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Densan System Holdings Co. , Ltd. Financial Results • FY 2026 Q2 ( Tokyo Stock Exchange Prime Nagoya Stock Exchange Premier Security 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 FY 2021 and before is that of Densan System Co. , Ltd. 1
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Payment Agency Services Segment Table of Contents FY 2026 2nd Quarter Information Services Segment Forecast and Plans Business Result Highlights ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 3 Business Result Quarterly Trends ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 4 Business Results Financial Condition (B/S) ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 5 Business Summary ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 7 Quarterly Trends ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 8 Business Result Details（Google Business） ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 9 Business Result Details（Outsourcing） ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 10 Business Summary ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 11 Quarterly Trends ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 12 Business Result Details ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 13 FY 2026 Initial Financial Forecasts (Full Year) ‧‧‧‧‧‧‧‧‧‧‧‧‧ 15 FY 2026 Key Strategies and Q2 Progress Update ‧‧‧‧‧‧‧‧‧‧‧ 16 Shareholder Returns ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 17 Sustainability Policy ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 18 Action to Implement Management Conscious of Cost of Capital and Stock Price ‧‧ 19 Topics ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 20 Company Profile ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 24 Management Philosophy‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 25 Trends in Key Consolidated Financial Indicators ‧‧‧‧‧‧‧ 26 Segment Description（Information Services Segment） ‧‧‧ 27 Segment Description（Payment Agency Services Segment）‧‧‧ 28 Appendix 2 Cash Allocation Strategy ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ 6 Business Result Details（Offline Convenience Store Payment）‧‧‧‧‧ 14
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Results Highlights • Net Sales: Expanded steadily in the Information Services segment, led by Google, achieving 19 consecutive first halves of revenue growth. • Operating Profit: Grew year-on-year behind revenue gains, successfully absorbing expense increases from labor costs, procurement unit costs, and new investments. • Full-Year Targets: Both revenue and profit figures are progressing smoothly against initial targets; full-year forecasts remain unchanged. Net Sales Operating Profit Ordinary Profit Net Income （計画） （計画） （計画） （計画） 3 Unit: Millions of Yen FY 2025 2Q Cum FY 2026 2Q Cum YoY Full-Year Plan ProgressAmount Ratio Net Sales 32,269 34,879 2,610 8.1% 70,000 49.8% Operating Profit 1,641 2,007 365 22.3% 3,650 55.0% Profit Margin 5.1% 5.8% 0.7%pt Up 5.2% Ordinary Profit 1,844 2,194 349 19.0% 3,850 57.0% Ordinary Profit Margin 5.7% 6.3% 0.6%pt Up 5.5% Net Income 1,252 1,501 248 19.9% 2,620 57.3% FY2022 FY2023 FY2024 FY2025 FY2026 FY2022 FY2023 FY2024 FY2025 FY2026 FY2022 FY2023 FY2024 FY2025 FY2026 FY2022 FY2023 FY2024 FY2025 FY2026 (Plan) (Plan) (Plan) (Plan)
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Results Quarterly Trends • Net sales increased steadily quarter over quarter. • Q2 Performance: Reached a record high, following record-breaking results in Q1. • Profit grew substantially year-on-year, rebounding from unprofitable project impacts in the same period last year. • Since FY2023, high-margin SI project acceptances have concentrated in Q1, leading to a QoQ profit dip in Q2 as a reaction to the prior quarter's peak. Net Sales Operating Profit 4 Unit: Millions of Yen FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Results Financial Condition(B/S) Financial Conditions Net Cash Analysis • Total Assets: Up ¥9,794 million vs. prior fiscal year-end; a decrease in cash and deposits was offset by a sharp rise in money trusts. • Liabilities: Up ¥8,774 million vs. prior fiscal year-end; driven mainly by higher deposits received for agency collections, despite lower accounts payable. • Net Assets: Up ¥1,019 million vs. prior fiscal year-end; primarily attributed to an increase in retained earnings. 