Slides
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Financial Results Briefing for FY2026 Q3 WingArc1st Inc. 14 January 2026
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page No. page No. Disclaimer Although forward-looking statements (such as the business outlook described in this presentation) are based on the most up-to-date information available at the time of preparation, the actual performance of the business is influenced by a variety of factors and final results can differ greatly. 2
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page No. page No. II. Business Topics I. Results for FY2026 Q3 3 III． Forecast
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page No. page No. drove quarterly sales to a record high, resulting in revenue growth. Results for FY2026 Q3: Financial Results Highlights Robust sales of software licenses lead to a turnaround in sales growth. Although revenue declined through Q2 due to the aftermath of large-scale projects, steady recurring revenue and strong software license orders drove quarterly sales to a record high, resulting in revenue growth. Additionally, the magnitude of the profit decline improved substantially. Profit is expected to increase on a full-year basis. Recurring revenue showed strong performance SVF Cloud and Dr.Sum Cloud drove cloud services’ performance, which recorded growth of 30% YoY . Subscriptions*1 also grew 37% YoY , and recurring revenue as a whole increased by 15%. 4 Released a new version of MotionBoard equipped with generative AI We launched a new version of MotionBoard, a data-utilization platform equipped with generative AI. It utilizes generative AI to perform highly interactive analysis and streamline operations using natural language. * Does not refer to sales of software licenses, but to a contract type where fees are charged based on the period of use
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page No. page No. Results for FY2026 Q3: Financial Results Highlights 5 *1 EBITDA = Operating income + Depreciation and amortization (Depreciation and amortization costs exclude depreciation costs related to the right-of-use assets recognized by the adoption of the "IFRS 16 Leases” accounting model.) *2 Profit = Profit attributable to equity holders of the parent FY2025 FY2026 YoY (¥ million) 3Q Actual 3Q Actual Revenue 21,610 22,502 4.1% BDS 14,233 14,971 5.2% DE 7,377 7,530 2.1% EBITDA*1 7,603 7,352 - 3.3% Margin 35.2% 32.7% - 2.5pt Profit*2 4,702 4,422 - 6.0% Margin 21.8% 19.7% - 2.1pt The increase in BDS revenue led to an overall increase for the quarter. In accordance with this, the decline in profit also narrowed.
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page No. page No. Results for FY2026 Q3: EBITDA Fluctuation Factors Strengthened cost management helped narrow the profit decline compared with Q2. The company made steady progress towards achieving its full-year plan. 7,603 +891 7,352 FY2025 3Q FY2026 3Q - 288 R&D expenses Outsourcing expenses - 698 Labor costs Other expenses*1 Increase factors Decrease factors SG&AEarnings +891 - 1,142 *1 Total of outsourcing expenses, other operating revenues, other operating expenses, depreciation and amortization when calculating EBITDA YoY difference - 250 (-3.3%) (¥ million) 6 - 254 +99
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page No. page No. Results for FY 2026 Q3: Revenue by Solution 7 *1 Subsidiaries *2 Services, subsidiaries, etc. FY2026 YoY (¥ million) 3Q Actual SVF 11,712 - 0.5% invoiceAgent 1,861 11.6% Others*1 1,398 77.0% Total 14,971 5.2% FY2026 YoY (¥ million) 3Q Actual Dr.Sum 2,503 - 3.6% MotionBoard 2,844 1.7% Others*2 2,181 10.1% Total 7,530 2.1% Business Document Solutions (BDS) Data Empowerment (DE) Solutions Strong demand for SVF software licenses resulted in an upturn in revenue of the BDS segment. The DE segment, on the other hand, saw an increase in revenue overall, despite the decline in Dr.Sum.
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page No. page No. Results for FY2026 Q3: BDS: SVF 8 The sales growth of cloud services accelerated due to advances in upselling. For on-premises services, progress reached the same level as the previous year, driven by steady maintenance and subscriptions, along with increased license orders. Cloud On-premises (¥ million; companies) (¥ million) 573 672 869914 1,011 1,126 0 200 400 600 800 1,000 1,200 0 200 400 600 800 1000 1200 FY2024 3Q FY2025 3Q FY2026 3Q Revenue No. of companies 5,478 5,515 5,791 411 538 788 4,370 5,048 4,263 10,260 11,102 10,842 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY2024 3Q FY2025 3Q FY2026 3Q Licenses Subscriptions Maintenance
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page No. page No. Results for FY2026 Q3: BDS: invoiceAgent 9 Cloud growth has slowed as the tailwind from the Electronic Books Preservation Act has subsided. For on-premises services, maintenance and subscriptions were robust, bringing about a shift to revenue growth. Cloud On-premises (¥ million; companies) (¥ million) 650 992 1,135 694 869 923 -30 170 370 570 770 970 (100) 100 300 500 700 900 1,100 1,300 1,500 1,700 1,900 FY2024 3Q FY2025 3Q FY2026 3Q Revenue No. of companies 271 318 333 125 216 264 553 141 128 951 676 726 0 200 400 600 800 1,000 1,200 FY2024 3Q FY2025 3Q FY2026 3Q Licenses Subscriptions Maintenance
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page No. page No. Results for FY2026 Q3: DE: Dr.Sum 10 The cloud services segment is performing well, particularly among large corporations. For on-premises services, while maintenance and subscriptions increased, license revenue fell significantly below the previous year, resulting in a decrease in overall revenue. Cloud On-premises (¥ million; companies) (¥ million) 226 342 471 61 97 126 -30 -10 10 30 50 70 90 110 130 150 0 100 200 300 400 500 600 700 800 FY2024 3Q FY2025 3Q FY2026 3Q Revenue No. of companies 1,376 1,421 1,479 89 85 121 654 747 430 2,119 2,255 2,032 0 500 1,000 1,500 2,000 2,500 3,000 FY2024 3Q FY2025 3Q FY2026 3Q Licenses Subscriptions Maintenance
