Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. February 12, 2026 Consolidated Financial Results for the Nine Months Ended December 31, 2025 (Under IFRS) Company name: HIKARI TSUSHIN, INC. Listing: Tokyo Stock Exchange Securities code: 9435 URL: https://www.hikari.co.jp/en/ Representative: Hideaki Wada, President and Representative Director Inquiries: Naomi Imoto, Head of Financial Strategy, Investor Relations, and Public Relations Telephone: +81-3-6863-0124 for overseas institutional investors Scheduled date to commence dividend payments: March 13, 2026 Preparation of supplementary material on financial results: Yes Holding of earnings conference call: Yes (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Revenue Operating profit Profit before tax Profit Nine months ended Million yen % Million yen % Million yen % Million yen % December 31, 2025 542,500 8.8 88,503 2.2 155,954 8.2 116,321 9.7 December 31, 2024 498,814 11.7 86,581 16.2 144,084 33.5 106,017 41.0 Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Nine months ended Million yen % Million yen % Yen Yen December 31, 2025 112,671 9.6 244,603 57.9 2,566.04 2,562.80 December 31, 2024 102,784 39.2 154,863 2.0 2,333.86 2,329.94 (2) Consolidated financial position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets As of Million yen Million yen Million yen % December 31, 2025 2,716,600 1,162,696 1,131,946 41.7 March 31, 2025 2,371,026 943,569 914,768 38.6 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 156.00 161.00 167.00 177.00 661.00 Fiscal year ending March 31, 2026 181.00 185.00 190.00 Fiscal year ending March 31, 2026 (Forecast) 190.00 746.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes
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3. Consolidated earnings forecast for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate year-on-year changes.) Revenue Operating profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Yen Full year 760,000 10.7 115,000 9.5 120,000 2.1 2,733.04 Note: Revisions to the earnings forecast most recently announced: Yes Notes (1) Significant changes in the scope of consolidation during the period: None Newly included: – Excluded: – (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of December 31, 2025 43,989,642 shares As of March 31, 2025 44,269,642 shares (ii) Number of treasury shares at the end of the period As of December 31, 2025 82,451 shares As of March 31, 2025 385,681 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended December 31, 2025 43,897,849 shares Nine months ended December 31, 2024 44,033,785 shares • Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary) • Proper use of earnings forecasts and other special matters (Note to the forward-looking statements, etc.) The forward-looking statements including earnings forecasts contained in this document are based on information currently available to us and certain assumptions that we believe to be reasonable. Accordingly, the Company does not guarantee the achievement of the forecast, and the actual results may differ material ly due to various factors. Please refer to “1. Qualitative Information on Quarterly Financial Results, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information” on page 4 of the Attachments for the assumptions that form the basis for the earnings forecasts, and points of caution concerning the use of earnings forecasts.
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1 Table of Contents - Attachments 1. Qualitative Information on Present Quarterly Financial Results ..................................................................................... 2 (1) Explanation of Operating Results ............................................................................................................................... 2 (2) Explanation of Financial Position ............................................................................................................................... 4 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ......................... 4 2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ................................................................ 5 (1) Condensed Quarterly Consolidated Statements of Financial Position ...................................................................... 5 (2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income ........................................................ 7 Condensed Quarterly Consolidated Statements of Profit or Loss..................................................................................... 7 Nine months ended December 31, 2024 and 2025 ...................................................................................................... 7 Condensed Quarterly Consolidated Statements of Comprehensive Income..................................................................... 8 Nine months ended December 31, 2024 and 2025 ...................................................................................................... 8 (3) Condensed Quarterly Consolidated Statements of Changes in Equity ....................................................................... 9 (4) Condensed Quarterly Consolidated Statements of Cash Flows ................................................................................ 10 (5) Notes to Condensed Quarterly Consolidated Financial Statements .......................................................................... 12 1. Reporting entity ......................................................................................................................................................... 12 2. Basis of preparation of condensed quarterly consolidated financial statements ........................................................ 12 3. Material accounting policy information .................................................................................................................... 13 4. Significant accounting estimates and judgements on estimates ................................................................................ 13 5. Operating segments ................................................................................................................................................... 13 6. Assets Held for Sale .................................................................................................................................................. 16 7. Investments accounted for using equity method ....................................................................................................... 16 8. Bonds payable ........................................................................................................................................................... 17 9. Capital and reserves................................................................................................................................................... 17 10. Earnings per share ................................................................................................................................................... 18 11. Significant subsequent events .................................................................................................................................. 18 12. Notes on going concern assumption ........................................................................................................................ 18 13. Date of approval ...................................................................................................................................................... 18