5 Unit: Millions of Yen • Temporary funds collected from customers under the agency collection service business are dual-booked as "Liabilities (Deposits received for agency collections)" and "Assets (Money in trust, etc.)". • Factoring in these business dynamics, effective net cash available for capital allocation and strategic investment was ¥17,524 million at period-end. FY 2025 FY 2026 2Q Amount Change Total Asset 69,112 78,906 9,794 Current Asset 60,999 70,251 9,251 Non-Current Asset 8,113 8,655 542 Total Liabilities 44,230 53,004 8,774 Current Liabilities 43,008 51,918 8,909 Non-Current Liabilities 1,222 1,086 ▲ 135 Total net assets 24,881 25,901 1,019 Equity ratio 35.6% 32.5% 3.1%pt Down Deposit Received in payment agency services 22,288 32,157 9,869 Equity ratio excluding deposits received in payment agency 52.6% 54.9% 2.3%pt Up FY 2025 FY 2026 2Q Amount Change A) Total Cash 39,985 50,279 10,293 Cash and deposits 22,666 20,705 ▲ 1,961 Money held in trust 17,319 29,574 12,254 B) Deposits received in payment agency services 22,288 32,157 9,869 C) Interest-bearing debt 629 597 ▲ 31 Net Cash （ A-B-C ） 17,067 17,524 456
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Cash Allocation Strategy Flow：Use of Free cash flow Stock：Strategic allocation of net cash（¥17.5 billion in FY 2026 Q2） 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. ※ F rom 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. 1. Saf ety 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. Gr owth Investment Fund Investment in growth strategies, M&A standby funds Capital allocated for agile M&A to expand into new business areas and acquire technical capabilities.(¥6.5 billion) Safety and Liquidity Reserve Payment collection Agency Buffer Growth Investment Fund 6
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Result: Information Services Segment Summary • System Integration & Software Development: Revenue expanded on strong performance in systems for auto auctions and other SI projects. • Google Solutions: Revenue was driven up by steady growth in new Google contracts, which boosted demand for implementation services and license sales. • BPO Services: Revenue remained flat year-on-year; despite a decline in transaction volume from a major client, this was offset by new customer acquisitions and the expansion of existing accounts. • Operating Income: Operating profit increased significantly year-on-year. Although labor costs and procurement unit costs rose, profit growth was fueled by higher revenue, operational efficiencies, and the absence of unprofitable projects that impacted the prior period. 売上高 営業利益 （計画） （計画） 7 Unit: Millions of Yen Note: As announced in the Financial Results Presentation for the Fiscal Year Ended December 2025, sub-segment classifications have been revised starting from the current fiscal year (FY ending December 2026). FY 2025 2Q Cum FY 2026 2Q Cum YoY Full-Year Plan Progress Amount Ratio Net Sales 19,560 22,160 2,599 13.3% 43,790 50.6% SI ‧SW Development‧ Product Sales 10,328 11,313 984 9.5% 20,071 56.4% Cloud license 6,480 8,071 1,590 24.5% 17,898 45.1% BPO 2,705 2,729 23 0.9% 5,723 47.7% Other revenue 45 45 0 0.9% 99 46.2% Operating Profit 243 834 591 243.3% 1,544 54.1% Operating Profit Margin 1.2% 3.8% 2.5%pt Up 3.5% Net Sales Operating Profit FY2022 FY2023 FY2024 FY2025 FY2026 FY2022 FY2023 FY2024 FY2025 FY2026 （Plan） （Plan） -278
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Result: Information Services Segment Quarterly Trends • Net sales continued to increase steadily quarter ov er quarter. • Driven by strong performance in Google-related servic es and various SI projects, Q2 net sales reached a record high. • Operating profit expanded steadily, supported b y top-line revenue growth. • Profitability dipped in 2024 and 2025 due t o the impact of unprofitable projects. • Q2 operating profit remained below Q2 2022 lev els due to an expansion in strategic investments. Net Sales Operating Profit 8 Unit: Millions of Yen FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results （Google Business Revenue Up 19.6 ％ YoY） Google Workspace Clients: 2,488 Business Result: Information Services Segment Details（Google Business） • The number of client companies using Google Workspace expanded steadily, adding 90 companies in Q2. • Compared to the same period of the previous fiscal year, the client base grew by 262 companies (+11.8%), with net sales increasing by ¥785 million (+19.6%). • Q2 revenue decreased compared to Q1 as large-scale GIGA School Project deliveries wound down in Q1. 