Interim report
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Consolidated Financial Results for the Six Months Ended September 30, 2025 [Japanese GAAP] November 13, 2025 Company name: Synchro Food Co., Ltd. Stock exchange listing: Tokyo Stock Exchange Code number: 3963 URL: https://www.synchro-food.co.jp Representative: Shinichi Fujishiro, President and CEO and Chief of Operating for the Business Department Contact: Masaki Morita, Director & Chief of Operating for the Administrative Department Phone: +81-3-5768-9522 Scheduled date of filing semi-annual securities report: November 13, 2025 Scheduled date of commencing dividend payments: – Availability of financial results briefing materials: Available Schedule of financial results briefing session: Scheduled (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Six Months Ended September 30, 2025 (April 1, 2025 - September 30, 2025) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Million yen % Million yen % Million yen % Million yen % September 30, 2025 1,852 (5.8) 362 (38.2) 319 (45.5) 209 (46.9) September 30, 2024 1,967 13.0 585 24.4 586 24.7 394 22.5 Note: Comprehensive income: Six months ended September 30, 2025: 209 million yen [(46.8)%] Six months ended September 30, 2024: 393 million yen [21.8%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 7.46 – September 30, 2024 14.65 14.65 (2) Consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % As of September 30, 2025 11,695 4,708 40.1 As of March 31, 2025 6,130 5,326 86.9 Reference: Equity : As of September 30, 2025: 4,689 million yen As of March 31, 2025: 5,326 million yen Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.
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2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 – 0.00 – 15.00 15.00 Fiscal year ending March 31, 2026 – 0.00 Fiscal year ending March 31, 2026 (Forecast) – – – Notes: 1. Revision to the forecast for dividends announced most recently: No 2. The dividend forecast for the fiscal year ending March 31, 2026 has not yet been determined. 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 - March 31, 2026) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 5,600 41.7 685 (37.6) 647 (40.4) 418 (36.6) 14.35 Note: Revision to the financial results forecast announced most recently: Yes * Notes: (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 2 companies (Horizon 14 Co., Ltd. and ideal inc.) Excluded: – ( ) (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued and outstanding shares (common shares) 1) Total number of issued and outstanding shares at the end of the period (including treasury shares): September 30, 2025: 29,123,000 shares March 31, 2025: 29,123,000 shares 2) Total number of treasury shares at the end of the period: September 30, 2025: 1,080,412 shares March 31, 2025: 327,842 shares 3) Average number of shares during the period: Six months ended September 30, 2025: 28,060,966 shares Six months ended September 30, 2024: 26,909,627 shares
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* Semi-annual financial results reports are exempt from interim audit conducted by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes The financial results forecast and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable, and are not intended as the Company’s guarantee to achieve them. Actual result s may differ significantly due to various factors. For conditions underlying the results forecast and matters of note on the use of the results forecast and other material, please see “1. Qualitative Information on Semi-annual Financial Results (3) Explana tion of Consolidated Financial Results Forecast and Other Forward - looking Information” on page 4 of Attachments.
