Interim report
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The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange . This English translation is for your convenience only . If there is any discrepancy between this English translation and the original Japanese version , please refer to the Japanese version . Broadleaf Co. , Ltd. Stock listing : Representative : Consolidated Financial Results for the Second Quarter ( Interim ) of the Fiscal Year Ending December 31 , 2026 [ IFRS ] ( Consolidated ) Scheduled date to commence dividend payments Earnings Supplementary Explanatory Documents Earnings Results Briefing Tokyo Stock Exchange Prime Market Representative Director , President and CEO Kenji Oyama September 10 , 2026 Yes Yes ( For institutional investors and analysts ) FASF August 12 , 2026 ( Amounts of less than JPY one million are rounded ) 1. Consolidated Financial Results for the 2Q ( Interim ) of the Fiscal Year Ending December 31 , 2026 ( January 1 , 2026 - June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( Cumulative ) Revenue Operating profit Profit before tax Interim profit ( Percentages below represent year - on - year changes ) Interim profit attributable to owners of the parent Total comprehensive income Millions of Millions of % % yen 2Q FY2026 10,781 9.8 yen 1,477 91.5 Millions of yen 1,392 Millions of Millions of Millions of % % % % yen yen 132.1 981 140.9 1,001 140.3 yen 994 122.3 2Q FY2025 9,819 16.6 771 600 407 417 447 434.2 2Q FY2026 2Q FY2025 Basic interim earnings per share Diluted interim earnings per share Yen Yen 5.54 5.42 2.32 2.27 ( NOTE ) The Company conducted a 2 - for - 1 stock split of its common shares effective July 1 , 2026. Basic interim earnings per share and diluted interim earnings per share have been calculated assuming the stock split was conducted at the beginning of the previous consolidated fiscal year . ( 2 ) Consolidated Financial Position Total assets Total equity Millions of yen Millions of yen 2Q FY2026 FY2025 43,010 25,146 41,425 24,293 2. Dividends FY2025 FY2026 FY2026 ( forecast ) Equity attributable to owners of the parent Percentage of equity attributable to owners of the parent Millions of yen % 25,145 58.5 24,271 58.6 End of 1Q Interim Dividend per share End of 3Q Year - end Total Yen Yen Yen Yen Yen 2.50 3.50 6.00 7.50 4.00 ( NOTE ) 1. Revisions to the most recently announced dividend forecasts : None 2. The Company conducted a 2 - for - 1 stock split of its common shares effective July 1 , 2026. The year - end dividend per share for FY2026 ( forecast ) is stated as the amount after considering the stock split . The total annual dividend per share for FY2026 ( forecast ) is not stated because the interim dividend and year - end dividend cannot be simply aggregated due to the stock split . Without considering the stock split , the year - end dividend per share for FY2026 ( forecast ) would be 8.00 yen , and the total annual dividend would be 15.50 yen . 3. Forecast of Consolidated Financial Results for FY2026 ( From January 1 , 2026 to December 31 , 2026 ) ( Percentage below represents increase ( decrease ) from the same period of previous year ) Profit attributable to owners of the parent Millions of yen Revenue Operating profit Profit before tax Full - year Millions of yen 23,800 % 14.3 Millions of yen 4,800 % 132.7 Millions of yen 4,750 % 156.2 ( NOTE ) 1. Revisions to the most recently announced earnings forecasts : Yes % 3,200 158.0 Basic earnings per share Yen 17.68 2. The Company conducted a 2 - for - 1 stock split of its common shares effective July 1 , 2026. Basic earnings per share for the full year in the consolidated earnings forecast for FY2026 reflects the impact of the stock split .