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page No. page No. Results for FY2026 Q3: DE: MotionBoard 11 For cloud services, although the number of companies with contracts declined from previous years due to the conclusion of some OEM services, sales remained steady. For on-premises services, maintenance and subscription revenue increased, resulting in overall revenue growth. Cloud On-premises (¥ million; companies) (¥ million) 1,114 1,288 1,330 891 1,018 1,036 0 200 400 600 800 1,000 1,200 0 500 1,000 1,500 2,000 FY2024 3Q FY2025 3Q FY2026 3Q Revenue No. of companies 750 814 865 140 145 178 845 548 470 1,735 1,508 1,514 0 500 1,000 1,500 2,000 FY2024 3Q FY2025 3Q FY2026 3Q Licenses Subscriptions Maintenance
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page No. page No. Results for FY2026 Q3: Revenue by Contract Category (¥ million) 12 Licenses/Services helped narrow the decline in revenue. Strong performance in cloud subscriptions drove overall recurring revenue to grow 15%, resulting in an overall revenue increase. (¥ million) Contract Category Breakdown FY2025 3Q FY2026 3Q YoY Licenses / Services 8,717 7,680 - 11.9% Recurring Maintenance 8,070 8,470 5.0% Cloud 3,837 4,998 30.3% Subscriptions 985 1,352 37.3% Total 12,893 14,821 15.0% Total 21,610 22,502 4.1% Recurring Ratio 59.7% 65.9% - Maintenance retention rate* 93.2% 93.4% - * The percentage of SVF, invoiceAgent, Dr.Sum and MotionBoard contracts that were renewed, expressed in terms of monetary value, relative to the total contracts eligible for renewal during the relevant period. The maximum value is 100% because it does not include upsells and renewals of Maintenance and Subscription contracts.
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page No. page No. Results for FY2026 Q3: Recurring Revenue Trends 13 Recurring revenue is performing well, and overall revenue continues to trend upward, setting a new record for quarterly sales. (¥ million) Recurring 2,303 2,398 2,579 2,948 3,049 3,305 557 649 833 1,110 1,307 1,878 1,831 2,136 2,229 2,127 2,378 2,606 4,692 5,183 5,642 6,186 6,735 7,790 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Licenses / Services Cloud Maintenace/Subscriptions
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page No. page No. 14 Results for FY2026 Q3: Cloud Services Growth Rate FY2025 3Q FY2026 3Q Growth rate SVF Cloud 672 869 29.2% invoiceAgent 992 1,135 14.4% Dr.Sum Cloud 342 471 37.6% MotionBoard Cloud 1,288 1,330 3.2% Subsidiary 540 1,192 120.6% Total 3,837 4,998 30.3% (¥ million) SVF Cloud and Dr.Sum Cloud grew significantly. Although MotionBoard Cloud saw a decline in growth rate due to the absence of large-scale projects, overall growth exceeded 30%, reflecting the impact of WingArcNEX consolidation.
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page No. page No. Results for FY2026 Q3: Profit Index 15 EBITDA (¥ million) Profit (¥ million) The decline in profits is significantly lower than the previous quarter. 7,202 7,603 7,352 36.6% 35.2% 32.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 FY2024 3Q FY2025 3Q FY2026 3Q EBITDA Margin 4,499 4,702 4,422 22.9% 21.8% 19.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0 2,000 4,000 6,000 8,000 10,000 FY2024 3Q FY2025 3Q FY2026 3Q Profit Margin
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page No. page No. Results for FY2026 Q3: Financial Soundness 16 The company maintained a sound financial position. Interest-bearing debt Cash and cash equivalents Net debt/Net cash Net debt/Net cash (¥ billion) Financial Leverage (¥ billion; pts) * Adjusted EBITDA for FY2026 3Q is LTM (i.e. last twelve months). *1 End of Feb 2024 End of Feb 2025 End of Nov 2025 9.9 12.9 3.0 8.5 14.7 6.1 7.8 12.2 4.3 7.2 8.6 9.7 9.4 0.14 △ 0.35 △ 0.64 △ 0.47 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 (1.00) (0.50) 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 FY2023 FY2024 FY2025 FY2026 3Q EBITDA Net Debt/EBITDA Ratio
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page No. page No. II. Business Topics I. Results for FY2026 Q3 17 III． Forecast
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page No. page No. Business Topics 18 Launched Trustee stamp in SVF Cloud Starting November 15, 2025, the company began providing the Trustee timestamp service on its form management service, SVF Cloud. Trustee applies timestamps from the document publisher at high speed and at a low cost, reducing the risk of tampering. WingArc1st collaborates with Infomart in the field of B2B transactions We will commence direct integration between invoiceAgent Transact and Infomart's cloud service, BtoB Platform Invoice in summer 2026. This eliminates manual processes involving paper or PDFs, significantly reducing the overall workload for invoice processing.
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page No. page No. Business Topics: Launched New MotionBoard with Generative AI 19 We launched the new MotionBoard, a data utilization platform equipped with generative AI, on December 20. It utilizes generative AI to perform highly interactive analysis and streamline operations using natural language. Support analytics with generative AI Strengthen linkage with external data Automatically generate dashboards and items using the AI widget, a generative AI function. Analyses using these methods are also achievable in natural language. Strengthens seamless integration with various data sources. Combines site data to enable comprehensive analysis Create business applications with generative AI Use the AI Widget, a generative AI function, to easily create business apps on MotionBoard.