2026.12期2025.12期2024.12期 – Google Workspace導入社数 Net Sales （Quarterly Trend) 9 Unit: Millions of Yen （Cumulative) – No. of Google Workspace Clients FY 2024 FY 2025 FY 2026 FY2022 FY2023 FY2024 FY2025 FY2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Results: Information Services Segment（Outsourcing） • The scope of reporting for Outsourcing under the Information Services segment remains identical to BPO in the previous fiscal year. • Transaction volumes decreased starting from Q1 due to a major client transitioning operations in-house. • Processing volume reached 17 million items (down 5.0% year-on-year). However, driven by shifts in the sales service mix and price revisions, Q2 net sales rose to ¥1,003 million, an increase of 3.0% year-on-year. • While data entry operations and shipping label printing services remain on a downward trend, performance held flat in Q2. 2026.12期2025.12期2024.12期 – 処理件数（千件） Net Sales （四半期推移） （累計） 10 Unit: Millions of Yen （Quarterly Trends） – Number of Items processed (in thousand items) FY 2024 FY 2025 FY 2026 （Cumulative） FY2022 FY2023 FY2024 FY2025 FY2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Results: Payment Agency Services Segment Summary • Offline Payment Services: Increased slightly YoY as strong public sector acquisitions compensated for lower volumes at select corporate clients. • Direct Debit & Online Payments: Both segments achieved YoY growth on new client activations. • Ancillary Services: Net sales fell following client contract terminations in over-the-counter collection services. • Other Revenue: Dropped 15.9% YoY on lower transaction volumes from existing post-payment (BNPL) accounts. • Operating Profit: Totaled ¥1,170 million (-16.0% YoY). Despite budgeted margin pressure from cost increases and growth investments, productivity gains helped keep profit progress ahead of revenue progress against full-year targets. （計画） （計画） 11 Unit: Millions of Yen Note: As announced in the Financial Results Presentation for the Fiscal Year Ended December 2025, sub-segment classifications have been revised starting from the current fiscal year (FY ending December 2026). FY 2025 2Q Cum FY 2026 2Q Cum YoY Full-Year Plan ProgressAmount Ratio Net Sales 12,708 12,719 10 0.1% 26,210 48.5% Offline Convenience store payments 11,379 11,444 65 0.6% 23,603 48.5% Bank Transfers/Direct Debits 339 348 8 2.5% 704 49.5% Online Payments 609 632 22 3.6% 1,287 49.1% Ancillary Collection Services 190 135 ▲ 55 ▲29.0% 232 58.3% Other Revenue 189 159 ▲ 30 ▲15.9% 384 41.4% Operating profit 1,393 1,170 ▲ 223 ▲16.0% 2,106 55.6% Operating profit margin 11.0% 9.2% 1.8%pt Down 8.0% 売上高 営業利益 Net Sales Operating Profit （Plan） （Plan） FY2022 FY2023 FY2024 FY2025 FY2026 FY2022 FY2023 FY2024 FY2025 FY2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Results: Payment Agency Services Segment Quarterly Trends • Net sales showed steady upward momentum overall, despite performance variance across accounts driven by major client rollouts, contract terminations, and pricing adjustments. • Q2 Revenue: Held flat year-on-year; seasonal strength in municipal collection volume was neutralized by lower transaction volumes among private enterprise clients. • Profit Volatility: Operating profit experiences significant quarterly fluctuations, driven by shifts in net sales as well as fluctuations in procurement unit costs. • Q2 Profit Impact: Operating income fell by ¥143 million. Price adjustments in select service lines provided a positive boost, but were outweighed by higher investment spend and top-line weakness in over-the-counter collection and post-payment (BNPL) segments. Net Sales Operating Profit 12 Unit: Millions of Yen FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Business Result: Payment Agency Services Segment Details • Scope: Convenience store paperless payments and credit card transactions. • Seasonality: Q2 consistently surges on tuition and learning material billing. • Q2 Trend: Revenue grew on higher unit prices, successfully offsetting volume declines from the non-recurrence of prior-year Expo demand. • Q2 Seasonality: Significant growth in volume and revenue due to local tax collection peak. • Q4 Peak: Increased transaction volume driven by seasonal gift demand. • Sector Mix: Modest overall growth as expansion in public sector (local government) contracts offsets the gradual decline in private sector volumes. • Stability: Driven heavily by tuition payments, ensuring stable performance with low volatility. • Growth: Maintains steady top-line growth through continuous new client onboarding. • Seasonality: Q1 spikes on annual membership fee processing, leading to sequential Q2 declines in both volume and revenue. Offline Convenience Store Payment Bank Transfers/Direct Debits Online Payments Net Sales YoY +0.8 %（ Cum. +0.6％ ） Transaction Volume YoY -1.5 % （ Cum. -0.8％ ） Net Sales YoY +1.4 % （ Cum +2.5％ ） Transaction Volume YoY +0.8 % （ Cum +1.3％ ） Net Sales YoY +3.0 % （ Cum +3.6％ ） Transaction Volume YoY -2.6 % （ Cum +1.6％ ） FY 2026FY 2025FY 2024 FY 2026FY 2025FY 2024 FY 2026FY 2025FY 2024 売上⾼ ‒ 処理件数（千件） 売上⾼ ‒ 処理件数（千件） 売上⾼ ‒ 処理件数（千件） 13 Unit: Millions of Yen ‒ No. of Transactions (in thousand items) ‒ No. of Transactions (in thousand items) ‒ No. of Transactions (in thousand items)Net Sales Net Sales Net Sales