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- 2 - ※ Notes (1) Changes in significant subsidiaries during the current period (changes in specified subsidiaries with changes in the scop e of consolidation): None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies other than the above: None (iii) Changes in accounting estimates: None (3) Number of shares outstanding (common stock) (i) Number of shares outstanding (including treasury shares) 2Q FY2026 195,793,600 Shares FY2025 195,793,600 Shares (ii) Number of shares of treasury shares 2Q FY2026 14,607,542 Shares FY2025 15,609,582 Shares (iii) Average number of shares outstanding (during the period) 2Q FY2026 180,811,793 Shares 2Q FY2025 179,462,539 Shares (NOTE) The Company conducted a 2-for-1 stock split of its common shares effective July 1, 2026. The number of shares outstanding (common stock) has been calculated assuming the stock split was conducted at the beginning of the previous consolidated fiscal year. ※ The financial results for the 2Q (interim term) are not subject to review by a certified public accountant or an auditing f irm. ※ Comments regarding appropriate usage of earnings forecasts, and other special notes (Notes on forward-looking statements) The forward-looking statements such as earnings forecasts contained in this document are based on the information currently available to Broadleaf Co., Ltd. Group (hereinafter “the Group”) and certain assumptions which are regarded as legitimate. The Group makes no warranty as to the achievability of what is described in the statements. Actual results may differ from these forecasts due to various factors . (Availability of earnings supplementary explanatory documents and information on earnings results briefings) The Group plans to hold a live webcast presentation for institutional investors and analysts on Wednesday, August 12, 2026. The materials used at the meeting will be posted on its website.
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- 3 - Table of Contents 1. Overview of Operating Results, etc………………………………………………………………………………………………………………………………… 4 (1) Overview of Operating Results for the Interim Period ………………………………………………………………………………………………………… 4 (2) Overview of Financial Position for the Interim Period ………………………………………………………………………………………………………… 5 (3) Explanation of Consolidated Earnings Forecasts and Other Forward -Looking Information……………………………………………………………… …. 5 2. Condensed Interim Consolidated Financial Statements and Major Notes …………………………………………………………………………………… ….… 6 (1) Condensed Interim Consolidated Statement of Financial Position ………………………………………………………………………………………… …. 6 (2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income………………… 7 (3) Condensed Interim Consolidated Statement of Changes in Equity ……………………………………………………………………………………………. 9 (4) Condensed Interim Consolidated Statement of Cash Flows …………………………………………………………………………………………………… 11 (5) Notes to Condensed Interim Consolidated Financial Statements ……………………………………………………………………………………………… 13 (Notes on the going concern) ………………………………………………………………………………………………………………………………. 13 (Segment Information) ……………………………………………………………………………………………………………………………………... 13 (Significant Subsequent Events) ……………………………………………………………………………………………………………………………. 13
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- 4 - 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Interim Period During the current interim consolidated accounting period (January 1, 2026 to June 30, 2026), the Japanese economy continued to recover moderately , with personal consumption and capital investment remaining firm against the backdrop of improvements in employment and income cond itions. However, the outlook for the economy remains uncertain, as tensions in the Middle East persist and the effects of yen depreciation, elevated prices, and rising interest rates warran t continued attention. The domestic information services industry, in which the Group operates, remained solid, supported by continued corporate inv estment in DX (digital transformation). Demand for digitalization continues to grow, encompassing not only automation aimed at addr essing chronic labor shortages and improving productivity, but also the proactive use of AI and data to strengthen competitiveness and create new business opportunities. Against this favorable backdrop, the Group is working as a “digital infrastructure company supporting the mobility industry” to enhance the added value of its platform services, which