Interim report
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―1― 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. Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2025 (Based on IFRS) November 14, 2025 Company name: ORO Co., Ltd Stock exchange listing: TSE Stock code: 3983 URL https://www.oro.com Representative: Atsushi Kawata, Representative Director, President and CEO Inquiries: Yasuhisa Hino, Director and Senior Managing Executive Officer, and General Manager for Corporate Department TEL: +81-3-5724-7001 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results meeting: No (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the nine months ended September 30, 2025 (from January 1, 2025 to September 30, 2025) (1) Consolidated operating results Percentages indicate year-on-year changes Revenue Operating profit Profit before tax Profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % Nine months ended September 30, 2025 5,994 3.4 1,856 (6.7) 1,784 (10.7) 1,234 (10.3) Nine months ended September 30, 2024 5,799 12.4 1,990 5.8 1,998 1.0 1,376 1.1 Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Millions of yen % Millions of yen % Yen Yen Nine months ended September 30, 2025 1,234 (10.6) 1,222 (11.8) 77.96 － Nine months ended September 30, 2024 1,381 1.1 1,385 (0.4) 85.62 － (2) Consolidated financial position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets Millions of yen Millions of yen Millions of yen % As of September 30, 2025 12,617 9,680 9,682 76.7 As of December 31, 2024 13,590 10,281 10,283 75.7 2. Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended December 31, 2024 － 0.00 － 35.00 35.00 Year ending December 31, 2025 － 0.00 － Year ending December 31, 2025 (Forecast) 50.00 50.00 Note: Revisions to the most recently released dividend forecast : None 3. Forecast of consolidated financial results for the year ending December 31, 2025 (from January 1, 2025 to December 31, 2025) Percentages indicate year-on-year changes Revenue Operating profit Profit before tax Profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 8,265 4.6 2,523 (7.2) 2,471 (13.5) 1,671 (19.3) 1,671 (19.4) 105.98 Note: Revisions to the most recently released earnings forecast : Yes
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―2― * Notes (1) Changes in significant subsidiaries during the Period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies and changes in accounting estimates Changes in accounting principles required by IFRS: None Changes in accounting policies due to other reasons: None Changes in accounting estimates: None (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 15,949,053 shares As of December 31, 2024 16,156,453 shares Number of treasury shares at the end of the period As of September 30, 2025 365,031 shares As of December 31, 2024 115,305 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Nine months ended September 30, 2025 15,837,245 shares Nine months ended September 30, 2024 16,130,254 shares * These Consolidated Financial Results are not included in the scope of audits by certified public accountants or audit corporations. Yes * Explanation concerning appropriate use of the earnings forecast and other matters to note (Caution regarding forward-looking statements) Earnings forecast and other forward -looking statements contained in this document are based on information available at the time of this document’s preparation and on certain assumptions that are deemed to be reasonable. These forward -looking statements do not guarantee future performance, and actual results, performance, achievements or financial position may differ materially from those expressed or implied herein due to a range of factors. (Revision of earnings forecast) The Company has revised its full -year consolidated earnings forecast announced on February 14, 2025, based on the consolidated results for the nine months ended September 30, 2025 and the outlook for the remainder of the current fiscal year. For details, please refer to “1. Overview of operating results and financial position (3) Forecast for consolidated financial results” on page 5 of the Accompanying Materials. The Company resolved to repurchase treasury stock at its Board of Directors meeting held on May 14, 2025, and completed said repurchase on September 11, 2025. The Basic earnings per share in this revised forecast reflects the impact of this share repurchas e. For full details, please refer to the “Notice Regarding the Status and Completion of the Repurchase of Treasury Stock” disclosed on September 12, 2025. (Method of obtaining supplementary materials to quarterly financial results) Supplementary materials for the financial results are disclosed on TDnet and the Company's website on the same day.