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results ( Local Gov.Mix 2Q 41.4％→43.7％ Cum 34.7%→37.2%) Volume Yo Y 4.1% Cum.6.4 ％) • Q2 Volume: +4.1% YoY, maintaining steady quarter-on-quarter growth. • Public Sector Share & Outlook: As private sector volumes decline, municipal transactions rose to 37.2% of total convenience store collections (43.7% in Q2 due to peak tax processing). This trend is expected to continue. Payment Agency Services Segment Details（Offline Convenience Store Payment） Transaction Volume Trend for Local Government Convenience Store Payment Slips （千件） 14 ※Convenience store offline payments match the previous "Collection Agency Services" sub-segment; data on this page aggregates local government transactions only. 2024 2025 2026 （in thousands）
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results FY 2026 Initial Financial Forecast（Full Year） • Revenue Growth: Deceleration expected due to high baseline from prior-year GIGA School projects. • Operating Income: Strategic expansion of R&D investments in blockchain payment infrastructure. • Net Income: Forecasted to decrease YoY; corporate tax rates will normalize following one-time tax gains in FY 2025 (subsidiary share sale). Information Services • High market demand for Cloud/AI/Outsourcing; steady growth outlook maintained. • SI & Software Development: Revenue decline anticipated following the FY2025 GIGA School project peak. • Cloud & Licenses: Continued sales expansion in Google Workspace and ancillary solutions. • BPO: Slight revenue decline expected due to the termination of a major client contract. • Profit Margin Improvement:Strategic reduction in low-margin product sales and enhanced profitability through quality improvements in SI and software development. FY 2025 FY 2026 Plan Difference YoY Comparison Net Sales 68,131 70,000 1,869 2.7% Information Services Segment 43,061 43,790 728 1.7% Payment Agency Services Segment 25,069 26,210 1,140 4.5% Operating Profit 3,624 3,650 25 0.7% Operating Profit Margin 5.3% 5.2% 0.1%pt Down Information Services Segment 942 1,544 601 63.8% Operating Profit Margin 2.2% 3.5% 1.3%pt Up Payment Agency Services Segment 2,676 2,106 ▲ 570 ▲21.3% Operating Profit Margin 10.7% 8.0% 2.6%pt Down Ordinary Income 3,843 3,850 6 0.2% Ordinary Income Margin 5.6% 5.5% 0.1%pt Down Net Income 2,896 2,620 ▲ 277 ▲9.6% Adjustments to Segment Income 5 0 Information Services Segment Net Sales FY 2025 FY 2026 Plan Difference YoY Comparison Net Sales 43,061 43,790 728 1.7% SI・SW Dev・Product Sales 23,793 20,071 ▲ 3,722 ▲15.6% Cloud・License 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% 3.5% 1.3%pt Up Payment Agency Services • Revenue growth planned across all sub-segments through new client acquisition. • Ancillary Services: Projected YoY revenue decline following a major client’s contract termination. • Service Expansion: Focused promotion of "PAYSLE" (electronic slips) and "TREE PAYMENT" (multi-payment gateway). • Profitability: Operating income expected to decrease due to rising labor costs and upfront investments in new business ventures. Payment Agency Segment Net Sales FY 2025 FY 2026 Plan Difference YoY Comparison Net Sales 25,069 26,210 1,140 4.5% Offline Convenience Store Payment 22,450 23,603 1,152 5.1% Bank Transfer/Direct Debits 688 704 15 2.2% Online Payment 1,188 1,287 98 8.3% Ancillary Collection 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 15 Unit: Millions of Yen
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results FY 2026 Key Initiatives and Q2 Progress Update Key Strategic Themes Initiatives Q2 Strategic Milestones and Achievements DSK Transformation Established Cross-functional Sales HQ .Maximizing L TV as a "Co-creation Partner" to meet diverse needs. Shift from contract-based to service-based (Recurring Rev). Building a cutting-edge framework leveraging stablecoins. Deepening and Expanding AI‧DX Shifting from license sales to expert-led implementation and problem-solving value-added solution business Group Synergies for Targeted DX, accelerating DX initiatives tailored to specific industry sectors. Enhancing Profitability by strengthening services and optimizing app-based payment fees. Market creation by targeting public sectors and untapped fields to create new market demand. Aim to attract, develop and retain high-caliber talent by revising compensation structure, expanding professional education, and boosting employee engagement. Flattening hierarchy to accelerate decision-making