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DISCLAIMER As this document has been machine translated from the Japanese original for reference purposes only , it may not be an exact translation . In the event of any discrepancy between translated document and the Japanese original , the Japanese original shall prevail . We assume no legal responsibility for any discrepancies or differences in interpretation caused by the translation . Financial Results Materials for the Three Months of the Fiscal Year Ending March 31 , 2027 daiwabo August 6 , 2026 Daiwabo Holdings Co. , Ltd. ( Securities Code : 3107 )
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Agenda 1 1. Financial Results for the 1Q of the Fiscal Year Ending March 31, 2027 _P 2 2. Full-Year Performance Forecast for the Fiscal Year Ending March 31, 2027 _P17 3. Shareholder Returns _P21 [Reference Materials] _P23 ➤ "Transaction Volume" of the IT Infrastructure Distribution Business ➤ Business Overview ➤ Performance Trends Graph ➤ Stock Price Trends © Daiwabo Holdings Co., Ltd.
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2© Daiwabo Holdings Co., Ltd. Consolidated Net Sales 313.1 billion yen YoY +7.8% Progress rate full-year base 26.3% Consolidated Financial Results Highlights 1Q of the Fiscal Year Ending March 31, 2027 (April 1, 2026 - June 30, 2026) Strong Sales Continued Despite an Uncertain Market Environment, Driven by Data Center and AI Projects. Sales Exceeded Plan, with Profit Expected to Improve from 2Q Onward, Putting Us on Track to Achieve Our Full-Year Target Consolidated Operating Income 7.7 billion yen YoY (22.0%) Progress rate full-year base 21.1% Operating Profit Margin 2.5% 1Q of the previous fiscal year 3.4% Record - high net sales in 1Q Second highest level in 1Q history Decrease from 1Q of the previous fiscal year
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Consolidated Financial Results Highlights 3© Daiwabo Holdings Co., Ltd. Summary of the 1Q of the Fiscal Year Ending March 31, 2027 ❏ Net sales grew beyond the plan, driven by strong sales performance. Operating income is expected to land as planned from 2Q onwards; the first half and full- year performance forecasts remains unchanged. ❏ Initiated the formulation of the next medium-term management plan toward "2030 VISION“; the Group’s medium- to long-term strategy The Group ❏ Secured multiple large-scale projects related to data center investment. Although profitability decreased compared to the same period of the previous year, it contributed to increased net sales ❏ Proceeding with strategic procurement in anticipation of future price increases to stabilize product supply and profits ❏ For the education sector, secured large-scale projects for high schools and school affairs, contributing to increased net sales. IT Infrastructure Distribution Business ❏ In addition to the mainstay aircraft industry, the shipbuilding and energy industries also remained strong, with orders for machine tool business increasing significantly ❏ Strengthening business structure by developing new functions and increasing service personnel in preparation for future demand growth Industrial Machinery Business
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Net Sales for 1Q of the Fiscal Year Ending March 31, 2027 4 209,337 227,844 290,601 313,148 236,580 289,538 366,228 229,353 291,418 344,400 292,488 328,016 349,648 1,350,879 2024/3 2025/3 2026/3 2027/3 1Q 2Q 3Q 4Q (Full year forecast) 1,189,000 (First half forecast) 567,050 © Daiwabo Holdings Co., Ltd. (million yen) Net sales 313.148 billion yen YoY Change +7.8% Progress rate : First half 55.2% Full year 26.3% Record - high net sales in 1Q 967,760 1,136,817
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4,929 4,274 9,876 7,701 7,845 9,248 12,558 6,139 8,490 10,300 12,049 12,886 11,434 30,963 36,500 2.4% 1.9% 3.4% 2.5% 2024/3 2025/3 2026/3 2027/3 1Q 2Q 3Q 4Q Operating profit margin (1Q) Operating Income for 1Q of the Fiscal Year Ending March 31, 2027 5 (First half forecast) 16,500 (Full year forecast) 36,500 © Daiwabo Holdings Co., Ltd. (million yen) Operating income 7.701 billion yen YoY change (22.0%) Operating profit margin 2.5% Progress rate: First half 46.7% Full year 21.1% Second highest in 1Q history 44,169 34,899
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Consolidated Operating Income Trends (1Q) © Daiwabo Holdings Co., Ltd. 6 (100 million yen) Gross profit the SG&A expense 98.7 2026/3 1Q Operating income 2027/3 1Q Operating income 77.0 +17.1 (31.3) (3.2) Estimated growth by sales increase (Net sales +22.5 billion yen) Impact of Gross profit margin decrease (7.6%→6.6%) Base pay increase (2.0) Salaries/Bonuses (1.0) Benefit expenses (0.9) Other +0.7 Advertising Expenses (2.5) Depreciation (2.0) Logistics costs (1.9) Office expansion cost, etc. +2.1 Gross profit margin decreased from the high level of 1Q in the previous year, resulting in a negative impact of 3.13 billion yen SG&A expenses increased by 750 million yen due to base pay increases and advertising expenses including rebranding projects From 2Q onwards, the proving effects of strategic procurement and market penetration of price increases are expected to progress, with gross profit margin expected to improve < Personnel expenses > < SG&A expenses > (Other than personnel expenses) (4.3)
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Consolidated Financial Results Overview for 1Q of the Fiscal Year Ending March 31, 2027 7 (million yen) 2026/3 2026/6 Change Main reasons for changes Total assets 462,072 476,946 +14,873 Increase in goods and products Net asset 169,829 169,761 (67) Acquisition of treasury shares Capital adequacy ratio 36.8% 35.6% (1.2%) (million yen) 2026/3 1Q 2027/3 1Q Change YoY Change First half plan Progress rate Net sales 290,601 313,148 +22,547 +7.8% 567,050 55.2% Operating income 9,876 7,701 (2,174) (22.0%) 16,500 46.7% Ordinary income 10,111 7,873 (2,237) (22.1%) 16,600 47.4% Profit attributable to owners of parent 7,195 5,795 (1,399) (19.5%) 11,400 50.8% Earnings per share (yen) 80.19 66.82 (13.37) (16.7%) © Daiwabo Holdings Co., Ltd.
