Slides
Page 1
Ⓒ I’ll Inc. 0 Outline of Consolidated Financial Results for FY7/26 September 7, 2026 I'LL INC. (3854.T) Note : This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Page 2
Ⓒ I’ll Inc. 1 Disclaimer concerning forward-looking statements The forward-looking statements including business forecasts stated in this document are based on information available to the Company at the present time and certain assumptions(suppositions)judged to be rational, and these statements do not purport to be a promise by the Company to achieve such results. Actual business results, etc. include, but are not limited to, the domestic and overseas economic situation, demand in the IT services market, competition with competitors, and changes in taxation and other systems. Note that the Company will not always revise business forecasts, etc. upon every occurrence of new information or event.
Page 3
Ⓒ I’ll Inc. 2Ⓒ I’ll Inc. Key Figures for Understanding I’LL Net sales ¥20.8 B OP ¥5.5 B OPM 26.6% ROE 33.2% Equity ratio 77% Recurring GP coverage of SG&A 86% FY7/26 Results Strong foundation for growth +8.3% YoY +15.5% YoY +1.7pp YoY
Page 4
Ⓒ I’ll Inc. 3Ⓒ I’ll Inc. 10-Year Net Sales and Profit Growth *CAGR： Compound Annual Growth Rate 0 5,0 00 10, 000 15, 000 20, 000 25, 000 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 Net sales CAGR* 10.3% OP CAGR* 32.8% OPM 5.0%→ 26.6% Our forward-looking strategy drove 2.4x growth in sales and 12.9x growth in OP over 10 fiscal years. Net Sales Operating Profit(OP) (JPY million) (JPY million) Note: Accounting Standard for Revenue Recognition applied from FY7/22; different accounting basis for FY7/21 and earlier.
Page 5
Ⓒ I’ll Inc. 4Ⓒ I’ll Inc. 10-Year Shift Toward Stable Profit Generation Note: Accounting Standard for Revenue Recognition applied from FY7/22; different accounting basis for FY7/21 and earlier. The shift to recurring revenue has enabled stable and sustainable earnings. 0 1,0 00 2,0 00 3,0 00 4,0 00 5,0 00 6,0 00 7,0 00 8,0 00 9,0 00 10, 000 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 Recurring Revenue Recurring Gross profit(GP) 11 Consecutive Years Share of Recurring Revenue in Net Sales 35.9%→ 44.5% of Meeting Initial OP Guidance 0 Downward Revisions 8 Consecutive Years of Dividend Increases (JPY million) (JPY million)
Page 6
Ⓒ I’ll Inc. 5 Index 01 Consolidated Financial Results Summary p. 8 03 Future Vision p. 36 02 Three-year Rolling Plan(FY7/27–FY7/29) p. 27
Page 7
Ⓒ I’ll Inc. 6 System Solutions Business (p. 13) • Achieved growth driven by larger-scale projects, steady project execution. • YoY growth appeared slower due to continued server delivery delays, but full-year sales and GP both increased. • The impact of the situation in the Middle East has not yet become apparent in either orders or sales. Key point 1: FY7/26 Results Strong execution of large-scale projects drove record-high sales and profit, marking the 11th consecutive year of OP growth. I. Review II. Growth Investments (HR, R&D, Internal Systems) Net Sales Operating Profit(OP) (JPY million) (JPY million) Online Solutions Business (p. 15) • Sustained new customer acquisition drove sales and OP growth. Performance is tracking in line with our plan. • In CROSS business, average selling price rose YoY , driven by the strategic shift toward higher-end segments initiated last fiscal year. • R&D expenses rose by ¥85M (+92.3% YoY). • Proactively adopted AI tools and updated internal policies. – Launched internal projects focused on three pillars: operational efficiency, digital transformation, and programming efficiency, to accelerate practical AI application. • Total personnel expenses (COS + SG&A) rose by ¥715M (+9.0% YoY). • Hired 61 new graduates and 29 experienced professionals during the fiscal year. 17,508 19,294 20,889 FY7/24 FY7/25 FY7/26 4,263 4,818 5,565 24.4% 25.0% 26.6% FY7/24 FY7/25 FY7/26
Page 8
