Interim report
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Summary of Consolidated Financial Results for the Second Quarter (First Half) of the Fiscal Year Ending January 31, 2027 [Japanese GAAP] September 10, 2026 Name of listed company: Computer Engineering & Consulting Ltd. Listed exchange: Tokyo Code: 9692 URL: https://www.cec-ltd.co.jp Representative: (Title) Representative Director & President (Name) Takashi Himeno Contact: (Title) General Manager, Accounting & Finance Division (Name) Yoshiyuki Nakamura Tel. +81-(0)3-5789-2441 Scheduled Date of filing of Interim report: September 11, 2026 Scheduled date of dividend payments: September 30, 2026 Supplementary materials prepared for quarterly financial results: Yes Briefing held on quarterly financial results: Yes (for institutional investors and analysts) (Rounded down to the nearest million yen) 1. Consolidated financial results for the first half of the fiscal year ending January 31, 2027 (February 1, 2026 through July 31, 2026) (1) Consolidated operating results (Cumulative) (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income attributable to owners of parent Million yen % Million yen % Million yen % Million yen % 1H of FY ending Jan. 2027 35,080 13.7 4,160 20.5 4,234 20.4 2,883 20.9 1H of FY ended Jan. 2026 30,843 11.9 3,451 6.2 3,516 7.6 2,384 7.7 (Note) Comprehensive income: 1H of FY ending January 2027 2,844 million yen 18.0% 1H of FY ended January 2026 2,411 million yen (7.7)% Net income per share Diluted net income per share Yen Yen 1H of FY ending Jan. 2027 92.65 92.58 1H of FY ended Jan. 2026 75.50 75.43 (2) Consolidated financial position Total assets Net assets Equity ratio Million yen Million yen % 1H of FY ending Jan. 2027 62,159 43,034 69.2 FY ended Jan. 2026 62,210 42,603 68.4 (Reference) Total shareholders’ equity: 1H of FY ending January 2027 43,000 million yen FY ended January 2026 42,581 million yen 2. Dividends Annual dividends Q1 end Q2 end Q3 end Year end Total Yen Yen Yen Yen Yen FY ended Jan. 2026 – 30.00 – 40.00 70.00 FY ending Jan. 2027 – 40.00 FY ending Jan. 2027 (Forecast) – 45.00 85.00 (Note) Revision to most recently announced dividend forecast: No ne 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.
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3. Forecasts of consolidated financial results for the fiscal year ending January 31, 2027 (February 1, 2026 through January 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share Million yen % Million yen % Million yen % Million yen % Yen Full year 70,500 7.0 8,320 13.4 8,420 13.2 5,900 13.4 191.01 (Note) Revision to most recently announced financial results forecast: None *Notes (1) Significant changes in scope of consolidation: None (2) Application of accounting policies specific to the preparation of interim consolidated financial statements: None (3) Changes in accounting policies or estimates, restatements: (i) Changes in accounting policies accompanying revisions of accounting standards, etc.: None (ii) Changes other than those under (i) above: None (iii) Changes in accounting estimates: None (iv) Restatements: None (4) Number of shares issued and outstanding (common stock) (i) Number of shares issued and outstanding (including treasury stock) 1H of FY ending Jan. 2027 35,168,200 shares FY ended Jan. 2026 35,168,200 shares (ii) Number of treasury shares of at the end of period 1H of FY ending Jan. 2027 4,509,236 shares FY ended Jan. 2026 3,957,736 shares (iii) Average number of shares outstanding during period (first half) 1H of FY ending Jan. 2027 31,121,697 shares 1H of FY ended Jan. 2026 31,590,122 shares * This Summary of Interim Consolidated Financial Results is not subject to review by a certified public accountant or audit firm. * Notes on forward-looking statements and other notes (Forward-looking statements) Forward-looking statements, including the forecasts of financial results contained herein, are based on information currently available to the Company and certain assumptions the Company deems reasonable. Actual results and performance may differ significantly from forecasts for various reasons. Please see page 4 (Notes on Forecasts of Consolidated Financial Results and Other Forward-Looking Information) of the accompanying materials for the conditions on which assumptions underlying the forecasts are based, important points concerning the use of forecasts, and other related information. (How to obtain supplementary briefing materials) The Company will post supplementary briefing materials on the Company website (https://www.cec-ltd.co.jp) concurrently with this Summary of Consolidated Financial Results. Additionally, the Company will release on-demand video of today’s planned financial results briefing for analysts and institutional investors on Monday, September 14, 2026.
