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Q3 FY09/2025 Consolidated Financial Results HENNGE K.K. (4475: TSE Growth) August 4, 2025 Note: This is a translation of part of the original Japanese version and is provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 1. Q3 FY2025 Consolidated Financial Results 2. FY2025 Full-year Forecast Progress 3. Growth Strategy 4. Appendix Corporate Overview Total Addressable Market Others 5. Past Materials Table of Contents 2
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Q3 FY2025 Consolidated Financial Results (Financial Results) 3
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Consolidated Financial Results Highlights 4 Q3 FY2024 Q3 FY2025 YoY YoY (%) FY2025 Forecast (Revised on 2025/05) Progress (%) (unit: JPY million) 6,061 8,016 +1,955 +32.3% 10,881 73.7% 5,593 7,509 +1,916 +34.3% 10,222 73.5% 468 506 +39 +8.3% 659 76.9% 968 1,107 +139 +14.4% 5,093 6,909 +1,816 +35.7% (84.0%) (86.2%) (+2.2pts) 4,176 5,329 +1,153 +27.6% 917 1,580 +663 +72.3% 1,750~1,950 81.0~ 90.3% (15.1%) (19.7%) (+4.6pts) (16.1 ~ 17.9%) 918 1,610 +692 +75.4% 1,750~1,950 82.6~ 92.0% 724 1,058 +334 +46.2% 1,251~1,391 76.0~ 84.5% (11.9%) (13.2%) (+1.3pts) (11.5 ~ 12.8%) Net sales (HENNGE One) (Professional service and others) Total cost of sales Gross profit (Gross profit margin) Total selling, general and administrative expenses Operating income (Operating income margin) Ordinary income Profit attributable to owners of parent (Net income margin)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results FY2022 FY2023 FY2024 FY2025 5 Net Sales (unit: JPY million) ■ Professional service and others ■ HENNGE One
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 6 Net sales for HENNGE One business, our growth driver, grew significantly YoY. ■ Professional service and others ■ HENNGE One (unit: JPY million) Net Sales (YoY) HENNGE One YoY +34.3% (+ JPY 1.92B) YoY +8.3% (+ JPY 0.04B) Professional service and others FY2022 FY2024 FY2023 FY2025 YoY +32.3% (+ JPY 1.96B) Total
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 7 FY2022 FY2023 FY2024 FY2025 Gross Profit (unit: JPY million) ● Gross profit margin ■ Gross profit
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Gross profit margin remains high. Increase in margin was achieved mainly from higher ARPU. 8 Gross Profit (YoY) Gross profit YoY +35.7% (+ JPY 1.82B) ● Gross profit margin ■ Gross profit FY2022 FY2024 FY2023 FY2025 (unit: JPY million)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 9 Other SG&A increased mainly due to proactive recruitment and in-person initiatives. Advertising expenses increased mainly due to continued proactive activities, including hosting our own events and exhibiting at various other events. Personnel expenses increased mainly due to the growth in number of employees. Operating Expenses (QoQ) Other SG&A Advertising expenses Business consignment and staffing expenses Personnel expenses Cost of sales QoQ SG&A R&D expenses (unit: JPY million) + JPY 21M + JPY 46M + JPY 1M + JPY 10M + JPY 155M + JPY 13M Cost of Sales
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Operating Expenses (YoY) Other SG&A increased mainly due to the acceleration of recruitment activities. In addition, expenses for the office floor expansion in June, internal system usage fees, and traveling expenses driven by more active in-person initiatives also increased. Advertising expenses increased due to continued proactive activities, including engaging in numerous events across Japan. Personnel expenses increased mainly due to the growth in the number of employees. Cost of sales increased mainly due to the growth of R&D personnel and infrastructure costs for HENNGE One. 10 (9 mos accum.) (9 mos accum.) Other SG&A Business consignment and staffing expenses Personnel expenses R&D expenses Cost of sales (unit: JPY million) cost to sales ratio (YoY) 21.8%(+1.5pts) 7.7%(+0.1pts) 7.2% (-1.5pts) 25.3% (-2.2pts) 4.5% (-0.4pts) 13.8% (-2.2pts) SG&A to sales ratio 68.9% SG&A to sales ratio 66.5% Advertising expenses SG&ACost of Sales
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 11 Net Sales and Operating Expenses ● Net sales ■ Other SG&A ■ Advertising expenses ■ Business consignment & staffing expenses ■ Personnel expenses ■ R&D expenses ■ Cost of Sales (unit: JPY million) FY2022 FY2023 FY2024 FY2025
