Interim report
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Note : This document has been translated from 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. - 1 - Consolidated Financial Results for the Fiscal Year Ended July 31, 2026 (August 1, 2025, to July 31, 2026) [Japanese GAAP] September 7, 2026 Listed company I'LL INC. Stock exchange listing: Tokyo Stock Exchange, Prime Market Code number 3854 URL https://www.ill.co.jp Representative (Title) Representative Director & President (Name) Tetsuo Iwamoto Contact (Title) Deputy Head of Accounting Department (Name) Shinichiro Nakai TEL 06-6292-1170 Scheduled date for annual shareholders’ meeting: October 23, 2026 Scheduled date for dividend payment commencement: October 26, 2026 Scheduled date for filing annual securities report: October 16, 2026 Availability of supplementary briefing material on financial results: Yes Financial results briefing session: No (Amounts less than ¥1 million rounded down) 1. Consolidated Financial Results for the Fiscal Year Ended July 31, 2026 (August 1, 2025, to July 31, 2026) (1) Consolidated Operating Results (% indicates change from previous corresponding period) Net sales Operating profit Ordinary profit Profit attributable to owners of parent million yen % million yen % million yen % million yen % Fiscal year ended July 31, 2026 20,889 8.3 5,565 15.5 5,607 17.6 4,175 19.7 Fiscal year ended July 31, 2025 19,294 10.2 4,818 13.0 4,767 11.3 3,488 20.8 (Note) Comprehensive income: Fiscal year ended July 31, 2026 4,214 million yen [16.6%] Fiscal year ended July 31, 2025 3,613 million yen [27.2%] Net profit per share Diluted net profit per share Return on equity Ratio of ordinary profit to total assets Operating profit margin Yen Yen % % % Fiscal year ended July 31, 2026 167.01 - 33.2 33.2 26.6 Fiscal year ended July 31, 2025 141.32 - 33.3 31.9 25.0 (Notes) 1. Diluted net profit per share is not shown because there are no dilutive shares. 2. In calculating net profit per share, the Company's shares acquired by the “Stock Grant ESOP Trust Account” during the fiscal year ended July 31, 2026 (29,700 shares at year-end with a period average of 25,773 shares) are included in the treasury shares deducted in calculating the average number of shares during the period. The same treatment applies to the Company's shares acquired and disposed of by the Impact Neutralization Trust during the fiscal year ended July 31, 2025 (no shares at year-end with a period average of 346,470 shares). (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share million yen million yen % Yen As of July 31, 2026 17,961 13,863 77.2 554.56 As of July 31, 2025 15,768 11,286 71.6 450.94 (Reference) Shareholders’ equity: As of July 31, 2026 13,863 million yen As of July 31, 2025 11,286 million yen (Note) In calculating net assets per share for the fiscal year ended July 31, 2026, 29,700 shares of the Company held by the Stock Grant ESOP Trust Account are included in the treasury shares deducted from the total number of shares issued as of year-end. (3) Status of consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period million yen million yen million yen million yen Fiscal year ended July 31, 2026 3,455 (3,509) (1,638) 5,710 Fiscal year ended July 31, 2025 3,366 (546) (2,080) 7,402
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Note : This document has been translated from 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. - 2 - 2. Dividends Annual dividends Dividends (Total) Dividend payout ratio (Consolidated) Dividends to net assets (Consolidated) End of first quarter End of second quarter End of third quarter End of year Total Yen Yen Yen Yen Yen million yen % % Fiscal year ended July 31, 2025 - 20.00 - 30.00 50.00 1,251 35.4 11.9 Fiscal year ended July 31, 2026 - 32.00 - 35.00 67.00 1,676 40.1 13.3 Fiscal year ending July 31, 2027 (Forecast) - 35.00 - 35.00 70.00 49.4 (Note) The total dividend amount for the fiscal year ended July 2026 includes dividends for 29,700 shares of the Company's stock held by the Stock Grant ESOP Trust Account as of the record date. 3. Forecasted Consolidated Results for the Fiscal Year Ending July 31, 2027 (August 1, 2026, to July 31, 2027) (% indicates changes from the previous year for full-year figures and changes from the same period of the previous year for quarterly figures) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Net profit per share million yen % million yen % million yen % million yen % Yen First half (YTD) 10,923 5.4 2,406 (15.0) 2,425 (14.9) 1,719 (12.1) 68.68 Full year 22,800 9.1 5,000 (10.2) 5,040 (10.1) 3,546 (15.1) 141.67 *Notes (1) Significant changes in the scope of consolidation during the period: No (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares) As of July 31, 2026 25,042,528 shares As of July 31, 2025 25,042,528 shares 2) Total number of treasury shares at the end of the period As of July 31, 2026 42,774 shares As of July 31, 2025 13,039 shares 3) Average number of shares during the fiscal year Fiscal year ended July 31, 2026 25,003,709 shares Fiscal year ended July 31, 2025 24,683,396 shares (Notes) 1. The total number of treasury shares at the end of the period includes shares of the Company held by the “Stock Grant ESOP Trust Account” (29,700 shares for the fiscal year ended July 31, 2026, and no shares for the fiscal year ended July 31, 2025). 2. The Company’s shares acquired by the “Stock Grant ESOP Trust Account” during the fiscal year ended July 31, 2026 (average number during the period: 25,773 shares) and those acquired and disposed of by the Impact Neutralization Trust during the fiscal year ended July 31, 2025 (average number during the period: 346,470 shares) are included in treasury shares deducted in calculating the average number of shares during each period. (Reference) Non-consolidated financial results summary Non-consolidated Financial Results for the Fiscal Year Ended July 31, 2026 (August 1, 2025, to July 31, 2026) (1) Non-consolidated Operating Results (% indicates change from previous corresponding period) Net sales Operating profit Ordinary profit Net profit million yen % million yen % million yen % million yen % Fiscal year ended July 31, 2026 20,410 8.4 5,489 15.7 5,529 17.4 4,125 19.5 Fiscal year ended July 31, 2025 18,837 10.1 4,745 13.5 4,711 11.6 3,452 22.1 Net profit per share Diluted net profit per share Yen Yen Fiscal year ended July 31, 2026 165.01 - Fiscal year ended July 31, 2025 139.85 - (Notes) 1. Diluted net profit per share is not shown because there are no dilutive shares. 2. In calculating net profit per share, the Company's shares acquired by the “Stock Grant ESOP Trust Account” during the fiscal year ended July 31, 2026 (29,700 shares at year-end with a period average of 25,773 shares) are included in the treasury shares deducted in calculating the average number of shares during the period. The same treatment applies to the Company's shares acquired and disposed of by the Impact Neutralization Trust during the fiscal year ended July 31, 2025 (no shares at year-end with a period average of 346,470 shares).
