Interim report
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Note : This document has been translated from 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 . FASF Consolidated Financial Results for the First Quarter Ended June 30 , 2026 6027 Name of Listed Company : Bengo4.com , Inc. Securities Code : Representative : Contact : ( Under Japanese GAAP ) August 12 , 2026 Listed Stock Exchange : Tokyo Stock Exchange URL https://www.bengo4.com/corporate/en/ Taichiro Motoe , Representative Director , President and CEO Masaoki Sawada , Director and CFO Scheduled date to commence dividend payments : TEL : + 81-3-5549-2555 Preparation of supplementary materials on financial results : Yes Holding of financial results briefing session : Yes ( for institutional investors and analysts ) ( Million yen with fractional amounts rounded down ) 1. Consolidated financial results for the first quarter ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative totals ) ( Percentages indicate year - on - year changes . ) Net sales EBITDA Operating profit Ordinary profit Profit attributable to owners of parent First quarter ended June 30 , 2026 June 30 , 2025 Million yen 4,838 3,802 15.3 % Million yen 27.3 1,001 724 % Million yen 38.2 49.5 698 36.8 % Million yen 697 % Million yen % 35.7 439 37.0 510 80.9 513 74.7 321 75.2 ( Note ) Comprehensive income : First quarter ended June 30 , 2026 : 444 million yen ( 38.3 % ) First quarter ended June 30 , 2025 : 321 million yen ( 75.2 % ) First quarter ended June 30 , 2026 June 30 , 2025 Basic earnings per share Diluted earnings per share Yen 19.24 14.22 Yen 19.22 14.08 ( Note ) EBITDA = Operating profit + Depreciation + Amortization of goodwill + Share - based payment expenses + Share of profit ( loss ) of entities accounted for using equity method ( 2 ) Consolidated financial position As of June 30 , 2026 As of March 31 , 2026 Total assets Net assets Equity ratio Million yen 16,573 13,381 Million yen % 7,615 44.2 7,209 53.2 ( Reference ) Equity capital As of June 30 , 2026 : 7,321 million yen 2. Cash dividends As of March 31 , 2026 : 7,115 million yen Annual dividends First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Fiscal year ended March 31 , 2026 Yen 0.00 Yen Yen 0.00 Yen 0.00 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) 0.00 0.00 0.00 ( Note ) Revision to dividend forecasts published most recently : No 3. Consolidated forecasts for the fiscal year ending March 31 , 2027 ( from April 1 , 2026 to March 31 , 2027 ) ( Percentages indicate year - on - year changes . ) −1–
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―2― Net sales EBITDA Operating profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Fiscal year ending March 31, 2027 20,500 25.9 4,300 35.0 3,000 36.1 2,000 32.4 87.78 (Note) Revision to earnings forecasts published most recently : No (Note) EBITDA = Operating profit + Depreciation + Amortization of goodwill + Share-based payment expenses + Share of profit (loss) of entities accounted for using equity method
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―3― * Notes (1) Major changes in the scope of consolidation during the period : Yes New 3 Companies (Company name) Mikata Micro Insurance Co., Ltd., Japan Legal Network Inc., ATE Inc. , Excluded - companies (Company name: -) (2) Application of particular accounting treatment concerning preparation of quarterly consolidated financial statements : No (3) Changes in accounting policies and changes or restatement of accounting estimates (i) Changes in accounting policies due to revisions to accounting standards and other regulations : No (ii) Changes in accounting policies other than (i) : No (iii) Change in accounting estimate : No (iv) Restatement : No (4) Number of shares issued (common stock) (i) Total number of shares issued at the end of the period (including treasury shares) As of June 30, 2026 22,867,600 shares As of March 31, 2026 22,867,600 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 84,422 shares As of March 31, 2026 1,522 shares (iii) Average number of shares during the period (cumulative quarterly) Three months ended June 30, 2026 22,857,357 shares Three months ended June 30, 2025 22,588,678 shares * Review of the accompanying quarterly consolidated financial statements by certified public accountants or an audit corporation : No * Proper use of earnings forecasts, and other special matters The forward-looking statements such as earnings forecasts stated in this document are based on the information currently available to the Group and certain assumptions that the Group judges as rational. These statements are not guarantees of future performance. Actual results may differ substantially from the forecasts due to various factors. For the assumptions underlying the forecasts and precautions when using the forecasts, please refer to “1. Overview of Operating Results and Financial Position, (3) Ex planation regarding consolidated earnings forecasts and other forward-looking statements” on page 3 of the supplementary materials.