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Business Results by Segment for 1Q of the Fiscal Year Ending March 31, 2027 8 (million yen) 2026/3 1Q 2027/3 1Q OPM Change YoY change Net sales IT Infrastructure Distribution 286,734 310,098 +23,364 +8.1% Industrial Machinery 3,866 3,050 (816) (21.1%) Total 290,601 313,148 +22,547 +7.8% Operating income IT Infrastructure Distribution 9,492 7,461 2.4% (2,030) (21.4%) Industrial Machinery 379 236 7.8% (143) (37.7%) (Adjustments and eliminations) 4 3 (1) (23.1%) Total 9,876 7,701 2.5% (2,174) (22.0%) © Daiwabo Holdings Co., Ltd. Net sales increased due to growth in sales of servers, networks, and software in the IT Infrastructure Distribution Business Operating income was below the previous year due to a decrease in gross profit margin from the high level of the same period last year in the IT Infrastructure Distribution Business, as well as decreased profits in the Industrial Machinery Business
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192,592 226,058 286,734 310,098 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q 4,529 4,358 9,492 7,461 2.4% 1.9% 3.3% 2.4% 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q ■ Net sales ■ Operating income ■Operating profit margin IT Infrastructure Distribution Business 9 (million yen) Transaction volume (Based on former accounting standard for revenue recognition) 333,888 million yen YoY +8.4% Net sales 310,098 million yen YoY +8.1% Operating income 7,461 million yen YoY (21.4%) PC shipments 1.093 million units YoY (9.0%) Number of servers shipped 8.52 thousand units YoY (32.2%) iKAZUCHI transaction volume 17,913 million yen YoY +35.2% Business Overview Corporate Market For corporates, despite a decline due to the pullback from the previous year's special demand for PC replacement, we secured large-scale projects related to data center investment, mainly for servers and networks For the education sector, deliveries of previous year's bids progressed in the GIGA School program, and securing projects for high schools and school affairs contributed to performance growth While profitability decreased compared to the same period of the previous year due to the impact of strategic acquisition of large-scale projects, net sales increased across all markets. Passing on higher procurement costs to sales prices is ongoing Consumer Market Both mass retailers and EC channels performed steadily, with net sales increasing compared to the same period of the previous year *Definition of "Transaction volume" is described on P.24 © Daiwabo Holdings Co., Ltd.
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Results by Product Category (1Q) 10 51,990 61,020 68,895 89,644 88,105 97,601 98,944 152,666 161,470 2025/3 1Q 2026/3 1Q 2027/3 1Q (1.7%) +17.4% 41% <Transaction Volume Trends by Category in DIS> *PCs: PCs, servers, tablets, smartphones, and other terminal devices Q1 FY2027 (YoY change in Transaction Amount) © Daiwabo Holdings Co., Ltd. PCs* Peripherals/ Services, etc. Software (million yen) +54.3% +5.8% +10.8% +12.9% 37% 22% 51% 49% 29% 20% 30% 21% % Comparison ratio PCs PC ・・・(4.1%) Servers ・・・ +61.0% Peripherals/Services, etc. Software Network ・・・ +38.3% Storage ・・・ +24.5% Monitors ・・・ (14.7%) Other peripherals ・・・ +1.8% Service & Support ・・・ +3.4% Software (non-cloud) ・・・ +2.7% Software (cloud) ・・・ +28.5% iKAZUCHI ** ・・・ +35.2% **iKAZUCHI is included in software (cloud)
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Results by End Users (Q1) © Daiwabo Holdings Co., Ltd. 11 *Other: Total of small-scale transactions in the Corporate segment (including all of corporate, the education sector, and government agencies/local government sectors) 0 50,000 100,000 150,000 200,000 250,000 300,000 2025/3 1Q 2026/3 1Q 2027/3 1Q Corporate the education sector Government agencies/Local government Other* Consumer <Transaction Volume Trends by end users> (million yen) 56% 16% 12% 7% Q1 FY2027 Highlights % Comparison ratio 9% 55% 15% 14% 7% 9% 57% 8% 16% 9% 10% For corporates, secured large-scale projects for servers and networks related to data center investments, as well as in SaaS (cloud services) where migration to higher security level plans is progressing IaaS (AWS, Azure, etc.) continued to expand In AI-related services, generative AI services centered on Microsoft Copilot showed growth. AI sales within overall SaaS increased significantly by +175% year-on-year. Transition from simple AI usage to a full-scale AI utilization phase in business operations For government agencies, secured multiple large-scale PC projects. For the education sector, deliveries from the previous year's GIGA School bids progressed, and revenue increased due to securing large-scale projects for high schools and school affairs.
