Interim report
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1 Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. February 2, 2026 Consolidated Financial Report for the Fiscal Year Ended December 31, 2025 <Under Japanese GAAP> OTSUKA CORPORATION (URL: https://www.otsuka-shokai.co.jp/) Listing: Tokyo Stock Exchange, Code 4768 Representative: Yuji Otsuka, President & Chief Executive Officer Contact: Hironobu Saito, Managing Director & Executive Operating Officer; General Manager of Business Administration Headquarters (Tel: +81-3-3264-7111) Scheduled date of Ordinary General Meeting of Shareholders: March 27, 2026 Scheduled date to commence dividend payments: March 30, 2026 Scheduled date to file Securities Report: March 26, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results presentation meeting: Yes (for analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2025 (From January 1, 2025 to December 31, 2025) (1) Consolidated results of operations (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 1,322,791 19.4 89,943 21.0 91,525 20.5 64,303 20.2 December 31, 2024 1,107,668 13.3 74,360 18.1 75,931 17.7 53,481 12.7 Note) Comprehensive Income For the fiscal year ended December 31, 2025: 71,964 million yen [ 33.1%] For the fiscal year ended December 31, 2024: 54,087 million yen [ 12.5%] Basic earnings per share Diluted earnings per share Return on equity Ordinary profit to total assets Operating profit to net sales Fiscal year ended yen yen % % % December 31, 2025 169.58 169.10 16.8 13.0 6.8 December 31, 2024 141.04 － 15.0 12.3 6.7 Reference) Share of profit (loss) of entities accounted for using equity method For the fiscal year ended December 31, 2025: 727 million yen For the fiscal year ended December 31, 2024: 862 million yen *The Company implemented a two-for-one stock split of its common stock with an effective date of April 1, 2024. Accordingly, basic earnings per share stated above are calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year (Fiscal Year 2024).
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2 (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of Millions of yen Millions of yen % yen December 31, 2025 729,200 399,588 54.1 1,039.88 December 31, 2024 673,903 375,247 55.0 977.84 Reference) Equity As of December 31, 2025: 394,324 million yen As of December 31, 2024: 370,799 million yen *The Company implemented a two-for-one stock split of its common stock with an effective date of April 1, 2024. Accordingly, net assets per share stated above are calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year (Fiscal Year 2024). (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen December 31, 2025 92,218 (20,475) (47,613) 253,620 December 31, 2024 37,711 (11,949) (25,891) 229,488 2. Dividends Annual dividends Total dividend payments (total) Dividend payout ratio (consolidated) Ratio of dividends to net assets (consolidated) First quarter- end Second quarter- end Third quarter- end Year-end Total yen yen yen yen yen Millions of yen % % Fiscal year ended December 31, 2024 － 0.00 － 80.00 80.00 30,336 56.7 8.5 Fiscal year ended December 31, 2025 － 45.00 － 45.00 90.00 34,128 53.1 8.9 Fiscal year ending December 31, 2026 (forecast) － 50.00 － 45.00 95.00 58.9 Note) 1. Breakdown of Dividends for the fiscal year ended December 31, 2024 Ordinary dividend 75.00 yen Co mmemorative dividend 5.00 yen (the conso lidated net sales breakthrough 1 trillion yen) 2. The Company commenced a payment of interim dividends from the fiscal year ended December 31, 2025. 3. Consolidated Financial Forecasts for the Fiscal Year Ending December 31, 2026 (From January 1, 2026 to December 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % yen Six months ending June 30, 2026 689,300 (0.8) 48,700 (1.0) 48,800 (2.6) 33,250 (2.6) 87.68 Full-Year 1,311,000 (0.9) 90,000 0.1 90,100 (1.6) 61,130 (4.9) 161.21 Note) The above forecasts are based on the info rmation available as of the date of publication of this document. Actual results are subject to change due to various future events and may differ from these figures.