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Note : This document has been translated from 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. - 3 - (2) Non-consolidated Financial Position Total assets Net assets Equity ratio Net assets per share million yen million yen % Yen Fiscal year ended July 31, 2026 17,614 13,305 75.5 532.24 Fiscal year ended July 31, 2025 15,446 10,817 70.0 432.19 (Reference) Shareholders’ equity Fiscal year ended July 31, 2026 13,305 million yen Fiscal year ended July 31, 2025 10,817 million yen (Note) In calculating net assets per share for the fiscal year ended July 31, 2026, 29,700 shares of the Company held by the Stock Grant ESOP Trust Account are included in the treasury shares deducted from the total number of shares issued as of year-end. *This consolidated financial results report is not subject to audit by a certified public accountant or an auditing firm. *Explanation on the proper use of financial results forecast and other notes (Notice regarding future statements) The financial forecasts stated in this document are based on information available as of the date of this document. These forecasts should not be construed as a promise by the Company to achieve them. Actual results may differ from these forecasts due to uncertain factors, such as economic trends. For notes about assumptions behind the financial forecasts and how to use these financial forecasts, refer to “1. Overview of Operating Results” on page 5.
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- 4 - Contents 1. Overview of Operating Results 5 (1) Overview of Operating Results for the Period 5 (2) Overview of Financial Position for the Period 7 (3) Overview of Cash Flows for the Period 7 (4) Future Outlook 8 (5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years 8 (6) Business Risks 9 2. Overview of the Corporate Group 11 3. Basic Thinking on Selection of Accounting Standards 11 4. Consolidated Financial Statements and Significant Notes Thereto 12 (1) Consolidated Balance Sheets 12 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 14 Consolidated Statements of Income 14 Consolidated Statements of Comprehensive Income 15 (3) Consolidated Statement of Changes in Equity 16 (4) Consolidated Statement of Cash Flows 18 (5) Notes on Consolidated Financial Statements 19 (Notes on the Premise of a Going Concern) 19 (Important Matters as the Basis for Preparing Consolidated Financial Statements) 19 (Notes on Additional Information) 21 (Notes on Segment Information) 21 (Notes on Information on Net Profit Per Share) 22 (Notes on Significant Subsequent Events) 22 (Notes on Revenue Recognition) 23 5. Other 24 (1) Director Changes 24 (2) Other 24
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- 5 - 1. Overview of Operating Results (1) Overview of Operating Results for the Period 1) Overview of business performance Period 35th period 36th period Accounting period From August 1, 2024, to July 31, 2025 From August 1, 2025, to July 31, 2026 Net sales (Thousands of yen) 19,294,870 20,889,513 Operating profit (Thousands of yen) 4,818,844 5,565,654 Ordinary profit (Thousands of yen) 4,767,603 5,607,639 Profit attributable to owners of parent (Thousands of yen) 3,488,354 4,175,960 Comprehensive income (Thousands of yen) 3,613,111 4,214,630 Net assets (Thousands of yen) 11,286,903 13,863,762 Total assets (Thousands of yen) 15,768,982 17,961,865 Research and development expenses (Thousands of yen) 92,565 178,037 Equity ratio (%) 71.6 77.2 Operating profit margin (%) 25.0 26.6 During the current consolidated fiscal year (August 1, 2025 to July 31, 2026), Japan's economy is on a moderate recovery track, driven by improvements in the employment and income environment and an expansion in capital investment. Meanwhile, a semiconductor shortage driven by AI -related demand, as well as inflati onary pressure caused by yen depreciation and rising geopolitical risks, including the situation in the Middle East, have continued, and close monitoring of these issues remains necessary. Information system investment in Japan is booming, mainly in digital transformation which conducts a business transformation that utilizes digital technologies to address labor shortages. Under these current market conditions, the I'LL Group is pursuing its “CROSS-OVER” strategy in order to strengthen the business of its customers. Through a combination of “real” and “online” products and services, the I'LL Group develops, proposes and supports solutions for mid -tier and small/medium -sized corporate clients that need to efficiently use IT to solve their management issues. The “CROSS-OVER” strategy is an initiative to increase the business efficiency and strengthen the sales capabilities of customers, by proposing a combination of real and online products and services through the I'LL Group’s unique value proposition style. This strategy not only gives the I'LL Group a competitive edge during negotiations, but also enhances the satisfaction of its customers. In addition, to promote sustainable growth, I'LL has introduced an integrated production -sales system where sales representatives and system engineers are placed in the same organization to enhance mutual c ollaboration. This has improved the accuracy of projects by determining customer requirements at the time of quotation, strengthened the project management system, and reduced person-hours of customer support after the system operation starts by improving delivery quality, thereby strengthening the profit structure. As for an overview of the “real” and “online” businesses, I'LL has continued on the real -world front to broaden the product appeal of its mainstay Aladdin Office software package for each business sector. In sales, it collaborated with partner companies and saw orders remain firm as it proposed ways for optimum system use for each client on the basis of plenty of installment examples in each industry. On the online world, I'LL continued to do new collaborative development with online store operators on the CROSS MALL cloud service, which integrates the management of multiple online stores. The Company will continue to strengthen our cooperation with multiple malls and shift our focus to medium -size and large markets, with the objective of increasing sales over the medium - to long-term. Also, the Company has achieved steady growth in sales of the CROSS POINT cloud service which allows integrated management of reward points and customers of online and real stores. BACKYARD™ launched its “ITEM PLAN” to eliminate the complex tasks and burdens associated with corporate product information management. As sales channels diversify —including physical stores, e -commerce, B2B, B2C, and D2C —sales strategies grow
