Interim report
Page 1
Consolidated Financial Results for the Three-month Period Ended June 30, 2026 (Japanese accounting standards) Released: July 30, 2026 Name of listed firm: Nojima Corporation Listed on the Tokyo Stock Exchange Code No.: 7419 URL: https://www.nojima.co.jp Representative: Hiroshi Nojima, President & Representative Executive Officer Tel.: +81-50-3116-6500 Contact: Hiroaki Hatano, Managing Executive Officer/General Manager, Finance and Accounting Division Scheduled start date of dividend payments: - Supplemental materials on quarterly financial results: No Briefing session on quarterly financial results for analysts: No (Amounts are rounded down to the nearest million yen.) 1. Consolidated financial results for the three-month period ended June 30, 2026 (April 1, 2026 - June 30, 2026) (1) Consolidated results of operations (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income EBITDA Net income attributable to shareholders of the parent company Million yen % Million yen % Million yen % Million yen % Million yen % Three-month period ended June 30, 2026 242,078 6.1 13,782 -6.2 29,912 84.0 36,230 61.6 20,515 100.0 Three-month period ended June 30, 2025 228,170 20.7 14,695 88.9 16,253 88.2 22,425 45.5 10,255 83.3 Note: Comprehensive income: Three-month period ended June 30, 2026: 13,207million yen (9.5%) Three-month period ended June 30, 2025: 12,065million yen (84.5%) For detailed information, including definitions and methods used to calculate indicators, see p. 2, “1. Qualitative Information on Quarterly Consolidated Financial Performance: (1) Explanation of operating results.” Net income per share Diluted net income per share Yen Yen Three-month period ended June 30, 2026 70.78 66.15 Three-month period ended June 30, 2025 35.72 33.43 Note: The Company conducted a stock split at a ratio of 3 shares for every 1 common share with an effective date of October 11, 2025. Net income per share and diluted net income per share are calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. Note: Provisional accounting treatments for business combinations were finalized in the second quarter of the fiscal year ended March 2026. Consequently, figures for the first quarter have been retroactively adjusted to reflect these finalized treatments. (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of June 30, 2026 589,135 260,107 43.0 871.38 As of March 31, 2026 594,478 249,043 40.8 837.92 Reference: Equity: As of June 30, 2026: 253,411million yen As of March 31, 2026: 242,491million yen 2. Dividends Note: Revisions to the most recently announced dividend forecast: No Note: The Company carried out a stock split of common stock at a ratio of three shares for every one share, effective October 11, 2025. For the end of the second quarter of the fiscal year ended March 31, 2026, the actual amount of dividend before the said stock split is stated. The year-end dividend for the fiscal year ended March 31, 2026 is stated taking into account the said stock split, and the total annual dividend is stated as “—”. Dividends per share End of Q1 End of Q2 End of Q3 Year-end Total Yen Yen Yen Yen Yen FY ended March 2026 － 23.00 － 10.00 － FY ending March 2027 － FY ending March 2027 (planned) 10.00 － 10.00 20.00
Page 2
3. Forecasts of consolidated financial results for the fiscal year ending March 2027 (April 1, 2026 - March 31, 2027) (Percentages indicate changes from the previous year for full-year forecasts and changes from the same quarter of the previous fiscal year for quarterly forecasts) Net sales Operating income Ordinary income EBITDA Net income attributable to shareholders of the parent company Net income per share Million yen % Million yen % Million yen % Million yen % Million yen % Yen Q2 (Cumulative) 490,000 5.9 28,000 1.2 44,000 43.7 51,000 19.8 27,000 39.0 92.84 Full-year 1,030,000 4.8 59,000 1.6 76,000 22.0 97,000 12.0 48,000 23.3 165.05 Note: Revisions to the most recently announced consolidated earnings forecast: Yes * Notes (1) Significant changes in subsidiaries during this period (changes in designated subsidiaries resulting in changes in the scope of consolidation): No Added: ___ company(ies) (name(s): ____________) Removed: ___ company(ies) (name(s): ____________) (2) Application of special accounting methods in the preparation of the quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements i. Changes in accounting policies due to revisions in accounting standards and other regulations: No ii. Changes in accounting policies for reasons other than i.: No iii. Changes in accounting estimates: No iv. Restatement of prior period financial statements: No (4) Number of shares issued and outstanding (common stock) i. Number of shares issued and outstanding at the end of the period (including treasury stock) As of June 30, 2026 307,737,696shares As of March 2026 307,737,696shares ii. Number of shares of treasury stock at the end of the period As of June 30, 2026 16,922,625shares As of March 2026 18,339,725shares iii. Average number of shares during the period Three-month period ended June 30, 2026 289,839,068shares Three-month period ended June 30, 2025 287,119,511shares Note: The Company carried out a stock split of common stock at a ratio of three shares for every one share, effective October 11, 2025. The "Number of shares issued and outstanding at the end of the period," "Number of shares of treasury stock at the end of the period," and "Average number of shares during the period" are calculated assuming that the stock split was conducted at the beginning of the previous consolidated fiscal year. The number of treasury stock at the end of the period includes the Company's shares held by the Employee Stock Ownership Plan (ESOP) trust (2,023,400 shares as of June 30, 2026, and 2,438,200 shares as of March 31, 2026). In addition, the Company's shares held by the ESOP trust are included in the treasury stock to be deducted in the calculation of the average number of shares during the period (2,259,996 shares for the three-month period ended June 30, 2026, and 3,812,238 shares for the three-month period ended June 30, 2025). * Financial statements are not subject to audits by certified public accountants or auditing firms * Explanation concerning the appropriate use of forecasts of business performance and other notes Note on forward-looking statements: Forecasts of business performance and other forward-looking statements in this release are based on information currently available and certain assumptions the Company deems reasonable at the time of preparation. They do not constitute a guarantee of future results. Actual results may differ materially from those of any forward-looking statements for various reasons.