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―3― ○Accompanying Materials – Contents 1. Overview of operating results and financial position ····································································· ··············· 4 (1) Overview of consolidated operating results for the nine months ended September 30, 2025 ····················· ··············· 4 (2) Overview of consolidated financial position as of September 30, 2025 ·············································· ··············· 4 (3) Forecast for consolidated financial results ················································································ ··············· 5 2. Condensed quarterly consolidated financial statement and key notes ·················································· ··············· 6 (1) Condensed quarterly consolidated statement of financial position ···················································· ··············· 6 (2) Condensed quarterly consolidated statement of income and consolidated statement of comprehensive income ··············· 8 (3) Condensed quarterly consolidated statement of changes in equity ···················································· ············· 10 (4) Condensed quarterly consolidated statements of cash flows ··························································· ············· 12 (5) Notes on condensed quarterly consolidated financial statements ······················································ ············· 13 (Note on the going-concern assumption) ················································································ ············· 13 (Applicable financial reporting framework) ············································································· ············· 13 (Changes in significant subsidiaries during the period) ································································ ············· 13 (Segment information) ······································································································ ············· 13 (Notes to revenue) ··········································································································· ············· 14
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―4― 1. Overview of operating results and financial position (1) Overview of consolidated operating results for the nine months ended September 30, 2025 For the fiscal year spanning January 1, 202 5, to September 30, 2025, the Japanese economy has been gradually recovering overall, driven by an increase in service demand and inbound tourism, as well as growth in capital investment, including software, despite some are as experiencing stagnation. However, uncertainties persist due to ongoing inflation, geopolitical risks, concerns over overseas economies, and fluctuations in financial markets. In the domestic information services sector, the demand for cloud services in corporate systems has been continuously increas ing. Additionally, as enterprises pursue digital transformation (DX), there's a growing demand for information systems that offer superior cost efficiency and convenience for enhancing productivity and operational efficiency. In the internet industry, while the DX trend continues to reshape existing business models and industry structures, primarily among major players, the advertising market is evolving to include not just a digital shift in media but also an integrated approa ch to customer engagement that incorporates traditional legacy media. Against this backdrop, our group has continued to offer cloud services and support corporate marketing efforts, maintaining a n integrated manufacturing and sales system. Our cloud solution business's flagship products, Cloud ERP "ZAC" and "Reforma PSA," have seen stable growth and contributed significantly to our performance, demanded broadly across sectors that require project management. In our mar keting solutions business, we have provided a range of solutions to support clients in implementing their mar keting strategies by translating these strategies into actionable tactics, including strategy formulation, management, and performance evaluation of web advertising based on data a nalytics, creation of websites and digital content, and planning and development of applications and SNS strategy. Efforts have also been made to enhance corporate value sustainably by acquiring new clients, deepening relationships with key accounts, investing in marketing initiatives and research and development, as well as bolstering recruitment. Furthermore, in research and development, we have actively invested in the development of new AI-powered features and services to respond to changes in the market environment and customer needs driven by the rapid advancement of new technologies such as AI. Consequently, the consolidated results for the Nine months ended September 30, 2025 were as follows: revenues reached 5,994,379 thousand yen (an increase of 3.4% year on year), operating profit was 1,856,396 thousand yen (a decrease of 6.7% year on year), profit before tax stood at 1,784,432 thousand yen (a decrease of 10.7% year on year ), and profit attributable to owners of parent was 1,234,688 thousand yen (a decrease of 10.6% year on year). Segment wise performance is detailed as follows: (a) Cloud Solutions Business The revenues reached 4,164,733 thousand yen (an increase of 15.5% year on year), operating profit was 1,847,422 thousand yen (an increase of 19.5% year on year). Against the initial plan, revenue was worse, but operating profit remained steady. (b) Marketing Solutions Business The revenues reached 1,829,646 thousand yen (a decrease of 16.5% year on year), operating profit was 3,044 thousand yen (a decrease of 99.3% year on year). Against the initial plan, revenue and operating profit were weak. (2) Overview of consolidated financial position as of September 30, 2025 Total assets as of September 30, 2025, decreased by 972,877 thousand yen from the end of the prior fiscal year to 12,617,306 thousand yen. This was mainly due to decreases of 855,671 thousand yen in cash and cash equivalents. Total liabilities were reduced by 371,678 thousand yen compared to the end of the prior fiscal year, totaling 2,936,880 thousand yen. This was mainly due to reductions of 447,908 thousand yen in contract liabilities. Total equity was 9,680,426 thousand yen decreased by 601,199 thousand yen from the end of the previous fiscal year. This was mainly due to an increase of 1,234,688 thousand yen in the recording of profit attributable to owners of the parent, offset by a reduction of 1,276,018 thousand yen in share repurchases and 561,440 thousand yen in the cash dividends paid.