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- 6 - increasingly complex, creating a clear need for unified product management that transcends channel boundaries. Moving forward, we will conduct sales activities addressing these needs while continuously adding new features. Furthermore, to enable agile system improvements in response to daily changes in user needs and the environment, we are transitioning to a technical architecture known as microservices architecture. Adopting microservices architecture aims to shorten development cycles, actively incorpora te and strengthen integration with third -party technologies, and ensure scalability, thereby building a more flexible and sustainable business foundation. Both businesses see the development of AI technology as an opportunity to accelerate business growth. In order to promptly respond to the growing needs for individual company -optimized solutions arising from the shift in target focus to medium-sized companies, we are concurrently promoting initiatives to support development and improve operational efficiency through the utilization of AI. Specifically, we are improving productivity by speeding up the design and verification processes, automating documentation and code completion, and implementing other related initiatives. Through these measures, we will continue to establish a leaner business structure while providing higher- quality and more timely services to our users. In addition, the Company continued to focus on product development and booked ¥178,037,000 for research and development expenses to increase market competitiveness through development of new technologies in the future. The Company will work to enhance R&D activities mainly at the I'LL Matsue Laboratory, an R&D base in Matsue, Shimane Prefecture, and continue to improve its future market competitiveness.As a result, for the fiscal year under review, operating performance was as follows: net sales of ¥20,889,513,000 (up 8.3% year-on-year), operating profit of ¥5,565,654,000 (up 15.5% year -on-year), ordinary profit of ¥5,607,639,000 (up 17.6% year -on-year), and profit attributable to owners of parent of ¥4,175,960,000 (up 19.7% year -on-year). The operating profit margin, a key management indicator for the Group, was 26.6%. Furthermore, the financial position at the end of the fiscal year under review showed total assets of ¥17,961,865,000 and total net assets of ¥13,863,762,000. The equity ratio, which indicates the soundness of the financial position and long-term safety, was 77.2%. 2) Analysis of operating results (Net sales) Net sales increased 8.3% year on year to ¥20,889,513,000. During the current consolidated fiscal year, new orders increased steadily despite delays in hardware deliveries caused by semiconductor shortages. This growth was supported by continued orders for large -scale projects and the consistent and stable progres s of development processes, driving the expansion of net sales. In addition, customer supply prices were revised to reflect higher procurement costs, and stock sales accumulated in response to increasingly diversified work styles among mid-tier, small and medium-size companies. The Company also continued to enhance the functions of its flagship package software, Aladdin Office. Furthermore, in collaboration with partner companies, the Company proposed optimal system utilization methods tailored to each customer based on extensive implementation case studies. In addition, CROSS MALL, integrated management software for multiple online stores, has been given greater product appeal by incorporating functional requests collected from existing customers, and the contract unit price increased and sales rose due to th e acquisition of stable new customers, strengthened approach to the mid -sized and large markets, and monthly usage fee increases based on service enhancements. Net sales of CROSS POINT, a software program that enables integrated management of points and cu stomers for online and real stores, increased as the company expanded its reach beyond the fashion industry and acquired new customers. (Cost of sales, selling, general and administrative expenses, and operating profit) The cost of sales increased 3.0% year on year to ¥8,898,099,000. This was mainly due to the impact of factors such as rising personnel expenses and price increases for some purchased products, despite the success of efforts to improve the accuracy of estimates through expanding packaging functions and integrating production and sales. In addition, operating profit was up 15.5% year on year to ¥5,565,654,000 despite factors such as the increase in personnel expenses in selling, general and administrative expenses. (Non-operating income, non-operating expenses, and ordinary profit) Non-operating income increased 44.9% year on year to ¥42,866,000. This was primarily due to a rise of ¥17,269,000 in interest income. In addition, non-operating expenses declined 98.9% year on year to ¥880,000. This was primarily due to a decrease of ¥73,188,000 in commission expenses. Consequently, ordinary profit grew 17.6% year on year to ¥5,607,639,000.
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- 7 - (Extraordinary income, extraordinary losses, income taxes and profit attributable to owners of parent) Extraordinary income amounted to ¥44,000 (there was no extraordinary income in the previous year). This was due to the recognition of gain on sale of non-current assets of ¥44,000. Extraordinary losses decreased 88.0% year on year to ¥166,000. This was due to a ¥1,222,000 decrease in loss on retirement of non -current assets. In addition, net profit before taxes increased by 17.7% year on year to ¥5,607,517,000, and after deducting income taxes - current and income tax es - deferred, profit attributable to owners of parent increased by 19.7% year on year to ¥4,175,960,000. (2) Overview of Financial Position for the Period (Current assets) As of the end of the fiscal year under review, current assets were ¥14,292,911,000, an increase of ¥1,076,431,000 from the end of the previous fiscal year. This was mainly due to increases of ¥688,859,000 in contract assets, ¥508,477,000 in cash and deposits, and ¥29,328,000 in advance payments to suppliers included in “Other” under current assets, despite decreases of ¥197,532,000 in accounts receivable - trade and ¥6,082,000 in merchandise. (Non-current assets) As of the end of the fiscal year under review, non-current assets amounted to ¥3,668,954,000, an increase of ¥1,116,451,000 from the end of the previous fiscal year. This was mainly due to increases of ¥728,172,000 in guarantee deposits, ¥269,785,000 in deferred tax assets, etc., despite a decrease of ¥141,442,000 in software. (Current liabilities) As of the end of the fiscal year under review, current liabilities amounted to ¥3,238,944,000, an increase of ¥620,534,000 from the end of the previous fiscal year. This was mainly due to increases of ¥445,938,000 in income taxes payable, ¥144,606,000 in accounts payable - other, as well as ¥33,994,000 in accrued consumption taxes and ¥22,731,000 in accrued expenses included in “Other” under current liabilities, despite a decrease of ¥43,466,000 in accounts payable - trade. (Non-current liabilities) As of the end of the fiscal year under review, non-current liabilities amounted to ¥859,157,000, a decrease of ¥1,004,511,000 from the end of the previous fiscal year. This was mainly due to a decrease of ¥1,070,841,000 in retirement benefit liability as a result of the establishment of a retirement benefit trust and other factors, despite an increase of ¥63,942,000 in provision for retirement benefits for directors (and other officers). (Net assets) As of the end of the fiscal year under review, net assets amounted to ¥13,863,762,000, an increase of ¥2,576,859,000 from the end of the previous fiscal year. This was mainly due to an increase resulting from profit attributable to owners of parent of ¥4,175,960,000 and other factors, despite decreases resulting from dividends of surplus of ¥1,550,877,000 and the purchase of treasury shares of ¥86,801,000 through the “Stock Grant ESOP Trust Account.” (3) Overview of Cash Flows for the Period As of the end of the fiscal year under review, cash and cash equivalents (hereinafter referred to as ‘funds’) amounted to ¥5,710,837,000, a decrease of ¥1,691,522,000 from the end of the previous fiscal year. The following is the consolidated cash flow statement and relevant factors for the reporting fiscal year. (Cash flows from operating activities) Funds provided by operating activities amounted to ¥3,455,722,000 (compared with ¥3,366,167,000 provided in the previous fiscal year). This was mainly due to increases resulting from net profit before taxes of ¥5,607,517,000, depreciation of ¥497,506,000, an increase in accounts payable - other of ¥139,147,000, and other factors, despite decreases resulting from ¥1,000,000,000 used to establish a retirement benefit trust, an increase in accounts receivable and contract assets of ¥490,682,000, and other factors.