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page No. page No. II． Business Topics I. Results for FY2026 Q3 20 III. Forecast
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page No. page No. 21 Forecast for FY2026 *1 Profit attributable to equity holders of the parent There is no change to our Full Year Forecast. FY2026 FY2026 Rate of progress(¥ million) 3Q Actual Full Year Forecast Revenue 22,502 31,200 72.1% BDS 14,971 20,300 73.8% DE 7,530 10,900 69.1% EBITDA 7,352 10,460 70.3% Profit*1 4,422 6,400 69.1%
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page No. page No. 22 Forecast for FY2026: Breakdown of Sales and Profit (Profit Margin) While the company-wide EBITDA margin for the current period is expected to remain flat, organic growth (excluding M&A-related figures such as TRYSERVE and WingArcNEX) is projected to improve. We are also promoting various company-wide initiatives, such as the early creation of synergies and a review of our portfolio. (¥ million) Company- wide Organic (excluding M&A) M&A Revenue 31,200 29,350 1,850 EBITDA 10,460 10,440 20 Margin 33.5% 35.6% 1.1% TRYSERVE WingArcNEX 33.6% 33.5% 34.6% 35.6% 2025/ 2 2026/ 2 Company-wide Organic *1 FY2026 is a forecast Revenue Breakdown (Forecast for FY2026) EBITDA Margin(¥100 million) (¥100 million)
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page No. page No. Appendix 1 - Financial Information 23
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page No. page No. Consolidated Income Statement Subjects FY2025 3Q FY2026 3Q YoY difference Comments Revenue 21,610 22,502 891 Labor costs - 5,250 - 5,949 - 698 Increased personnel and wage increases, as well as increased expenses associated with the consolidation of TRYSERVE and WingArcNEX Research and development costs - 2,456 - 2,710 - 254 Outsourcing expenses - 2,122 - 2,411 - 288 Commission expenses - 987 - 859 128 Other operating income 20 31 11 Other operating expenses - 4,277 - 4,391 - 114 Operating Income 6,536 6,211 - 325 Margin 30.2% 27.6% - 2.6pt Financial income 79 93 14 Financial costs - 64 - 105 - 41 Equity in earnings of affiliated companies - 18 18 Equity method is applied on CIMTOPS Corporation Profit before income taxes 6,551 6,217 - 334 Income taxes - 1,866 - 1,811 55 Tax rate 28.5% 29.1% 0.6pt Increase in adjustments for special defense tax for corporations Profit 4,685 4,406 - 278 Profit attributable to equity holders of the parent 4,702 4,422 - 279 Margin 21.8% 19.7% - 2.1pt (¥ million) 24
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page No. page No. Calculation of EBITDA (¥ million) Subjects FY2025 3Q FY2026 3Q YoY difference Comments Operating Income 6,536 6,211 - 325 Depreciation and amortization 1,066 1,141 74 EBITDA 7,603 7,352 - 250 Margin 35.2% 32.7% - 2.5pt 25
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page No. page No. Consolidated Statements of Financial Position – Assets (¥ million) Subjects End of Feb 2025 End of Nov 2025 Increase this FY Comments Current assets 17,824 16,223 - 1,600 Cash and cash equivalents 14,715 12,222 - 2,492 Trade and other receivables 2,451 2,989 538 Other financial assets 81 98 16 Other current assets 575 912 337 Increase in prepaid expenses such as software usage fees Non-current assets 50,612 55,987 5,374 Property and equipment 2,076 1,739 - 336 Goodwill 27,674 30,155 2,481 Increase due to acquisition of WingArcNEX Other intangible assets 15,055 14,445 - 610 Amortization of intangible assets Equity in earnings of affiliated companies 454 461 7 Other financial assets 5,315 9,135 3,819 Increase in valuation of investment securities Other non-current assets 36 49 12 Total assets 68,436 72,210 3,773 26
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page No. page No. Consolidated Statements of Financial Position – Liabilities and Equity (¥ million) Subjects End of Feb 2025 End of Nov 2025 Increase this FY Comments Total current liabilities 14,840 14,919 79 Contract and other liabilities 9,071 10,233 1,162 Increase in accounts receivable due to growth in maintenance sales Current portion of long-term borrowings 1,452 1,432 - 19 Income taxes payable 1,291 413 - 878 Payment of corporate income taxes Other 3,025 2,839 - 185 Non-current liabilities 11,750 12,135 385 Long-term borrowings, net of current portion 7,106 6,396 - 709 Repayment of loans Deferred tax liabilities 4,207 5,439 1,231 Increase in valuation of securities Provisions 192 245 52 Other financial liabilities 243 54 - 189 Total liabilities 26,590 27,055 464 Issued capital / Capital surplus 13,627 13,729 101 Treasury shares - 506 - 428 77 Stock-based compensation transactions Retained earnings 26,611 27,075 463 Other 2,112 4,779 2,666 Increase in valuation difference on available-for-sale securities Total equity 41,846 45,155 3,308 Total liabilities and equity 68,436 72,210 3,773 27
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page No. page No. Consolidated Statements of Cash Flows (¥ million) Subjects FY2025 3Q FY2026 3Q YoY difference Comments Net cash flows from operating activities 6,023 5,132 - 890 Profit before income taxes 6,551 6,217 - 334 Depreciation and amortization expenses 1,317 1,347 30 Increase / decrease in working capital 875 426 - 449 Income taxes paid - 2,600 - 2,808 - 208 Other - 120 - 50 70 Net cash flows used in investing activities - 1,092 - 2,708 - 1,615 Purchase of property and equipment - 339 - 119 220 Purchase of intangible assets - 332 - 313 18 Payments for lease and guarantee deposits - 13 - 1 11 Expenditure from the acquisition of a subsidiary - 410 - 2,266 - 1,856 WingArcNEX Inc. Other 2 - 7 - 9 Net cash flows used in financing activities - 4,036 - 4,964 - 927 Repayments of lease liabilities - 312 - 315 - 3 Expenditure on repayment of borrowings - 752 - 738 14 Proceeds from issuance of new shares 36 34 - 1 Dividends paid - 3,006 - 3,944 - 937 Increase in dividend payments Other - 1 0 1 Net foreign exchange differences 6 47 41 Net increase (- refer to decreases) in cash and cash equivalents 899 - 2,492 - 3,392 Cash and cash equivalents at the beginning of the period 12,986 14,715 1,728 Cash and cash equivalents at the end of the period 13,886 12,222 - 1,663 28
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page No. page No. Appendix 2 - Company Profile, Business Overview 29
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page No. page No. 30 Vision Empower Data, Innovate the Business, Shape the Future.