Page 3
1 Contents of attached documents 1. Qualitative Information on Quarterly Consolidated Financial Performance......................................................................... 2 (1) Explanation of operating results ...................................................................................................................................... 2 (2) Explanation of financial position .................................................................................................................................... 4 (3) Explanation Regarding Forward-Looking Information Such as Consolidated Earnings Forecasts ................................. 4 2. Quarterly Consolidated Financial Statements and Main Notes ............................................................................................ 5 (1) Consolidated balance sheet ............................................................................................................................................. 5 (2) Consolidated income statement and consolidated statement of comprehensive income ................................................. 7 Consolidated income statement (For the three-month period) ............................................................................................................................................ 7 Consolidated statement of comprehensive income (For the three-month period) ............................................................................................................................................ 8 (3) Notes on consolidated financial statements ..................................................................................................................... 9 (Notes on going concern assumption) .............................................................................................................................. 9 (Significant changes in shareholders’ equity) ................................................................................................................... 9 (Segment information, etc.) ............................................................................................................................................. 9 (Notes on the cash flow statement) .................................................................................................................................. 10 (Important subsequent events) .......................................................................................................................................... 11
Page 4
2 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of operating results During the first quarter of the consolidated cumulative period, the Japanese economy continued to show a moderate recovery trend, with corporate profits and capital investment progressing steadily. On the other hand, personal consumption lacked strength against the backdrop of the impact of past price increases and future anxiety. Furthermore, continued attention must be paid to the risk of an economic downturn due to the impact of U.S. trade policies, fluctuations in resource prices accompanying the situation in the Middle East, and other factors. Under these circumstances, Nojima Team (*1) has aimed to contribute to society through digital products and services, and each business has demonstrated synergy to conduct "consulting-based sales" tailored to the customer's perspective. Regarding Nojima Team's business performance, for the first quarter of the consolidated cumulative period, net sales were 242,078 million yen (106.1% compared to the same quarter in the previous year), operating income was 13,782 million yen (93.8% compared to the same quarter in the previous year), ordinary income was 29,912 million yen (184.0% compared to the same quarter in the previous year), and net income attributable to shareholders of the parent company was 20,515 million yen (200.0% compared to the same quarter in the previous year). Net sales reached a record high. Ordinary income and net income attributable to shareholders of the parent company also reached record highs, excluding investment gains from the equity method applied to Suruga Bank Ltd. and others in the fiscal year ended March 2021. Additionally, EBITDA (*2), which our team regards as a key management indicator, was 36,230 million yen (161.6% compared to the same quarter in the previous year), marking a record high as well. *(1) Nojima companies are referred to as "Nojima Team" based on the idea that they are a team that shares the common goal of "contributing to society and delighting customers" and demonstrating each other's strengths beyond organizational boundaries to develop together. *(2) EBITDA = Ordinary income + Interest expenses + Interest on bonds + Depreciation + Amortization of goodwill - Gain or loss on equity method investment. The situation for each segment is as follows. Additionally, to reflect the characteristics of Nojima Team's performance evaluation, the reporting segments are presented in descending order of segment income. (Operation of digital home electronics retail stores) Regarding sales trends in the home electronics retail industry, seasonal appliances such as air conditioners grew significantly due to factors such as increased demand in anticipation of stricter energy-saving regulations, and white goods such as refrigerators and washing machines also recovered, resulting in the industry as a whole outperforming the previous year. Under these circumstances, we continued "consulting-based sales" tailored to customer needs, and promoted "frontline- driven" initiatives where frontline employees closest to the customers shape their own ideas. As a result of rolling out unique promotions and sales tailored to regional characteristics, sales of air conditioners, TVs, and washing machines in particular grew, progressing steadily and exceeding market growth. As a result, net sales were 90,336 million yen (117.5% compared to the same quarter in the previous year), and ordinary income was 6,117 million yen (97.7% compared to the same quarter in the previous year), with net sales reaching a record high. (Operation of mobile carrier stores) In the carrier shop industry, companies actively moved to expand their customer bases. For our company, while experiencing a reactionary decline from the special demand associated with the termination of 3G services, we strove to expand contact points with customers by holding in-store events and providing new services. At the same time, we are promoting operational improvements and enhancements in customer service quality through frontline-initiated DX measures, and we are striving to provide high-value-added customer experiences (CX) by undertaking store relocations and renovations with a view to expanding contact points. As a result, net sales were 91,589 million yen (100.6% compared to the same quarter in the previous year), and ordinary income was 5,664 million yen (93.7% compared to the same quarter in the previous year), with net sales reaching a record high.
