Interim report
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Summary of Consolidated Financial Results for the Fiscal Year Ended August 31, 2026 [Japanese GAAP] October 15, 2026 Company name: SERAKU Co., Ltd. Listing: Tokyo Stock Exchange (Standard Market) Stock code: 6199 URL http://www.seraku.co.jp Representative: Tatsumi Miyazaki, Representative Director, President & CEO Contact: Shingo Kometani, Senior Executive Officer, General Manager of Corporate Management Division Tel: +81-(0)3-3227-2321 Scheduled date of Annual General Meeting of Shareholders: November 27, 2026 Scheduled date of payment of dividend: November 30, 2026 Scheduled date of filing of Annual Securities Report: November 26, 2026 Preparation of supplementary materials for financial results: Yes Holding of financial results meeting: Yes (for analysts) (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Fiscal Year Ended August 31, 2026 (Sep. 1, 2025 to Aug. 31, 2026) (1) Consolidated results of operations (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Fiscal year ended Aug. 31, 2026 25,517 3.0 2,864 12.3 2,924 12.5 1,854 8.5 Fiscal year ended Aug. 31, 2025 24,776 11.5 2,550 12.2 2,599 12.1 1,709 8.5 Note: Comprehensive income (millions of yen) Fiscal year ended Aug. 31, 2026 1,856 (up 8.5%) Fiscal year ended Aug. 31, 2025 1,711 (up 8.7%) Net income per share Diluted net income per share Return on equity Ordinary profit on total assets Operating profit to net sales Yen Yen % % % Fiscal year ended Aug. 31, 2026 140.46 140.31 19.5 21.0 11.2 Fiscal year ended Aug. 31, 2025 127.16 126.89 20.6 20.5 10.3 Reference: Equity in earnings of affiliates (millions of yen) Fiscal year ended Aug. 31, 2026 — Fiscal year ended Aug. 31, 2025 — (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of Aug. 31, 2026 14,573 10,152 69.5 781.56 As of Aug. 31, 2025 13,324 8,902 66.6 668.83 Reference: Shareholders’ equity (millions of yen) As of Aug. 31, 2026 10,123 As of Aug. 31, 2025 8,870 (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen Millions of yen Millions of yen Millions of yen Fiscal year ended Aug. 31, 2026 1,808 (200) (640) 8,579 Fiscal year ended Aug. 31, 2025 2,053 (650) (634) 7,612 2. Dividends Dividend per share Total dividends Payout ratio (consolidated) Dividend on equity (consolidated) Q1-end Q2-end Q3-end Year-end Total Yen Yen Yen Yen Yen Millions of yen % % Fiscal year ended Aug. 31, 2025 — 0.00 — 13.20 13.20 176 10.4 2.1 Fiscal year ended Aug. 31, 2026 — 0.00 — 17.40 17.40 227 12.4 2.4 Fiscal year ending Aug. 31, 2027 (forecast) — 0.00 — 22.90 22.90 15.0
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3. Consolidated Earnings Forecast for the Fiscal Year Ending August 31, 2027 (Sep. 1, 2026 to Aug. 31, 2027) (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen First half 13,400 7.3 1,150 (4.3) 1,170 (5.5) 730 2.9 59.44 Full year 28,300 10.9 3,010 5.1 3,060 4.6 1,980 6.8 152.85 * Notes (1) Significant changes in the scope of consolidation during the period: None Newly added: - Excluded: - (2) Changes in accounting policies and accounting estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Restatements: None (3) Number of shares issued (common shares) 1) Number of shares issued as of the end of the period (including treasury shares) As of Aug. 31, 2026 13,560,000 shares As of Aug. 31, 2025 13,680,900 shares 2) Number of treasury shares as of the end of the period As of Aug. 31, 2026 606,405 shares As of Aug. 31, 2025 417,970shares 3) Average number of shares during the period Fiscal year ended Aug. 31, 2026 13,203,252 shares Fiscal year ended Aug. 31, 2025 13,445,150 shares Note: Both “Number of treasury shares as of the end of the period” and the number of treasury shares that are to be subtracted when calculating “Average number of shares during the period,” contain the shares issued by Seraku and held by its Employee Stock Ownership Plan (ESOP) trust account. Reference: Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended August 31, 2026 (Sep. 1, 2025 to Aug. 31, 2026) (1) Non-consolidated results of operations (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % Fiscal year ended Aug. 31, 2026 20,752 1.3 1,868 3.8 3,058 40.9 2,183 55.3 Fiscal year ended Aug. 31, 2025 20,485 8.0 1,798 8.7 2,171 11.6 1,406 5.9 Net income per share Diluted net income per share Yen Yen Fiscal year ended Aug. 31, 2026 165.88 165.70 Fiscal year ended Aug. 31, 2025 104.60 104.38 (2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of Aug. 31, 2026 13,376 9,741 72.6 749.77 As of Aug. 31, 2025 12,226 8,157 66.5 612.65 Reference: Shareholders’ equity (millions of yen) As of Aug. 31, 2026 9,712 As of Aug. 31, 2025 8,125 * The current financial report is not subject to audit by certified public accountants or auditing firms. * Explanation of appropriate use of earnings forecasts and other special items Forecasts of future performance in these materials are based on assumptions judged to be reasonable and information available to the management of Seraku at the time these materials were prepared and do not represent guarantees of future performance. Actual results may differ materially from these forecasts for various reasons. For a discussion of the assumptions and other factors considered by Seraku in preparing the above projections, please refer to page 5 of the attachments, “1. Overview of Results of Operations, (4) Outlook.”