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page No. page No. 31 Business Overview Our business consists of two sectors: Business Document Solutions (BDS), that support the core operations of companies, and Data Empowerment Solutions (DE), that create value from data. Data Empowerment Solutions (DE) Business Document Solutions (BDS) Form Design, Operation and Management Aggregation and Analysis of Big Data Real-time Visualization and Action Form Digitization, Storage and Utilization
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page No. page No. DE Data Empowerment Solutions 35 % ¥9.9 billion Revenue by Solution Total Revenue ¥28.7billion Revenue by Contract Revenue Total Revenue ¥28.7billion Recurring Revenue* 61% ¥17.5 billion Licenses / Services 39% ¥11.2 billion BDS Business Document Solutions 65% ¥18.8 billion *1 Total sales related to transactions assuming ongoing agreements, such as maintenance, service subscriptions (a form of agreement that collects charges according to the period of use, not the purchase of software) and cloud services. 32 Overview of Sales (FY2025)
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page No. page No. 33 Our Group’s Strengths Unique Technology + Vertical Expertise Strong Business Channels Attractive Financial Model Recurring Ratio: 60.9% Retention Rate：93.7% EBITDA Margin：33.6% Number of partners: 621 *The numbers quoted are from FY2025 In-house technology development Business-specific solution teams
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page No. page No. 34 Improved Shareholder Return Policy (Announced in October 2023) Since our listing on the Tokyo Stock Exchange, we have focused on strengthening and expanding our recurring business to achieve steady growth. Additionally, the Company’s financial position has improved significantly on the back of strong cash flow and achieved net cash this term. Consequently, we are making the following changes to our shareholder return policy in order to strengthen engagement with shareholders, improve capital efficiency, and provide flexible shareholder returns. Pay-out Ratio Around 30% Total Return Ratio Around 50% *1 Percentage of profit attributable to equity holders of the parent *1 *1
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page No. page No. 35 Capital Allocation The company’s ability to generate strong cash flow from its recurring business gives it sufficient investment capacity for business growth even after strengthening shareholder returns. We aim for optimal capital allocation by combining growth and returns. Sales CF (Cumulative total for 4 years) ¥30 billion above Growth Investments Shareholder returns Finan cing *1 Cumulative total during the medium-term management period (FY2024-2027) *1 Dividends Acquisition of treasury stock Capital investments M&A / Investments Repayment of loans Over ¥10 billion Carry out in a flexible manner taking into account market conditions and financial situation ¥8 billion Approx. ¥2 billion Over ¥10 billion Consider the allocation of cash on hand and external financing in a flexible manner depending on the project Allocation
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page No. page No. 36 Our Products Enhance Data Empowerment of End Users Our software utilizes unique and differentiated technology which covers the entire data utilization stream Develop new businesses with strategic partners backed by our stable growth and existing revenue base Data preparation Aggregation and Analysis of Big Data Business form creation and management Data analysis Data output Decision-Making Support Real-time visualization and action Form Digitization, Storage and Utilization Decision-Making Support Business Document Solutions (BDS) Data Empowerment Solutions (DE)
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page No. page No. 37 Uniqueness of Our Products Enables us to Capture Demand for DX and Shift to the Cloud Stable and Long-Term Track Record Broad Distribution Channels through Partners Big Data Processing Easy for Users to Create Reports Virtual Data Integration Real-time Visualization Real-Time Data Updates by Users Easy for Users to Customize High Compatibility with IT Systems and Hardware Protocols Distribution Channels Product Superiority Distribution Organization Based on Vertical / Business-Focused Solutions Sales by a Dedicated Cloud Sales Team / Well-Developed Inside Sales Organization Business Document Solutions with No.1 Market Share Data Infrastructure Solutions for Data-driven Systems No.1 Visualization Tool which Enables Data-Driven Decision Making Significantly Streamline Process of Business Document Operations Fast Data Aggregation High-Precision Data Conversion with Multiple AI-OCRs Integrated document solution of digitizing, archiving and distribution Covers Data Distribution Layer Able to Import Atypical Data
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page No. page No. 43% 16% 19% 22% 4.6 10.2 11.23.9 6.3 7.6 2016/2 2017/2 2018/2 2019/2 2020/2 2021/2 2022/2 2023/2 2024/2 2025/2 Licenses / Services Recurring 40% 42% 12% 6% 38 Overview of BDS Sales Trends*1 (¥ billion) Sales composition (Results for FY2024) Maintenance Cloud Subscription Licenses/ Services Revenue by Contract By customer size *4 Over ¥100 billion ¥20 to ¥100 billion Public Sector ¥20 billion or less Market share Maintained top market share for more than 10 years Over 60% of our total product installations are at companies with annual sales of 100 billion yen or more*3 Form operation product market*2 Competitive Advantage *1. Direct comparisons are not possible due to JGAAP basis until FY02/2016 and IFRS basis from FY02/2017. 2. Market share of form management products in MIC IT Report in December 2025 by Deloitte Tohmatsu MIC Research Institute Co., Ltd. Chart 2-5. Operations: Sales and market share by product/service vendor Trends in FY2025 Results ( https://mic-r.co.jp/micit/2025/ (Japanese)) 3. Calculated based on our customer database. 4. Annual Sales. Includes sales of SVF and invoiceAgent. BDS WingArc1st, 70% 10% 10% 3% 7% Extensive track record of stable operations, mainly for large corporations and government agencies High compatibility with a variety of systems and hardware Numerous partners and technicians familiar with our software Solid customer base based on longstanding relationships of trust