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17,913 40,541 54,570 2025/3 2026/3 2027/3 ■iKAZUCHI 12-month cumulative transaction volume trends (considering annual billing, etc.) Subscription Business iKAZUCHI © Daiwabo Holdings Co., Ltd. 12 iKAZUCHI Growth Trajectory As the high purchasing of the annual payment, steady growth can be confirmed by looking at trends in the cumulative 12 months instead of quarterly. Transaction volume through iKAZUCHI Total sales to sales partners through the subscription management portal “iKAZUCHI” (included in software category) Expanding the Marketplace and Strengthening the “Foundation” of recurring revenue in the subscription business Number of vendors/services 147 vendors 148 vendors 291 services 301 services (2026/3) (2026/6) (million yen) (million yen) 59,2372019/6～2025/6 CAGR +43.3%Annual Target : 68.0 billion yen 68,000 3,670 54,570 7,596 11,155 14,708 20,499 40,541 28,505 +42.2% YoY +34.6% YoY +24.6% YoY +35.2% YoY
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IT Infrastructure Distribution Business 2Q (July-September) Forecast 13 216,644 284,994 362,957 249,901 2024/3 2Q 2025/3 2Q 2026/3 2Q 2027/3 2Q 7,046 8,811 12,351 8,338 3.3% 3.1% 3.4% 3.3% 2024/3 2Q 2025/3 2Q 2026/3 2Q 2027/3 2Q ( 32.5% ) ■Net sales ■Operating income ■Operating profit margin Outlook for 2Q and Beyond Profitability Outlook With the market increasingly recognizing rising prices, and as cost pass-throughs progress from the 2Q onwards—combined with efforts to stabilize product supply and pricing through strategic procurement—operating profit margins are projected to improve relative to the first quarter Outlook Against Full-year performance Forecasts For 2Q, net sales are expected to exceed the plan due to rising PC prices, while operating profit is projected to track in line with the plan. Amid uncertainty regarding market conditions from the second half onwards, we are closely monitoring the situation and maintaining performance forecasts announced on May 13 (please refer to pages 19 and 20 for details). Since registrations of sales tend to concentrate on March and September when a great number of companies in Japan close their accounts, we compare the results in the fiscal year under review with the relevant period of the previous fiscal year, not with the preceding quarter Seasonality of the IT Infrastructure Distribution Business +27.4% +40.2% (million yen) ( 31. 1 % ) +25.1% © Daiwabo Holdings Co., Ltd. (Plan) (Plan) +31.5%
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2,182 1,786 3,866 3,050 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q 137 △ 87 379 236 6.3% - 4.9% 9.8% 7.8% 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q ■Net sales ■Operating income ■Operating profit margin Industrial Machinery Business 14 (million yen) Net sales 3,050 million yen YoY (21.1%) Operating income 236 million yen YoY (37.7%) Orders received 3,610 million yen YoY +42.2% Business Overview Machine Tools Division According to the Japan Machine Tool Builders’ Association (JMTBA), total market orders for April–June increased by 45.2% compared to the previous fisccal year. In addition to the continued recovery of our mainstay aircraft industry, the shipbuilding and energy industries performed well, and orders received increased significantly year-on-year (+100.2%). Overseas, the North American market performed well, and the Chinese market also performed well against the backdrop of data center-related investments. Net sales and operating income decreased due to the pullback from large project in the same period of the previous year. Automatic Machinery Division While the need for labor-saving to address labor shortages continues, companies are cautious about capital investment due to rising raw material and energy prices, and orders received decreased year-on-year. Net sales and operating income decreased due to a decline in sales results. © Daiwabo Holdings Co., Ltd.
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15 Consolidated Balance Sheet for 1Q of the Fiscal Year Ending March 31, 2027 (P3-4 on Brief of Consolidated Statement of Account) (million yen) 2026/3 2026/6 Change Current assets 426,508 441,500 +14,992 Cash and deposits 45,152 6,643 (38,508) Notes and accounts receivable 302,472 300,696 (1,775) Goods and products 58,720 105,776 +47,056 Tangible fixed assets 12,555 11,882 (672) Intangible fixed assets 6,351 6,065 (286) Investments and other assets 16,657 17,497 +839 Total assets 462,072 476,946 +14,873 2026/3 2026/6 Change Current liabilities 278,035 292,511 +14,476 Notes and accounts payable 234,698 238,088 +3,389 Short-term loans payable 10,904 29,237 +18,333 Non-current liabilities 14,208 14,673 +465 Long-term debt 7,465 7,531 +66 Total liabilities 292,243 307,185 +14,941 Total net assets 169,829 169,761 (67) Treasury share (4,288) (6,309) (2,021) Total liabilities and net assets 462,072 476,946 +14,873 Cash and deposits 45,152 → 6,643 (38,508) Decrease in cash and deposits due to increase in merchandise inventory Goods and products 58,720 → 105,776 +47,056 Strategic procurement in anticipation of product price increases Borrowings 18,369 → 36,769 +18,400 Due to increase in working capital © Daiwabo Holdings Co., Ltd.
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16 (million yen) 2026/3 1Q 2027/3 1Q Change previous fisccal year Actual results Margin Actual results Margin Net sales 290,601 313,148 +22,547 +7.8% Gross profit 22,099 7.6% 20,682 6.6% (1,417) (6.4%) the SG&A expense 12,222 4.2% 12,980 4.1% +757 +6.2% Operating income 9,876 3.4% 7,701 2.5% (2,174) (22.0%) Ordinary income 10,111 3.5% 7,873 2.5% (2,237) (22.1%) Extraordinary Income 270 566 +295 - Extraordinary loss 0 0 0 - Profit attributable to owners of parent 7,195 2.5% 5,795 1.9% (1,399) (19.5%) © Daiwabo Holdings Co., Ltd. Extraordinary Income Gain on sales of noncurrent assets related to distribution centers Consolidated Statement of Operations for 1Q of the Fiscal Year Ending March 31, 2027 (P5 on Brief of Consolidated Statement of Account)
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Full-Year Performance Forecast for the Fiscal Year Ending March 31, 2027 17© Daiwabo Holdings Co., Ltd.