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Contents of Attachments 1. Overview of Results of Operations ..................................................................................................................................... 2 (1) Results of Operations .................................................................................................................................................... 2 (2) Financial Position ......................................................................................................................................................... 4 (3) Cash Flows .................................................................................................................................................................... 4 (4) Outlook ......................................................................................................................................................................... 5 2. Basic Approach to the Selection of Accounting Standards ................................................................................................. 6 3. Consolidated Financial Statements and Notes .................................................................................................................... 7 (1) Consolidated Balance Sheet .......................................................................................................................................... 7 (2) Consolidated Statements of Income and Comprehensive Income ................................................................................. 9 Consolidated Statement of Income .......................................................................................................................... 9 Consolidated Statement of Comprehensive Income ................................................................................................ 10 (3) Consolidated Statement of Changes in Equity .............................................................................................................. 11 (4) Consolidated Statement of Cash Flows ......................................................................................................................... 13 (5) Notes to Consolidated Financial Statements ................................................................................................................. 14 Going Concern Assumption ......................................................................................................................................... 14 Changes in Accounting Policies .................................................................................................................................. 14 Segment and Other Information .................................................................................................................................. 15 Per Share Information .................................................................................................................................................. 19 Material Subsequent Events ........................................................................................................................................ 19 4. Additional Information ....................................................................................................................................................... 20 Sales Results ...................................................................................................................................................................... 20
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1. Overview of Results of Operations (1) Results of Operations During the fiscal year ended August 31, 2026, the Japanese economy saw continued uncertainty in overseas economies due to the growing uncertainty surrounding the US trade policy. High uncertainty still continued as a result of unstable exchange rates and volatile resource prices, among others, in addition to the prolonged geopolitical risks concerning Ukraine and the Middle East. As the demand for AI globally expanded, there were also situations where semiconductor supply and demand became tight. The domestic economy, on the other hand, maintained a moderate recovery trend, partly because both increased corporate earnings and wage hikes in wider sectors helped improve income conditions, and also because inbound demand remained firm and capital expenditures increased. We also observed some changes in the financial environment as the Bank of Japan was moving away from the accommodative monetary policy amid long-term interest rates trending upward. Under such an economic environment, we need to pay close attention to trends of the US trade policy and price trends, uncertain overseas economies, and trends in monetary policies, in considering the future outlook. In Japan’s IT sector, which is the primary business field where the Group provides its services, IT/DX-related investments aimed at improving business efficiency and strengthening competitiveness continued to show a steady growth, in line with the rapid progress and broader use of digital technologies, including generative AI. Corporate AI investments are on the rise and strategic alliances between major SIers and overseas AI companies are also taking place one after another. In particular, the demand for cloud-enabled system integration and system operation/maintenance services is growing, as the optimal IT infrastructure forms an important base to support management strategy. AI platformers such as those in the US are also expanding to adopt the FDE (Forward Deployed Engineer) model, transforming the very form in which AI solutions are provided. Similar changes can be observed in the Japanese market as well. A dditionally, while Japanese companies are increasingly adopting generative AI, its integration into internal business processes is still limited to only a fraction of them. Their future challenges are moving beyond the mere adoption of AI tools to