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1 Financial Results oRo C o . , L t d . Code: 3983 November 14, 2025 Q3 FY2025/12
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2 Q3 FY2025/12 Financial Results Highlights Business Segment Topics 01 02 03 Company Profile Index Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
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3 Q3 FY2025/12 Financial Results Highlights
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4 Q3 FY2025/12 Financial Results Highlights Consolidated Q3 FY2025/12 Consolidated Financial Results Revenue 5,994million JPY YoY +3.4% Operating Profit 1,856million JPY YoY -6.7% Cloud Solutions (CS) Revenue million JPY 4,164 YoY +15.5% Operating Profit million JPY 1,847 YoY +19.5% Marketing Solutions (MS) Revenue million JPY 1,829 YoY -16.5% Operating Profit million JPY 3 YoY -99.3% ⚫ While recurring revenue is growing, acquisitions are expected at 84 (missing the initial plan of 89), driven by strong small-deal demand but lagging mid-sized deals. ⚫ Project-based revenue grew somewhat, mainly from long-time ZAC Enterprise client migrations to new environments and new large contracts. ⚫ Failed to offset the H1 shortfall and missed the strong H2 recovery anticipated in the initial plan. ⚫ Due to normal seasonality, including year-end sales campaigns from major clients, Q4 demand is expected to increase. Consequently, the revised forecast targets 102 million yen in full-year segment profit (details: p.5) * Progress expression to the plan: great > favorable > steady > worse > weak Revenue was worse than initially planned, while operating profit remained steady. Revenue was worse than initially planned, while operating profit remained steady. Revenue and operating profit were weak relative to the initial plan.
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5 Previous Forecasts Revised Forecasts Difference % change (Reference) FY24/12 Results Revenue 9,142 8,265 (876) (9.6) % 7,899 Cloud Solutions 5,959 5,643 (316) (5.3) % 4,929 Marketing Solutions 3,182 2,622 (560) (17.6) % 2,969 Operating profit 2,985 2,523 (461) (15.5) % 2,720 Cloud Solutions 2,569 2,421 (147) (5.8) % 2,162 Marketing Solutions 415 102 (313) (75.5) % 557 Profit before tax 3,020 2,471 (548) (18.2) % 2,856 Profit attributable to owners of parent 2,099 1,671 (427) (20.4) % 2,072 Consolidated Revision of Full-year Consolidated Earnings Forecast for FY25/12 Full-year forecast lowered due to current business conditions. Dividend forecast unchanged (in millions of yen) * For full details, please refer to the “Notice Regarding Revision of Full-Year Consolidated Financial Forecasts for the Fiscal Year Ending December 31, 2025” announced on the same day. Reflecting sluggish MS proposals, CS new contract mix shift (more small-sized deals and fewer mid-sized deals compared to the previous forecast), and a revenue correction (-39 million yen) for an error in the CS business booked in Q2.
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6 IFRSJapan GAAP Consolidated Trend in Revenue, Operating Profit and Operating Margin *The graphs for FY25/12 show the revised full-year earnings forecast presented on p.5 *Was not audited by KPMG AZSA LLC, prior to and in the fiscal year ended March 31, 2014. *Following the change in accounting policy in the fiscal year ended December 31, 2018, net sales for the Marketing Solutions Business are now reported on a net basis from the fiscal year ended December 31, 2017, instead of a gross basis previously used. *Starting from the fiscal year ended December 31, 2021, the Company has adapted International Financial Reporting Standards (IFRS) instead of Japanese GAAP. Accordingly, revenue for the fiscal year ended December 31, 2020 indicates the amount after retrospective application of the change. (in millions of yen) Non-consolidated Consolidated FY20 /12 FY25 /12 FY12 /3 FY13 /3 FY14 /3 FY14 /12 FY15 /12 FY16 /12 FY17 /12 FY18 /12 FY19 /12 FY21 /12 FY22 /12 FY23 /12 FY24 /12 Q3 Progress Rate Revenue 72.5% 73.6% Operating profit Recorded revenue 5,994 million yen, +3.4% YoY; operating profit 1,856 million yen, -6.7% YoY *Progress rate against revised forecast1,721 2,182 2,415 1,878 3,053 3,375 3,678 4,463 5,022 4,877 5,530 6,210 7,033 7,899 8,265 225 305 204 212 642 682 858 1,174 1,333 1,580 2,027 2,286 2,547 2,720 2,523 13.1% 14.0% 8.5% 11.3% 21.1% 20.2% 23.3% 26.3% 26.6% 32.4% 36.7% 36.8% 36.2% 34.4% 30.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Revenue Operating Profit OP Margin Accounting term alterations
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7 New segmentOld segment （in millions of yen） Cloud Solutions Breakdown of Revenue by Business Segment * Starting from FY2024/12, the Company has changed the reporting segments. Accordingly, revenue for FY2023/12 is shown after retrospective application of this change. * Revenue reflects a correction for a revenue error made in Q2 FY2025/12. Recurring revenue is growing but below the plan, impacted by a shift in the new contract mix compared to the initial plan (more small-sized, fewer mid-sized deals) Contracts with large-sized clients have progressed roughly in line with the initial plan. Project-based revenue increased QoQ, driven by new large-sized contracts and long-time ZAC Enterprise clients’ migrations to new ZAC environments. 27 29 31 33 35 37 37 36 37 37 39 40 41 44 47 49 53 53 53 371 392 411 414 431 450 455 478 511 554 625 690 673 749 794 847 890 946 993 (39) 194 205 188 213 193 203 191 203 189 208 200 203 207 196 195 166 140 125 103 143 174 113 132 127 165 163 244 183 273 260 156 151 117 150 164 172 186 212 4 18 23 8 10 29 23 22 55 61 78 71 81 72 84 94 83 88 100 0 200 400 600 800 1,000 1,200 1,400 1,600 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 dxeco, Semrush, and other products, etc. ZAC ERP installation consultation and customization ZAC license fee Correction for Revenue Error (for Maintenance, SaaS and other monthly fees) Maintenance fee, SaaS and other monthly service fees Reforma PSA