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- 1 - Contents of accompanying materials 1. Overview of Business Results, etc. ................................ ................................ ................................ ................................ .......... 2 (1) Overview of Business Results in the Interim Period ................................ ................................ ................................ ............... 2 (2) Overview of Financial Position in the Interim Period ................................ ................................ ................................ ............. 2 (3) R&D Activities ................................ ................................ ................................ ................................ ................................ .... 3 (4) Notes on Forecasts of Consolidated Financial Results and Other Forward-Looking Information ................................ ............. 4 2. Interim Consolidated Financial Statements and Major Notes ................................ ................................ ................................ .... 5 (1) Interim Consolidated Balance Sheet ................................ ................................ ................................ ................................ ...... 5 (2) Interim Consolidated Statement of Income and Interim Consolidated Statement of Comprehensive Income ............................ 7 (Interim Consolidated Statement of Income)................................ ................................ ................................ .......................... 7 (Interim Consolidated Statement of Comprehensive Income) ................................ ................................ ................................ . 8 (3) Interim Consolidated Statement of Cash Flows ................................ ................................ ................................ ...................... 9 (4) Notes on the Interim Consolidated Financial Statements ................................ ................................ ................................ ...... 11 (Segment Information, etc.) ................................ ................................ ................................ ................................ ................ 11 (Notes in the Event of Significant Changes in the Amount of Shareholders’ Equity) ................................ ............................. 12 (Notes on the Going Concern Assumption) ................................ ................................ ................................ ......................... 12 3. Other ................................ ................................ ................................ ................................ ................................ .................... 12 Orders received and order backlog ................................ ................................ ................................ ................................ ...... 12
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- 2 - 1. Overview of Business Results, etc. (1) Overview of Business Results in the Interim Period During the interim consolidated period under review (February 1, 2026, through July 31, 2026), Japan’s economy followed a path of gentle recovery, supported by improving employment and income conditions and steady inbound demand. However, the future outlook remained uncertain for various reasons, including rising energy and raw materials costs associated with heightened geopolitical risks, such as those in the Middle East, fluctuations in exchange rates, and rising costs associated with US trade policies and higher labor costs. In the information services industry, corporate appetite for investments related to business structural reforms and digitalization has remained strong. In particular, the deployment of generative AI and other advanced technologies by corporate customers increased for uses aimed at raising business efficiency and creating new business. In system development engineering fields, full-scale initiatives to improve productivity and ensure quality by using AI are underway. Demand for cybersecurity solutions has also remained high due to growing awareness of information security issues and the need to respond to increasingly sophisticated cyberattacks. The CEC Group promoted business activities based on both business and corporate growth strategies in line with Medium- term Management Plan 2025-2027, striving to achieve sustained growth in corporate value by pursuing solutions to social and industrial challenges. Additionally, to increase capital efficiency and enhance shareholder returns, the Group is proceeding with the purchase of up to 2,000 million yen in treasury stock under a resolution passed by the Board of Directors at its meeting held on June 11, 2026, as well as implementing flexible capital policies, including plans