AI-driven business processes reengineering (BPR). In such a business environment, the Seraku Group has regarded the development of its in -house engineers’ AI implementation skills and the strengthening of its solution delivery system through the IT personnel platform as key growth indicators while seeking to provide a wide range of IT services by building a flexible and stable resource structure through enhanced alignment with our business partners. The Group aims at being a company that supports its client companies’ business transformations through delivering value in the field of AI-driven business process reengineering (BPR) and the information security domain, in addition to providing IT personnel. In addition, our ded icated AI team is initiating AI-driven internal operations and the launch of an AI solutions business for customers by leveraging the Group’s AI and IoT development capabilities. In this way, we are promoting transformation into an AI solution company with a highly profitable structure. As a result, net sales at the Group increased 3.0% year on year, to 25,517,638 thousand yen, operating profit rose 12.3% year on year, to 2,864,551 thousand yen, and ordinary profit climbed 12.5% year on year, to 2,924,113 thousand yen. Profit attributable to owners of parent increased 8.5% year on year, to 1,854,501 thousand yen. Results by business segment were as follows. 1) Digital Integration In the Digital Integration business, we consistently undertake the construction, operation, and maintenance of various IT systems in the SI (System Integration) area. In addition, we promote initiatives for building a structure to provide more efficient and advanced services by utilizing AI technologies, including generative AI. In the DX (Digital Transformation) area, we help companies to introduce, operate, and fully deploy cloud solutions that center around Salesforce, a customer and sales management system and COMPANY , which is an integrated personnel affairs system. We also p romote the business use of AI in client companies through NewtonX, a generative AI utilization platform for corporate clients. Our IoT Cloud Support Center provides 24x7 operations of cloud infrastructures and IoT services. As initiatives cross-cutting both areas of SI and DX, we have also begun developing and providing FDE-centered AI solutions. These solutions visualize and redesign business processes by engaging with customers’ sites and providing integrated support that extends to the implementation and utilization of AI. We aim to create new added value that goes beyond conventional system development and cloud implementation. Looking at the fiscal year under review, we took steps to further expand transactions against the backdrop of solid demand for IT investments in the construction and operation of IT systems, the adoption of cloud platforms, and the implementation of 24x7 managed services. Also, in the areas of Salesforce and COMPANY , we put forward proposals that reinforced consulting
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functions concerning projects on sales/business process reforms as well as personnel affairs, seeking to make our services higher value -added. We also worked to win more prime projects and focused on account management to reinforce our relationships with existing customers. As a result, net sales in this segment came to 24,621,239 thousand yen, up 3.1% year on year. Segment profit was 2,881,833 thousand yen, up 10.3% year on year. 2) Midori Cloud Starting with the social implementation of cutting -edge technologies, including AI and IoT, the Seraku Group provides platform services, Midori Cloud and Farm Cloud, to support the DX of agriculture, livestock, and fisheries as one of its application sectors. The Midori Cloud business provides, in addition to these platform services, solution services to solve individual issues, particularly those faced in primary industrial sectors. In particular, the core technology (technology that instantly determines a wide variety of large volumes of shipments and secures traceability) acquired through the development of Midori Cloud Rakuraku Shukka realizes labor saving and paperless operations in logistics and inventory management, and can be applied to a wide range of industrial sectors beyond fruit and vegetable distribution that face challenges such as a declining working population and logistical constraints. The Seraku Group positions the Midori Cloud business as one that creates new markets, expanding areas by applying these technologies to other industrial sectors, and as a growth foundation that goes beyond mere agricultural DX support. In addition, based on our technological assets in AI and smart technology, cultivated through such research and development, and a dedicated AI team, the Midori Cloud business is responsible for Group-wide AI service development in both existing and new businesses. In the fiscal year under review, we spared no effort to increase orders for solution services. We also make upfront investments for the sales expansion of Midori Cloud Rakuraku Shukka, a software -based solution released in March 2023, to help companies engaging in the distribution of vegetables, fruits, flowers, and rice adopt digital technologies that use bar codes, cloud systems, etc. Net sales, on the other hand, fell compared to the same period last year due to a reactionary effect of some large-scale projects recognized in the previous fiscal year. With many farmers and shipping authorities facing the same issue with respect to the collection and shipping operation of agricultural products, we will work to increase the number of our products used and that of shipping sites using our product at existi ng customers, besides promoting the service with a focus on JA and agricultural production corporations nationwide. As a result, net sales in this segment amounted to 239,297 thousand yen, up 1.8% year on year. The segment loss was 95,921 thousand yen (segment loss of 118,810 thousand yen in the previous year).
