Interim report
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DISCLAIMER: This document is a translation of the Japanese original for reference purposes only. In the event of any discrepancy, the original shall prevail. September 10, 2026 Consolidated Financial Results for the Fiscal Year Ended July 31, 2026 (Under Japanese GAAP) Company name: DIGITAL GRID Corporation Listing: Tokyo Stock Exchange Growth Section Securities code: 350A URL: https://www.digitalgrid.com/ Representative: Yusuke Toyoda, Representative Director, President and CEO Inquiries: Takehisa Shimada, Director, CFO Telephone: +81-3-6277-7123 Scheduled date of annual general meeting of shareholders: October 29, 2026 Scheduled start of dividend payments: - Scheduled date to file annual securities report: October 28, 2026 Supplementary materials on financial results prepared: Yes Financial results briefing held: Yes (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended July 31, 2026 (from August 1, 2025 to July 31, 2026) (1) Consolidated operating results (Percentages indicate year on year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) July 31, 2026 7,113 15.6 3,017 10.0 2,909 11.3 2,037 9.0 July 31, 2025 6,153 - 2,742 - 2,614 - 1,870 - Note: Comprehensive income For the fiscal year ended July 31, 2026: JPY 2,037 million [8.9%] For the fiscal year ended July 31, 2025: JPY 1,870 million [-%] Basic earnings per share Diluted earnings per share Return on equity Return on assets Operating profit margin Fiscal year ended (Yen) (Yen) (%) (%) (%) July 31, 2026 50.80 44.35 21.7 12.0 42.4 July 31, 2025 51.46 41.38 22.6 14.7 44.6 Notes: 1. Since consolidated financial statements have been prepared from the fiscal year ended July 31, 2025, the year on year change for the fiscal year ended July 31, 2025 is not presented. In addition, return on equity and the ratio of ordinary profit to total assets for the fiscal year ended July 31, 2025 were calculated based on equity at the end of the fiscal year and total assets at the end of the fiscal year, respectively, as it was the first year of consolidation. 2. On February 12, 2025, the Company conducted a share split at a ratio of 10 shares for each share of common stock. In addition, on November 1, 2025, the Company conducted a share split at a ratio of six shares for each share of common stock. Basic earnings per share and diluted earnings per share have been calculated on the assumption that the share splits were effective at the beginning of the previous consolidated fiscal year. 3. The Company was listed on the Tokyo Stock Exchange Growth Section on April 22, 2025. Accordingly, diluted earnings per share for the previous consolidated fiscal year were calculated using the average share price from the listing date through the end of the fiscal year as the average share price during the period. (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share (Millions of yen) (Millions of yen) (%) (Yen) As of July 31, 2026 30,817 10,536 34.1 251.59 As of July 31, 2025 17,817 8,277 46.5 213.64 Reference: Equity As of July 31, 2026: JPY 10,521 million As of July 31, 2025: JPY 8,277 million Note: The Company conducted a share split at a ratio of six shares for each share of common stock on November 1, 2025. Net assets per share have been calculated on the assumption that this share split was effective at the beginning of the previous consolidated fiscal year. (3) Consolidated cash flows Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash and cash equivalents at end of period Fiscal year ended (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) July 31, 2026 (1,849) (4,396) 7,894 6,295 July 31, 2025 321 (181) 528 4,648