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Regarding the Impact on Performance Forecast © Daiwabo Holdings Co., Ltd. Forecast as of August 2026 regarding matters that may affect the FY 2027 performance forecast Information will be revised as appropriate if circumstances change 18 Summary Impact on FY2027 Performance Forecast Surge in memory prices PC PC prices rose 20% to 30% in April, with some manufacturers implementing price increases in July as well. Prices are expected to continue rising from October onward No current issues on the supply side PC Although there is an impact from consumer hesitation due to rapid price increases, this is still expected to have a positive effect on the performance forecast Servers In particular, GPU - configured products have increased memory capacity, resulting in significant price increases. Delivery delays continue in some models Servers While unit sales decreased year - on - year, price increases boosted net sales, contributing positively to 1 Q . We will continue to monitor the situation as both pricing and supply remain uncertain from 2 Q onward Due to the Middle East situation Crude oil shortage Anticipated Impacts Surge in logistics and transportation costs Increase in product procurement prices (costs) Supply chain disruptions and delivery delays Decrease in sales due to reduction or freeze in IT investment budgets among end users The following concerns are anticipated but excluded from the current fiscal year performance forecast at this time Direct impact of IT product supply chain is limited Concerns over procurement instability for petroleum - derived components Due to changes in the macroeconomic environment such as interest rate and exchange rate fluctuations caused by geopolitical instability We are closely monitoring restraints on corporate capital investment budgets
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First Half Performance Forecast for the Fiscal Year Ending March 31, 2027 19 (million yen) 2026/3 1H 2027/3 1H Change YoY Change Amount OPM Amount OPM Net sales 656,830 567,050 (89,780) (13.7%) IT Infrastructure Distribution 649,692 560,000 (89,692) (13.8%) Industrial Machinery 7,137 7,050 (87) (1.2%) Operating income 22,435 3.4% 16,500 2.9% (5,935) (26.5%) IT Infrastructure Distribution 21,843 3.4% 15,800 2.8% (6,043) (27.7%) Industrial Machinery 585 8.2% 700 9.9% +114 +19.5% Ordinary income 22,608 3.4% 16,600 2.9% (6,008) (26.6%) Profit Attributable to owners of parent 15,736 2.4% 11,400 2.0% (4,336) (27.6%) Earnings per Share (Yen) 176.04 131.16 (44.88) (25.5%) © Daiwabo Holdings Co., Ltd. No change
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20 (million yen) 2026/3 (Actual) 2027/3 (Forecast) Change YoY change Amount OPM Amount OPM Net sales 1,350,879 1,189,000 (161,879) (12.0%) IT Infrastructure Distribution 1,336,479 1,174,500 (161,979) (12.1%) Industrial Machinery 14,400 14,500 +99 +0.7% Operating income 44,169 3.3% 36,500 3.1% (7,669) (17.4%) IT Infrastructure Distribution 43,030 3.2% 35,000 3.0% (8,030) (18.7%) Industrial Machinery 1,127 7.8% 1,500 10.3% +372 +33.1% Ordinary income 44,943 3.3% 36,700 3.1% (8,243) (18.3%) Profit Attributable to owners of parent 32,030 2.4% 25,300 2.1% (6,730) (21.0%) Earnings per Share (Yen) 362.07 291.09 (70.98) (19.6%) © Daiwabo Holdings Co., Ltd. Full Year Performance Forecast for the Fiscal Year Ending March 31, 2027 No change
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Shareholder Returns © Daiwabo Holdings Co., Ltd. 21
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Shareholder Returns © Daiwabo Holdings Co., Ltd. 22 (Forecast) Fiscal year ended March 2026 Fiscal year ending March 2027 (Planed) Dividends per share Interim period Year-end For the year Interim period Year-end For the year 50 yen 55 yen 105 yen 55 yen 55 yen 110 yen Acquisition of treasury shares about 8 billion yen maximum of 6 billion yen (scheduled for retirement after acquisition) dividend ratio 29.0% 37.8% total payout ratio 53.8% 61.6% Group Policy Dividend Dividend ratio of 30% or more Policy of progressive dividend during the current MTP Acquisition of treasury shares Target total payout ratio of 60% or more Combined with flexible acquisition of shares 30 30 32 45 50 55 30 32 32 45 55 55 178.14 202.79 45.82 271.37 362.07 291.09 2022/3 2023/3 2024/3 2025/3 2026/3 2027/3 Earnings Per Share/EPS (yen) 60 62 64 90 105 110
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Reference material © Daiwabo Holdings Co., Ltd. 23 ➤ "Transaction Volume" of the IT Infrastructure Distribution Business ➤ Business Overview ➤ Performance Trends Graph ➤ Stock Price Trends
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"Transaction Volume" of IT Infrastructure Distribution Business © Daiwabo Holdings Co., Ltd. 24 Transaction volume Net sales Transaction volume Net sales Impact due to application of the “Accounting Standard for Revenue Recognition.” (From the fiscal year ended March 31, 2022) The company records as net sales the net amount of sales consideration for “agency transactions” under the accounting standards for some maintenance and warranty services, software sales due to iKAZUCHI, etc. Net sales from the fiscal year ended March 2022 Sales evaluations in financial accounting Calculated under the same standard as net sales up to the fiscal year ended March 2021 (= Net sales prior to the change in the accounting standards) Continuing to use as "transaction volume" to make an important index in presenting the scale of transaction Sales evaluations in management accounting
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Group History © Daiwabo Holdings Co., Ltd. 25 1941. 4 Daiwabo was established through the merger of four companies: Kinka Boseki, Hinode Boshoku, Izumo Seishoku, and Wakayama Boshoku 1949. 5 Daiwabo was listed on the First Section of the Tokyo Stock Exchange 1949. 7 Daiwabo spun off its Shinji Plant to establish Daiwa Machinery Co., Ltd. (currently O-M Ltd.) -> In 1960, Daiwa Machinery Co., Ltd. was merged with Osaka Kikai Seisakusho, a manufacturer of machine tools and spinning machines, to form O-M Ltd. 1971.11 O-M Ltd. was listed on the First Section of the Tokyo Stock Exchange 1982. 4 As part of its new business development, Daiwabo established Daiwabo Information System to evolve into an information-related business 2000. 9 Daiwabo Information System was listed on the First Section of the Tokyo Stock Exchange 2009. 4 Daiwabo and Daiwabo Information System integrated their management structures 2009. 7 Daiwabo changed its trade name to Daiwabo Holdings Co., Ltd. and established Daiwabo Co., Ltd. as a new core company for its fiber business 2011. 7 2024. 3 Daiwabo Holdings Co., Ltd. and O-M Ltd. integrated their management structures => To operate three businesses Daiwabo Co., Ltd. became independent through a share transfer Daiwabo Co., Ltd. Fiber Business IT Infrastructure Distribution Business Industrial Machinery Business Daiwabo Holdings Co., Ltd. Fiber Business Industrial Marchinery Business IT Infrastructure Distribution Business Daiwabo Hodings