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3) Mechanical Design and Engineering In the Mechanical Design and Engineering business, SERAKU Business Solutions, a consolidated subsidiary, provides 3D CAD technologies and technologies for the quality control of experiments and performance tests, as well as those for communications system construction and telecommunications. In the fiscal year under review, sales remained strong, attributable to stable utilization rates and efforts to win projects in new technological fields. As we anticipate the further acquisition of projects in each field, we will strive to increase enginee rs’ added value through training that aims at business scale and geographic expansion. As a result, net sales in this segment came to 799,891 thousand yen, up 1.7% year on year. Segment profit was 59,439 thousand yen, up 60.6% year on year. (2) Financial Position Assets Total assets increased by 1,248,865 thousand yen from the end of the previous fiscal year to 14,573,202 thousand yen as of the end of the current fiscal year. This was mainly due to increases of 868,911 thousand yen in cash and deposits, 137,312 thousand yen in buildings, 136,900 thousand yen in accounts receivable - trade and contract assets, and 79,642 thousand yen in current assets (other), partially offset by decreases of 27,954 thousand yen in work in process, 25,723 thousand yen in goodwill, and 19,123 thousand yen in leasehold and guarantee deposits. Liabilities Total liabilities decreased by 1,174 thousand yen from the end of the previous fiscal year to 4,420,388 thousand yen. This was attributable largely to increases of 198,538 thousand yen in income taxes payable, 56,974 thousand yen in provision for bonuses, and 44,574 thousand yen in accounts payable - trade, partially offset by decreases of 127,192 thousand yen in accounts payable - other, 72,394 thousand yen in other current liabilities, and 52,268 thousand yen in accrued consumption taxes. Net assets Total net assets increased by 1,250,039 thousand yen from the end of the previous fiscal year to 10,152,813 thousand yen. This increase was attributable chiefly to increases of 1,474,861 thousand yen in retained earnings and 245,692 thousand yen in treasury shares, among other factors. (3) Cash Flows Cash and cash equivalents (“net cash”) at the end of the current fiscal year amounted to 8,579,748 thousand yen. Cash flow in each section of the cash flow statement in the current fiscal year and the main factors are as follows. Cash flows from operating activities Net cash provided by operating activities totaled 1,808,392 thousand yen. Cash used for income taxes paid of 953,716 thousand yen, an increase in trade receivables of 136,900 thousand yen, an increase in provision for bonuses of 56,974 thousand yen, among other factors, were offset by cash provided by profit before income taxes of 2,957,613 thousand yen, an increase in inventories of 45,378 thousand yen, an increase in trade payables of 44,574 thousand yen, and an increase in provision for share awards of 7,646 thousand yen, among other factors. Cash flows from investing activities Net cash used in investing activities totaled 200,680 thousand yen. Cash was used for the purchase of property, plant and equipment of 196,322 thousand yen, purchase of insurance funds of 79,642 thousand yen, and payments of leasehold and guarantee deposits of 74,800 thousand yen. Cash flows from financing activities Net cash used in financial activities totaled 640,095 thousand yen. Cash was used mainly for the purchase of treasury shares of 450,128 thousand yen, dividends paid of 176,322 thousand yen, and repayments of long-term borrowings of 27,798 thousand yen.
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Reference: Trends in cash flow indicators FY8/23 FY8/24 FY8/25 FY8/26 Equity ratio (%) 61.0 64.2 66.6 69.5 Market value-based equity ratio (%) 162.8 158.4 164.0 124.4 Interest-bearing debt to cash flow ratio (year) 0.1 0.1 0.0 — Interest coverage ratio (time) 1,028.9 1,599.1 4,829.0 14,852.5 Equity ratio: Shareholders’ equity / Total assets Market value-based equity ratio: Market capitalization / Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows Interest coverage ratio: Cash flows / Interest payments Notes: 1. Cash flows are calculated using the figures for operating cash flows in the consolidated statement of cash flows. 2. Interest-bearing debt includes all debts on the consolidated balance sheet that incur interest. (4) Outlook Looking ahead, we anticipate sustained uncertainty surrounding the global economy, such as trends in the US trade policy, prolonged geopolitical risks in Ukraine and the Middle East, and fluctuations in exchange rates and resource prices. The growing demand for AI can globally continue to tighten semiconductor supply and demand. While Japan anticipates the improvement of income conditions due to increased corporate earnings and wage increase, its economic outlook still remains uncertain, affected by price trends, the Bank of Japan’s shift of its monetary policy, and rising long-term interest rates among others. In the area of the IT sector, IT/DX -related investments continue to increase for efficient business operations and stronger competitiveness as digital technologies advance, including generative AI. The demand for cloud-enabled system integration and system operation/maintenance services is expected to remain strong. As the format of providing AI solutions itself is changing, we believe that the demand for business process reengineering (BPR) will further grow, beyond the mere adoption of AI tools. In such an environment, the Group develops human capital capable of project management (PM) as well as engineers who can implement AI on site, while strengthening the alignment with our business partners and focusing on the expansion of the system to deliver soluti ons through the IT personnel platform. In addition, we promote efforts to turn ourselves into an AI solution company with a highly profitable structure by realizing value provision in the domain of information security and winning prime projects through AI -driven business process reengineering (BPR). Thus, we will improve both profitability and skills of our engineers, in order to realize further corporate growth. Considering the above, we forecast net sales of 28,300,000 thousand yen, an operating profit of 3,010,000 thousand yen, an ordinary profit of 3,060,000 thousand yen and a profit attributable to owners of parent of 1,980,000 thousand yen. This forecast is based on information available at the time this report was released. Actual results may differ for a variety of reasons.