underpin business -to-business networks. Specifically, the Group is accel erating the adoption of its core cloud software while focusing on increasing the number of companies using its automotive aftermarket parts marketplace. In addition, with a view to developing new services that leverage the data it holds, the Group is advancing research and development in the field of Physical AI. As a result of these initiatives, Cloud services sales for the interim period under review increased by 29.7% year on year, d riven by growth in the number of customers using cloud software. Meanwhile, Packaged system sales decreased by 15.3% year on year a s customers continued to steadily transition from packaged software to cloud software. Sales in the Others category decreased by 11.1% year on year as replacement demand for PCs, which had been driven by security upgrades and other factors, subsided after a peak. Although customers’ transition to cloud software changes the revenue mix between Cloud services and Packaged system, it contributes to growth in overall revenue. This contribution to revenue growth is expected to continue until the pl anned transition to cloud software is completed. In addition, the Group pursued cost optimization by actively incorporating generative AI into sales activities and developmen t and administrative operations to further improve business processes. At the same time, the Group stepped up advertising and sales activities to acquire new customers and strengthened its IT infrastructure to enhance security and processing performance, with the aim of further increasing the added value of its plat form services. As a result, the Group’s operating results for the interim period under review were as follows: revenue was 10,781 million ye n (up 9.8% year on year), operating profit was 1,477 million yen (up 91.5% year on year), profit before tax was 1,392 million yen ( up 132.1% year on year), and interim profit attributable to owners of the parent was 1,001 million yen (up 140.3% year on year). The Group operates in a single segment, the IT services business. The breakdown of revenue by service category is as follows . (Millions of yen) Classification Previous interim consolidated accounting period (From January 1, 2025 to June 30, 2025) Current interim consolidated accounting period (From January 1, 2026 to June 30, 2026) YoY change Cloud services 5,336 6,923 29.7% Packaged system 3,002 2,541 -15.3% Others 1,481 1,317 -11.1% Total 9,819 10,781 9.8% Cloud services This category consists of usage fees for subscription -based software, including the cloud-based “.c Series,” and fees associated with automotive aftermarket parts transaction platforms. Packaged system This category consists of sales of packaged software (through lease sales or lump -sum sales) for mobile phone shops, travel agencies, bus operators, machinery and tool trading companies, and manufacturers, as well as fees for various services necessary to use packaged software. Others This category consists of sales of hardware products, such as PCs, and supplies.
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- 5 - (2) Overview of Financial Position for the Interim Period (1) Analysis of financial condition (Assets) Assets at the end of the current interim consolidated accounting period increased by 1,586 million yen from the end of the pr evious consolidated fiscal year to 43,010 million yen. Current assets decreased by 339 million yen to 8,125 million yen, while non-current assets increased by 1,925 million yen to 34,885 million yen. The main factors for the decrease in current assets were a decrease of 361 million yen in cash and cash equivalents and a dec rease of 136 million yen in trade and other receivables, despi te an increase of 281 million yen in other current assets. The main factors for the increase in non -current assets were an increase of 1,004 million yen in property, plant and equipment and an increase of 931 million yen in intangible assets. (Liabilities) Liabilities at the end of the current interim consolidated accounting period increased by 732 million yen from the end of the previous consolidated fiscal year to 17,864 million yen. Current liabilities increased by 135 million yen to 15,480 million yen, while non-current liabilities increased by 596 million yen to 2,384 million yen. The main factors for the increase in current liabilities were an increase of 248 million yen in contract liabilities and an increase of 185 million yen