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2 1. Qualitative Information on Present Quarterly Financial Results (1) Explanation of Operating Results <Summary of financial results> For the nine months ended December 31, 2025 (the “current period”), the Japanese economy showed a gradual recovery, supported by the continued improvements in employment and income conditions , with signs of a rebound in personal consumption and capital investment . However, the outlook remains uncertain due to continued high prices, future price trends, the impact of U.S. trade policies, fluctuations in financial and capital markets. The HIKARI TSUSHIN, INC. (“the Company”) and its subsidiaries (collectively “the Group”) leveraged its strength in sales to engage in businesses where we can expect stable long -term revenue such as electricity and gas, internet communication line services, water delivery, and insurance. In addition, to realize a decarbonized society and achiev e the SDGs (Sustainable Development Goals), we undertake specific measures and initiatives to fulfill our social responsibility . These initiatives include developing environmentally friendly electricity services that provide virtually renewable energy using Non-Fossil Certificates, preserving sustainable water resources, and reducing resources and waste. As a result, revenue amounted to 542,500 million yen, up 8.8% year on year, for the nine months ended December 31, 2025. Recurring operating profit*—which serves as a source of stable revenue in the future —increased as the number of customer contracts for our in-house products grew. Operating profit was 88,503 million yen, up 2.2% year on year. Profit before tax was 155,954 million yen, up 8.2% year on year, due to an increase in financial income reflecting a weaker yen. Profit attributable to owners of parent was 112,671 million yen, up 9.6% year on year. *Recuring operating profit refers to the profit excluding customer retention costs and service provision costs from revenue (basic subscription fees, usage fees, and insurance fees, etc.) which are paid every month by users once they subscribe to our services. Revenue may be received from telecommunications carriers or directly from users. (Million yen unless otherwise stated) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Change Change (%) Revenue 498,814 542,500 43,686 8.8 Operating profit 86,581 88,503 1,921 2.2 Profit before tax 144,084 155,954 11,870 8.2 Profit attributable to owners of parent 102,784 112,671 9,887 9.6 <Financial results by segment> Electricity and Gas segment The Electricity and Gas segment mainly sells and provides electricity and gas to small-and-medium-sized enterprises (SMEs) and individual customers. The growth in the number of customer contracts led to an increase in recurring operating profit, which serves as a stable source of revenue for the future, while expenses related to sales activities increased as a result of strong sales performance. The segment recorded revenue of 231,711 million yen, up 13.2% year on year, and operating profit of 25,943 million yen, down 3.3% year on year for the current period.
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3 Telecommunication segment The Telecommunication segment mainly provides SMEs and individual customers with internet communication line services and associated services. The segment recorded revenue of 95,264 million yen, up 4.2% year on year, and operating profit of 22,105 million yen, up 11.3% year on year for the current period. As the number of customer contracts increased, recurring operating profit — which serves as a stable source of future revenue—also grew. Beverage segment The Beverage segment primarily involves producing natural mineral water products and selling them to individual customers through home delivery. The segment recorded revenue of 64,382 million yen, up 7.9% year on year, and operating profit of 9,048 million yen, up 18.9% year on year for the current period. As the number of customer contracts increased, recurring operating profit — which serves as a stable source of future revenue—also grew. Insurance segment The Insurance segment mainly provides non-life insurance, life insurance, and warranty services to SMEs and individual customers. The segment recorded revenue of 25,340 million yen, up 29.8% year on year, and operating profit of 7,429 million yen, up 15.3% year on year for the current period . While selling expenses associated with strong sales performance increased, recurring operating profit—which serves as a stable source of future revenue —also grew due to the rise in the number of customer contracts. Finance segment The Finance segment mainly provides microfinance and other financial services to SMEs and individual customers. The segment recorded revenue of 32,316 million yen, up 31.7% year on year, and operating profit of 16,773 million yen, up 16.0% year on year for the current period, driven by a stable business environment and steady sales performance. Solution segment The Solution segment mainly provides SMEs with industry-specific solution services through the provision of customer management system and settlement management system platforms and various other tools. The segment recorded revenue o f 20,264 million yen, down 3.3% year on year, and operating profit of 2,947 million yen, down 23.9% year on year for the current period, although the business remained generally firm. Commission-based Sales segment The Commission-based Sales segment mainly engages in commission-based sale of various products, such as products offered by telecommunications carriers and manufacturers, targeting SMEs and individual customers. The segment recorded revenue of 73,220 million yen, down 6.2% year on year, and operating profit of 8,563 million yen, down 25.5% year on year for the current period, due to the transfer of shares of some consolidated subsidiaries in the previous fiscal year.