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1 Table of Contents - Attachments 1. Qualitative Information on Semi-annual Financial Results ................................................................. 2 (1) Explanation of Operating Results ................................................................................................... 2 (2) Explanation of Financial Position ................................................................................................... 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information. 4 2. Semi-annual Consolidated Financial Statements and Principal Notes ................................................ 5 (1) Semi-annual Consolidated Balance Sheets ..................................................................................... 5 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income ............................. 7 Semi-annual Consolidated Statements of Income ........................................................................... 7 Semi-annual Consolidated Statements of Comprehensive Income ................................................. 8 (3) Semi-annual Consolidated Statements of Cash Flows .................................................................... 9 (4) Notes to Semi-annual Consolidated Financial Statements ............................................................ 10 (Notes on going concern assumption) ............................................................................................ 10 (Notes when there are significant changes in amounts of equity) .................................................. 10 (Semi-annual consolidated balance sheets) .................................................................................... 11 (Semi-annual consolidated statements of income) ......................................................................... 11 (Semi-annual consolidated statements of cash flows) .................................................................... 11 (Segment information, etc.) ............................................................................................................ 12 (Business combinations, etc.) ......................................................................................................... 14 (Revenue recognition) ..................................................................................................................... 15
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2 1. Qualitative Information on Semi-annual Financial Results (1) Explanation of Operating Results During the six months ended September 30, 2025, the Group’s financial results were net sales of 1,852,657 thousand yen (down 5.8% year on year), operating profit of 362,045 thousand yen (down 38.2% year on year), ordinary profit of 319,352 thousand yen (down 45.5% year on year), and profit attributable to owners of parent of 209,501 thousand yen (down 46.9% year on year). Net sales by service category comprises 1,471,410 thousand yen in Service in Stage 3 (operating) (down 3.7% year on year), 250,361 thousand yen (down 17.0% year on year) in Service in Stages 1, 2, 4 (preparation, store opening and closing business), and 130,886 thousand yen (down 4.9% year on year) in Other. Status by segment is as follows. During the six months ended September 30, 2025, the Company acquired Horizon 14 Co., Ltd. and ideal inc., which became consolidated subsidiaries, resulting in the addition of a new segment, the “Property Management business.” Following this change, the Group’s reporting segments were reclassified into three categories: the “Media Platform business,” the “M&A Services business," and the “Property Management business.” As the acquisition date is September 30, 2025, only the balance sheets of the acquired companies have been included in the consolidation for the six-month period. Accordingly, the consolidated statements of income for the period do not include any operating results of the acquired companies. [Media Platform business] The Media Platform business comprises services offered to restaurant operators through Inshokuten.com as well as services offered to related business operators including real estate agents and food suppliers who offer their services via Inshokuten.com. As of September 30, 2025, the number of registered Inshokuten.com members was 328,591 (up 7.4% year on year), showing steady growth, helped by a continued steady trend in store opening, refurbishment, changes in business format, and other activities. In addition, the number of real estate agents, interior furnishing service providers and related business operators who provide services via Inshokuten.com, increased steadily to 5,257 companies (up 4.0% year on year) (Note). As a result of the above, net sales in the Media Platform business were 1,742,948 thousand yen (down 2.6% year on year), and segment profit was 362,017 thousand yen (down 31.0% year on year). [M&A Services business] This business comprises M&A -related services such as business transfers and share transfers, and support services to facilitate fully-furnished asset transfers, where the business can be transferred without removing the furnishings of the former restaurant operator. The number of inquiries for both t he M&A Services business and fully-furnished asset transfers remained at high levels, while deal conversion rates improved. Sales showed signs of recovery as deal closings progressed, including those delayed from the three months ended June 30, 2025. As a result of the above, net sales in the M&A Services business were 109,969 thousand yen (down 38.3% year on year), and segment profit was 6,795 thousand yen (down 87.3% year on year). Note: This is the number of operators registered as real estate agents, interior furnishing service providers, and food suppliers as of September 30, 2025. ( The number of interior furnishing service providers increased due to the start of integrated operations for Tenpodesign.com and Naisoh-kenchiku.com in May 2025.)