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3 * Notes (1) Significant changes in the scope of consolidation during the period: No (2) Changes in accounting policies, changes in accounting estimates, and restatements 1) Changes in accounting policies due to revisions to accounting standards, etc.: Yes 2) Changes in accounting policies other than 1): No 3) Changes in accounting estimates: No 4) Restatements: No (3) Number of shares issued (common shares) 1) Number of shares issued at the end of the period (including treasury shares) As of December 31, 2025: 380,004,240 shares As of December 31, 2024: 380,004,240 shares 2) Number of treasury shares at the end of the period As of December 31, 2025: 803,041 shares As of December 31, 2024: 803,041 shares 3) Average number of shares during the period Fiscal Year 2025: 379,201,199 shares Fiscal Year 2024: 379,201,392 shares * The number of shares stated above is calculated on the assumption that the stock split described in “1. Consolidated Financial Results” was implemented at the beginning of the previous fiscal year (Fiscal Year 2024). * Financial reports are not subject to audit procedures to be conducted by certified public accountants or an audit firm.
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4 Consolidated Balance Sheets (Millions of yen) As of December 31, 2024 As of December 31, 2025 Assets Current assets Cash and deposits 228,136 252,058 Notes and accounts receivable - trade, and contract assets 200,952 219,579 Merchandise 71,935 53,670 Work in process 1,668 1,462 Raw materials and supplies 815 864 Returned assets 26,484 37,769 Other 38,997 40,272 Allowance for doubtful accounts (147) (163) Total current assets 568,843 605,514 Non-current assets Property, plant and equipment Buildings and structures 50,418 51,225 Accumulated depreciation and impairment (36,468) (37,125) Buildings and structures, net 13,950 14,100 Land 14,448 14,448 Other 18,434 20,672 Accumulated depreciation and impairment (11,920) (13,421) Other, net 6,514 7,251 Total property, plant and equipment 34,913 35,800 Intangible assets Software 20,224 30,551 Other 59 59 Total intangible assets 20,283 30,610 Investments and other assets Investment securities 22,815 25,124 Guarantee deposits 3,215 3,861 Retirement benefit asset － 6,282 Deferred tax assets 9,797 7,530 Deferred tax assets for land revaluation 2,448 2,520 Other 11,967 12,437 Allowance for doubtful accounts (380) (482) Total investments and other assets 49,863 57,274 Total non-current assets 105,060 123,685 Total assets 673,903 729,200
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5 (Millions of yen) As of December 31, 2024 As of December 31, 2025 Liabilities Current liabilities Notes and accounts payable - trade 162,266 159,850 Electronically recorded obligations - operating 17,528 26,739 Short-term borrowings 4,300 4,300 Current portion of long-term borrowings － 1,700 Income taxes payable 13,790 16,807 Contract liabilities 17,762 17,127 Refund liabilities 26,964 39,247 Provision for bonuses 5,261 5,697 Other 41,819 51,341 Total current liabilities 289,692 322,810 Non-current liabilities Long-term borrowings 1,700 － Lease liabilities 861 1,182 Provision for retirement benefits for directors (and other officers) 613 662 Retirement benefit liability 4,695 3,811 Other 1,094 1,144 Total non-current liabilities 8,964 6,801 Total liabilities 298,656 329,611 Net assets Shareholders’ equity Share capital 10,374 10,374 Capital surplus 16,254 16,254 Retained earnings 339,422 356,326 Treasury shares (143) (143) Total shareholders’ equity 365,909 382,812 Accumulated other comprehensive income Valuation difference on available-for-sale securities 5,891 7,673 Deferred gains or losses on hedges 133 551 Revaluation reserve for land (5,269) (5,201) Foreign currency translation adjustment 363 445 Remeasurements of defined benefit plans 3,771 8,042 Total accumulated other comprehensive income 4,889 11,511 Non-controlling interests 4,447 5,264 Total net assets 375,247 399,588 Total liabilities and net assets 673,903 729,200