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4 (2) Explanation of Financial Position Assets, liabilities, and net assets (Million yen) As of March 31, 2025 As of December 31, 2025 Change Assets 2,371,026 2,716,600 345,574 Liabilities 1,427,456 1,553,904 126,447 Equity 943,569 1,162,696 219,127 Assets were 2,716,600 million yen, up 345,574 million yen from March 31, 2025 , primarily due to the acquisition of investment securities. Liabilities were 1,553,904 million yen, up 126,447 million yen from March 31, 2025, primarily due to the issuance of bonds. Equity w as 1,162,696 million yen, up 219,127 million yen from March 31, 2025, reflecting an increase in retained earnings. Cash flows (Million yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Cash flows from operating activities 55,051 36,122 Cash flows from investing activities (159,317) (181,268) Cash flows from financing activities 29,160 56,417 Cash and cash equivalents at end of period 430,663 388,538 Net cash provi ded by operating activities was 36,122 million yen as a result of robust operating result s for the nine months ended December 31, 2025. Net cash used in investing activities was 181,268 million yen due to the purchase of investment securities. Net cash provided by financing activities was 56,417 million yen due to the issuance of bonds. As a result, cash and cash equivalents as of December 31, 2025 was 388,538 million yen. (3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Information The earnings forecast for the fiscal year ending March 31, 2026 have been revised . Please refer to the “Notice Concerning Revision of Financial Forecast” announced on February 12, 2026 for details. The forward-looking information including earnings forecasts contained in this document are based on the judgement of the Company’s management, based on currently available information. Investors are therefore cautioned not to unduly rely on the forecasts provided.
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5 2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (1) Condensed Quarterly Consolidated Statements of Financial Position (Million yen) Notes As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and cash equivalents 470,273 388,538 Trade and other receivables 332,327 385,637 Reinsurance contract asset 823 451 Inventories 2,356 2,370 Other financial assets 17,949 64,055 Other current assets 25,148 9,845 (subtotal) 848,880 850,898 Assets held for sale 6 － 1,822 Total current assets 848,880 852,721 Non-current assets Property, plant and equipment 38,975 41,327 Right-of-use assets 5,236 5,057 Goodwill 18,798 18,640 Intangible assets 6,696 6,788 Investments accounted for using equity method 7 205,485 306,448 Other financial assets 1,182,904 1,412,492 Deferred tax assets 7,974 7,615 Contract costs 50,693 59,486 Insurance contract asset 5,090 5,809 Other non-current assets 289 212 Total non-current assets 1,522,145 1,863,879 Total assets 2,371,026 2,716,600 The notes are an integral part of these condensed quarterly consolidated financial statements.