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page No. page No. 39 SVF Streamlines and Digitalizes Business Documents (“Chohyo”) Operation Cost and time saving Stable operationProductivity improvement Customer Value Proposition Inefficient Operation When Legacy System Is Used… …SVF Simplifies “Chohyo” Operation Core Enterprise Systems “Chohyo” Systems End-Users HQ Dept. A Dept. B Subsidiary Subsidiary Peer Product HQ Custom- Made Dept. B Dept. A System 4System 1 System 3System 2 Custom- Made System 4System 1 System 3System 2 SVF digitizes the analog process of business document operations Improve productivity and reduce costs and time by integrating business documents and simplifying systems BDS
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page No. page No. Purchase order Monthly report Summary sheet Application sheet Manufacturing directions Shipping information Delivery detail Inspection certificate Purchasing Branch Warehouse Delivery center Consumer Customer Bank Convenience store Transfer form Purchase orderStatement of deliveryInvoice Delivery slip Shipping invoice Statement of delivery Government Government DocumentResident Card Quotation Purchase order “Forms” are deeply embedded in Japanese business processes and will never disappear although their character may change Most of our form-based operations are digitized and able to handle both paper-based and digital forms. HQ Forms come in a variety of formats, and software is essential for both their design and use. Notes 1. * WingArc 1st’s database 80%* of total document outputs are in Digital Format (as of February 2020) 40 Forms that are Essential for Business in Japan Production Subcontractor BDS
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page No. page No. 41 Examples of Forms – BDS Business Application for Insurance Premium Deduction (Government Document) E-TicketInvoice * WingArc 1st’s database 80%* of all documents in circulation take the form of digital forms (as of Feb. 2021) BDS
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page No. page No. 422023Copyright © WingArc1st Inc. All Rights Reserved. invoiceAgent Encompasses All Transaction Information: invoiceAgent is a platform that can digitize all document transactions between companies. It enables secure, high-speed, cloud-based distribution to support the intercompany DX of Japanese commerce. Effects of Investment Reduce costs and improve productivity Reduce errors Strengthen internal controls Contract Receipt Contract Order Delivery Invoice Payment confirmation Order form Delivery slip Invoice ReceiptOrder form Delivery slip Invoice Contract No:A1005 Order No:2001 Order No:2006 Overview of transaction-related document management A contract number is associated with an order number, and the documents are stored in invoiceAgent. Storage BDS
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page No. page No. Focus industries Our initial targets will be the top companies in each industry's supply chain. Industries with high document transaction volumes between companies will be our chief target. Wholesale / retail Manufacturing (especially construction / manufacturing) Transportation Construction Target companies Strong influence in the supply chain TOP Tier 1 Tier 2 Our initial targets are the top companies in the supply chain. The ratio of using SVF is high, and the influence on Tier 1 and Tier 2 is also large. Aim for efficient acquisition by influencing top companies and systematizing our customer acquisition process. Business Highlights: invoiceAgent: Intended Market In industries where transactions between companies exist in high volumes, such as wholesale/retail or manufacturing, we will initially target companies that are at the top of the supply chain and aim to introduce the product to each group of companies that transact together. Because large companies are expected to output a high percentage of their forms in SVF, our marketing strategy leverages SVF’s current customer base. 43 BDS
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page No. page No. 44 Secure document management that complies with the Electronic Books Preservation Act Unified operations, from sending and receiving invoices to form management Digitization of contracts and centralized management of related documents Digitization of forms using highly accurate character recognition A cloud-based electronic transaction solution that allows users to send, receive, and manage transaction forms in one go. It supports compliance with the Electronic Books Preservation Act and the invoicing system while maintaining the optimal format of forms for companies. It also accelerates B2B transactions through forms. A cloud-based electronic contract solution that lets users review, sign, and manage contracts for commercial transactions. WingArc1st Inc. also acts as a witness approving the contracts between companies. It promotes the safe use of paperless and stamp-free operations through the centralized management of related documents. A document management solution that can sort, store, and search all types of forms, as well as integrate with other systems. It facilitates secure electronic document management that complies with the Electronic Books Preservation Act, reduces costs, strengthens governance, and promotes paperless operations. A form digitization solution that accurately reads and converts printed and handwritten text into data. Its unique processing functions improve the accuracy of system input and reduce the cost of visual checking, thereby increasing the productivity of operations personnel. invoiceAgent: Product Lineup Documents Transact Contract
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page No. page No. 45 Establishment of a Digital Form Platform Data distribution between companies Document management (sending company) Document management (receiving company) Receipt Storage Compliance with the Electronic Books Preservation Act System integration Output digital forms Storage Distribution We will promote the provision of a digital form platform that meets all form needs within and between companies. Digital Form Platform BDS