in income taxes payable, despite a decrease of 325 million yen in other current liabilities. The increase in non -current liabilities was mainly attributable to an increase of 597 million yen in long-term interest-bearing debt. (Equity) Equity at the end of the current interim consolidated accounting period increased by 854 million yen from the end of the prev ious consolidated fiscal year to 25,146 million yen. The main factors for the increase in equity were an increase of 686 million ye n in retained earnings, a decrease of 138 million yen in treasury shares, and an increase of 118 million yen in capital surplus, despite a decrease of 69 million yen in other components of eq uity. (2) Analysis of cash flows Cash and cash equivalents (hereinafter referred to as 'cash') at the end of the current interim consolidated accounting perio d decreased by 361 million yen from the end of the previous consolidated fiscal year to 3,761 million yen. The status and factors of each cash flow during the current interim consolidated accounting period are as follows. (Cash flows from operating activities) Net cash provided by operating activities was 3,055 million yen (up 43.7% year-on-year). The main reasons were depreciation and amortization expenses of 1,749 million yen and interim profit before tax of 1,392 million yen, despite an increase in prepaid expenses of 285 million yen. (Cash flows from investing activities) Cash used in investing activities was 2,252 million yen (a year -on-year decrease of 0.9%). This was mainly due to expenditures of 2,232 million yen for the acquisition of intangible assets. (Cash flows from financing activities) Cash used in financing activities was 1,164 million yen (up 109.3% year-on-year). This was mainly due to repayments of long-term loans payable of 1,408 million yen, repayments of lease liabilities of 420 million yen, and cash dividends paid of 315 million yen, despite a net increase in short-term loans payable of 1,000 million yen. (3) Explanation of Consolidated Earnings Forecasts and Other Forward -Looking Information Regarding the consolidated earnings forecast for the current consolidated fiscal year (January 1, 2026 to December 31, 2026), revenue has been revised upward by 300 million yen from the previous forecast (announced on February 12, 2026) to 23,800 million y en. Operating profit is forecast at 4,800 million yen, profit before tax at 4,750 million yen, and profit attributable to owners of the parent at 3,200 million yen, all unchanged from the previous forecast. The transition from packaged software to cloud software by customers is expected to continue to progress steadily. In additio n, sales of packaged software to customers in non-mobility industries are expected to remain solid, and demand for PCs used to operate the Company’s software is expected to re main at the same level as in the previous fiscal year. Taking these factors into account, the Company forecasts revenue of 23,800 million yen for the current consolidated fiscal year. Although revenue has been revised upward by 300 million yen from the previous forecast, this is mainly due to hardware sales, primarily PCs, and the contribution to profit is expected to be limited. Therefore, the forecasts for operating profit, profit bef ore tax, and profit attributable to owners of the parent for the current consolidated fiscal year remain unchanged from the previous forecast. Forward-looking statements, including the earnings forecasts contained in this document, are based on management’s judgments in light of information currently available to the Company. Please refrain from placing undue reliance on these forecasts .
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- 6 - 2. Condensed Interim Consolidated Financial Statements and Major Notes (1) Condensed Interim Consolidated Statement of Financial Position (Thousands of yen) Previous consolidated fiscal year (December 31, 2025) Current interim consolidated accounting period (June 30, 2026) Assets Current assets Cash and cash equivalents 4,121,331 3,760,691 Trade and other receivables 3,707,689 3,572,070 Inventories 325,793 201,896 Other financial assets 3,000 3,000 Other current assets 306,285 587,131 Total current assets 8,464,097 8,124,788 Non-current assets Property, plant and equipment 914,485 1,918,482 Goodwill 11,167,691 11,167,691 Intangible assets 18,561,141 19,492,364 Investments accounted for using the equity method 0 0 Other financial assets 901,490 881,549 Other