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6 (Million yen) Notes As of March 31, 2025 As of December 31, 2025 Liabilities and equity Liabilities Current liabilities Trade and other payables 284,742 255,840 Insurance contract liabilities 5,582 5,511 Interest-bearing liabilities 8 179,876 188,699 Income taxes payable 17,999 27,008 Other financial liabilities 771 324 Other current liabilities 16,211 13,483 Total current liabilities 505,183 490,869 Non-current liabilities Interest-bearing liabilities 8 754,444 840,671 Provision 417 437 Other non-current liabilities 15,423 15,163 Deferred tax liabilities 151,987 206,762 Total non-current liabilities 922,272 1,063,035 Total liabilities 1,427,456 1,553,904 Equity Share capital 54,259 54,259 Capital surplus 984 1,604 Retained earnings 863,716 1,061,034 Treasury shares 9 (10,864) (2,491) Accumulated other comprehensive income 6,672 17,539 Total equity attributable to owners of parent 914,768 1,131,946 Non-controlling interests 28,800 30,750 Total equity 943,569 1,162,696 Total liabilities and equity 2,371,026 2,716,600 The notes are an integral part of these condensed quarterly consolidated financial statements.
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7 (2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income Condensed quarterly Consolidated Statements of Profit or Loss Nine months ended December 31, 2024 and 2025 (Million yen) Notes Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) Revenue 498,814 542,500 Cost of sales 245,475 270,307 Gross profit 253,338 272,192 Other income 4,220 3,129 Selling, general and administrative expenses 170,366 186,532 Other expenses 611 286 Operating profit 86,581 88,503 Finance income 54,241 66,236 Finance costs 9,506 17,003 Share of profit (loss) of investments accounted for using equity method 7 12,037 19,379 Other non-operating income and expenses 730 (1,161) Profit before tax 144,084 155,954 Income tax expense 38,067 39,633 Profit 106,017 116,321 Profit attributable to Owners of parent 102,784 112,671 Non-controlling interests 3,233 3,649 Profit 106,017 116,321 Earnings per share Basic earnings per share (Yen) 10 2,333.86 2,566.04 Diluted earnings per share (Yen) 10 2,329.94 2,562.80 The notes are an integral part of these condensed quarterly consolidated financial statements.
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8 Condensed Quarterly Consolidated Statements of Comprehensive Income Nine months ended December 31, 2024 and 2025 (Million yen) Notes Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) Profit 106,017 116,321 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income 44,467 115,006 Share of other comprehensive income of investments accounted for using equity method (208) 2,521 Total 44,258 117,528 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 4,508 12,333 Share of other comprehensive income of investments accounted for using equity method 78 392 Cash flow hedge - (1,972) Total 4,587 10,753 Other comprehensive income, net of tax 48,845 128,281 Comprehensive income 154,863 244,603 Comprehensive income attributable to Owners of parent 151,340 240,267 Non-controlling interests 3,522 4,335 Comprehensive income 154,863 244,603 The notes are an integral part of these condensed Quarterly consolidated financial statements.
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9 (3) Condensed Quarterly Consolidated Statements of Changes in Equity Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) (Million yen) Equity attributable to owners of parent Notes Share capital Capital surplus Retained earnings Treasury shares Accumulated other comprehensive income Total Non- controlling interests Total equity Balance at beginning of period 54,259 - 748,760 (18,365) 5,823 790,478 28,771 819,249 Comprehensive income Profit - - 102,784 - - 102,784 3,233 106,017 Other comprehensive income - - - - 48,556 48,556 288 48,845 Comprehensive income - - 102,784 - 48,556 151,340 3,522 154,863 Transactions with owners Dividends of surplus - - (22,928) - - (22,928) (1,366) (24,295) Change in scope of consolidation - - - - - - (2,135) (2,135) Changes in ownership interest in subsidiaries - 1,295 - - - 1,295 (627) 667 Purchase and disposal of treasury shares - 19 (153) (9,145) - (9,279) - (9,279) Cancellation of treasury shares 9 - (34) (15,788) 15,823 - - - - Share-based payment transactions - (166) - 77 - (89) 1 (88) Transfer from other components of equity to retained earnings - - 44,000 - (44,000) - - - Total transactions with owners - 1,113 5,129 6,755 (44,000) (31,002) (4,128) (35,130) Balance at end of period 54,259 1,113 856,674 (11,610) 10,379 910,816 28,165 938,981 Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) (Million yen) Equity attributable to owners of parent Notes Share capital Capital surplus Retained earnings Treasury shares Accumulated other comprehensive income Total Non- controlling interests Total equity Balance at beginning of period 54,259 984 863,716 (10,864) 6,672 914,768 28,800 943,569 Comprehensive income Profit - - 112,671 - - 112,671 3,649 116,321 Other comprehensive income - - - - 127,595 127,595 686 128,281 Comprehensive income - - 112,671 - 127,595 240,267 4,335 244,603 Transactions with owners Dividends of surplus - - (23,836) - - (23,836) (1,730) (25,566) Change in scope of consolidation - - - - - - 1,806 1,806 Changes in ownership interest in subsidiaries - 751 - - - 751 (2,464) (1,712) Purchase and disposal of treasury shares - 138 - (215) - (77) - (77) Cancellation of treasury shares 9 - (215) (8,246) 8,461 - - - - Share-based payment transactions - (53) - 126 - 72 1 73 Transfer from other components of equity to retained earnings - - 116,728 - (116,728) - - - Total transactions with owners 620 84,645 8,372 (116,728) (23,089) (2,386) (25,475) Balance at end of period 54,259 1,604 1,061,034 (2,491) 17,539 1,131,946 30,750 1,162,696 The notes are an integral part of these condensed quarterly consolidated financial statements.