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8 Trend in the Number of Active Licenses Cloud Solutions Trend in the number of active licenses Trend in the number of active licenses per active client * Number of active licenses = Cumulative number of licenses sold - Cumulative number of licenses terminated * Number of active licenses per active client = Number of active licenses / The number of active clients at the end of the quarter Continued growth in the number of contracted licenses through the acquisition of new customers and an increase in business with existing customers 383 390 404 411 422 427 424 433 448 449 447 450 456 454 456 459 464 461 463 0 50 100 150 200 250 300 350 400 450 500 550 YoY +1.5% (in licenses) 206 210 223233243252260 274286 290294299304308315323331 335344 0 50 100 150 200 250 300 350 400 YoY +9.3% (in thousands of licenses)
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9 205 214 210 222 246 258 277 288 296 317 335 339 349 361 368 0 50 100 150 200 250 300 350 400 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 (in millions of yen) YoY +10.0% *MRR: Stands for Monthly Recurring Revenue, which is the regular monthly revenue. It is calculated as the total sum of “ZAC License Fees” and “Maintenance Fees, SaaS, and Other Monthly Service Fees” for the last month of the respective quarter. *The MRR trends shown exclude the impact of a revenue error correction made in Q2 FY2025. Cloud Solutions Trend in MRR Growing number of active licenses drives stable MRR growth *
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10 21/12 Q1 21/12 Q2 21/12 Q3 21/12 Q4 22/12 Q1 22/12 Q2 22/12 Q3 22/12 Q4 23/12 Q1 23/12 Q2 23/12 Q3 23/12 Q4 24/12 Q1 24/12 Q2 24/12 Q3 24/12 Q4 25/12 Q1 25/12 Q2 25/12 Q3 Number of New Contracts 17 6 21 19 21 15 23 28 13 16 16 9 13 21 17 17 17 22 19 Number of Churns 5 8 7 5 11 3 0 7 9 7 4 3 11 9 4 4 8 8 3 0.0 1.0 2.0 3.0 (%) Trend in the Number of New Contracts and Churns *Monthly churn rate: churn rate calculated by moving average of monthly churn customers / customers at beginning of the month for the last 12 months Customer churn rate（ZAC and ZAC Enterprise） Trend in Monthly Customer Churn Rate The trend remains steady, hovering around 0.3%. Cloud Solutions Monthly Churn Rate, the Numbers of New Contracts and Churns New contract acquisitions reached 66.3% of the initial full-year target of 89, a slight shortfall due to contract slippages. While large-sized contracts are on plan, small-sized contracts increased. Revised full-year acquisition forecast at 84 (see p.5).
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11 License Price Revisions and Revenue Recognition As of January 1, 2023, the sales format of ZAC/ZAC Enterprise licenses, one -time Purchase- type contracts (lump-sum perpetual license type) has been discontinued, and only SaaS - type contracts (monthly subscription fee type) is now available. Revenue Recognition of License Sales (Model case for 100-person client) *The green and blue areas represent the revenue amount. To Dec.31, 2022 To be discontinued thereafter One-time Purchase-type contract License Fee: 233 thousand yen/month License Fee: 320 thousand yen/month Data Center Usage Fee: 60 thousand yen /month From Jan.1, 2023 SaaS-type contract Only License maintenance fees When accounting is completed 30 Months Prorated Monthly Service Fee During License Usage Cloud Solutions Sales Management: 20 licenses Purchase Management: 20 licenses Time Management: 100 licenses Expense Control: 100 licenses Data center usage fee: 60 thousand yen/month *The above revisions do not apply to customers who have signed and used a one-time purchase contract by December 31, 2022. For details, please refer to the “Notice of Revisions of License Fees for Cloud-based ERP ZAC and ZAC Enterprise” disclosed on November 14, 2022. 1st year 32 Continuous use period 1 Monthly Service Fee During License Usage (years) License Maintenance Fee: 105 thousand yen/month, Data Center Usage Fee: 60 thousand yen/month
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12 Sales Proposal （Approx. 3~6 months） Installation Support （Approx. 6 months） Post-operational Support Schedule and Revenue Recognition after New ZAC Contract Other Monthly Service Fees: 200 thousand yen/month Data Center Usage: 120 thousand/month SaaS License Fee: 440 thousand yen/month *Revenue is recognized monthly. Billing consists of a one-year SaaS license fee (5,280 thousand yen), invoiced in a single lump sum at the end of the month in which the contract is concluded. Installation Consultation Fee: 6,000 thousand yen *Under the percentage-of-completion method, the revenue is recognized monthly based on project progress. Invoicing occurs at the go-live month's end, with a lump-sum bill following the acceptance inspection. License Structure Sales Management: 20 licenses, Purchase Management: 20 licenses, Time Management: 200 licenses, Expense Control: 200 licenses Additional Monthly Service Configurations: Electronic Evidence Storage Option, Security Option, API Access Maintenance fee, SaaS and other monthly service fees ZAC ERP installation consultation and customization Contract Signing, Implementation Support Commences Operation Commences Initial Setup Fee: 100 thousand yen Phase Revenue Recognition* *The colors in the graph correspond to p.8 (Breakdown of Revenue by business segment). From FY2025, the Initial Setup Fee is recognized under the “ZAC ERP installation consultation and customization” segment. Cloud Solutions Model case for a client with 200 employees Electronic Evidence Storage Option, Security Option, and API Access
