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Densan System Holdings Co., Ltd. Presentation Materials for the 4Q FY 2025 Results Briefing Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Securities Code: 4072 Forward-looking statements contained in this document are based on current estimates and projections and include potential risks and uncertainties. Future results are therefore not guaranteed. Please note that actual results may differ from projections due to changes in the business environment and other factors. Amounts are displayed rounded down to units of one million yen. Aggregate totals stated in charts may not tally with a result. Percentages are displayed rounded to the second decimal point. *Information from 2Q FY2021 and before is that of Densan System Co., Ltd.
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Table of Contents ● 4Q FY 2025 Business Results Highlights ● 4Q FY 2025 Business Results Quarterly Trends ● 4Q FY 2025 Business Results Financial Condition (B/S) ● Cash Allocation Strategy ● 4Q FY 2025 Business Results Information Services Segment Summary ● 4Q FY 2025 Business Results Information Services Segment Quarterly Trends ● 4Q FY 2025 Business Results Information Services Segment in Detail (Google Business) ● 4Q FY 2025 Business Results Information Services Segment in Detail (BPO Business) ● 4Q FY 2025 Business Results Payment Agency Services Segment Summary ● 4Q FY 2025 Business Results Payment Agency Services Segment Quarterly Trends ● 4Q FY 2025 Business Results Payment Agency Services Segment in Detail (Payment and Collection Agency Services / Online Payment Services) ● FY 2025 Key Initiatives ● FY 2026 Financial Forecasts ● Reclassification of Sub-segments (Starting FY 2026) ● FY 2026 Financial Forecasts (Information Services segment) ● FY 2026 Financial Forecasts (Payment Agency Service Segment) ● Mid-Term Management Plan: FY2026 - FY2028 ● Mid-Term Management Plan: Key Initiatives FY2026–FY2028 ● Key Strategies for FY 2026 ● Long Term Plan FY 2021 - FY 2027 ● Shareholder Returns ● Sustainability Policy ● Response to Achieve Management with Awareness of Capital Cost and Stock Price ● Topics （Appendix) ● Company Profile ● Management Philosophy ● Trends in Key Consolidated Financial Indicators ● Segment Description 2 ・・・P３ ・・・P４ ・・・P５ ・・・P６ ・・・P７ ・・・P８ ・・・P９ ・・・P10 ・・・P11 ・・・P12 ・・・P13 ・・・P14 ・・・P15 ・・・P16 ・・・P17 ・・・P18 ・・・P19 ・・・P20 ・・・P21 ・・・P22 ・・・P23 ・・・P24 ・・・P26 ・・・P27 ・・・P36 ・・・P37 ・・・P38 ・・・P39
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Highlights ● Net sales: 16th consecutive year of growth, driven by Google-related business (incl. GIGA School projects). ● Profits: Significant YoY growth following the impact of unprofitable projects in the previous year; trending upward with sales expansion. Unit：Milions of Yen Net Sales Operating Profit Ordinary Profit Net Income 3 （計画） FY 2024 FY 2025 YoY Full-Year Plan ProgressAmount Ratio Net Sales 61,256 68,131 6,874 11.2% 67,500 100.9% Operating Profit 2,311 3,624 1,313 56.8% 3,500 103.6% Profit Margin 3.8% 5.3% 1.5%pt Up 5.2% Ordinary Profit 2,534 3,843 1,308 51.6% 3,530 108.9% Ordinary Profit Margin 4.1% 5.6% 1.5%pt Up 5.2% Net Income 1,850 2,896 1,046 56.5% 2,530 114.5% FY2021 FY2022 FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Quarterly Trends ● Net Sales: Consistent period-over-period growth. ● 4Q Results: Up 1,801 million yen (+10% YoY), with every quarter of the fiscal year hitting record highs. Unit：Milions of Yen ● 4Q Operating Profit: Up YoY, recovering from the previous year's unprofitable projects. ● Vs. FY2023: Profit missed previous levels due to increased personnel and procurement costs. ● Quarterly Trends: Operating profit experienced more significant fluctuations than net sales. Net Sales Operating Profit 4 FY2023FY2022 FY2024 FY2025FY2021
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing FY2024 FY2025 Amount Change A) Total cash 34,811 39,985 5,174 Cash and deposits 19,279 22,666 3,386 Money held in trust 15,531 17,319 1,787 B) Deposits received in payment agency services 19,370 22,288 2,918 C) Interest-bearing debt 1,075 629 ▲ 445 Net cash (A - B - C) 14,365 17,067 2,702 FY2024 FY2025 Amount Change Total assets 61,747 69,112 7,365 Current assets 53,876 60,999 7,122 Non-current assets 7,870 8,113 242 Total liabilities 39,452 44,230 4,778 Current liabilities 37,804 43,008 5,204 Non-current liabilities 1,648 1,222 ▲ 425 Total net assets 22,294 24,881 2,587 Equity ratio 35.8% 35.6% 0.1%pt Down Deposits received in payment agency services 19,370 22,288 2,918 Equity ratio excluding deposits received in payment agency services 52.1% 52.6% 0.5%pt Up 4Q FY 2025 Business Results Financial Condition (B/S) ● Total Assets: Up 7.3 billion yen vs. prior fiscal year-end. Main factors: Increases in money trusts, cash and deposits, and prepaid expenses. ● Liabilities: Up 4.7 billion yen vs. prior fiscal year-end. Main factor: Increase in deposits received (payment collection services). Unit：Milions of Yen *Deposits received in payment agency services refers to funds deposited with payment slips, etc. As they appear on the balance sheet, they are included in the calculation of the equity ratio for accounting purposes. 5 ● Note on Net Cash Temporary customer deposits in the payment collection business are recognized as offsetting entries in both Assets (money trusts) and Liabilities (deposits received).Adjusting for these characteristics, the effective net cash available for strategic allocation is shown below:
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Cash Allocation Strategy 6 Optimizing Capital Allocation to Drive Strategic Growth First Priority Shareholder returns: Delivering stable, consistent dividends while prioritizing financial health. (Dividend for FY 2026: Approx. ¥1.08 billion forecast) Second Priority Financial soundness: Secure and maintain a liquidity buffer to cover payment advances. Third Priority Growth investment: Strategic investment to secure competitive advantage while maintaining a balance between security and returns. Flow：Free cash flow 1. Safety and Liquidity Reserve Working funds A reserve for monthly funding needs. (Secure funds of about 1.2 times monthly sales = ¥8.0 billion) 2. Payment Collection Agency Buffer Payment Collection agency funds Securing funds to address liquidity risk from payment advances (¥3.0 billion) 3. Growth investment Fund Investment in growth strategies, M&A standby funds Strategic reserve in preparation for expansion into new business areas and dynamic M&A to acquire technology. (¥6.0 billion) Stock：Strategic allocation of net cash（¥17.0 billion as of 4Q 2025) Safety and Liquidity Reserve Payment Collection Agency Budget Growth Investment Fund Note: From the standpoint of security, efficiency, and growth, cash is properly rebalanced through a strategic breakdown of the stock (balance) of funds earned in business flow.
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing FY 2024 FY 2025 YoY Full-Year Plan ProgressAmount Ratio Net sales 37,281 43,061 5,779 15.5% 42,322 101.7% SI and software development 27,188 29,483 2,294 8.4% 29,475 100.0% Information processing 5,850 6,199 349 6.0% 6,397 96.9% Sales of merchandise and finished goods 4,138 7,287 3,148 76.1% 6,366 114.5% Other revenue 104 91 ▲ 13 ▲12.7% 83 109.5% Operating profit ▲ 278 942 1,220 - 851 110.8% Operating profit margin ▲0.7% 2.2% 2.9%pt Up 2.0% 4Q FY 2025 Business Results Information Services Segment Summary ● Net Sales: 43,061 million yen (+15.5% YoY). ● SI & Software Development: Strong growth in auto auction systems and cloud services (Google Workspace, Google Maps). ● Goods & Product Sales: Significant YoY increase due to the progress of GIGA School implementation. ● Operating Profit: Substantial increase, recovering from previous year’s unprofitable projects. Unit：Milions of Yen Net Sales Operating Profit 7 FY2021 FY2022 FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Information Services Segment Quarterly Trends ● Sales Growth: Significant increase from 3Q onward, driven by device rollouts for the GIGA School project. ● Consistent Performance: 12 consecutive quarters of YoY revenue growth since 1Q 2023. Unit：Milions of Yen ● Operating Profit: Substantial YoY increase, recovering from previous year’s unprofitable projects. ● Rise in procurement costs, increased personnel expenses, and expansion of R&D investment ● Operating income growth trailed net sales due to lower margins on GIGA School projects. Net Sales Operating Profit 8 FY2021 FY2022 FY2023 FY2024 FY2025
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Information Services Segment in Detail (Google Business) ● The number of Google Workspace clients grew steadily ● Net sales increased significantly as the deployment of GIGA School projects progressed from the third quarter onward. Unit：Milions of Yen – Google Workspace adopter companiesNet Sales （Cumulative） Google Workspace Adopter Companies2,326 Google business annual sales 40.2 ％ increase from the previous fiscal year FY2025FY2024FY2023 9 FY2021 FY2022 FY2023 FY2024 FY2025
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Information Services Segment in Detail (BPO Business) Unit：Milions of Yen ● 4Q Net Sales: 1,343 million yen (+2.2% YoY) ● Full-Year Net Sales: 4,201 million yen (+8.3% YoY) ● Billing and document preparation services remained robust. ● Data entry and shipping label printing services saw a decline in both volume and sales due to a shrinking target market. ● Strategic pivot toward high-value-added BPO, integrating system solutions with operational expertise. – Number of Items processed (in thousand items)Net Sales FY 2025FY 2024.FY 2023 10 （Cumulative） FY2021 FY2022 FY2023 FY2024 FY2025
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing FY2024 FY2025 YoY Full-year plan ProgressAmount Ratio Net sales 23,974 25,069 1,095 4.6% 25,178 99.6% Payment and collection agency service 22,204 23,139 935 4.2% 23,187 99.8% Online payment service 982 1,188 206 21.0% 1,067 111.4% Remittance service 226 53 ▲ 173 ▲76.4% 49 109.8% Payment agency peripheral services 321 316 ▲ 5 ▲1.6% 315 100.4% Other revenue 239 372 132 55.2% 560 66.4% Operating profit 2,579 2,676 97 3.8% 2,649 101.0% Operating profit margin 10.8% 10.7% 0.1%pt Down 10.5% 4Q FY 2025 Business Results Payment Agency Services Segment Summary ● Core collection and online payment services saw revenue growth, driven by steady performance from clients onboarded since the second half of the previous fiscal year. ● Remittance services decreased significantly following the termination of international money transfer services last year. ● Operating profit grew in tandem with primary service revenue. Unit：Milions of Yen Net Sales Operating profit 11 FY2021 FY2022 FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Payment Agency Services Segment Quarterly Trends ● Net sales hit an all-time high, consistently exceeding previous year levels each quarter due to new client onboarding and price optimizations. Unit：Milions of Yen ● Operating profit increased steadily alongside revenue growth ● 4Q profit saw a YoY decline due to higher procurement costs in certain payment segments; however, we intend to offset this by revising selling prices. Net Sales Operating Profit 12 FY2023FY2022 FY2024 FY2025FY2021