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10 (4) Condensed Quarterly Consolidated Statements of Cash Flows (Million yen) Notes Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended Dcember 31, 2025 (From April 1, 2025 To December 31, 2025) Cash flows from operating activities Profit before tax 144,084 155,954 Depreciation and amortization 10,585 12,507 Finance income (54,241) (66,236) Finance costs 9,506 17,003 Share of loss (profit) of investments accounted for using equity method 7 (12,037) (19,379) Decrease (increase) in contract costs (6,926) (8,793) Decrease (increase) in trade and other receivables (28,397) (44,529) Increase (decrease) in trade and other payables 21,782 (27,057) Decrease (increase) in inventories (228) (21) Other (7,968) 3,964 Subtotal 76,158 23,412 Interest received 10,785 10,709 Dividends received 24,956 32,700 Interest paid (8,051) (10,419) Income taxes refund (paid) (48,797) (20,280) Net cash provided by (used in) operating activities 55,051 36,122 Cash flows from investing activities Purchase of property, plant and equipment, and intangible assets (19,298) (13,700) Proceeds from sale of property, plant and equipment, and intangible assets 2 106 Purchase of investment securities (218,656) (345,558) Proceeds from sale of investment securities 85,818 201,658 Proceeds from obtaining control of subsidiaries (1,594) 912 Proceeds from loss of control of subsidiaries 2,736 (446) Payments for loans receivable (2,793) (3,701) Collection of loans receivable 778 1,875 Payments for placement of time deposits (13,948) (28,500) Proceeds from refund of time deposits 7,367 7,358 Other 271 (1,272) Net cash provided by (used in) investing activities (159,317) (181,268) Cash flows from financing activities Proceeds from short-term interest-bearing debt (30,000) 15,622 Proceeds from long-term interest-bearing debt 120,272 132,753 Repayment of long-term interest-bearing debt (29,836) (59,549) Capital contribution from non-controlling interests 1,801 474 Purchase of treasury shares (10,001) (2,181) Dividends paid (22,919) (23,822) Dividends paid to non-controlling interests (1,296) (1,784) Payments for acquisition of interests in subsidiaries from non-controlling interests (858) (502) Other 1,999 (4,591) Net cash provided by (used in) financing activities 29,160 56,417 Effect of exchange rate changes on cash and cash equivalents 7,260 6,992 Net increase (decrease) in cash and cash equivalents (67,844) (81,734) Decrease in cash and cash equivalents resulting from transfer to assets held for sale 3,657 -
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11 (Million yen) Notes Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended Dcember 31, 2025 (From April 1, 2025 To December 31, 2025) Cash and cash equivalents at beginning of period 494,850 470,273 Cash and cash equivalents at end of period 430,663 388,538 The notes are an integral part of these condensed quarterly consolidated financial statements.
