Interim report
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Note : 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 . Summary of Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] Company name : Business Engineering Corporation Stock exchange listing : Tokyo Stock Exchange , Prime Market Code number : 4828 URL : https://www.b-en-g.co.jp/ Representative : Masakazu Haneda , President & CEO Accounting Standards FASF MEMBERSHIP August 10 , 2026 Contact : Shigeaki Betsunou , Senior Managing Director and Division General Manager , Corporate Administration & Planning Div . Phone : + 81-3-3510-1600 Scheduled date of commencing dividend payments : – Availability of supplementary briefing materials on financial results : Available Schedule of financial results briefing session : Scheduled ( for institutional investors and securities analysts ) ( Amounts of less than one million yen are rounded down . ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % indicates changes from the previous corresponding period . ) Profit attributable to owners of parent Net sales Operating profit Ordinary profit Three months ended June 30 , 2026 June 30 , 2025 Million yen 6,781 6,039 % Million yen % Million yen 12.3 1,910 10.5 1,921 % 9.7 Million yen % 1,274 ( 7.1 ) 19.8 1,728 48.0 1,750 48.0 1,371 70.8 ( Note ) Comprehensive income : Three months ended June 30 , 2026 : ¥ 1,408 million [ 19.1 % ] Three months ended June 30 , 2025 : ¥ 1,182 million [ 40.0 % ] Diluted earnings Basic earnings per share per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 21.36 22.91 ( Note ) The Company conducted a five - for - one stock split of its common shares effective January 1 , 2026. " Basic earnings per share " is calculated assuming that the stock split was executed at the beginning of the previous fiscal year . Consolidated Financial Position Total assets Net assets Equity ratio Million yen 23,193 Million yen % 16,878 16,071 72.0 74.7 As of June 30 , 2026 As of March 31 , 2026 21,526 ( Reference ) Equity : As of June 30 , 2026 : \ 16,709 million As of March 31 , 2026 : ¥ 16,071 million
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2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 78.00 – 26.00 – Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 21.00 21.00 42.00 (Notes) 1. Revision to the most recently announced dividends forecast: None 2. The Company conducted a five -for-one stock split of its common shares effective January 1, 2026. The year-end dividend per share for the fiscal year ended March 31, 2026 reflects the impact of the stock split, while the total annual dividend is indicated with a dash (“-”). Without factoring in the stock split, the year- end dividend would be ¥130, and the annual dividend would be ¥208. 3. Consolidated Financial Results Forecast for the Fiscal Y ear Ending March 31, 2027 (April 1, 2026 to March 31, 2027) (% represents changes from the previous fiscal year for full year, and on a year-on-year basis for quarterly results.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen First half 13,200 7.5 3,450 2.4 3,450 1.7 2,300 (7.6) 38.53 Full year 26,800 9.6 6,900 7.6 6,900 7.2 4,600 (5.9) 77.05 (Note) Revision to the most recently announced financial results forecast: None
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* Notes: (1) Significant changes in the scope of consolidation during the three months ended June 30, 2026: Yes New subsidiaries: 5 companies (Toyo Business Engineering (Thailand) Co., Ltd., Toyo Business Engineering Holding (Thailand) Co., Ltd., Toyo Business Engineering Singapore Pte. Ltd., Toyo Business Engineering (Shanghai) Co., Ltd., and PT. Toyo Business Engineering Indonesia) Excluded subsidiaries: – (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): June 30, 2026: 60,000,000 shares March 31, 2026: 60,000,000 shares 2) Total number of treasury shares at the end of the period: June 30, 2026: 292,265 shares March 31, 2026: 353,340 shares 3) Average number of shares during the period: Three months ended June 30, 2026: 59,678,217 shares Three months ended June 30, 2025: 59,871,660 shares (Notes) 1. The Company conducted a five -for-one stock split of its common shares effective January 1, 2026. Accordingly, “Average number of shares during the period” is calculated assuming that the stock split was executed at the beginning of the previous fiscal year. 2. “Total number of treasury shares at the end of the period” and “Average number of shares during the period” are calculated by including the Company’s shares held by stock grant trust for directors and RS Trust for employees in the treasury shares that are deductible. * Review of the Japanese- language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Explanation of the proper use of financial results forecast and other notes The earnings forecasts and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that are deemed reasonable. They are not a pledge by the Company to achieve the forecasted results. Actual results, etc. may differ significantly from these forecasts due to a wide range of factors. For more details on the above forecasts, please refer to “1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information” on page 3.