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 12 Number of Employees FY2023 FY2024 Q3 FY2025FY2022 A net increase of 58 employees compared to the end of the previous fiscal year. ■ Others ■ Professional service ■ Business Dev. ■ HENNGE One Customer Success ■ HENNGE One Sales ■ HENNGE One Dev./ R&D # of employees taking maternity/childcare/family-care leave * parentheses indicate # of employees in overseas subsidiaries included in the total (unit: employees, excluding part-time employees)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Q3 FY2025 Consolidated Financial Results (Business Activities) 13
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Business Highlights ● Advertisements and events ○ Hosted “HENNGE Unveiled 2025” (April 2025) ○ Exhibited at “Japan IT Week Spring” and “Japan IT Week Nagoya” (April and May 2025) ○ Engaged in numerous events (April to June 2025) ● Others ○ “HENNGE Email DLP” certified as AWS Qualified Software (April 2025) ○ Invested as a lead investor in IssueHunt, Inc., which provides an Application Security Posture Management (ASPM) service (April 2025) ○ Participated in the “2030 Zero Disposable Umbrellas Project for City (Shibuya)” (April 2025) ○ Offered “Customers Mail Cloud, ” a cloud-based email delivery platform, on AWS Marketplace (June 2025) 14
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 15 Engaged in 45+ events Advertising Activity Highlights Conducted advertising activities such as “Japan IT Week Spring” and “HENNGE Unveiled 2025. ” (Inside the venue of “Japan IT Week Spring”)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Q3 FY2025 Consolidated Financial Results (KPI Results) 16
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results HENNGE One KPI Highlights (Progress in 9 months, compared to the end of FY2024) # of contracted companies 3,290 companies increased by 339 companies # of contracted users 2.704M users increased by 209K users ARR JPY 10.73B increased by JPY 1.98B ARPU JPY 3,969 increased by JPY 461 Average # of users 822 users decreased by 24 users Average monthly churn rate over the past 12 months 0.36% improved by 0.18pts 17
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results ARR YoY +31.5% # of contracted companies YoY +15.3% 18 HENNGE One KPIs (YoY) # of contracted users YoY +9.1% + JPY 2.57B (unit: companies) (unit: K users) (unit: JPY million) +437 companies +226K users
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 19 HENNGE One Gross Revenue Churn Rate ● Average monthly churn rate over the past 12 months for HENNGE One The churn rate remains low, securing a solid base of recurring revenue. ● Average monthly churn rate over the past 12 months for HENNGE One 0.54% 0.24% 0.27% 0.28% 0.23% 0.21% 0.28% 0.27% 0.27% 0.30% 0.34% 0.44% 0.36% 0.43% 0.45%
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 20 HENNGE One Contracted Companies & Users # of contracted companies has increased due to the acquisitions of small to mid sized contracts. QoQ +54K users QoQ +108 companies FY2022 FY2023 FY2024 FY2025 ● HENNGE One Contracted Users (K users) ■ HENNGE One Contracted Companies (companies)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results FY2022 FY2023 FY2024 FY2025 21 HENNGE One ARR & ARPU ARPU increased mainly due to the rise in the proportion of HENNGE One Pro within ARR. QoQ + JPY 52 per user QoQ + JPY 0.35B ● HENNGE One ARPU (JPY per user) ■ HENNGE One ARR (JPY million)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results FY2025 Full-year Forecast Progress 22
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results By strengthening our corporate branding, aim to accelerate mid to long term ARR growth and improve productivity. HENNGE One Business Aim to exceed JPY 10B for ARR by increasing the number of contracted companies and ARPU. Marketing and Branding Activities Carry out advertising activities aggressively to expand HENNGE One in wider areas, such as holding events overseas in addition to major cities in Japan. Also take actions that contribute to raising our awareness and the brand. Personnel Plan Actively recruit in each function and aim to increase 40 headcounts or more in net to prepare for the future business expansion. Also take actions that contribute to our talent acquisition enhancement including recruitment branding in order to avoid losing opportunities over the mid to long term. Business Investments Challenge in investments including M&As in order to maximize ARR of the group, which enables to provide further value to the customers. Our Policy of FY2025 23