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2. Basic Approach to the Selection of Accounting Standards The Seraku Group currently prepares consolidated financial statements using Generally Accepted Accounting Principles in Japan to permit comparisons with prior years and with the financial data of other companies. We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS) by considering the situation in Japan and overseas.
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3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet (Thousands of yen) FY8/25 (As of Aug. 31, 2025) FY8/26 (As of Aug. 31, 2026) Assets Current assets Cash and deposits 7,765,946 8,634,858 Accounts receivable - trade and contract assets 2,835,099 2,972,000 Work in process 38,026 10,071 Raw materials 57,629 40,204 Other 216,664 214,363 Allowance for doubtful accounts (2,239) (2,118) Total current assets 10,911,126 11,869,379 Non-current assets Property, plant and equipment Buildings, net 218,201 355,513 Tools, furniture and fixtures, net 45,822 41,149 Land 613,061 613,061 Other 2,015 12,129 Total property, plant and equipment 879,100 1,021,854 Intangible assets Goodwill 99,103 73,379 Software 121 40 Other 1,807 1,807 Total intangible assets 101,032 75,227 Investments and other assets Investment securities 3,496 3,496 Deferred tax assets 536,015 575,649 Leasehold and guarantee deposits 337,449 318,325 Insurance funds 546,696 626,339 Other 13,532 87,043 Allowance for doubtful accounts (4,113) (4,113) Total investments and other assets 1,433,077 1,606,740 Total non-current assets 2,413,210 2,703,822 Total assets 13,324,336 14,573,202
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(Thousands of yen) FY8/25 (As of Aug. 31, 2025) FY8/26 (As of Aug. 31, 2026) Liabilities Current liabilities Accounts payable - trade 332,631 377,206 Current portion of long-term borrowings 27,798 — Accounts payable - other 1,484,676 1,357,483 Income taxes payable 543,327 741,866 Accrued consumption taxes 384,360 332,091 Provision for bonuses 1,157,787 1,214,762 Provision for loss on order received 1,539 — Other 350,961 278,567 Total current liabilities 4,283,083 4,301,977 Non-current liabilities Retirement benefit liability 79,720 66,368 Provision for share awards 55,525 47,058 Other 3,233 4,983 Total non-current liabilities 138,479 118,410 Total liabilities 4,421,562 4,420,388 Net assets Shareholders’ equity Share capital 312,433 323,356 Capital surplus 224,583 235,506 Retained earnings 8,912,336 10,387,197 Treasury shares (582,678) (828,371) Total shareholders’ equity 8,866,675 10,117,690 Accumulated other comprehensive income Remeasurements of defined benefit plans 4,027 6,283 Total accumulated other comprehensive income 4,027 6,283 Share acquisition rights 32,072 28,840 Total net assets 8,902,774 10,152,813 Total liabilities and net assets 13,324,336 14,573,202
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(2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income (Thousands of yen) FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Net sales 24,776,494 25,517,638 Cost of sales 18,320,293 18,576,269 Gross profit 6,456,200 6,941,369 SG&A expense 3,905,507 4,076,817 Operating profit 2,550,693 2,864,551 Non-operating income Interest and dividend income 9,384 20,369 Grant income — 2,902 Rental income from real estate 1,682 5,958 Surrender value of insurance policies 5,216 3,780 Subsidy income 32,798 25,324 Other 2,052 2,534 Total non-operating income 51,134 60,870 Non-operating expenses Interest expenses 425 121 Commission fee 2,358 1,186 Other 7 — Total non-operating expenses 2,791 1,308 Ordinary profit 2,599,037 2,924,113 Extraordinary income Gain on reversal of share acquisition rights 2,262 1,074 Gain on sale of non-current assets — 425 Gain on sale of investment securities — 31,999 Total extraordinary income 2,262 33,500 Extraordinary losses Loss on retirement of non-current assets 215 0 Total extraordinary losses 215 0 Profit before income taxes 2,601,084 2,957,613 Income taxes-current 895,789 1,143,741 Income taxes-deferred (4,394) (40,629) Total income taxes 891,395 1,103,112 Profit 1,709,688 1,854,501 Profit attributable to owners of parent 1,709,688 1,854,501
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Consolidated Statement of Comprehensive Income (Thousands of yen) FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Profit 1,709,688 1,854,501 Other comprehensive income Remeasurements of defined benefit plans, net of tax 1,552 2,256 Total other comprehensive income 1,552 2,256 Comprehensive income 1,711,241 1,856,758 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 1,711,241 1,856,758