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2. Cash dividends Annual dividends per share Total cash dividends Dividend payout ratio (consolidated) Dividend-to- equity ratio (consolidated) First quarter- end Second quarter- end Third quarter- end Fiscal year-end Total (Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) (%) (%) Fiscal year ended July 31, 2025 - - - 0.00 0.00 - - - Fiscal year ended July 31, 2026 - 0.00 - 0.00 0.00 - - - Fiscal year ending July 31, 2027 (Forecast) - 0.00 - 0.00 0.00 - - - 3. Forecast of consolidated financial results for the fiscal year ending July 31, 2027 (from August 1, 2026 to July 31, 2027) (Percentages indicate year on year changes) Net sales Adjusted EBITDA Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen) Full year 7,967 12.0 3,185 4.5 2,865 (5.0) 2,394 (17.7) 1,673 (17.9) 40.02 Note: Adjusted EBITDA is calculated as EBITDA (operating profit, depreciation and amortization) plus stock-based compensation expenses. * Notes (1) Significant changes in the scope of consolidation during the period: None (2) 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 (3) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of July 31, 2026 41,820,180 shares As of July 31, 2025 38,743,800 shares (ii) Number of treasury shares at the end of the period As of July 31, 2026 - shares As of July 31, 2025 - shares (iii) Average number of shares outstanding during the period Fiscal year ended July 31, 2026 40,112,072 shares Fiscal year ended July 31, 2025 36,343,274 shares Note: On February 12, 2025, the Company conducted a share split at a ratio of 10 shares for each share of common stock. In addition, on November 1, 2025, the Company conducted a share split at a ratio of six shares for each share of common stock. The number of issued shares at the end of the period and the average number of shares outstanding during the period have been calculated on the assumption that the share splits were effective at the beginning of the previous fiscal year. [Reference] Overview of Non-Consolidated Financial Results 1. Non-consolidated financial results for the fiscal year ended July 31, 2026 (from August 1, 2025 to July 31, 2026) (1) Non-consolidated operating results (Percentages indicate year on year changes) Net sales Operating profit Ordinary profit Profit Fiscal year ended (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) July 31, 2026 7,120 15.7 3,141 14.5 2,921 11.6 2,037 8.8 July 31, 2025 6,153 75.1 2,743 77.3 2,616 108.8 1,872 92.6 Basic earnings per share Diluted earnings per share Fiscal year ended (Yen) (Yen) July 31, 2026 50.80 44.35 July 31, 2025 51.53 41.44 Notes: 1. On February 12, 2025, the Company conducted a share split at a ratio of 10 shares for each share of common stock. In addition, on November 1, 2025, the Company conducted a share split at a ratio of six shares for each share of common stock. Basic earnings per share and diluted earnings per share have been calculated on the assumption that the share splits were effective at the beginning of the previous fiscal year. 2. The Company was listed on the Tokyo Stock Exchange Growth Section on April 22, 2025. Accordingly, diluted earnings per share for the fiscal year ended July 31, 2025 were calculated using the average share price from the listing date through the end of the fiscal year as the average share price during the period.
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(2) Non-consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share (Millions of yen) (Millions of yen) (%) (Yen) As of July 31, 2026 30,350 10,533 34.7 251.66 As of July 31, 2025 17,822 8,280 46.5 213.71 Reference: Equity As of July 31, 2026: JPY 10,524 million As of July 31, 2025: JPY 8,280 million Note: On November 1, 2025, the Company conducted a share split at a ratio of six shares for each share of common stock. Net assets per share have been calculated on the assumption that the share split was effective at the beginning of the previous fiscal year. * Financial results reports are exempt from audit conducted by certified public accountants or an audit firm. * Appropriate use of earnings forecasts and other special matters (Disclaimer Regarding Forward-Looking Statements) Forward-looking statements, including earnings forecasts, contained in this material are based on information currently available to the Company and certain assumptions deemed reasonable. The Company does not guarantee the achievement of these forecasts. Actual results may differ materially due to various factors. For the assumptions underlying the earnings forecast and other precautions regarding its use, please refer to page 3 of the attached materials, “1. Overview of Operating Results (4) Consolidated Earnings Forecast and Other Forward-Looking Information.”