Page 5
3 (Product business) In the Product business, we maintained a stable supply system despite ongoing market conditions such as soaring market prices for components such as memory and some supply shortages. In addition, we released the "V AIO® SX14-R" for individual customers and the "V AIO® Pro PK-R" for corporate customers, which are V AIO's first Copilot+ PC compatible products, expanding our product lineup for the AI PC market. Furthermore, we aimed to improve the purchasing experience by introducing the "V AIO Meister System" at all Nojima stores, and we started a designated price system for individual customers. By providing products at appropriate prices that reflect their value and realizing uniform prices independent of sales channels, we created an environment where customers can choose products with peace of mind. As a result, net sales were 16,343 million yen (102.9% compared to the same quarter in the previous year), and ordinary income was 1,523 million yen (125.3% compared to the same quarter in the previous year). Net sales and ordinary income reached record highs. (Internet business) Nifty worked to strengthen collaboration with Nojima Team and expand its own sales channels, which led to an increase in broadband members; however, due to an increase in related expenses, profit for the current period fell below the previous year's level. Moving forward, we will continue to promote initiatives to be chosen by and satisfy our customers, without compromising the quality of services and support they use. Meanwhile, Cecile is promoting "product creation that stays close to customers". By sharing examples of improvements based on customer feedback, we demonstrate our corporate stance of facing customers sincerely, and we will continue to aim to be a more accessible and trusted brand. As a result, net sales were 19,064 million yen (103.6% compared to the same quarter in the previous year), and ordinary income was 993 million yen (54.5% compared to the same quarter in the previous year). (Media business) In the Media business, AXN Inc. transitioned to a holding company structure, establishing a system that enables rapid decision-making and flexible business operations by increasing the independence of operating companies. AXN Entertainment Inc. integrated the programming and production departments of three channels in its paid satellite broadcasting business, promoting qualitative improvement and efficiency in content procurement. Animax Broadcast Japan Inc. strove to expand recognition in the Teenieping business by launching terrestrial broadcasting and holding collaboration events. Centered on the broadcasting business, we will continue to take on new challenges such as the event and content businesses, and strive to grow as an anime entertainment company. In the advertising industry, while the TV advertising market remained flat and the external environment underwent significant changes such as a shift toward programmatic advertising and the use of generative AI, Street Corporation focused on maximizing synergy through organizational integration and promoting digital transformation (DX). As a result, net sales were 5,583 million yen (92.4% compared to the same quarter in the previous year), and ordinary income was 493 million yen (187.8% compared to the same quarter in the previous year). (Overseas business) In Singapore, sales of air conditioners, refrigerators, and other products fell below the same period of the previous year due to a reactionary decline following the government's energy-saving product replacement campaign implemented in the previous fiscal year. On the other hand, demand for products with energy-saving performance and high value-added ranges progressed steadily. In Malaysia, while the expansion of the scope of the Service and Sales Tax (SST) and rising energy prices acted as a headwind against personal consumption, sales of small home electronics remained firm against the backdrop of a trend emphasizing cost performance. Furthermore, we will continue to promote the review of our store network in response to changes in the market environment and pursue improved convenience and service quality for each customer in each region. As a result, net sales were 21,286 million yen (106.6% compared to the same quarter in the previous year), and ordinary loss was 15 million yen (compared to an ordinary income of 8 million yen in the same quarter of the previous year). Net sales reached a record high.
