Interim report
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WDB FASF Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] August 7 , 2026 Company name : Listing : Securities code : URL : Representative : Inquiries : Telephone : WDB Holdings Co. , Ltd. Tokyo Stock Exchange 2475 https://www.wdbhd.co.jp/eng/ Toshimitsu Nakano , President and CEO Miki Otsuka , Senior Managing Director 078-389-0111 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : None ( Amounts are rounded down to the nearest million yen ) [ Translation for Reference Purposes Only ] This document is a translation of the Japanese original for reference purpose only . In the event of any discrepancy between this translation and the Japanese original , the Japanese original shall prevail . 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( Cumulative ) ( Percentages represent year - on - year changes ) Net sales Operating income Ordinary income Three Months Ended Millions of yen % Millions of yen % Millions of yen % Net income attributable to owners of the parent Millions of yen June 30 , 2026 12,803 -1.3 1,181 -10.6 1,190 -11.1 June 30 , 2025 12,973 0.6 1,320 0.0 1,338 0.7 % 684 -20.4 860 55.9 ( Note ) Comprehensive income For the three months ended June 30 , 2026 718Millions of yen ( -20.3 % ) For the three months ended June 30 , 2025 901 Millions of yen ( 36.4 % ) Three Months Ended June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated Financial Position Net income per share Diluted net income per share Yen Yen 35.71 43.83 Total assets Net assets Equity ratio As of June 30 , 2026 March 31 , 2026 Millions of yen 43,050 42,424 Millions of yen 34,231 34,306 % 76.1 77.3 ( Reference ) Shareholders ' equity As of June 30 , 2026 32,747Millions of yen As of March 31 , 2026 32,794Millions of yen 2. Dividends Fiscal Year Ended March 31 , 2026 Fiscal Year Ending March 31 , 2027 Annual dividends per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 37.50 62.50 25.00 Fiscal Year Ending March 31 , 2027 ( Forecast ) ( Note ) Revisions to the most recently announced dividend forecast : None 37.50 3. Consolidated Financial Forecast for the Fiscal Year Ending March 31 , 2027 ( April 1 , 2026 to March 31 , 2027 ) Full year 56.50 94.00 ( Percentages represent year - on - year changes ) Net income attributable Net sales Operating income Ordinary income Net income per share to owners of the parent Millions of yen 51,439 % 2.3 Millions of yen 4,639 % Millions of yen % 3.9 4,663 1.4 Millions of yen 2,772 % 0.6 Yen 144.50 ( Note ) Revisions to the most recently announced financial forecast : None - 1 -
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- 2 - * Notes (1) Significant changes in the scope of consolidation during the quarter: No ne New: - (Company name:-), Excluded: - (Company name:-) (2) Application of special accounting methods for preparing quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatements (i) Changes in accounting policies due to revision of accounting standards: None (ii) Changes in accounting policies other than the above: None (iii) Changes in accounting estimates: None (iv) Restatement of revisions: None (4) Number of shares outstanding (common shares) (i) Number of shares outstanding at the end of the period (including treasury stock) As of June 30, 2026 20,060,000 Shares As of March 31, 2026 20,060,000 Shares (ii) Number of treasury stock at the end of the period As of June 30, 2026 877,034 Shares As of March 31, 2026 877,034 Shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three Months Ended June 30, 2026 19,182,966 Shares Three Months Ended June 30, 2025 19,638,966 Shares ※ Review of the Japanese-language originals of the attached consolidated quarterly financial statements by a certified public accountant or audit firm : None ※ Explanations and other special notes concerning the appropriate use of business performance forecasts ・Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to the Company 's management at the time the materials were prepared. Actual results may differ significantly from these forecasts for a number o f reasons. Please refer to "Overview of Operating Results" of the attached material for the assumptions upon which the forecasts are based and the cautionary statements regarding the use of the forecasts.