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13 Rate of progress against the plan: 64.5% (As of September 30, 2025) While appointment acquisition showed an improving trend, supported by activities such as exhibitions, the number of sales qualified leads (SQLs) temporarily slowed during Q3. However, SQLs have shown a recovery recently, and the pipeline for new contract acquisitions in Q1 FY2026/12 is steadily building. We will continue our focus on steady improvements in marketing activities. Plans for H2 We will focus on closing activities to achieve the 84 new full-year contracts assumed in this revised forecast. We will also continue to allocate budget to promising initiatives for the next fiscal year. YoY +29.5％ (in thousands of yen) Q1-Q3: Actual results Q1-Q4: Actual results (FY2024/12), Plan (FY2025/12) Efforts for Customer Acquisition Cloud Solutions Advertising Expenses (only ZAC and Reforma PSA) 0 50,000 100,000 150,000 200,000 FY2024/12 FY2025/12 YoY +16.3％
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14 174 195 202 204 206 229 226 224 229 245 254 165 180 193 189 197 213 214 216 228 242 24839 30 35 47 46 63 51 54 58 80 73 10 9 12 13 20 24 29 24 14 8 16 157 174 188 229 176 186 173 187 183 205 227 0 100 200 300 400 500 600 700 800 900 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 (in millions of yen) Other expenses (including server and other costs and outsourcing costs) Research and development expenses Research and development expenses Labor costs / personnel expenses (Sales and administrative staff) Labor costs / personnel expenses (Manufacturing staff) *Starting from FY2024/12, the Company has changed the reporting segments. Accordingly, expenses for FY2023/12 are shown after retrospective application of this change. Breakdown of Expenses (Consolidated) Cloud Solutions
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15 115 130 138 139 138 155 153 150 151 164 165 72 81 79 76 75 84 83 78 81 93 94 0 50 100 150 200 250 300 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 (number of employees) Sales and administrative staff Manufacturing staff Breakdown of Personnel (Consolidated) Cloud Solutions *Starting from FY2024/12, the Company has changed the reporting segments. Accordingly, number of employees for FY2023/12 is shown after retrospective application of this change. *We disclose the average number of employees during the quarter (rounded to one decimal place) instead of at the end of the quarter. *Starting from Q2, FY2024/12, the Company has changed reporting of the number of full-time employees for the consolidated group, rather than just the three domestic companies.
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16 New segmentOld segment 264 182 216 220 193 204 365 290 311 248 336 318 355 318 348 385 292 222 244 166 173 214 220 226 221 209 295 152 148 154 236 248 217 203 231 189 171 251 172 175 169 220 176 152 156 177 148 159 183 156 161 179 160 160 159 155 141 0 100 200 300 400 500 600 700 800 900 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 Marketing / promotion System / website integration, etc. Operation support / operation office * Starting from FY2024/12, the Company has changed the reporting segments. Accordingly, revenue for FY2023 is shown after retrospective application of this change. Marketing Solutions Breakdown of Revenue by Business Segment （in millions of yen） We anticipated an improvement in the external environment for H2 in the initial plan, but significant uncertainty persists. QoQ, revenue from system / website integration, etc. increased, driven by the steady progression of multiple large-scale production projects.
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17 Overseas Revenue MC 71 97 70 87 105118 173 134 182 207 169 246 232 299 314 255 329 294 419 0 50 100 150 200 250 300 350 400 450 (in millions of yen) Q1 Cumulative total of Q1~Q2 Cumulative total of Q1~Q3 Cumulative total of Q1~Q4 Q2 Q2 Q3 Q4 Q2 Q2 Q3 Q4 Q2 Q2 Q3 Q4 Q2 Q2 Q3 Q4 Q2 Q2 Marketing Solutions FY21/12 FY22/12 FY23/12 FY24/12 FY25/12 Q3 Q4 Moderate YoY growth is expected for the full year
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18 MC 180 185 191 202 202 208 213 222 217 212 222 146 151 164 181 190 192 194 193 196 219 20635 31 62 58 70 50 79 107 65 50 70 89 107 118 118 116 112 119 137 121 106 135 0 100 200 300 400 500 600 700 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 (in millions of yen) Other expenses Material costs / subcontract costs Labor costs / personnel expenses (Sales and administrative staff) Labor costs / personnel expenses (Manufacturing staff) Breakdown of Expenses (Consolidated) Marketing Solutions *Starting from FY2024/12, the Company has changed the reporting segments. Accordingly, expenses for FY2023/12 are shown after retrospective application of this change.
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19 155 156 162 160 161 167 171 173 167 167 168 60 63 63 64 68 70 70 73 72 88 83 0 50 100 150 200 250 300 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 25Q1 25Q2 25Q3 (number of employees) Manufacturing staff Sales and administrative staff Marketing Solutions Breakdown of Personnel (Consolidated) *Starting from FY2024/12, the Company has changed the reporting segments. Accordingly, number of employees for FY2023/12 is shown after retrospective application of this change. *We disclose the average number of employees during the quarter (rounded to one decimal place) instead of at the end of the quarter. *Starting from Q2, FY2024/12, the Company has changed the reporting of the number of full-time employees for the consolidated group, rather than just the three domestic companies.