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Contents 1. Overview of Operating Results, etc. .............................................................................................................................. 2 (1) Overview of Operating Results for the Fiscal Year ......................................................................................... 2 (2) Overview of Financial Position for the Fiscal Year ......................................................................................... 3 (3) Overview of Cash Flows for the Fiscal Year.................................................................................................... 3 (4) Consolidated Earnings Forecast and Other Forward-Looking Information .................................................... 3 2. Basic Approach to Selection of Accounting Standards ................................................................................................. 4 3. Consolidated Financial Statements and Key Notes ....................................................................................................... 5 (1) Consolidated Balance Sheet ............................................................................................................................ 5 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ......................... 6 Consolidated Statement of Income .................................................................................................................. 6 Consolidated Statement of Comprehensive Income ........................................................................................ 6 (3) Consolidated Statement of Changes in Equity................................................................................................. 7 (4) Consolidated Statement of Cash Flows ........................................................................................................... 8 (5) Notes on Consolidated Financial Statements ................................................................................................... 9 Notes on Assumptions of a Going Concern .................................................................................................... 9 Notes on Segment Information, etc. ................................................................................................................ 9 Notes on Per Share Information .................................................................................................................... 11 Notes on Significant Subsequent Events ....................................................................................................... 12 1
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1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year During the consolidated fiscal year under review, Japan’s economy continued to see signs of gradual recovery. Improvements in employment and income conditions supported personal consumption, while the effects of various government policies led to increases in capital investments. On the other hand, continued yen depreciation, persistently high prices for raw materials with a high import ratio, and rising energy prices amid heightened tensions in the Middle East put pressure on corporate earnings and household finances. The outlook therefore remained uncertain. Global economic uncertainty also remained high, marked by prolonged high interest rates in Europe and the United States, concerns over the outlook for the Chinese economy, persistent inflationary pressures, and geopolitical risks. The energy industry, in which the DIGITAL GRID Group (the “Group”) operates, saw challenging financial conditions for electricity companies, driven by high resource prices resulting from the prolonged Russia-Ukraine conflict, instability in the Middle East, and higher import costs due to the continued yen depreciation. On the other hand, revisions to electricity tariffs and stabilization of wholesale electricity market prices led to more proactive customer acquisition, showing signs of improvement across the industry. In addition, Japan’s 7th Strategic Energy Plan forecasts an increase in electricity demand over the medium-to-long term due to the spread of generative AI technologies and the construction of data centers and semiconductor plants, indicating potential growth for the industry as a whole. Against this backdrop, renewable energy adoption continued to expand under the government's Green Transformation (GX) policy, while corporate needs for decarbonization management and renewable energy procurement increased. In this business environment, the Group focused on expanding its businesses toward a sustainable society under its Mission, “Empower the democratization of energy,” its Vision, “Create a world without energy constraints for future generations,” and its tagline, “Choices for the Future of Energy.” As a result, net sales for the consolidated fiscal year amounted to