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing 4Q FY 2025 Business Results Payment Agency Services Segment in Detail (Payment and Collection Agency Services / Online Payment Services) Unit：Milions of Yen ● Transaction volume increased for large-scale accounts on boarded last year. ● New client implementations, primarily centered on local governments, are progressing steadily. ● Additionally, successful price pass-throughs in response to rising procurement costs contributed to revenue growth, maintaining a continuous year-on-year increase since the second quarter of last year. – – Number of Items processed (in thousand items)Net Sales FY 2025FY 2024FY 2023 13
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Transformation into a Value-Creating Company ● DSK Transformation ○ Shifting to a Service-Based Model: Expanding the recurring revenue (increased 8% increase in value despite a 2.2-point decline in its overall ratio). ○ New Organization: Established the Business Design & Planning Division to drive Information Processing Service business. ○ New Initiatives: Planning and promoting new business initiatives and service development. (DAO, Digital Invoice) ● Strengthening Group-Wide Synergy ○ Executive Leadership: Appointed a dedicated Director to oversee group-wide collaboration. ○ Direct Supervision: Established the Sales Promotion Office within Densan System, reporting directly to the President to lead Group-wide sales efforts. ○ Strategy: Driving cross-organizational sales activities that transcend traditional organizational boundaries. ● Market Expansion (Adjacencies) ○ New Department: Established the Co-Creation Ecosystem Planning Office within the Business Design & Planning Division. ○ Focus: Planning and promoting next-generation payment services utilizing Web3 and blockchain technology. (e.g. Stablecoin payment infrastructure) ● Human Capital Development ○ Recruitment Growth: Welcoming 36 new graduates in April 2025 (vs. 25 new graduates and 89 mid-career hires in 2024). ○ Cloud Expertise: Certified cloud technology professionals reached a cumulative total of 545. ○ Strategic Support: Cloud certifications have been officially prioritized and supported since 2023. (Certification incentives in 2023 and 2024 have increased substantially compared to 2022 levels. ) (Cloud-certification holders increased by 150) 4Q FY 2025 Key Initiatives 14 クラウド技術資格者（のべ）Number Cloud certification holders (total)
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing FY 2026 Financial Forecasts ● Net Sales: Targeting 70.0 billion yen (a 2.7% increase YoY). The growth rate is expected to moderate due to the rebound effect following the large-scale GIGA School projects recorded in FY 2025. ● Operating Profit: Projected at 3.65 billion yen. We will expand R&D investments in strategic areas, including blockchain-based payment infrastructure. ● Net Income: Expected to decline YoY as tax rates normalize in FY2026. FY 2025 net income was temporarily elevated by a tax decrease following a subsidiary divestiture, creating a high baseline for comparison. Unit：Milions of Yen 15 FY 2025 FY 2026 Forecast Amount Change YoY Net Sales 68,131 70,000 1,869 2.7% Operating Profit 3,624 3,650 25 0.7% Profit Margin 5.3% 5.2% 0.1%pt Down Ordinary Profit 3,843 3,850 6 0.2% Ordinary Profit Margin 5.6% 5.5% 0.1%pt Down Net Income 2,896 2,620 ▲ 277 ▲9.6% Adjustments to Segment Profit 5 0
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Reclassification of Sub-segments (Starting FY2026) 16 ● Reorganized "SI / Software Development" and "Product Sales" into "SI, Software Development & Product Sales" and "Cloud & Licenses." ● Separated "Collection & Payment Agency Services" into "Offline Convenience Store Payments" and "Direct Debit." ● Integrated "Remittance Services" into "Collection-Related Services." Segment former Subsegment New Subsegment Description Information Service Goods & Product Sales SI, Software Development & Product Sales Contract development, customized package software sales, development/implementation/setup/maintenance for cloud services (Google-related, AWS, Salesforce), worker dispatching, technical support, and sales of network, software products, system hardware, and supplies.SI & Software Development Cloud & Licensing Sales of licenses only (Google-related, AWS, Salesforce, security services), and provision of IDC services (Tono IDC). Information Process BPO Outsourcing (billing and document preparation, call centers, data entry, business process outsourcing, etc.), and information processing for gas stations, gas retailers, etc. Others (Leasing, etc.) Others (Leasing, etc.) Leasing of terminal, servers, etc. Payment Collection Services Payment Collection Services Convenience Store (Offline) Payments Payment slip services, cashless payments (PayPay, etc.), and mobile payment service "Moba-light☆DSK." Direct Debit Direct debit services. Online Payment Services Online Payments Credit card payment services and paperless convenience store payment services. Remittance Services Value-Added Payment Services Domestic remittances (Type II Funds Transfer Service), and "Biz@gent" (a service enabling payment slip processing at locations other than convenience stores).Value-Added Payment Services Other Revenue Other Revenue Other revenue, including Buy Now Pay Later (BNPL) services.