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Progress of Our Policy of FY2025 24 HENNGE One ARR and operating expenses are in line with our revised forecast. Enhancing talent acquisition remains a key challenge. HENNGE One Business ●HENNGE One ARR progresses in line with our plan. Marketing and Branding Activities ●Expenses related to marketing and branding are planned to be in line with our revised forecast. Personnel Plan ●Net increase of headcount in FY2025 to significantly exceed the initial plan, 40, and expected to result in approx. 75. ●Personnel-related expenses are expected to increase due to higher-than-expected net headcount growth. ●Improving our ability to acquire top-tier talent remains a key challenge, given its critical role in driving further growth. Business Investments ●Continue to explore business investment opportunities, including M&A, in order to maximize ARR of the group.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 6,776 8,365 10,881 +2,516 +30.1% 6,250 7,737 10,222 +2,485 +32.1% 526 628 659 +31 +4.9% 6,068 7,350 8,931 ~ 9,131 +1,581 ~ 1,781 +21.5 ~ 24.2％ 646 708 1,000 +293 +41.3% 5,422 6,642 7,930 ~ 8,130 +1,289 ~ 1,489 +19.4 ~ 22.4％ 708 1,015 1,750 ~ 1,950 +735 ~ 935 +72.4 ~ 92.1％ (10.4%) (12.1%) (16.1 ~ 17.9%) (+4.0 ~ 5.8pts) 713 1,000 1,750 ~ 1,950 +750 ~ 950 +75.0 ~ 95.0％ 509 827 1,251 ~ 1,391 +424 ~ 564 +51.2 ~ 68.2％ (7.5%) (9.9%) (11.5 ~ 12.8%) (+1.6 ~ 2.9pts) FY2025 Forecast Highlights 25 Net sales (HENNGE One) (Professional service and others) Operating expenses (Advertising expenses) (Operating expenses excl. advertising expenses) Operating income (Operating income margin) Ordinary income Profit attributable to owners of parent (Net income margin) (unit: JPY million) FY2023 Results FY2024 Results FY2025 Revised Forecast (Revised on 2025/05) YoY YoY (%)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 26 FY2025 Forecast - Net Sales by Business The progress of HENNGE One’s sales is 73.5% against the revised forecast. (unit: JPY million) HENNGE One ■ Results ■ Forecast Professional service and others (unit: JPY million)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 27 FY2025 Forecast - Operating Expenses The progress of advertising expenses is 61.7% against the revised forecast. The progress of operating expenses excluding advertising expenses is 71.6~73.4% against the revised forecast. Advertising expenses Operating expenses excl. advertising expenses (unit: JPY million) (unit: JPY million) ■ Results ■ Forecast (The bar graph of FY2025 displays data using “JPY 8,130M”)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Growth Strategy 28
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Corporate Philosophy We want to deliver the power of technology to as many people as we can. Liberation of Technology テクノロジーの解放 29
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Maximize L TV Our growth strategy is to maximize L TV. Currently, “Y” and “r” are already in high numbers, therefore our focus is to maximize ARR. = [# of contracted companies] = [Average # of contracted users per contracted company] = [Average Revenue Per User] = [Average contract duration in years] = [Gross profit rate] Y r N n ARPU 30 L TV = ARR × Y × r ARR = N × n × ARPU
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Growth Strategy KPIs (HENNGE One) 31 ARR N n ARPU ARR YoY (％) YoY # of contracted companies YoY (％) YoY Average # of contracted users per contracted companies YoY (％) YoY Average Revenue Per User YoY (％) YoY (JPY million) (companies) (users) (JPY) In the recent years, number of small to mid sized contracts were acquired by strengthening relationships with resellers. As a result of providing demanded new services and features, ARPU has improved and led to a notable ARR growth. FY2017 1,898 ＝ 928 × 1,107 × 1,848 +47.4% +611 +44.5% +286 +8.7% +89 -6.2% -122 FY2018 2,552 ＝ 1,176 × 1,166 × 1,861 +34.4% +653 +26.7% +248 +5.3% +59 +0.7% +13 FY2019 3,240 ＝ 1,428 × 1,171 × 1,938 +27.0% +688 +21.4% +252 +0.4% +5 +4.2% +77 FY2020 3,909 ＝ 1,667 × 1,169 × 2,007 +20.7% +670 +16.7% +239 -0.2% -2 +3.5% +68 FY2021 4,740 ＝ 1,952 × 1,095 × 2,217 +21.2% +830 +17.1% +285 -6.3% -73 +10.5% +210 FY2022 5,602 ＝ 2,213 × 1,050 × 2,410 +18.2% +862 +13.4% +261 -4.1% -45 +8.7% +193 FY2023 6,929 ＝ 2,610 × 912 × 2,910 +23.7% +1,328 +17.9% +397 -13.2% -138 +20.8% +501 FY2024 8,753 ＝ 2,951 × 845 × 3,508 +26.3% +1,824 +13.1% +341 -7.3% -67 +20.5% +598 Q3 FY2025 10,731 ＝ 3,290 × 822 × 3,969