Ⓒ I’ll Inc. 7 Key point 2: FY7/27 Plan We will lay the foundation for our transition into an industrial platform provider by stepping up investment in human capital, product enhancement, and internal systems. FY7/26 Actual FY7/27 Plan 5,565 5,000 1,100 -700 GP Growth from Higher Net Sales Personnel Costs (COS+SG&A) -500 Product Enhancement Investment -300 Office Relocation Costs -165 Internal Systems & Other FY7/27 Plan Overview Net Sales ¥22.8 B +9.1% OP ¥5 B -10.2% Dividend per Share (DPS) ¥70 +¥3 9th consecutive dividend increase planned Strengthening Growth Investment Across 3 Key Areas Human capital Base Pay Increases Office Relocation AI Internal Systems Product enhancement R&D Refer to p.34 for details on growth investments. Note: Vs. Sep. 2025 plan: Net sales +¥364M; OP -¥753M, reflecting growth investments 26.6% FY7/26 Actual 21.9% FY7/27 Plan 24.8% FY7/29 Plan 30% Mid- to Long-Term Target Growth investments will temporarily pressure OPM, while we target 30% over the medium to long term. (JPY million) OP Bridge (Illustrative)
Page 9
Ⓒ I’ll Inc. 01 Consolidated Financial Results Summary
Page 10
Ⓒ I’ll Inc. 9 Financial Trends Large-scale projects and productivity gains drove continued growth in sales and profit. Both GPM and OPM also improved. GP and GPMNet Sales SG&A OP and OPM (JPY million) (JPY million) (JPY million) (JPY million) SG&A (excl. personnel expenses) Personnel expenses 17,508 19,294 20,889 FY7/24 FY7/25 FY7/26 9,773 10,659 11,991 55.8% 55.2% 57.4% FY7/24 FY7/25 FY7/26 3,918 4,147 4,544 1,590 1,693 1,880 5,509 5,840 6,425 FY7/24 FY7/25 FY7/26 4,263 4,818 5,565 24.4% 25.0% 26.6% FY7/24 FY7/25 FY7/26
Page 11
Ⓒ I’ll Inc. 10 P/L Highlights QTD YTD (JPY million) FY7/25 Q4 FY7/26 Q4 YoY FY7/25 FY7/26 YoY Diff. Change Diff. Change Net Sales 5,196 5,346 +149 +3% 19,294 20,889 +1,594 +8% Gross profit (GP) 2,884 3,086 +202 +7% 10,659 11,991 +1,332 +12% Selling and general administrative(SG&A)* 1,529 1,762 +232 +15% 5,840 6,425 +585 +10% Operating profit (OP) 1,354 1,324 -29 -2% 4,818 5,565 +746 +15% Ordinary profit 1,346 1,339 -6 -1% 4,767 5,607 +840 +18% Profit 1,131 1,244 +112 +10% 3,488 4,175 +687 +20% *SG&A in this presentation includes R&D expenses (per Japanese GAAP).
Page 12
Ⓒ I’ll Inc. 11 FY7/26 Drivers of OP (vs FY7/25) SG&A -585 GP 1,332 System Solutions Business(SS Business) • Large project development and steady execution • GP growth driven by recurring revenue build-up. • GPM improvement via the integrated production and sales*1. • Cost of Sales(COS) reduction through outsourcing optimization. • Competitive differentiation via the CROSS-OVER strategy*2. • Upward revision of monthly cloud usage fees. • Operational efficiency gains through AI utilization. • Higher COS from Aladdin Cloud investment (May.). Online Solutions Business(Online Business) • CROSS MALL recurring revenue +11.3% YoY • CROSS POINT recurring revenue +8.0% YoY *1 For more details about the integrated production and sales, refer to p. 14. FY7/25 FY7/26 Higher R&D expenses driven by strengthened R&D activities. (+¥85M / +92.3% YoY). Promotion expense increase due to a rise in large-scale projects from partners (primarily banks). Higher costs from enhanced internal digital transformation(DX). Higher costs from Aladdin Office rebranding. Personnel Expenses (SG&A) SG&A (excl. personnel expenses) • Personnel expenses +9.6% YoY , driven by headcount growth and revised allowances. (Note: COS personnel expenses +¥318M, +8.3% YoY.) • Retirement benefit obligations decreased due to the revised discount rate. • Special allowance for all employees (Dec.) *2 For more details about the CROSS-OVER Strategy, refer to p. 16. (JPY million)
Page 13
Ⓒ I’ll Inc. 12 Results by Business Both businesses delivered full-year growth in sales and GP , with SS business driving profit growth. QTD YTD (JPY million) FY7/25 Q4 FY7/26 Q4 YoY FY7/25 FY7/26 YoY Diff. Change Diff. Change Net Sales 5,196 5,346 +149 +3% 19,294 20,889 +1,594 +8% System solutions business (SS business) 4,595 4,715 +120 +3% 16,989 18,409 +1,420 +8% Online solutions business (Online business) 601 630 +28 +5% 2,305 2,479 +173 +8% Gross profit (GP) 2,884 3,086 +202 +7% 10,659 11,991 +1,332 +12% System solutions business (SS business) 2,571 2,778 +207 +8% 9,499 10,768 +1,269 +13% Online solutions business (Online business) 313 308 -4 -1% 1,160 1,222 +62 +5%
Page 14