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing FY 2026 Financial Forecasts: Information Services segment ● Overall Segment Performance: We anticipate continued steady performance, driven by high market demand for Cloud, AI, and Outsourcing services. ● SI, Software Development & Hardware Sales: Revenue is expected to decrease. This is due to a rebound effect following the 2025 peak in projects related to the GIGA School Initiative. ● Cloud & Licensing: Sales are expected to expand for Google Workspace and its associated value-added services. ● BPO: Slight revenue decline expected due to contract end with a major account. ● Profitability Improvement: We aim to enhance profit margins by reducing the proportion of low-margin hardware sales and implementing quality improvements in SI and Software Development. Unit：Milions of Yen 17 FY 2025 FY 2026 Forecast Amount Change YoY Net Sales 43,061 43,790 728 1.7% SI・SW Dev・Product Sales 23,793 20,071 ▲ 3,722 ▲15.6% Cloud & Licensing 13,288 17,898 4,609 34.7% BPO 5,888 5,723 ▲ 166 ▲2.8% Other Revenue 91 99 7 8.1% Operating Profit 942 1,544 601 63.8% Operating Profit Margin 2.2% 3.52% 1.3%pt Up
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing FY 2026 Financial Forecasts: Payment Agency Service Segment ● Revenue Growth Strategies: We plan to increase revenue across all sub-segments through the steady rollout of services for new clients. ● Value-Added Payment Services: Revenue is expected to decrease year-on-year due to the termination of a contract with a major client. ● Key Service Promotion: We will drive growth through strategic services, including "PAYSLE" (digital payment slips) and "TREE PAYMENT," which allows customers to select their preferred payment method. ● Profitability Outlook: Operating profit is projected to decrease due to rising costs—such as personnel expenses—and increased investments directed toward new business initiatives. Unit：Milions of Yen 18 FY 2025 FY 2026 Forecast Amount Change YoY Net Sales 25,069 26,210 1,140 4.5% Convenience Store (Offline) Payments 22,450 23,603 1,152 5.1% Direct Debit 688 704 15 2.2% Online Payments 1,188 1,287 98 8.3% Value-Added Payment Services 368 232 ▲ 137 ▲37.1% Other Revenue 372 384 12 3.3% Operating Profit 2,676 2,106 ▲ 570 ▲21.3% Operating Profit Margin 10.7% 8.0% 2.6%pt Down
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Mid-Term Management Plan: FY2026 - FY2028 Unit：Milions of Yen 19 ● Strategic Review: While market demand for AI and DX remains high, the creation of new business streams has taken longer than anticipated. Consequently, we have revised the three-year plan established previous fiscal year. ● Information Services: Revenue growth in FY2026 is expected to be modest due to the post-GIGA School project downturn; however, the expansion of our Cloud Services business remains on track. ● Payment Collection Agency Services: Operating profit is projected to decrease in FY 2026 due to increased investments in blockchain-based payment infrastructure. We anticipate these investments will yield significant results from FY2027 onward. FY 2025 Actual FY 2026 Plan FY 2027 Plan FY 2028 Plan Average YoY Growth rate Net Sales 68,131 70,000 75,000 82,000 6.4% Information Services Segment 43,061 43,790 47,290 52,064 Payment Agency Services Segment 25,069 26,210 27,710 29,936 Operating Profit 3,624 3,650 4,150 4,650 8.8% Information Services Segment 942 1,544 2,092 2,504 Payment Agency Services Segment 2,676 2,106 2,058 2,146 Profit margin 5.3% 5.2% 5.5% 5.7% Information Services Segment 2.2% 3.5% 4.4% 4.8% Payment Agency Services Segment 10.7% 8.0% 7.4% 7.2%
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Mid-Term Management Plan: Key Initiatives (FY2026–FY2028) 20 DSK Transformation→ From vendor to co-creation partner Transitioning from contract development to Service-Based Business Next-generation payment infrastructure Deepening and Expanding → Enhancing the profitability of existing businesses the Payment Business Market Creation Human Capital Investment→ Attracting, developing, and retaining Top Talent Transforming into a Value-Creating Enterprise to Realize a Sustainable Society Deepening and → Leveraging "Licenses + Technical Expertise Expanding AI & DX Scaling the DX Business
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株式会社電算システムホールディングス 2025年12期 決算説明資料 Transformation into a Value-Creating Company ● DSK Transformation ○ Establishment of a Cross-Functional Sales Headquarters: Transitioning into a "co-creation partner" capable of meeting diverse client needs to maximize Lifetime Value (LTV). ○ Shift from Contract Development to Service-Based Models: Focused on the expansion of recurring revenue (stock-type) businesses. ○ Next-Generation Payment Infrastructure: Building a foundation utilizing stablecoins. ● Deepening and Expanding AI & DX ○ Business Model Pivot: Shifting from simple license sales to high-value-added implementation support and solution-based business models leveraging technical expertise. ○ Synergy and Specialization: Strengthening collaboration across group companies and accelerating initiatives in industry-specific DX. ● Evolution and Expansion of Payment Businesses ○ Profitability Enhancement: Expanding functionalities of existing payment services and optimizing commission structures for app-based payments. ○ Market Creation: Targeting public sectors and previously untapped fields to create new market demand. ● Human Capital Management ○ Talent Strategy: Securing, developing, and retaining top-tier talent by revising compensation packages, enhancing employee education, boosting engagement, and optimizing skill utilization. ● Other Strategic Initiatives ○ Organizational Reform: Flattening hierarchies to accelerate decision-making and foster active communication. ○ Project Governance: Strengthening review and monitoring systems to improve quality and margins while eliminating unprofitable projects. ○ Strategic Investment: Pursuing M&A and other forward-looking investments to foster new business creation and secure emerging technologies. Key Strategies for FY2026 21