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(3) Consolidated Statement of Changes in Equity FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 311,269 309,835 7,482,934 (374,518) 7,729,520 Changes during period Issuance of new shares 1,164 1,164 2,328 Dividends of surplus (175,727) (175,727) Profit attributable to owners of parent 1,709,688 1,709,688 Purchase of treasury shares (399,135) (399,135) Disposal of treasury shares 23,700 (23,700) — Cancellation of treasury shares (214,675) 214,675 — Transfer from retained earnings to capital surplus 104,558 (104,558) — Net changes in items other than shareholders’ equity Total changes during period 1,164 (85,252) 1,429,402 (208,160) 1,137,154 Balance at end of period 312,433 224,583 8,912,336 (582,678) 8,866,675 Accumulated other comprehensive income Share acquisition rights Total net assets Valuation difference on available-for-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period — 2,474 2,474 30,619 7,762,614 Changes during period Issuance of new shares (460) 1,868 Dividends of surplus (175,727) Profit attributable to owners of parent 1,709,688 Purchase of treasury shares (399,135) Disposal of treasury shares — Cancellation of treasury shares — Transfer from retained earnings to capital surplus — Net changes in items other than shareholders’ equity 1,552 1,552 1,912 3,465 Total changes during period 1,552 1,552 1,452 1,140,159 Balance at end of period — 4,027 4,027 32,072 8,902,774
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FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) (Thousands of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 312,433 224,583 8,912,336 (582,678) 8,866,675 Changes during period Issuance of new shares 10,923 10,923 21,846 Dividends of surplus (176,390) (176,390) Profit attributable to owners of parent 1,854,501 1,854,501 Purchase of treasury shares (448,942) (448,942) Disposal of treasury shares — Cancellation of treasury shares (203,250) 203,250 — Transfer from retained earnings to capital surplus 203,250 (203,250) — Net changes in items other than shareholders’ equity Total changes during period 10,923 10,923 1,474,861 (245,692) 1,251,015 Balance at end of period 323,356 235,506 10,387,197 (828,371) 10,117,690 Accumulated other comprehensive income Share acquisition rights Total net assets Valuation difference on available-for-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period — 4,027 4,027 32,072 8,902,774 Changes during period Issuance of new shares (2,157) 19,688 Dividends of surplus (176,390) Profit attributable to owners of parent 1,854,501 Purchase of treasury shares (448,942) Disposal of treasury shares — Cancellation of treasury shares — Transfer from retained earnings to capital surplus — Net changes in items other than shareholders’ equity 2,256 2,256 (1,074) 1,181 Total changes during period 2,256 2,256 (3,231) 1,250,039 Balance at end of period — 6,283 6,283 28,840 10,152,813
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(4) Consolidated Statement of Cash Flows (Thousands of yen) FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Cash flows from operating activities Profit before income taxes 2,601,084 2,957,613 Depreciation 53,040 62,683 Amortization of goodwill 25,723 25,723 Increase (decrease) in provision for share awards 55,525 (8,466) Increase (decrease) in allowance for doubtful accounts 4,496 (121) Increase (decrease) in provision for bonuses (57,313) 56,974 Increase (decrease) in retirement benefit liability (9,424) (10,099) Interest and dividend income (9,384) (20,369) Subsidy income (32,798) (25,324) Grant income — (2,902) Commission fee 2,358 1,186 Gain on reversal of share acquisition rights (2,262) (1,074) Interest expenses 425 121 Loss on retirement of non-current assets 215 0 Loss (gain) on sale of investment securities — (31,999) Decrease (increase) in trade receivables (98,324) (136,900) Decrease (increase) in inventories 170,497 45,378 Decrease (increase) in prepaid expenses (33,258) (7,646) Increase (decrease) in trade payables 70,267 44,574 Increase (decrease) in accounts payable - other 12,631 (125,468) Increase (decrease) in accrued consumption taxes (864) (52,268) Other 53,829 (70,374) Subtotal 2,806,465 2,716,532 Interest and dividends received 7,947 17,451 Interest paid (337) (102) Proceeds from subsidy income — 2,902 Subsidies received 32,798 25,324 Income taxes paid (793,427) (953,716) Net cash provided by (used in) operating activities 2,053,446 1,808,392 Cash flows from investing activities Payments into time deposits (4,011) (2,817) Proceeds from withdrawal of time deposits 2,800 101,521 Purchase of property, plant and equipment (551,831) (196,322) Payments of leasehold and guarantee deposits (17,701) (1,490) Proceeds from sale of property, plant and equipment — 782 Proceeds from refund of leasehold and guarantee deposits 1,404 10,348 Payments for long-term prepaid expenses — (74,800) Proceeds from sale of investment securities — 32,000 Purchase of insurance funds (81,413) (79,642) Other — 9,738 Net cash provided by (used in) investing activities (650,754) (200,680) Cash flows from financing activities Repayments of long-term borrowings (57,104) (27,798) Repayments of lease obligations (706) (2,300) Purchase of treasury shares (401,493) (450,128) Dividends paid (175,680) (176,322) Proceeds from issuance of shares resulting from exercise of share acquisition rights 1,868 19,688 Other (1,532) (3,233) Net cash provided by (used in) financing activities (634,647) (640,095) Net increase (decrease) in cash and cash equivalents 768,044 967,616 Cash and cash equivalents at beginning of period 6,844,087 7,612,132 Cash and cash equivalents at end of period 7,612,132 8,579,748