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- 8 - (Cash flows from investing activities) Funds used in investing activities amounted to ¥3,509,041,000 (compared with ¥546,114,000 used in the previous fiscal year). This was mainly attributable to ¥2,200,000,000 in payments into time deposits, ¥742,959,000 in payments of guarantee deposits, and ¥395,852,000 in purchase of tangible fixed assets. (Cash flows from financing activities) Funds used in financing activities amounted to ¥1,638,203,000 (compared with ¥2,080,908,000 used in the previous fiscal year). This was mainly due to ¥1,550,168,000 in dividends paid and ¥86,997,000 in purchase of treasury shares. (Reference) Changes in cash flow indicators Fiscal year ended July 31, 2022 Fiscal year ended July 31, 2023 Fiscal year ended July 31, 2024 Fiscal year ended July 31, 2025 Fiscal year ended July 31, 2026 Equity ratio (%) 59.7 63.9 68.4 71.6 77.2 Market value-based equity ratio (%) 430.9 536.4 478.2 448.5 315.1 Debt redemption years (years) 0.0 0.0 0.0 0.0 0.0 Interest coverage ratio (x) 953.6 4,419.8 4,890.1 456.7 4,897.6 Equity ratio: Shareholders’ equity/Total assets Market value-based equity ratio: Market capitalization/Total assets Debt redemption years: Interest-bearing liabilities/Cash flow from operating activities Interest coverage ratio: Cash flow from operating activities/Interest expenses (Note) Market capitalization is calculated by multiplying the closing share price at the fiscal year-end by the number of outstanding shares at the fiscal year-end. (4) Future Outlook The Japanese economy is on a moderate recovery track, driven by improvements in the employment and income environment and an expansion in capital investment. Meanwhile, a semiconductor shortage driven by AI-related demand, as well as inflationary pressure caused by yen depreciation and rising geopolitical risks, including the situation in the Middle East, have continued, and close monitoring of these issues remains necessary. With this situation in mind, the I’ll Group will work to propose solutions that help mid-tier and small-to-medium enterprise customers effectively utilize IT to strengthen their corporate capabilities, while also strengthening research and development with an eye toward our long-term vision of a platform concept. Besides enhancing industry-wise functions of its mainstay Aladdin Office software package, the Company will broaden the appeal of e-commerce products and services such as the CROSS MALL software, which integrates the management of multiple online stores, and CROSS POINT software, which centrally manages reward points, and will pursue its CROSS-OVER strategy, a proposal that fuses "real" and "Web", in order to increase net sales, achieve higher profit margins and improve customer satisfaction. Based on the above, the Company forecasts its consolidated financial results for the fiscal year ending July 31, 2027, using assumptions considered reasonable in light of the information currently available. Projected consolidated results are net sales of ¥22,800,000,000, ordinary profit of ¥ 5,040,000,000 and profit attributable to owners of parent of ¥3,546,000,000. (5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years Our Group regards returning profits to our shareholders as one of our key management priorities. Our basic policy is to distribute profits after comprehensively considering factors such as retained earnings necessary to maintain and strengthen our competitiveness in the industry, level of the return on shareholders’ equity and the dividend payout ratio; however, we consider the dividend payout ratio to be a primary indicator among these. We aim for a dividend payout ratio of 40% as a guideline and 50% as a target. We are committed to improving our profitability and strengthening our financial position while striving to reward our shareholders for their support. In appreciation of the continued support of shareholders, the Company intends to propose a year -end dividend of ¥35 per share, an increase of ¥ 1 from the previous forecast of ¥34 per share, at the 36th Annual General Meeting of
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- 9 - Shareholders scheduled for October 2026. Including the ¥32 per share already paid as an interim dividend, the Company’s annual dividend will total ¥67 per share. As a result, the dividend payout ratio (consolidated) for the current fiscal year is 40.1%. Regarding the dividend for the next fiscal period, as disclosed separately today in “Announcement on Formulation of the Medium-Term Management Plan (for Fiscal Year Ending July 31, 2027–Fiscal Year Ending July 31, 2029),” we have revised our operating profit target downward due to a temporary increase in investment expenses. As a result, net income attributable to owners of the parent will decrease; however, to maintain stable dividends, we plan to pay an interim dividend of ¥35 per share and a year -end dividend of ¥35 per share—the same level as the dividend for the fiscal year ending July 2026 —and and an annual ordinary dividend ¥70 yen per share. The dividend payout ratio (consolidated) is expected to be 49.4%. (6) Business Risks Areas that could have a profound impact on the I’ll Group’s business results, financial position, and stock prices are shown below. Note that the following items have been identified by the I’ll Group as of the end of the reporting fiscal year but that they do not cover all risks related to investment in the Company’s shares. 1) I’ll Group business scope Since its foundation, the I’ll Group has primarily served mid-sized companies and SMEs, providing comprehensive IT solutions to address a wide range of management challenges faced by customers. These solutions include core system development, hardware maintenance, system operation support, network construction, security, content provider services, EC site development, software for integrated management of multiple online stores, software for integrated management of reward points and customers, website utilization support, branding support, and personnel training. Therefore, fluctuations in the environment surrounding mid-tier, small and medium-size companies and the economy may adversely affect the I’ll Group’s business results. Also, if the I’ll Group fails to keep offering products and services that meet the needs of mid-tier, small and medium-size companies, it could adversely affect the group’s business results and business development. 2) Risks involved in the system solutions business The I’ll Group’s mainstay product in the system solutions business is the Company’s original Aladdin Office Series core business package software. In recent years, as companies have been promoting DX (digital transformation), demand for business package software and cloud-based services has increased, while market competition has become increasingly intense. The Group strives to enhance added value through continuous functional improvements and the active adoption of AI technologies. However, if, in addition to competitors enhancing the functionality of their conventional and cloud-based software, competing products incorporating advanced AI technologies, such as generative AI, rapidly emerge and become widespread, intensified price competition, a decline in market share, and other factors could affect the Group’s business performance and business development. 