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20 FY2025/12 Revised Forecasts [Composition ratio] FY2025/12 Q3 Results [Composition ratio] Progress Revenue 8,265 [100.0%] 5,994 [100.0%] 72.5% Cloud Solutions 5,643 [68.3%] 4,164 [69.5%] 73.8% Marketing Solutions 2,622 [31.7%] 1,829 [30.5%] 69.8% Operating profit 2,523 [30.5%] 1,856 [31.0%] 73.6% Cloud Solutions 2,421 [29.3%] 1,847 [30.8%] 76.3% Marketing Solutions 102 [1.2%] 3 [0.1%] 3.0% Profit before tax 2,471 [29.9%] 1,784 [29.8%] 72.2% Profit attributable to owners of parent 1,671 [20.2%] 1,234 [20.6%] 73.9% * * Includes 5 million yen of other profit (loss) not attributable to reportable segments. (in millions of yen) Consolidated Progress against Revised Forecasts and Actual Results
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21 Profit and Loss Statement (YoY) Consolidated Q3 FY2024/12 [Composition ratio] Q3 FY2025/12 [Composition ratio] Difference Main factors Revenue 5,799 [100.0%] 5,994 [100.0%] 194 Cost of sales 1,925 [33.2%] 2,071 [34.6%] 146 Increase in technical personnel, salary, material costs, maintenance expenses, etc. Gross profit 3,874 [66.8%] 3,922 [65.4%] 48 Selling, general and administrative expenses 1,810 [31.2%] 2,033 [33.9%] 223 Increase in sales and administrative employees and salary, advertising expenses, consumable supplies, etc. Research and development 74 [1.3%] 38 [0.6%] (35) Other profit (loss) 1 [0.0%] 5 [0.1%] 4 Operating profit 1,990 [34.3%] 1,856 [31.0%] (133) Finance profit (loss) 7 [0.1%] (71) [(1.2)%] (79) Increase in foreign exchange losses. Profit before tax 1,998 [34.5%] 1,784 [29.8%] (213) Profit 1,376 [23.7%] 1,234 [20.6%] (142) Profit attributable to owners of parent 1,381 [23.8%] 1,234 [20.6%] (146) (in millions of yen)
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22 FY2024/12 FY2025/12 Q3 Difference Current assets 12,455 11,236 (1,218) Cash and cash equivalents 9,903 9,047 (855) Trade and other receivables 974 1,035 61 Contract Assets 434 298 (135) Other current assets 1,143 855 (288) Non-Current Assets 1,134 1,380 245 Property, plant and equipment 574 860 286 Intangible assets 119 170 50 Other 440 349 (91) Total assets 13,590 12,617 (972) FY2024/12 FY2025/12 Q3 Difference Total liabilities 3,308 2,936 (371) Current liabilities 2,986 2,336 (649) Contract liabilities 1,600 1,152 (447) Income tax payable 233 155 (77) Trade and other payable 472 294 (177) Other current liabilities 680 733 52 Non-current liabilities 321 600 278 Total equity 10,281 9,680 (601) Equity attributable to owners of the Parent 10,283 9,682 (600) Non-controlling interests (2) (2) (0) Total liabilities and equity 13,590 12,617 (972) Consolidated Statement of Financial Position (vs. End of Previous Fiscal Year) (in millions of yen)
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23 Business Segment Topics
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24 Business Overview Cloud Solutions (CS) Development and provision of cloud services, including Marketing Solutions (MS) Provision of services related to customer marketing support, including digital advertising, system production, web production, and more.
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25 CLOUD SOLUTIONS
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26 Large-scale Enterprises/ CustomizationSmall Enterprises/Start-up ◼ Targeting start-ups/venture firms with up to 50 employees ◼ Providing only a selected set of essential functions of ZAC ◼ Allowing customers to use the service at low cost given no upfront fees (only monthly subscription fees, 30,000 yen) Cloud PSA Reforma PSA ◼ Main product offered to small to middle sized companies with 50 to 300 employees ◼ Equipped with approximately 2,000 parameters, it fits customer operations without the need for customization (add-on development) ◼ Through automatic version updates, the product continuously evolves Cloud ERP ZAC Enterprise ◼ Catering to large corporations with over 1,000 employees ◼ Equipped with approximately 13,000 parameters ◼ To meet unique corporate needs and business requirements through customization (add-on development) Cloud ERP “ZAC”, Cloud PSA “Reforma PSA” Cloud ERP ZAC Small to Medium Enterprises We provide three types of cloud-based integrated systems tailored to the size of the enterprise. The systems streamline business processes and facilitate company-wide information sharing. Cloud Solutions
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27 ZAC has been implemented in a cumulative total of over 1,000 companies, primarily in the software, IT services, and advertising industries. Industry-Specific ERP POINT1 Advertising/ PR/ content production Software, IT services Consulting/ professional services Other services Recently, orders from the software and IT services industries have increased. Approximately 40% of the total number of orders received come from the IT service industry, and 30% come from the advertising industry. (As of September 30, 2025) Cloud Solutions Software/system development, and IT services Consulting/professional services Other services Advertising/PR/content production
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28 Overview of Cloud ERP ZAC - Functions *Reforma PSA provides some of ZAC’s key features. Cloud Solutions Specialized in Front Office Operations, Standard Features Fulfill Industry-Specific Requirements
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29 ERP systems can be divided into single-function general-purpose systems applicable across industries, and multi-function integrated systems merging industry-specific functions. ZAC / Reforma PSA is a multi-function integrated system designed to meet the specific needs and challenges of customers in the IT services, advertising, and consulting industries. Industry-Specific Integrated ERP POINT1 Positioning Map by Industry/Business Domain Cloud Solutions
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30 Cloud Solutions Since 2006, we have accumulated approximately 13,000* parameters (functional components) to meet unique customer demands. Advantages of Cloud-Based Systems in Functional Scalability (From the customer's perspective) Access to a customized system at a low cost and with a short delivery time, making specification changes, such as adding new features, easier (From our perspective) Ability to horizontally deploy new features or functionality developed for individual customers, resulting in efficient sales proposals and feature delivery POINT1 POINT2 Continuously adding the latest features in response to customer and market needs Combining necessary features to build the optimal system for each company without additional development Multiple added functions Company A Company B Company C Advantages of industry-specific parameter design *We provide about 2,000 functional parameters in ZAC and about 13,000 functional parameters in ZAC Enterprise.