to retire all shares in treasury stock purchased by the end of the fiscal year. Business results for the interim consolidated period under review showed net sales up 4,236 million yen (13.7%) from the same period of the previous year to 35,080 million yen, backed by strong ICT investment by customers. Despite higher SG&A expenses, profit growth, centered on highly profitable focus business areas, drove gains of 708 million yen (20.5%) in operating income to 4,160 million yen; 718 million yen (20.4%) in ordinary income to 4,234 million yen; and 498 million yen (20.9%) in net income attributable to owners of the parent to 2,883 million yen. Business results for the individual segments are reviewed below. (Integration Segment) The focus business area of Migration Services demonstrated double-digit growth as efforts over the course of the preceding fiscal year for legacy migration projects generated steady results. In Microsoft Services business, although Microsoft Dynamics 365 was in a lull, an increase in Microsoft 365 implementation projects kept the business level with the previous fiscal year. The Systems and Infrastructure Development business showed steady progress, driven primarily by backbone systems development for the automotive industry, while infrastructure development continued to be led by large-scale projects for government agencies, as in the previous fiscal year. As a result, segment net sales grew by 4,071 million yen (20.7%) to 23,746 million yen. Operating income rose 808 million yen (19.4%) to 4,976 million yen, driven by large-scale projects for government agencies in the Systems and Infrastructure Development business. (Connected Segment) Data utilization infrastructure development for the automotive industry drove performance in the focus business area of Data Monetization business, which grew as planned. Despite a decline in EV-related projects, Cloud Service Development business sales were flat year on year, supported by strong cloud-related demand. In Control Simulation business, although FA control development was in a lull, growth in in-vehicle control development kept sales level with the previous fiscal year. In Quality Management business, although demand grew for next-generation verification systems incorporating AI, sales fell due to a decrease in EV-related projects. As a result, segment net sales increased by 1 million yen (0.0%) to 5,946 million yen. Operating income rose by 60 million yen (5.2%) to 1,228 million yen, driven by growth in focus business areas and continuous productivity improvements in development projects. (Solution Segment) The focus business area of Security Services business drove segment performance due to success in securing large-scale projects for the SmartSESAMEⓇ in-house product. Despite growth in orders received, sales in the Data Center business declined due to the expiration of certain contracts, which was associated with our business reorganization, and delays in securing new contracts. Industry-specific solutions continued to perform well, due to success in securing large-scale healthcare projects. As a result, segment net sales grew 163 million yen (3.1%) to 5,386 million yen. Operating income rose 419 million yen (46.6%) to 1,321 million yen due to sales growth and expanded sales of in-house products. (2) Overview of Financial Position in the Interim Period (Total assets) Total assets fell by 51 million yen from the end of the previous consolidated fiscal year to 62,159 million yen. This was due mainly to a decrease of 2,020 million yen in notes and accounts receivable - trade, and contract assets, which was partially offset by increases of 1,205 million yen in cash and deposits and 594 million yen in buildings and structures, net.
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- 3 - (Liabilities) Total liabilities amounted to 19,125 million yen, down 482 million yen from the end of the previous consolidated fiscal year. This was mainly due to a decrease of 4,457 million yen in accounts payable - trade and an increase of 3,500 million yen in contract liabilities. (Net assets) Net assets increased by 430 million yen from the end of the previous consolidated fiscal year to 43,034 million yen. This was mainly due to an increase of 1,635 million yen in retained earnings, partially offset by a decrease of 1,176 million yen resulting from an increase in treasury shares. (Overview of Cash Flows) Cash and cash equivalents (“funds” hereinafter) as of the end of the interim consolidated period under review stood at 26,405 million yen, up 1,205 million yen from the end of the previous fiscal year. (i) Cash flows from operating activities Funds grew 5,355 million yen due to operating activities (for an increase of 512 million yen in proceeds from the same period of the previous year), due mainly to interim income before income taxes of 4,234 million