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(5) Notes to Consolidated Financial Statements Going Concern Assumption Not applicable. Changes in Accounting Policies
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Segment and Other Information Segment information 1. Overview of reportable segments Segments used for financial reporting are the Seraku Group’s constituent units for which separate financial information is available and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of resources and evaluating performance. 2. Calculation methods for net sales, profit/loss, assets, liabilities and other items for each reportable segment The accounting methods applied to the reported business segments are consistent with those adopted for the preparation of the consolidated financial statements. Segment profit is presented on an operating profit basis. 3. Information related to net sales, profit/loss, assets, liabilities and other items in reportable segments FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) (Thousands of yen) Reportable segment Adjustment (Note 1) Amount in the consolidated financial statements (Note 2) Digital Integration Midori Cloud Mechanical Design and Engineering Total Net sales Sales to external customers 23,881,016 235,062 660,416 24,776,494 — 24,776,494 Inter-segment sales and transfers — — 125,774 125,774 (125,774) — Total 23,881,016 235,062 786,190 24,902,269 (125,774) 24,776,494 Segment profit (loss) 2,611,933 (118,810) 37,018 2,530,140 20,553 2,550,693 Segment assets 2,892,463 63,089 344,634 3,300,187 10,024,148 13,324,336 Other items Amortization of goodwill 25,723 — — 25,723 — 25,723 Depreciation 52,046 654 339 53,040 — 53,040 Increase in property, plant and equipment, and intangible assets — — — — 677,144 677,144 Notes: 1. The adjustment to segment profit (loss) of 20,553 thousand yen represents the inter-segment transaction elimination. 2. Segment profit (loss) is adjusted with the operating profit shown on the consolidated statement of income. 3. The adjustment of 10,024,148 thousand yen to segment assets includes corporate assets that are not allocated to reportable segments. 4. Corporate assets are not allocated to specific reportable segments, but corporate costs and other expenses associated with these assets are allocated to specific reportable segments using reasonable standards. 5. The 677,144 thousand yen adjustment to increase in property, plant and equipment and intangible assets includes a purchase price of 613,061 thousand yen for the planned construction site of Vital Village (a training facility) in the Seisho area of Kanagawa Prefecture.
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FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) (Thousands of yen) Reportable segment Adjustment (Note 1) Amount in the consolidated financial statements (Note 2) Digital Integration Midori Cloud Mechanical Design and Engineering Total Net sales Sales to external customers 24,620,634 239,297 657,706 25,517,638 — 25,517,638 Inter-segment sales and transfers 604 — 142,185 142,789 (142,789) — Total 24,621,239 239,297 799,891 25,660,428 (142,789) 25,517,638 Segment profit (loss) 2,881,833 (95,921) 59,439 2,845,351 19,200 2,864,551 Segment assets 2,975,350 51,476 289,829 3,316,655 11,256,546 14,573,202 Other items Amortization of goodwill 25,723 — — 25,723 — 25,723 Depreciation 61,792 643 246 62,683 — 62,683 Increase in property, plant and equipment, and intangible assets — — — — 218,804 218,804 Notes: 1. The adjustment to segment profit (loss) of 19,200 thousand yen represents the inter-segment transaction elimination. 2. Segment profit (loss) is adjusted with the operating profit shown on the consolidated statement of income. 3. The adjustment of 11,256,546 thousand yen to segment assets includes corporate assets that are not allocated to reportable segments. 4. Corporate assets are not allocated to specific reportable segments, but corporate costs and other expenses associated with these assets are allocated to specific reportable segments using reasonable standards. 5. The 218,804 thousand yen adjustment to increase in property, plant and equipment and intangible assets includes renovation work of 183,252 thousand yen for a training facility Vital Village in the Seisho area of Kanagawa Prefecture.