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―5― (3) Forecast for consolidated financial results Based on the consolidated operating results for the nine months ended September 30, 2025 and the future outlook, the Company has revised its full- year consolidated earnings forecast announced on February 14, 2025. For details, please refer to the “ Notice Regarding Revision of Full -Year Consolidated Financial Forecasts for the Fiscal Year Ending December 31, 2025” announced today. There are no changes to the dividend forecast announced on February 14, 2025. Revision of forecast of consolidated financial results for the year ending December 31, 2025 (from January 1, 2025 to December 31, 2025) Revenue Operating profit Profit before tax Profit Profit attributable to owners of parent Basic earnings per share Previous forecast (A) Millions of yen 9,142 Millions of yen 2,985 Millions of yen 3,020 Millions of yen 2,099 Millions of yen 2,099 Yen 131.80 Revised forecast (B) 8,265 2,523 2,471 1,671 1,671 105.98 Change (B-A) (876) (461) (548) (427) (427) Change (%) (9.6) (15.5) (18.2) (20.4) (20.4) (Reference) Results for the previous period (the year ended December 31, 2024) 7,899 2,720 2,856 2,070 2,072 128.56 Note: The Company resolved to repurchase treasury stock at its Board of Directors meeting held on May 14, 2025, and completed said repurchase on September 11, 2025. The Basic earnings per share in this revised forecast reflects the impact of this share repurchase. For full details, please refer to the “Notice Regarding the Status and Completion of the Repurchase of Treasury Stock” disclosed on September 12, 2025.
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―6― 2. Condensed quarterly consolidated financial statement and key notes (1) Condensed quarterly consolidated statement of financial position (Thousands of yen) As of December 31, 2024 As of September 30, 2025 Assets Current assets Cash and cash equivalents 9,903,123 9,047,451 Trade and other receivables 974,577 1,035,836 Contract assets 434,012 298,087 Other financial assets 746,188 721,881 Other current assets 397,363 133,334 Total current assets 12,455,265 11,236,591 Non-current assets Property, plant and equipment 574,214 860,803 Intangible assets 119,889 170,268 Other financial assets 113,626 113,387 Deferred tax assets 287,019 187,452 Other non-current assets 40,169 48,803 Total non-current assets 1,134,918 1,380,715 Total assets 13,590,184 12,617,306
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―7― (Thousands of yen) As of December 31, 2024 As of September 30, 2025 Liabilities and equity Liabilities Current liabilities Trade and other payables 472,523 294,881 Contract liabilities 1,600,707 1,152,799 Lease liabilities 140,310 205,182 Income tax payables 233,141 155,977 Provisions 45,396 10,285 Other current liabilities 494,532 517,751 Total current liabilities 2,986,612 2,336,875 Non-current liabilities Lease liabilities 195,519 473,550 Provisions 126,427 126,454 Total non-current liabilities 321,946 600,004 Total liabilities 3,308,559 2,936,880 Equity Capital stock 1,193,528 1,193,528 Capital surplus 1,095,202 1,095,202 Treasury shares (313,398) (1,055,868) Retained earnings 8,202,954 8,356,524 Other components of equity 105,470 93,411 Equity attributable to owners of the parent 10,283,756 9,682,797 Non-controlling interests (2,131) (2,371) Total equity 10,281,625 9,680,426 Total liabilities and equity 13,590,184 12,617,306
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―8― (2) Condensed quarterly consolidated statement of income and consolidated statement of comprehensive income Condensed quarterly consolidated statement of income (Thousands of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Revenue 5,799,504 5,994,379 Cost of sales 1,925,223 2,071,574 Gross profit 3,874,281 3,922,805 Selling, general and administrative expenses 1,810,565 2,033,579 Research and development 74,671 38,759 Other income 1,556 13,252 Other expenses 243 7,322 Operating profit 1,990,358 1,856,396 Finance income 25,573 21,615 Finance costs 17,876 93,579 Profit before tax 1,998,054 1,784,432 Income tax expenses 621,476 549,986 Profit 1,376,577 1,234,446 Profit attributable to: Owners of parent 1,381,024 1,234,688 Non-controlling interests (4,446) (241) Profit 1,376,577 1,234,446 Earnings per share Basic earnings per share (Yen) 85.62 77.96 Diluted earnings per share (Yen) - -
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―9― Condensed quarterly consolidated statement of comprehensive income (Thousands of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Profit 1,376,577 1,234,446 Other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 8,617 (12,057) Total of items that may be reclassified subsequently to profit or loss 8,617 (12,057) Other comprehensive income, net of taxes 8,617 (12,057) Comprehensive income 1,385,195 1,222,388 Attributable to: Owners of the parent 1,389,805 1,222,628 Non-controlling interests (4,609) (239) Comprehensive income 1,385,195 1,222,388