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―4― ○ Supplementary Materials – Contents 1. Overview of Operating Results and Financial Position ……………………………………………2 (1) Overview of consolidated operating results for the first quarter ended June 30, 2026 ………2 (2) Overview of consolidated financial position for the first quarter ended June 30, 2026 ………3 (3) Explanation regarding consolidated earnings forecasts and other forward-looking statements ………3 2. Quarterly Consolidated Financial Statements and Key Notes ………………………………………4 (1) Quarterly consolidated balance sheet ……………………………………………………………4 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ………6 (3) Notes to quarterly consolidated financial statements ………………………………………8 (Notes on going concern assumptions) …………………………………………………………………8 (Notes in the case of significant changes in shareholders’ equity) ………………………8 (Notes on segment information) …………………………………………………………………………8 (Notes on statement of cash flows) ……………………………………………………………………9 (Business Combinations, etc.) …………………………………………………………………………9
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―5― 1. Overview of Operating Results and Financial Position (1) Overview of consolidated operating results for the first quarter ended June 30, 2026 During the first quarter under review, the Japanese economy continued a moderate recovery trend, supported by high levels of corporate earnings, government economic measures, and a lax financial environment, despite downward pressure from rising crude oil prices affected by the situation in the Middle East. However, the outlook remains uncertain due to the impact of developments in the Middle East on financial and foreign exchange markets and the Japanese economy and prices, as well as trends in resour ce prices and corporate wage and pricing behavior. Under the mission, “Be the Professional -Tech Company,” the Group operates the Professional Support Business, which involves the operation of Internet media through portal sites such as Bengoshi.com, Zeirishi.com, and BUSINESS LAWYERS, as well as the provis ion of services for professionals such as the Hanreihisho precedent database and Legal Brain Agent, an AI agent specializing in legal affairs. The Group also operates the CloudSign Business, which provides the CloudSign contract management platform. In addition, the Company acquired all shares of Mikata Micro Insurance Co., Ltd. on April 27, 2026, and made it a consolidate d subsidiary. As a result, the company's operating results have been reflected from the first quarter under review. Since launc hing Japan's first standalone attorney fee insurance, the company has become the industry leader in that market. Furthermore, the Company acquired all shares of Japan Legal Network Inc. on April 2, 2026, and made it and its subsidiary, AT E Inc., consolidated subsidiaries. Both companies provide Japan's first new legal fee provision service that can be relied upon even after a conflict has occurred. Since the deemed acquisition date is June 30, 2026, only the balance sheet as of June 30, 2026 , has been consolidated for the first quarter under review. Additionally, for the purpose of streamlining management, the two companies were merged on August 1, 2026, with Japan Legal Network Inc. as the surviving company, and the company name was changed to Bengo4.com Legal Finance Inc. As a result of the above, net sales for the first quarter under review were 4,838 million yen (up 27.3% year on year), operating profit was 698 million yen (up 36.8% year on year), ordinary profit was 697 million yen (up 35.7% year on year), and profit att ributable to owners of parent was 439 million yen (up 37.0% year on year). Operating results by business segment are as follows. (Professional Support Business) In the Professional Support Business, the Company operates Internet media through portal sites such as Bengoshi.com, Zeirishi.com, and BUSINESS LAWYERS, and provides services to support operational efficiency for professionals, including operational support services for registered lawyers, Legal Brain Agent (an AI agent specializing in legal affairs), and the Hanreihisho precedent database. This reportable segment also includes the small -amount short-term insurance business operated by Mikata Micro Insurance Co., Ltd., which became a consolidated subsidiary on April 27, 2026, and the legal finance business operated by Japan Legal Networ k Inc. and ATE Inc. (both companies have become Bengo4.com Legal Finance Inc. through a merger), which became consolidated subsidiaries on April 2, 2026. In the Bengoshi.com business, the Company focused on providing content that is helpful for users and improving usability, whi le also striving to develop new products for lawyers by strengthening collaboration with Hanreihisho and Bengo Kakumei. As a result, the number of registered lawyers as of the end of the first quarter under review rose 3.6% year on year, to 30,501, of which the number of lawyers with paid member subscriptions to the lawyer support service stood at 14,860 (an increase of 1.4% year on year). As a result, net sales and segment profit increased 30.9% and 12.7% year on year, to 2,329 million yen and 521 million yen, respectively, in the first three months under review. (CloudSign Business) In the CloudSign Business, the Company provides the contract management platform "CloudSign." The Company sought to reinforce its development and sales systems by actively recruiting human resources, while simultaneously improving usability, increasing recognition, and expanding its customer base through the placement of advertisements in a range of media, among other efforts. As a result, the number of contracts sent in the first three months under review increased 15.7% year on year, to 3,230,608. As a result, net sales and segment profit increased 24.0% and 45.8% year on year, to 2,508 million yen and 949 million yen,