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IT Infrastructure Distribution Business Strategies © Daiwabo Holdings Co., Ltd. 26 Deepening core areas as a leading company Expanding market share in the cloud domain, a growth area Strengthening the growth foundation in the IaaS/PaaS domain (proposals for AWS/Azure/Google Cloud) Expanding SaaS market share (strengthening promotion of services listed on iKAZUCHI ) Implementation of strategic investment Strengthening sales partner relationships through DX promotion Restraining the decline due to pullback from special demand (capturing remaining demand from the AI PC market and the GIGA School 2 nd Phase ) Growth in next - generation infrastructure business areas (managed service proposals aimed at reducing IT operational burden) 649,692 686,786 560,000 614,500 2026/3 First Half 2026/3 Second Half 2027/3 First Half 2027/3 Second Half 21,843 21,186 15,800 19,200 3.4% 3.1% 2.8% 3.1% 2026/3 First Half 2026/3 Second Half 2027/3 First Half 2027/3 Second Half (million yen) 2027/3 forecast 2026/3 Actual results Corporate branding that enhances DIS value Improving sales partners productivity (supporting resolution of engineer shortages through original service offerings) Business area expansion through deployment of advanced technologies (developing overseas vendors not yet deployed domestically) Investment for business strengthening (consideration of the next system) Investment for industry optimization (consideration of next - generation logistics strategies aimed at improving efficiency across the entire IT distribution industry, etc.) Rebuilding the corporate brand (promoting rebranding project including company name change) Raising public awareness of DIS (expanding communications through media utilization) 1 2 3 4 5 ■Net Sales ■Operating Income ■Operating profit Margin
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2,929 2,076 1,790 1,889 1,986 2,604 3,995 5,136 2,838 2,992 3,014 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3 2026/3 2027/3 2028/3 GIGA 1st Win7 EOS WinXP EOS (Forecast) Win10 EOS PC shipments trends © Daiwabo Holdings Co., Ltd. 27 PC Shipment Status the GIGA School Phase 2 Device Renewal It is assumed that there is a demand for approximately 10 million units nationwide from FY March 2025, to FY March 2027, and approximately 70% have already been updated Targeting a transaction volume of approximately 60 billion yen in FY March 2027, including PCs, tablets, and related products and services Bidding for FY March 2027 is progressing sequentially, but GIGA- eligible terminals are also rising in price due to soaring memory prices. Deliveries may be delayed going forward, and we are monitoring the situation in cooperation with sales partners (Forecast) GIGA 2nd PC Market Forecast for FY March 2028 and Beyond Solid demand is expected to continue against the backdrop of corporate DX investment, and market penetration of AI PCs is anticipated Attention must be paid to rising IT product unit prices due to memory prices and high crude oil prices, and the accompanying decline in demand 3,894 6,540 (thousand units) (Forecast) Windows update, GIGA demand Ordinary PC demand In FY March 2027, Windows renewal demand will end, and sales in corporates market will decrease by approximately 900,000 units compared to previous year.
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History of Daiwabo Information System (DIS) © Daiwabo Holdings Co., Ltd. 28 1982 DIS Founded • Daiwabo Co., Ltd. leveraged its expertise from in-house development of production site monitoring systems using PCs, starting with just 10 employees • Shifting from system development&sales to the sale of information equipment, including PCs. 1983-1984 Chain-store Expansion • Opened branches in Saga, Izumo, and Kanazawa where Daiwabo Co., Ltd. had factories, and accelerated chain- store expansion as all became profitable early on GIGA 1st Win7 EOS Win10 EOS GIGA 2nd Win95 launched WinXP launched Consumption tax 3% Consumption tax 5% Consumption tax 8% Consumption tax 10% sales management system DIS-NET launched DIS-NETII DIS-NETIII DIS-NETIV (Fiscal year) 2013~ Windows upgrade demand • Upgrade demand due to end of support for Windows XP, which was highly regarded for its stability and operability • Despite temporary pullback after special demand, steady growth continued WinXP EOS 2020~ GIGA School Program • An initiative by the MEXT* to develop ICT environments in schools, including providing one device per student in elementary and junior high schools and building high-speed, high-capacity communication networks *(Ministry of Education, Culture, Sports, Science and Technology) Adoption of Accounting Standard for Revenue Recognition DIS-NETV
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IT Infrastructure Distribution Business Quarterly Performance Comparison 29 169,523 217,347 268,167 314,710 149,878 165,276 170,199 205,926 168,611 203,094 211,111 246,180 192,592 216,644 213,038 272,417 226,058 284,994 288,627 324,241 286,734 362,957 341,775 345,011 310,098 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 3,838 6,911 9,484 12,991 3,558 4,997 4,424 8,669 3,923 5,815 6,531 9,124 4,529 7,046 5,884 10,784 4,358 8,811 8,307 12,567 9,492 12,351 10,207 10,978 7,461 2.3% 3.2% 3.5% 4.1% 2.4% 3.0% 2.6% 4.2% 2.3% 2.9% 3.1% 3.7% 2.4% 3.3% 2.8% 4.0% 1.9% 3.1% 2.9% 3.9% 3.3% 3.4% 3.0% 3.2% 2.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q ■net sales ■operating income ■Operating profit margin © Daiwabo Holdings Co., Ltd. (million yen) 2022/3 2023/3 2025/32024/3 2026/3 2027/3 GIGA School Phase 1 Application of the Accounting Standards for Revenue Recognition 2021/3 Upgrade demand due to Windows 10 EOS the GIGA School Phase 2
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The Business Structure of IT Infrastructure Distribution Business 30 Promotional capabilities Sales management system Partner support capabilities DIS-owned media - PC-Webzine.com Events (held throughout the country and online) - DIS World -ICT EXPO - DIS Webinar Service and support capabilities - Setting/Installation services - Original maintenance - Call center business Logistics bases throughout the country Logistics capabilities of DIS - Delivery, shipping, storage and receipt - Vendor warehouse service - Kitting Manufacturers (Suppliers) End user Companies Government agencies and local government General consumers Education and research facilities Medical institutions Sales partners Trading companies Office equipment dealers Mass merchandisers and specialty stores EC and web businesses operators SIer･NIer Diversification of customer needs Business practices that differ by industry or area Sales network of 112bases nationwide Approx. 1,500 companies Approx. 2.9 million product items A wide range of products from venders around the world Approx. 19,000 companies Telecommunications companies © Daiwabo Holdings Co., Ltd.