Page 6
4 (Stores in operation) In the operation of digital home electronics retail stores, through scrap-and-build, we opened 4 new stores and closed 1 store, bringing the total to 244 stores. In the operation of mobile carrier stores, including both directly operated stores and franchise stores, through scrap-and- build, we opened or acquired 8 stores and closed 1 store, bringing the total to 944 stores. In the overseas business, through scrap-and-build, we opened 1 new store and closed 4 stores, bringing the total to 112 stores. As a result, the number of stores at the end of the first quarter of the current consolidated fiscal year is as follows. Stores in operation Classification Directly operated stores Franchises Total Operation of digital home electronics retail stores 244 － 244 Operation of mobile carrier stores 661 283 944 Carrier stores 622 280 902 Others 39 3 42 Overseas business 112 － 112 Total 1,017 283 1,300 (2) Explanation of financial position (Assets) Total assets as of the end of the first quarter of the current consolidated fiscal year decreased by 5,342 million yen from the end of the previous consolidated fiscal year to 589,135 million yen. The main breakdown shows a decrease of 16,161 million yen in current assets to 352,359 million yen, and an increase of 10,818 million yen in non-current assets to 236,776 million yen. The primary factors behind the decrease in current assets were decreases in accounts receivable of 26,716 million yen and cash and deposits of 8,943 million yen, among other factors, despite increases in merchandise and products of 14,276 million yen and raw materials and supplies of 3,522 million yen. The main contributors to the increase in non-current assets were increases in buildings and structures of 24,298 million yen, land of 15,135 million yen, and deferred tax assets of 3,368 million yen, despite decreases in investment securities of 30,355 million yen and contractual intangible assets of 1,345 million yen. (Liabilities) Total liabilities as of the end of the first quarter of the current consolidated fiscal year decreased by 16,406 million yen from the end of the previous consolidated fiscal year to 329,028 million yen. The main breakdown shows a decrease of 11,566 million yen in current liabilities to 227,092 million yen, and a decrease of 4,839 million yen in non-current liabilities to 101,936 million yen. The primary factors behind the decrease in current liabilities were decreases in notes and accounts payable-trade of 11,940 million yen, accrued income taxes of 6,560 million yen, and accounts payable-other of 3,081 million yen, etc., even with an increase in short-term loans payable of 8,980 million yen. The primary factors behind the decrease in non-current liabilities were a decrease in long-term loans payable of 6,866 million yen, etc., despite increases in contract liabilities of 796 million yen, lease obligations of 754 million yen, and retirement benefit liabilities of 191 million yen. (Net Assets) Total net assets as of the end of the first quarter of the current consolidated fiscal year increased by 11,063 million yen from the end of the previous consolidated fiscal year to 260,107 million yen, primarily due to an increase in retained earnings of 17,596 million yen, among other factors, despite a decrease in valuation difference on available-for-sale securities of 7,688 million yen. As a result, the equity ratio improved by 2.2 points compared to the end of the previous consolidated fiscal year, reaching 43.0%. (3) Explanation Regarding Forward-Looking Information Such as Consolidated Earnings Forecasts The consolidated financial forecasts for the six months ending September 30, 2026 and the fiscal year ending March 31, 2027, as announced in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2026" dated May 7, 2026, have been revised.For further details, please refer to the "Revisions of consolidated financial forecasts for the six months ending September 30,2026 and the fiscal year ending March 31,2027," released today (July 30, 2026).
Page 7
5 2. Quarterly consolidated financial statements and main notes (1) Consolidated balance sheet (Million yen) Previous fiscal year (as of March 31, 2026) First quarter of the current fiscal year (as of June 30, 2026) Assets Current assets Cash and deposits 96,300 87,357 Accounts receivable 141,494 114,778 Merchandise and products 79,153 93,429 Raw materials and supplies 8,447 11,970 Programing rights 2,297 2,076 Accounts receivable-other 34,435 32,283 Other 7,728 11,735 Allowance for doubtful accounts -1,338 -1,271 Total current assets 368,520 352,359 Non-current assets Tangible non-current assets Buildings and structures (net) 20,830 45,128 Machinery, equipment and vehicles (net) 801 793 Tools, fixtures, and facilities (net) 5,184 5,378 Lease assets (net) 12,719 13,947 Land 16,639 31,774 Other (net) 2,961 2,807 Total tangible non-current assets 59,135 99,829 Intangible assets Goodwill 37,167 35,964 Software 4,345 4,634 Trademark 5,807 5,731 Contractual intangible assets 37,640 36,294 Customer-related intangible assets 13,368 13,106 Other 88 84 Total intangible assets 98,417 95,816 Investments and other assets Investment securities 38,304 7,949 Deferred tax assets 7,234 10,603 Lease and guarantee deposits 20,380 20,060 Retirement benefit assets 281 290 Other 2,921 2,944 Allowance for doubtful accounts -718 -718 Total investments and other assets 68,405 41,130 Total non-current assets 225,957 236,776 Total assets 594,478 589,135
Page 8
