Slides
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Supplement to Financial Results for the Third Quarter of the Fiscal year Ending February 28, 2026 January 14, 2026
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Business Environment Surrounding the Company and Our Vision • As social issues become more complex and diverse, there is a wide variety of management issues that must be addressed for companies to realize sustainable growth. In particular, due to the progress of many innovations through digital technologies, the need for corporate transformation is increasing. • In this environment, under the backdrop of a lack of expertise and human resources, etc., the need for a comprehensive consulting firm with capability of providing strategic and comprehensive solutions, is increasing for major companies in each industry. • By leveraging digital technology to develop management strategies and demonstrating high execution capability , we have addressed a wide range of management challenges across various industries and built a strong track record as one of the largest consulting firms in Japan. • We will continue to strive to be a comprehensive partner for major companies across various industries in solving management challenges , while enhancing the value-added services and expanding our capabilities. 1 Wide variety of management issues Digital transformation AI / Gen AI Modernization Security Productivity improvement Change management Sustainability GX Corporate Value Enhancement M&A Entering new business Strategic alliance R&D Lack of expertise and human resources Government policy trends Changes in financial markets Geopolitical risks SDGs and ESG Changes in various regulations Digitalization Borderless industries Supply chain optimization Business portfolio optimization Corporate finance
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FY2026 Q3 Cumulative Performance 2 Q3 Cumulative Revenue (Actual) Q3 Cumulative EBITDA (Actual) 105,936 million yen (YoY: +26.8%) 35,909 million yen (YoY: +22.1%) (EBITDA margin: 33.9%) Full-year Revenue (Forecast) Full-year EBITDA (Forecast) 143,000 million yen (YoY: +23.2%) 52,000 million yen (YoY: +19.6%) (EBITDA margin: 36.4%)
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FY2026 Q3 Financial Highlights (1/2) Q3 Cumulative Performance • Cumulative revenue through Q3 largely aligned with the guidance, and the progress towards full-year target was at the same level as previous years. ( → See P.5) • Even with active recruitment, enhanced talent cult ivation, and the strengthening of our sales structure; total costs (cost of sales and SG&A) were largely in line with plan. Additionally, there were no unexpected or one-time major expenses. As a result, EBITDA largely met the guidance, and the EBITDA margin was within the planned range (30-40%). *Expenses related to the “Baycurrent Classic Presented by LEXUS” held in Q3 were incurred as originally planned. Status of KPIs • Number of consultants: Due to reallocation of consultants implemented in the first half of the year to strengthen the organization, the number of consultants saw gradual increase than in previous years. Meanwhile, efforts in active recruitment and enhanced talent cultivation has led to steady progress in ramping up our workforce. (FY2025 Q3 4,669 → FY2026 Q3 5,306, YoY +13.6% *includes new graduates) • Number of projects: Consulting services saw continued strong demand, mainly driven by digital transformation and generative AI. The number of projects increased largely in line with the full-year plan (YoY +20.3%). (* The utilization rate has been in the mid 80% range, falling within the expected range. (80-90%)) • Revenue per consultant: Revenue per consultant has been approximately 3% above our plan. * : For details, see “FY2026 Q3 Financial Result FAQ.” Q3 cumulative performance largely met the guidance. (Revenue largely met the guidance, and the EBITDA margin was within the target range) 3
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FY2026 Q3 Financial Highlights (2/2) Full-year Outlook • Demand for consulting services is expected to cont inue, and we do not anticipate any major changes in the business structure. While reflecting usual seasonality trends, full-year revenue is expected to come largely in line with the plan. ( → See P.6) • No unexpected large expenses are anticipated, and the EBITDA margin is expected to come largely in line with the plan. Outlook for the Next Fiscal Year • No major changes in the external environment or bu siness structure are anticipated, and since the foundation is being laid for performance growth in the next fiscal year, we will continue to aim for revenue growth in line with the Medium-Term Business Plan*2 . * : For details, see “FY2026 Q3 Financial Result FAQ” *2 : Details of the “Medium-Term Business Plan” have been reposted on P.12 and 13. The full-year performance is expected to be largely in line with the guidance. Since the foundation is being laid for performance growth in the next fiscal year, we will continue to aim for revenue growth based on the Medium-Term Business Plan *2 . 4
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Reference) Quarterly Progress Towards Performance Target Cumulative revenue through Q3 progressed at the same level as previous years and was generally in accordance with the guidance. Revenue (Million yen) 116,056 93,909 76,090 143,000 (Target) 5 23.0% 23.1% 23.5% 24.0% 23.0% 23.4% 23.1% 23.8% 26.2% 25.6% 25.4% 26.2% 27.8% 27.9% 28.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY2023 FY2024 FY2025 FY2026 Q1 Q2 Q3 Q4 74.0% 72.0% 72.1% 72.2% *：For FY2023, FY2024, and FY2025, the figure represents progress ratio against full-year actual revenue, while for FY2026, the figure represents the progress ratio against the full-year revenue target.