3) Risks involved in the online solutions business The online solutions business includes integrated proposals that leverage our core systems starting with such as our proprietary cloud services “CROSS MALL” and “CROSS POINT,” in conjunction with various market services. Consequently, should any damage occur to customers due to the performance of linked services or system issues involving our services, resulting in liability for damages, this could impact the Group's performance and business development. 4) System troubles The I’ll Group relies on communications networks such as personal computers, computer systems, and cloud services. If computer systems shut down due to a variety of unpredictable factors such as network disruption caused by a natural disaster or accident, temporary server failure due to sudden increased access to the site, or loss of power, the I’ll Group’s operations and business results could be adversely affected. Additionally, the I’ll Group takes appropriate security measures to prevent unauthorized access to its computer systems, however, infection by a computer virus or intrusion by a hacker could result in system failure which could adversely affect the I’ll Group’s business and financial results. 5) Risk of the I'll Group's services becoming obsolete due to competitors or technological innovation
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- 10 - In the information service industry, in which the I’ll Group is involved, the speed of technological innovation is lightning-fast, so in response to that rapid change, the Group’s development department makes efforts to improve existing products and promotes R&D. However, if new technologies and services become prevalent due to faster- than-expected AI technology and other technological innovation, the software and services provided by the I’ll Group could become obsolete, adversely affecting the Company’s business results and business development. Also, product price cuts forced by intensifying competition with rivals or progress achieved by competitor products in enhancing performance could adversely affect the I’ll Group’s business results and business development. 6) Securing and training up engineers In addition to hiring new graduates, the Group continuously employs mid-career engineers and strives to train up engineers. However, increasing demand for engineers has made it increasingly difficult to appropriately secure excellent personnel through mid-career recruiting. Although the I’ll Group’s corporate culture and systems are highly recognized and the Group continues to hire as planned, failure to secure and develop human resources as planned could hinder the Group’s business development and affect the Group’s business growth and performance. In mid- career hiring, we will continue our efforts to secure excellent human resources as we keep hiring excellent engineers in regional areas with the assumption of remote work. 7) Management of confidential information The I’ll Group sometimes handles highly confidential information in its business activities such as information on business partners and personal data that are held by clients. To properly manage such confidential information, the Company has obtained ISMS (ISO27001, ISO27017) certification as well as the Privacy Mark (JISQ15001) and works to strengthen its information management system for employees such as by ensuring that employees are aware of information management based on in-house rules including the Information Security Guidelines and Personal Information Protection Standards and giving them continued training. Also, the Company takes steps to prevent any leak of confidential information by requiring each temporary staff member assigned to the I’ll Group to sign a Nondisclosure Agreement and implementing other measures. However, unauthorized access from the outside, system flaws or failures, human error in handling confidential information, intentional information leaks, deletion, or fraudulent use by employees could force us to lose trust and face damage compensation, depending on how to respond. Such cases could adversely affect the I’ll Group’s business results and business development.
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- 11 - 2. Overview of the Corporate Group As of the end of the fiscal year under review, the Group consists of the Company and its consolidated subsidiary, Web Base Co., and operates two businesses: the system solutions business and the online solutions business. (1) System solutions business The Group provides customers with a broad range of system-related services, including core system development, hardware maintenance, system operation support, network construction, and security management. In this business, Web Base, a consolidated subsidiary, develops and provides maintenance for store management systems for the fashion industry. (2) Online solutions business This business concerns creation and operational support of clients’ websites aimed at sales promotion, providing clients with business analysis and business strategy consultations, giving promotion, building e-commerce websites, providing such software as one for integrating the management of multiple online stores and one for integrating the management of customers and reward points. 3. Basic Thinking on Selection of Accounting Standards The I’ll Group applies the Japanese Generally Accepted Accounting Standards in order to maintain comparability between corporations and over time. Online Consumers (B2C) Physical- store Purchases at Physical Stores E-commerce purchases Omnichannel Head Office/ Stores core operations Physical-store customers Physical-store inventory Physical-store sales E-commerce customers E-commerce inventory E-commerce sales Omnichannel Smartphone apps Multiple Online shops Placing orders on the Internet Placing orders by phone or facsimile Clients (B2B) Making it possible to take correct and swift management decisions CROSS-OVER Synergy Digitally integrating human resources, goods and money in physical-store and e- commerce operations B2B/B2C ECs
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- 12 - 4. Consolidated Financial Statements and Significant Notes Thereto (1) Consolidated Balance Sheets (Thousands of yen) Fiscal 2025 (As of July 31, 2025) Fiscal 2026 (As of July 31, 2026) Assets Current assets Cash and deposits 7,402,360 7,910,837 Notes receivable - trade 41,408 40,764 Accounts receivable - trade 2,823,808 2,626,275 Contract assets 2,365,985 3,054,844 Securities 99,840 99,490 Merchandise 187,559 181,477 Work in process 9,618 9,215 Other 294,843 376,689 Allowance for doubtful accounts (8,944) (6,684) Total current assets 13,216,479 14,292,911 Non-current assets Tangible fixed assets Buildings and structures 493,095 510,933 Accumulated depreciation (108,376) (129,101) Buildings and structures, net 384,718 381,832 Tools, furniture and fixtures 625,948 908,000 Accumulated depreciation (461,016) (504,457) Tools, furniture and fixtures, net 164,931 403,543 Total tangible fixed assets 549,650 785,376 Intangible assets Software 803,924 662,482 Software in progress 77,634 139,322 Other 1,739 1,739 Total intangible assets 883,298 803,544 Investments and other assets Investment securities 146,436 46,716 Guarantee deposits 485,047 1,213,219 Deferred tax assets 436,267 706,053 Other 56,955 119,987 Allowance for doubtful accounts (5,152) (5,943) Total investments and other assets 1,119,553 2,080,032 Total non-current assets 2,552,502 3,668,954 Total assets 15,768,982 17,961,865