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―6― respectively, in the first three months under review. (2) Overview of consolidated financial position for the first quarter ended June 30, 2026 Total assets at the end of the first quarter under review stood at 16,573 million yen, an increase of 3,192 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase in goodwill resulting from the acquisition of shares of a subsidiary, partially offset by a decrease in cash and deposits. (Current assets) Current assets at the end of the first quarter under review stood at 7,627 million yen, a decrease of 898 million yen from th e end of the previous consolidated fiscal year. This was chiefly attributable to a decrease of 1,006 million yen in cash and deposits. (Non-current assets) Non-current assets at the end of the first quarter under review stood at 8,946 million yen, an increase of 4,091 million yen from the end of the previous consolidated fiscal year. This was largely due to increases of 2,993 million yen in goodwill, 867 mill ion yen in deposits and guarantee deposits, and 170 million yen in software. (Current liabilities) Current liabilities at the end of the first quarter under review stood at 4,029 million yen, an increase of 259 million yen f rom the end of the previous consolidated fiscal year. This was due to increases of 390 million yen in the current portion of long -term borrowings and 168 million yen in advances received, partially offset by decreases of 162 million yen in accounts payable - other and 124 million yen in income taxes payable. (Non-current liabilities) Non-current liabilities at the end of the first quarter of the consolidated fiscal year under review stood at 4,928 million yen, an increase of 2,527 million yen from the end of the previous consolidated fiscal year. This was primarily due to an increase of 2,086 million yen in long-term borrowings and an increase of 456 million yen in insurance contract reserves. (Net assets) Net assets at the end of the first quarter of the consolidated fiscal year under review stood at 7,615 million yen, an increa se of 405 million yen from the end of the previous consolidated fiscal year. This was primarily due to an increase of 439 million yen in retained earnings. (3) Explanation regarding consolidated earnings forecasts and other forward-looking statements There is no change to the earnings forecasts for the fiscal year ending March 31, 2027, announced on May 13, 2026.
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―7― 2. Quarterly Consolidated Financial Statements and Key Notes (1) Quarterly consolidated balance sheet (Thousand yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 5,199,665 4,193,417 Accounts receivable 2,469,462 2,372,180 Prepaid expenses 824,808 860,484 Other 105,099 273,759 Allowance for doubtful accounts (73,044) (72,770) Total current assets 8,525,991 7,627,071 Non-current assets Property, plant and equipment Buildings and structures, net 71,574 91,268 Tools, furniture and fixtures, net 79,359 86,256 Lease assets, net - 10,131 Construction in progress - 4,500 Total property, plant and equipment 150,934 192,155 Intangible assets Goodwill 804,044 3,797,627 Technology assets 1,217,927 1,193,568 Software 972,501 1,142,874 Software in progress 289,069 270,933 Trademark right 214,212 210,617 Other 36,534 40,334 Total intangible assets 3,534,290 6,655,956 Investments and other assets Investment securities 492,895 527,276 Distressed receivables 34,873 45,283 Lease and guarantee deposits 178,573 1,046,256 Deferred tax assets 418,476 379,567 Other 79,971 145,473 Allowance for doubtful accounts (34,872) (45,282) Total investments and other assets 1,169,917 2,098,574 Total non-current assets 4,855,142 8,946,686 Total assets 13,381,133 16,573,757
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―8― (Thousand yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Short-term borrowings 250,000 250,000 Current portion of long-term borrowings 630,996 1,021,788 Accounts payable - other 1,097,006 934,949 Accrued expenses 145,054 130,484 Income taxes payable 383,095 258,343 Accrued consumption taxes 263,384 235,521 Advances received 853,405 1,021,949 Provision for bonuses 6,999 22,448 Provision for bonuses for directors (and other officers) 24,792 11,017 Other 116,106 143,489 Total current liabilities 3,770,838 4,029,992 Non-current liabilities Long-term borrowings 1,851,496 3,937,823 Deferred tax liabilities 474,233 463,557 Retirement benefit liability 72,800 68,800 Insurance contract reserves - 456,229 Other 2,050 2,050 Total non-current liabilities 2,400,579 4,928,460 Total liabilities 6,171,418 8,958,452 Net assets Shareholders' equity Share capital 50,000 50,000 Capital surplus 1,206,531 1,149,000 Retained earnings 5,866,519 6,306,338 Treasury shares (7,485) (184,190) Total shareholders' equity 7,115,566 7,321,148 Share acquisition rights 94,148 105,984 Non-controlling interests - 188,172 Total net assets 7,209,714 7,615,304 Total liabilities and net assets 13,381,133 16,573,757
