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Overall Consolidated Financial Performance

• Total consolidated revenue for the third quarter was 46.188 billion yen, up 13.9% year-over-year; operating profit was 5.11 billion yen, up 9.0% year-over-year; ordinary profit was 4.893 billion yen, up 5.5% year-over-year; net profit attributable to parent company shareholders was 3.303 billion yen, up 30.7% year-over-year; quarterly net profit per share was 151.53 yen.
• Strong growth in net profit was driven by one-time gains from the liquidation of an investment partnership, plus a sustained reduction in non-controlling interest profit following the 100% acquisition of Gigaprise completed in the prior fiscal year, which added 633 million yen in incremental profit compared to the prior year period.
• Cost of goods sold has grown in line with revenue growth, but selling, general and administrative costs have improved in efficiency from integrated group operations, allowing steady operating profit growth.
• On the balance sheet, retained earnings have grown alongside rising profits, and interest-bearing debt has been reduced through ongoing repayment, pushing the equity ratio up to 22.9%.

Progress on Medium-Term Management Plan "SiLK VISION 2027"

• The 10-year plan from 2021 to 2030 is split into three medium-term plans, and SiLK VISION 2027 is currently at the midpoint of the overall 10-year strategy, with the plan's final year being the 2027 April term. The plan sets targets of 7-10% CAGR for revenue and 13% CAGR for operating profit. As of the current quarter, revenue growth is outpacing the targeted CAGR, while operating profit is progressing in line with plan despite costs from global expansion and new growth investments.

New Growth Driver Initiatives

• Capital and business alliance with SoftBank: The alliance is advancing joint development of web3 technology proof of concept, co-development of smartphone services, joint group procurement of cost-competitive network lines, and review of mobile expansion and discount initiatives. This collaboration is intended to improve the cost competitiveness of communications infrastructure and strengthen the group's overall profit base. Progress is also ongoing on building a next-generation digital foundation leveraging Trusted Web and decentralized ID (DID).
• Medical DX collaboration with Fujita Gakuen: Co-development of a web3-based personal health record (PHR) application has completed the proof of concept phase and is now moving toward commercialization. A My Number Card-linked identity verification foundation has already been established, and the group is now planning platform expansion to other medical institutions using the Fujita Medical University Hospital implementation as a reference model.
• Gigaprise business expansion: Gigaprise is pursuing M&A to strengthen its business base, with a core priority of expanding market share for its flagship multi-unit dwelling ISP service, and is actively pursuing multiple partnership opportunities with other industry players.
• Overseas expansion led by Fullspeed and Forit: Fullspeed and Forit are advancing Asia-focused overseas expansion under the medium-term plan, having already acquired YOYO Holdings, which operates primarily in Indonesia. The company is making aggressive upfront investments including local organizational building, and collaboration with a large global agency for YOYO's PopStar service is already progressing concretely. The team is working toward a target of 24 million USD in annual transaction value for the 2027 April term (noted this is transaction value, not revenue, which will largely be recorded on a net basis).
• New entertainment initiative: Collaboration with entertainment companies is progressing on developing non-centralized entertainment services leveraging the Portfolia platform. The company is advancing discussions to pursue proof of concept and commercialization across multiple areas, including next-generation user systems that let users control their own personal information via blockchain, DID and digital wallets, as well as fan economy and inbound tourism services.
• StandAlone platform development: The company is building a platform leveraging Portfolia to expand the StandAlone business, and recently won contracts to launch the official fan club "K's Room" for actor Kohei Matsushita and the official app "Studio R" for professional soccer player Ryoma Watanabe, which has already been released.

Group Management Strengthening

• Under the 2026 April term theme of "One freebit", the company is advancing group-wide initiatives to become a web3-native implementation company. The group is building an internal talent database and implementing a CMS for consolidated group cash management to improve future capital efficiency.

• Management maintains that full-year 2026 April term performance remains on track to meet original guidance, with all revenue and profit segments progressing solidly through the third quarter, and the fourth quarter expected to progress in line with management projections.
• For SiLK VISION 2027, the medium-term plan maintains its target of 63.0 billion yen to 70.0 billion yen in revenue and 8.0 billion yen in operating profit for the plan's final 2027 April term, with the company continuing to execute required initiatives through the remainder of the current fiscal year to meet these targets.
• Management will continue to allocate growth investment to the Corporate & Creator 5G DX Support Business in the remaining quarter of the 2026 April term to lay the groundwork for next-year growth.

1. 5G Infrastructure Support Business: Operating profit of 1.467 billion yen, representing a 39.0% increase year-over-year. Despite a decline in fixed network service usage and increased shared costs from talent strengthening, growth in mobile service utilization offset these headwinds. Long-term recurring stock revenue is growing steadily, with continued expansion of the freebit MVNO Pack service, while the corporate direct sales freebit Business segment has followed through on planned promotional spending this term.

2. 5G Lifestyle Support Business: Operating profit of 3.026 billion yen, representing a 13.3% increase year-over-year. While the DTI-led 5G Lifestyle fixed network segment continues to see usage declines and web3-related investment costs have been incurred, the segment's core 5G Homestyle ISP service for multi-unit dwellings from Gigaprise has delivered strong growth. As of the end of January 2026, 5G Homestyle reached 1.433 million cumulative service units, with stock revenue growing in line with subscriber growth. The segment has also expanded into IoT and security offerings, with 21,509 installed cloud camera service units as of January 2026, an increase of 5,582 units from the end of the prior fiscal year.

3. Corporate & Creator 5G DX Support Business: Revenue increased 17.4% year-over-year driven by growth in the domestic affiliate service business centered on Fullspeed Group operations. However, operating profit declined year-over-year due to aggressive upfront investment in global expansion and new platform development, which management expects will deliver profit contributions in future periods.

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