Ⓒ I’ll Inc. 13 System Solutions Business(SS Business) Results Both sales and profit grew. Server delivery delays were offset by software-related sales. • Productivity gains and steady progress on large-scale projects drove growth in both sales and GP . • Recurring GPM exceeded expectations, supported by stable post-delivery operations and moderated personnel cost growth. – Impact from May Aladdin Cloud investment absorbed. • Slower apparent YoY growth due to server delivery delays; solid full-year growth in sales and GP . – Lower hardware sales were offset by software-related sales. • The impact of the situation in the Middle East has not yet become apparent in either orders or sales. • AI adoption in business operations is contributing to productivity improvements. Overview Enhancement Plan • Order intake aligned with overall team workload (Sales, SEs, Programmers) to level workloads and further improve productivity. • Strengthen risk management as the customer base expands, to prevent project delays and inspection issues stemming from more complex approval processes. • Broader AI adoption for greater operational efficiency. • Response to higher hardware costs and unstable delivery schedules. • Stronger upstream capabilities through training and year-round hiring. GP and GPMNet Sales (JPY million) (JPY million) 15,339 16,989 18,409 FY7/24 FY7/25 FY7/26 8,659 9,499 10,768 56.5% 55.9% 58.5% FY7/24 FY7/25 FY7/26
Page 15
Ⓒ I’ll Inc. 14 Stronger Profits and Positive Spiral for Sustained Growth Sales force and SEs have been integrated*, leading to enhanced collaboration and positive spiral Integrated Production & Sales 2. Selection and concentration • Examine the system requirements and package conformance rate before receiving orders. • Receive orders in line with SE’s operating status. • Include stable operations as an evaluation criterion for project members. 4. Stable operations and improvement in project turnover rate • Reduce problems accompanying decreasing customization and improving delivery quality. • Reduction in the man-hours associated with problems enables SEs to efficiently start on the next project, improving the project turnover rate. 6. Advancement with higher customer satisfaction • Expand new customer introductions and case studies by ensuring customer satisfaction through improved operational efficiency and generous after-sales support. • Customer satisfaction leads to partner satisfaction and facilitates referrals. 1. Abundant business deals • Enhance the Company’s website and promote effective marketing initiatives. • Focus on partner strategy. 3. Increase in receipt of orders in which I’LL can leverage its strength • Receive increasing Aladdin Office orders from target business sectors. • Reduce customization as much as possible for proposals in line with package functions. 5. Enhanced package functions • Expand templates by accumulating knowhow. • Continue to strengthen package functions and add options based on frequent customization cases and customer/market requests. • Expand the target customer segment while reducing customization through enhanced features and options. 1. 2. 3. 4. 5. 6. Strong order receiving Stable operations * Sales force and SEs were integrated in terms of the organizational structure and work floor in Aug. 2022 at the Tokyo head office and in Aug. 2023 at the Osaka head office.
Page 16
Ⓒ I’ll Inc. 15 Online Solutions Business(Online Business) Results Higher average revenue per customer in the CROSS business drove YoY growth in sales and GP . Ongoing functional development positions BACKYARD as our next core growth pillar. GP and GPMNet Sales (JPY million) (JPY million) Other online business CROSS business Other online business CROSS business CROSS business GPM • We sustained growth in both sales and GP , with results tracking generally in line with our plan. • CROSS business GPM declined due to upfront investment in BACKYARD , while cost optimization efforts, including outsourcing reviews, continued. • We will continue shifting our growth focus from customer growth to higher average transaction value. a. Expansion in client enterprise size and e-commerce operation scale. b. Co-hosted new merchant acquisition events with partners such as Mercari. c. Strengthen ties with logistics and AI providers as well as e-commerce businesses. Overview Enhancement Plan • We plan to strengthen our approach to Aladdin Office users. *Including branding support services, we received 23 orders in FY7/26 • By expanding our partner network, we aim for market leadership in the e-commerce support services sector . • Responding to e-commerce market shifts, we are shifting focus from customer count to scale and higher revenue per customer via cross-selling. • Continuing BACKYARD feature development, resource allocation, and effective use of outsourcing. 