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6 Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Millions of yen) Fiscal Year 2024 (Year ended December 31, 2024) Fiscal Year 2025 (Year ended December 31, 2025) Net sales 1,107,668 1,322,791 Cost of sales 883,196 1,070,616 Gross profit 224,471 252,174 Selling, general and administrative expenses 150,110 162,231 Operating profit 74,360 89,943 Non-operating income Interest income 86 330 Dividend income 397 440 Income from recycling 238 293 Share of profit of entities accounted for using equity method 862 727 Foreign exchange gains 696 572 Other 456 434 Total non-operating income 2,739 2,799 Non-operating expenses Interest expenses 55 67 Donations 955 1,145 Provision of allowance for doubtful accounts 150 － Other 7 5 Total non-operating expenses 1,168 1,217 Ordinary profit 75,931 91,525 Extraordinary income Gain on sale of investment securities 11 5 Total extraordinary income 11 5 Extraordinary losses Loss on retirement of non-current assets 94 61 Impairment losses 85 114 Loss on valuation of investment securities 1,923 757 Loss on change in equity － 140 Other － 2 Total extraordinary losses 2,103 1,077 Profit before income taxes 73,840 90,453 Income taxes-current 21,277 26,217 Income taxes-deferred (1,663) (962) Total Income taxes 19,613 25,254 Profit 54,226 65,198 Profit attributable to non-controlling interests 744 895 Profit attributable to owners of parent 53,481 64,303
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7 Consolidated Statements of Comprehensive Income (Millions of yen) Fiscal Year 2024 (Year ended December 31, 2024) Fiscal Year 2025 (Year ended December 31, 2025) Profit 54,226 65,198 Other comprehensive income Valuation difference on available-for-sale securities (1,539) 1,795 Deferred gains or losses on hedges 206 512 Revaluation reserve for land － 68 Remeasurements of defined benefit plans, net of tax 1,088 4,320 Share of other comprehensive income of entities accounted for using equity method 105 68 Total other comprehensive income (138) 6,765 Comprehensive income 54,087 71,964 (Breakdown) Comprehensive income attributable to owners of parent 53,284 70,925 Comprehensive income attributable to non-controlling interests 802 1,039
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8 Consolidated Statements of Changes in Net Assets Fiscal Year Ended December 31, 2024 (Millions of yen) Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders' equit y Balance at beginning of period 10,374 16,254 311,537 (141) 338,025 Changes during period Dividends of surplus (25,596) (25,596) Profit attributable to owners of parent 53,481 53,481 Purchase of treasury shares (2) (2) Net changes in items other than shareholdersʼ equity Total changes during period － － 27,885 (2) 27,883 Balance at end of period 10,374 16,254 339,422 (143) 365,909 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available-for- sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasure- ments of defined benefit plans Total accumulated other compre- hensive income Balance at beginning of period 7,424 (35) (5,269) 289 2,678 5,087 3,838 346,950 Changes during period Dividends of surplus (25,596) Profit attributable to owners of parent 53,481 Purchase of treasury shares (2) Net changes in items other than shareholdersʼ equit y (1,532) 168 － 74 1,093 (197) 609 412 Total changes during period (1,532) 168 － 74 1,093 (197) 609 28,296 Balance at end of period 5,891 133 (5,269) 363 3,771 4,889 4,447 375,247
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9 Fiscal Year Ended December 31, 2025 (Millions of yen) Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares Total shareholdersʼ equit y Balance at beginning of period 10,374 16,254 339,422 (143) 365,909 Changes during period Dividends of surplus (47,400) (47,400) Profit attributable to owners of parent 64,303 64,303 Purchase of treasury shares － Net changes in items other than shareholdersʼ equity Total changes during period － － 16,903 － 16,903 Balance at end of period 10,374 16,254 356,326 (143) 382,812 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available-for- sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasure- ments of defined benefit plans Total accumulated other compre- hensive income Balance at beginning of period 5,891 133 (5,269) 363 3,771 4,889 4,447 375,247 Changes during period Dividends of surplus (47,400) Profit attributable to owners of parent 64,303 Purchase of treasury shares － Net changes in items other than shareholdersʼ equit y 1,782 418 68 81 4,270 6,621 816 7,438 Total changes during period 1,782 418 68 81 4,270 6,621 816 24,341 Balance at end of period 7,673 551 (5,201) 445 8,042 11,511 5,264 399,588