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Growth Strategy Beyond FY2025 We achieved JPY 10B in ARR for HENNGE One and would like to build a solid foundation that will allow us to continue to grow beyond JPY 20B in ARR as a group in FY2029. 32 ARR JPY 10B ARR JPY 20B OPM 20% OPM 15% FY2025 FY2029 With a focus on the promotion of current businesses, take on the challenges of overseas expansion, M&As, and other measures in order to create an inflection point for future ARR growth.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Appendix (Corporate Overview) 34
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Company name : HENNGE K.K. Directors : Kazuhiro Ogura Representative Director, President and CEO/CTO Kazuaki Miyamoto Representative Director, Executive Senior Vice President Yoshiki Nagatome Director, Executive Senior Vice President Haruo Amano Director, Executive Senior Vice President Mio Takaoka Outside Director Michiko Kato Outside Director Fumiaki Goto Director (Full-time Audit & Supervisory Committee Member) Akenobu Hayakawa Outside Director (Audit & Supervisory Committee Member) Kunihiro Onai Outside Director (Audit & Supervisory Committee Member) Founded on : November 5, 1996 35 Corporate Profile
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Locations Japan Taiwan Tokyo Head office Fukuoka branch office 2018/08 Osaka branch office 2015/06 Nagoya branch office 2016/08 36 USA HENNGE Taiwan 2016/10 HENNGE Inc. 2025/04
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 369 Employee Breakdown by Function 37 8 (unit: employees, excluding part-time employees, as of 2025-06-30)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Corporate Philosophy We want to deliver the power of technology to as many people as we can. Liberation of Technology テクノロジーの解放 38
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results History 39 Our business domain is ever-changing, but our will remains steadfast. 1996 1997 2000 2011 2012 2021 Linux server management software HDE Controller Establishment eCRM software HDE Customers Care HENNGE One (f.k.a. HDE mail service) Linux Email SaaS (DLP) SaaS (Identity) SaaS (Cybersecurity) HENNGE One Access Control HENNGE One Cloud Protection
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 40 Net Sales by Business 93.7% of net sales come from HENNGE One business. ● HENNGE One ● Professional service and others (as of Q3 FY2025) JPY 8.02B 6.3%
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 41 HENNGE One’s service availability rate: Over 99.9% HENNGE One Provide services that remove obstacles for companies trying to improve productivity by adopting cloud in one-stop. Enhance security and usability of cloud to all the employees by having company-wide implementation. Enable access management to support safe work styles for employees Prevent information leakage via email and cloud storage Improve the level of corporate security in all directions of technology, people, and processes Identity DLP Cybersecurity
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results ID FederationAccess Control HENNGE One - Identity 42 Provide cross-sectional secure access and SSO for various cloud services used by companies. SSO Integration: Currently integrates with 409 cloud services Microsoft 365 Google Workspace HR Tech SFA and more.. User management Access policy management Access log Customizable policy Various cloud servicesAdministrator SSO SSO + MFA SSO + MFA ID/PASSoffice home Device cert. Secure Browser OTPcafe etc. ID/PASS
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results HENNGE One - DLP Prevent leaks of important data, such as confidential corporate information, from misdirected email and wrong file sharing misconfiguration. 43 - URL auto-conversion - BOX Integration Recipient - Filtering - Preventing misdirected emails - Email Archiving - Search in Japanese - Large file transfer - Shared Authority Management - Shared Information List Secure DL Email DLP Email Archive Secure Transfer File DLP Microsoft 365 Google Workspace DLP
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results HENNGE One - Cybersecurity Improve the level of security from technology, people, and process point of view, by addressing measures such as for ransomware and targeted email attacks. HENNGE TadrillHENNGE Cloud Protection 44 Administrators Targeted attacks Send sample phishing emails User Report Training result Regular training Sandbox Reputation check Behavior detection External user Internal user URLs Files Emails URLs Files Emails API integration