1,634 1,767 1,933 534 538 546 2,168 2,305 2,479 FY7/24 FY7/25 FY7/26 948 998 1,054 165 161 168 1,113 1,160 1,222 FY7/24 FY7/25 FY7/26 58.0% 56.5% 54.5%
Page 17
Ⓒ I’ll Inc. 16 Competitive Advantages of the CROSS-OVER Strategy Our people, who combine expertise across three domains—industry and operational know-how, core systems, and online technologies—are the source of our sustainable growth. Industry & Operational know-how Cross-Domain Talent Interconnected Product Ecosystem (CROSS-OVER) I’LL: End-to-end understanding / One-stop proposals / Overall optimization Competitors: Single-domain focus / Multi-vendor proposals / Partial optimization Win rate against competitors 89.9 5-Year Total (FY7/22–26) Repeat rate 98.4 FY7/26 Results GPM 38.6 → 57.4 FY7/17 → FY7/26 (+18.8 pp) Core Systems Online Technologies
Page 18
Ⓒ I’ll Inc. 17 Recurring Revenue/GP vs. SG&A Recurring GP growth significantly outpaced SG&A growth, driven by higher maintenance and cloud fees in SS business and service expansion in Online business. Recurring Revenue Net increase in recurring revenue Recurring revenue for the previous term (JPY million) • Recurring revenue is increasing due to higher monthly maintenance fees from project expansion, greater adoption of cloud products, and continued growth of the CROSS business. • Recurring GP covers at ~90% of SG&A. Recurring GP Net increase in recurring GP Recurring GP for the previous term (JPY million) Recurring GP coverage of SG&A (JPY million) 3,682 4,264 4,894 5,515 5,134 5,509 5,840 6,425 FY7/23 FY7/24 FY7/25 FY7/26 3,304 3,682 4,264 4,894 378 581 630 620 3,682 4,264 4,894 5,515 FY7/23 FY7/24 FY7/25 FY7/26 5,576 6,290 7,212 8,319 713 922 1,106 967 6,290 7,212 8,319 9,286 FY7/23 FY7/24 FY7/25 FY7/26 72% 77% 84% 86%
Page 19
Ⓒ I’ll Inc. 18 Number of Customers by Business & Sales Channel SS business adding 100+ clients annually; Online business optimizing customer portfolio. Order Value by Sales Channel (SS Business) 29.7% 35.6% 36.1% Number of Customers (Cumulative Total) • SS business grew YoY , supported by a low churn rate and continued new customer acquisition. • Online business growth was limited amid SME cancellations and a customer shift to larger firms. • Order volume increased YoY across all channels. The share of In-house Sales increased, driven by stronger customer outreach for CROSS business and more referrals from existing customers. Actual Results at FY-End Number of customers in the SS business Number of customers in the Online business *FY7/26 Results *Figures in parentheses show YoY changes. In-house sales Partner* Introduction Homepage inquiry (-6.2 pp) (-1.4 pp) (+7.6 pp) * Partner: Banks, SIers, office equipment manufacturers, consulting firms, accounting firms, etc. – Sources of new business. 5,054 5,152 5,264 5,379 2,253 2,297 2,306 2,314 FY7/23 FY7/24 FY7/25 FY7/26
Page 20
Ⓒ I’ll Inc. 19 Trends in Net sales (QTD) Sales grew across both businesses, with SS business up 3% and Online business up 5% YoY . Growth was fueled by large-scale project wins, steady execution of ongoing contracts, and the expansion of recurring revenue. Other factors contributing to increased sales include: 1. Increased headcount 2. Improved employee skills 3. Increased production output through AI utilization 4. Continued wins of major contracts driven by enhanced standard features of our packaged software, and steady progress of these newly secured major projects. YoY Sales grew across both businesses, with SS business up 3% and Online business up 2% QoQ. In SS business, the final project phase remained at the Q3 level due to server delivery delays, but progress in earlier phases and software development offset the impact. Online business sales increased QoQ, driven by stable new customer acquisition in the CROSS business. QoQ System solutions business(SS business) Online solutions business(Online business) (JPY million) 3,743 3,737 3,759 4,099 3,993 4,130 4,269 4,595 4,448 4,682 4,562 4,715 542 548 539 539 557 560 586 601 615 613 620 630 4,285 4,285 4,298 4,638 4,550 4,691 4,856 5,196 5,064 5,296 5,182 5,346 Q1 FY24/7 Q2 Q3 Q4 Q1 FY25/7 Q2 Q3 Q4 Q1 FY26/7 Q2 Q3 Q4 YoY: +3% QoQ: +3%