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Long Term Plan FY2021 ～ FY2027 Unit：Milions of Yen 22 22 Challenge 1000 Targeting 100 Billion Yen in Net Sales by 2027 Entering the Era of Radical Change! Let’s Embrace the Challenge! Information Service ・ BPO Service ・ SW Development / Maintenance & Operations Services ・ Medical Service Cloud Services ・ Cloud Services ・ IDCServices Payment Services ・ Payment Collection Agency Services ・ Guaranteed Post-Payment Services ・ Remittance Services ・ New Payment Services New Business ・ Security Services ・ ERP/HR Services ・ Public and Education Sector Services ・ DX 2021 Establishment of Densan System Holdings; transition to holding company structure. Established Gifu Denshi Keisan Center Co., Ltd. Listed on TSE 2nd section Listed on TSE 1st section Launched BPO Center Operations 68.1B Yen 1997 Launched Payment Collection Agency Services 2013 Launch of Cloud Services Opening of Tono IDC Opened Tokyo Branch Office 2027 Net Sales 100B Yen Rooted in our Gifu-born spirit of challenge. With a proven track record of driving innovation, We carry that legacy forward to the next stage... Igniting new innovation! One Group. One Goal. One strong organization, committed to the challenge. 1973 First IT company in JP to launch direct debit services 1977 Changed company name to Densan Systems Co., Ltd. 1967 1986 1997 2008 2012 2018 2025 2027
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Shareholder Returns Our basic policy will be to conduct stable and continuous distribution of profits based on a comprehensive assessment of our financial position and business performance, while retaining sufficient reserves. Special dividend for listing on the First Section of the Tokyo Stock Exchange and the First Section of the Nagoya Stock Exchange Commemorative dividend for the transition to a holding company structure Commemorative dividend for stock exchange listings ● FY 2024: Ordinary dividend: ¥60 per share per annum (interim ¥20, year-end ¥40) Shareholder benefits: Specialties of Gifu Prefecture or a donation equivalent to ¥3,000 (for shareholders who have held one unit (100 shares) or more for at least one year) ● FY 2025 Plan:Annual ordinary dividend of ¥90 per share (interim ¥40, year-end ¥50) / per share ● FY 2026 Plan:Annual ordinary dividend of ¥100 per share（interim ¥50, year-end ¥50） / per share Planned Planned 23 Planned Planned Planned
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Certified as a 2025 KIH Outstanding Organization (Large Enterprise Category) Driving New Innovation through Sustainability At Densan System Group, Diversity is a core management strategy. We believe that respecting the unique individuality of our employees and maximizing their collective strengths is essential to meeting the evolving needs of our customers. Building on our work-style reforms, we aim to create an organization where every employee can thrive. We will continue to drive growth by investing in human capital and health and productivity management. Sustainability Policy 24 We are proud to announce our certification as a "2025 Health & Productivity Management Outstanding Organization (Large Enterprise Category)" in recognition of our commitment to employee wellness. ■ What is the KENKO Investment for Health (KIH) certification system? It is an award system operated by the Japan Health Council with the aim of creating an environment in which large corporations, small and medium-sized enterprises, and other corporations that practice especially excellent health management can receive social recognition from employees, job seekers, partner companies, financial institutions, and others by shedding a spotlight on these companies and their efforts. 【Health Management Initiatives】 https://www.ds-hd.co.jp/sustainability/social/health_management/ In order to realize sustainable corporate management, we will continue to build a safe and comfortable workplace environment where each and every employee can perform to the best of their abilities. We will also further promote health management through activities worthy of the title of KIH Outstanding Organization. 24
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing The Group company, Densan System Co., Ltd., has been awarded the two-star Eruboshi Certification (Level 2) with a two-star rating by the Minister of Health, Labour and Welfare. This certification recognizes companies for excellence in promoting the advancement of women. Moving forward, we will further enhance our workplace environment to ensure that women and all diverse talent can excel, while continuing to promote human capital development and health and productivity management. Aiming for "Eruboshi (Level 3)" Three-Star Certification (Key Indicators) ● Ratio of female employees: FY 2024 28.7% ⇒ FY 2025 31.1% (up 2.4 points) ● Ratio of female managers: FY 2024 7.1% ⇒ FY 2025 9.2% (up 2.1 points) *Targeting the industry average of 12.6% By promoting women to management and leadership levels, we aim to strengthen the trust and engagement of our female employees toward the company. We are committed to building an environment that supports long-term career stability and work-life balance for employees in all life stages—including those raising children, planning for a family, providing nursing care, or senior staff. By fostering a supportive workplace, we aim to attract top talent and boost employee motivation across the Group. Aiming for Kurumin Certification (new) (key indicators) ● Childcare leave acquisition rate (men): Target 30% or higher ／ FY 2025 61.5% ● Childcare leave acquisition rate (women): Target 75% or higher ／ FY 2025 100.0% ● Annual paid leave acquisition rate: Target 75% or higher ／ FY 2025 72.7% ● Average monthly overtime hours: Target under 30 hours ／ FY 2025 7.58 hours Promoting Extended Leave: In September 2025, we launched an initiative to encourage employees to take consecutive leave (5 or more business days). Driving Well-being: We will continue to improve our paid leave utilization rates to enhance the overall well-being and fulfillment of our workforce. Sustainability Policy Creating an organization where every individual can excel 25 25
