QAs from earnings release meetings and others

November 6, 2026：2Q26 Financial Results Briefing (Online)

(*)This is a summary of questions and answers took place at the Briefing.
Abbreviations: FY26 stands for a fiscal year ending March 31, 2027, FY27 stands for a fiscal year ending March 31, 2028, 2Q26 stands for the second quarter of FY26, 1H26 stands for the first half of FY26, NW Services stands for Network Services, SI stands for Systems Integration, and YoY stands for Year over Year.

Question: You have revised your FY26 full-year financial forecasts upward. Could you explain your assumptions for revenue and gross profit for SI and NW Services?

Answer: For SI, our outlook reflects substantial revenue growth in 1H26, driven mainly by contributions from large-scale GPU infrastructure construction and operation projects, as well as the current order environment and order backlog. Of the order backlog as of the end of 2Q26, most of the approximately JPY20.5 billion related to one GPU infrastructure construction and operation project is expected to be recognized as revenue in FY27. We expect SI gross margin to decline slightly YoY, mainly due to a higher share of systems construction revenue from large-scale, hardware-centric projects. For NW Services, we expect security services revenue to grow as demand for cybersecurity rises. That said, as NW Services revenue is driven by the accumulation of monthly recurring revenue, we expect the trend seen in 1H26 to continue.

Question: As cybersecurity risks rise, could you explain the demand trends for security-related services?

Answer: Inquiries from major Japanese companies about security consulting and assessments, as well as security-related SI projects, have been increasing.

Question: Revenue at PTC SYSTEM (S) PTE LTD (“PTC”), a subsidiary in Singapore, has been growing rapidly, driven mainly by GPU infrastructure construction and operation projects. Could you explain its project execution structure and risk management?

Answer: Since many of PTC’s projects are hardware-centric, revenue growth does not require a proportional increase in headcount, and PTC has secured the resources necessary for project execution. In addition, in cooperation with IIJ, PTC conducts credit checks on business partners and reviews contract terms. It also appropriately manages suppliers as well as procurement and delivery schedules.

Question: You have indicated “consolidated revenue of over JPY500.0 billion” as a target for the next Mid-term Plan. Could you explain your approach to achieving it?

Answer: We are currently developing the next Mid-term Plan. By further strengthening the growth of monthly recurring revenue and expanding one-time SI revenue, we aim to achieve consolidated revenue of over JPY500.0 billion as a milestone toward further business growth.