JPY 7,113,916 thousand (up 15.6% year on year), operating profit stood at JPY 3,017,771 thousand (up 10.0% year on year), ordinary profit totaled JPY 2,909,525 thousand (up 11.3% year on year) and profit attributable to owners of parent was JPY 2,037,673 thousand (up 9.0% year on year). Results by segment are as follows. (i) Power Platform Business The Power Platform Business includes electricity transactions on the Digital Grid Platform (DGP), excluding renewable energy. During the consolidated fiscal year under review, the Group focused on initiatives for business expansion, such as new partner collaborations, enhancement of direct sales and customer success initiatives to improve customer lifetime value, and active exposure in business media. In July, the Group also launched low- voltage electricity services for corporate customers. Accordingly, contracted capacity with consumers continued to increase, reaching 871 MW at the end of the consolidated fiscal year. As a result, net sales in the Power Platform Business totaled JPY 5,884,409 thousand (up 8.6% year on year), while segment profit was JPY 3,499,582 thousand (down 0.9% year on year). (ii) Renewable Energy (RE) Platform The RE Platform Business includes transactions of renewable energy sources on the DGP. During the consolidated fiscal year under review, the Group focused on providing follow-up support to ensure the commencement of contracted projects; strengthening sales activities for Power Purchase Agreements (PPAs), including GPAs1, via RE Bridge, a corporate PPA matching platform; and increasing the volume of FIT Non- Fossil Certificate brokerage via Econohashi, a proxy procurement service for FIT non-fossil certificates. Both RE Bridge and Econohashi saw steady growth: registered renewable energy generators on RE Bridge surpassed 150 companies, and registered generation capacity exceeded 2 GW, while cumulative transaction volume on Econohashi surpassed 3.2 billion kWh. Accordingly, contracted capacity with renewable energy generators continued to increase, reaching 393 MW at the end of the fiscal year. As a result, net sales in the RE PF Business amounted to JPY 711,496 thousand (up 58.5% year on year), and segment profit surged to JPY 370,161 thousand (up 207.4% year on year). (iii) Others Business During the consolidated fiscal year under review, the Group focused on accelerating the Aggregation Services within the Power Balancing Business. As a result, total grid-scale battery capacity under management exceeded 165 MW in approximately one year and seven months after the service launch. In addition, the pipeline for owned grid-scale batteries continued to expand, and projects with approved investment decisions reached 32 MW. As a result, net sales in the Others Business totaled JPY 518,010 thousand (up 82.3% year on year), with a segment profit of JPY 136,445 thousand (vs. a segment loss of JPY 245,731 thousand in the previous fiscal year). 1 “GPA” refers to a comprehensive scheme for renewable energy transactions in which consumers directly purchase environmental value (non-FIT Non-Fossil Certificates) generated from additional renewable energy from FIP- certified operators. These non-FIT Non-Fossil Certificates are compliant with RE100. 2
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(2) Overview of Financial Position for the Fiscal Year Assets Current assets at the end of the consolidated fiscal year under review totaled JPY 24,765,056 thousand, up JPY 8,232,650 thousand from the end of the previous fiscal year. This was mainly due to increases of JPY 5,388,382 thousand in accounts receivable—other, JPY 1,647,502 thousand in cash and deposits, and JPY 800,547 thousand in accounts receivable. Non-current assets totaled JPY 6,052,166 thousand, up JPY 4,767,004 thousand from the end of the previous fiscal year. This was mainly due to a JPY 4,347,852 thousand increase in property, plant and equipment. As a result, total assets stood at JPY 30,817,222 thousand, up JPY 12,999,654 thousand from the end of the previous consolidated fiscal year. Liabilities Current liabilities at the end of the consolidated fiscal year under review totaled JPY 18,988,550 thousand, up JPY 10,447,622 thousand from the end of the previous fiscal year. This was mainly due to increases of JPY 7,590,000 thousand in short-term borrowings, JPY 1,889,238 thousand in accounts payable—other, and JPY 1,723,830 thousand in accounts payable. Non-current liabilities totaled JPY 1,292,495 thousand, up JPY 293,095 thousand from the end of the previous fiscal year, mainly due to a JPY 274,188 thousand increase in long-term borrowings. As a result, total liabilities stood at JPY 20,281,045 thousand, up JPY 10,740,717 thousand from the end of the previous consolidated fiscal year. Net Assets Net assets at the end of the consolidated fiscal year under review totaled JPY 10,536,176 thousand, up JPY 2,258,936 thousand from the end of the previous fiscal year. This was