Page 21
Ⓒ I’ll Inc. 20 56.8% 56.4% 55.3% 54.8% 54.6% 56.1% 54.7% 55.5% 56.9% 57.9% 57.0% 57.7% Trends in GP and GPM (QTD) • SS business GP grew on higher sales and improved GPM, driven by the following factors: 1. Higher project scale drove ASP growth. 2. Steady execution of large projects. 3. Productivity gains from employee skill development. – Large project management capabilities – Operational efficiency through stronger technical expertise 4. Expertise inflow through ongoing mid-career hiring. 5. Absence of low-margin Windows 10-related PC replacement demand • Online Business GP declined as BACKYARD development costs weighed on GPM. SS business GP growth driven by: Higher sales Higher SE utilization through hardware-delay- adjusted project scheduling Online business GP increased driven by higher sales. GPM for the entire company System solutions business(SS business) Online solutions business(Online business) (JPY million) YoY QoQ YoY: +7% QoQ: +4% 2,168 2,130 2,096 2,264 2,198 2,356 2,372 2,571 2,568 2,768 2,653 2,778 267 288 280 277 287 277 282 313 314 297 303 308 2,435 2,418 2,377 2,541 2,485 2,633 2,655 2,884 2,882 3,065 2,956 3,086 Q1 FY24/7 Q2 Q3 Q4 Q1 FY25/7 Q2 Q3 Q4 Q1 FY26/7 Q2 Q3 Q4
Page 22
Ⓒ I’ll Inc. 21 Trends in SG&A (QTD) • Personnel expenses and other SG&A expenses both increased Increase in personnel expenses due to headcount growth and the revision of allowances effective Aug. 2025. However, personnel expense growth remained limited due to lower retirement benefit obligations following the discount rate revision. • R&D increased due to reinforced activities (+¥28M / +103.2% YoY). • Costs increased due to reinforced internal DX initiatives. • Personnel expenses rose due to April new hires and year- end bonuses. • Other SG&A expenses increased on relocation costs, higher R&D expenses, and stronger recruitment activities. SG&A (excl. personnel expenses) Personnel expenses (JPY million) YoY QoQ YoY: +15% QoQ: +14% 937 930 941 1,109 991 1,033 1,007 1,115 1,116 1,089 1,089 1,249 355 391 407 435 419 413 444 414 439 469 458 513 1,293 1,321 1,348 1,544 1,411 1,447 1,451 1,529 1,556 1,559 1,547 1,762 Q1 FY24/7 Q2 Q3 Q4 Q1 FY25/7 Q2 Q3 Q4 Q1 FY26/7 Q2 Q3 Q4
Page 23
Ⓒ I’ll Inc. 22 Trends in OP and OPM (QTD) • Higher gross profit and GPM improvement were outweighed by increased SG&A expenses, resulting in lower OP . • Lower OP as year-end bonuses and other expenses offset GP growth and GPM improvement. YoY QoQ (JPY million) 1,142 1,096 1,028 996 1,074 1,186 1,203 1,354 1,325 1,506 1,409 1,324 26.7% 25.6% 23.9% 21.5% 23.6% 25.3% 24.8% 26.1% 26.2% 28.4% 27.2% 24.8% Q1 FY24/7 Q2 Q3 Q4 Q1 FY25/7 Q2 Q3 Q4 Q1 FY26/7 Q2 Q3 Q4 YoY: -2% QoQ: -6%
Page 24
Ⓒ I’ll Inc. 23 B/S Highlights Against a backdrop of rising interest rates, we are bolstering liquidity to reinforce financial resilience while maintaining the agility to fund strategic growth investments. FY7/25 (As of July 31, 2025) FY7/26 (As of July 31, 2026) Change Current assets 13,216 14,292 +1,076 Non-current assets 2,552 3,668 +1,116 Total assets 15,768 17,961 +2,192 Current liabilities 2,618 3,238 +620 Non-current liabilities 1,863 859 -1,004 Total liabilities 4,482 4,098 -383 Total net assets 11,286 13,863 +2,576 Current ratio 505% 441% -63 pp Fixed ratio 23% 26% +4 pp Equity ratio 72% 77% +6 pp (JPY million)
Page 25
Ⓒ I’ll Inc. 24 C/S Highlights Higher sales drove OCF growth, while investing cash outflows rose sharply due to ¥2.2B in time deposits and office relocation costs. 3,073 2,637 3,366 3,455 -547 -712 -546 -3,509 2,525 1,925 2,820 -53 FY7/23 FY7/24 FY7/25 FY7/26 Operating cash flow(OCF) Investing cash flow Free cash flow(FCF)