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Initiatives to Achieve Management Conscious of Cost of Capital and Stock Price While further strengthening our profitability, we will steadily implement measures to optimize the cost of capital, including timely and appropriate information disclosure and strategic financial/capital policies. We are committed to securing an ROE of 12% and enhancing our equity spread. ● Current situation (FY 2025) ● Initiative policies: To achieve specific corporate value improvements; ＝ － Equity spread 6.5 % ROE 12.4 % Shareholder’s equity cost 5.9 % Corporate value Strengthen ability to generate profit Strengthen financial and capital strategies Reduce capital cost • Create and develop new business for continued business expansion • Strengthen our structure to be a highly profitable company • Fulfill shareholder returns with priority on continuing stable dividends • Strengthen investment in human capital • Reduce cross-shareholdings • Proactive disclosure of risk information • Strengthening of corporate governance • Stabilization of the business portfolio 26
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2025/01/06 DSK Expanded our convenience store payment agency business with a contract for national tax collection agency services We expanded our role as public infrastructure with a new contract for national tax collection agency services We aim to further expand the business by contributing to improved convenience for society as a whole, strengthening our stable revenue base, and building trust and our track record in the public sector. ● 2025/03/11 DSK Recognized as a 2025 KIH Outstanding Organization (Large Enterprise Category) Improving the wellbeing of employees is an important initiative that will lead to higher productivity and corporate value. We will continue to promote it further to enhance our corporate value. ● 2025/03/21 DSK Contracted for the system development of 'My Roppo,' a mobile app by GYOSEI Corporation. – Development of a legal code reader app utilizing generative AI – This is an example of the use of generative AI leveraging Amazon Bedrock’s RAG (Retrieval Augmented Generation) technology to enable natural language searches. ● 2025/04/17 DSHD,DSKAnnouncement of increases to employee base pay and starting pay for new graduates To drive sustainable growth and engagement, we have revised our compensation structure—increasing base pay and new graduate starting salaries to attract and retain top talent. ● 2025/04/28 DSK Opened Kyushu Branch in Fukuoka Prefecture, making a full-scale entry into the Kyushu/Okinawa DX market,promoting DX of local governments and companies in the region We aim to further accelerate customers’ promotion of DX by building a service provision system rooted in the region. ● 2025/04/28 DSK Acceptance of the SaiCoin local digital currency in our Payment Agency Services Enabling citizens to pay their municipal and prefectural taxes using SaiCoin by scanning barcode through the Saitama City App. DSHD：Densan System Holdings / DSK: Densan System 27
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2025/06/02 DSHD,DSKLaunch of EZASSIST FAX Order Automatic Reading to streamline fax order processing We will support the promotion of DX and improvements in operational efficiency in the manufacturing and wholesale industries by drastically reducing the time and effort required for analog tasks in fax order processing and streamlining operations through paperless and digitized workflows, reducing the burden and errors of manual entry. ● 2025/06/12 DSHD,DSKEntered a collaboration agreement with Gifu Pharmaceutical University to promote DX utilizing AI and cloud services This agreement aims to contribute to the development of the local community and the development of highly specialized human resources by enhancing the university’s education, research, and administrative systems through the use of Google Workspace and AI. We plan to create advanced DX cases in the pharmaceutical field by combining the expertise of Densan System and the cooperation of Gifu Pharmaceutical University. ● 2025/06/18 DSHD,DSKBegan offering two support packages for Google Cloud’s new service, Google Agentspace There are two types of packages, the Quick Start Support Package and the Utilization Promotion Support Package, which provide support tailored to the needs and implementation stage of each company, with the goal of promoting DX through AI adoption. Densan System will maximize the potential of AI agents to strongly support companies in improving productivity and solving business challenges. ● 2025/06/30 DSHD,DSKJoined the ERP Cloud 360 Consortium to promote cloud ERP for mid-sized companies We aim to strengthen our presence in the mid-sized company market by handling everything from sales to support for the cloud ERP solution ERP Cloud 360, which is built on Salesforce. ● 2025/08/01 DSK Started providing an integration service between Google Agentspace and the cloud-based data integration tool Reckoner This service enables data from domestic SaaS (such as kintone and kaonavi) and on-premises environments to be easily utilized in Google Agentspace. DSHD：Densan System Holdings / DSK: Densan System 28