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31 Cloud Solutions Despite being a large-scale system with approximately 2,000 functional parameters, ZAC undergoes regular version upgrades, continuously offering enhancements in functionality and design, as well as new features. Provide Regular Version Updates Other Systems Regular version upgrades to improve customer satisfaction, reduce Customer Churn Rate and increase ARPA and NRR. *Approximately 2,000 functional parameters are available for ZAC and 13,000 for ZAC Enterprise. Customer Satisfaction Health Score and Market Customer Needs Analysis New Feature Offering Product Develop- ment Regular Version Updates
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32 Cloud Solutions: ZAC Implementation Case Study KAYAC Inc. <App and Game Development Industry> Employees: 572 “Consolidated as of the end of 2023” ZAC Enables Visibility of Project-Based Labor Costs Manual Cost Calculation in Excel Reaches Its Limit Due to Scaling Up The company managed project-specific man-hour data using Excel files. However, a rapid increase in the workforce made it challenging to manually calculate costs by linking accounting data (labor costs) with project-specific man-hours. Challenges Prior to 2010 Implementation of ZAC Enterprise: Renowned for unique management methods like “dice pay,” the company develops content businesses, producing innovative social games and smartphone apps, and hosting special exhibitions such as UNKO MUSEUM. Its performance and scale expand annually. Easier Understanding of Labor Costs by Project Centralizing the management of man-hours at a single ZAC location has streamlined the process, allowing for quick and efficient allocation of labor costs by project. Enabling Data-Driven Decision-Making The implementation of ZAC Enterprise has improved the accuracy of management data, enabling intuitive decisions to be backed by reliable information. Benefits Following the 2010 Implementation of ZAC Enterprise: Kayac Inc. adopted ZAC Enterprise in 2010, starting with attendance and man-hour management, and gradually adding sales, purchasing, and expense features. In 2023, to meet legal changes and enhance management for their growing group, they switched to ZAC, launched in 2019. This reflects the state during ZAC Enterprise's implementation. Improved Accuracy of Management Control Visualizing Labor Costs by Project Employee working hours Actual labor costs Future Past
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33 Strengthening Development for Further Market Expansion We will review our system configuration and enhance our internationalization functions to propose solutions to large enterprises with 10,000 employees and small- to medium-sized enterprises located overseas by 2026. Market Expansion Image (TAM) Present 2026 44,000 domestic target companies, we are targeting larger companies and overseas markets *Domestic target companies are ZAC, ZAC Enterprise and Reforma’s target industries, such as IT, advertising and consulting, with approximately 1 to 2,000 employees. Cloud Solutions company size Large-size enterprises Mid-size enterprises H class Mid-size enterprises M class Mid-size enterprises L class Small and Mid-size enterprises Micro- enterprise /SOHO Large-size enterprises Mid-size enterprises H class Mid-size enterprises M class Mid-size enterprises L class Small and Mid-size enterprises Micro- enterprise /SOHO company size TAM expansion through overseas expansion TAM expansion and ARPA improvement
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34 We are developing multi-language/currency support, localization, and test marketing to launch ZAC in Vietnam by 2026, targeting not only Japanese-affiliated companies but also local mid-sized enterprises. Rationale for Entering the Vietnamese Market 1 2 3 Minimal Investment Needed for Vietnam Expansion With a local subsidiary established in 2013, no major investment is required. Strong understanding of local business practices and existing product specifications enable cost-effective localization. Roughly 100 ZAC clients in Japan have subsidiaries in Vietnam With numerous candidates for test marketing and proposals, the probability of success is high. Vietnamese Government's Support for IT Industry Growth Growth in IT companies is expected to expand the total addressable market (TAM) for ZAC. On Track for 2026 Overseas Launch with Feature Development and Final Preparations Cloud Solutions Strengthening Development for Further Market Expansion
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35 SaaS Management Tool “dxeco” “dxeco” visualizes contract information, usage status, account information, and Shadow IT for SaaS applications used within companies. It optimizes SaaS costs, management and understanding of security risks, and streamlining of account inventory tasks. - Permissions can be set for each organizational level. - Praised during ISMS audits and internal reviews for excellence. - Continuously adding new features in response to customer feedback. Case study Inability to comprehensively track internal SaaS account information Difficulty in understanding SaaS adopted and managed at the department level Creation of a comprehensive management ledger without gaps through API and CSV integration Capability to gain a comprehensive understanding of all SaaS in use across the company, including Shadow IT Pre-implementation Challenges Post-implementation Impact Cloud Solutions
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36 Subscription Business Sales Management System “Hayasub” Hayasub is a sales management system designed for BtoB subscription businesses. It streamlines the sales management process by handling diverse pricing models (flat/metered fees) and contract terms (annual/monthly, special discount). - Systematizes sales management from prospecting to invoicing to reduce waste - Manages varied fee structures, contract terms, and billing - Centralizes sales management by integrating with ZAC and other systems Issues that can be solved and expected Challenges Before Implementation Effects After Implementation Cloud Solutions Manual billing processes lead to errors, including missed and inaccurate charges. Key subscription business KPIs like MRR and churn rates are not calculated accurately or promptly. Systematization ensures accurate billing amid complex fee and contract structures. Centralized management enables real-time visualization of key subscription metrics.