non-current assets 141,129 143,594 Deferred tax assets 1,274,548 1,281,627 Total non-current assets 32,960,485 34,885,307 Total assets 41,424,583 43,010,095 Liabilities and equity Liabilities Current liabilities Trade and other payables 2,707,875 2,719,669 Contract liabilities 8,389,084 8,637,463 Short-term interest-bearing debts 3,073,687 3,088,389 Income taxes payable 247,327 432,426 Other current liabilities 926,176 601,639 Total current liabilities 15,344,149 15,479,584 Non-current liabilities Long-term interest-bearing debts 1,383,871 1,980,549 Retirement benefit obligations 231,517 238,926 Provisions 137,090 137,136 Other non-current liabilities 35,116 27,426 Total non-current liabilities 1,787,593 2,384,037 Total liabilities 17,131,742 17,863,622 Equity Capital stock 7,147,905 7,147,905 Capital surplus 7,615,311 7,733,601 Treasury shares -2,687,824 -2,549,526 Retained earnings 11,297,136 11,983,177 Other components of equity 898,625 829,689 Total equity attributable to owners of the parent 24,271,153 25,144,846 Non-controlling interests 21,688 1,628 Total equity 24,292,841 25,146,473 Total liabilities and equity 41,424,583 43,010,095
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- 7 - (2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income (Condensed Interim Consolidated Statement of Profit or Loss ) (Thousands of yen) Previous interim consolidated accounting period (From January 1, 2025 to June 30, 2025) Current interim consolidated accounting period (From January 1, 2026 to June 30, 2026) Revenue 9,819,314 10,781,239 Cost of sales -3,448,352 -3,389,662 Gross profit 6,370,962 7,391,577 Selling, general and administrative expenses -5,595,853 -5,928,176 Other operating income 17,761 15,842 Other operating expenses -21,537 -2,192 Operating profit 771,333 1,477,051 Finance income 10,836 8,377 Finance costs -87,264 -92,990 Share of profit (loss) of entities accounted for using the equity method (- indicates loss) -95,076 - Interim profit before tax 599,829 1,392,438 Income tax -192,506 -411,333 Interim profit 407,323 981,105 Interim profit attributable to Owners of the parent 416,636 1,001,165 Non-controlling interests -9,313 -20,060 Interim profit 407,323 981,105 Interim earnings per share Basic interim earnings per share (yen) 2.32 5.54 Diluted interim earnings per share (yen) 2.27 5.42 (NOTE) The Company conducted a 2-for-1 stock split of its common shares effective July 1, 2026. Basic interim earnings per share and diluted interim earnings per share have been calculated assuming the stock split was conducted at the beginning of the previous consolidated fiscal year.
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- 8 - (Condensed Interim Consolidated Statement of Comprehensive Income) (Thousands of yen) Previous interim consolidated accounting period (From January 1, 2025 to June 30, 2025) Current interim consolidated accounting period (From January 1, 2026 to June 30, 2026) Interim profit 407,323 981,105 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of equity instruments measured at fair value through other comprehensive income 22,354 13,218 Total items that will not be reclassified to profit or loss 22,354 13,218 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 17,516 -71 Total items that may be reclassified to profit or loss 17,516 -71 Total other comprehensive income, net of tax 39,871 13,146 Interim comprehensive income 447,193 994,251 Interim comprehensive income attributable to Owners of the parent 456,507 1,014,311 Non-controlling interests -9,313 -20,060 Interim comprehensive income 447,193 994,251
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- 9 - (3) Condensed Interim Consolidated Statement of Changes in Equity Previous interim consolidated accounting period (From January 1, 2025 to June 30, 2025) (Thousands of yen) Equity attributable to owners of the parent Capital stock Capital surplus Treasury shares Retained earnings Other components of equity Warrants Restricted Stock Balance as of January 1, 2025 7,147,905 7,558,945 -2,926,532 10,407,827 957,589 -13,294 Interim profit - - - 416,636 - - Other comprehensive income - - - - - - Total interim comprehensive income - - - 416,636 - - Purchase of treasury shares - - -28 - - - Disposal of treasury shares - 101,075 238,773 - -289,482 -56,000 Dividends - - - -178,432 - - Share-based payment transactions - - - 33,718 109,239 27,293 Changes in ownership interests in subsidiaries that do not result in loss of control - -44,709 - - - - Transfer