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• Strategic Transformation: The company is actively advancing the "Reignite2030" structural reform led by the CEO, with top-line growth as a core priority. The core goal of the reform is to shift the business model from reliance on one-time license sales to long-term strategic partnership with customers, focused on growing recurring revenue and high-margin professional services. Key operational progress includes the establishment of a new consulting team to expand service coverage and pursue larger long-term client engagements. The structural framework of Reignite2030 is largely complete, and the company will move into the expansion phase next.

• Contract Liability Growth: Total contract liability (deferred revenue that will be recognized in future periods) grew 90% year-over-year to 4.4 billion yen, doubling from 2.3 billion yen in the prior year. This growth is driven by increases in multi-year Atlassian cloud contracts and long-term agreements for professional services (consulting, system integration, support), and serves as evidence that the company's strategic transformation is progressing as planned. The cumulative growth of contract liability has steadily increased quarter-over-quarter.

• External Recognition: Ricksoft has been selected for 8 consecutive years for the Financial Times "High-Growth Companies Asia-Pacific" list of the top 500 high-growth firms in the region, in recognition of the company's consistent top-line growth during the structural reform period.

• Global Expansion: As part of the Reignite2030 global expansion initiative, the company entered into a capital and business alliance with BiPlus Software, a Vietnamese software firm.

• Profit and Cost Management: Gross profit remained flat year-over-year despite revenue growth due to rising Atlassian license costs. Selling, general and administrative (SG&A) expenses were well controlled; even with the inclusion of a severance allowance for a departing director, SG&A growth did not outpace revenue growth. Headcount has remained largely stable year-over-year, with a slight decline tied to the structural reform process.

• For the next fiscal year (FY2027 February), management targets 12% year-over-year revenue growth, with a goal of exceeding 12.1 billion yen in total revenue.
• Management expects operating profit to decline year-over-year in the next fiscal year. This downward projection is driven by three key factors: the continued growth of contract liability (which defers revenue and profit recognition to future periods), temporary order restrictions implemented during the Reignite2030 reform process, and the reclassification of long-term client contract revenue to contract liability.
• No changes to the existing investment strategy and key performance target plan outlined in Reignite2030.

1. Technology Solution Business: Total revenue of 86.4 billion yen (over 80% of total company revenue), representing a 19.7% year-over-year increase. This segment is dominated by Atlassian products, with cloud version Atlassian revenue exceeding 50% of total Atlassian revenue in FY2026. 2. Professional Services Business: Revenue grew 53.5% year-over-year from 0.9 billion yen to 1.4 billion yen. 3. In-house Product Business: Reported revenue declined 13.6% year-over-year due to an accounting change: the company began amortizing cloud product revenue monthly and reclassified 100 million yen of revenue to contract liability, so the underlying business performance is not stagnant despite the reported decline. Overall company total revenue was 10.8 billion yen, a 20.4% year-over-year increase.

• Rising Atlassian license costs have put downward pressure on current operating profit, which was 370 million yen in FY2026, a 17.8% year-over-year decline. This is the core challenge facing the company's profitability today.
• The shift to amortizing cloud revenue and building contract liability pushes current revenue and profit recognition into future periods, which keeps near-term reported profit lower than it would be under the prior accounting model.
• As the company enters the expansion phase of Reignite2030, headcount and SG&A (particularly personnel expenses) are expected to increase in coming periods.

Q: How is the business transformation from license sales to professional services progressing, and what is the growth outlook for this segment? / A: The transformation is progressing on plan. Professional services grew 53.5% year-over-year in FY2026, outpacing the growth of the legacy license business. The newly established consulting team is expanding the company's service offerings to support larger long-term client engagements, which will further drive growth in this higher-margin segment going forward. The company's strategic priority remains expanding professional services to offset rising license costs and improve long-term profitability.

Q: How will the large growth in contract liability impact future revenue and profit? / A: The 4.4 billion yen in contract liability is composed of deferred revenue from multi-year Atlassian cloud contracts and long-term professional service agreements, which will be recognized as revenue and profit in future periods. The strong growth of contract liability confirms that the company's shift to a recurring revenue, long-term client partnership model is working as intended, and will provide solid support for future earnings growth. Near-term profit will remain suppressed as more revenue is deferred, but this is a deliberate strategic choice that will benefit the business long-term.

Q: What is the strategic goal of the alliance with BiPlus Software, and how does this fit into the company's global expansion plans? / A: The alliance with BiPlus Software in Vietnam is the first key milestone for the company's global expansion initiative under Reignite2030. It will allow Ricksoft to expand its service delivery capacity and access new regional markets for Atlassian-based solutions and professional services. Further details on the execution of the global expansion roadmap will be shared as the partnership progresses.