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Related information FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) 1. Information for each product and service Information for each product and service is omitted as similar information is disclosed in the segment information. 2. Information for each region (1) Net sales Information about net sales is omitted as sales to external customers in Japan exceed 90% of the net sales on the consolidated statement of income. (2) Property, plant and equipment Not applicable as we have no property, plant and equipment outside of Japan. 3. Information for each major customer Not applicable because, of sales to external customers, we have no customer who accounts for over 10% of the net sales on the consolidated statement of income. FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) 1. Information for each product and service Information for each product and service is omitted as similar information is disclosed in the segment information. 2. Information for each region (1) Net sales Information about net sales is omitted as sales to external customers in Japan exceed 90% of the net sales on the consolidated statement of income. (2) Property, plant and equipment Not applicable as we have no property, plant and equipment outside of Japan. 3. Information for each major customer Not applicable because, of sales to external customers, we have no customer who accounts for over 10% of the net sales on the consolidated statement of income.
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Information about impairment losses on non-current assets by reportable segment FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) Not applicable. FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Not applicable. Information concerning amortization and unamortized balance of goodwill by reportable segment FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) (Thousands of yen) Reportable segment Adjustment Amount in the consolidated financial statements Digital Integration Midori Cloud Mechanical Design and Engineering Total Amortization during period 25,723 — — 25,723 — 25,723 Balance at end of period 99,103 — — 99,103 — 99,103 FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) (Thousands of yen) Reportable segment Adjustment Amount in the consolidated financial statements Digital Integration Midori Cloud Mechanical Design and Engineering Total Amortization during period 25,723 — — 25,723 — 25,723 Balance at end of period 73,379 — — 73,379 — 73,379 Information concerning gain on bargain purchase by reportable segment FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) Not applicable. FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Not applicable.
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Per Share Information FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Net assets per share 668.83 yen 781.56 yen Net income per share 127.16 yen 140.46 yen Diluted net income per share 126.89 yen 140.31 yen Notes: 1. The basis of calculating the net income per share and diluted net income per share is as follows: FY8/25 (Sep. 1, 2024 – Aug. 31, 2025) FY8/26 (Sep. 1, 2025 – Aug. 31, 2026) Net income per share Profit attributable to owners of parent (Thousands of yen) 1,709,688 1,854,501 Amounts not attributable to common shareholders (Thousands of yen) — — Profit attributable to owners of parent applicable to common shares (Thousands of yen) 1,709,688 1,854,501 Average number of common shares outstanding during the period (Shares) 13,445,150 13,203,252 Diluted net income per share Adjustment to profit attributable to owners of parent (Thousands of yen) — — Increase in the number of common shares (Shares) 28,086 13,944 [of which share acquisition rights (Shares)] (28,086) (13,944) Summary of potential stock not included in the calculation of diluted net income per share since there was no dilutive effect Five types of share acquisition rights (Number of share acquisition rights: 3,775) Five types of share acquisition rights (Number of share acquisition rights: 3,607) 2. Following the introduction of the Japanese Employee Stock Ownership Plan (J-ESOP) in the 38th fiscal year, the Group’s shares held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets are treated as treasury shares. Accordingly, they are included in “Number of treasury shares as of the end of the period” (common shares) and the number of treasury shares that are to be subtracted when calculating “Average number of shares during the period” (common shares), so as to calculate net assets per share and net income (loss) per share. Material Subsequent Events
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4. Additional Information Sales Results (Thousands of yen) - Previous fiscal year Fiscal year under review Year-on- year change (%) Net sales Ratio to net sales (%) Net sales Ratio to net sales (%) System Integration 16,382,120 66.1 16,894,590 66.2 3.1 Digital Transformation 7,498,895 30.3 7,726,043 30.3 3.0 Midori Cloud 235,062 0.9 239,297 0.9 1.8 Mechanical Design and Engineering 660,416 2.7 657,706 2.6 (0.4) Total 24,776,494 100.0 25,517,638 100.0 3.0