Interim report
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1 Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Consolidated Financial Results for the Six Months Ended September 30, 2025 (Based on Japanese GAAP) November 5, 2025 Company name: CUBE SYSTEM INC. Stock exchange listing: Tokyo Stock code: 2335 URL https://www.cubesystem.co.jp/en/ Representative: Representative Director and President Masahiro Nakanishi Inquiries: Seniority Corporate Officer, President's Office Hirofumi Kitagaki TEL +81-(0)3-5487-6030 Scheduled date to file Semi-annual Securities Report: November 13, 2025 Scheduled date to commence dividend payments: December 2, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results meeting: Yes (for institutional investors and analysts) (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ended September 30, 2025 9,142 1.3 730 37.0 738 39.7 555 (16.2) Six months ended September 30, 2024 9,022 0.1 533 (32.8) 528 (33.0) 662 32.1 Earnings per share Diluted earnings per share Yen Yen Six months ended September 30, 2025 36.78 – Six months ended September 30, 2024 44.01 – (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of September 30, 2025 14,924 11,172 74.9 736.12 As of March 31, 2025 14,366 10,874 75.7 722.27 2. Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2025 – 20.00 – 20.00 40.00 Year ending March 31, 2026 – 20.00 Year ending March 31, 2026 (Forecast) – 22.00 42.00 Notes: Revisions to the forecast of cash dividends most recently announced: None 3. Forecast of consolidated financial results for the year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 19,500 6.3 1,750 26.7 1,760 26.3 1,220 (3.3) 81.03 Note: Revisions to the financial results forecast announced most recently: None
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2 * Notes (1) Significant changes in the scope of consolidation during the six months ended September 30, 2025: No (2) Application of special accounting methods for preparing semi-annual consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior period financial statements: No (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 15,750,000 shares As of March 31, 2025 15,750,000 shares Number of treasury shares at the end of the period As of September 30, 2025 572,934 shares As of March 31, 2025 693,536 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 15,088,098 shares Six months ended September 30, 2024 15,042,690 shares
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3 Semi-annual consolidated financial statements Consolidated balance sheets (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 6,233 6,538 Accounts receivable - trade, and contract assets 3,338 3,235 Securities - 99 Work in process 1 10 Other 232 287 Total current assets 9,806 10,171 Non-current assets Property, plant and equipment 240 508 Intangible assets 3 12 Investments and other assets Investment securities 2,170 2,114 Retirement benefit asset 1,367 1,361 Other 777 756 Total investments and other assets 4,316 4,231 Total non-current assets 4,560 4,753 Total assets 14,366 14,924 Liabilities Current liabilities Accounts payable-trade 802 778 Short-term borrowings 230 230 Income taxes payable 206 275 Provision for bonuses 465 534 Provision for bonuses for directors (and other officers) 4 4 Provision for loss on orders received 29 16 Other 648 904 Total current liabilities 2,387 2,744 Non-current liabilities Provision for share-based payments 284 200 Provision for share awards 35 53 Asset retirement obligations 203 271 Other 580 481 Total non-current liabilities 1,104 1,007 Total liabilities 3,491 3,752 Net assets Shareholders' equity Share capital 1,400 1,400 Capital surplus 1,491 1,491 Retained earnings 7,496 7,736 Treasury shares (654) (546) Total shareholders' equity 9,733 10,081 Accumulated other comprehensive income Valuation difference on available-for-sale securities 727 780 Foreign currency translation adjustment 39 36 Remeasurements of defined benefit plans 374 274 Total accumulated other comprehensive income 1,141 1,090 Total net assets 10,874 11,172 Total liabilities and net assets 14,366 14,924
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4 Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 9,022 9,142 Cost of sales 7,152 6,964 Gross profit 1,869 2,178 Selling, general and administrative expenses Provision for bonuses for directors (and other officers) 1 4 Salaries and allowances 356 363 Provision for bonuses 73 84 Retirement benefit expenses 5 (3) Provision for share-based payments 47 24 Other 851 973 Total selling, general and administrative expenses 1,336 1,447 Operating profit 533 730 Non-operating income Interest income 2 2 Dividend income 5 5 Gain on consumption tax 1 4 Other 1 0 Total non-operating income 11 13 Non-operating expenses Interest expenses 0 1 Foreign exchange losses 6 0 Commission expenses 1 1 Loss on investments in investment partnerships 7 2 Other 0 - Total non-operating expenses 16 6 Ordinary profit 528 738 Extraordinary income Gain on revision of retirement benefit plan 359 - Gain on sale of investment securities 52 103 Insurance claim income - 36 Total extraordinary income 411 139 Extraordinary losses Retirement benefit expenses for prior periods 33 - Condolence payment - 33 Loss on retirement of non-current assets - 4 Total extraordinary losses 33 37 Profit before income taxes 906 839 Income taxes 244 284 Net profit 662 555 Profit attributable to owners of parent 662 555
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5 Consolidated statements of comprehensive income (cumulative) (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net profit 662 555 Other comprehensive income Valuation difference on available-for-sale securities 232 52 Foreign currency translation adjustment (4) (3) Remeasurements of defined benefit plans, net of tax (51) (100) Total other comprehensive income 176 (51) Comprehensive income 839 503 Comprehensive income attributable to Comprehensive income attributable to owners of parent 839 503
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6 Consolidated statements of cash flows (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 906 839 Depreciation 25 43 Increase (decrease) in provisions 13 (8) Increase (decrease) in assets and liabilities related to retirement benefits (79) (141) Interest and dividend income (7) (8) Interest expenses 0 1 Loss (gain) on investments in investment partnerships 7 2 Loss (gain) on sale of investment securities (52) (103) Insurance claim income - (36) Gain on revision of retirement benefit plan (359) - Retirement benefit expenses for prior periods 33 - Loss on retirement of non-current assets - 4 Decrease (increase) in trade receivables (72) 103 Decrease (increase) in inventories (21) (8) Increase (decrease) in trade payables 15 (24) Increase (decrease) in accrued consumption taxes (116) (34) Increase (decrease) in accounts payable - other (35) (14) Increase (decrease) in accrued expenses (32) 42 Increase (decrease) in deposits received (18) 133 Other, net (25) 3 Subtotal 181 794 Interest and dividends received 8 8 Interest paid (0) (1) Income taxes paid (233) (167) Income taxes refund 0 0 Net cash provided by (used in) operating activities (44) 634 Cash flows from investing activities Purchase of property, plant and equipment (18) (249) Purchase of intangible assets - (0) Purchase of investment securities (10) (13) Proceeds from sale of investment securities 119 98 Purchase of membership (6) (5) Proceeds from surrender of insurance policies 1 61 Other, net (11) (11) Net cash provided by (used in) investing activities 74 (120) Cash flows from financing activities Decrease (increase) in treasury shares (151) 108 Dividends paid (314) (315) Net cash provided by (used in) financing activities (465) (206) Effect of exchange rate change on cash and cash equivalents (11) (2) Net increase (decrease) in cash and cash equivalents (447) 304 Cash and cash equivalents at beginning of period 6,815 6,213 Cash and cash equivalents at end of period 6,367 6,518