yen, an increase of 3,500 million yen in contract liabilities, and decreases of 2,021 million yen in notes and accounts receivable - trade and 4,458 million yen in notes and accounts payable - trade. (ii) Cash flows from investing activities Funds declined by 1,590 million yen due to investment activities (for an increase of 221 million yen in expenditures from the same period of the previous year), due mainly to expenditures of 672 million yen on the purchase of non-current assets and 451 million yen on purchase of shares in subsidiaries and associates. (iii) Cash flows from financing activities Funds declined by 2,564 million yen due to financing activities (for a decline of 404 million yen in spending from the same period of the previous year), due mainly to payments of 1,246 million yen in dividends and expenditures of 1,176 million yen to acquire treasury shares. (3) R&D Activities During the interim consolidated cumulative period under review, the Company played a central role in promoting R&D activities intended to create distinctive products and services capable of meeting changing client needs. Specifically, we conducted the following activities under the themes of strengthening the competitiveness of our proprietary products through new product development and enhancing the technological capabilities to provide valuable ICT services to clients. R&D expenses during the interim consolidated period under review were down 46.1% from the same period of the previous fiscal year to 99 million yen. Reviewed below are the major R&D activities undertaken during the period: (Integration Segment) We pursued the following R&D activities in this segment, which draws on information systems planning, consulting, and applications development to provide comprehensive ICT solutions for customer businesses: • Planning and design of new solutions using the Microsoft cloud service integration solution ConvergentⓇ • Functional expansion development for the Re@noveⓇ migration service and research and development to explore new AI- driven services As a result, R&D expenses in this segment were down 64.8% from the same period of the previous fiscal year to 3 million yen. (Connected Segment) We pursued the following R&D activities in this segment, which provides products and services that support cloud-linked IoT systems development and analysis and utilization of data: • Development of the ResolanaTM data utilization infrastructure • Development of additional functions for the FacteyeⓇ manufacturing equipment operation monitoring and performance management system • Verification of efficacy and development of AI agents for business applications through demonstration testing with multiple customers, alongside research on AI models and technological verification related to the application of small-scale language models for specific business use cases • Demonstration studies on AI utilizing enterprise-specific knowledge and on guardrail technologies • Design and development of IoT data-collection infrastructure for in-vehicle use • Demonstration studies involving autonomous control of industrial robots using physical AI and digital twins As a result, R&D expenses in this segment were up 257.7% from the same period of the previous fiscal year to 56 million yen.
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- 4 - (Solution Segment) Drawing on advanced security technologies and robust data center services, we undertook the following R&D to provide solutions in a wide range of fields, including the public sector, education, logistics, medicine, and healthcare: • Functional enhancements development for ID lifecycle management for the SmartSESAMEⓇ office security solution • Development of additional functions for the LogiPullⓇ logistics ICT solution • Research and development on new services in the healthcare field As a result, R&D expenses in this segment were down 87.4% from the same period of the previous fiscal year to 15 million yen. (Companywide) We undertook the following R&D for cloud infrastructure for use across all segments: • Development and implementation of a shared BizAxis™ cloud integration platform As a result, companywide R&D expenses were down 36.8% from the same period of the previous fiscal year to 24 million yen. (4) Notes on Forecasts of Consolidated Financial Results and Other Forward-Looking Information For the consolidated earnings forecasts for the fiscal year ending January 31, 2027, please refer to “Notice Concerning Revisions to Full-Year Consolidated Earnings Forecasts (Upward Revision) for FYE January 2027,” announced on August 21, 2026. * Forecasts of business results reflect judgments based on information currently available. They do not guarantee that the Company will achieve the forecast results. Actual results may vary from forecast figures due to changing business conditions and other factors.