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3 (2) Explanation of Financial Position (i) Financial position (Assets) Current assets at the end of the six months ended September 30, 2025 decreased by 1,402,567 thousand yen from the end of the previous fiscal year to 4,280,646 thousand yen. The decrease was mainly attributable to a decline in cash and deposits (a decrease of 1,304,225 thousand yen from the end of the previous fiscal year) due to the acquisition of shares of Horizon 14 Co., Ltd. Non-current assets increased by 6,967,180 thousand yen from the end of the previous fiscal year to 7,414,643 thousand yen. The increase was mainly attributable to an increase in goodwill (an increase of 5,248,620 thousand yen from the end of the previous fiscal year) resulting from the same acquisition. As a result of the above, total assets amounted to 11,695,290 thousand yen (an increase of 5,564,613 thousand yen from the end of the previous fiscal year). (Liabilities) Current liabilities at the end of the six months ended September 30, 2025 increased by 1,025,343 thousand yen from the end of the previous fiscal year to 1,797,918 thousand yen. The main factors were increases in contract liabilities (an increase of 374,061 thousand yen from the end of the previous fiscal year) and current portion of long-term borrowings (an increase of 571,440 thousand yen from the end of the previous fiscal year) resulting from the acquisition of shares of Horizon 14 Co., Ltd. Non -current liabilities increased by 5,156,459 thousand yen from the end of the previous fiscal year to 5,188,449 thousand yen. The increase was mainly attributable to an increase in long-term borrowings (an increase of 3,428,560 thousand yen from the end of the previous fiscal year) associated with the same acquisition. As a result of the above, total liabilities amounted to 6,986,368 thousand yen (an increase of 6,181,803 thousand yen from the end of the previous fiscal year). (Net assets) Net assets at the end of the six months ended September 30, 2025 decreased by 617,190 thousand yen from the end of the previous fiscal year to 4,708,922 thousand yen. The decrease was mainly attributable to a decline in retained earnings (a decrease of 222,426 thousand yen from the end of the previous fiscal year) as a result of dividend payments, and an increase in treasury shares (an increase of 415,699 thousand yen from the end of the previous fiscal year) due to purchase of treasury shares. (ii) Cash flows The balance of cash and cash equivalents (“net cash”) at the end of the six months ended September 30, 2025 was 3,643,460 thousand yen, a decrease of 1,304,235 thousand yen from the end of the previous fiscal year. The status of cash flows in the six months ended September 30, 2025 and their underlying factors are as follows. (Cash flows from operating activities) Net cash provided by operating activities was 627,466 thousand yen (412,698 thousand yen provided in the same period of the previous fiscal year). This was mainly attributable to the reporting of profit before income taxes of 319,352 thousand yen and income taxes paid of 129,290 thousand yen. (Cash flows from investing activities) Net cash used in investing activities was 4,160,922 thousand yen (1,249 thousand yen used in the same period of the previous fiscal year). This was mainly attributable to purchase of shares of subsidiaries resulting in change in scope of consolidation of 4,160,933 thousand yen. (Cash flows from financing activities) Net cash provided by financing activities was 2,229,220 thousand yen (185,897 thousand yen used in the same period of the previous fiscal year). This was mainly attributable to proceeds from long -term
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4 borrowings of 4,000,000 thousand yen, offset by purchase of treasury shares of 418,096 thousand yen and dividends paid of 409,895 thousand yen. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information As for the financial results forecast for the fiscal year ending March 31, 2026, the Company has revised the full-year forecast announced on May 14, 2025 in the “Financial Results for the Fiscal Year Ended March 31, 2025,” in connection with the consolidation of Horizon 14 Co., Ltd. as a subsidiary. For further details, please refer to the “Notice Regarding the Revision of the Full -Year Financial Results Forecast” announced on November 13, 2025.