mainly due to a JPY 2,037,673 thousand increase in retained earnings. As a result, return on equity was 21.7% (vs. 22.6% at the end of the previous consolidated fiscal year)2. (3) Overview of Cash Flows for the Fiscal Year Cash and cash equivalents (hereinafter, “cash”) at the end of the consolidated fiscal year under review totaled JPY 6,295,821 thousand, up JPY 1,647,502 thousand from the end of the previous fiscal year. Cash flow from operating activities Net cash used in operating activities was JPY 1,849,876 thousand, down by JPY 2,171,115 thousand from the end of the previous fiscal year. Cash inflows increased due to higher profit before income taxes (up by JPY 2,909,525 thousand from the end of the previous fiscal year), accounts payable—other (up by JPY 1,882,962 thousand), and trade payables (up by JPY 1,723,830 thousand). However, these were offset by higher outflows in accounts receivable—other (up JPY 5,388,382 thousand), trade receivables (up JPY 800,547 thousand), and income taxes paid (up JPY 1,170,294 thousand). Cash flow from investing activities Net cash used in investing activities was JPY 4,396,825 thousand, down by JPY 4,215,512 thousand from the end of the previous fiscal year. This was mainly due to an increase in purchases of property, plant and equipment of JPY 4,341,052 thousand. Cash flow from financing activities Net cash provided by financing activities was JPY 7,894,204 thousand, up JPY 7,365,510 thousand from the end of the previous fiscal year. This was mainly due to a net increase in short-term borrowings of JPY 7,590,000 thousand. (4) Consolidated Earnings Forecast and Other Forward-Looking Information The sharp rise in Japan Electric Power Exchange (JEPX) market prices in 2022 forced many new electricity retailers to exit the market. As conditions later stabilized, new entrants adopting market-linked pricing plans gradually increased, creating a more balanced competitive environment that had previously been overly subdued. The Company had forecasted these market assumptions for the fiscal year ended July 31, 2026 and expects this trend to continue in the fiscal year ending July 31, 2027. In response to this shifting competitive landscape, the Company plans to expand contracted capacity and strengthen its market position in the Power PF Business. In the RE PF Business, it aims to expand its business foundation and establish stable earnings capacity through growth in corporate PPAs, driven by the shift from FIT to FIP. In addition, the Company plans to expand its grid-scale battery-related investments and services, including the Aggregation Services Business and Asset Management Business, as its third business pillar to support medium-to- long-term growth. Through these initiatives, the Company aims to position itself as a quality growth stock with high capital efficiency 2 On November 1, 2025, the Company conducted a share split at a ratio of six shares for each share of common stock. Basic earnings per share have been calculated on the assumption that the share splits were effective at the beginning of the previous consolidated fiscal year. 3
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and strong medium-term growth. Its medium-term management targets for the fiscal year ending July 31, 2029 are ROE of 20% or higher, an operating profit margin of 30% or higher, an adjusted EBITDA3 margin of 40% or higher, and a CAGR in total contracted capacity of 30% or higher. The JPY 10 billion investment target in grid-scale batteries announced in the previous consolidated fiscal year is scheduled to be completed by the fiscal year ending July 31, 2028, and is therefore not included in the newly announced medium-term management targets. The fiscal year ending July 31, 2027 is positioned as an important year for advancing initiatives toward achieving these medium-term management targets. (For details of the medium-term management targets, please refer to the presentation materials for full-year financial results, released today.) Accordingly, for the fiscal year ending July 31, 2027, the Company forecasts net sales of JPY 7,967 million (up 12.0% year on year), operating profit of JPY 2,865 million (down 5.0% year on year), adjusted EBITDA3 of JPY 3,185 million (up 4.5% year on year), ordinary profit of JPY 2,394 million (down 17.7% year on year), and profit attributable to owners of parent of JPY 1,673 million (down 17.9% year on year). 2. Basic Approach to the Selection of Accounting Standards The Group intends to prepare its consolidated financial statements in accordance with Japanese GAAP for the time being, taking into consideration comparability between reporting periods and among companies. The Group will respond appropriately to the adoption of International Financial Reporting Standards (IFRS), in light of developments in Japan and overseas. 3 Adjusted EBITDA: EBITDA (operating profit, depreciation and amortization) plus stock-based compensation expenses 4