and foster active communication. Profitability and Governance: Enhancing project monitoring to eliminate losses and boost margins. Driving growth through strategic M&A, R&D and new business creation. Evolution and Expansion of Payment Business Human Capital Management Other Strategic Initiatives • Established Sales HQ (Jan): Promoting account-based sales to deepen customer relationships. • Focused on securing maintenance contracts; exploring synergies between maintenance and BPO services to expand recurring revenue. • Preparing to build the next-generation payment infrastructure. • Secured large scale public sector DX project • Launched AI-Driven PoC Initiatives • Pricing Revision: Selling unit prices revised effective April. • Expanding payment domains to explore new use cases and application areas. • Extended retirement age and implemented Base-up • Deployed a “Talent Collaboration Tool” to drive cross-divisional synergy. • Certified as a "Health & Productivity Management Outstanding Organization" (Large Enterprise Category) for two consecutive years. • Implemented organizational flattening in January to streamline reporting lines and enhance operational agility. 16
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17 Shareholder Returns （Interim 50 JPY, Year-end 50 JPY） Planned Increase Basic Policy Our basic policy is to maintain stable and continuous returns to shareholders while securing sufficient internal reserves to support future business expansion and strengthening our management foundation. Annual Dividend 100 JPY per share FY2026 Dividend Forecast （Unit：JPY） Dividend Annual Dividend 90 JPY per share （Interim 40 JPY, Year-end 50 JPY） Shareholder Benefit Program; Gifu Prefecture specialty products (worth 3,000 JPY) or a charitable donation. Applicable to shareholders holding 1 unit 100 shares) or more for at least one consecutive year) FY2025 Dividend Dividend History FY 2008 Commemorative Dividend (2.5 JPY) for Initial Public Listing FY 2012 Special Dividend (2.5 JPY) for Listing on the First Sections of the Tokyo Stock Exchange and Nagoya Stock Exchange FY 2021 Commemorative Dividend (5 JPY) for Transition to a Holding Company Structure Data for FY 2020 and earlier refers to Densan System Co., Ltd. Data for FY 2021 onwards succeeds the information of Densan System Co., Ltd., which became a split-off wholly owned subsidiary through a sole share transfer. Historical dividend figures have been retroactively adjusted to account for past stock splits.
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Sustainability Policy‧Human Capital Initiatives 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. Certified for 2 consecutive yrs To create a safe and comfortable environment where every individual can perform to their full potential. Strengthening Follow-ups to Reach 100% Participation: 2025 Actual Annual Health Checkups: 100％ Stress Checks: 93.0％ Creating a Workplace Where Everyone Can Thrive and Achieve Work-Life Balance Aiming for “Eruboshi “ 3-Star Certification Currently 2-star certified. We are improving key indicators to achieve the highest 3-star ranking by promoting women to management and executive levels. KPIs Aiming for “Kurumin” Certification (new) To enhance employee well-being, we began implementing various environmental improvements in 2025, such as promoting the taking of consecutive holidays. KPIs % of women among New grad and mid-hires Ratio of Female Managers FY2024 Actual 44.4% FY2025 Actual 54.7% FY2024 Actual 7 .1% FY2025 Actual 9.2% At Group company Densan System Co., Ltd. Target 50% Target 12.6% (Industry ave.) Parental Leave Rate (Male) FY2024 Actual 71.4% Target 30% FY2025 Actual 61.5% Parental Leave Rate (Female) FY2024 Actual 100.0% FY2025 Actual 100.0% Target 100% Paid Leave Usage Rate FY2024 Actual 73.2% FY2025 Actual 72.7% target 70% Average monthly overtime hours FY2024 Actual 8.88 hrs FY2025 Actual 7 .58 hrs Target Less than 10 hrs Average monthly overtime hours FY2024 Actual 8.88 hrs FY2025 Actual 7 .58 hrs Target Less than 10 hrs FY 2026 Initiatives ‧Support for Senior Talent: Revised regulations to extend the employment cap to age 70. ‧Healthcare Support: Introduced subsidies for optional medical screenings during annual health checkups. Overall % of female employees FY2024 Actual 28.7% FY2025 Actual 31.3% Target 30.0% Health & Productivity Management Outstanding Organization 2026 （Large Enterprise Category） 18 48.8% 8.7% 32.8% 7 .17 hrs As of June end 2026 As of June end 2026 As of June end 2026 As of June end 2026 Updated from 45% As of June end 2026 80.0% 100.0% 74.7% 7 .17 hrs As of June end 2026 As of June end 2026 As of June end 2026