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12 (5) Notes to Condensed Quaterly Consolidated Financial Statements 1. Reporting entity HIKARI TSUSHIN, INC. (“the Company”) is a corporation domiciled in Japan, whose shares are listed on the Tokyo Stock Exchange. The address of the Company’s registered headquarters is 1 -4-10 Nishi-Ikebukuro, Toshima-ku, Tokyo. The accompanying condensed quarterly consolidated financial statements for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025) comprise the Company and its subsidiaries (“the Group”). The ultimate parent company of the Group is the Company. The Group opera tes various businesses, mainly in the field of information and communications. Details are provided in “Note 5. Operating segments.” 2. Basis of preparation of condensed quarterly consolidated financial statements (1) Financial reporting framework The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with Article 5, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. (however, omissions set forth in Article 5, Paragraph 5 of the Standards for Preparation of Quarterly Financial Statements apply). (2) Basis for measurement The accompanying condensed quarterly consolidated financial statements are prepared on the historical cost basis, with the exception of financial instruments and other items measured at fair value. (3) Functional currency and presentation currency The accompanying condensed quarterly consolidated financial statements are presented in millions of Japanese yen (rounded down to the nearest million yen), the functional currency of the Company. (4) Published standards that are not yet applied The following standards are the principal standards for which their new establishment or revision has been announced prior to the approval date of the accompanying condensed quarterly consolidated financial statements . However, as of December 31, 2025, the application of these standards is not compulsory, and the Group has not applied them early. The effect of the application of these standards on the Group is under consideration. Standard Standard name Time of compulsory application (Fiscal years starting after) Time of application by the Group Overview of new clauses and revisions IFRS 18 Presentation and Disclosure in Financial Statements January 1, 2027 Fiscal year ending March 31, 2028 New standard as a replacement for IAS 1 “Presentation of Financial Statements,” the existing accounting standard for presentation and disclosure in financial statements (5) Change in presentation method (Condensed quarterly consolidated statements of cash flows) In the nine months ended December 31, 2024, the item “Payments for time deposits,” and “Proceeds from refund of time-depisots” which had been included under “Other” in the section “Cash flows from investing activities,” has increased in materiality and is therefore presented as a separate line item in the nine months ended December 31, 2025. To reflect this change in presentation, the condensed quarterly consolidated statements of cash flows for the nine months ended December 31, 2024, has been restated accordingly. As a result, in the condensed quarterly consolidated statements of cash flows for the nine months ended December 31, 2024,
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13 the amount previously presented as “Other” of 6,310 million yen in losses has been reclassified into “Payments for time deposits” of 13,948 million yen in losses, “Procees from refund of time depisots” of 7,367 million yen, and “Other” of 271 million yen . 3. Material accounting policy information Material accounting policies the Group has adopted in preparing the accompa nying condensed quarterly consolidated financial statements are the same as those applied in the previous fiscal year. 4. Significant accounting estimates and judgements on estimates In the preparation of condensed quarterly consolidated financial statements, management is required to make judgements, estimates, and assumptions that may affect the application of accounting policies and the reported amounts of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates depending on the nature of the situation. These estimates and their underlying assumption are continuously reviewed. The impact of revisions to accounting estimates is prospectively recognized in the accounting period when the revision is made and in the subsequent period thereafter. Significant accounting estimates and assumptions used in the condensed quarterly consolidated financial statements are the same as those used in the consolidated financial statements for the previous fiscal year. 5. Operating segments (1) Outline of reportable segments The Group’s reportable segments are components of the Group for which separate financial information is available , regular evaluation by the Board of Directors is performed in order to make decisions about resources to be allocated, and to assess their performance. The Company manages the Group as a holding company to formulate business strategies for the products and services handled by each company and develop business activities. As such, the Group is composed of segments separated by product and service based on those companies and operates in 7 reporting segments: “Electricity and Gas,” “Telecommunication,” “Beverage,” “Insurance,” “Finance,” and “Solution,” where we provide products and services designed and developed in-house, and “Commission-based Sales,” in which we sell products of other companies. Reportable segments and its businesses are as follows: Segment Major business Electricity and Gas Selling and providing gas and electricity Telecommunication Providing internet communication line services and associated services Beverage Producing natural mineral water products and selling them through home delivery Insurance Providing non-life insurance, life insurance, and warranty services, etc. Finance Providing microfinance and other financial services Solution Providing industry-specific solution services through the provision of customer management system and settlement management system platforms and various other tools Commission-based Sales Commission-based sale of various products, such as products offered by telecommunications carriers and manufacturers (2) Method of calculating revenue, profit or loss, and other items for each reportable segment The information for each reportable segment of the Group is as follows. Segment profit is based on operating profit.