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Reference) Outlook for Q4 Quarterly Revenue Trend and Forecast (Million yen) Quarterly EBITDA Trend and Forecast (Million Yen) Our business model has enabled our company to grow consistently every quarter. However, due to seasonality and the impact of recruitment/training costs, revenue and EBITDA tend to increase towards the second half of the year. We expect the same trend to continue in the current fiscal year. ( → See P.7) 6 27,297 26,797 29,431 32,531 34,307 34,155 37,474 FY25 Q1 Q2 Q3 Q4 FY26 Q1 Q2 Q3 Q4 9,671 8,935 10,812 14,071 12,455 11,299 12,155 FY25 Q1 Q2 Q3 Q4 FY26 Q1 Q2 Q3 Q4
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Reference) Quarterly Performance Trends for the Past 3 Fiscal Years 6,567 6,134 8,479 8,983 8,115 7,729 9,133 10,335 9,671 8,935 10,812 14,071 17,507 17,488 19,932 21,163 21,718 22,008 23,991 26,192 27,297 26,797 29,431 32,531 FY23 Q1 Q2 Q3 Q4 FY24 Q1 Q2 Q3 Q4 FY25 Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q1 Q2 Q3 Q4 FY25 Q1 Q2 Q3 Q4 Revenue Trend for Past 3 Fiscal Year (Million Yen) EBITDA Trend for Past 3 Fiscal Year (Million Yen) FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 7 Repost
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Revenue (Million yen) Reference) Outlook for the Next Fiscal Year We do not anticipate major changes in the external environment and business structure. Since the foundation is being laid for performance growth in the next fiscal year, we will continue to aim for performance growth based on the Medium-Term Business Plan *2 . 8 Assumptions of the Outlook for the Next Fiscal Year Image of Next Fiscal Year’s Performance External Environment Continued strong demand for consulting services • Lack of expertise and human resources • Advancement of DX/digital technologies including generative AI Continued active hiring and cultivation • Strengthening of recruitment system • Improvement of a cultivating environment Number of Consultants EBITDA/ EBITDA Margin Maintain EBITDA margin at 30-40% (around 35%) • No change in cost structure • No large projects scheduled for termination • Maintain the utilization rate at 80-90% (around 85 %) Growth based on the Medium-Term Business Plan *2 • Enhancement of sales structure • Increase in the number of core clients and expansion of transactions with existing core clients Revenue * : The official performance forecast is scheduled to be disclosed in April 2026. *2 : Details of the “Medium-Term Business Plan” have been reposted on P.12 and 13. FY2025 FY2026 (Forecast) FY2027 FY2025 FY2026 (Forecast) FY2027 116,056 143,000 43,489 52,000 EBITDA (Million yen)
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FY2026 Shareholder Return Policy and Capital Policy We regard the stable return of profit to shareholders as an important management agenda and aim for a dividend payout ratio of 40% as a guideline under IFRS. Taking capital efficiency into consideration, any surplus cash generated each fiscal year will be returned to shareholders primarily through treasury share purchases. Shareholder return policy for FY2026 • An interim dividend of 50 yen per share as initially planned • Year-end dividend planned to be 50 yen per share (Full year total of 100 yen per share) Shareholder Return Policy We have set the annual cash level at approximately 40% of forecasted revenue during the current Medium-Term Business Plan in order to ensure continuous and stable business operations and support flexible investments for future growth. - Business operations : approx. 25% (working capital on hand equivalent to about three months of forecasted revenue) - Future growth : approx. 15% (including personnel investments, capital expenditures such as office expansion, and strategic investments to strengthen and expand existing businesses) In consideration of capital efficiency, any annual surplus cash will be returned to shareholders primarily through treasury share purchases. *These treasury share purchases will be implemented during the relevant fiscal year or around the time of fiscal year-end financial disclosure, based on earnings forecasts and year-end financial projections. Capital Policy 9
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Appendix.