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Role and Added Value of Distributors 31 Role of DIS Through supply chain management developed over many years, share demand and needs across the country and reflect them in manufacturers’ production plans and promotions By using the logistics center as a warehouse for vendors, realize shipping combining kitting and combinations with other companies’ products in addition to time and cost savings for vendors Collaborate with vendors entering the Japanese market from overseas to provide sales and distribution networks covering Japan Propose / offer products and information of various vendors in the best mix From extensive inventory, deliver quickly to end users nationwide on behalf of sales partners Provide one-stop technical services such as pre- shipment kitting, operation, maintenance, and extended warranty Create demand using nationwide bases, such as holding events and promotions tailored to regional characteristics Approx. 1,500 companies Approx. 2.9 million product items Sales partners Approx. 19,000 companies Expand sales channels and improve sales efficiency using DIS’s sales network Focus on businesses they specialize in by effectively utilizing DIS functions Product development Sales / promotions Orders / production Inventory / shipment Billing / collection Selection Setup Proposal Delivery Estimate Payment Order Customer handling Integration / collaboration / agency Integration / collaboration / agency Sales network of 112 bases nationwide Logistics center Product selection / proposal Identification of market needs Kitting Maintenance and support Manufacturers (Suppliers) © Daiwabo Holdings Co., Ltd.
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iKAZUCHI - A platform for managing subscription contract - © Daiwabo Holdings Co., Ltd. Situation where multiple services are directly used iKAZUCHI is a platform for managing subscription contract With multiple payment methods available, such as monthly, annual, and pay-as-you-go, managing subscription contracts for each account might be complicated when signing up, renewing, or canceling. Centralized management of multiple vendors, subscription services, and user accounts. Enable to check the status of the contract on the same screen as the user even when using multiple services. Users also enable to check the contract status by themselves. Corresponds to various payment cycles such as monthly, annual, and pay-as-you-go Management portals provided to sales partners LargeNumber of Subscription services Number of contracts / Number of users Large The more services, contracts, and users there are, the more valuable iKAZUCHI becomes. 148 Vendors / 301 Services 120,000 or more user companies 160,000 or more contracts (As of the end of June 2026) iKAZUCHI provides Using iKAZUCHI not only improves convenience for sales partners, but the more users there are, the more valuable it becomes for vendors to list their services on iKAZUCHI . Furthermore, the expansion of the service increases its value to users as well. “The network effect” is a result of the expansion of the network, bringing value to vendors, sales partners, and users alike. “The Network Effects” provided by iKAZUCHI Sales Partners Software Vendors End Users 32 Labor Management/Design/Development/Online Meeting/Securities etc. Labor Management / Design / Development / Online Meeting / Securities etc.
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Expansion of Security Business © Daiwabo Holdings Co., Ltd. 33 Other Network/Surveillance cameras Cloud security Server security, etc. data Security Backup Data encryption Data erasure/recovery Authentication Security Unauthorized access prevention Spoofing prevention Integration Security management IT asset visualization Centralized management Network Security UTM/Firewall Filtering Email/Web security Endpoint Security Antivirus Mobile security EDR・XDR YoY Change (%) Transaction volume Attack detection Attack defense Incident handling RecoveryRisk identificationGovernance Strengthening services provided and support corresponding to NIST Cyber Security Framework* Functional Classification Currently, the focus is on self-assessment in preparation for the launch of the SCS evaluation system In the future, whether or not a company has obtained a star rating under the evaluation system will become a condition for business transactions Projects for introducing countermeasure products aimed at obtaining star ratings are expected to increase over the next 3-5 years +44.4% +47.0% +20.4% +19.0% +5.3% +20.0% Transaction Volume of Products Subject to the Supply Chain Security Measures Evaluation System in FY2025 ★3 ★4 ★5 (tentative) [threat] General cyber attacks [Countermeasures] Basic measures including organizational and technical aspects [Evaluation] Self-assessment with expert verification [threat] Attacks on companies causing significant damage [Countermeasures] Standard measures including organizational and technical aspects [Evaluation] Third-party evaluation [threat] Advanced/unknown cyber attacks [Countermeasures] Advanced measures based on international standards, etc. [Evaluation] Third-party evaluation 60.1 billion yen YoY +20.0% Star rating acquisition becomes a common measure for business transactions Source: Ministry of Economy, Trade and Industry website 'Cybersecurity Support Service (New Classification)' https://www.meti.go.jp/policy/netsecurity/otasuketai_jissho.html *A framework for managing cybersecurity risks provided by the National Institute of Standards and Technology (NIST). Transitioned to version 2.0 in 2024 Definition of star rating Demand for security measures is projected to grow driven by "the Supply Chain Security (SCS) Measures Evaluation System.“ of METI.