Page 26
Ⓒ I’ll Inc. 25 ¥31 ¥41 ¥50 ¥67 ¥70 31.4% 35.5% 35.4% 40.1% 49.4% 11.5% 11.8% 11.9% 13.3% FY7/23 FY7/24 FY7/25 FY7/26 FY7/27 Plan DPS Payout ratio DOE Dividend Policy DPS to ¥70 despite lower profit plan; 9th consecutive increase. • FY7/26 DPS planned at ¥70, ¥7 above the initial forecast, subject to shareholder approval. • Payout ratio raised from 35% to 40%+, with a 50% target. • Dividend on equity (DOE) target maintained at 10%+. FY7/25 FY7/26 FY7/27 (Plan) 1H DPS ¥20.00 ¥32.00 ¥35.00 YoY: ¥+3.00 2H DPS ¥30.00 ¥35.00 ¥35.00 YoY:¥ 0.00 YTD DPS ¥50.00 ¥67.00 ¥70.00 YoY +22.0 % +34.0 % +4.5 % Payout Ratio 35.4 % 40.1 % 49.4 % DOE 11.9 % 13.3 % — Shareholder Dividends Dividend Policy and Trends in DPS and Payout Ratio 40%+(Target: 50%) Payout ratio: 30%+ 35%+ 10% or moreDOE: 8% or more
Page 27
Ⓒ I’ll Inc. 26 Management Conscious of Cost of Capital and Stock Price Diversified shareholders and consistent disclosure reduced volatility, lowering the Cost of Capital (9.2% → 7.5%). ROE consistently exceeds the Cost of Equity, outperforming the sector average*1. We aim to maintain high ROE through profit growth and strategic investments utilizing financial leverage. We will further enhance information disclosure and strengthen investor engagement. ROE I’LL’s ROE Average ROE for the Info & Comm Sector*1 PBR I’LL’s PBR Average PBR for the Info & Comm Sector*3 • We view our sustained high PBR as a sign of positive market valuation, while recognizing the recent downward trend in PBR as a key challenge. • We will invest primarily in human capital, product enhancement, and internal systems*4 to build the foundation for the next stage of growth, accelerate future growth, and enhance corporate value. • Consequently, we have reset our immediate milestone to a 30% OPM. *1 Cited annual results for Prime Market companies from the TSE's "Summary of Earnings Digests by Listed Companies“. *2 As debt is negligible, Cost of Equity (CAPM) is used as Cost of Capital. CAPM = Risk-free rate + Beta × Market Risk Premium *3 Cited end-of-July data for Prime Market companies from TSE’s “Other Statistics”. *4 See P.27, “Three-year Rolling Plan(FY7/26–FY7/29)” for details. 7.2 8.4 7.0 6.3 4.1 2.3 2.4 2.2 1.9 3.3 FY7/22 FY7/23 FY7/24 FY7/25 FY7/26 26.7% 36.7% 33.2% 33.3% 33.2% 5.7% 7.5% 8.6% 10.7% 18.3% FY7/22 FY7/23 FY7/24 FY7/25 FY7/26 Cost of Capital CAPM*2 ~7.5%
Page 28
Ⓒ I’ll Inc. 02 Three-year Rolling Plan(FY7/27–FY7/29)
Page 29
Ⓒ I’ll Inc. 28 Positioning of the Three-Year Plan (FY7/27–29) FY7/26–28 is defined as the “Acceleration of Growth Investment” during which we will build new foundations toward our vision of becoming an industrial platform provider. FY7/19 FY7/26 Phase 1 Revenue Growth Phase 2 Profitability Reform Phase 3 Acceleration of Growth Investment Three-Year Plan Theme Net sales Outcomes • Establishing our position within the Industry • Establishing the business model and sales channels Profit Margin Growth Investment • Transition to a profit- oriented structure. • Increasing number of large-scale projects. • Expansion of mid-career hiring Outcomes • R&D • Human Resources • Internal Systems and Processes • M&A and Partnerships with Other Companies Transformation & Investment for Next Growth Industrial Platform Provider* *Refer to p.39 for details on the Industrial Platform.
Page 30
Ⓒ I’ll Inc. 29 From Data Accumulation to Utilization AI creates real value only when supported by a business foundation. Leveraging its strong position in the core systems market, we will establish a unique “Core system AI” business model. Company Value Creation through Data Utilization — Our New Business Data Aggregation & Accumulation —Business So Far Sales Data Purchasing Data Inventory Data Production Data Customer Data Product Data Utilizing Aggregated Data for New Value-Added Offerings AI-Powered Security-focused Prevent corporate data leaks and ensure transparency in data utilization. Data Analytics & Management Support Internal Systems & Tools Providing one-stop solutions from building data infrastructure to driving management innovation.