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page No. page No. 46 invoiceAgent: Basic Policies Large companies Mid-sized enterprises Small to medium-sized enterprises Annual sales: Over ¥100 billion Annual sales: ¥20 to ¥100 billion Annual sales: ¥20 billion and below TOP Tier 1 Tier 2 Number of companies: Around 1,500 Number of companies: Around 6,000 Number of companies: Over 1 million Formation of a dedicated organization and workforce increase Partner strategy Service enhancementAggressive marketing Sales Strategy Development Strategy We plan to expand to large corporate accounts that are focused on sales. Our development side will support this plan by strengthening services through SVF integration and UX improvement. Enhance ment of SVF integration functions BDS
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page No. page No. 47 invoiceAgent: Use Case Core Enterprise Systems/ERP Form Infrastructure A chemicals manufacturer that sends and receives a large number of forms to and from many suppliers took the opportunity to introduce WingArc1st’s solutions when it replaced its mainframe. The storage and web distribution of electronic forms are increasingly becoming requirements for projects that involve the renewal of core systems. 6 environments including tenants for group companies Delivered more than 20,000 mails/month since its official launch at the head office Group companies are scheduled to use the system in the future * introduced simultaneously Upon renewal of its core system, the company shifted from output using individual systems to comprehensive management and operation using SVF as its form infrastructure. SVF was valued for its support for document migration and its track record of stable operation. Vendors have announced that they are retiring their mainframes, and many companies plan to move away from mainframes as soon as possible. Distribution Storage ▶ Usage Overview▶ System Configuration (Form-Related) Given the large scale of core system renewal projects, we will strengthen our collaboration with SI/ERP vendors to proceed with the large-scale implementation of invoiceAgent. Transact Documents BDS
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page No. page No. 48 Digital Trust Service, Trustee To ensure the reliability of electronic documents in B2B transactions, we launched the digital trust service, Trustee. As the first offering, we released Timestamp Service that proves when a document was issued and existed. BDS High-speed processing to support over 1,000 documents per second High availability through multiple sites and redundant configurations Low cost enabled by strategic pricing ▶ Features ▶ Offered with SVF and invoiceAgent
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page No. page No. 34% 25% 31% 10% 37% 30% 30% 3% 1.4 3.2 3.30.2 2.5 3.0 2.1 3.6 3.7 2016/2 2017/2 2018/2 2019/2 2020/2 2021/2 2022/2 2023/2 2024/2 2025/2 Licenses / Services Cloud Subscription 492025Copyright © WingArc1st Inc. All Rights Reserved. Overview of DE Sales Trends*1 (¥ billion) Market share Package Sales composition (Results for FY2025) Maintenance Cloud Subscription Licenses/ Services Revenue by Contract By customer size *3 Public Sector SaaS/PaaS Over ¥100 billion ¥20 to ¥100 billion ¥20 billion or less DE *1. Direct comparisons are not possible due to JGAAP basis until FY02/2016 and IFRS basis from FY02/2017. *2 Fuji Chimera Research Institute's "Software Business New Market 2025", D10.BI tools FY2024 results. *3 Annual Sales. Includes Dr.Sum and MotionBoard sales. A, 24% B, 23% WingArc1st, 14% C, 9% D, 9% others, 21%A, 20% WingArc1st, 17% B, 15% C, 15% D, 10% others, 23% *2 Aggregation and analysis of big data Competitive Advantage Unique industry and business solutions from a dedicated team of specialists Virtual integration and real-time visualization of various types of data
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page No. page No. 50 Improve the Speed and Quality of Operations with Data Utilization Faster and simpler operation Enhancement of speed and quality of decision makingFurther utilization of data Customer Value Proposition Data is Generally Scrambled and Un-Utilized DE Products Empower Business Performance HQ Dept. A Dept. B Analysis Data preparation Document Preparation HQ Dept. A Dept. B Document Preparation Analysis Data Preparation Big data aggregation and analysis Real-time visualization and action Improve operational efficiency and enhance speed and quality of decision making by digitization in the areas of data aggregation, analysis, and reporting DE
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page No. page No. 51 Foods Finance Logistics Retail ・Real-time visualization of factories ・Optimization of production processes ・Fault detection HACCP Service Product planning IoT for manufacturing ・Demand forecast support ・Sales analysis ・Building a data pipeline ・Visualization of sales activities ・Improvement of sales productivity ・Compliance with Food Hygiene Control System ・Management of temperature, health information, etc. ・Monitoring, notification, alerts ・Not relying on intuition or experience ・Digitization of taste/nutritional information ・Design based on market data ・Digitization of vehicle dispatch operations ・Analysis functions specific to transportation operations ・Contribution to improved profitability Distribution Organization Based on Vertical / Business-Focused Solutions DE
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page No. page No. Our unique positioning in the BI tools market is backed by multi-functionality Monitoring Case Study Marketing/ Analysis Operation/ Decision Illustrative Core Users On-Site Employees (e.g. Manufacturing) Experts (e.g. Marketer) Management Inter-Company Connection End-user-base expanded by work-style reforms promoted by the Japanese government and an increasing need for cloud- based services. 52 Differentiated Positioning / Strategy DE
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page No. page No. 53 DE: Basic Policies Formation of a dedicated organization and increase of workforce Aggressive marketing Enhancement of data platform Business Strategy Data operations On-site operations Area where data is utilized for management strategies to raise corporate competitiveness Focus on large companies Areas of data aggregation and visualization for reporting Large companies and mid- sized enterprises Areas to streamline work efficiency in the field All companies Sales Strategy Development StrategyHierarchy of data use Strengthening of Industry Cloud HACCP services Our area of expertise Focus is on measures to strengthen service delivery systems and data platforms related to Dataring. DE