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Action to Implement Management Conscious of Cost of Capital and Stock Price We will work to further enhance our profitability and steadily implement measures to improve the cost of capital, including timely and appropriate information disclosure as well as financial and capital policies. Our goal is to secure an ROE of 12% while consistently increasing our equity spread. ‧ Current Situation（FY2025) = - Corporate Value ROE 12.4 % Shareholder’s Equity Cost 5.9 % Equity Spread 6.5 % To achieve specific corporate value improvements; ‧Initiative policies 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 19
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Topics 2026 News Releases DSHD：Densan System Holdings Co., Ltd. / DSK：Densan System Co.,Ltd. 2026/01/21 DSHD、Unyte Launched "vjra," a Backend-as-a-Service for Seamless RAG Integration New service enabling easy construction of Retrieval-Augmented Generation (RAG) using corporate chat logs. Supporting enterprise AI adoption to capture DX demand and contribute to high-value-added IT solution revenue. 2026/02/18 DSHD、Unyte Participating in the Osaka "Super City" National Strategic Special Zone Selected for the Cabinet Office’s FY2025 survey project on advanced service development. We aim to build a track record in national DX and smart city projects to facilitate future nationwide rollout. 2026/03/12 DSK Launched "DSK Account Transfer Data Transmission Service" for Aichi Municipalities Expanding our presence in Aichi Prefecture. Accelerating the deployment of BPO services in public fund collection—a stable source of recurring (stock-type) revenue. 2026/03/12 DSHD、DSK Certified as a "Health & Productivity Management Outstanding Organization 2026" Achieved certification for two consecutive years. Showcasing our commitment to sustainability by protecting employee health and boosting productivity from an ESG investment perspective. 2026/04/21 DSK Promoting DX through a Partnership Agreement with Gifu Pharmaceutical University. Conducted the SPRING Scholarship Workshop "Utilizing Generative AI in Research" for research students. Providing comprehensive support for DX in research, education, and university administration by leveraging Google Workspace and AI. This serves as a proven track record of providing sophisticated solutions in the educational and medical sectors. 2026/04/22 DSK Winner of the Google Cloud Partner of the Year for "Artificial Intelligence: Workplace AI Transformation - Japan” Our comprehensive support for large-scale Generative AI transformations using Google Workspace and Gemini was highly evaluated. 20
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Topics 2026 News Releases DSHD：Densan System Holdings Co., Ltd. / DSK：Densan System Co.,Ltd. 2026/05/20 DSHD、DSK Densan System and Financie Form Capital and Business Alliance in Web3 × Regional Revitalization to Jointly Roll Out Regional Revitalization Platform "NIPPON WONDER FACTORY" Densan System Co., Ltd. has entered into a capital and business alliance with Financie, Inc. to initiate the joint rollout of a Web3-powered regional revitalization platform. 2026/06/19 DSK Densan System Concludes Partnership Agreement with Wakkanai City, Hokkaido to Evaluate Government Operational Efficiency of Cloud Tools Jointly Verification of Operational Efficiency, Security, and Generative AI Utilization in a Cloud-Native Environment 2026/06/29 DSK Hachijo Town Rebuilds Network Infrastructure with Google Workspace for Education and MacBook to Achieve School Zero-Trust Architecture Supporting the establishment of a robust zero-trust security framework and modern network environment for Hachijo Town's educational institutions. 2026/06/30 DSK Densan System Launches Dedicated Portal for "Gemini Enterprise," Google Cloud's Enterprise AI Agent Platform Strengthening Information Delivery to Support Corporate Adoption of AI Agents Launched a dedicated portal showcasing implementation support services and core capabilities for "Gemini Enterprise," Google Cloud's enterprise-grade generative AI platform. 21
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results 2026/07/28 DSK 20 26/08/ 05 DSK Densan System Delivers "Hybrid Deployment" Support for Google Workspace to Drive Municipal DX in Takasaki City Supporting ~4,000 municipal staff, Densan System deployed Google Workspace via a proprietary hybrid model alongside legacy software—cutting costs while driving efficiency with Gemini AI. Densan System Honored with "Appreciation for Excellent Partnership 2026" Awards from Chrome Enterprise and Google for Education™ in Four Divisions: Chr omeOS™, Chrome Enterprise Premium, Google for Education Reseller, and Google for Education PD Became the first reseller to achieve a four-category sweep at Partner Summit Japan 2026, recognized for strong sales performance, advanced technical capabilities, and expansion into new domains. Topics 2026 News Releases DSHD：Densan System Holdings Co., Ltd. / DSK：Densan System Co.,Ltd. 22