6 (Million yen) Previous fiscal year (as of March 31, 2026) First quarter of the current fiscal year (as of June 30, 2026) Liabilities Current liabilities Notes and accounts payable-trade 112,552 100,611 Electronically recorded obligations-operating 732 2,235 Short-term loans payable 5,916 14,896 Current portion of long-term loans payable 14,756 14,234 Accounts payable-other 25,209 22,128 Accrued income taxes 16,632 10,071 Accrued consumption tax 5,075 2,554 Accrued expenses 8,089 7,643 Advance received 11,050 12,814 Contract liabilities 17,579 17,899 Provision for product warranties 1,697 1,656 Reserve for points 1,707 1,810 Reserve for bonuses 4,796 2,659 Lease obligations 4,673 5,160 Other 8,187 10,713 Total current liabilities 238,658 227,092 Non-current liabilities Long-term loans payable 42,866 35,999 Contract liabilities 22,794 23,590 Reserve for directors' retirement benefits 233 244 Retirement benefit liabilities 12,315 12,506 Deferred tax liabilities 10,519 10,513 Lease obligations 11,454 12,209 Other 6,591 6,871 Total non-current liabilities 106,775 101,936 Total liabilities 345,434 329,028 Net Assets Shareholders' equity Capital stock 6,330 6,330 Capital surplus 7,814 7,774 Retained earnings 225,178 242,775 Treasury stock -11,672 -10,772 Total shareholders' equity 227,651 246,107 Accumulated other comprehensive income Valuation difference on available-for-sale securities 9,290 1,602 Deferred gains or losses on hedges 13 19 Currency conversion adjustments 5,536 5,682 Total accumulated other comprehensive income 14,840 7,304 Stock acquisition rights 2,956 2,984 Non-controlling interests 3,595 3,711 Total net assets 249,043 260,107 Total liabilities and net assets 594,478 589,135
Page 9
7 (2) Consolidated income statement and consolidated statement of comprehensive income (For the three-month period) (Million yen) Three-month period of the previous fiscal year (April 1, 2025 - June 30, 2025) Three-month period of the current fiscal year (April 1, 2026 - June 30, 2026) Net sales 228,170 242,078 Cost of sales 160,189 171,042 Gross profit on sales 67,981 71,035 Sales, general and administrative expenses 53,286 57,253 Operating income 14,695 13,782 Non-operating income Interest income 45 32 Dividend 639 661 Purchase discounts 700 898 Gain on sale of investment securities － 14,627 Foreign exchange gains 151 － Other 452 527 Total non-operating income 1,990 16,747 Non-operating expenses Interest expenses 357 464 Loss on equity method investment 4 1 Foreign exchange losses － 34 Other 70 116 Total non-operating expenses 432 616 Ordinary income 16,253 29,912 Extraordinary income Gain on reversal of share acquisition rights 6 20 Gain on sale of non-current assets 0 14 Total extraordinary income 7 35 Extraordinary losses Impairment losses 49 160 Loss on store closings 15 146 Loss on sale of investment securities 97 － Loss on sale of shares of subsidiaries and associates － 20 Total extraordinary losses 162 327 Net income before taxes and other adjustments 16,097 29,620 Income taxes-current 5,531 8,713 Income taxes-deferred 118 162 Total income taxes 5,650 8,875 Net income 10,447 20,744 Net income attributable to shareholders of the non-controlling interests 191 229 Net income attributable to shareholders of the parent company 10,255 20,515
Page 10
8 Consolidated statement of comprehensive income (For the three-month period) (Million yen) Three-month period of the previous fiscal year (April 1, 2025 - June 30, 2025) Three-month period of the current fiscal year (April 1, 2026 - June 30, 2026) Net income 10,447 20,744 Other comprehensive income Valuation difference on available-for-sale securities 1,489 -7,688 Deferred gains or losses on hedges -3 6 Currency conversion adjustments 132 146 Total other comprehensive income 1,618 -7,536 Comprehensive income 12,065 13,207 (Breakdown) Comprehensive income attributable to shareholders of the parent company 11,874 12,978 Comprehensive income attributable to non-controlling interests 191 229
Page 11
9 (3) Notes on consolidated financial statements (Notes on going concern assumption) Not applicable (Significant changes in shareholders’ equity) Not applicable (Segment information, etc.) [Segment information] I Three-month period of the previous fiscal year (April 1, 2025 – June 30, 2025) 1. Net sales and income (loss) by reporting segment (Million yen) Notes: *1. The “Other” business segment consists of businesses not included in the reporting segments above. These include the shopping mall business, the sports business, the training business, the mega-solar business, and financial business etc. *2. Adjustments to segment income consist of companywide costs not distributed among reporting segments. *3. Segment income is adjusted with ordinary income on the quarterly consolidated income statement. 2. Information on impairment losses on non-current assets or goodwill for each reportable segment (Significant impairment losses on non-current assets) The carrying amount of a group of assets that has continuously generated losses from operating activities is reduced to its recoverable amount, and the reduced amount is recorded as an impairment loss under extraordinary losses. The amount recorded in the reporting segment was 49 million yen for the operation of digital home electronics retail stores. (Significant change in amount of goodwill) Regarding the business combination with Street Holdings Corporation in the Media business conducted during the first quarter of the previous consolidated fiscal year, the amount of goodwill was initially calculated provisionally because the purchase price allocation had not been finalized. Since the provisional accounting treatment was finalized during the previous interim consolidated accounting period, the amount of goodwill has been revised. As a result, the goodwill provisionally calculated at 9,208 million yen decreased by 3,370 million yen, resulting in 5,837 million yen. Reporting segment Other (*1) Total Adjustmen ts (*2) Amount on consolidate d financial statements (*3) Operation of digital home electronics retail stores Operation of mobile carrier stores Internet business Product business Media business Overseas business Subtotal Net sales Net sales to external customers 76,092 89,969 18,276 15,371 6,038 19,976 225,726 2,444 228,170 － 228,170 Internal sales or transfers between segments 767 1,092 124 514 3 － 2,501 184 2,686 -2,686 － Subtotal 76,859 91,061 18,400 15,886 6,042 19,976 228,228 2,628 230,856 -2,686 228,170 Segment income(loss) 6,260 6,044 1,821 1,216 262 8 15,615 678 16,293 -39 16,253
Page 12