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Greater Efficiency of Distribution Centers 34 Kansai Center (Kobe City) Kanto Central Center (Yoshimi Town, Saitama Prefecture) May 2020 Full-scale operation Warehouse area: 36,342 m2 Focus on greater efficiency and improvements in productivity centered on eastern and western mega - centers Robot storage system >>Greater work efficiency and optimization of space [Number of robots operating] Central Eastern Japan: 45 Western Japan: 30 Equipped with kitting centers >> Quick shipment Truck Booking System >> Sharing of incoming and outgoing information and vehicle leveling June 2016 Full-scale operation Warehouse area: 44,753 m2 PCs and tablets Kitting results : 482,000 units (FY2025 Results) © Daiwabo Holdings Co., Ltd.
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Domestic PC market share © Daiwabo Holdings Co., Ltd. 35 2,929 2,604 3,995 5,136 2,838 2,992 3,014 3,894 6,540 23.2% 28.2% 33.6% 38.2% 33.2% 36.8% 37.5% 36.2% 46.8% 17.7% 22.0% 26.1% 29.7% 24.2% 26.6% 27.9% 28.6% 36.5% 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 Company PC shipments (thousands of units) DIS domestic share (for corporates) DIS domestic share (overall) Involved in more than 1 in 3 PCs for corporate use *Calculated based on the results of a survey by MM Research Institute (FY3/26 is based on a preliminary report from the research company, so the published share figures may be revised)
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Sales efficiency improvement and low-cost operations © Daiwabo Holdings Co., Ltd. 36 6.8% 4.8% 4.4% 3.8% 4.5% 4.1% 4.3% 3.8% 3.5% 7.5% 7.3% 7.6% 7.2% 7.5% 7.0% 7.4% 6.8% 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3 2026/3 Net sales per employee the SG&A to sales ratio gross profit margin IT Infrastructure Distribution Business Results Operating income margin 0.7% *Does not reflect consolidated adjustments and therefore differs from segment results SFA BI RPA Manufacturer Approximately 1,500 companies EDI EDI Core systems (DIS - NETV) Logistics Center Sales Partner Approximately 19,000 companies End user Operating income margin 3.2% 6.8% Strengthen the system infrastructure that supports net sales of over 1 trillion yen Add and reinforce equipment specifications to enhance performance and improve availability Migration including the migration of existing systems and modifications of incompatible programs Disaster, failure, and security countermeasures; improvement of operations management and enhancement of availability Strengthening of connection with internal systems and their automation Reinforcement of functions of iDATEN, iKAZUCHI, EDI, etc. Implement the following functional enhancement over the three - year period
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Capturing earnings improvements in automatic machinery division Industrial Machinery Business Strategies © Daiwabo Holdings Co., Ltd. Efforts to expand sales in machine tools division Strengthening inventory sales strategy (expanding short lead time sales in U.S. and China markets) Developing overseas markets (market research in promising Asian regions) Continued development and commercialization of high - precision vertical lathes (for aircraft and energy industries) Capturing replacement demand in major domestic industries Strengthening profitability by reinforcing the service structure Proposing overhauls for installed products Finding cooperative enterprises for service support Optimizing production planning (continuing appropriate order risk assessment) Improving market competitiveness (strengthening case packer sales, promoting new model development) Advancing proposal - based sales based on customer needs (for food, confectionery, and pharmaceutical industries) 37 7,137 7,262 7,050 7,450 2026/3 First Half 2026/3 Second Half 2027/3 First Half 2027/3 Second Half 585 541 700 800 8.2% 7.5% 9.9% 10.7% 2026/3 First Half 2026/3 Second Half 2027/3 First Half 2027/3 Second Half (million yen) 2027/3 Plan 2026/3 Actual results Promotion of Human Resource Education Improving technical capabilities through expanded skills training Strengthening the sales foundation to achieve both the transfer of veteran knowledge and the development of young employees 1 2 3 4 ■Net Sales ■Operating Income ■Operating profit Margin
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Industrial Machinery Business -Product Examples - © Daiwabo Holdings Co., Ltd. 38 No. 1 share in Japan for both medium- and large-sized lathes (Cumulative shipments exceeded 7,800 units) Highly evaluated as "OM for vertical lathes" in Japan and overseas A machine that is used to cut a workpiece by attaching it to a horizontally rotating table. The table diameter ranges from 800 mm to 6,000 mm, and it can be used in a wide variety of production modes. Highly rigid, highly accurate and easy to operate, it is used as a mother machine in all fields including aircraft engine and wind power parts The picture on the left shows the “RT-915,” a small general-purpose machine A machine tool specifically used to maintain rolling stock. It contributes to improved railway safety and riding comfort No. 1 share in Japan for underfloor wheel lathes To start domestic production, we had a licensing agreement with Hegenscheidt which manufactured the first wheel lathe in the world and has an excellent delivery record around the world. The design, parts and software are all original We manufacture a wide range of automatic machinery including cartoners (cartoning machine), intermediate packaging machines for stacking and packaging products in film and corrugated cardboard casers (The picture on the left is a horizontal continuous cartoner) The strengths include technologies and creativity that allow us to flexibly respond to the needs of packaging processes in rapidly changing industries such as foods with short life cycles and remarkable diversification and pharmaceuticals with increasingly strict manufacturing standards Vertical lathes/ Turning centers Wheel lathes Automatic machinery