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―9― (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income Three months ended June 30, 2026 (Thousand yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 3,802,096 4,838,168 Cost of sales 798,799 1,003,245 Gross profit 3,003,297 3,834,923 Selling, general and administrative expenses 2,492,855 3,136,570 Operating profit 510,441 698,352 Non-operating income Interest income - 747 Share of profit of entities accounted for using equity method 9,142 11,003 Commission income 918 1,152 Miscellaneous income 1,673 1,367 Total non-operating income 11,734 14,270 Non-operating expenses Interest expenses 5,057 14,363 Miscellaneous losses 3,230 856 Total non-operating expenses 8,287 15,219 Ordinary profit 513,888 697,404 Extraordinary income Gain on reversal of share acquisition rights 53 - Total extraordinary income 53 - Extraordinary losses Impairment losses - 2,224 Loss on retirement of non-current assets 1,124 - Total extraordinary losses 1,124 2,224 Profit before income taxes 512,818 695,179 Income taxes - current 202,290 236,286 Income taxes - deferred (10,623) 14,599 Total income taxes 191,667 250,885 Quarterly net profit 321,150 444,293 Profit attributable to non-controlling interests - 4,475 Profit attributable to owners of parent 321,150 439,818
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―10― Quarterly consolidated statement of comprehensive income Three months ended June 30, 2026 (Thousand yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 321,150 444,293 Comprehensive income 321,150 444,293 (Breakdown) Comprehensive income attributable to owners of parent 321,150 439,818 Comprehensive income attributable to non -controlling interests - 4,475
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―11― (3) Notes to quarterly consolidated financial statements (Notes on going concern assumptions) Not applicable. (Notes in the case of significant changes in shareholders’ equity) Based on the resolution of the Board of Directors meeting held on June 11, 2026, the Company acquired 82,900 shares of treasury stock. As a result, treasury stock increased by 176,705 thousand yen during the first quarter of the consolidated fiscal year under review, and treasury stock amounted to 184,190 thousand yen at the end of the first quarter of the consolidated fiscal year under review. (Notes to quarterly consolidated financial statements) [Segment information] I. Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) 1. Information on net sales and profit (loss) by reportable segment (Thousand yen) Reportable segments Adjustment (Note 1) Amount posted in the quarterly consolidated statement of income (Note 2) Professional Support Business CloudSign Business Total Net sales Net sales to external customers 1,779,727 2,022,369 3,802,096 - 3,802,096 Inter-segment sales or transfers - - - - - Total 1,779,727 2,022,369 3,802,096 - 3,802,096 Segment profit 463,351 651,044 1,114,395 (603,953) 510,441 (Note) 1. The adjustment for segment profit of (603,953) thousand yen includes corporate expenses that are not allocated to each reportable segment. Corporate expenses consist primarily of general and administrative expenses that are not attributable to the reportable segments. 2. Segment profit is adjusted to be consistent with the operating profit reported in the quarterly consolidated statement of income. II. Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) 1. Information on net sales and profit (loss) by reportable segment (Thousand yen) Reportable segments Adjustment (Note 1) Amount posted in the quarterly consolidated statement of income (Note 2) Professional Support Business CloudSign Business Total Net sales Net sales to external customers 2,329,666 2,508,502 4,838,168 - 4,838,168 Inter-segment sales or transfers - - - - - Total 2,329,666 2,508,502 4,838,168 - 4,838,168 Segment profit 521,970 949,133 1,471,104 (772,751) 698,352 (Note) 1. The adjustment for segment profit of (772,751) thousand yen includes corporate expenses that are not allocated to each reportable segment. Corporate expenses consist primarily of general and administrative expenses that are not attributable to the reportable segments. 2. Segment profit is adjusted to be consistent with the operating profit reported in the quarterly consolidated statement of income. 2. Information on impairment losses on non-current assets and goodwill by reportable segment (Significant impairment losses on non-current assets) Information is omitted as it is not material.