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Solid Customer Base (HENNGE One) HENNGE One is used by 3,290 companies in various industries, and has approximately 2.704 million users. Average number of contracted users per contracted company is approximately 822. (as of 2025-06-30) Breakdown by contracted Users Size (ARR Base, FY2024) Approx. 18.8% of listed companies on TSE are using HENNGE One. and more 45
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Appendix (Total Addressable Market) 46
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Number of Companies by Employee Size in Japan Enormous potential within the market exists as cloud adoption will accelerate going forward. Calculated by HENNGE Group based on the total number of companies with 30 or more employees in Japan as the number of our potential customers if cloud computing become more widespread in Japan in the future. (References: ʻEconomic Census -Activity Survey Results’ by Ministry of Economy, Trade and Industry of Japan in 2021) Customers’ demands Comps 653 companies 18,667 companies 44,035 companies 143,670 companies ID management for on-premises and hybrid cloud DX, Cloud migration Shift to SaaS based work style SSO Password management Comps 5,000 - 300 - 4,999 100 - 299 30 - 99 # of employees HENNGE ■ # of companies by each employee scale ■ # of our contracted customers 47
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Strengthening Expansion into Overseas Markets Our main service is a cloud service, which has the potential for cross-border expansion. While continuing to target the Asian market, we will also challenge the business expansion in other regions. 48
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Appendix (Others) 49
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Our Long-term Ambition Aim to establish a business model which enables us to exceed JPY 100B for ARR and a potential operating profit margin (OPM) of 50% within FY2035 to FY2037. 50 ARR JPY 100B Potential OPM 50% ARR JPY 10B ARR JPY 20B OPM 20%OPM 15% In addition to promoting current businesses, proactively cultivate new markets and expand value creation through M&As and other measures. FY2035-37FY2029FY2025
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 51 Path to Becoming World Class IT Company Strong HENNGE Brand Make business partners anticipate for the future possibilities from HENNGE’s innovativeness Make potential customers recognize HENNGE’s superiority, backed by trust and track records Convince customers with HENNGE’s foresight and value Sympathize hiring candidates with HENNGE’s philosophy We will aggressively focus on promoting the existing business, cultivating new markets, and expanding our value through M&As and other measures. To accelerate these efforts, strengthening HENNGE brand is one of the key areas. Strength in Alliance Increase in “N” Accelerate Recruitment Improvement in ARPU
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results New Business Developments Search for the market demands and accelerate the release of new features and services that meet the demands. Continue to support our customers in utilizing SaaS and keep continuing “Liberation of Technology. ” 52 2020 2021 2022 2023 2024 2025Before 2019 Liberation of Technology Automation SaaS Utilization Cloud Security Cybersecurity Zero Trust Messaging Security Platform HENNGE Email Archive HENNGE Secure Transfer HENNGE Access Control HENNGE Device Certificate HENNGE Email DLP HENNGE Secure Browser HENNGE Cloud Protection HENNGE Lock HENNGE Secure Download HENNGE Access Control API HENNGE Tadrill HENNGE File DLPHENNGE Connect HENNGE Lock Plus HENNGE Secure Download for BOX
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Service Overview (HENNGE One) 53 Service HENNGE Access Control API Overview HENNGE Access Control HENNGE Device Certificate HENNGE Secure Browser HENNGE Lock HENNGE Lock Plus HENNGE Connect API for ID management Access control/SSO, etc. Secure browser Device certificate App for one-time password Smartphone app for device cetrificate Secure gate to On-Premise system HENNGE Tadrill HENNGE Email Archive HENNGE Secure Transfer HENNGE Email DLP HENNGE Secure Download HENNGE Secure Download for Box HENNGE File DLP HENNGE Cloud Protection Countermeasure against targeted attacks (protection for email and data) Email audit/Archive Countermeasures against misdirected emails (filter, select sending method) Large file transmission and reception Uploading email attachments to cloud storage with auto URL notification Uploading email attachments to Box with auto URL notification Countermeasure against information leakage from file sharing Targeted attack email training, establishing a reporting workflow Service Overview