Page 31
Ⓒ I’ll Inc. 30 Internal Structural Reform We will drive structural reforms with a sense of urgency, centered on three themes for the next era. R&D Human Capital Human Capital • In addition to in-house training, we will actively incorporate external programs and expertise to develop AI talent. • We will foster talent that combines IT expertise with data analysis using core data and consulting capabilities. • While increasing headcount, we will focus on enhancing output per employee through knowledge-intensive work practices. R&D • We will accelerate integration with other systems by continuously updating Aladdin Office and other products. • We will establish efficient development methodologies incorporating AI. • We will leverage AI in our products and services to realize core systems integrated with AI. Internal Systems • To enable swift management decisions, we will advance the renewal and integration of internal systems. • Based on employee needs, we will actively introduce AI tools with expanding applications throughout the company. • We will proceed with the reconstruction of internal systems and databases, consolidating and sharing expertise scattered throughout the company. This will contribute to individual skill development and corporate growth. Internal Systems
Page 32
Ⓒ I’ll Inc. 31 OP outlook from a medium-to-long-term perspective An Extension of Our Existing Plan • As this is a continuation of existing business, sales growth is tied to headcount. • Lagging in AI adoption risks eroding our ability to differentiate from competitors. New Plan • We will accelerate growth investments in R&D, employee training, and AI tool implementation to realize our long-term vision. • By achieving this vision, we will build capabilities beyond competitors, leading to lower COS, faster operations, and sustained growth. • We aim to realize an exciting future only I’LL can create. Organic Growth Building up recurring revenue M&A Market Expansion Launching New Services Growth investments are creating a temporary gap. 2026
Page 33
Ⓒ I’ll Inc. 32 FY7/27–29 Three-year Rolling Plan Upfront investment is expected to result in higher sales but lower profit, while laying the groundwork for the next phase of growth. (JPY million) (JPY million) FY7/26 FY7/27 FY7/28 FY7/29 CAGR (26–29)Actual Plan Net sales 20,889 22,800 24,900 27,000 8.9% Gross profit 11,991 12,272 13,628 14,778 7.2% (margin) (57.4%) (53.8%) (54.7%) (54.7%) Operating profit 5,565 5,000 5,500 6,700 6.4% (margin) (26.6 ) (21.9%) (22.1%) (24.8%) Net profit 4,175 3,546 3,844 4,677 3.8% Orders • In addition to demand for digital transformation, demand for the modernization of legacy systems, including minicomputers, is expected to remain strong. Development Project • Ongoing expansion of the project scale. • AI is expected to improve software development efficiency. • Allocating engineering resources to R&D. • Lower recurring GPM expected in SS Business from Aladdin Cloud investment. Investments and Others(Refer to p.34) • We will continue to actively enhance the functionality of our package systems beyond FY7/27. • Large-scale Aladdin Cloud capital investment in FY7/27 to support continued large- scale project wins and stable operations. • We plan to renew internal systems and invest in AI to strengthen our sales structure, project management, and governance. • Fixed costs are expected to increase due to revisions to the salary structure, the relocation of the Nagoya Branch in Nov. 2026, and the relocation of the Tokyo Headquarters in Mar. 2028. • Annual hiring is expected to be approximately 65 new graduates and 25 experienced hires. The premise of the plan
Page 34
Ⓒ I’ll Inc. 33 FY7/27 Quarterly Plan Overview Sales are expected to build toward the fiscal year-end, with OP following. Net sales (JPY million) (JPY million) Operating profit(OP) Q1 FY7/27 Q2 Q3 Q4 Q1 FY7/27 Q2 Q3 Q4 1H(Plan) 10,923 2H(Plan) 11,876 1H(Plan) 2,406 2H(Plan) 2,593 OP Plan Assumptions • 4Q expected to be the strongest quarter, reflecting sales volume and project progress. • Higher COS expected toward 2H due to Aladdin Cloud-related investment. • Nagoya Branch relocation scheduled for 2Q Potential Factors Affecting the Plan • If the turnover rate of projects increases more than expected due to improved productivity (+) • If COS increases due to a rise in the price of purchased goods (-) Net Sales Plan Assumptions • QoQ growth is expected, supported by the current order backlog, recurring revenue build-up, and server-delay-adjusted project execution. Potential Factors Affecting the Plan • If productivity improvements progress and the project turnover rate rises more than expected (+) • If system investment weakens due to macroeconomic factors(-) • If server delivery delays exceed assumptions due to semiconductor shortages(-) – Including potential market-wide shortages ahead of the Jan. 2027 Windows Server OS EOS. • Food consumption tax reduction: Limited earnings impact expected; not factored into the plan. Note: Limited earnings impact expected from a potential food consumption tax reduction, as most companies already updated their systems in 2019; not factored into the plan.