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- 5 - 2. Interim Consolidated Financial Statements and Major Notes (1) Interim Consolidated Balance Sheet (Unit: Million yen) Previous Consolidated Fiscal Year (January 31, 2026) Current Interim Consolidated Accounting Period (July 31, 2026) Assets Current assets Cash and deposits 25,200 26,405 Notes and accounts receivable - trade, and contract assets 13,613 11,593 Product 5,133 3,702 Work in progress 632 690 Other accounts receivable 8 53 Others 1,625 1,878 Allowance for doubtful accounts (2) (1) Total current assets 46,210 44,322 Non-current assets Property, plant, and equipment Buildings and structures, net 3,951 4,545 Land 2,007 2,007 Other, net 892 1,263 Total property, plant, and equipment 6,851 7,816 Intangible assets Goodwill 638 593 Others 188 199 Total intangible assets 827 793 Investments and other assets Others 8,333 9,238 Allowance for doubtful accounts (11) (11) Total investments and other assets 8,321 9,226 Total non-current assets 16,000 17,836 Total assets 62,210 62,159
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- 6 - (Unit: Million yen) Previous Consolidated Fiscal Year (January 31, 2026) Current Interim Consolidated Accounting Period (July 31, 2026) Liabilities Current liabilities Accounts payable - trade 7,123 2,665 Short-term loans payable 352 350 Current portion of long-term loans payable 2 － Income taxes payable 1,429 1,593 Contract liabilities 4,165 7,665 Allowance for bonuses 905 1,272 Allowance for performance-linked remuneration – 24 Allowance for share-based remuneration – 7 Provision for loss on orders received 4 4 Asset retirement obligations 23 1,139 Others 3,394 3,367 Total current liabilities 17,400 18,091 Non-current liabilities Long-term loans payable 13 － Long-term accounts payable 22 22 Provision for directors’ retirement benefits 2 2 Net defined benefit liability 106 106 Asset retirement obligations 1,973 889 Others 88 13 Total non-current liabilities 2,206 1,033 Total liabilities 19,607 19,125 Net assets Shareholder equity Capital stock 6,586 6,586 Capital surplus 6,733 6,733 Retained earnings 32,619 34,254 Treasury shares (5,408) (6,584) Total shareholder equity 40,531 40,989 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,352 1,286 Foreign currency translation adjustment 22 27 Remeasurements of defined benefit plans 674 696 Total accumulated other comprehensive income 2,049 2,010 Subscription rights to shares 22 33 Total net assets 42,603 43,034 Total liabilities and net assets 62,210 62,159
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- 7 - (2) Interim Consolidated Statement of Income and Interim Consolidated Statement of Comprehensive Income (Interim Consolidated Statement of Income) (Unit: Million yen) Previous Interim Consolidated Cumulative Period (February 1, 2025 - July 31, 2025) Current Interim Consolidated Cumulative Period (February 1, 2026 - July 31, 2026) Net sales 30,843 35,080 Cost of sales 22,713 25,720 Gross profit 8,130 9,360 Selling, general, and administrative expenses 4,678 5,199 Operating income 3,451 4,160 Non-operating income Interest income 10 32 Dividends received 17 29 Foreign exchange gains 2 – Dividends from insurance 9 14 Subsidy income 18 – Others 11 9 Total non-operating income 69 85 Non-operating expenses Interest expenses 1 2 Loss on retirement of non-current assets 0 4 Foreign exchange loss － 2 Commission for purchase of treasury shares 1 1 Others 0 0 Total non-operating expenses 4 11 Ordinary income 3,516 4,234 Net income before income taxes 3,516 4,234 Income taxes - current 1,126 1,388 Income taxes - deferred 4 (37) Total income taxes 1,131 1,351 Net income 2,384 2,883 Net income attributable to owners of parent 2,384 2,883
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- 8 - (Interim Consolidated Statement of Comprehensive Income) (Unit: Million yen) Previous Interim Consolidated Cumulative Period (February 1, 2025 - July 31, 2025) Current Interim Consolidated Cumulative Period (February 1, 2026 - July 31, 2026) Net income 2,384 2,883 Other comprehensive income Valuation difference on available-for-sale securities 59 (66) Foreign currency translation adjustment (5) 4 Remeasurements of defined benefit plans (28) 22 Total other comprehensive income 26 (38) Comprehensive income 2,411 2,844 (Comprehensive income attributable to) Comprehensive income attributable to owners of parent 2,411 2,844