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Business Investments Mainly invested in B2B startups that own proprietary elements and technologies, which have synergy with our business. We will increase the value provided to our customers through business alliances, M&As, and other measures. 54 2018 2019 2020 2021 2022 2023 2025 HENNGE File DLP Launched sales following the alliance Initial investment Launched sales following the acquisition 2024
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Eat unripe fruits, and make mistakes early Value Continuously eat unripe fruits and remain as early adopters in order to make “Liberation of Technology” happen. Through a number of trial and error, we will identify new technology that is useful for our customers, and widely deliver the technology. 55
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Track and trust Act with speed, wisely talking acceptable risks. Eat unripe fruits Take on challenges and learn from mistakes early. Lead yourself with passion Take the initiative with passion. Love technology Love and use technology. Be a learnaholic Be endlessly curious. Get addicted to learning. Help passionate HENNGE people Support people who are passionate about igniting changes. Respect differences Differences are natural. Stay diverse. Keep it open Share information and opinions openly. 02 04 01 03 05 06 07 08 Win together You can’t win alone. The mountains is high. So, what do we do? 09 56 HENNGE WAY HENNGE WAY is our code of conduct in order to keep changing with challenges and failures.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Diversity and Inclusion Focusing our efforts on the Global Internship Program (GIP) not only to provide career development opportunities for the most talented candidates from all over the world, but also to be the precedent organization of diversity and inclusion that utilize the power of digital transformation to overcome issues. (unit: employees) Total number of applicants including interns (except for Japan) : approx. 200 countries and regions approx. 50K engineers Employees (excluding part-time employees) : approx. 25 countries and regions (as of 2024-09-30) 57 ■ # of employees(excl. part-time employees) ● non-Japanese ratio
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Diversity in Organization Diversity is the key driver to keep challenging and changing. We recognize the differences and respect the differences, which then we can create a basis for an ever-changing organization that value challenges. 58 Encourage diversity Keep evolving Respect differences Value challenges Standardize Stop evolving No to the differences Stay in comfort zone Controlling organization that fears diversity Trustworthy organization that embraces diversity HENNGEOld HENNGE
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Past Materials 59
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 60 Customers Mail Cloud Offers email delivery platform that facilitates secure and seamless connection between businesses’ digital services and customers. SMTP ServerInternet Banking API Integration DKIM/DMARC Auth S/MIME TLS Encryption Gmail Guideline Login notification Auth Code TransactionBooking Site Public Sector Customers Digital Services Google Microsoft Yahoo
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 61 Marketing campaign Development of new features Potential targeting list Nurturing Customer engagement (raise N) Promoting service usage (raise ARPU) Gain acknowledgement Enhance HENNGE brand Contactable potential customers Unreached potential customers meeting meeting event event Existing customer list # of features already provided Marketing Activities for HENNGE One It requires some time from marketing campaigns to the contribution in expansion of ARR as HENNGE One’s lead time is relatively long. However, the results of the investment in advertising expenses can be seen cumulatively in a long term.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results License Lineups for HENNGE One Announced in 2019/05 (June 2019 - September 2021) 62 * New contracts taken into place after October 2021 will apply new license lineup which was announced in August 2021.