10 II Three-month period of the current fiscal year (April 1, 2026 – June 30, 2026) 1. Net sales and income (loss) by reporting segment (Million yen) Notes: *1. The “Other” business segment consists of businesses not included in the reporting segments above. These include the shopping mall business, the sports business, the training business, and the mega-solar business etc. *2. The adjustment amount for segment income or loss includes 14,627 million yen of gain on sale of investment securities and -119 million yen of companywide costs not distributed among reporting segments. *3. Segment income is adjusted with ordinary income on the quarterly consolidated income statement. 2. Changes to Reportable Segments To reflect the characteristics of Nojima Team's performance evaluation, from the previous consolidated fiscal year, the reporting segments are presented in descending order of segment income. Accompanying this change, the presentation order of the reporting segments for the first quarter of the previous consolidated cumulative period has also been changed to descending order of segment income. In the previous consolidated fiscal year, accompanying the sale of all shares of MONEY SQUARE HOLDINGS, INC. and MONEY SQUARE, INC., which constituted the "Financial business" that was a conventional reporting segment, the segment classification has been changed. Accompanying this change, regarding the segment information for the first quarter of the previous consolidated cumulative period, the "Financial business" has been integrated into "Other". 3. Information on impairment losses on non-current assets or goodwill for each reportable segment (Significant impairment losses on non-current assets) The carrying amount of a group of assets that has continuously generated losses from operating activities is reduced to its recoverable amount, and the reduced amount is recorded as an impairment loss under extraordinary losses. The amount recorded in the reporting segment is mainly 158 million yen for the "Operation of digital home electronics retail stores". (Significant change in amount of goodwill) Not applicable. (Notes on the cash flow statement) The quarterly consolidated cash flow statement for the first quarter of the current consolidated cumulative period has not been prepared. However, depreciation (including amortization of intangible fixed assets excluding goodwill) and amortization of goodwill for the first quarter of the consolidated cumulative period are as follows. In addition, during the second quarter of the previous consolidated cumulative period, provisional accounting treatment for business combinations was finalized, and the figures for the first quarter of the previous consolidated cumulative period reflect the contents of the provisional accounting treatment. (Million yen) Three-month period of the previous fiscal year (April 1, 2025 - June 30, 2025) Three-month period of the current fiscal year (April 1, 2026 - June 30, 2026) Depreciation 4,728 5,047 Amortization of goodwill 1,609 1,542 Reporting segment Other (*1) Total Adjustmen ts (*2) Amount on consolidate d financial statements (*3) Operation of digital home electronics retail stores Operation of mobile carrier stores Product business Internet business Media business Overseas business Subtotal Net sales Net sales to external customers 89,535 89,930 15,602 18,951 5,556 21,286 240,863 1,215 242,078 － 242,078 Internal sales or transfers between segments 800 1,659 741 113 26 － 3,340 838 4,178 -4,178 － Subtotal 90,336 91,589 16,343 19,064 5,583 21,286 244,204 2,053 246,257 -4,178 242,078 Segment income(loss) 6,117 5,664 1,523 993 493 -15 14,776 628 15,404 14,508 29,912
Page 13
11 (Important subsequent events) (Stock Options) At a Board of Directors meeting held on July 21, 2026, our company resolved to issue stock acquisition rights as stock options without consideration and determined the specific terms of the issuance. (1) Regarding the resolutions for the issuance of the stock acquisition rights All of the stock acquisition rights are issued on the same terms and conditions; however, the resolution procedures differ depending on the persons to whom they are granted, as described below. A. Portion granted to the Directors and Executive Officers of the Company, and the Directors, Corporate Auditors, and Operating Officers of the Company's subsidiaries At the 64th Ordinary General Meeting of Shareholders of the Company held on June 19, 2026, a special resolution (Article 239, Paragraph 1 of the Companies Act) was approved to delegate to the Board of Directors the determination of the matters regarding the offering of these stock acquisition rights. Based on this resolution, the specific terms and conditions of the issuance were determined at the meeting of the Board of Directors. B. Portion granted to the employees of the Company and the employees of its subsidiaries As these stock acquisition rights are granted fairly as compensation for the performance of duties and do not constitute an issuance under favorable conditions, the terms and conditions of the issuance were determined by the resolution of the Board of Directors, pursuant to Article 238, Paragraph 1 and Article 240, Paragraph 1 of the Companies Act. (2) Purpose of introducing the stock option plan and reason for issuing the stock acquisition rights without consideration The purpose of the issuance is to enhance corporate value by increasing the motivation and morale to contribute to improving the business performance of the Nojima Team. To appropriately achieve this purpose, the stock acquisition rights will be issued without consideration. In addition, the Company plans to allocate its treasury stock for all of the shares to be delivered upon the exercise of these stock acquisition rights; therefore, no dilution of shares is expected as a result of the issuance of these stock acquisition rights. (3) Persons to whom stock acquisition rights will be allotted (i) The Directors and Executive Officers of the Company, and the Directors, Corporate Auditors, and Operating Officers of the Company's subsidiaries, who are approved by the Board of Directors of the Company; and (ii) the employees of the Company and the employees of its subsidiaries, who are approved by the Board of Directors of the Company. The grant to the Directors and Executive Officers of the Company shall be made based on the determination of the Compensation Committee of the Company. (4) Outline of the Issuance of Stock Acquisition Rights 1 Date of issuance of stock acquisition rights August 4, 2026 2 Number of stock acquisition rights to be issued 17,280 rights (*1) 96,785 rights (*2) (100 shares of the Company's common stock per stock acquisition right) 3 Issue price of stock acquisition rights No payment of cash is required in exchange for the stock acquisition rights 4 Type and number of shares underlying the stock acquisition rights Common stock of the Company (number of shares to be determined) 5 Amount to be paid upon exercise of stock acquisition rights Undetermined (to be determined on August 4, 2026) * The amount shall be the closing price of the Company's common stock in regular trading on the Tokyo Stock Exchange on the date of allotment of the stock acquisition rights (or the closing price on the most recent trading day prior thereto if no trading takes place on such date). 6 Total amount to be paid upon exercise of stock acquisition rights Undetermined (to be determined on August 4, 2026) 7 Exercise period of stock acquisition rights From July 22, 2029 to July 21, 2031