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2025/08/18 DSK Contracted by Kawasaki City to build, operate, and maintain a temporary childcare system Provided the Minnano Michishirube Special Childcare Reservation System, which is developed, maintained, and operated by Densan System, to Kawasaki City to provide temporary childcare services. ● 2025/08/22 DSHD,DSKSumitomo Mitsui Banking Corporation, Densan System, and Ava Labs, Inc. signed a basic agreement on joint study to create new stablecoin payment and management services We signed a basic agreement with Sumitomo Mitsui Banking Corporation and Ava Labs regarding stablecoin. We will aim and consider together to create new services related to the future payment, distribution, and operation of stablecoin, and we will support efficiency improvements. ● 2025/08/22 DSHD Notice of change of consolidated subsidiary (share transfer) We transferred all shares of consolidated subsidiary Micro Research Ltd. (excluding Micro Research from the scope of consolidated subsidiary) ● 2025/08/28 DSK Awarded as Partner of The Year 2025 Japan by Asana In Asana Business, made several significant contributions to growing licenses for new and existing customers within Japan, including: Long-term retention support for large customers exceeding 4,000 licenses, cross-selling to other departments through usage promotion, and internal adoption of AI Studio. ● 2025/08/28 DSK Recognized as a AWS 200 APN Certification Distinction We were recognized as a AWS 200 APN Certification Distinction due to reaching 200 Amazon Web Services (AWS) certifications held. We will continue to provide our clients with more specialized and extensive knowledge of AWS to further contribute to business transformation and increase corporate value. DSHD：Densan System Holdings / DSK: Densan System 29
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2025/09/10 DSHD,DSKLaunched NIPPON WONDER FACTORY, a co-creation project for tourism and regional development. The mission of this project is to support people, goods, and money for regional development activities by awakening “wonder (surprise, excitement, and potential)” that lies dormant in local communities under the concept of being a supporting team for creating an attractive Japan. This is an alliance initiative in partnership with a wide range of service providers, rather than by Densan System alone. ● 2025/09/17 DSHD,DSKBasic agreement with JPYC inc. to jointly study social implementation of the JPYC Japanese yen stablecoin This agreement further deepened the capital and business alliance announced on May 7, 2024. The two companies will utilize Densan System’s convenience store payment network of over 65,000 stores nationwide and the JPYC Japanese yen stablecoin issued by JPYC inc. to fulfill use cases such as B2C/B2B payment and inter-company settlements, aiming for social implementation. ● 2025/09/19 DSK Signed Japan Smart Chain vision partnership agreement with AltX Research K.K. Through this partnership, we will jointly study the creation of use cases for the social implementation of B2C (for consumer) distribution and payment network infrastructure and next-generation payment services using blockchain technology. We will jointly study use cases and conduct a proof of concept (PoC) with the aim of commercializing a payment infrastructure for digital assets such as stablecoin, points, coupons, and NFTs, as well as next-generation payment services and Web3 wallet services. ● 2025/09/30 DSHD,DSKLaunched the Tradeshift solution, a procurement and billing DX platform for Enterprises. We launched license sales, introduction support, and operational support businesses as a Japanese market distributor of the Tradeshift solution provided by Tradeshift Japan Inc. Amidst the growing demand for digital invoicing and compliance response, we will leverage Densan System’s foundation in the payment and payment agency fields to promote the digital transformation of B2B transactions. DSHD：Densan System Holdings / DSK: Densan System 30
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2025/10/24 DSK Launch of AI Agent Implementation Support Services in Partnership with SparkPlusAI Partnering with SparkPlus Co., Ltd., we now offer one-stop support for AI Agent implementation—from process redesign to operational integration. This service accelerates business automation, driving client DX and productivity. ● 2025/10/29 DSHD,DSKCorporate Hometown Tax Donation to Kobe City ～Supporting "Astep Coworking" to Enhance Work Styles for Women～ In support of Kobe City’s women’s empowerment projects, we donated ICT equipment, including Chromebooks, to a local coworking space. By improving facility convenience and supporting diverse work styles, we aim to revitalize the local community and strengthen our partnership with the municipal government. ● 2025/11/05 DSHD,DSKLaunch of "BizCloudCare+": Making Cloud Server Operations Simpler and More Accessible Launched a new packaged cloud service covering construction, monitoring, and maintenance. Designed to offer professional-grade cloud management with the ease of a rental server, this service provides critical infrastructure support for SMEs pursuing cloud migration and digital transformation. ● 2025/11/18 DSHD Strategic Acquisition of Unyte, Inc. (Wholly Owned Subsidiary) By acquiring Unyte—a specialist in Web3 and DAO infrastructure—we will fuse our core strengths with cutting-edge technology. This move aims to spearhead Web3 value creation through next-generation governance models and new community-led economies. ● 2025/11/19 DSK Online Account Registration Added to DSK Direct Debit Service We have introduced a web-based registration feature to enable a fully paperless process. By significantly reducing manual effort for users and administrative burdens for clients, this update strengthens our competitive edge and drives transaction growth. ● 2025/11/21 DSK 11 Densan System Employees Named Google Cloud Partner Top Engineers 2026 This recognition demonstrates the depth of our human capital in the cloud sector. By showcasing our technical expertise, we aim to further build client trust and drive the acquisition of high-value-added projects.。 DSHD：Densan System Holdings / DSK: Densan System 31