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- 13 - (Thousands of yen) Fiscal 2025 (As of July 31, 2025) Fiscal 2026 (As of July 31, 2026) Liabilities Current liabilities Accounts payable - trade 643,065 599,599 Accounts payable - other 309,716 454,322 Deposits received 45,396 50,598 Income taxes payable 719,360 1,165,298 Contract liabilities 111,135 83,811 Provision for bonuses 121,900 131,600 Provision for product warranties 13,759 14,957 Provision for share awards - 13,957 Asset retirement obligations - 13,996 Other 654,076 710,802 Total current liabilities 2,618,410 3,238,944 Non-current liabilities Retirement benefit liability 1,123,898 53,057 Provision for retirement benefits for directors (and other officers) 495,842 559,785 Asset retirement obligations 239,959 243,385 Other 3,967 2,929 Total non-current liabilities 1,863,669 859,157 Total liabilities 4,482,079 4,098,102 Net assets Shareholders’ equity Share capital 354,673 354,673 Capital surplus 319,673 319,673 Retained earnings 10,443,866 13,068,949 Treasury shares (10,449) (97,342) Total shareholders’ equity 11,107,764 13,645,954 Other comprehensive income (cumulative) Remeasurements of defined benefit plans 179,441 218,157 Valuation difference on available-for-sale securities (302) (349) Total other comprehensive income (cumulative) 179,138 217,807 Total net assets 11,286,903 13,863,762 Total liabilities and net assets 15,768,982 17,961,865
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- 14 - (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income) (Thousands of yen) Fiscal 2025 (From August 1, 2024, to July 31, 2025) Fiscal 2026 (From August 1, 2025, to July 31, 2026) Net sales 19,294,870 20,889,513 Cost of sales 8,635,613 8,898,099 Gross profit 10,659,256 11,991,414 Selling, general and administrative expenses 5,840,412 6,425,760 Operating profit 4,818,844 5,565,654 Non-operating income Interest income 4,180 21,450 Commission income 17,676 17,698 Subsidy income 5,388 3,180 Other 2,345 537 Total non-operating income 29,590 42,866 Non-operating expenses Interest expenses 7,370 705 Foreign exchange losses 152 70 Commission expenses 73,292 104 Other 16 - Total non-operating expenses 80,831 880 Ordinary profit 4,767,603 5,607,639 Extraordinary income Gain on sale of non-current assets - 44 Total extraordinary income - 44 Extraordinary losses Loss on retirement of non-current assets 1,388 166 Total extraordinary losses 1,388 166 Net profit before taxes 4,766,214 5,607,517 Income taxes - current 1,248,883 1,719,123 Income taxes - deferred 28,976 (287,565) Total income taxes 1,277,859 1,431,557 Net profit 3,488,354 4,175,960 Profit attributable to owners of parent 3,488,354 4,175,960
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- 15 - (Consolidated Statements of Comprehensive Income) (Thousands of yen) Fiscal 2025 (From August 1, 2024, to July 31, 2025) Fiscal 2026 (From August 1, 2025, to July 31, 2026) Net profit 3,488,354 4,175,960 Other comprehensive income Remeasurements of defined benefit plans, net of tax 124,739 38,716 Valuation difference on available-for-sale securities 16 (46) Total other comprehensive income 124,756 38,669 Comprehensive income 3,613,111 4,214,630 (Breakdown) Comprehensive income attributable to owners of parent 3,613,111 4,214,630 Comprehensive income attributable to non- controlling interests - -
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- 16 - (3) Consolidated Statement of Changes in Equity Fiscal 2025 (From August 1, 2024 to July 31, 2025) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of year 354,673 319,673 8,962,032 (10,080) 9,626,300 Changes during period Dividends of surplus (1,106,733) (1,106,733) Profit attributable to owners of parent 3,488,354 3,488,354 Purchase of treasury shares (3,931,619) (3,931,619) Disposal of treasury shares (899,787) 3,931,250 3,031,462 Transfer from retained earnings to capital surplus 899,787 (899,787) - Net changes in items other than shareholders' equity Total changes during period - - 1,481,834 (369) 1,481,464 Balance at end of year 354,673 319,673 10,443,866 (10,449) 11,107,764 Other comprehensive income (cumulative) Total net assets Accumulated adjustments for retirement benefits Valuation difference on available-for-sale securities Total other comprehensive income (cumulative) Balance at beginning of year 54,701 (319) 54,381 9,680,682 Changes during period Dividends of surplus (1,106,733) Profit attributable to owners of parent 3,488,354 Purchase of treasury shares (3,931,619) Disposal of treasury shares 3,031,462 Transfer from retained earnings to capital surplus - Net changes in items other than shareholders' equity 124,739 16 124,756 124,756 Total changes during period 124,739 16 124,756 1,606,220 Balance at end of year 179,441 (302) 179,138 11,286,903
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- 17 - Fiscal 2026 (From August 1, 2025 to July 31, 2026) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of year 354,673 319,673 10,443,866 (10,449) 11,107,764 Changes during period Dividends of surplus (1,550,877) (1,550,877) Profit attributable to owners of parent 4,175,960 4,175,960 Purchase of treasury shares (86,892) (86,892) Net changes in items other than shareholders' equity Total changes during period - - 2,625,082 (86,892) 2,538,189 Balance at end of year 354,673 319,673 13,068,949 (97,342) 13,645,954 Other comprehensive income (cumulative) Total net assets Accumulated adjustments for retirement benefits Valuation difference on available-for-sale securities Total other comprehensive income (cumulative) Balance at beginning of year 179,441 (302) 179,138 11,286,903 Changes during period Dividends of surplus (1,550,877) Profit attributable to owners of parent 4,175,960 Purchase of treasury shares (86,892) Net changes in items other than shareholders' equity 38,716 (46) 38,669 38,669 Total changes during period 38,716 (46) 38,669 2,576,859 Balance at end of year 218,157 (349) 217,807 13,863,762
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- 18 - (4) Consolidated Statement of Cash Flows (Thousands of yen) Fiscal 2025 (From August 1, 2024, to July 31, 2025) Fiscal 2026 (From August 1, 2025, to July 31, 2026) Cash flows from operating activities Net profit before taxes 4,766,214 5,607,517 Depreciation 390,716 497,506 Increase (decrease) in provision for bonuses 10,200 9,700 Increase (decrease) in allowance for doubtful accounts 5,851 (1,469) Increase (decrease) in provision for product warranties (1,987) 1,198 Increase (decrease) in retirement benefit liabilities 66,879 (14,321) Contribution to the retirement benefit trust - (1,000,000) Increase (decrease) in provision for retirement benefits for directors 60,302 63,942 Increase (decrease) in provision for share awards - 13,957 Expenses for share-based rewards 13,632 - Interest and dividend income (4,180) (21,450) Interest expenses 7,370 705 Commission for impact neutralization trust 73,292 - Gain on sale of non-current assets - (44) Loss on retirement of non-current assets 1,388 166 Decrease (increase) in trade accounts receivables and contract assets (805,248) (490,682) Decrease (increase) in inventories 95,689 6,484 Increase (decrease) in trade payables (3,369) (43,466) Increase (decrease) in contract liabilities 54,169 (27,323) Increase (decrease) in accounts payable - other (103,447) 139,147 Increase (decrease) in accrued expenses 