As a company that continuously pursues M&A, our intrinsic performance which we should deliver to our investors in a timely manner is the total amount of cash flow generated by the existing consolidated subsidiaries in a year, assuming zero M&A in the future.

The intrinsic performance is almost equal to the next fiscal year’s (not the current one’s) earnings forecast. This is because a company acquired through M&A this fiscal year will contribute only a few months in the “current” fiscal year but will contribute 12 months of earnings in the “next” fiscal year.

The following is our earnings forecast for the next fiscal year, which shows the intrinsic performance.

• Revenue:    200.0 billion yen
• EBITDA:     27.0 billion yen
• Net income before amortization of goodwill (≒Net income under IFRS):   10.4 billion yen

We plan to transition to IFRS at the end of the next fiscal year. At the beginning of the current fiscal year, we projected net income before amortization of goodwill (equivalent to IFRS net income) of JPY 8.0 billion (P/E 19x) and for the next fiscal year, even under the assumption of no additional M&A, we expect earnings to increase by +2.4 billion yen, revising our forecast upward to JPY 10.4 billion (P/E 15x).

The above figures refer to next fiscal year’s outlook (not this fiscal year), which is not subject to statutory timely disclosure requirements. Nevertheless, we have voluntarily disclosed this information through our M&A materials, as we consider it important for investors to have timely access to our expected performance. For details, please refer to “page 13 of “M&A announced today” disclosed on August 27, 2025.

(p13 of “M&A announced today” disclosed on August 27, 2025)