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5 2. Semi-annual Consolidated Financial Statements and Principal Notes (1) Semi-annual Consolidated Balance Sheets (Thousand yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 4,997,759 3,693,533 Accounts receivable - trade 181,151 216,788 Inventories *1 14,910 *1 13,884 Prepaid expenses 52,522 318,729 Deposits paid 430,995 – Other 16,505 50,375 Allowance for doubtful accounts (10,627) (12,665) Total current assets 5,683,214 4,280,646 Non-current assets Property, plant and equipment Buildings, net 47,387 72,960 Tools, furniture and fixtures, net 12,391 11,050 Land – 56,852 Total property, plant and equipment 59,778 140,863 Intangible assets Goodwill 54,715 5,303,335 Customer-related intangible assets 55,185 48,287 Software – 6,820 Total intangible assets 109,901 5,358,444 Investments and other assets Investment securities 14,952 14,888 Investments in capital 300 355 Leasehold and guarantee deposits 114,797 1,716,007 Deferred tax assets 139,366 156,744 Other 8,367 27,341 Total investments and other assets 277,783 1,915,336 Total non-current assets 447,462 7,414,643 Total assets 6,130,677 11,695,290
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6 (Thousand yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Accounts payable - trade 30,256 21,550 Current portion of long-term borrowings – 571,440 Accounts payable - other 61,966 127,981 Accrued expenses 47,640 75,628 Income taxes payable 146,687 162,790 Accrued consumption taxes 114,758 36,230 Contract liabilities 332,450 706,511 Deposits received 34,003 95,740 Other 4,811 44 Total current liabilities 772,575 1,797,918 Non-current liabilities Long-term borrowings – 3,428,560 Long-term guarantee deposits – 1,726,101 Asset retirement obligations 31,989 33,788 Total non-current liabilities 31,989 5,188,4449 Total liabilities 804,564 6,986,368 Net assets Shareholders' equity Share capital 882,301 882,301 Capital surplus 870,368 871,719 Retained earnings 3,730,220 3,507,794 Treasury shares (158,009) (573,709) Total shareholders' equity 5,324,880 4,688,105 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,232 1,188 Total accumulated other comprehensive income 1,232 1,188 Share acquisition rights – 19,628 Total net assets 5,326,112 4,708,922 Total liabilities and net assets 6,130,677 11,695,290 *2 2 *2 2 *2 2 *2 2
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7 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statements of Income (Thousand yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Net sales 1,967,169 1,852,657 Cost of sales 317,228 370,114 Gross profit 1,649,940 1,482,543 Selling, general and administrative expenses *1 1,063,981 *1 1,120,497 Operating profit 585,959 362,045 Non-operating income Interest income 351 4,714 Dividend income 6 6 Settlement income 1,500 – Compensation for damage income – 3,840 Other 35 – Total non-operating income 1,892 8,560 Non-operating expenses Interest expenses – 3,857 Settlement payments 1,500 – Commission for purchase of treasury shares – 2,396 Loan expenses – 45,000 Total non-operating expenses 1,500 51,254 Ordinary profit 586,352 319,352 Extraordinary income Gain on reversal of share acquisition rights 86 – Total extraordinary income 86 – Profit before income taxes 586,438 319,352 Income taxes - current 182,271 91,916 Income taxes - deferred 9,788 17,934 Total income taxes 192,059 109,851 Profit 394,378 209,501 Profit attributable to owners of parent 394,378 209,501
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8 Semi-annual Consolidated Statements of Comprehensive Income (Thousand yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Profit 394,378 209,501 Other comprehensive income Valuation difference on available-for-sale securities (602) (60) Total other comprehensive income (602) (60) Comprehensive income 393,776 209,441 Comprehensive income attributable to Comprehensive income attributable to owners of parent 393,776 209,441 Comprehensive income attributable to non-controlling interests – –
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9 (3) Semi-annual Consolidated Statements of Cash Flows (Thousand yen) For the six months ended September 30, 2024 For the six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 586,438 319,352 Depreciation 9,319 5,096 Amortization of goodwill 20,878 7,030 Amortization of customer-related assets 9,669 6,898 Share-based payment expenses 2,256 10,819 Increase (decrease) in allowance for doubtful accounts (191) 1,388 Interest and dividend income (357) (4,720) Settlement income (1,500) – Compensation for damage income – (3,840) Settlement payments 1,500 – Expenses for treasury stocks – 2,396 Decrease (increase) in trade receivables 6,369 9,792 Decrease (increase) in inventories (19,617) 1,026 Decrease (increase) in prepaid expenses (13,468) (51,599) Decrease (increase) in income taxes receivable 1,932 – Decrease (increase) in deposits paid – 430,995 Increase (decrease) in trade payables (12,906) (16,758) Increase (decrease) in contract liabilities 23,594 71,541 Increase (decrease) in accounts payable - other (35,259) 22,700 Increase (decrease) in accrued expenses (7,971) (4,292) Increase (decrease) in accrued consumption taxes 46,056 (107,205) Other, net (4,018) 47,572 Subtotal 612,722 748,195 Interest and dividends received 357 4,720 Settlement received 1,500 – Proceeds from compensation for damage – 3,840 Settlement paid (1,500) – Income