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3. Consolidated Financial Statements and Key Notes (1) Consolidated Balance Sheet (Unit: Thousands of yen) As of July 31, 2025 As of July 31, 2026 Assets Current assets Cash and deposits 4,648,319 6,295,821 Accounts receivable - trade 1,315,823 2,116,370 Contract assets 52,022 118,240 Accounts receivable - other 9,766,052 15,154,434 Other 774,420 1,148,254 Allowance for doubtful accounts (24,230) (68,065) Total current assets 16,532,406 24,765,056 Non-current assets Property, plant and equipment Land 74,705 364,969 Construction in progress 4,211 4,022,776 Other, net 28,509 67,533 Total property, plant and equipment 107,426 4,455,279 Intangible assets 40,314 37,220 Investments and other assets Deposits 903,416 900,000 Deferred tax assets 158,830 228,496 Other 101,216 530,048 Allowance for doubtful accounts (26,042) (98,879) Total investments and other assets 1,137,421 1,559,666 Total non-current assets 1,285,161 6,052,166 Total assets 17,817,568 30,817,222 Liabilities Current liabilities Accounts payable - trade 575,059 2,298,890 Short-term borrowings 260,000 7,850,000 Current portion of long-term borrowings 353,560 170,812 Accounts payable - other 5,400,338 7,289,576 Income taxes payable 810,029 572,857 Contract liabilities 1,159 - Provision for bonuses 249,999 268,018 Other 890,781 538,396 Total current liabilities 8,540,928 18,988,550 Non-current liabilities Long-term borrowings 999,400 1,273,588 Other - 18,907 Total non-current liabilities 999,400 1,292,495 Total liabilities 9,540,328 20,281,045 Net assets Shareholders' equity Share capital 1,139,500 1,242,883 Capital surplus 3,683,191 3,786,573 Retained earnings 3,454,548 5,492,221 Total shareholders' equity 8,277,240 10,521,677 Share acquisition rights - 8,779 Non-controlling interests - 5,719 Total net assets 8,277,240 10,536,176 Total liabilities and net assets 17,817,568 30,817,222 5
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(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income (Unit: Thousands of yen) Fiscal year ended July 31, 2025 Fiscal year ended July 31, 2026 Net sales 6,153,606 7,113,916 Cost of sales 1,573,223 1,320,356 Gross profit 4,580,383 5,793,560 Selling, general and administrative expenses 1,837,663 2,775,789 Operating profit 2,742,720 3,017,771 Non-operating income Interest income 2,435 14,413 Penalty income 7,853 10,191 Gain on capacity contribution settlement - 133,231 Other 1,623 1,817 Total non-operating income 11,913 159,653 Non-operating expenses Interest expenses 81,334 71,045 Commission expenses 15,053 188,419 Listing expenses 34,726 - Other 9,409 8,435 Total non-operating expenses 140,524 267,900 Ordinary profit 2,614,109 2,909,525 Extraordinary income Gain on reversal of share acquisition rights 160 - Total extraordinary income 160 - Extraordinary losses Loss on valuation of investment securities 43,834 - Total extraordinary losses 43,834 - Profit before income taxes 2,570,434 2,909,525 Income taxes - current 808,100 941,798 Income taxes - deferred (107,710) (69,665) Total income taxes 700,390 872,132 Profit 1,870,044 2,037,393 Loss attributable to non-controlling interests - (280) Profit attributable to owners of parent 1,870,044 2,037,673 Consolidated Statement of Comprehensive Income (Unit: Thousands of yen) Fiscal year ended July 31, 2025 Fiscal year ended July 31, 2026 Profit 1,870,044 2,037,393 Comprehensive income 1,870,044 2,037,393 Comprehensive income attributable to Owners of parent 1,870,044 2,037,673 Non-controlling interests - (280) 6
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(3) Consolidated Statement of Changes in Equity Fiscal year ended July 31, 2025 (From August 1, 2024 to July 31, 2025) (Unit: Thousands of yen) Shareholders’ equity Share acquisition rights Total net assets Share capital Capital surplus Retained earnings Total shareholders’ equity Balance at beginning of period 50,000 2,593,690 1,584,503 4,228,194 160 4,228,354 Changes during period Issuance of new shares 1,089,500 1,089,500 2,179,001 2,179,001 Profit attributable to owners of parent 1,870,044 1,870,044 1,870,044 Net changes in items other than shareholders’ equity (160) (160) Total changes during period 1,089,500 1,089,500 1,870,044 4,049,046 (160) 4,048,885 Balance at end of period 1,139,500 3,683,191 3,454,548 8,277,240 - 8,277,240 Fiscal year ended July 31, 2026 (From August 1, 2025 to July 31, 2026) (Unit: Thousands of yen) Shareholders’ equity Share acquisition rights Non- controlling interests Total net assets Share capital Capital surplus Retained earnings Total shareholders’ equity Balance at beginning of period 1,139,500 3,683,191 3,454,548 8,277,240 - - 8,277,240 Changes during period Issuance of new shares (exercise of share acquisition rights) 103,382 103,382 206,764 206,764 Profit attributable to owners of parent 2,037,673 2,037,673 2,037,673 Net changes in items other than shareholders’ equity 8,779 5,719 14,499 Total changes during period 103,382 103,382 2,037,673 2,244,437 8,779 5,719 2,258,936 Balance at end of period 1,242,883 3,786,573 5,492,221 10,521,677 8,779 5,719 10,536,176 7