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―10― (3) Condensed quarterly consolidated statement of changes in equity Nine months ended September 30, 2024 (Thousands of yen) Equity attributable to owners of parent Capital stock Capital surplus Treasury shares Retained earnings Balance on January 1, 2024 1,193,528 1,095,202 (112,862) 6,620,867 Profit 1,381,024 Other comprehensive income Total comprehensive income - - - 1,381,024 Restricted Stock -based payment transactions 19,621 (5,751) Dividends (483,785) Share repurchase (72) Total transactions with owners - - 19,549 (489,536) Balance on September 30, 2024 1,193,528 1,095,202 (93,313) 7,512,355 Equity attributable to owners of parent Non-controlling interests Equity Other components of equity Total Exchange differences on translation of foreign operations Total Balance on January 1, 2024 87,318 87,318 8,884,053 227 8,884,280 Profit 1,381,024 (4,446) 1,376,577 Other comprehensive income 8,780 8,780 8,780 (162) 8,617 Total comprehensive income 8,780 8,780 1,389,805 (4,609) 1,385,195 Restricted Stock -based payment transactions 13,870 13,870 Dividends (483,785) (483,785) Share repurchase (72) (72) Total transactions with owners - - (469,987) - (469,987) Balance on September 30, 2024 96,098 96,098 9,803,871 (4,382) 9,799,488
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―11― Nine months ended September 30, 2025 (Thousands of yen) Equity attributable to owners of parent Capital stock Capital surplus Treasury shares Retained earnings Balance on January 1, 2025 1,193,528 1,095,202 (313,398) 8,202,954 Profit 1,234,688 Other comprehensive income Total comprehensive income - - - 1,234,688 Restricted Stock -based payment transactions 14,840 (970) Dividends (561,440) Share repurchase (1,276,018) Share cancelled 518,707 (518,707) Total transactions with owners - - (742,470) (1,081,117) Balance on September 30, 2025 1,193,528 1,095,202 (1,055,868) 8,356,524 Equity attributable to owners of parent Non-controlling interests Equity Other components of equity Total Exchange differences on translation of foreign operations Total Balance on January 1, 2025 105,470 105,470 10,283,756 (2,131) 10,281,625 Profit 1,234,688 (241) 1,234,446 Other comprehensive income (12,059) (12,059) (12,059) 1 (12,057) Total comprehensive income (12,059) (12,059) 1,222,628 (239) 1,222,388 Restricted Stock -based payment transactions 13,870 13,870 Dividends (561,440) (561,440) Share repurchase (1,276,018) (1,276,018) Share cancelled - - Total transactions with owners - - (1,823,588) - (1,823,588) Balance on September 30, 2025 93,411 93,411 9,682,797 (2,371) 9,680,426
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―12― (4) Condensed quarterly consolidated statements of cash flows (Thousands of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 1,998,054 1,784,432 Depreciation and amortization 267,932 258,360 Finance income (14,000) (21,615) Finance costs 2,329 82,910 Gain on liquidation of subsidiaries - (7,181) Decrease (increase) in trade and other receivables (141,787) (64,020) Decrease (increase) in contract assets 217,093 135,633 Increase (decrease) in trade and other payables (119,512) (176,649) Increase (decrease) in contract liabilities (142,373) (447,616) Increase (decrease) in provision (23,153) (34,963) Other 16,181 20,120 Subtotal 2,060,763 1,529,410 Interest received 23,847 23,502 Interest paid (2,329) (4,810) Income taxes paid (574,002) (527,588) Cash flows from operating activities 1,508,279 1,020,514 Cash flows from investing activities Payments into time deposits (20,001) (19,611) Purchase of property, plant and equipment (56,900) (18,670) Purchase of intangible assets (41,562) (81,442) Payments for lease and guarantee deposits (242) (1,520) Proceeds from collection of lease and guarantee deposits 10,296 1,498 Other (997) 0 Cash flows from investing activities (109,408) (119,745) Cash flows from financing activities Repayments of lease liabilities (149,288) (152,217) Cash dividends paid (483,534) (561,372) Payments for acquisition of treasury shares (72) (1,276,018) Decrease (increase) in deposits for acquisition of treasury shares - 274,831 Cash flows from financing activities (632,895) (1,714,777) Net increase (decrease) in cash and cash equivalents 765,976 (814,008) Cash and cash equivalents at beginning of period 8,707,486 9,903,123 Effect of exchange rate change on cash and cash equivalents (2,565) (41,662) Cash and cash equivalents at end of period 9,470,897 9,047,451
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―13― (5) Notes on condensed quarterly consolidated financial statements (Note on the going-concern assumption) Not applicable (Applicable financial reporting framework) The Company’s condensed quarterly consolidated financial statements (condensed quarterly consolidated statements of financial position, condensed quarterly consolidated statements of profit or loss, condensed quarterly consolidated statements of comprehensive income or loss, condensed quarterly consolidated statements of changes in equity, condensed quarterly consolidated statements of cash flows, and notes) have been prepared in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (however, omission of description specified in Article 5, Paragraph 5 of the said standards is applied), and some of disclosure