taxes paid (200,381) (129,290) Net cash provided by (used in) operating activities 412,698 627,466 Cash flows from investing activities Payments into time deposits (50,062) (50,062) Proceeds from withdrawal of time deposits 50,062 50,073 Purchase of property, plant and equipment (1,250) – Purchase of shares of subsidiaries resulting in change in scope of consolidation – (4,160,933) Net cash provided by (used in) investing activities (1,249) (4,160,922) Cash flows from financing activities Proceeds from long-term borrowings – 4,000,000 Repayments of long-term borrowings – (962,415) Proceeds from issuance of share acquisition rights – 19,628 Proceeds from issuance of shares resulting from exercise of share acquisition rights 53,520 – Purchase of treasury shares – (418,096) Dividends paid (239,417) (409,895) Net cash provided by (used in) financing activities (185,897) 2,229,220 Net increase (decrease) in cash and cash equivalents 225,551 (1,304,235) Cash and cash equivalents at beginning of period 4,144,235 4,947,696 Cash and cash equivalents at end of period 4,369,787 3,643,460
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10 (4) Notes to Semi-annual Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes when there are significant changes in amounts of equity) I For the six months ended September 30, 2024 1. Amount of dividends paid Resolution Type of shares Total dividends (Thousand yen) Dividends per share (Yen) Record date Effective date Source of dividends June 25, 2024 Annual General Meeting of Shareholders Common shares 268,042 10 March 31, 2024 June 26, 2024 Retained earnings (Note) The dividends per share include a commemorative dividend of 5 yen in commemoration of the 20th anniversary of the Company. 2. Dividends whose record date falls in the six months ended September 30, 2024, and whose effective date falls on the last day of the six months ended September 30, 2024. Not applicable 3. Significant changes in amounts of equity Not applicable II. For the six months ended September 30, 2025 1. Amount of dividends paid Resolution Type of shares Total dividends (Thousand yen) Dividends per share (Yen) Record date Effective date Source of dividends June 25, 2025 Annual General Meeting of Shareholders Common shares 431,927 15 March 31, 2025 June 26, 2025 Retained earnings 2. Dividends whose record date falls in the six months ended September 30, 2025, and whose effective date falls on the last day of the six months ended September 30, 2025. Not applicable 3. Significant changes in amounts of equity (Acquisition and disposal of treasury shares) Based on a resolution at a meeting of the Board of Directors held on February 14, 2025, the Company acquired 782,600 treasury shares during the six months ended September 30, 2025. In addition, based on a resolution at a meeting of the Board of Directors held on June 25, 2025, the Company disposed of 30,030 treasury shares as restricted stock compensation. As a result, the amount of treasury shares increased by 415,699 thousand yen over the six months ended September 30, 2025 to 573,709 thousand yen at the end of the period.
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11 (Semi-annual consolidated balance sheets) *1. A breakdown of inventories is as follows. As of March 31, 2025 As of September 30, 2025 Merchandise 1,570 thousand yen 7,212 thousand yen Work in process 13,339 thousand yen 6,655 thousand yen Supplies ̶ thousand yen 16 thousand yen *2. Financial Covenants. The Company has entered into a loan agreement with Mizuho Bank, Ltd. This agreement includes the following financial covenants: ① For the fiscal year ending March 2027 and thereafter, the Company shall not report operating losses for two consecutive periods in the consolidated statement of income. ② Maintain the amount of net assets on the consolidated balance sheet at 75% or more of the amount of net assets as of the end of the fiscal year ending March 2025 and the immediately preceding consolidated fiscal year. ③ From the fiscal year ending March 2027 onwards, the amount of net assets on the consolidated balance sheet must exceed the amount of goodwill. The outstanding loan balance is as follows. As of March 31, 2025 As of September 30, 2025 Current portion of long-term borrowings － thousand yen 571,440 thousand yen Long-term borrowings － thousand yen 3,428,560 thousand yen (Semi-annual consolidated statements of income) *1. Main expense items and amounts thereof in selling, general and administrative expenses are as follows. For the six months ended September 30, 2024 For the six months ended September 30, 2025 Salaries and allowances 489,479 thousand yen 526,433 thousand yen Provision of allowance for doubtful accounts 6,690 thousand yen 7,925 thousand yen (Semi-annual consolidated statements of cash flows) *1. Reconciliation between the amounts of cash and cash equivalents as of the end of the six months ended September 30 and the amounts of the item reported in the semi-annual consolidated balance sheet is as follows: As of September 30, 2024 As of September 30, 2025 Cash and deposits 4,419,850 thousand yen 3,693,533 thousand yen Time deposits maturing in more than three months (50,062) thousand yen (50,073) thousand yen Cash and cash equivalents 4,369,787 thousand yen 3,643,460 thousand yen
