Interim report
Page 1
DISCLAIMER : This document has been translated from a part of the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 12 , 2026 Tokyo Stock Exchange / Nagoya Stock Exchange 4072 Company name : Listing : Densan System Holdings Co. , Ltd. Securities code : URL : Representative : Inquiries : Telephone : https://www.ds-hd.co.jp/ Ryoji Kobayashi , President , Representative Director Kentaro Yashima , Corporate Officer & Unit Leader + 81-58-279-3456 Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : August 13 , 2026 September 14 , 2026 Yes Yes ( for institutional investors and analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Net sales Operating profit Ordinary profit ( Percentages indicate year - on - year changes . ) Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 34,879 8.1 2,007 22.3 2,194 19.0 1,501 19.9 June 30 , 2025 32.269 6.7 1,641 6.0 1,844 15.2 1,252 15.3 Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Basic earnings per share ¥ 1,486 million ¥ 1,250 million [ 18.9 % ] [ 3.0 % ] Diluted earnings per share Six months ended June 30 , 2026 June 30 , 2025 Yen Yen 140.09 117.35 ( 2 ) Consolidated financial position As of June 30 , 2026 December 31 , 2025 Reference : Equity Total assets Millions of yen 78,906 69,112 As of June 30 , 2026 : As of December 31 , 2025 : ¥ 25,681 million ¥ 24,637 million 2 . Cash dividends Net assets Equity - to - asset ratio Millions of yen % 25,901 32.5 35.6 24,881 Annual dividends per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 40.00 50.00 90.00 Fiscal year ended December 31 , 2025 Fiscal year ending December 31 , 2026 Fiscal year ending December 31 , 2026 ( Forecast ) Note : Revisions to the forecast of cash dividends most recently announced : None 50.00 50.00 3. Forecast of consolidated financial results for the fiscal year ending December 31 , 2026 ( from January 1 , 2026 to December 31 , 2026 ) Fiscal year ending December 31 , 2026 Net sales % Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen 70,000 2.7 3,650 0.7 3,850 0.2 100.00 ( Percentages indicate year - on - year changes . ) Profit attributable to Basic earnings per share owners of parent Millions of yen % 2,620 ( 9.6 ) Yen 244.11 Note : Revisions to the earnings forecasts most recently announced : None
Page 2
* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specif ic to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, change s in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policie s due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 10,800,677 shares As of December 31, 2025 10,798,341 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 69,211 shares As of December 31, 2025 90,541 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 10,718,491 shares Six months ended June 30, 2025 10,675,346 shares * Semi-annual financial results reports are exempt from revi ew conducted by certified public accountants or an audit firm. * Proper use of earnings foreca sts, and other special matters The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual financial results, etc. may differ substantially due to various factors. For details on the conditions on which earnings forecasts are based and precautions for using earnings forecasts, please refer to Appendix P.3 "(3) Explanation of Forward-Looking Information on Consolidated Earnings Forecasts and Other Forward-Looking Information."
Page 3
Semi-annual consolidated balance sheet (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 22,666 20,705 Money held in trust 17,319 29,574 Notes and accounts receivable - trade, and contract assets 11,237 10,415 Merchandise and finished goods 579 1,059 Work in process 345 488 Prepaid expenses 7,806 7,154 Other 1,075 889 Allowance for doubtful accounts (31) (35) Total current assets 60,999 70,251 Non-current assets Property, plant and equipment Buildings and structures, net 1,136 1,079 Land 791 791 Other, net 641 621 Total property, plant and equipment 2,568 2,491 Intangible assets Goodwill 594 513 Customer-related assets 464 440 Software 618 700 Software in progress 297 603 Other 0 0 Total intangible assets 1,974 2,257 Investments and other assets Investment securities 2,811 3,220 Deferred tax assets 285 228 Guarantee deposits 443 431 Other 116 119 Allowance for doubtful accounts (87) (94) Total investments and other assets 3,569 3,905 Total non-current assets 8,113 8,655 Total assets 69,112 78,906
Page 4
(Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 6,610 5,504 Short-term borrowings - 100 Current portion of long-term borrowings 131 122 Income taxes payable 260 780 Contract liabilities 10,728 9,967 Deposits received of storage agency 22,288 32,157 Provision for bonuses 92 61 Provision for bonuses for directors (and other officers) - 13 Provision for loss on orders received 62 45 Provision for shareholder benefit program 44 1 Other 2,789 3,163 Total current liabilities 43,008 51,918 Non-current liabilities Long-term borrowings 498 374 Deferred tax liabilities 164 156 Provision for retirement benefits for directors (and other officers) 152 161 Retirement benefit liability 101 108 Provision for loss on guarantees 18 19 Asset retirement obligations 26 26 Other 260 240 Total non-current liabilities 1,222 1,086 Total liabilities 44,230 53,004 Net assets Shareholders' equity Share capital 2,503 2,510 Capital surplus 2,628 2,628 Retained earnings 19,356 20,318 Treasury shares (284) (216) Total shareholders' equity 24,204 25,240 Accumulated other comprehensive income Valuation difference on available-for-sale securities 433 441 Total accumulated other comprehensive income 433 441 Non-controlling interests 244 219 Total net assets 24,881 25,901 Total liabilities and net assets 69,112 78,906
Page 5