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- 3 - 1. Overview of Operating Results (1) Overview of Operating Results for the Three Months Ended June 30, 2026 WDB Group is a corporate group engaged in the human resources services business centered on staffing in the field of sc ience (chemistry and biotechnology), and CRO business (contract services for pharmaceutical development). Regarding the business environment and the status of the human resources services business during the first quarter of the co nsolidated cumulative period under review (April 2026 to June 2026), the average of the ratio of active job offers to applicants (seasonally adjusted) was 1. 18 times (down 0.06 points year on year), and the average of the unemployment rate (seasonally adjusted) was 2.5% (2.5% in the same period of the previous year). Demand for our group's staffing services has remained firm, reflecting the severe labor shortage, and has been largely unaffected by global events including the situa tions in the Middle East and Ukraine. However, securing job seekers to meet demand continues to be a major challenge, as it was last year. To address this challenge, our group has continued to improve the treatment of temporary staff since April 2022. In addition, we have further advanced the strengthening of our sales structure, recruitment structure, and follow -up system for temporary staff during employment that we worked on last fiscal year, and are working to increase the number of orders received and reduce the turnover rate. In the area of perman ent-type temporary staffing, we are working to strengthen our recruitment capabilities by continuing to conduct regionally limited new graduate recruitment as we did last year, as well as engaging in recruitment activities utilizing social media. Furthermore, we have continued sales activities for "DOCO1," the integrated management platform for staffing services that we launched l ast fiscal year, and the number of implementations has been increasing steadily. In the domestic CRO business, we conducted sales activities aimed at increasing orders while advancing various initiatives to improve the quality of contracted services. In addition, Oy Medfiles Ltd. in Finland promoted the digitalization of services utilizing internally developed too ls. As a result of the above activities, net sales for the three months ended June 30, 2026 amounted to ¥12,803 million (down 1.3% year on year). Operating income was ¥1,181 million (down 10.6% year on year), ordinary income was ¥1,190 million (down 11.1% year on year), and net income attributable to owners of the parent was ¥684 million (down 20.4% year on year). In addition, the ratio of operating income to net sales was 9.2% (10.2% in the same pe riod of the previous year), and the ratio of ordinary income to net sales w as 9.3% (10.3% in the same period of the previous year). The main factors for the decrease in revenue and profit were the decline in net sales due to the reduction in contracted volume in the domestic CRO business that occurred las t fiscal year, the recording of depreciation expenses (selling, general and administrative expenses) for the head office building relocated in October 2025, and the recording of loss on disposal of non-current assets (extraordinary loss) resulting from the demolition of the training facility. Operating results by segment are as follows. ※ Segment income is before elimination of inter-segment transactions. (i) Human Resources Services Business In this segment, net sales were ¥11,193 million (up 0.8% year on year), segment income was ¥1,190 million (up 0.5% year on year), and the ratio of segment income to net sales was 10.6% (10.7% in the same period of the previous year). While the number of temporary st affs remained flat, net sales increased slightly due to improvements in staffing fees. As the compensation for temporary staff also improved along with the improvement in staffing fees, there was no change in the profit margin. (ii) CRO Business In this segment, net sales were ¥1,609 million (down 13.8% year on year), segment income was ¥221 million (down 15.6% year on year), and the ratio of segment income to net sales was 13.8% (14.0% in the same period of the previous year). Revenue and profit decreased due to the impact of the reduction in contracted volume in Japan that occurred last fiscal year and the sale of unprofitable overseas businesses conducted last fiscal year. (2) Overview of Financial Position for the Three Months Ended June 30, 2026 As of June 30,2026, total assets were ¥43,050 million (up of ¥625 million from March 31, 2026). Liabilities were ¥8,819 million (up of ¥700 million from March 31, 2026). Net assets were ¥34,231 million (down of ¥74 million from March 31, 2026). (3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements There are no changes to the consolidated financial forecasts and dividends for the fiscal year ending March 31, 2027 from those announced on May 14, 2026. Performance for the first quarter of the consolidated fiscal year under review progressed as planned.
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- 4 - 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheet (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 17,426,313 18,633,150 Accounts receivable and contract assets 6,349,894 6,700,967 Inventories 2,024 5,775 Other 1,122,572 416,583 Allowance for doubtful accounts -130 -149 Total current assets 24,900,673 25,756,327 Non-current assets Property, plant and equipment Buildings and structures, net 8,010,599 7,939,719 Land 6,739,821 6,739,821 Other, net 394,118 373,121 Total property, plant and equipment 15,144,539 15,052,662 Intangible assets Other 86,022 75,433 Total intangible assets 86,022 75,433 Investments and other assets Investment securities 294,557 294,010 Leasehold and guarantee deposits 866,736 817,106 Deferred tax assets 798,526 719,604 Other 333,636 335,442 Total investments and other assets 2,293,456 2,166,164 Total non-current assets 17,524,017 17,294,260 Total assets 42,424,691 43,050,588 Liabilities Current liabilities Accounts payable 2,382,823 2,951,864 Accounts payable-other 404,193 487,648 Income taxes payable 765,632 371,193 Consumption taxes payable 737,843 1,166,616 Provision for bonuses 850,413 733,989 Other 1,475,438 1,678,559 Total current liabilities 6,616,345 7,389,872 Non-current liabilities Provision for directors' retirement benefits 582,461 559,401 Retirement benefit liability 362,111 364,561 Asset retirement obligations 238,251 242,391 Other 319,482 263,279 Total non-current liabilities 1,502,306 1,429,634 Total liabilities 8,118,651 8,819,506