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12 (Segment information, etc.) [Segment information] I For the six months ended September 30, 2024 1. Information on net sales and profit by reportable segment and disaggregation of revenue (Thousand yen) Reportable segment Adjustment (Note 1) Amount recorded in the semi- annual consolidated statements of income (Note 2) Media platform M&A services Total Net sales Advertising and related services (Note 4) 1,372,270 – 1,372,270 – 1,372,270 Marketing services (Note 5) 31,684 – 31,684 – 31,684 Pay-for-performance services (Note 6) 128,521 161,973 290,495 (6) 290,489 Other (Note 7) 256,545 16,179 272,724 – 272,724 Revenue from contracts with customers 1,789,022 178,153 1,967,175 (6) 1,967,169 Net sales to external customers 1,789,022 178,147 1,967,169 – 1,967,169 Inter-segment sales or transfers – 6 6 (6) – Total 1,789,022 178,153 1,967,175 (6) 1,967,169 Segment profit 524,696 53,302 577,999 7,960 585,959 Other items Depreciation (Note 3) 18,600 388 18,988 – 18,988 Amortization of goodwill (Note 3) 19,959 918 20,878 – 20,878 Notes: 1. Adjustment for segment profit refers to the elimination of inter-segment transactions. 2. The total amount of segment profit is adjusted with operating profit in the semi -annual consolidated statements of income. 3. Assets are not specifically allocated to reportable segments, but depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill are allocated. 4. Advertising and related services primarily generate revenue from posting of recruitment ads and store property information, and services that enhance the effects of ads posted. 5. Marketing services primarily generate revenue from Internet surveys on restaurants, and the distribution of e-mail newsletters to members of Inshokuten.com. 6. Pay-for-performance services mainly comprise revenue from matching services in Inshokuten.com, revenue from opening fees in the food truck sharing and matching business and M&A Services business in subsidiaries. 7. Other mainly comprises revenue from e-mail newsletter delivery services to job seekers and monthly subscription services.
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13 II For the six months ended September 30, 2025 1. Information on net sales and profit by reportable segment and disaggregation of revenue (Thousand yen) Reportable segment Adjustment (Note 1) Amount recorded in the semi-annual consolidated statements of income (Note 2) Media platform M&A services Property management Total Net sales Advertising and related services (Note 4) 1,301,606 – – 1,301,606 – 1,301,606 Marketing services (Note 5) 19,090 – – 19,090 – 19,090 Pay-for-performance services (Note 6) 155,698 90,262 – 245,961 – 245,961 Other (Note 7) 266,553 19,446 – 285,999 – 285,999 Revenue from contracts with customers 1,742,948 109,709 – 1,852,657 – 1,852,657 Net sales to external customers 1,742,948 109,709 – 1,852,657 – 1,852,657 Inter-segment sales or transfers – 260 – 260 (260) － Total 1,742,948 109,969 – 1,852,917 (260) 1,852,657 Segment profit 362,017 6,795 – 368,813 (6,767) 362,045 Other items Depreciation (Note 3) 11,623 372 – 11,995 – 11,995 Amortization of goodwill (Note 3) 6,112 918 – 7,030 – 7,030 Notes: 1. Adjustment for segment profit or loss refers to the elimination of inter-segment transactions. 2. The total amount of segment profit is adjusted with operating profit in the semi -annual consolidate statements of income. 3. Assets are not specifically allocated to reportable segments, but depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill are allocated. 4. Advertising and related services primarily generate revenue from posting of recruitment ads and store property information, and services that enhance the effects of ads posted. 5. Marketing services primarily generate revenue from Internet surveys on restaurants, and the distribution of e-mail newsletters to members of Inshokuten.com. 6. Pay-for-performance services mainly comprise revenue from matching services in Inshokuten.com, revenue from opening fees in the food truck sharing and matching business and M&A Services business in subsidiaries. 7. Other mainly comprises revenue from e-mail newsletter delivery services to job seekers, monthly subscription services, and sale of goods. 2. Notes on changes in reporting segments During the six months ended September 30, 2025, the Company acquired Horizon 14 Co., Ltd. and ideal inc., which became consolidated subsidiaries, resulting in the addition of a new segment, the “Property Management business.” Following this change, the Group’s reporting segments were reclassified into three categories: the “Media Platform business,” the “M&A Services business," and the “Property Management business.” 3. Information on impairment loss on non-current assets and goodwill by reportable segment (Significant change in amount of goodwill) During the six months ended September 30, 2025, the Company acquired all shares of Horizon 14 Co., Ltd. within the “Property Management business” segment and newly included the company in the scope of consolidation. Goodwill arising from this transaction was 5,255,651 thousand yen. The amount of goodwill has been tentatively calculated, as the allocation of the acquisition cost has not yet been completed.