items and notes required by IAS 34 “Interim Financial Reporting” are omitted. (Changes in significant subsidiaries during the period) Not applicable Although this event does not constitute a change in specific subsidiaries, oRo Digital Asia Pte. Ltd. completed its liquidation during the current consolidated quarter and has consequently been excluded from the scope of consolidation. (Segment information) Revenues and results for each reportable segment Nine months ended September 30, 2024 (Thousands of yen) Reportable Segment Adjustments (Note 1) Consolidated Cloud Solutions Marketing Solutions Total Revenue Revenue from external customers 3,607,195 2,192,309 5,799,504 - 5,799,504 Intersegment revenue - - - - - Total 3,607,195 2,192,309 5,799,504 - 5,799,504 Segment income 1,546,583 442,461 1,989,044 1,313 1,990,358 Finance income 25,573 Finance costs 17,876 Profit before tax 1,998,054 Other Depreciation and amortization 178,974 88,958 267,932 - 267,932 (Note) 1. The adjustment of 1,313 thousand yen to segment income mainly consists of “Other income” and “Other expense” that are not attributable to any reportable segment. 2. Segment income corresponds to operating profit in the consolidated statements of income. 3. Segment assets, segment liabilities, and capital expenditures are not presented since they are not subject to a review to determine the allocation of management resources and evaluate financial results.
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―14― Nine months ended September 30, 2025 (Thousands of yen) Reportable Segment Adjustments (Note 1) Consolidated Cloud Solutions Marketing Solutions Total Revenue Revenue from external customers 4,164,733 1,829,646 5,994,379 - 5,994,379 Intersegment revenue - - - - - Total 4,164,733 1,829,646 5,994,379 - 5,994,379 Segment income 1,847,422 3,044 1,850,466 5,930 1,856,396 Finance income 21,615 Finance costs 93,579 Profit before tax 1,784,432 Other Depreciation and amortization 176,221 82,138 258,360 - 258,360 (Note) 1. The adjustment of 5,930 thousand yen to segment income mainly consists of “Other income” and “Other expense” that are not attributable to any reportable segment. 2. Segment income corresponds to operating profit in the consolidated statements of income. 3. Segment assets, segment liabilities, and capital expenditures are not presented since they are not subject to a review to determine the allocation of management resources and evaluate financial results. (Notes to revenue) The breakdown of revenue from contracts with customers The Group establishes Cloud Solutions and Marketing Solutions as two separate reportable segments. The breakdown of revenue from contracts with customers in each business segment is as follows: (Thousands of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Cloud Solutions Marketing Solutions Total Cloud Solutions Marketing Solutions Total ZAC license fee, maintenance fee, and SaaS and other monthly service fees 2,816,365 - 2,816,365 3,160,222 - 3,160,222 ZAC ERP installation consultation, customization 419,158 - 419,158 571,862 - 571,862 Reforma PSA 133,558 - 133,558 159,608 - 159,608 dxeco, Semrush, and other products, etc. 238,112 - 238,112 273,040 - 273,040 Marketing / promotion - 1,022,041 1,022,041 - 760,321 760,321 System / website integration, etc. - 668,802 668,802 - 612,048 612,048 Operation support / operation office - 501,464 501,464 - 457,275 457,275 Total 3,607,195 2,192,309 5,799,504 4,164,733 1,829,646 5,994,379 Cloud Solutions Business 1. The business segment “ZAC license fee, maintenance fee, and SaaS and other monthly service fees” includes sales of softwar e license, maintenance of systems, provision of cloud environment and monthly service on SaaS contract, with regard to “ZAC.” The Company provides a combination of software licensing, system maintenance, cloud environment provision, and other services that are necessary for customers to use the systems to allow the customers to enjoy the benefits of using the systems, and thus these are considered a single performance obligation. There are two types of software licensing contracts: one-time purchase contract and SaaS contract. Under a one -time purchase contract, software license fees are received in a lump sum at the time of the conclusion of a contract, and maintenance and other fees are received monthly. Software licensing and maintenance and other services are recognized together as a single performance obligation to be satisfied over time during the period such fees are expected to provide the customer with material rights. Since the contract period is not specified in the contracts concluded with customers, t he period the fees are expected to provide the customer with material rights is determined by considering the characteristics of the software licensing and related services (history of continued use by the customer, quality, etc.). Specifically, as the one -time purchase fee is approximately equivalent to the 30 -month fee of a SaaS contract, the amount of such a one-time purchase fee is allocated to the material right and recognized as revenue over the 30 months. Under a SaaS contract, software license fees are received monthly, the same as system maintenance fees, cloud environment provision service