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FY2026 Performance Forecast Revenue Operating Profit (Operating Profit Ratio) EBITDA (EBITDA Margin) Profit (Profit Ratio) EPS 116,056 million yen 42,615 million yen 43,489 million yen 30,760 million yen 202.16 yen +23.2 ％ +19.7 ％ +19.6 ％ +21.3 ％ +21.5 ％ 143,000 million yen 51,000 million yen (35.7 ％) 52,000 million yen (36.4 ％) 37,300 million yen (26.1 ％) 245.68 yen FY2025 Results FY2026 Forecast Change (%) 11 Repost
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New Medium-Term Business Plan (Five Years) 12 35,312 0 100,000 200,000 300,000 400,000 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 93,909 250,000 CAGR Approx. 20% Revenue EBITDA (Million yen) Maintain continuous growth, aiming for revenue of 250 billion yen in 5 years from now. Maintain EBITDA margin of 30-40%. We expect that demand for consulting service will remain firm for the coming 5 years, and we consider a CAGR of around 20% to be the planned level for our continuous and stable growth. Repost
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Growth Strategy 13 Implement core client strategy Recruit and cultivate talented human resources Enhance capabilities Increase the number of core clients and expand transactions with core clients. • Actively implement PR activities while building up track record in projects related to the provision of value to senior management and important management issues to further strengthen relationships with senior management • Continue to strengthen sales structure aiming to s trengthen relationships onsite Strengthen services that provide multi-faceted solutions to problems faced by core clients. • Incorporate various research findings into consult ing services • Strengthen DX/IT implementation area (Establish technology subsidiary.) - Enhance support for the implementation of DX/IT in areas surrounding consulting services such as DX where we have built up a track record during the period of the Medium-term Business Plan Leverage the customer base and base for recruiting and cultivating human resources we have established to date to drive business activities Continue to strengthen recruitment of talent and cultivation of human resources in the medium and long term. • Strengthen structures and measures to further impr ove recruitment capability • Enhance training programs on cutting-edge themes a nd technologies Accelerate the initiatives that produced results over the three-year period of the previous Medium-term Business Plan (FY2022- FY2026), aiming to be a comprehensive partner that solves the management issues of leading companies. Repost
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Progress of the Medium-Term Business Plan Progression of Core Client Strategy • Amid strong demand for consulting services, center ed on digital transformation and generative AI, we are advancing our core client strategy. Demand remains strong in the finance and communications/high tech/media industries with an increasing trend for support for the mobility and energy industries. In the first half, we increased the number of core clients and steadily expanded transactions with existing clients. • Aiming to be a comprehensive partner that solves t he management issues of our clients, we expanded the sales structure to strengthen relationships with both clients’ top management and on-site teams. Active Recruitment and Enhanced Talent Cultivation • There were no significant changes in the recruitme nt environment surrounding the Company. While consulting firms continued to actively hire personnel, we strengthened our recruitment structure, resulting in a large number of new graduates and mid-career employees joining the Company during the first half. • Newly hired employees are ramping up their capabil ities and the number of consultants steadily increased in line with the full-year plan. • We also increased the number of professionals with expertise in advanced technologies such as generative AI and with knowledge of industries with high demand for consulting services, such as automotive and energy. Expansion of Capabilities • We are expanding our capabilities by incorporating into our consulting services insights gained through various research activities, primarily related to digital transformation and generative AI, as well as knowledge gained by supporting leading companies. * Details of the “Medium-Term Business Plan” have been reposted on pages. 12 and 13. In line with the Medium-Term Business Plan (*) announced in April 2024, we promoted the following initiatives in the first half. We have steadily progressed each initiative in line with the five-year Medium-Term Business Plan. 14 Repost
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Image of Trends in Number of Consultants and Number of Projects Number of consultants Number of actual projects Utilization rate 90% 80% 85% Reference) Assumptions of the Medium-Term Business Plan (Number of Consultants and Number of Projects) By continuously investing in active recruitment and talent cultivation each year, we aim to increase the number of consultants while at the same time strengthening our sales structure to grow the number of projects, targeting higher revenue (CAGR: approx. 20%). In addition, by maintaining the utilization rate within the expected range (80-90%), we aim to maintain an EBITDA margin of 30-40%. • A key driver of business growth. • By continuously strengthening our recruitment and talent cultivation system, we plan to increase the number of consultants each year in line with the Medium-Term Business Plan. Number of Consultants • By continuously strengthening the sales structure to progress our core client strategy, we plan to increase the number of projects each year in line with the Medium-Term Business Plan. • The number of projects tends to increase towards t he second half of each year due to seasonality. Number of Projects 15 (CAGR: Approx. 20%) • Mainly due to seasonality, gaps between the number of consultants and the number of projects occur on a quarterly basis, but short-term volatility is not a concern. • The assumed utilization range is 80-90% (Full-year average: generally around 85%) Utilization Rate Repost
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Disclaimer 16 In addition to statements regarding the business of Baycurrent, Inc. (hereinafter, “Baycurrent”) and industry trends, these materials include forward looking statements on the future outlook based on current plans, estimates, forecasts and predictions. These forward looking statements carry a range of risks and uncertainties. Outcomes may differ from those stated here due to known or unknown risks, uncertainties, or other factors. Baycurrent cannot warrant these representations and predictions concerning the future outlook. Actual results may differ considerably from the future outlook presented here. Forward looking statements made in these materials were made by Baycurrent based on information available at the time this document was produced. They are not meant to update or amend any other statements or descriptions of the future outlook to reflect predicted future events and circumstances. These materials were not produced for the purpose of soliciting investment. Please refrain from making actual investment decisions based solely on these materials. Please refrain from reprinting or reusing all or part of these materials for any purpose without permission.