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37 １ Plan to expand a range of foreign -made tools next to Semrush Aim to increase the number of Enterprise users and the revenue growth rate in 2025 NEXT Semrush localization and domestic distribution are growing steadily We will enhance new plans, including Semrush Enterprise*, to drive MRR expansion. * Semrush Enterprise :A new enterprise SEO platform separate from the standard Semrush (Core), enhanced with advanced BI and AI capabilities. **Active users exclude free trial users and canceled users *** Total number of users including trial users 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2018 2019 2020 2021 2022 2023 2024 2022 Over 1000 active users Number of Active Users** Target in 2025 Customer Support 2024 Over 1500 active users March Semrush Holdings, Inc. went public on NY NASDAQ (active users) 2018.12 As a general agency in Japan, we started offering Semrush 2020 Semrush moved into the black on a monthly basis 2021 Became Profitable 10 million Registered Account in the world*** All-in-one competitive analysis tool for SEO/ Ad Analysis/ SNS Competitive Analysis Boost Overseas Tool Variety and Revenue Cloud Solutions Expansion of Marketing Channels Providing hands-on implementation and expansion of Acquiring leads by Semrush Enterprise *
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38 ZAC ERP installation consultation and customization Installation support services for “ZAC” and required customization during implementation The impact of unifying license sales into a SaaS-type contract in January 2023 is expected to materialize from FY2026/12 onward To drive revenue growth and prepare for overseas sales not yet included in our outlook, we will expand our organization while improving productivity. ZAC license fee (one-time purchase-type contract) Revenue from one-time purchase licenses. This model is being discontinued, with revenues expected to phase out completely by 2027 Maintenance fee, and SaaS and other monthly service fees Includes ZAC system maintenance, cloud provisioning, and monthly license fees. Post-2023 ZAC license fees (following the end of one-time purchases) are booked in this segment Reforma PSA Provision of monthly license for “Reforma PSA” dxeco, Semrush, and other products, etc. Revenue from the sale of dxeco, and from acting as an agent for third-party software such as Semrush, and other related revenues. Cloud Solutions Segment Revenue and Operating Margin (in millions of yen) 4,929 5,643 7,507 9,590 43.9% 42.9% 44.3% 47.3% 0.0% 20.0% 40.0% 60.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY24/12 (Results) FY25/12 (Revised Forecasts) FY26/12 (Outlook) FY27/12 (Outlook) FY28/12 FY29/12 Operating Margin * While we plan to begin overseas sales of ZAC in 2026, the impact on our financial performance is currently difficult to estimate. Accordingly, it is not reflected in our earnings forecast for FY26/12 and beyond. * The outlook for FY26/12 - 27/12 in the above charts reflects the figures from the initial plan for FY25/12 prior to the revision. An updated outlook for FY26/12 and beyond is scheduled to be disclosed on February 13, 2026.
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39 Marketing Solutions
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40 Building Support Model as “Execution-Oriented Company” As the digital marketing market expands, we serve MS businesses as “an execution company”. This is to ensure clients' strategies do not just remain theoretical. We provide a support model that generates ongoing results through communication design (effective tactical planning) and marketing execution support (implementing and scaling tactics). Outcome Output Execution Strategy Tactics Communication design Support model to link strategy to implementation and deliver results =Creating tactics Pursuit of essential results/advertising effectiveness Integrated mass x digital planning Comprehensive CRM consulting Experience strategy development Governance development Data Driven Marketing Data platform implementation support, MA implementation and utilization support, GA4 solutions, BI implementation support and construction, 1st Party data utilization Marketing execution support =Create and implement mechanism Website construction, maintenance and operation System construction, maintenance and operation SNS operation, email marketing operation Campaign/advertising office Tactics Execution Breakthrough Scale up Our Support Model as an “Execution-Oriented Company” (conceptual diagram) Provide a mechanism to translate the client's marketing strategy into concrete actions Marketing Solutions Business Strategy and Outlook
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41 We support the marketing efforts of large enterprises Marketing Solutions Aeon Co., Ltd. And Nissan Motor Co., Ltd. are the main customers. Examples of ORO's Support for Implementing Marketing Strategies ⚫ Tactical Planning: Tailored digital marketing consulting and execution per regional characteristics. ⚫ Systematization: Developing and offering dashboards that enable the visualization of marketing ROI across all areas. ⚫ Execution Support: Designing and implementing customer acquisition strategies for nationwide stores. Strong in supporting organizations to execute strategy and to deliver results
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42 Marketing Solutions Nissan Motor Co., Ltd. < M a n u f a c tu r i n g a n d s a l es o f a u to m o ti v e p r o d u c ts > One-stop digital marketing for store-based businesses No Unified System to Manage Nationwide Sales Companies Each sales company managed its advertising independently based on regional car demand. This resulted in some advertisements not aligning with the brand image that Nissan Motor Co. aimed for. Issues to be Improved Nissan, renowned for its technological prowess, is a leading player in the automobile industry, particularly in electric vehicle innovation. The Nissan sales company group, boasting 115 companies, operates around 2,100 dealerships across all prefectures as of April 2024. Digital Marketing Support by ORO Enabling Regional Advertising with Brand Integrity We support each sales company in aligning ad production and distribution with the manufacturer’s marketing strategies and brand image. This system enables tailored advertising to meet local needs while maintaining brand integrity. Optimized BI Environment for Quick Insight A Business Intelligence (BI) environment has been established to allow for seamless, comprehensive analysis of national marketing outcomes. This system reduces reporting burdens for sales companies and enables manufacturers to easily oversee distribution results with a strategic perspective. Optimized BI Environment for Quick Insights Advertisements with a Unified Brand Image Challenges in Aggregating Ad Distribution Results Since sales companies across the nation reported their advertising results separately, the reporting process created significant burdens. Moreover, this made it difficult for Nissan to comprehensively track and analyze the overall data.