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14 Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) (Million yen) Reportable segment Other Total Adjustment (Note) Condensed quarterly consolidated financial statements Electricity and Gas T elecommuni- cation Beverage Insurance Finance Solution Commission -based Sales Total Revenue Sales to external customers 204,708 91,433 59,641 19,516 24,536 20,952 78,024 498,814 － 498,814 － 498,814 Intersegment sales and transfers – – – – – – – – – – – Total 204,708 91,433 59,641 19,516 24,536 20,952 78,024 498,814 － 498,814 － 498,814 Segment profit 26,815 19,864 7,611 6,441 14,465 3,875 11,498 90,572 － 90,572 (3,990) 86,581 Finance income 54,241 Finance costs 9,506 Share of profit (loss) of investments accounted for using equity method 12,037 Other non- operating income and expenses 730 Profit before tax 144,084 Notes: 1. The adjustment for segment profit includes corporate profit or loss that have not been allocated to reportable segments. 2. Revenue of each segment include the revenue from sources other than revenue from contracts with customers under IFRS 15 as follows: The Electricity and Gas segment recognized 8,765 million yen of government grants under IAS 20. The Beverage segment included lease income under IFRS 16. The Insurance segment recognized 15,377 million yen of insurance revenue under IFRS 17. Corresponding insurance service expenses of 10,452 million yen and losses related to reinsurance of 305 million yen compose the segment profit of the Insurance segment. The Finance segment recognized revenue, including finance income, calculated using the effective interest rate under IFRS 9.
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15 Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) (Million yen) Reportable segment Other Total Adjustment (Note) Condensed quarterly consolidated financial statements Electricity and Gas T elecommuni cation Beverag e Insuran ce Finance Solution Commissi on-based Sales Total Revenue Sales to external customers 231,711 95,264 64,382 25,340 32,316 20,264 73,220 542,500 － 542,500 － 542,500 Intersegment sales and transfers － － － － － － － － － － － － Total 231,711 95,264 64,382 25,340 32,316 20,264 73,220 542,500 － 542,500 － 542,500 Segment profit 25,943 22,105 9,048 7,429 16,773 2,947 8,563 92,812 － 92,812 (4,308) 88,503 Finance income 66,236 Finance costs 17,003 Share of profit (loss) of investments accounted for using equity method 19,379 Other non- operating income and expenses (1,161) Profit before tax 155,954 Notes: 1. The adjustment for segment profit includes corporate profit or loss that have not been allocated to reportable segments. 2. Revenue of each segment include the revenue from sources other than revenue from contracts with customers under IFRS 15 as follows: The Electricity and Gas segment recognized 5,420 million yen of government grants under IAS 20. The Beverage segment included lease income under IFRS 16. The Insurance segment recognized 18,467 million yen of insurance revenue under IFRS 17. Corresponding insurance service expenses of 14,344 million yen and losses related to reinsurance of 120 million yen in losses compose the segment profit of the Insurance segment. The Finance segment recognized revenue, including finance income, calculated using the effective interest rate under IFRS 9.
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16 6. Assets held for sale Details of assets held for sale and liabilities directly associated with assets held for sale are as follows: (Million yen) Fiscal year ended March 31, 2025 (As of March 31, 2025) Nine months ended December 31, 2025 (As of December 31, 2025) Assets held for sale Other financial assets － 1,822 Total － 1,822 Assets held for sale in the nine months ended Decenber 31 2025 consist of investment securities held by the Group. These investment securities are classified as assets held for sale because their sale is highly probable, and they are expected to be sold within one year. 7. Investments accounted for using equity method The carrying amount of investments in associates is as follows: (Million yen) As of March 31, 2025 As of December 31, 2025 Total carrying amount 205,485 306,448 Financial information for associates is as follows. Additionally, these amounts are subsequent to the incorporation of the Group’s ownership ratios. (Million yen) Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) Profit 12,037 19,379 Other comprehensive income (130) 2,913 Total comprehensive income for the period 11,907 22,293 Note: Share of profit (loss) of investments accounted for using equity method in the condensed quarterly consolidated statement of profit or loss for the nine months ended December 31, 2025 includes a gain from the bargain purchase of 3,968 million yen, arising from a newly affiliated company accounted for using the equity method. No such gain was recorded during the same period of the previous fiscal year.