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Table of Contents 1. Qualitative Information on Quarterly Financial Results for the Period under Review ............................ 2 (1) Explanation of Operating Results ......................................................................................................... 2 (2) Explanation of Financial Position ........................................................................................................ 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information ... 3 2. Consolidated Quarterly Financial Statements ............................................................................................ 4 (1) Consolidated Quarterly Balance Sheets ............................................................................................... 4 (2) Consolidated Quarterly Statements of Income and Comprehensive Income ....................................... 6 1
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1. Qualitative Information on Quarterly Financial Results for the Period under Review Five overseas subsidiaries that had been treated as non -consolidated subsidiaries in the previous fiscal year became consolidated subsidiaries from the first quarter under review due to their increased significance. (1) Explanation of Operating Results During the three months ended June 30, 2026, the Japanese economy gradually recovered as corporate earnings remained at a high level and business sentiment also stayed at a favorable level, although the country saw some signs of weakness due to the impact of the situation in the Middle East. In the information service industry, customers’ willingness to invest in digital transformations (DX) is robust, and investments in information technology in the manufacturing industry remained strong. In such a business environment, under the management plan “Management Vision 2026 Revised Version” for the six years through the fiscal year ending March 31, 2027, as well as the growth strategy “BE 2030,” the vision and targets for FY2030, the Group has worked to resolve management issues such as the promotion of DX and global expansion in the manufacturing industry, in order to support its main customers facing changes in the business environment of the manufacturing industry with products and services that leverage the strengths of the Group. At the same time, the Group has been working to contribute to sustainability. The financial results during the three months ended June 30, 2026 are as follows. Orders received were ¥7,214 million (up 17.0% year on year) and net sales were ¥ 6,781 million (up 12.3% year on year), reflecting growth supported by robust investments in information technology , with both setting consecutive record highs, mainly owing to increased license sales and the expanded scope of consolidation. In addition, owing to robust license sales, sales of mcframe licenses were ¥2,040 million (up 43.5% year on year), setting a consecutive record high. In terms of profits, owing to increased license sales, operating profit was ¥1,910 million (up 10.5% year on year), and ordinary profit was ¥ 1,921 million (up 9.7% year on year) , achieving quarterly record-highs in each profit indicator for the fifth consecutive year. Profit attributable to owners of parent was ¥1,274 million (down 7.1% year on year) owing to the reactionary decline following the recognition of gain on sales of investment securities as an extraordinary income in the previous fiscal year. Operating results by business segment are as follows. (i) Solutions Business The Solutions Business mainly engages in the consulting and system construction services, which are based on ERP package products developed by other companies. We provided complex solutions that contribute to the resolution of customers’ issues and actively engaged in proposal activities based on customer needs. Orders received for this segment were ¥4,494 million (up 6.7% year on year) and net sales were ¥ 3,935 million (down 1.4% year on year). Segment profit was ¥1,165 million (down 10.0% year on year) due to an increase in selling expenses, among others, associated with proactive sales activities. (ii) Products Business The Products Business engages in sales of products such as the in-house developed ERP package “mcframe” series in Japan and overseas through business partners as well as support for the introduction of these products. We continued our efforts to strengthen our relationships with customers and business partners, focused on license sales, and implemented initiatives to continuously enhance brand power . Due to robust license sales and the expanded scope of consolidation, orders received for this segment were ¥2,643 million (up 38.8% year on year), net sales were ¥2,739 million (up 40.2% year on year), and segment profit was ¥1,159 million (up 52.9% year on year). 2
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(iii) S ystems Support Business The Systems Support Business mainly engages in operation and maintenance services of systems introduced to customers, and offering proposals and additional development through these services. This business segment is operated by Business System Service Corporation, a subsidiary of the Company. We continued to work on enhancing life cycle support for customers’ systems. As a result, orders received for this segment were ¥77 million (up 65.7% year on year), net sales were ¥ 106 million (up 11.8% year on year), and segment profit was ¥ 131 million (down 5.1% year on year). (2) Explanation of Financial Position (Assets) Current assets increased by ¥1,681 million from the end of the previous fiscal year to ¥ 18,901 million. This was mainly attributable to increases in cash and deposits and notes and accounts receivable - trade, and contract assets. The ratio of current assets to total assets at the end of the first quarter under review was 81.5%. Non-current assets decreased by ¥14 million from the end of the previous fiscal year to ¥4,292 million. This was mainly attributable to purchase of property, plant and equipment , which exceeded the depreciation of property, plant and equipment, and a decrease in deferred tax assets. As a result, total assets at the end of the first quarter under review increased by ¥1,667 million from the end of the previous fiscal year to ¥23,193 million. (Liabilities) Liabilities at the end of the first quarter under review increased by ¥860 million from the end of the previous fiscal year to ¥ 6,315 million. This was mainly attributable to an increase in advances received, a decrease in income taxes payable, and an increase in accrued expenses. (N et assets) Net assets at the end of the first quarter under review increased by ¥806 million from the end of the previous fiscal year to ¥ 16,878 million. This was mainly attributable to an increase owing to the recording of profit attributable to owners of parent and a decrease due to dividends of surplus. As a result, the equity ratio at the end of the first quarter under review de creased by 2.7 percentage points from the end of the previous fiscal year to 72.0%. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information There has been no change from the forecast announced on May 12, 2026. 3
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2. Consolidated Quarterly Financial Statements (1) Consolidated Quarterly Balance Sheet （thousands of yen） Assets Current assets Cash and deposits 12,141,599 13,083,919 Notes and accounts receivable - trade, and contract assets 4,416,213 4,749,776 Work in process 14,279 46,200 Other 647,367 1,021,140 Total current assets 17,219,461 18,901,037 Non-current assets Property, plant and equipment 173,299 256,263 Intangible assets Software 2,116,897 2,151,276 Leased assets － 3,219 Other 3,783 3,635 Total intangible assets 2,120,681 2,158,131 Investments and other assets Investment securities 932,049 902,250 Leasehold deposits 308,005 327,551 Deferred tax assets 513,193 480,617 Other 264,943 173,008 Allowance for doubtful accounts ( 5,499) (5,499) Total investments and other assets 2,012,692 1,877,927 Total non-current assets 4, 306,672 4,292,322 T otal assets 21,526,134 23,193,360 FY03/2026 (As of Mar. 31, 2026) 1Q FY03/2027 (As of Jun. 30, 2026) 4
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（thousands of yen） Liabilities Current liabilities Notes and accounts payable - trade 409,824 536,320 Short-term borrowings 100,000 － Accrued expenses 633,376 845,675 Income taxes payable 1,049,131 673,870 Advances received 1,647,023 2,551,911 Lease liabilities － 2,750 Provision for bonuses 723,614 357,754 Provision for bonuses for directors (and other officers) 51,800 － Provision for employee stock compensation 97,413 25,906 Reserve for guarantee for after-care of products 4,290 4,369 Other 680,163 1,222,345 Total current liabilities 5,396,639 6,220,905 Non-current liabilities Lease liabilities － 30,665 Provision for share awards for directors (and other officers) 58,134 62,738 Other － 754 Total non-current liabilities 58,134 94,158 Total liabilities 5,454,773 6,315,064 Net assets Shareholders' equity Share capital 697,600 697,600 Capital surplus 565,273 565,273 Retained earnings 15,293,148 15,708,386 Treasury shares (440,171) (342,618) Total shareholders' equity 16, 115,850 16,628,641 Accumulated other comprehensive income Valuation difference on available-for-sale securities ( 1,650) (21,086) Foreign currency translation adjustment ( 42,838) 101,500 Total accumulated other comprehensive income ( 44,489) 80,414 N on-controlling interests － 169,240 Total net assets 16,071,360 16,878,296 Total liabilities and net assets 21,526,134 23,193,360 FY03/2026 (As of Mar. 31, 2026) 1Q FY03/2027 (As of Jun. 30, 2026) 5
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(2) Consolidated Quarterly Statements of Income and Comprehensive Income Consolidated Quarterly Statement of Income(For the Three-month Period) （thousands of yen） Net sales 6,039,489 6,781,441 Cost of sales 3,197,914 3,385,151 Gross profit 2,841,574 3,396,289 Selling, general and administrative expenses 1,113,485 1,486,092 Operating profit 1,728,088 1,910,197 Non-operating income Interest income － 4,889 Dividend income 26,682 12,119 Other － 722 Total non-operating income 26,682 17,732 Non-operating expenses Interest expenses 160 378 Foreign exchange losses 232 2,372 Commission expenses 2,493 2,627 Miscellaneous expenses 980 1,143 Total non-operating expenses 3,867 6,522 Ordinary profit 1,750,903 1,921,407 Extraordinary income Gain on sale of investment securities 239,012 － Total extraordinary income 239,012 － Profit before income taxes 1,989,916 1,921,407 Income taxes 618,389 637,835 Profit 1,371,526 1,283,571 Profit attributable to non-controlling interests － 8,975 Profit attributable to owners of parent 1,371,526 1,274,596 1Q FY03/2026 (Apr. 1, 2025 – Jun. 30, 2025) 1Q FY03/2027 (Apr. 1, 2026 – Jun. 30, 2026) 6
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Consolidated Quarterly Statement of Comprehensive Income(For the Three-month Period) （thousands of yen） Profit 1,371,526 1,283,571 Other comprehensive income Valuation difference on available-for-sale securities (199,505) (19,435) Foreign currency translation adjustment 10,432 144,339 Total other comprehensive income (189,073) 124,903 Comprehensive income 1,182,453 1,408,475 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,182,453 1,380,157 Comprehensive income attributable to non-controlling interests － 28,317 1Q FY03/2026 (Apr. 1, 2025 – Jun. 30, 2025) 1Q FY03/2027 (Apr. 1, 2026 – Jun. 30, 2026) 7