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43 Marketing Solutions – TOPPAN x ORO Case Study Obayashi Corporation < G e n e r a l C o n s tr u c ti o n C o m p a n y > Creating an “Engaging” 130-Year Corporate History Site A Web-Based 130-Year History In line with current trends, the goal was to create a 130-year history site accessible from any device and location, with features such as searchability and links to the corporate website. Requirements A leading general construction company committed to contributing to a sustainable society in Japan and globally, guided by the philosophy of being a “Leading Sustainable Company.” The company is actively pursuing green energy projects and expanding into new business domains for the new era. TOPPAN × ORO Proposal An “Engaging” History Site Aligned with Corporate Rebranding To support Obayashi’s rebranding, TOPPAN produced an “engaging” history site rather than merely a “readable” one, designed as web- based global content for the general public beyond corporate stakeholders. The multilingual requirements were met through collaboration between TOPPAN’s translation and history teams. Website Design and Implementation by ORO ORO handled the design and implementation, featuring six stories like Obayashi’s “Space Elevator” vision, brought to life through animations. The site is optimized for mobile and includes key web features like internal search and external links. Expanding Corporate History Globally For the first time, the history would be made available globally with both Japanese and English. To further share the history with employees and clients at Obayashi’s overseas subsidiaries, additional support was added for four languages: Traditional Chinese, Thai, Indonesian, and Vietnamese. Please refer to the interview article at the following URL for details (this will redirect you to the website of TOPPAN Holdings Inc.; Japanese Only): https://solution.toppan.co.jp/bx/contents/interview_contents05.html
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44 Strengthen the Structure at Overseas Business Locations Marketing Solutions MC Strengthening Both Sales and Production to Improve Profitability Enhancing the Sales Structure By bolstering the recruitment of sales personnel and strategic planners, the company aims to enhance proposal quality to secure contracts through direct appointments and annual deals. Reinforcing the Production System With growing demand for outsourced services from advertising agencies, we are strengthening our structure, including recruitment, to boost revenue. At the same time, we aim to improve profitability by promoting in-house production.
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45 Segment Revenue and Operating Margin 2,969 2,622 3,655 4,135 18.8% 3.9% 16.4% 17.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 0 2,000 4,000 6,000 FY24/12 (Results) FY25/12 (Revised Forecasts) FY26/12 (Outlook) FY27/12 (Outlook) FY28/12 FY29/12 Operating margin (in millions of yen) While the outlook remains uncertain, we remain focused on acquiring new clients and deepening relationships with existing clients to drive improvement. Operation support, Operation office Operation, updating and other services on websites. System / website integration, etc. Construction and renewal of websites, and contracted development and maintenance of systems as a system integrator, etc. Marketing / promotion Planning of customer's marketing and promotion, placement of advertisements, and research. While focusing on growing this segment, we also plan to simultaneously roll out proposals for the other two segments, complementing our marketing and promotion-related proposals to support our clients' marketing strategy execution. Marketing Solutions Business Strategy and Outlook * The outlook for FY26/12 - 27/12 in the above charts reflects the figures from the initial plan for FY25/12 prior to the revision. An updated outlook for FY26/12 and beyond is scheduled to be disclosed on February 13, 2026.
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46 Company Profile
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47 0 2 . F o n t With the commitment of all employees in creating what they can proudly present to the world (namely our organization with its products, and services), oRo's goal is to continue to deliver more happiness and joy to more people (coworkers, families, business partners, shareholders and society), and lead all our employees to self-fulfillment through our efforts to achieve this goal. Corporate Philosophy
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48 1999 Establishment of oRo Co., Ltd 2004 Launched website management and maintenance operations 2005 Acquired the Information Security Management Systems (ISMS) certification 2006 Developed and launched sales of ZAC Enterprise, an SaaS-compliant ERP package 2007 Acquired certification to use the PrivacyMark Opened the Osaka branch (currently, the Nishinihon branch office) 2008 Opened the Hokkaido branch office 2010 Established the Chinese local corporation oRo TECHNOLOGY (DALIAN) CO., LTD. (currently, a consolidated subsidiary) Acquired the Environmental Management Systems (EMS) certification 2012 Opened the Miyazaki Support Center Opened the Chubu branch office Established the Malaysian local corporation ORO Malaysia Sdn. Bhd. (currently, a consolidated subsidiary) 2013 Established the Vietnamese local corporation ORO Vietnam Co., Ltd. (currently, a consolidated subsidiary) 2014 Established the Thai local corporation ORO (Thailand) Co., Ltd. (currently, a consolidated subsidiary) 2016 Established the Taiwanese local corporation ORO TAIWAN CO., LTD. (currently, a consolidated subsidiary) Established the Chinese local corporation DALIAN oRo ADVERTISING CO., LTD. (currently, a consolidated subsidiary) Established oRo Miyazaki Co., Ltd. (currently, a consolidated subsidiary) 2017 Listed on the TSE Mothers Section 2018 Listing upgraded to the TSE 1st Section Opening of the Fukuoka branch 2019 Established oRo code MOC Co., Ltd. (currently, a consolidated subsidiary) 2022 Transition to TSE Prime Market History
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49 Organizational Structure Breakdown by job type (non-consolidated) Professionals (Engineer) Professionals (Designer) Other professionals Planning / Sales personnel Corporate staff Technical profession 54% Planning/ Sales personnel 40% Split between manufacturing and sales personnel Manufacturing staff Sales and administrative staff 341 (As of June 30, 2025) Engineer 23% Other professionals (incl. SE, PM, consultants) 27% Designer 4% Organizational structure promotes “technology x creativity” solutions Non- consolidated 584 Consolidated (As of June 30, 2025) Corporate Staff 6%