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- 5 - (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders' equity Common stock 1,000,000 1,000,000 Capital surplus 709,077 709,077 Retained earnings 32,652,585 32,618,213 Treasury stock -2,003,301 -2,003,301 Total shareholders' equity 32,358,361 32,323,989 Other accumulated comprehensive income Valuation difference on available-for-sale securities 49,888 49,118 Foreign currency translation adjustments 297,992 295,383 Remeasurements of defined benefit plans 87,859 78,941 Total other accumulated comprehensive income 435,740 423,443 Non-controlling interests 1,511,937 1,483,648 Total net assets 34,306,039 34,231,082 Total liabilities and net assets 42,424,691 43,050,588
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- 6 - (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income (Quarterly Consolidated Statement of Income) (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 12,973,908 12,803,518 Cost of sales 9,940,696 9,804,627 Gross profit 3,033,212 2,998,891 Selling, general and administrative expenses 1,712,547 1,817,780 Operating income 1,320,664 1,181,110 Non-operating income Interest and dividend income 2,468 5,566 Subsidy income 10,912 - Other 5,185 6,277 Total non-operating income 18,566 11,844 Non-operating expenses Other 320 2,006 Total non-operating expenses 320 2,006 Ordinary income 1,338,910 1,190,948 Extraordinary income Gain on sale of non-current assets 5 - Gain on sales of business 22,252 - Total extraordinary income 22,257 - Extraordinary losses Loss on retirement of non-current assets - 95,241 Total extraordinary losses - 95,241 Income before income taxes 1,361,168 1,095,706 Income taxes 322,535 341,016 Income taxes - deferred 124,609 24,157 Total income taxes 447,145 365,173 Net income 914,022 730,533 Net income attributable to non-controlling interests 53,279 45,543 Net income attributable to owners of parent 860,742 684,989
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- 7 - (Quarterly Consolidated Statement of Comprehensive Income) (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net income 914,022 730,533 Other comprehensive income Valuation difference on available-for-sale securities -884 -769 Foreign currency translation adjustments -15,574 -2,608 Adjustments for retirement benefits 3,847 -8,873 Total other comprehensive income -12,610 -12,252 Comprehensive income 901,411 718,281 (Comprehensive income attributable to) Comprehensive income attributable to owners of parent 847,909 672,692 Comprehensive income attributable to non-controlling interests 53,501 45,588
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- 8 - (3) Notes to Quarterly Consolidated Financial Statements (Notes on Segment Information) I. For the three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) 1. Information on net sales and profits or losses by reportable segment (Thousands of yen) Reportable Segments Total Human resources services business CRO business Total Net sales Sales to customers 11,105,686 1,868,222 12,973,908 12,973,908 Intersegment sales 8,973 231 9,205 9,205 Total 11,114,660 1,868,453 12,983,113 12,983,113 Segment profit 1,184,926 262,355 1,447,281 1,447,281 2. Difference between total amount of income (loss) of reportable segments and the amount recorded in the quarterly consolidated statements of income, as well as main details of said difference (matters related to difference adjustments) (Thousands of yen) Profit Amount Reportable segments total 1,447,281 Corporate expenses (Note) -126,617 Operating income in the quarterly consolidated statements of income 1,320,664 (Note) Corporate expenses are mainly expenses related to the holding company that are not attributable to reportable segments . 3. Information on impairment loss on non-current assets or goodwill, etc. by reportable segment Not applicable. 4. Information that breaks down the revenue from contracts with customers (Thousands of yen) Revenue from contracts with customers Total Human resources services business Temporary staffing 10,838,481 11,105,686 Placement/Recruiting 267,204 CRO business Domestic companies 1,321,558 1,868,222 Overseas companies 546,663 Reportable segments total 12,973,908 Total 12,973,908
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- 9 - II. For the three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) 1. Information on net sales and profits or losses by reportable segment (Thousands of yen) Reportable segments Total Human resource services business CRO business Total Net sales Sales to customers 11,193,579 1,609,939 12,803,518 12,803,518 Intersegment sales 8,859 334 9,194 9,194 Total 11,202,438 1,610,274 12,812,713 12,812,713 Segment profit 1,190,778 221,448 1,412,227 1,412,227 2. Difference between total amount of income (loss) of reportable segments and the amount recorded in the quarterly consolidated statements of income, as well as the main details of said difference (matters related to difference adjustments) (Thousands of yen) Profit Amount Reportable segments total 1,412,227 Corporate expenses (Note) -231,116 Operating income in the quarterly consolidated statements of income 1,181,110 (Note) Corporate expenses are mainly expenses related to the holding company that are not attributable to reportable segments. 3. Information on impairment loss on non-current assets or goodwill, etc. by reportable segment Not applicable. 4. Information that breaks down the revenue generated by contracts with customers (Thousands of yen) Revenue from contracts with customers Total Human resources services business Temporary staffing 10,930,458 11,193,579 Placement/Recruiting 263,120 CRO business Domestic companies 1,216,145 1,609,939 Overseas companies 393,794 Reportable segments total 12,803,518 Total 12,803,518
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- 10 - (Notes on Significant Changes in the Amount of Shareholders' Equity) Not applicable. (Notes on the Going Concern Assumption) Not applicable. (Notes to Quarterly Consolidated Statements of Cash Flows) The quarterly consolidated statements of cash flows for the three months ended June 30, 2026 have not been prepared. Depreciation for the three months ended June 30, 2026 (including amortization of intangible assets) is as follows. (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation and amortization 61,394 144,816