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23 Thank you very much 【Contact for IR Inquiries】 Investor Relations, DENSAN System Holdings Co., Ltd. (Please visit our corporate website for contact details)
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Appendix: Company Overview 24 Established： July 2021 (Established as a holding company through a sole-share transfer of Densan System Co., Ltd.) Representative：Ryoji Kobayashi, President and CEO Capital： 2,510.39 million yen Net Sales：FY2025/12 68,131 million （Information Service Segment 43,061 million / Payment Agency Services Segment 25,069million yen ） Offices： Gifu HQ（Gifu-city, Gifu）/ Tokyo HQ（Hatchobori,Chuo-ku, Tokyo） No. of Employees： Consolidated：1,065 (as of 2026/06) History：1967 Established as Gifu Electronic Computing Center Co., Ltd., providing IT services for local businesses and organizations.1973 Launched the first bank transfer service by a private company in Japan. 1977 Renamed to Densan System Co., Ltd. for nationwide business expansion.1997 Launched the first bank transfer service by a private company. 2006 Commenced Google business as a secondary partner. 2008 Promoted to primary partner following the launch of Google Apps 2008 Listed on the 2nd Section of the Tokyo Stock Exchange and the Nagoya Stock Exchange. 2012 Upgraded to the First Section of both exchanges. Group Companies（ ※Including equity-method affiliates ） Densan System Co., Ltd. (Gifu-city, Tokyo) Core operating company of DNS Holdings Group. Established 1967 as Gifu Electronic Computer Center Co., Ltd.; Renamed 'DNS Co., Ltd.' in 1977. Softteks Co.,Ltd.（Miyazaki-City） Develops/sells package software for dental clinics, medical systems, and provides information processing. Established 1993; joined DNS Group 2010 (strengthened dental/data entry). DSK PAYMENT Inc. （Tokyo） Provides system development, maintenance, and technical support; offers debt-guaranteed post-payment services. Established 1992; joined DNS Group 2010; renamed DSK Payment Co., Ltd. in May 2024. Garden Network, Ltd. （Tokyo） Offers information processing, system development, sales, and credit processing for gas stations and petroleum businesses. Established 2004; joined DNS Group 2014 (expanded/strengthened services in the energy industry). GOGA, Inc. （Tokyo） Specializes in map solutions and services using Google Maps Platform. Established 2006; joined DNS Group 2016 (expanded Google Cloud services). PSI Inc. （Tokyo） Imports, sells, and provides technical support for cutting-edge information security products. Established 1994; joined DNS Group 2020 (expanded security business). Micro Research Ltd. （Tokyo） Designs, develops, and sells proprietary IoT gateway products (custom/OEM/ODM). Established 2008; joined DNS HD Group 2021 (strengthened security). Scheduled to exit the Group in August 2025. Chuo Management Consulting Ltd.（Gifu-City） Supports implementation of business systems (especially accounting) and legacy systems; sells original attendance management software. Established 1991; joined DNS HD Group 2022. Unyte Inc. （Tokyo） Development of Web3 technologies, construction of DAOs, and the provision of integrated DAO platforms. Founded in 2022. Joined the Densan System Holdings Group in 2025 (to strengthen next-generation blockchain-based technologies). System Engineering Corporation（Takayama-city, Gifu） ※ Full-scale software development company promoting regional informatization. Established 1990 in Takayama City as a joint-investment cooperating company of Densan Systems Co., Ltd. Juroku Densan Digital Service Co.,Ltd.（Gifu-City） ※ Joint venture with Juroku Financial Group (2022). Promotes DX for local companies/governments by combining DNS solutions with Juroku's sales network. Revenue by Segment: FY 2025 Information Service Payment Agency Service
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Appendix: Corporate Philosophy 25 No Company can exist without creating customers. Management Philosophy Mission（Actions to Realize the Purpose） ・Creating New Value ・Challenge、Innovation、Speed ・Co-Creation Purpose（Reason for Being） Contributing to society by creating a prosperous future through information technology and payment solutions, while fulfilling our customers' aspirations and dreams. Vision（Beyond Realization of the Purpose) ・Challenge 1000 : Achieving 100 Billion JPY in net sales 7 Billion JP in operating income by 2027 ・Transforming into a value-creating company for the realization of a sustainable society. ・DSK Transformation（DX） Shareholder Satisfaction（enhancing corporate value） & Employee Happiness（improving well-being） As a result