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Service Lineups for HENNGE One Announced in 2021/08 (October 2021 - March 2024) Service lineups were renewed from October 2021. Approaching varieties of customers with high value-added suite plans, as well as setting up single-function plans for light users. HENNGE One Basic A set plan that offers the best value when implementing all the features of HENNGE One at once (with limited use of Certificates, Lock Plus, and Cloud Protection) @JPY600/mon HENNGE IDP Lite SSO/IP address control/OTP/AD Connect etc. Set plan Description @JPY150/mon HENNGE One Pro @JPY1,000/mon Price Single-function plan Description Price HENNGE Cloud Protection Behavior detection/Sandbox etc. @JPY200/mon HENNGE IDP Lite function/Device certificates/Support Plus/Lock Plus etc. @JPY300/mon HENNGE IDP Pro IDP/Secure browser/Additional device certificates etc. @JPY500/mon HENNGE DLP Delayed sending/Filtering etc. @JPY300/mon HENNGE ARC Archive etc. @JPY300/mon 63 * New contracts taken into place after April 2024 will apply new license lineup which was announced in August 2023.
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results 64 The several license lineups for HENNGE One were revised from April 2024. (Updated June 2025) Renewal of License Lineups for HENNGE One Announced in 2023/08 (April 2024 -)
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HENNGE K.K. (4475:TSE Growth) Q3 FY09/2025 Consolidated Financial Results Glossary ARR (Annual Recurring Revenue) refers to revenue, normalized on an annual basis, that a company expects to receive from its customers for providing them with products or services of subscription-based model. ARPU (Average Revenue Per User) refers to the average annual contract amount per contracted user. CAGR (Compound Annual Growth Rate) refers to a geometric progression ratio which provides a constant rate of return over a period of time. DLP (Data Loss Prevention / Data Leak Protection) prevents confidential information loss/data leakage when sending emails and sharing via cloud storage. L TV (Life Time Value) is the total worth to a business of a customer over the whole period of their relationships. SSO (Single Sign On) is a method that enables users to log into multiple systems with just one user authentication. Gross Revenue Churn Rate is calculated based on the decrease in contract value due to service cancellations, etc. 65
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Disclaimer This document has been prepared by HENNGE K.K. (the “Company”) solely for information purpose. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in Japan, the United States or any other jurisdictions. It is prohibited to offer or distribute securities issued by the Company without due registration, or exemption of registration, required under applicable laws in Japan, the United States, or any other jurisdictions. The information contained herein is based on current economic, regulatory, market trends and other conditions. The Company makes no representation or guarantee with respect to the credibility, accuracy or completeness of the information herein. The information contained herein may change without prior notice. You may not publish or use this document and the contents thereof for any other purpose without a prior written consent of the Company. Furthermore, the information on future business results is forward-looking statements. Forward-looking statements include but not limited to expressions such as “believe” , “expect” , “plan” , “strategic” , “expect” , “anticipate” , “predict” and “possibility” , as well as other similar expressions to explain future business activities, achievements, events and future conditions. Forward-looking statements are predictions about the future that reflect management’s judgment based on currently available information. As such, these forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Therefore, you may not rely entirely on forward-looking statements. The Company does not assume any obligation to change or correct any forward-looking statements in light of new information, future events or other findings. This document and its contents are confidential and are being provided to you solely for your information and may not be retransmitted. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. In giving this presentation, the Company does not undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. Information on companies other than the Company and information provided from third parties are based on public information or sources. The Company has not independently verified the accuracy and appropriateness of such data and indicators used herein, nor assume any responsibility for the accuracy and appropriateness of such data and indicators presented in this document.