from other components of equity to retained earnings - - - 2,471 - - Total transactions with owners - 56,366 238,745 -142,242 -180,243 -28,706 Balance as of June 30, 2025 7,147,905 7,615,311 -2,687,788 10,682,221 777,346 -42,000 (Thousands of yen) Equity attributable to owners of the parent Non-controlling interests Total equity Other components of equity Total Exchange differences on translation of foreign operations Net change in fair value of equity instruments measured at fair value through other comprehensive income Total Balance as of January 1, 2025 -47,732 56,814 953,378 23,141,522 1,870 23,143,393 Interim profit - - - 416,636 -9,313 407,323 Other comprehensive income 17,516 22,354 39,871 39,871 - 39,871 Total interim comprehensive income 17,516 22,354 39,871 456,507 -9,313 447,193 Purchase of treasury shares - - - -28 - -28 Disposal of treasury shares - - -345,482 -5,635 - -5,635 Dividends - - - -178,432 - -178,432 Share-based payment transactions - - 136,533 170,251 - 170,251 Changes in ownership interests in subsidiaries that do not result in loss of control - - - -44,709 44,709 - Transfer from other components of equity to retained earnings - -2,471 -2,471 - - - Total transactions with owners - -2,471 -211,421 -58,553 44,709 -13,844 Balance as of June 30, 2025 -30,216 76,697 781,828 23,539,477 37,266 23,576,743
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- 10 - Current interim consolidated accounting period (From January 1, 2026 to June 30, 2026) (Thousands of yen) Equity attributable to owners of the parent Capital stock Capital surplus Treasury shares Retained earnings Other components of equity Warrants Restricted Stock Balance as of January 1, 2026 7,147,905 7,615,311 -2,687,824 11,297,136 876,261 -14,000 Interim profit - - - 1,001,165 - - Other comprehensive income - - - - - - Total interim comprehensive income - - - 1,001,165 - - Disposal of treasury shares - 118,290 138,298 - -200,588 -56,000 Dividends - - - -315,322 - - Share-based payment transactions - - - 198 146,505 28,000 Total transactions with owners - 118,290 138,298 -315,124 -54,083 -28,000 Balance as of June 30, 2026 7,147,905 7,733,601 -2,549,526 11,983,177 822,178 -42,000 (Thousands of yen) Equity attributable to owners of the parent Non-controlling interests Total equity Other components of equity Total Exchange differences on translation of foreign operations Net change in fair value of equity instruments measured at fair value through other comprehensive income Total Balance as of January 1, 2026 -29,484 65,848 898,625 24,271,153 21,688 24,292,841 Interim profit - - - 1,001,165 -20,060 981,105 Other comprehensive income -71 13,218 13,146 13,146 - 13,146 Total interim comprehensive income -71 13,218 13,146 1,014,311 -20,060 994,251 Disposal of treasury shares - - -256,588 - - - Dividends - - - -315,322 - -315,322 Share-based payment transactions - - 174,505 174,704 - 174,704 Total transactions with owners - - -82,082 -140,618 - -140,618 Balance as of June 30, 2026 -29,555 79,066 829,689 25,144,846 1,628 25,146,473
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- 11 - (4) Condensed Interim Consolidated Statement of Cash Flows (Thousands of yen) Previous interim consolidated accounting period (From January 1, 2025 to June 30, 2025) Current interim consolidated accounting period (From January 1, 2026 to June 30, 2026) Cash flows from operating activities Interim profit before tax 599,829 1,392,438 Depreciation and amortization expense 1,609,745 1,748,654 Share-based payment expense 157,839 146,795 Finance income and finance costs (-indicates income) 76,428 84,613 Share of loss (profit) of entities accounted for using the equity method (-indicates profit) 95,076 - Decrease (increase) in trade and other receivables (-indicates increase) -190,925 135,619 Decrease (increase) in inventories (-indicates increase) -97,931 123,897 Increase (decrease) in trade and other payables (-indicates decrease) -119,531 -22,115 Decrease (increase) in prepaid expenses (-indicates increase) -129,855 -285,314 Decrease (increase) in long-term prepaid expenses (-indicates increase) 43,154 22,410 Increase (decrease) in employees' bonuses payable (-indicates decrease) -4,441 -178,986 Increase (decrease) in contract liabilities (-indicates decrease) 497,662 248,378 Increase (decrease) in accrued consumption taxes (-indicates decrease) -146,494 -108,932 Others -25,995 12,820 Subtotal 2,364,561 3,320,276 Interest received 1,446 4,497 Dividend received 3,098 3,872 Interest paid -26,167 -32,308 Income taxes paid or refunded (-indicates payment) -217,122 -241,192 Cash flows from operating activities 2,125,816 3,055,146 Cash flows from investing activities Purchase of property, plant and equipment -7,258 -9,036 Payments for purchase of intangible assets -2,267,891 -2,231,982 Loan advances -3,000 -9,007 Collection of loans receivable 2,291 3,181 Payments of leasehold and guarantee deposits -3,264 -7,260 Proceeds from refund of leasehold and guarantee deposits 460 591 Proceeds from distributions from investment partnerships 5,440 1,560 Cash flows from investing activities -2,273,223 -2,251,954