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Appendix: Trends in Major Consolidated Financial Indicators FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Plan Net Sales 50,356 53,479 59,591 61,256 68,131 70,000 Operating Profit 3,134 3,414 3,964 2,311 3,624 3,650 Ordinary Profit 3,210 3,587 4,018 2,534 3,843 3,850 Net Income 1,978 2,348 2,004 1,850 2,896 2,620 Total Assets 51,389 72,170 57,051 61,747 69,112 Net Assets 17,605 19,665 20,774 22,294 24,881 Operating Profit Margin 6.2% 6.4% 6.7% 3.8% 5.3% 5.2% ROE 12.0% 12.7% 10.0% 8.70% 12.4% 10.3% 26 Unit: Millions of Yen
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Appendix: Segment Description（Information Services Segment) We provide optimal, one-stop IT solutions by analyzing our clients' business operations and challenges, followed by system planning, cloud service selection, construction, and ongoing maintenance. Furthermore, our BPO (Information and Business Process Outsourcing) services leverage a wide range of operational expertise and the latest technologies to assist companies in improving efficiency and reducing costs. segmentSub Former Sub segment Description SI‧Software Development‧Produc t Sales Professional Services / System Integration (Service-based) Product Sales Provision of hardware with embedded software products, delivery of various cloud services including Google-related solutions, and sales of software products. Package implementation and customization tailored to client needs, contract development for design and production based on client specifications, and related operational support, contracting, and technical staffing. Technical support for security products. Cloud service implementation and support, system development for the auto auction industry, and application development. Procurement and sales of software products, system hardware, and supplies. Various network services. Cloud License Cloud & License Sales Sales of licenses only (Google Workspace-related, AWS, Salesforce, security services) and provision of IDC (Tono IDC) BPO Information Processing Provision of BPO services (Invoice creation agency, DSK Multi-Invoice, call center, data entry, etc.) Data processing and order fulfillment for gift mail-orders from post offices and department stores Information processing for the energy industry (gas stations and gas retailers) Other Revenue Other Revenue Server leasing/rentals Revenue by Segment: FY 2025 Information Services 27
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Densan Systems Holdings Co,Ltd. FY 2026 Q2 Financial Results Appendix: Segment Description（Payment Agency Service Segment） As a pioneer in payment and collection services with over 50 years of history since becoming the first private-sector company to launch account transfer and convenience store payment services, we continue to expand our offerings. Our highly experienced consultants provide the "optimal payment solutions" for your business. Revenue by Segment: FY 2025 Payment Agency Service Sub segment Former Sub segment Description Convenience Store Offline Payment Collection Services within our payment and collection agency operations Invoicing services for payments at convenience stores and other main locations Japan Post Bank transfer (MT) agency services Cashless payment services (PayPay, LINE Pay, Bank Pay, etc.) Mobile payment service "Mobalai☆DSK" Bank Transfer/Direct Debits Collection Services within our payment agency operations Bank Transfer/Direct Debit services (including TREE PAYMENT) Online Payment Online Payment Services Credit card payment services Paperless convenience store payment services "PayLabo": A payment platform providing one-stop integrated payment solutions "TREE PAYMENT -On-Demand-": A service platform allowing payments at the customer's preferred timing and method Payment Collection-Related Services Remittance Service Payment Collection-Related Services Domestic Remittance (Type II Funds Transfer Service) Accurately handles complex tasks such as refunds and remittances to domestic customers; convenient for refund processes following event cancellations, etc. Biz@gent: Implementation of services that allow "payment slips" to be paid not only at convenience stores and financial institutions but also at supermarkets, drugstores, and various retail outlets Other Revenue Other Revenue DSK Deferred Payment Service and TREE PAYMENT Account Transfer -100% Guaranteed Payment Type- 28