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―15― fees and other monthly service fees under a one-time purchase contract. These performance obligations are primarily satisfied over time, and thus the monthly fees are recognized as revenue monthly over the service provision period. 2. The business segment “ZAC ERP installation consultation, customization” includes installation support service related to “ ZAC” and additional development required at the time of installation. If the contract amount or the total cost to completion can be estimated reliably, revenue is recognized as the performance obligation is satisfied based on the progress towards satisfaction of the performanc e obligation measured as of the end of the reporting period. The progress towards satisfaction of the performa nce obligation is measured using the input method (the cost-to-cost method) at the costs incurred relative to the estimated total cost to completion. If the contract amount or the total cost to completion cannot be estimated reliably, revenue is recognized in an amount equal to the portion of the costs incurred that is considered highly recoverable (the cost recovery method). 3. The business segment “Reforma PSA” includes provision of monthly license for Reforma PSA. Its performance obligation is to provide an environment for the use of software. This performance obligation is primarily satisfied over time, and thus revenue is recognized over the period the service is rendered. 4. The business segment “dxeco, Semrush, and other products, etc.” includes monthly service fee for SaaS contracts of dxeco and sales of an agent of software developed by other vendors. For SaaS contracts related to the SaaS management tool “dxeco,” software license fees are collected monthly. The performance obligation is primarily fulfilled over time, so the monthly fee is recognized as revenue monthly throughout the service provision period. Regarding the sale of third -party software as an agent, the performance obligation for these sales is satisfied when the contractual delivery conditions are met, such as when the product is transferred to, or accepted, by the customer, and thus revenue is recognized at that point in time. As the Group is considered to be an agent in the nature of the business, given its primary responsibility for fulfillin g promises, its exposure to inventory risk, and its discretion in establishing prices, revenue is recognized in the net amount of consideration received as a fee from the customer for the services rendered, less related costs, or in the amount of consideration as a certain fee in the form of a commission. Marketing Solutions Business 5. The business segment “Marketing / promotion” includes planning of customer’s marketing and promotion, placement of adverti sements, and research (including sales from advertisement management and those achieved as an agency). Revenue is recognized depend ing on the nature of the rights granted to the customer. When the rights are transferred to the customer at a certain point in time, revenue is recognized at that point in time, and when the rights are available for use by the customer over a certain perio d of time, revenue is recognized over that period of time. For sales from advertisement management and those achieved as an agency, the Group is considered to be an age nt in the nature of the business, given its primary responsibility for fulfilling promises, its exposure to inventory risk, and its discretion in establishing prices, revenue is recognized in the net amount of consideration received as a fee from the customer for the services rendere d, less related costs, or in the amount of consideration as a certain fee in the form of a commission. 6. The business segment “System / website integration, etc.” includes construction and renewal of websites, and contracted development and maintenance of systems as a system integrator, etc. For construction and renewal of websites and contracted developme nt, if the contract amount or the total cost to completion can be estimated reliably, revenue is recognized as the performance obligation is satisfied based on the progress towards satisfaction of the performance obligation measured as of the end of the reporting period. The progress towards satisfaction of the performance obligation is measured using the input method (the cost-to-cost method) at the costs incurred relative to the estimated total cost to completion. If the contract amount or the total cost to completion cannot be estimated reliably, revenue is recognized in an amount equal to the portion of the costs incurred that is considered highly recoverable (the cost recovery method). For maintenance of systems, etc., revenue is recognized when the services are completed and billable. 7. The business segment “Operation support / operation office” includes operation, updating and other services on websites. The performance obligation is satisfied when the service rendered is accepted by the customer, and thus revenue is recognized at that point in time.