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50 To realize our corporate philosophy, we have identified the three categories of material issues that we must address in order to achieve sustainable growth: business, human resources, and environment. Material Issues Sustainability Initiatives Sustainability Business Human resources Environment Realizing our corporate philosophy Governance Realizing our corporate philosophy requires our own sustainable growth in the first place. Our growth cannot be achieved without delivering more happiness and joy to co-workers, families, business partners, shareholders, and society at large. For this reason, oRo will engage in corporate activities to realize its corporate philosophy by aligning its initiatives for the three materiality categories of Business, Human Resources, and Environment from the perspective of sustainability, while monitoring the progress of these initiatives. Sustainability Policy
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51 In line with our 'oRo GROUP HUMAN RESOURCES POLICY', we are advancing diversity initiatives, targeting a 15% ratio of women in managerial positions by 2027 to diversify our core personnel. Since February 2023, we have established a goal of achieving a 15% ratio of women in managerial positions by 2027. As of December 31, 2024, we have reached a performance level of 10.8%, which aligns closely with our plan. Moving forward, we will concentrate on improving our workplace by accommodating diverse career paths and work styles, as well as striving to create a more attractive work environment. Through these enhancements, we aim to increase the proportion of female managers. Raising the percentage of women in managerial positions oRo GROUP HUMAN RESOURCES POLICY oRo's goal is to continuously develop creative and autonomous human resources and therefore to deliver more happiness and joy to more people through creation of organization, products, and services. 1. We do not discriminate on the basis of race, creed, gender, social status, nationality, disability, employment type, age, religion, etc. 2. We evaluate our employees/ business partners fairly and treat them appropriately. 3. We respect diversity. We will create a culture where everybody can think on their own, demonstrate their abilities and creativity, and achieve self-fulfillment. 4. We pursue the physical and mental well-being of our employees and their family, and support career development, health, and personal fulfillment. Human Resources Initiatives (1/2) Sustainability Initiatives
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52 We promote “Health & Productivity Management” to empower employees to play an active role in the company. Offering diverse and flexible work styles enhances self - fulfillment. Human Resources Initiatives (2/2) Sustainability Initiatives Selective four-day work week “Sun Life” Childcare support system “Core Life” holiday holiday holiday Working in the officeWFH WFH This system allows applicants to choose between an 8- hour or 10-hour work day and adopt a four-day work week. Eligible employees can choose Tuesday, Wednesday, or Thursday as their additional day off. Our childcare support system enables flexible office hours from 10:00 to 16:00, and the option to work from home for the rest, promoting work-life balance and aiding in managing family and childcare duties. *Our company has certified as a Health & Productivity Management Outstanding Organization 2024 (Large Enterprise Category) for the second consecutive year, and oRo Miyazaki and oRo code MOC were also certified in the Small and Medium-Sized Enterprise Category. And also we and oRo Miyazaki have received the “Kurumin” certification, which is awarded by the Japanese Ministry of Health, Labor and Welfare to companies that actively support employees in balancing work and family life.
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53 Status of other initiatives Our GHG emissions in FY2024/12 were 2,962 tCO2e. We believe we can reduce Scope 1 and 2 emissions, which include our direct emissions and electricity use, through our own efforts. We will continue to implement specific measures, such as energy conservation, with the goal of achieving a 50% reduction* by 2030. *The targets are set with 2021 as the base year and Scope 1 and 2 as the targets. We believe that climate change will affect the growth of our business in the medium to long term. As we advance our business, we will also work to reduce greenhouse gas emissions and environmental impacts. Environment Initiatives We have conducted a climate change scenario analysis based on TCFD recommendations and published the results on our website. https://www.oro.com/en/ir/sustainability/environment/ Greenhouse gas emission and reduction targets Sustainability Initiatives
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54 Company Profile Company Name oRo Co., Ltd. Listed Exchange Tokyo Stock Exchange Prime Market（Code: 3983） Representative Representative Director, President and CEO Atsushi Kawata Foundation January 20, 1999 Head Office Meguro Suda Building, 3-9-1 Meguro, Meguro-ku, Tokyo 153-0063 Capital 1,193 million yen Business Portfolio Cloud Solutions (CS) - Development and sales of cloud-based ERP “ZAC,” “Reforma PSA,” SaaS management tool “dxeco” - Domestic sales representation for SEO tool “Semrush” Marketing Solutions (MS) - Support for corporate marketing activities Employees Non-consolidated 341 / Consolidated 584 (as of June 30, 2025) Branch Nishinihon Branch, Hokkaido Branch, Fukuoka Branch Group Company oRo Miyazaki Co., Ltd. oRo code MOC Co., Ltd. oRo TECHNOLOGY Co., Ltd. (DALIAN, SHANGHAI) DALIAN oRo ADVERTISING Co., Ltd. oRo TAIWAN Co., Ltd. oRo Malaysia Sdn. Bhd. oRo Vietnam Co., Ltd. oRo (Thailand) Co., Ltd.
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55 0 2 . F o n t ◼ This presentation material contains the projections for the Company as well as its forward-looking plans and business goals. These statements are based on current assumptions regarding potential future events and developments, and we provide no guarantee that these assumptions are correct. Actual financial results could potentially differ significantly from what is shown in this presentation material due to various factors. ◼ Financial data stated in this presentation material are shown according to Japanese generally accepted accounting principles unless specified otherwise. ◼ The Company will not necessarily revise previously-issued releases on its future outlook regardless of the occurrence of future events unless it is required to do so by disclosure rules. ◼ Information on firms other than the Company is generally based on publicly-known information. ◼ The Company holds any and all rights to any part of this presentation material. Reproducing or transferring any part of the document, either electronically or mechanically, without permission regardless of the purpose is prohibited. Attention on handling this material
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56 0 2 . F o n t