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- 12 - (Thousands of yen) Previous interim consolidated accounting period (From January 1, 2025 to June 30, 2025) Current interim consolidated accounting period (From January 1, 2026 to June 30, 2026) Cash flows from financing activities Net increase (decrease) in short-term borrowings (-indicates decrease) 990,000 1,000,000 Proceeds from long-term borrowings 496,500 - Repayments of long-term borrowings -1,438,408 -1,407,602 Repayments of lease liabilities -422,079 -420,370 Dividends paid -178,432 -315,322 Purchase of treasury shares -28 - Expenses related to commitment lines -3,645 -20,518 Cash flows from financing activities -556,092 -1,163,812 Effect of exchange rate changes on cash and cash equivalents 19,313 -19 Net increase (decrease) in cash and cash equivalents (-indicates decrease) -684,186 -360,639 Cash and cash equivalents at beginning of period 4,305,936 4,121,331 Cash and cash equivalents at end of interim period 3,621,750 3,760,691
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- 13 - (5) Notes to Condensed Interim Consolidated Financial Statements (Notes on the Going Concern) Not applicable. (Segment Information) This information is omitted because the Group has a single reportable segment, the IT services business. (Significant Subsequent Events) (Stock split and partial amendment to the Articles of Incorporation in connection with the stock split) Based on a resolution adopted at a meeting of the Board of Directors held on May 20, 2026 , the Company implemented a stock split and a partial amendment to the Articles of Incorporation in connection with the split, effective July 1, 2026. 1. Purpose of the stock split The purpose is to enhance the liquidity of the Company's shares and expand the investor base by lowering the price per invest ment unit. 2. Overview of the stock split (1) Method of the split Each share of common stock held by shareholders recorded in the shareholder registry as of June 30, 2026 was split at a ratio of 2 shares for every 1 share. (2) Number of shares increased by the split (i) Total number of issued shares before the stock split: 97,896,800 shares (ii) Number of shares increased by this split: 97,896,800 shares (iii) Total number of issued shares after the stock split: 195,793,600 shares (iv) Total number of authorized shares after the stock split: 640,000,000 shares 3. Schedule of the split (1) Record date announcement date: June 15, 2026 (2) Record date: June 30, 2026 (3) Effective date: July 1, 2026 4. Effect on per share information Per share information assuming that the stock split had been conducted at the beginning of the previous consolidated fiscal y ear is presented in "(2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income (Condensed Interim Consolidated Statements of Profit or Loss)." 5. Partial amendment to the Articles of Incorporation in connection with the stock split (1) Reason for the amendment to the Articles of Incorporation In connection with this stock split, the total number of authorized shares set forth in Article 6 of the Company's Articles o f Incorporation was amended by a resolution of the Board of Directors pursuant to Article 184, Paragraph 2 of the Companies Act. (2) Details of the amendment to the Articles of Incorporation The details of the amendment are as follows. (Underlined portions indicate changes) Current Articles of Incorporation After the change (Total Number of Authorized Shares) Article 6: The total number of authorized shares of the Company shall be 320,000,000 shares. (Total Number of Authorized Shares) Article 6: The total number of authorized shares of the Company shall be 640,000,000 shares. (3) Schedule (i) Date of Board of Directors resolution: May 20, 2026 (ii) Effective date of the amendment to the Articles of Incorporation: July 1, 2026