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14 (Business combinations, etc.) (Business combination through acquisition) The Company acquired all shares of Horizon 14 Co., Ltd. on September 30, 2025, making it a consolidated subsidiary. In connection with this share acquisition, ideal inc., a wholly owned subsidiary of Horizon 14 Co., Ltd., became a second-tier subsidiary of the Company. 1. Summary of the business combination (1) Name and business description of the acquired company Name of the acquired company Horizon 14 Co., Ltd. Business description Commercial real estate-related business Name and business description of the subsidiary of the acquired company Name of the acquired company ideal inc. Business description Commercial real estate-related business (2) Main reason for the business combination Since its founding, the Company has operated Inshokuten.com, a media platform that supports restaurant owners and prospective business owners. In 2018, the Company welcomed WIT. CO., LTD. into the Group and expanded into M&A services specialized in the food and beverage industry. From property searches and matching with interior contractors to recruitment, fully-furnished asset transfers, M&A, and more, the Company provides a comprehensive business support platform that covers every stage from store opening to closing. Today, the platform is used by many store operators, not only in the food and beverage industry but also in various other industries. (Number of members as of the end of August 2025: 326,000) Under its vision of “Spreading happiness generated from various eating and drinking experiences throughout Japan and all over the world,” the Company has set targets of consolidated net sales of 10 billion yen and consolidated operating profit of 3 billion yen for the fiscal year ending March 31, 2030. The Company positions the “store business- related field,” which it has focused on since its founding, as one of its most important management themes. ideal inc., a subsidiary of Horizon 14 Co., Ltd., specializes in commercial real estate and provides a wide range of property management services, from subleasing and rental services to lease management, building maintenance, and brokerage, and has achieved steady growth in its business performance. The company’s customer base comprises property owners of prime locations, primarily within a five-minute walk from train stations in Tokyo and the three neighboring prefectures, as well as store operators mainly in the food and beverage industry. Through dedicated account managers who provide close, ongoing support, the company has earned strong trust from clients. By welcoming ideal inc., whose customer base and business domains are closely aligned with those of the Company, into the Group, the Company expects to create synergies with its consolidated subsidiary, WIT CO., LTD. Furthermore, over the medium to long term, the Company believes that this new addition will contribute to the expansion and evolution of Inshokuten.com, its business support platform for store operators. (3) Date of the business combination September 30, 2025 (Deemed acquisition date) (4) Legal form of the business combination Acquisition of shares for cash consideration (5) Names after the business combination There are no changes in the names of the acquired companies. (6) Percentage of voting rights acquired Percentage of voting rights after the acquisition 100% (7) Main basis for determining the acquiring company The basis is that the Company acquired shares for cash consideration. 2. Period of the acquired companies’ operating results included in the semi-annual consolidated financial statements
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15 As the deemed acquisition date is the end of the six months ended September 30, 2025, only the balance sheets of the acquired companies have been included in the consolidation for the period. Accordingly, the consolidated statements of income for the period do not include any operating results of the acquired companies. 3. Acquisition cost of the acquired company and the breakdown by type of consideration Acquisition cost 4,800,015 thousand yen Consideration for acquisition Cash and deposits 4. Description and amount of acquisition-related expenses Advisory fees and other expenses 14,467 thousand yen 5. Amount of goodwill, reason for its recognition, and method and period of amortization (1) Amount of goodwill 5,255,651 thousand yen (2) Reason for recognition The excess earning power expected to be realized through future business development (3) Method and period of amortization Straight-line amortization over ten years The amount of goodwill has been tentatively calculated, as the allocation of the acquisition cost had not been completed as of the end of the six months ended September 30, 2025. 6. Amounts of assets and liabilities assumed on the date of the business combination and their major components Current assets 973,240 thousand yen Non-current assets 1,753,224 thousand yen Total assets 2,726,465 thousand yen Current liabilities 491,801 thousand yen Non-current liabilities 2,690,299 thousand yen Total liabilities 3,182,100 thousand yen (Revenue recognition) Disaggregation of revenue from contracts with customers is as presented in “Notes (Segment information, etc.).”