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(4) Consolidated Statement of Cash Flows (Unit: Thousands of yen) Fiscal year ended July 31, 2025 Fiscal year ended July 31, 2026 Cash flows from operating activities Profit before income taxes 2,570,434 2,909,525 Depreciation 12,758 20,739 Increase (decrease) in allowance for doubtful accounts 41,905 116,671 Increase (decrease) in provision for bonuses 189,999 18,018 Interest income (2,435) (14,413) Interest expenses 81,334 71,045 Listing expenses 34,726 - Loss (gain) on valuation of investment securities 43,834 - Decrease (increase) in trade receivables (563,234) (800,547) Decrease (increase) in accounts receivable - other (4,753,873) (5,388,382) Decrease (increase) in other current assets 200,548 (432,884) Decrease (increase) in deposits (300,000) 3,416 Increase (decrease) in trade payables 220,655 1,723,830 Increase (decrease) in accounts payable - other 2,067,562 1,882,962 Increase (decrease) in other current liabilities 769,849 (361,496) Decrease (increase) in other non-current assets (67,317) (372,035) Other, net 2,649 8,491 Subtotal 549,398 (615,058) Interest received 2,435 14,413 Interest paid (80,417) (78,936) Income taxes paid (150,177) (1,170,294) Net cash provided by (used in) operating activities 321,238 (1,849,876) Cash flows from investing activities Purchase of property, plant and equipment (93,782) (4,341,052) Purchase of investment securities (50,600) (60,001) Other (36,930) 4,228 Net cash provided by (used in) investing activities (181,313) (4,396,825) Cash flows from financing activities Net increase (decrease) in short-term borrowings (2,668,541) 7,590,000 Proceeds from long-term borrowings 1,100,000 445,000 Repayments of long-term borrowings (47,040) (353,560) Proceeds from issuance of shares 2,179,001 - Payments of listing expenses (34,726) - Proceeds from exercise of share options - 206,764 Other - 6,000 Net cash provided by (used in) financing activities 528,693 7,894,204 Net increase (decrease) in cash and cash equivalents 668,619 1,647,502 Cash and cash equivalents at beginning of period 3,979,699 4,648,319 Cash and cash equivalents at end of period 4,648,319 6,295,821 8
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(5) Notes on Consolidated Financial Statements Notes on Assumptions of a Going Concern Not applicable. Notes on Segment Information, etc. Segment Information 1. Overview of Reportable Segments The Group’s reportable segments are components of the Group for which separate financial information is available and which are subject to periodic review by the Board of Directors to determine the allocation of management resources and evaluate business performance. The Group formulates business development plans and strategies for each product and service it handles and conducts business activities accordingly. As a result, the Group is organized into product and service segments based on the development and sale of products and services and has three reportable segments: the Power PF Business, RE PF Business, and Power Balancing Business. Considering comprehensive quantitative criteria, the Power Balancing Business is included in “Others” for disclosure purposes. The main products and services of each reportable segment are as follows: (1) Power Platform Business: Electricity trading business excluding renewable energy (2) RE Platform Business: Renewable energy electricity trading business, proxy procurement of non- fossil certificates, etc. (3) Power Balancing Business: Grid-scale batteries business 2. Method of Calculating Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable Segment The accounting methods for the reported business segments are consistent with the accounting policies adopted in preparing the consolidated financial statements. Segment profit is based on operating profit. 3. Information on Net Sales, Profit or Loss, Assets, Liabilities, and Other Items by Reportable Segment, and Breakdown of Revenue Fiscal year ended July 31, 2025 (From August 1, 2024 to July 31, 2025) (Unit: Thousands of yen) Reportable segments Adjustment (Note 2) Amount recorded in consolidated financial statements (Note 3) Power PF RE PF Others (Note 1) Total Net sales Revenue from external customers 4,631,562 449,549 284,146 5,365,258 - 5,365,258 Other revenue 788,923 (575) - 788,348 - 788,348 Total 5,420,486 448,973 284,146 6,153,606 - 6,153,606 Revenue breakdown Revenue from customer contracts 4,631,562 449,549 284,146 5,365,258 - 5,365,258 DGP fee revenue 4,492,671 296,401 2,537 4,791,610 - 4,791,610 Other revenue 138,891 153,147 281,609 573,647 - 573,647 Revenue from sources other than customer contracts (Note 4) 788,923 (575) - 788,348 - 788,348 Total 5,420,486 448,973 284,146 6,153,606 - 6,153,606 Segment profit (loss) 3,529,801 120,431 (245,731) 3,404,501 (661,781) 2,742,720 Notes: 1. “Others” includes the Power Balancing Business and business segments not included in the reportable segments. 2. “Adjustment” consists mainly of corporate expenses. 3. Segment profit is reconciled to operating profit in the consolidated financial statements. 4. “Revenue from sources other than contracts with customers” consists mainly of profits and losses generated by electricity settlements with Transmission System Operators. 5. Segment assets, liabilities, and other items are not presented because they are not reviewed for purposes of determining the allocation of management resources or evaluating business performance. 9