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- 9 - (3) Interim Consolidated Statement of Cash Flows (Unit: Million yen) Previous Interim Consolidated Period (From February 1, 2025 to July 31, 2025) Current Interim Consolidated Period (From February 1, 2026 to July 31, 2026) Cash flows from operating activities Profit before income taxes 3,516 4,234 Depreciation 371 404 Amortization of goodwill 29 45 Increase (decrease) in provision for bonuses 112 366 Increase (decrease) in provision for performance- linked compensation 21 24 Increase (decrease) in provision for stock-based compensation 6 7 Increase (decrease) in provision for loss on order received 0 (0) Increase (decrease) in provision for directors’ retirement benefits (5) (0) Increase (decrease) in net defined benefit liability (6) 0 Decrease (increase) in net defined benefit asset (133) (190) Increase (decrease) in allowance for doubtful accounts 0 (1) Interest and dividend income (27) (61) Interest expenses 1 2 Loss on retirement of non-current assets 0 4 Increase (decrease) in contract liabilities 192 3,500 Decrease (increase) in notes and accounts receivable - trade 724 2,021 Decrease (increase) in inventories (132) 1,372 Decrease (increase) in other accounts receivable 18 (45) Decrease (increase) in other current assets (28) (126) Increase (decrease) in notes and accounts payable - trade 1,462 (4,458) Increase (decrease) in accrued consumption taxes 104 164 Increase (decrease) in accounts payable - other 91 (487) Increase (decrease) in accrued expenses (77) (210) Increase (decrease) in other current liabilities (88) (168) Others 86 125 Subtotal 6,241 6,523 Interest and dividend income received 27 61 Interest expenses paid (1) (2) Income taxes refund (paid) (1,422) (1,226) Cash flows from operating activities 4,843 5,355 Cash flows from investing activities Purchase of non-current assets (544) (672) Proceeds from sale of non-current assets 3 – Payments for asset retirement obligations (68) (22) Payments for lease and guarantee deposits (2) (3) Proceeds from collection of lease and guarantee deposits 118 14 Purchase of investment securities (100) (200) Purchase of shares of subsidiaries and associates – (451) Purchase of shares of subsidiaries resulting in change in scope of consolidation (705) – Other (69) (254) Cash flows from investing activities (1,369) (1,590)
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- 10 - (Unit: Million yen) Previous Interim Consolidated Period (From February 1, 2025 to July 31, 2025) Current Interim Consolidated Period (From February 1, 2026 to July 31, 2026) Cash flows from financing activities Net increase (decrease) in short-term loans payable (2) (2) Repayment of long-term loans payable (1) (15) Purchase of treasury shares (1,999) (1,176) Decrease (increase) in deposits for acquisition of treasury stock – (122) Dividend payment amount (964) (1,246) Proceeds from exercise of employee share options 0 – Cash flows from financing activities (2,969) (2,564) Effect of exchange rate change on cash and cash equivalents (5) 4 Net increase (decrease) in cash and cash equivalents 500 1,205 Cash and cash equivalents at the beginning of period 25,472 25,200 Cash and cash equivalents at the end of period 25,972 26,405
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- 11 - (4) Notes on the Interim Consolidated Financial Statements (Segment Information, etc.) [Segment information] Previous Interim Consolidated Cumulative Period (February 1, 2025 - July 31, 2025) Information on net sales and income/loss by reporting segment (Unit: Million yen) Reporting segment Adjustment (Note 1) Amount recognized on Interim Consolidated Statement of Income (Note 2) Integration Segment Connected Segment Solution Segment Total Net sales Sales to external customers 19,675 5,945 5,223 30,843 – 30,843 Inter-segment sales or transfers 57 160 17 236 (236) – Total 19,733 6,105 5,241 31,080 (236) 30,843 Segment profit 4,167 1,167 901 6,236 (2,784) 3,451 (Notes) 1. The adjustment of (negative) 2,784 million yen to segment profit consists mainly of Companywide expenses not allocated to individual reporting segments. Companywide expenses consist mainly of administrative-section expenses not allocated to individual reporting segments. 