Semi-annual consolidated statement of income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 32,269 34,879 Cost of sales 26,922 29,080 Gross profit 5,346 5,799 Selling, general and administrative expenses 3,705 3,792 Operating profit 1,641 2,007 Non-operating income Interest income 32 64 Share of profit of entities accounted for using equity method - 14 Dividend income 16 19 Commission income 15 62 Gain on sale of investment securities 15 21 Gain on investments in investment partnerships 189 - Foreign exchange gains - 14 Debt prescripton profit 5 4 Other 10 2 Total non-operating income 285 205 Non-operating expenses Interest expenses 11 9 Share of loss of entities accounted for using equity method 33 - Loss on investments in investment partnerships - 3 Loss on sale of non-current assets 2 4 Foreign exchange losses 20 - Loss on valuation of derivatives 13 - Other 0 0 Total non-operating expenses 82 18 Ordinary profit 1,844 2,194 Profit before income taxes 1,844 2,194 Income taxes - current 305 709 Income taxes - deferred 283 6 Total income taxes 589 715 Profit 1,255 1,478 Profit (loss) attributable to non-controlling interests 2 (23) Profit attributable to owners of parent 1,252 1,501
Page 6
Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 1,255 1,478 Other comprehensive income Valuation difference on available-for-sale securities (4) 8 Total other comprehensive income (4) 8 Comprehensive income 1,250 1,486 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,248 1,509 Comprehensive income attributable to non-controlling interests 2 (23)
Page 7
Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 1,844 2,194 Depreciation 350 355 Amortization of goodwill 56 81 Increase (decrease) in allowance for doubtful accounts (4) 10 Increase (decrease) in provision for bonuses (27) (31) Increase (decrease) in provision for bonuses for directors (and other officers) (8) 13 Increase (decrease) in provision for loss on orders received (872) (17) Increase (decrease) in provision for shareholder benefit program (46) (42) Increase (decrease) in provision for loss on guarantees 24 0 Increase (decrease) in provision for retirement benefits for directors (and other officers) (33) 8 Increase (decrease) in retirement benefit liability (4) 7 Interest and dividend income (49) (84) Interest expenses 11 9 Loss (gain) on valuation of derivatives 13 - Share of loss (profit) of entities accounted for using equity method 33 (14) Foreign exchange losses (gains) (0) (2) Loss (gain) on investments in investment partnerships (189) 3 Loss (gain) on sale of investment securities (15) (21) Loss (gain) on sale of non-current assets 2 4 Decrease (increase) in accounts receivable - trade, and contract assets 920 812 Decrease (increase) in inventories (252) (622) Decrease (increase) in prepaid expenses 536 652 Increase (decrease) in trade payables (283) (1,106) Increase (decrease) in accounts payable - other (72) (147) Increase (decrease) in contract liabilities (799) (760) Decrease (increase) in other current assets (161) 210 Increase (decrease) in other current liabilities 444 532 Other, net 10 52 Subtotal 1,428 2,098 Interest and dividends received 32 62 Interest paid (12) (9) Income taxes paid (401) (220) Net cash provided by (used in) operating activities 1,047 1,930
Page 8
(Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from investing activities Payments into time deposits (113) (213) Proceeds from withdrawal of time deposits 113 113 Purchase of property, plant and equipment (179) (150) Proceeds from sale of property, plant and equipment 3 4 Purchase of intangible assets (167) (527) Purchase of investment securities (153) (374) Proceeds from sale of investment securities 15 40 Proceeds from distributions from investment partnerships 160 8 Payments of leasehold and guarantee deposits (0) (7) Proceeds from refund of leasehold and guarantee deposits 0 0 Other, net - 4 Net cash provided by (used in) investing activities (321) (1,104) Cash flows from financing activities Net increase (decrease) in short-term borrowings 4,710 100 Redemption of bonds (3) - Repayments of long-term borrowings (183) (131) Purchase of treasury shares (0) (0) Proceeds from sale of treasury shares 65 67 Dividends paid (431) (539) Dividends paid to non-controlling interests (0) (0) Net cash provided by (used in) financing activities 4,156 (505) Effect of exchange rate change on cash and cash equivalents 0 2 Net increase (decrease) in cash and cash equivalents 4,882 324 Cash and cash equivalents at beginning of period 15,324 17,581 Cash and cash equivalents at end of period 20,207 17,905
Page 9
(Notes on segment information, etc.) Segment Information I. Previous interim consolidated accounting period (January 1, 2025 to June 30, 2025) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Adjustment amount (Note) 1 Interim Consolidated Statements of Income (Note)2 information technology service collection agency services Total Sales Revenues from external customers 19,560 12,708 32,269 - 32,269 Transactions with other segments 12 0 12 (12) - Total 19,573 12,708 32,282 (12) 32,269 Segment Profit 243 1,393 1,637 4 1,641 Note: 1. The adjustment amount for segment profit is the difference in the allocation of administrative expenses incurred by the reporting segment. 2. Segment profit is adjusted to operating income in the interim consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment Not applicable. II. Interim Consolidated Accounting Period (January 1, 2026 to June 30, 2026) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Adjustment amount (Note) 1 Interim Consolidated Statements of Income (Note)2 information technology service collection agency services Total Sales Revenues from external customers 22,160 12,719 34,879 - 34,879 Transactions with other segments 26 0 26 (26) - Total 22,187 12,719 34,906 (26) 34,879 Segment Profit 834 1,170 2,005 1 2,007 Note: 1. The adjustment amount for segment profit is the difference in the allocation of administrative expenses incurred by the reporting segment. 2. Segment profit is adjusted to operating income in the interim consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment Not applicable.