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page No. page No. 54 DE: Dataring Dataring's initial target is assumed to be large companies with existing customers who have challenges in data utilization. Although personnel resources will be required, the expanded scope of services offered will significantly increase unit costs and recurring revenues. Data Preparation Only at the time of introduction Provided as individual functions Provided as a cloud platform ... Usual cases Professional Services Cloud/ Software Ongoing consulting Services Increased recurring revenue Wider scope of provision Unit price increase Effect DE
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page No. page No. Database 2 Cloud Platform MonitoringIntegrated Data Infrastructure 55 DE Cloud: Use Case A major retailer with a large amount of data has implemented a cloud platform equipped with company-wide data infrastructure and demand forecasting algorithms. Through this system, the company has achieved highly accurate demand forecasting by means of comprehensive data management. ▶ Usage Overview▶ System Configuration Distribution Orders Plan Product Management Demand Forecast Over 80% accuracy for both shipment/sales forecasting. The forecasting system provides user feedback on a case-by-case basis to continuously improve accuracy. Reduced opportunity loss caused by missing products Significant reduction in work hours through digitization Automated the ordering process by integrating with other systems Order System We will respond to a wide range of customer needs not only by offering our solutions, but also by offering a combination of various solutions. Database 1 Earnings POS Sales/SCM Data DE
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page No. page No. 56 Enhanced Functionality for New Markets A new version of MotionBoard equipped with AI was released in December 2025. We also plan to release a new version of Dr.Sum with enhanced AI capabilities. Create business logic UI/UX modernization Generative AI integration Easily and flexibly create business logic to connect data flow and business flow Create optimal charts and conduct data analysis in conjunction with various generative AIs to gain new insights Underwent major renewal based on user feedback. Has a wide range of functions that can be used intuitively Features of MotionBard Advanced database Data flow Generative AI integration The aggregate processing speed is 10 times faster than the current version In addition, SQL has been enhanced to handle complex processing Dr.Sum Copilot is included as standard. Can generate SQL and Python script. Provides an interactive reporting experience for general users New prep function for processing, converting, and cleansing data with no code Features of Dr.Sum Ver.6.0 DE
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page No. page No. 57 Public Sector: Growth Strategy We will ensure we capture the demand for information system standardization and utilize the data accumulated in those systems to promote DX in local government. Standardization support for information systemsⅠ Strengthen partnerships with major cities and then carry out horizontal rollout to other local governments Ⅱ Create new services to promote DX in local governments Ⅲ Expand business by forming an ecosystem We will provide form functions (SVF, invoiceAgent) and aggregation functions (Dr.Sum, MotionBoard) that are not implemented in system standardization, together with the contents necessary for administrative operations. We will establish a cooperative framework in development and distribution channels in cooperation with package vendors for local governments and SIers, which is one of our strengths. Promote co-creation with major cities, starting with standardization Due to the multi-vendor environment in major cities, it is difficult to utilize data throughout agencies, and progress has not been made in improving citizen services or streamlining operations. To solve these issues, we will promote co-creation with major cities, starting from standardization, and expand to local governments to solve social issues and further expand business. Create new services that improve both the efficiency of agency operations and the services provided to residents After the standardization of information systems, new services will be created for front yard reforms such as utilizing the data stored in these systems to streamline internal operations. Public Sector
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page No. page No. Scope of our offering Business Highlight: Public Sector: Overview of Govlong 58 The key principle behind the Municipal Information System Standardization Solution is as follows: The needs of local governments are extremely high, and there are many inquiries even from designated cities with populations of around 1 million. - Highly flexible statistical functions for policy consideration - Easy-to-understand visualization for explanations to citizens Transition of vital statistics systems, and standardization of resident record systems Description Customer Government ordinance-designated cities with a population of 1 million or more Key Points New resident record system Govlong EUC Basic data list (National standard) Govlong Disclosure Control Govlong EBPM Anonymous/ab straction Statistical processing Visualization and map use Data utilization for policy formulation Overview System Image <Problem solving by Govlong> • Cost reduction by adopting an EUC platform that supports data standardization • Improving operations in line with local government statistical operations • Improving staff literacy in using data for local government DX Public Sector
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page No. page No. Software Vendors Distribution Partners (System Integrators) ・License Sale ・License Sale ・System Integrate ・Support/ Maintenance ・License Sale ・Support / Maintenance Japan (Systems Integrator Model) Global Model Software Vendors LOB (In-house) IT Division Corporate /LOB (1) (In-house) IT Division Notes 1. Line of business Sales Distribution Partners Corporate /LOB (1) (In-house) IT Division ・License Sale Services Maintenance ・Support / Maintenance Establishment of a partnership model enables continuous creation of projects and efficient sales activities. We have signed maintenance contracts with more than 90% of software installation customers, contributing significantly to stable revenue and continued expansion. 59 Comparison of Sales Models