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123,749 138,002 184,799 169,523 149,878 168,611 192,592 226,058 286,734 310,098 16,007 17,609 18,071 15,824 14,460 14,250 14,417 1,525 2,343 2,118 1,783 2,333 2,359 2,182 1,786 3,866 3,050 141,856 158,473 205,467 187,315 166,862 185,445 209,337 10.9% 11.7% 29.7% - 8.8% - 10.9% 11.1% 12.9% 8.8% 27.5% 7.8% 2018/3 1Q 2019/3 1Q 2020/3 1Q 2021/3 1Q 2022/3 1Q 2023/3 1Q 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q IT Infrastructure Distribution Fiber Industrial Machinery Other Sales growth rate Consolidated Net sales (1Q trends) 39 Regarding Revenue Recognition Application of Accounting Standards © Daiwabo Holdings Co., Ltd. (million yen) the Fiber Business Independence227,844 290,601 313,148
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5,427 4,786 4,521 4,542 5,036 4,528 10,111 7,873 3,662 4,290 3,114 3,146 3,442 3,079 7,195 5,795 2020/3 1Q 2021/3 1Q 2022/3 1Q 2023/3 1Q 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q Ordinary income Quarterly net profit 5,369 4,629 4,393 4,353 4,929 4,274 9,876 7,701 2.6% 2.5% 2.6% 2.3% 2.4% 1.9% 3.4% 2.5% 2020/3 1Q 2021/3 1Q 2022/3 1Q 2023/3 1Q 2024/3 1Q 2025/3 1Q 2026/3 1Q 2027/3 1Q Operating income Operating profit margin Consolidated Operating Income, Ordinary Income, and Net Income (1Q Trends) 40© Daiwabo Holdings Co., Ltd. Consolidated operating income (millions of yen) Consolidated ordinary income and quarterly net income (millions of yen) Fiber Business Independent Fiber Business Independent
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166,862 183,806 188,399 224,770 185,445 223,801 228,363 266,308 209,337 236,580 229,353 292,488 227,844 289,538 291,418 328,016 290,601 366,228 344,400 349,648 313,148 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Consolidated Quarterly Results Trends 41 (million yen) 4,393 5,412 5,070 9,181 4,353 6,609 6,810 10,170 4,929 7,845 6,139 12,049 4,274 9,248 8,490 12,886 9,876 12,558 10,300 11,434 7,701 2.6% 2.9% 2.7% 4.1% 2.3% 3.0% 3.0% 3.8% 2.4% 3.3% 2.7% 4.1% 1.9% 3.2% 2.9% 3.9% 3.4% 3.4% 3.0% 3.3% 2.5% 2022/3 2023/3 2024/3 2025/3 2026/3 ■Consolidated net sales ■Consolidated operating income Operating profit margin © Daiwabo Holdings Co., Ltd. 2027/3
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Consolidated performance trend 42 335,888 328,813 383,757 356,203 406,688 405,256 440,122 462,072 476,946 87,191 104,741 129,322 136,173 143,961 142,133 152,310 169,829 169,761 25.7% 31.6% 33.4% 38.0% 35.2% 35.0% 34.6% 36.8% 35.6% 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3 2026/3 2026/6 Total assets Net asset Capital adequacy ratio © Daiwabo Holdings Co., Ltd. Consolidated total assets, consolidated net assets, and capital adequacy ratio (millions of yen) capital investment, depreciation, and R&D Expenses (millions of yen) 3,898 3,667 2,187 2,151 2,679 4,475 5,108 1,701 3,112 3,405 3,491 3,381 3,290 1,712 1,872 2,215 1,001 853 883 928 902 151 182 240 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3 2026/3 March 2027 (planned) Capital expenditures Depreciation R&D expenses
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Stock Price Trends 43 Stock Price Trends (monthly, closing price basis) ■ Daiwabo HD ■ Nikkei Stock Average ■ TOPIX 3,449 yen 35,579 0.99 1.72 Market capitalization PBR 1x level *Past 5 years As of the end of June 2026 1.72 (million yen) *Company stock prices are retrospectively shown for reverse stock split (October 1, 2017) and stock split (April 1, 2021) 305,164 million yen PBR Market capitalization *Forcast at the end of year based on closing price as of June 2026 11.85PER 204.9%TSR © Daiwabo Holdings Co., Ltd. 305,164 *Forcast at the end of year based on closing price as of June 2026
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About Daiwabo Holdings Co., Ltd. 44 Head Office Nakanoshima Festival Tower West, 3-2-4 Nakanoshima, Kita-ku, Osaka 530-0005 Established Founded as Daiwa Boseki April 1, 1941 Establishment of Daiwabo Holdings Co., Ltd. July 1, 2009 Consolidated employees 3,072 (as of March 31, 2026) Capital 21,696,744,900 yen Stock exchange Listed on the Prime Market of the Tokyo Stock Exchange Stock code 3107 Industry: Wholesale <JPX Nikkei Index 400> Business profile IT Infrastructure Distribution Business [Core company] Sales of computers, peripherals and software, and logistics services Installation and maintenance of and repair services for computer equipment, etc. Industrial Machinery Business [Core company] Manufacture and sales of machine tools, automatic machinery and casting products Daiwabo Information System Co., Ltd. O.M. Ltd. © Daiwabo Holdings Co., Ltd.
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45 The earnings forecasts and other forward-looking statements herein have been prepared based on certain assumptions that Company believes to be reasonable as of the date of publication of this document, and no assurance can be given as to the accuracy thereof. Please be aware that actual results may differ from the content of this document due to a variety of factors in the future. Company disclaims any liability for any damages resulting from the use of this material for any reason. [Disclaimer] https://www.daiwabo-holdings.com/ ※The company names, product names, etc. described in this document are registered trademarks or trademarks of their respective companies. The news https://www.daiwabo-holdings.com/ja/news.html Daiwabo Group List https://www.daiwabo-holdings.com/ja/group.html History https://www.daiwabo-holdings.com/ja/company/history.html Daiwabo Holdings Co., Ltd. © Daiwabo Holdings Co., Ltd.