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10 Consolidated Statements of Cash Flows (Millions of yen) Fiscal Year 2024 (Year ended December 31, 2024) Fiscal Year 2025 (Year ended December 31, 2025) Cash flows from operating activities Profit before income taxes 73,840 90,453 Depreciation 8,434 9,340 Impairment losses 85 114 Increase (decrease) in allowance for doubtful accounts 307 117 Interest and dividend income (484) (771) Interest expenses 55 67 Share of loss (profit) of entities accounted for using equity method (862) (727) Loss on retirement of non-current assets 94 61 Loss (gain) on sale of investment securities (11) (5) Loss (gain) on valuation of investment securities 1,923 757 Loss (gain) on change in equity － 140 Decrease (increase) in trade receivables (45,839) (18,675) Decrease (increase) in inventories (36,182) 18,422 Increase (decrease) in trade payables 54,477 6,794 Other, net (1,712) 8,416 Subtotal 54,124 114,506 Interest and dividends received 818 1,136 Interest paid (55) (66) Income taxes paid (17,176) (23,357) Net cash provided by (used in) operating activities 37,711 92,218 Cash flows from investing activities Purchase of property, plant and equipment (3,217) (4,372) Purchase of software (8,869) (15,654) Purchase of investment securities (28) (69) Proceeds from sale of investment securities 20 8 Payments into time deposits － (100) Other, net 146 (286) Net cash provided by (used in) investing activities (11,949) (20,475) Cash flows from financing activities Net increase (decrease) in short-term borrowings (100) － Dividends paid (25,595) (47,390) Other, net (195) (222) Net cash provided by (used in) financing activities (25,891) (47,613) Effect of exchange rate change on cash and cash equivalents 1 3 Net increase (decrease) in cash and cash equivalents (127) 24,132 Cash and cash equivalents at beginning of period 229,615 229,488 Cash and cash equivalents at end of period 229,488 253,620
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11 Segment Information 1. Overview of reportable segments The reportable segments of the Companies are periodically examined by the Board of Directors for the purpose of deciding the allocation of business resources and evaluating the operating results. The Companies' main businesses are "System Integration," whose business fields encompass the construction of information systems and their cutover, and "Service and Support," which has support following the cutover of systems as its business field. Therefore, the Companies are composed of two reportable segments, "System Integration business" and "Service and Support business." The details of the two segments are as follows. The "System Integration business" provides optimized system services ranging from consulting to system design and development, transport and installation work and network construction. The "Service and Support business" provides customers with services such as distributing supplies, hardware and software maintenance, telephone support and outsourcing to support the installed systems and their business operations, totally. (Matters related to changes in the reportable segments, etc.) From the fiscal year ended December 31, 2025, the company has changed the classification method between “System Integration business” and “Service and Support business” pursuant to partially revision of performance management categories for consolidated subsidiaries. Segment information for the fiscal year ended December 31, 2024 has been prepared based on the new classification method of reportable segments. 2. Information concerning net sales, segment profit/loss, segment assets and other items by reportable segments Fiscal Year Ended December 31, 2024 (Millions of yen) Reportable segments Total Adjustment Amount recorded in consolidated financial statements System Integration business Service and Support business Net sales Outside customers sales 727,814 379,853 1,107,668 － 1,107,668 Inter-segment sales/transfers 1,103 1,392 2,496 (2,496) － Total 728,918 381,245 1,110,164 (2,496) 1,107,668 Segment profit 63,914 22,355 86,269 (11,909) 74,360 Segment assets 281,058 136,765 417,823 256,080 673,903 Other items Depreciation 4,924 3,279 8,204 230 8,434 Investments in affiliates accounted for using equity method 1,829 7,068 8,897 － 8,897 Increase in property, plant and equipment and intangible assets 7,095 5,035 12,131 (43) 12,087
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12 Fiscal Year Ended December 31, 2025 (Millions of yen) Reportable segments Total Adjustment Amount recorded in consolidated financial statements System Integration business Service and Support business Net sales Outside customers sales 902,915 419,875 1,322,791 － 1,322,791 Inter-segment sales/transfers 943 1,743 2,686 (2,686) － Total 903,858 421,618 1,325,477 (2,686) 1,322,791 Segment profit 73,572 29,497 103,069 (13,126) 89,943 Segment assets 293,347 156,269 449,617 279,582 729,200 Other items Depreciation 5,302 3,665 8,967 373 9,340 Investments in affiliates accounted for using equity method 2,056 7,126 9,183 － 9,183 Increase in property, plant and equipment and intangible assets 10,888 9,252 20,140 (113) 20,027