset (87,082) (46,746) Increase (decrease) in trade payables 7,679 36,512 Increase (decrease) in contract liabilities 858 22,342 Increase (decrease) in retirement benefit liability 6,364 1,435 Other, net (149,586) (79,505) Subtotal 449,360 924 Interest and dividends received 10,246 18,752 Interest paid (316) (1,536) Income taxes paid (166,808) (124,081) Income taxes refund - 11,133 Net cash provided by (used in) operating activities 292,481 (94,807) Cash flows from investing activities Purchase of property, plant and equipment - (2,890) Proceeds from sale of property, plant and equipment - 12,243 Proceeds from sale of investment securities - 25,237 Proceeds from withdrawal of investment securities 11,250 - Purchase of shares of subsidiaries resulting in change in scope of consolidation - (151,688) Proceeds from cancellation of insurance funds - 57,455 Payments of leasehold and guarantee deposits (7,444) (29,638) Proceeds from distributions from investment partnerships 6,280 14 Other, net - (312) Net cash provided by (used in) investing activities 10,085 (89,578) Cash flows from financing activities Repayments of long-term borrowings - (222,101) Repayments of lease liabilities (1,663) (2,268) Purchase of treasury shares (25) - Dividends paid (261,940) (309,496) Net cash provided by (used in) financing activities (263,629) (533,866)
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11 (Thousands of yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Effect of exchange rate change on cash and cash equivalents 1,365 0 Net increase (decrease) in cash and cash equivalents 40,303 (718,253) Cash and cash equivalents at beginning of period 3,114,570 3,531,256 Cash and cash equivalents at end of period 3,154,874 2,813,003
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12 (4) Primary Notes to Semi-annual Consolidated Financial Statements (Notes on Going Concern Assumption) No applicable matters. (Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) No applicable matters. (Notes to Segment Information and others) [Segment Information] Ⅰ Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) As states in “Ⅱ Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (Matters related to changes in reportable segments)” Ⅱ Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) As our group consists of a single segment, we have omitted the disclosure of segment information. (Matters related to changes in reportable segments) Our group previously reported two business segments: “System Development Business” and “Infrastructure Services Business”. However, effective from the current semi-annual consolidated fiscal period, the reporting structure has changed to a single segment, “Information Services Business.” On April 1, 2024, we underwent a major reorganization, establishing an Industry Business Group focused on our customers' industries and a Solution Services Business Group focused on IT technology. In line with organizational restructuring, we reviewed the appropriate classification of reporting segments from fiscal year 2024. As a result, considering the increase in cases where multiple services are offered and provided to the same customers, as well as the growing technical overlap between application development and infrastructure services, we determined that integrating the two into a single “information services business” would more accurately reflect the actual state of our group's operations. In response to these results, changes were made under the new management structure launched this fiscal year. Due to this change, segment information for the Six months ended September 30,2025 of the current consolidated fiscal year and the same period of the previous consolidated fiscal year has been omitted. (Business combination) Business combination by acquisition 1) Overview of transaction (i) Name and business of acquired company Name of acquired company: Sept Inc. Business description: Development and maintenance of user software for various business operations, Network engineering services, Temporary worker business (ii) Main reason for business combination Our group has formulated “Quest Vision 2030” as a growth strategy to achieve sustainable growth over the medium to long term. With a view to strengthening our foundation and achieving steady growth toward a leap forward in fiscal 2030, we are working on “transforming our business portfolio,” “investing in people and technology for the future,” and “strengthening our business structure and management foundation.” Sept Inc. is a company with approximately 80 employee engineers that provides services such as the development, construction, operation, and maintenance of business applications mainly to customers in the information and communications and financial industries and has steadily expanded the scale of its business. We believe that welcoming Sept Inc. to our group will strengthen our engineering resources and contribute to the realization of Quest Vision 2030. Our group will continue to refine the strengths of each group company and provide more advanced solutions for the issues in customers and more stable services, aiming to improve the value offered to the customers and strive to increase profitability for sustainable growth. Through further development and growth, we will enhance our corporate value.
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13 (iii) Date of business combination April 15, 2025 (Deemed acquisition date: April 1, 2025) (iv) Legal form of business combination Acquisition of shares in exchange for cash. (v) Name of acquired company after acquisition Name not changed. (vi) Ratio of voting rights acquired 100% (vii) Main basis for determining the Acquiring company The Company will acquire 100% of Sept Inc.’s voting rights through the acquisition of shares in exchange for cash. 2) Period of acquired company's business results included in the consolidated financial statement April 1,2025 to September 30,2025 3) Acquisition cost and breakdown by type of considerations Consideration paid in cash: 370,000 thousand yen Acquisition cost: 370,000 thousand yen 4) Breakdown and amount of main costs related to acquisition Expenses related to due diligence and others 34,211 thousand yen 5) Amount, reason for recognition, amortization method and period of goodwill (i) Goodwill recognized 372,761 thousand yen (ii) Reason of recognized This is the excess earning power expected from future business development. (iii) Amortization method and period of goodwill Goodwill is amortized evenly over 10 years using the straight-line method. 6) Amount and major breakdown of assets received and liabilities assumed on business combination date (Thousands of yen) Current assets 425,163 Non-current assets 162,708 Total assets 587,872 Current liabilities 443,204 Non-current liabilities 147,430 Total liabilities 590,634
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14 (Additional Information) (Change in Presentation) (Semi-annual Consolidated Statement of Income) In the previous consolidated fiscal period, “Subsidy income,” which was included under ‘Other’ within “Non-operating income,” exceeded 20% of total non-operating income. Therefore, it is presented separately starting from the current semi-annual consolidated fiscal period. To reflect this change in presentation, the Semi-annual consolidated financial statements for the previous semi-annual consolidated fiscal period have been reclassified. (Significant Subsequent events) (The acquisition of treasury shares) At the Board of Directors meeting held on September 29, 2025, the Company resolved the matters concerning treasury shares and acquired them on October 2, 2025. 1)Reason for the Acquisition of Treasury shares To mitigate the impact on the stock market from the sale of our shares following the dissolution of our capital alliance with Scala, Inc. and to enhance capital efficiency in response to future changes in the business and market environments, we acquire treasury shares. 2)Details Concerning the Acquisition of Treasury shares (i)Class of Shares to be acquired Common Share of the Company (ii) Total number of shares to be acquired 270,000 shares (upper limit) (iii)Total amount of share acquisition costs 403,380 thousand yen (upper limit) (iv)Period of acquisition September 30, 2025 (based on the trade date) (v)Method of acquisition Purchase via the Tokyo Stock Exchange's off-auction treasury share repurchase trading system (ToSTNeT-3) 3)Results of the Acquisition of Treasury shares As a result of the above purchase, the Company acquired 254,000 shares of its common share for 379,476 thousand yen on October 2, 2025, based on the delivery date. This concludes the acquisition of treasury shares based on the resolution.