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―12― (Significant changes in amount of goodwill) In the Professional Support Business segment, Mikata Micro Insurance Co., Ltd. has been newly included in the scope of consolidation. The increase in goodwill due to this event was 2,459,721 thousand yen during the three months ended June 30, 2026. In addition, Japan Legal Network Inc. and ATE Inc. (both companies have merged to become Bengo4.com Legal Finance Inc.) have also been newly included in the scope of consolidation. The increase in goodwill due to this event was 596,425 thousand yen during the three months ended June 30, 2026. Note that the amount of goodwill for Japan Legal Network Inc. and ATE Inc. is a provisionally calculated amount because the allocation of the acquisition cost has not been completed as of the end of the first quarter un der review. 3. Matters on changes in reportable segments Previously, the Group’s reportable segments were the Media business and IT/Solutions business. These were changed to the Professional Support Business and the CloudSign Business starting from the second quarter of the previous consolidated fiscal year for the purpose of promoting the Professional -Tech services, as stated in the Company’s mission, and giving greater clarity to information about CLOUDSIGN, a growth business. The segment information for the first quarter of the previous consolidated fiscal year presented herein has been prepared bas ed on the reportable segments after the change. (Notes on statement of cash flows) The Company did not prepare quarterly consolidated statements of cash flows for the first quarter under review. Depreciation (including amortization of intangible assets except for goodwill) and amortization of goodwill for the first quarter under re view are as follows. (Thousand yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 185,781 217,462 Amortization of goodwill 18,641 62,565 (Business combinations) (Business combination through acquisition) At a Board of Directors meeting held on February 12, 2026, the Company resolved to acquire all the issued shares of Japan Leg al Network Inc. (hereinafter "Japan Legal Network") and its reorganization as a subsidiary, and concluded a share transfer agreement on the same date. The Company acquired the shares on April 2, 2026. Since Japan Legal Network has ATE Inc. as a wholly owned subsidiary, ATE Inc. also became a consolidated subsidiary of the Company through this share acquisition. 1. Outline of the business combination (1) Name and business of acquired company Name of acquired company: Japan Legal Network Inc. Business: Operation of a legal finance business (2) Main reasons for the business combination A serious social problem in Japan is that only 20% of people facing legal trouble in their lives actually seek the support of lawyers or other legal specialists. Heavy initial expenses, including retainer fees and litigation costs, are a major obstacle that forc es many to reluctantly give up on protecting their rights, even though they wish to move forward with le gal action. The Company believes that eliminating disparities in access to justice due to economic reasons and helping establish a society in which everyone can as sert their legitimate rights is an extremely important responsibility for the Company, which serves as legal infrastructure. Japan Legal Network Co., Ltd. develops Japan's first innovative service covering legal fees that can be purchased after the occurrence of a conflict, with the mission of "using technologies and finances in the legal area to help establish a society in whic h people do not reluctantly give up on protecting their rights." The company's service opens the way toward providing effective relief to peo ple who
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―13― would give up on legal action for cost reasons, and it is highly aligned with the Company's goal of "ending the current situa tion in which only 20% of people in legal trouble can actually seek help." Through this business combination, the Company expects to create multifaceted synergies, including the accelerated popularization of the service leveraging the Company's customer base, which is one of the largest in Japan, the development of products based on the combination of the two companies' knowledge of AI technologies, and the implementation of the Legal Brain initiative. Through these moves, the Company aims to further improve access to legal services and to create a society where more legal conflicts are resolved. (3) Date of the business combination April 2, 2026 (deemed acquisition date: June 30, 2026) (4) Legal form of the business combination Share acquisition in exchange for cash (5) Name of the combined entity No change (6) Percentage share of voting rights acquired 100% (7) Main reason for the decision to acquire the company Availability to the Company of the method of share acquisition in exchange for cash. 2. Period of the acquired company's financial results included in the quarterly consolidated financial statements Since the deemed acquisition date of the company is June 30, 2026, only the balance sheet has been consolidated, and there is no period of the acquired company's financial results included in the quarterly consolidated statement of income. 3. Acquisition cost of the acquired company and breakdown by type of consideration Consideration for acquisition Cash 730,000 Thousand yen Acquisition cost 730,000 Thousand yen 4. Details of contingent consideration stipulated in the business combination agreement and future accounting policies (1) Details of contingent consideration The acquisition consideration does not include any contingent consideration. The contract stipulates that a contingent consideration of up to 40,000 thousand yen will be paid if certain conditions are met, which has not been determined at this time. (2) Accounting policies In the event that additional consideration is paid, it is treated as having been paid at the time of acquisition, and the acquisition cost, the amount of goodwill, and the amortization of goodwill are adjusted accordingly. 5. Major acquisition-related costs and amounts Advisory fees and commissions, etc.: 3,445 thousand yen 6. Amount of goodwill incurred, reason for incurrence, amortization method, and amortization period (1) Amount of goodwill incurred 596,425 thousand yen Note that the amount of goodwill incurred is a provisionally calculated amount because the allocation of the acquisition cost has not been completed as of the end of the current quarterly consolidated accounting period.