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page No. page No. Y1 Y2 Y3 Y4 Y5 On-premises Y1 Y2 Y3 Y4 Y5 Maintenance Licenses Deploy Replace + Upsell + Upsell … … … 60 Illustrative Revenue Structure for Our On-Premises and Cloud/Subscription Sales Models Cloud/Subscription
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page No. page No. President, Executive Officer, and CEO Jun Tanaka Chairman Hiroyuki Uchino Director Division Head, and CTO Ko Shimazawa Director Executive Officer, and CFO Taisuke Fujimoto Director (Outside) Kotaro Yamazawa Director (Outside) Takao Yajima Director (Outside) Iizumi Kaori Executive Officer and CSO Masaki Moriwaki Executive Officer and CMO Atsuki Kuga Executive Officer Yoshiyuki Yoshida Executive Officer Shigeo Osawa 61 Experienced Management Team Committed to Innovation Executive Officer Yutaka Nagoya Executive Officer Takahiro Sakimoto Director (Outside) Shunsuke Okada
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page No. page No. Basic Policy on Corporate Governance Having adopted “Empower Data, Innovate the Business, Shape the Future” as its business vision, WingArc1st aims to deliver a better society by adding value to data and bringing about innovation. On the basis of our “Build the Trust” concept, we have positioned “producing results that exceed the expectations of other parties” and “being trusted” as core values of the Group while working to achieve sustainable business development and improvements in corporate value by earning the trust of stakeholders and customers. Essential to that goal is prompt decision making in response to changes in the business environment, ensuring management soundness, efficiency, and thorough legal compliance. We are therefore striving to establish an appropriate corporate governance system. Marketing Headquarters Business Document Division Data Empowerment Division Person other than outside director or inside director Special Committees Committee Chairperson Nomination & Compensation Committee Technical DepartmentSales Division Administrative Headquarters As of the end of April 2025 Human Resources Department Audit & Supervisory Board Outside Auditors Accounting Auditor Chairman Board of Directors Inside Directors Outside Directors Inside Director Outside Director Outside Auditors General meeting of shareholders President Internal Audit Office Risk Compliance Committee Information Security Committee Sustainability Committee Main Items Description Organizational Structure Company with Audit & Supervisory Board Number of Directors 8 (of which 4 are Outside Directors) Number of Auditors 3 (all of whom are Outside Auditors) Directors’ Term in Office One year Number of Times Board of Directors’ Meetings were Held (Average Attendance Rate of Outside Directors) 14 meetings (average of 100% attendance) *FY2025 Actual Number of Times Audit & Supervisory Board Meetings were Held (Average Attendance Rate of Outside Auditors) 20 meetings (average of 100% attendance) *FY2025 Actual Board of Directors’ Optional Advisory Committees Nomination & Compensation Committee Adoption of Executive Officer System Yes 62 Overview of Corporate Governance
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page No. page No. 63 Sustainability Concept Sustainability Vision “We will strive to create a better society with the power of data. Having adopted “Empower Data, Innovate the Business, Shape the Future” as its business vision, WingArc1st believes that maximizing the performance of each and every individual-unfettered by region, age, gender or race- through the sharing and utilization of data will lead to overcoming of social issues. The Group’s vision for sustainability is to create a regenerative system that empowers people and organizations, builds a data-driven society, and creates a better society overall. https://ir.wingarc.com/reporting/sustainability/
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page No. page No. Sustainability Initiatives 64 WingArc1st has been selected by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) as one of the companies listed on the TSE that have excellent health management practices. https://www.meti.go.jp/policy/mono_info_service/healthcare/kenko_meigara.html ・*2 Notice of “AA” rating from MSCI https://corp.wingarc.com/public/202509/news2900.html *3 Carbon Neutrality Survey, WingArc1st https://corp.wingarc.com/public/202502/news2835.html Earned an AA in the ESG ratings provided by MSCI Selected as one of the Health Management Stocks 2025*1 Response to climate change issuesResponse to human capital Earned a B score for the second year in a row in the CDP Climate Change Disclosure 2024 Our products enable the collection, integration, automatic calculation, and visualization of necessary data that is dispersed and scattered, which has been an issue when calculating GHG emissions.
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page No. page No. 65 Company Profile Company Name WingArc1st Inc. Location Roppongi Grand Tower, 3-2-1 Roppongi, Minato-ku, Tokyo, Japan 106-0032 Founded March 2004 Capital ¥1.2 billion Representative Jun Tanaka Fiscal Year March through February Number of employees Consolidated 1,002 / Non-consolidated 819 (As of the end of February 2025) Group Companies Everforth Co., Ltd. traevo Inc. TRYSERVE Co., Ltd. WingArcNEX Inc. WingArc Shanghai Inc. WingArc Dalian Inc. WingArc Singapore Pte. Ltd. WingArc Australia Pty Ltd. Status of Shareholders*1 *1 As of the end of February 2025 *2 The holding ratio is calculated after deducting treasury stock (228,664 shares). Shareholder Name Number of shares held Share-holding ratio*2 IW.DX Partners Inc. 7,643,470 22.02% Toshiba Digital Solutions Corporation 4,604,700 13.27% The Master Trust Bank of Japan, Ltd. (Trust Account) 2,714,100 7.82% Custody Bank of Japan, Ltd. (Trust Account) 1,755,300 5.06% Monolith LLP 1,400,000 4.03% NORTHERN TRUST CO. 1,034,700 2.98% THE NOMURA TRUST AND BANKING CO. , LTD. 604,300 1.74% Suzuyo & Co., Ltd. 537,300 1.55% JP MORGAN CHASE BANK 380684 517,600 1.49% GOLDMAN, SACHS & CO. REG 500,233 1.44% Other 13,392,503 38.59% Grand total (excluding own stocks) 34,704,206 100.00%