Page 14
12 8 Amount not incorporated into capital out of the issue price of shares issued upon exercise of the stock acquisition rights The amount not incorporated into capital shall be calculated by deducting the amount to be incorporated into capital from the amount to be paid in per share issued upon the exercise of the stock acquisition rights. The amount to be incorporated into capital shall be one-half of the maximum amount of increase in capital, etc., as calculated in accordance with Article 17, Paragraph 1 of the Regulation on Corporate Accounting, and any fraction less than one yen resulting from such calculation shall be rounded up. 9 Number of persons to whom stock acquisition rights will be allotted Directors of the Company: 15 persons Executive Officers of the Company: 5 persons Directors of the Company's subsidiaries: 28 persons Corporate Auditors of the Company's subsidiaries: 5 persons Operating Officers of the Company's subsidiaries: 26persons Employees of the Company: 1,519 persons Employees of the Company's subsidiaries: 3,282 persons Notes: *1. Portion granted to the Directors and Executive Officers of the Company, and the Directors, Corporate Auditors, and Operating Officers of the Company's subsidiaries *2. Portion granted to the employees of the Company and the employees of its subsidiaries *3. Individuals who concurrently serve as employees of the Company and officers (directors, corporate auditors, or operating officers) of its subsidiaries will not receive duplicate allotments of stock acquisition rights from both the allotment framework for officers and the allotment framework for employees. The number of shares of the Company's common stock to be issued or transferred upon exercise of each stock acquisition right (the "Number of Shares to be Allotted") shall be 100 shares. However, in the event that the Company conducts a stock split (including an allotment of shares of common stock without consideration; the same shall apply hereinafter) or a consolidation of shares after the date on which the stock acquisition rights are allotted (the "Allotment Date"), the Number of Shares to be Allotted shall be adjusted in accordance with the following formula. Such adjustment shall be made only with respect to the Number of Shares to be Allotted for stock acquisition rights that have not been exercised at the time of the adjustment, and any fraction less than one share resulting from the adjustment shall be rounded down. Number of Shares to be Allotted after adjustment = Number of Shares to be Allotted before adjustment × Ratio of stock split or consolidation In addition to the above, if the Company conducts a merger, company split, share exchange, or share transfer (collectively, hereinafter the "Merger, etc."), or in any other case where it is necessary to adjust the Number of Shares to be Allotted, the Company shall make an adjustment to the Number of Shares to be Allotted to a reasonable extent, taking into account the conditions of the Merger, etc. and other relevant factors. (5) Payment amount for stock acquisition rights or method of calculation No monetary payment shall be required in exchange for the stock acquisition rights. These stock acquisition rights are granted through fair issuance as consideration for the performance of duties and do not constitute an issuance on favorable terms. (6) Amount payable upon exercise of stock acquisition rights The amount payable upon the exercise of one stock acquisition right shall be determined by multiplying the price payable per share that may be granted through the exercise of stock options (hereinafter, "exercise price") by the number of shares granted. The exercise price shall be the closing price of the Company's common stock in ordinary trading on the Tokyo Stock Exchange on the allocation date (or the most recent closing price if no trading takes place on the allocation date). The exercise price shall be adjusted after the allocation date in each of the following cases. A. If the Company undertakes a stock split or a stock consolidation, the exercise price shall be adjusted by applying the formula indicated below, with the result rounded up to the nearest whole yen. Adjusted Exercise Price Original Exercise Price 1 stock split or stock consolidation ratio B. If the Company issues new shares or sells treasury stock at below market value, the exercise price shall be adjusted by applying the formula indicated below, with the result rounded up to the nearest whole yen. Adjusted Exercise Price Original Exercise Price existing number of shares issued and outstanding number of new shares issued × price payable per share market value existing number of shares issued and outstanding + number of new shares issued In the formula above, the "existing number of shares issued and outstanding" refers to the total number of shares issued by the Company minus the number of shares of treasury stock held by the Company. In the case of the sale of treasury stock, the "number of new shares issued" above shall be read as the "number of shares of treasury stock sold." ＝ ＝ ＝ ＝ × × +
Page 15