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―14― Note that the amount of goodwill incurred is a provisionally calculated amount because the allocation of the acquisition cost has not been completed as of the end of the current quarterly consolidated accounting period. (2) Reason for incurrence It represents the excess earning power expected from future business development. (3) Amortization method and amortization period The amortization period for goodwill is currently under review and is scheduled to be determined once the allocation of the acquisition cost is completed.
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―15― (Business combination through acquisition) At a Board of Directors meeting held on February 12, 2026, the Company resolved to acquire a portion of the issued shares of Mikata Micro Insurance Co., Ltd. (hereinafter, 'Mikata') for the purpose of making it a consolidated subsidiary, and acquired a majority of the voting rights of the company on April 27, 2026. 1. Overview of business combination (1) Name and business of acquired company Name of acquired company: Mikata Micro Insurance Co., Ltd. Business: Small amount short term insurance business and services incidental thereto (2) Main reasons for the business combination A serious social problem in Japan is that only 20% of people facing legal trouble in their lives actually seek the support of lawyers or other legal specialists. Heavy initial expenses, including retainer fees and litigation costs, are a major obstacle that forces many people to reluctantly give up on exercising their rights, even though they wish to move forward with legal action. As an entity supporting legal infrastructure, the Company is aware that one very significant responsibility it has is the elimination of disparities in acc ess to justice due to economic reasons and to help establish a society in which everyone can assert their legitimate rights. MIKATA released Japan's first standalone attorney fee insurance product in May 2013. Since then, it has been expanding its business as the largest company in this market. It opened a new field of insurance that had not previously been cultivated by existin g non-life insurance companies and dramatically improved access to legal services. It has been carefully addressing the problem in Japan ese society that only 20% of people have access to legal support. This share acquisition is expected to produce multiple synergies, including the acceleration of sales leveraging the Company’s customer base, the extension of new product functions based on the combination of the two companies' knowledge and AI technologies, and the implementation of the Legal Brain initiative. Through these moves, the Company aims to help establish a society where more le gal conflicts are resolved. (3) Date of the business combination April 27, 2026 (Deemed acquisition date: April 1, 2026) (4) Legal form of the business combination Share acquisition in exchange for cash (5) Name of the combined entity No change (6) Percentage share of voting rights acquired 53% as of the date of the business combination (7) Main reason for the decision to acquire the company Availability to the Company of the method of share acquisition in exchange for cash. 2. Period of the acquired company's financial results included in the quarterly consolidated financial statements From April 1, 2026 to June 30, 2026 3. Acquisition cost of the acquired company and breakdown by type of consideration Consideration for acquisition Cash 2,788,440 Thousand yen Acquisition cost 2,788,440 Thousand yen
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―16― 4. Major acquisition-related costs and amounts Remuneration and fees for advisors: 8,464 thousand yen 5. Amount of goodwill incurred, reason for incurrence, amortization method, and amortization period (1) Amount of goodwill incurred 2,459,721 thousand yen (2) Reason for incurrence It represents the excess earning power expected from future business development. (3) Amortization method and amortization period Straight-line amortization over 14 years