28,819 22,731 Increase (decrease) in deposits received 2,624 5,202 Other (45,526) (37,359) Subtotal 4,613,392 4,732,141 Interest and dividends received 4,180 11,425 Interest paid (7,370) (705) Income and other taxes paid (1,244,036) (1,287,139) Cash flows from operating activities 3,366,167 3,455,722 Cash flows from investing activities Payments into time deposits - (2,200,000) Purchase of tangible fixed assets (53,519) (395,852) Proceeds from sale of tangible fixed assets - 167 Purchase of investment securities (100,000) - Proceeds from redemption of securities - 100,000 Purchase of intangible assets (372,568) (270,604) Payments of guarantee deposits (20,137) (742,959) Proceeds from refund of guarantee deposits 132 254 Other (21) (45) Cash flows from investing activities (546,114) (3,509,041) Cash flows from financing activities Proceeds from disposal of treasury shares 2,985,990 - Purchase of treasury shares (3,935,550) (86,997) Dividends paid (1,106,421) (1,550,168) Other (24,927) (1,038) Cash flows from financing activities (2,080,908) (1,638,203) Net increase (decrease) in cash and cash equivalents 739,143 (1,691,522) Cash and cash equivalents at beginning of period 6,663,216 7,402,360 Cash and cash equivalents at end of period 7,402,360 5,710,837
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- 19 - (5) Notes on Consolidated Financial Statements (Notes on the Premise of a Going Concern) No applicable matters. (Important Matters as the Basis for Preparing Consolidated Financial Statements) 1. Matters concerning scope of consolidation (1) Number of consolidated subsidiaries: 1 Consolidated subsidiary name: Web Base Co. (2) Names of primary non-consolidated subsidiaries No applicable matters. 2. Matters concerning application of the equity method No applicable matters. 3. Matters concerning fiscal years of consolidated subsidiaries The fiscal year-end of consolidated subsidiaries coincides with the consolidated fiscal year-end. 4. Matters concerning the accounting policies (1) Standards and methods for valuation of important assets 1) Securities Available-for-sale securities Securities other than shares that do not have a market value The market value method (with the entire amount of valuation differences included directly into net assets, and the cost of sale calculated using the moving-average method) is adopted. Shares that do not have a market value The cost method based on the moving-average method is adopted. 2) Inventories Merchandise The cost method based on the specific identification method (the balance sheet book value is written down according to a decline in profitability) is adopted. Work in process The cost method based on the specific identification method (the balance sheet book value is written down according to a decline in profitability) is adopted. (2) Depreciation method for important depreciable assets 1) Tangible fixed assets The declining balance method is adopted. However, the straight-line method is adopted for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and for facilities attached to buildings as well as structures that were acquired on or after April 1, 2016. The primary useful life is as follows: Buildings and structures 3 to 50 years Tools, furniture and fixtures 2 to 20 years 2) Intangible assets Software used by the Company The straight-line method is used according to the usable period (5 years) set in-house. Software for sale on the market The amount written off according to expected sales is compared with the equal distribution amount according to the expected sales period (3 years), and the larger one is booked.
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- 20 - (3) Standards for booking important allowances 1) Allowance for doubtful accounts To prepare for losses due to irrecoverable trade and other receivables, the estimated irrecoverable amount is booked, with loan loss rates considered for general accounts receivable and collectability considered individually for doubtful accounts receivable and other specific receivables. 2) Provision for bonuses To prepare for employee bonus payments, the amount that falls within the fiscal year under review is booked out of the estimated payment amount. 3) Provision for product warrantees To prepare for free product repairs, a future estimated amount is booked according to past results. 4) Provision for retirement benefits for directors To prepare to pay retirement benefits for directors, the amount to be paid at the end of the period is booked according to the bylaws for retirement benefits for directors. 5) Provision for share awards To provide for the future delivery of the Company’s shares to employees, the Company records the estimated amount of share awards based on the points allocated to employees in accordance with the share delivery rules of the Stock Grant ESOP Trust. (4) Accounting method for retirement benefits 1) Method to measure the estimated retirement benefit amount at fiscal year end In calculating projected benefit obligation, the method to measure the estimated retirement benefit amount at the end of the fiscal year under review is based on the benefit calculation formula criteria. 2) Method to recognize actuarial differences as expenses Actuarial differences are each recognized as expenses from the fiscal year that follows the year when they arise, under the straight-line method using certain years within the average of remaining service years of employees (3 years). (5) Standards for recording important revenue and expenses 1) Customization, installation support, etc. Revenue from such operations as customization, installation support results from design, development and installation support related to core operational systems such as under software contracted development agreements. The Company maintains that such performance obligations will be fulfilled over a certain period of time, estimates progress in the fulfilment and recognizes revenue over a certain period of time according to the estimate. The method of estimating the progress is to calculate the ratio of incurred cost to estimated total cost. 2) Licenses, hardware equipment, etc. Revenue from the sale of licenses and hardware equipment is recognized according to the amount promised in the contract with each client at the appropriate time, on the assumption that performance obligation is met upon the delivery of the relevant license or hardware equipment to the client. 3) Service use and system maintenance Revenue generated from service use and system maintenance is from the provision of services such as cloud service operations and maintenance. As these are routine or recurring services, the Company maintains that such performance obligations will be fulfilled over time and recognizes revenue by proportionally dividing the amount promised in the contract with each client according to the contract period. 4) Other The Company provides sales services for office-related and other products. Of these transactions, the Company recognizes revenue from those classified as agent transactions on a net basis by deducting the amount paid to suppliers and other parties from the gross payment received from the client. The ordinary due date for all these contracts is generally the end of the month that follows the month in which acceptance inspection is completed or the month in which services are provided, and they do not include any significant financial element.