13 C. Should the Company find it necessary to adjust the exercise price after the allocation date for unavoidable reasons (e.g. merger, etc.), the Company reserves the right to adjust the exercise price within reasonable limits based on the terms of the merger, etc. and other matters. (7) Period in which stock acquisition rights may be exercised Stock acquisition rights may be exercised for a period of two years starting on the date three years after the day after the date of the Board of Directors' resolution determining the terms of the issuance of the stock acquisition rights. (8) Conditions for exercise of stock acquisition rights A. A person who has been allocated stock acquisition rights (hereinafter ,"stock option holder") must be employed by the Company or a Company subsidiary at the time of exercise. However, this shall not apply if the Board of Directors recognizes a legitimate reason. B. Stock acquisition rights may not be passed on to legal heirs. (9) Reason and conditions for the acquisition of stock acquisition rights A. The Company may acquire stock acquisition rights gratis on a date specified separately by the Board of Directors if the general meeting of shareholders approves a proposal for a merger agreement whereby the Company is to be dissolved or a proposal for a share exchange agreement or a share transfer plan whereby the Company becomes a wholly-owned subsidiary. B. If a stock option holder is unable to exercise the option because he or she no longer satisfies the requirements for execution under (8) above or has relinquished such right, the Company may acquire the stock acquisition rights gratis. C. The Company may cancel the stock acquisition rights it has acquired and holds gratis at any time. (10) Restrictions on the acquisition of stock acquisition rights through a transfer Approval of the Company's Board of Directors is required for the acquisition of stock acquisition rights through a transfer of ownership. (11) Increases in capital and capital reserves due to the issuance of stock through the exercise of stock acquisition rights A. The amount of an increase in capital due to the issuance of stock through the exercise of stock acquisition rights shall be one-half of the limit for an increase in capital calculated pursuant to Article 17, Paragraph 1 of the Ordinance on Accounting of Companies, with the result rounded up to the nearest whole yen. B. The amount of an increase in capital reserves due to the issuance of stock through the exercise of stock acquisition rights shall be the amount remaining after subtracting the increase in capital specified under A above from the limit for an increase in capital under A. (12) Policies, etc. for the treatment of stock acquisition rights in the case of stock swap or stock transfer If the Company is involved in a merger leading to the dissolution of the Company, an absorption-type corporate divestiture, an establishment-type corporate divestiture (in both cases, only if the Company is to be divided), or a stock swap or stock transfer (only if the Company is to become a wholly-owned subsidiary) (the term "organizational restructuring" hereafter encompasses all such events), the Company shall grant stock acquisition rights in the company described in Article 236, Paragraph 1, Item 8, A to E of the Companies Act of Japan (hereinafter, "restructured Company"), in each respective case, to stock option holders with unexercised stock acquisition rights not acquired by the Company (hereinafter, "remaining stock options") as of the date the organizational restructuring takes effect (that is, the effective date of absorption-type merger, consolidation-type merger, absorption-type corporate divestiture, establishment-type corporate divestiture, stock swap, or stock transfer). In such cases, the remaining stock options shall be cancelled, and the restructured Company shall issue new stock acquisition rights. This provision is limited to cases in which the merger agreement, new company merger agreement, absorption-type corporate divestiture agreement, establishment-type corporate divestiture plan, stock swap agreement, or stock transfer plan specifies grants of stock acquisition rights in the restructured Company in accordance with the conditions indicated below. A. Number of stock acquisition rights in the restructured Company to be granted.The same number of stock acquisition rights as the number of remaining stock options held by each stock option holder. B. Class of stock in the restructured Company to be issued for the purpose of issuing stock acquisition rights The restructured Company's common stock. C. Number of shares of stock in the restructured Company to be issued for the purpose of issuing stock acquisition rights Determined in accordance with "(4). Outline of the Issuance of Stock Acquisition Rights " above, based on consideration of the terms of the organizational restructuring and other matters. D. Amount to be invested upon the exercise of stock acquisition rights The amount to be invested upon the exercise of each stock acquisition right to be granted shall be determined by multiplying the number of shares of stock in the restructured Company to be issued for the purpose of issuing stock acquisition rights determined, as described under C above, by the adjusted exercise price, as described under “(6) Amount payable upon exercise of stock acquisition rights " C above. E. Period in which stock acquisition rights may be exercised Stock acquisition rights may be exercised from the starting date of the period described under “(7) Period in which stock acquisition rights may be exercised” above or the effective date of the organizational restructuring, whichever is later, to the closing date of the period described under "(7) Period in which stock acquisition rights may be exercised" above. F. Increases in capital and capital reserves due to the issuance of stock through the exercise of stock acquisition rights Determined according to "(11) Increases in capital and capital reserves due to the issuance of stock through the exercise of stock acquisition rights" above. G. Restrictions on acquisition of stock acquisition rights through transfer Approval of the restructured Company's Board of Directors is required for the acquisition of stock acquisition rights through a transfer of ownership. H. Reasons and conditions for acquisition of stock acquisition rights Determined according to "(9) Reasons for acquisition by the Company and conditions for cancellation of stock acquisition rights" above. (13) Handling of warrant certificates in the event of issuance The company shall not issue warrant certificates for these stock acquisition rights.