Page 35
Ⓒ I’ll Inc. 34 Investment Policy: Human Capital-Led Growth Investment Our competitive edge comes from our people and accumulated know-how. Through human capital investment and AI, we will enable our people to focus on high-value-added work. • Office relocations (Nagoya: Nov. 2026 / Tokyo: Mar. 2028) • Base pay increases and salary structure revisions • Enhanced employee benefits and long-term employment support Talent Attraction & Engagement Productivity Gains Customer Value Enhancement Expertise Industry & Operational Know-how Differentiation Through Our People Maximizing Human Capital Focus on Uniquely Human Work Understand customer challenges and work alongside customers Corporate Value Creation Process AI to support people, not replace them — maximizing human value creation • Generative AI & AI agent adoption • Internal system renewal & knowledge platform • Routine tasks shifted to AI / people focused on higher-value work • Ongoing product upgrades • Aladdin Cloud data center investment Customer Engagement Relationship Building Consultative Capability Customer Understanding Deliver Greater Value to More Companies Sustainable Corporate Value Growth
Page 36
Ⓒ I’ll Inc. 35 Office Relocation Objectives People remain at the core of our business and competitive strength, even as AI adoption expands. We will invest in the work environment to maximize their value and drive future growth. Nagoya Branch — Nov. 2026 New location: Dai Nagoya Building, Nakamura-ku, Nagoya Purpose: Accommodate workforce growth and strengthen the Chubu organization Tokyo Headquarters — Mar. 2028 New location: Nihonbashi Nomura Mitsui Tower, Chuo-ku, Tokyo Purpose: Consolidate 4 floors into a single floor New Nagoya Branch – Office Concept Nihonbashi Nomura Mitsui Tower Objectives Before: Limited space constraining expansion After: Expanded space will support continued organizational growth Note: Relocation costs already factored into the Three-Year Plan (FY7/27–29). Relocation effects will be monitored and reported through existing KPIs, including employee turnover. Organizational Growth Before: Siloed interaction across multiple floors After: One-floor integration will enhance collaboration, knowledge sharing, and innovation Productivity & Collaboration Before: Intensifying competition for talent After: An improved workplace and stronger employer branding will support recruitment and retention Talent Attraction
Page 37
Ⓒ I’ll Inc. 36Ⓒ I’ll Inc. 03 Future Vision After 35 years of growth, I’LL has expanded to over 1,000 employees. In today’s rapidly changing environment—marked by economic uncertainty and the acceleration of AI—we see opportunities for the next phase of expansion. Positioning this as our “Second Foundation Phase,” we have set out our long-term vision for sustainable growth.
Page 38
Ⓒ I’ll Inc. 37 Our Vision for the Future As an Industrial Platform Provider, We drive supply chain transformation to enhance users’ corporate value.
Page 39
Ⓒ I’ll Inc. 38 I’LL So Far Win Rate Repeat rate We drive overall optimization, while others remain confined to partial optimization. 89.9 % 5-Year Total (FY7/22–26) One Company for Real & Online Systems They have only one domain—real or online—so proposals must be made jointly with other companies. Competitors Core System Vendor + Online System Vendor Unmatched “CROSS-OVER Strategy” 98.4 % FY7/26 Results Customer
Page 40
Ⓒ I’ll Inc. 39 The Future Vision I’LL Strives For Consortium of I’LL Partners Joining with unique strengths The Platform Provided by I'LL WholesaleManufacturing Warehousing Logistics Retail Finance HR Information platform for People, Goods & Capital We aim to serve as the core of a co - creation network (ecosystem) that transcends immediate interests and drives both industry growth and the prosperity of user companies. Rebuilding the supply chain to empower customers and partners “Industrial Platform Provider”
Page 41
Ⓒ I’ll Inc. 40 The Cycle of Prosperity at Our Core As trust is built, it attracts people, which in turn brings opportunities. Business Partners A Network of Partners Built on Trust Steadfast Philosophy Customers Cross - Industry Co - creation Expanding User Base via Customer Growth
Page 42
Ⓒ I’ll Inc. 41 Pathway Toward an Industrial Platform Provider Unmatched “CROSS-OVER Strategy” Creating value across boundaries of different industries, markets, product categories, and more Becoming the De Facto Standard By advancing business platformization in key industries, I’LL’s system will become the de facto standard. Realizing an Ecosystem Platform We aim to organically connect diverse industry players—such as distribution, manufacturing, retail, logistics, and e-commerce—not merely through system integration, but as an integrated activity system. Unchanging Values: Simple Strategy, No Imitation, Enjoy Work AI handles tasks, people create unique value Human-First Approach to AI Utilization
Page 43
Ⓒ I’ll Inc. 42 Contact Information Osaka Head Office: 34F, Tower B, Grand Front Osaka, 3-1, Ofukacho, Kita-ku, Osaka-shi, Osaka Tokyo Head Office: 15-17F, 20F, Shibakoen Front Tower, 2-6-3, Shibakoen, Minato-ku, Tokyo Nagoya Branch: 3F, Urbannet Fushimi Bldg., 1-10-20, Nishiki, Naka-ku, Nagoya-shi, Aichi I'LL Matsue Lab: 201, Tonomachi, Matsue-shi, Shimane https://www.ill.co.jp/ir/en/