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2025/11/26 DSK Two Employees Awarded at Google Cloud Partner Tech Influencer Challenge 2025 Eleven employees were named "Partner Top Engineers" alongside two winners in the "Deep Dive" category. These awards validate our deep pool of human capital in cloud technology, strengthening client trust and driving the acquisition of high-value-added projects. ● 2025/12/05 DSK Launched SMS Barcode Payment for Dr.JOY Healthcare System We introduced a new feature enabling patients to pay via barcodes sent through SMS. This service streamlines accounts receivable for medical institutions and improves patient convenience, expanding our revenue base in the Healthcare DX sector. ● 2025/12/26 DSHD,DSKSponsored "Gifu Kids Programming Award 2025" We supported next-generation IT talent by gifting a Chromebook to the grand prize winner. This initiative reinforces our commitment to our founding region of Gifu and contributes to long-term IT industry development and a sustainable digital society. ● 2025/12/26 DSK Launched AI Booking Service "Sugu YOYAKU Concierge" on Salesforce AgentExchange We released an AI service that automates the booking process from customer interaction to registration. By helping the service industry mitigate labor shortages and prevent lost opportunities, we aim to accelerate growth in our Salesforce-related business. ● 2025/12/29 DSHD,DSKParticipated in "Food Drive GIFU 2025" We donated food collected from employees to reduce waste and support those in need. This action aligns with our SDG commitments to poverty reduction and responsible consumption, deepening our ties with the local community as part of our corporate social responsibility. DSHD：Densan System Holdings / DSK: Densan System 32
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics ● 2026/01/09 DSK Partnership with EasyTechnology for Collection Agency Services We have partnered with Fintech startup EasyTechnology to integrate their AI-driven debt collection expertise with our payment services. By automating and streamlining the dunning and collection process for Buy Now, Pay Later (BNPL) services, we aim to create new business opportunities within the Financial DX domain. ● 2026/01/21 DSHD,UnyteLaunch of "vjra," a Backend as a Service for easy construction of Retrieval-Augmented Generation (RAG) using corporate chat histories and other data sources. Introducing 'vjra,' a BaaS platform for building RAG systems effortlessly using corporate chat logs and internal data. We empower corporate DX by making AI adoption easier and turning internal information into a valuable asset.。 ● 2026/01/22 DSHD,DSKSpecial Guest Lecture Conducted at Aichi Shinwa Gakuen Taisei High School Through partnerships with educational institutions, we are committed to providing learning opportunities for the next generation of students and contributing to local community development. DSHD：Densan System Holdings / DSK: Densan System 33
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Densan Systems Holdings Co., Ltd. Presentation Materials for the 4Q FY2025 Results Briefing Topics: Stablecoin Initiatives 34 2023/6 The revised Payment Services Act legally defined stablecoins as ‘Electronic Payment Instruments’ enabling their domestic issuance and circulation. 2025/8 JPYC was authorized as Japan’s first issuer of Yen-denominated stablecoin. 2025/10 Issuance of JPYC stablecoin commenced. DSK’s Strengths (existing payment network and customer base) Advantages of Stablecoin (low cost and high speed)✖ Digital transformation of payment infrastructure using stablecoin! Aiming to build a next-generation payment infrastructure (payment gateway) harnessing the unique characteristics of stablecoin Working with the best partners in the areas of finance, technology (global/domestic), and Web3 to rapidly advance business Japan’s first issuer of JPYC, a yen-denominated stablecoin A Japanese megabank (financial) promoting stablecoin business Provides state-of-the-art blockchain technology required for stablecoin-related development Provides blockchain infrastructure with a focus on domestic regulations Various use cases under consideration: In-store payments, e-commerce payments, B2B payments, financial product payments, and other use cases are currently being explored and discussed, including seeking potential partners. Extremely low payment/remittance processing fees → Lower fees than bank transfer fees, credit cards, QR code payments, etc., reducing costs Payment and remittance infrastructure that allows for same-day receipt (same value as cash [Japanese yen] and can be converted into cash) → Individuals: Means of payment allowing receipt of payment for work on the same day, in line with the new era of work styles (e.g., supplemental income, crowdworkers, etc.). → Stores (businesses): An optimal means of payment to improve cash flow, receiving value for goods and services in real time as if it were cash Supports building stablecoin payment and remittance infrastructure in collaboration with INTERTRADE Co., Ltd.