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Fiscal year ended July 31, 2026 (From August 1, 2025 to July 31, 2026) (Unit: Thousands of yen) Reportable segments Adjustment (Note 2) Amount recorded in consolidated financial statements (Note 3) Power PF RE PF Others (Note 1) Total Net sales Revenue from external customers 4,080,731 810,932 518,010 5,409,674 - 5,409,674 Other revenue 1,803,678 (99,435) - 1,704,242 - 1,704,242 Total 5,884,409 711,496 518,010 7,113,916 - 7,113,916 Revenue breakdown Revenue from customer contracts 4,080,731 810,932 518,010 5,409,674 - 5,409,674 DGP fee revenue 3,881,714 632,679 - 4,514,394 - 4,514,394 Other revenue 199,016 178,252 518,010 895,280 - 895,280 Revenue from sources other than customer contracts (Note 4) 1,803,678 (99,435) - 1,704,242 - 1,704,242 Total 5,884,409 711,496 518,010 7,113,916 - 7,113,916 Segment profit (loss) 3,499,582 370,161 136,445 4,006,188 (988,417) 3,017,771 Notes: 1. “Others” includes the Power Balancing Business and business segments not included in the reportable segments. 2. “Adjustment” consists mainly of corporate expenses. 3. Segment profit is reconciled to operating profit in the consolidated financial statements. 4. “Revenue from sources other than contracts with customers” consists mainly of profits and losses generated by electricity settlements with Transmission System Operators. 5. Segment assets, liabilities, and other items are not presented because they are not reviewed for purposes of determining the allocation of management resources or evaluating business performance. Notes on Per Share Information (Unit: Yen) Fiscal year ended July 31, 2025 Fiscal year ended July 31, 2026 Net assets per share 213.64 251.59 Basic earnings per share 51.46 50.80 Diluted earnings per share 41.38 44.35 Notes: 1. On February 12, 2025, the Company conducted a share split at a ratio of 10 shares for each share of common stock. In addition, on November 1, 2025, the Company conducted a share split at a ratio of six shares for each share of common stock. Net assets per share, basic earnings per share, and diluted earnings per share have been calculated on the assumption that the share splits were effective at the beginning of the previous consolidated fiscal year. 2. The Company was listed on the Tokyo Stock Exchange Growth Section on April 22, 2025. Accordingly, diluted earnings per share for the previous consolidated fiscal year were calculated using the average share price from the listing date through the end of the previous consolidated fiscal year as the average share price during the period. 3. The basis for calculating basic earnings per share and diluted earnings per share is as follows. Fiscal year ended July 31, 2025 Fiscal year ended July 31, 2026 Basic earnings per share Profit attributable to owners of parent (JPY thousands) 1,870,044 2,037,673 Amount not attributable to common shareholders (JPY thousands) - - Profit attributable to owners of parent attributable to common shares (JPY thousand) 1,870,044 2,037,673 Average number of common shares outstanding (shares) 36,343,274 40,112,072 Diluted earnings per share Adjustment to profit attributable to owners of parent (JPY thousand) - - Increase in common shares (shares) 8,852,523 5,838,171 Of which: share acquisition rights (shares) (8,852,523) (5,838,171) Potential shares excluded from the calculation of diluted earnings per share because they had no dilutive effect - 11th series share acquisition rights (298,400 shares of common stock) 10
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Notes on Significant Subsequent Events Loan Agreement with Financial Covenants On July 2, 2026, DIGITAL GRID ASSET MANAGEMENT Corporation, a consolidated subsidiary of the Company, entered into a loan agreement containing financial covenants. (1) Name of the consolidated subsidiary: DIGITAL GRID ASSET MANAGEMENT Corporation (2) Date the loan agreement was entered into: July 2, 2026 (3) Attribute of the counterparty: Operating company (4) Principal amount, repayment date, and collateral (i) Principal amount: JPY 2,000 million (ii) Repayment date: End of June 2028 (iii) Collateral: Yes (5) Financial covenant: DIGITAL GRID Corporation must maintain positive EBITDA in its consolidated financial results for the fiscal year ending July 31, 2027. 11