2. Segment profits are adjusted against operating income reported on the Interim Consolidated Statement of Income. Current Interim Consolidated Cumulative Period (February 1, 2026 - July 31, 2026) Information on net sales and income/loss by reporting segment (Unit: Million yen) Reporting segment Adjustment (Note 1) Amount recognized on Interim Consolidated Statement of Income (Note 2) Integration Segment Connected Segment Solution Segment Total Net sales Sales to external customers 23,746 5,946 5,386 35,080 – 35,080 Inter-segment sales or transfers 69 278 22 370 (370) – Total 23,816 6,224 5,409 35,450 (370) 35,080 Segment profit 4,976 1,228 1,321 7,525 (3,365) 4,160 (Notes) 1. The adjustment of (negative) 3,365 million yen to segment profit consists mainly of Companywide expenses not allocated to individual reporting segments. Companywide expenses consist mainly of administrative-section expenses not allocated to individual reporting segments. 2. Segment profits are adjusted against operating income reported on the Interim Consolidated Statement of Income.
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- 12 - (Notes in the Event of Significant Changes in the Amount of Shareholders’ Equity) (Acquisition and retirement of treasury shares) In its meeting held June 11, 2026, the Company Board of Directors resolved to acquire treasury shares pursuant to Article 156 of the Companies Act, applicable mutatis mutandis under Article 165, Paragraph 3 of the same Act, and to retire treasury shares under Article 178 of that Act. The status of this acquisition is reviewed below. Status of acquisition of treasury shares (as of July 31, 2026) Total number of shares acquired: 551,500 shares Total purchase price: 1,176 million yen Reference: Details of June 11, 2026 Board of Directors resolution 1. Reasons for acquisition and retirement of treasury shares The Company decided to acquire and retire treasury shares to strengthen capital efficiency and enhance the return of earnings to shareholders. 2. Details of matters related to this acquisition (1) Class of shares to be acquired: Company common stock (2) Total number of shares to be acquired: 1,200,000 shares (maximum) (3.84% of total shares issued and outstanding [not including treasury shares]) (3) Total acquisition price of shares to be acquired: 2,000 million yen (maximum) (4) Acquisition period: June 12–November 30, 2026 (5) Acquisition method: Market purchase on the Tokyo Stock Exchange (Market purchase under a discretionary contract on acquisition of treasury stock) 3. Details of matters related to the retirement of shares (1) Class of shares to be retired: Company common stock (2) Total number of shares to be retired: Total number of treasury shares acquired under 2 above (3.41% of total shares issued and outstanding prior to retirement) (3) Planned date of retirement: January 15, 2027 (Notes on the Going Concern Assumption) Not applicable 3. Other Orders received and order backlog Orders received and order backlog in the Integration Segment during the interim consolidated period declined due to a decrease relative to large-scale infrastructure development projects for the public sector recorded in the same period of the previous fiscal year. However, excluding these large-scale projects, orders received grew 18.3% year on year. Despite growth in data utilization infrastructure development for the automotive industry, orders received and order backlog in the Connected Segment were flat compared to the same period of the previous fiscal year, largely due to the termination of EV-related projects for certain customers. In the Solution Segment, orders received and order backlog grew due to factors including growth in sales of the Company’s in-house security products. Orders received during the interim consolidated cumulative period are broken down below by business segment. Segment Orders received (million yen) YoY change (%) Order backlog (million yen) YoY change (%) Integration Segment 24,262 78.3 15,232 76.7 Connected Segment 5,999 99.1 2,420 99.6 Solution Segment 8,727 150.0 9,208 156.7 Total 38,989 91.0 26,861 95.3