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- 21 - (6) Scope of funds in consolidated statement of cash flows This consists of cash on hand, deposits that can be withdrawn as needed, and easily redeemable short- term investments with minimal risk of value fluctuation and a redemption date due within 3 months of the acquisition date. (7) Other significant matters for the preparation of consolidated financial statements Accounting treatment of the Stock Grant ESOP Trust account Shares of the Company acquired through the Stock Grant ESOP Trust account are accounted for as “treasury shares.” (Notes on Additional Information) (Stock Grant ESOP Trust) In September 2025, the Company introduced a new incentive plan (hereinafter referred to as “this Program”) for its employees (hereinafter referred to as “employees”) to enhance their awareness of contributing to the Company’s medium- to long-term performance improvement and corporate value growth. 1. Transaction Overview This Program adopts a structure utilizing a Stock Grant ESOP (Employee Stock Ownership Plan) Trust (hereinafter referred to as the “ESOP Trust”). The ESOP Trust is an incentive plan modeled after the U.S. ESOP system, whereby shares of the Company acquired by the ESOP Trust are granted to employees who satisfy certain requirements. Through the introduction of this Program, employees may benefit from increases in the Company’s share price, which is expected to encourage employees to perform their duties with greater awareness of the share price and to further motivate employees. Voting rights associated with the Company’s shares held as trust property by the ESOP Trust are exercised in accordance with the intentions of the employee beneficiaries. This mechanism serves as a measure to enhance corporate value by encouraging employee participation in management. 2. Company Shares Remaining in Trust The Company shares remaining in the trust are recorded as treasury shares in the net assets section at their book value in the trust (excluding incidental expenses). The book value and number of these treasury shares at the end of the fiscal year under review were ¥86,801,000 and 29,700 shares, respectively. (Establishment of a retirement benefit trust) In July 2026, the Company established a retirement benefit trust and contributed ¥1,000,000,000 in cash and deposits. As a result, retirement benefit liability decreased by the same amount. (Notes on Segment Information) Because the I'LL Group is a single segment entity, this section is omitted.
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- 22 - (Notes on Information on Net Profit Per Share) Fiscal 2025 (From August 1, 2024 to July 31, 2025) Fiscal 2026 (From August 1, 2025 to July 31, 2026) Net assets per share ¥450.94 ¥554.56 Net profit per share ¥141.32 ¥167.01 (Notes) 1. Diluted net profit per share is not shown because there are no dilutive shares. 2. In calculating net assets per share, the Company's shares held by the Stock Grant ESOP Trust Account are included in treasury shares deducted from the number of shares issued at the end of the fiscal year (no shares in the previous fiscal year; 29,700 shares in the fiscal year under review). In addition, in calculating net profit per share, the Company's shares acquired and disposed of by the Impact Neutralization Trust during the fiscal year ended July 31, 2025 (year-end number of shares: -; average number of shares during the fiscal year: 346,470) and the Company's shares acquired through the “Stock Grant ESOP Trust Account” during the fiscal year ended July 31, 2026 (year-end number of shares: 29,700; average number of shares during the fiscal year: 25,773) are included in treasury shares deducted in calculating the average number of shares during each fiscal year. 3. The basis for calculating net assets per share is as follows: Fiscal 2025 (As of July 31, 2025) Fiscal 2026 (As of July 31, 2026) Total net assets (Thousands of yen) 11,286,903 13,863,762 Amount deducted from total net assets (Thousands of yen) - - Net assets at end of the fiscal year related to common shares (Thousands of yen) 11,286,903 13,863,762 Number of common shares used in calculating net assets per share (shares) 25,029,489 24,999,754 4. The basis for calculating net profit per share is as follows: Fiscal 2025 (From August 1, 2024 to July 31, 2025) Fiscal 2026 (From August 1, 2025 to July 31, 2026) Profit attributable to owners of parent (Thousands of yen) 3,488,354 4,175,960 Amount not attributable to common shareholders (Thousands of yen) - - Profit attributable to owners of parent related to common shares (Thousands of yen) 3,488,354 4,175,960 Average number of common share during the period (Shares) 24,683,396 25,003,709 (Notes on Significant Subsequent Events) No applicable matters.
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- 23 - (Notes on Revenue Recognition) Categorized information of revenue from contracts with customers Our Group’s structure is focused on a single segment, while our business encompasses two distinct business categories: the system solutions business and the online solutions business. Financial information concerning revenue from contracts with customers is disclosed by business. Fiscal 2025 (From August 1, 2024 to July 31, 2025) The following is a breakdown of revenue from contracts with customers, categorized by product or service type. (Thousands of yen) System Solutions Business Online Solutions Business Total Flow-type merchandise Licensing, customization, installation support, etc. 7,705,657 119,508 7,825,166 Hardware, etc. 3,009,295 4,378 3,013,674 Other 71,882 64,896 136,779 Stock-type merchandise Service use and system maintenance 6,202,264 2,116,985 8,319,249 Revenue from contracts with customers 16,989,100 2,305,769 19,294,870 The following is a breakdown of revenue from contracts with customers, categorized by the timing of revenue recognition. (Thousands of yen) System Solutions Business Online Solutions Business Total Products and services transferred at a single point in time 3,846,340 69,275 3,915,615 Products and services transferred over a period of time 13,142,760 2,236,494 15,379,254 Revenue from contracts with customers 16,989,100 2,305,769 19,294,870 Fiscal 2026 (From August 1, 2025 to July 31, 2026) The following is a breakdown of revenue from contracts with customers, categorized by product or service type. (Thousands of yen) System Solutions Business Online Solutions Business Total Flow-type merchandise Licensing, customization, installation support, etc. 9,061,952 93,243 9,155,195 Hardware, etc. 2,321,386 2,608 2,323,994 Other 58,864 64,919 123,784 Stock-type merchandise Service use and system maintenance 6,967,638 2,318,900 9,286,539 Revenue from contracts with customers 18,409,842 2,479,671 20,889,513 The following is a breakdown of revenue from contracts with customers, categorized by the timing of revenue recognition. (Thousands of yen) System Solutions Business Online Solutions Business Total Products and services transferred at a single point in time 3,176,961 67,528 3,244,489 Products and services transferred over a period of time 15,232,881 2,412,143 17,645,024 Revenue from contracts with customers 18,409,842 2,479,671 20,889,513
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- 24 - 5. Other (1) Director Changes For details of changes in Directors, please refer to the “Notice Regarding Revisions to the Executive Officer System and Personnel Changes Among Directors and Executive Officers” published today. (2) Other No applicable matters.