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17 8. Bonds payable Nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024) The Company issued bonds payable of 95,000 million yen in the nine months ended December 31, 2024. The breakdown is as follows: The 48th unsecured bond of 75,000 million yen (Annual interest rate: 2.05%, Date of issue: April 26, 2024, Term of redemption: April 25, 2031). The 49th unsecured bond of 10,000 million yen (Annual interest rate: 1.073%, Date of issue: September 11, 2024, Term of redemption: September 10, 2027); The 50th unsecured bond of 10,000 million yen (Annual interest rate: 1.580%, Date of issue: September 11, 2024, Term of redemption: September 11, 2029) Nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025) The Company issued bonds payable of 108,460 million yen in the nine months ended December 31 , 202 5. The breakdown is as follows: USD-denominated senior unsecured bond of 73,460 million yen (Annual interest rate: 6.130%, Date of issue: September 18, 2025, Term of redemption: September 18, 2035). The 52nd unsecured bond of 10,000 million yen (Annual interest rate: 1.654%, Date of issue: October 23, 2025, Term of redemption: October 23, 2028) The 53rd unsecured bond of 10,000 million yen (Annual interest rate: 2.271%, Date of issue: October 23, 2025, Term of redemption: October 23, 2030) The 54th unsecured bond of 15,000 million yen (Annual interest rate: 2 .656%, Date of issue: November 6, 2025, Term of redemption: November 6, 2031) 9. Capital and reserves Nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024) The Company canceled 780,000 shares of treasury stock on May 31, 2024 , pursuant to the resolution adopted at the Board of Directors meeting held on May 15, 2024. Nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025) The Company canceled 280,000 shares of treasury stock on December 29, 2025, pursuant to the resolution adopted at the Board of Directors meeting held on November 11, 2025.
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18 10. Earnings per share Basic earnings per share and the basis of its calculation, and diluted earnings per share and the basis of its calculation are as follows: Nine months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) Nine months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) (1) Basic earnings per share 2,333.86 yen 2,566.04 yen (Basis of calculation) Profit attributable to owners of parent (million yen) 102,784 112,671 Amount not attributable to ordinary equity holders of the parent (million yen) 15 28 Amount used in calculation of basic earnings per share (million yen) 102,768 112,643 Weighted average number of ordinary shares (thousand shares) 44,033 43,897 (2) Diluted earnings per share 2,329.94 yen 2,562.80 yen (Basis of calculation) Amount used in calculation of basic earnings per share (million yen) 102,768 112,643 Adjustment to profit for potential shares in subsidiaries and associates (million yen) (94) (110) Amount used in calculation of diluted earnings per share (million yen) 102,674 112,533 Weighted average number of ordinary shares (thousand shares) 44,033 43,897 Increase in ordinary shares from share acquisition rights (thousand shares) 33 12 Weighted average number of ordinary shares used in calculation of diluted earnings per share (thousand shares) 44,607 43,910 11. Significant subsequent events Issuance of unsecured straight corporate bonds The Group approved the issuance of unsecured straight bonds with an issuance limit of 100 billion yen pursuant to the resoluton adopted at the Board of Directors meeting held on February 12, 2026. The primary use of proceeds will consist of the redemption of corporate bonds and repayment of borrowings. The timing of issuance, the amount to be issued, and othe details will be determined after a comprehensive consideration of market demand, interest rate trends, and other relevant factors. 12. Notes on going concern assumption No applicable items 13. Date of approval The accompanying condensed quarterly consolidated financial statements were approved at the Board of Directors meeting held on February 12, 2026.