Reorganisation of Reportable Segments Into the Digital Risk Business and Other Operations

「From the current interim consolidated accounting period, the Group has changed its reportable segment classification method. Following the change in management policy announced in October 2025, it reviewed its diversified businesses and has promoted the highly profitable and distinctive Digital Risk Business as its core business. Accordingly, based on progress under this strategy and the reorganization of its business portfolio, the Group reviewed its management and performance evaluation classifications and, from the current interim consolidated accounting period, changed the reportable segments previously classified as the DX Promotion Business and Smart City Business to the Peripheral Businesses and Other classification.」

「In connection with this change, the Group changed its reportable segments from Digital Risk Business, AI Security Business, DX Promotion Business and Smart City Business to Digital Security, Physical Security, and Peripheral Businesses and Other.」

「From the first quarter, the company reviewed its business segment classification method, classifying FAI Co., Ltd. under the AI Security Business and Actor Co., Ltd. and Metaown Co., Ltd. under the newly established Smart City Business.」

「During the first quarter of the fiscal year, the company classified GloLing Co., Ltd. under the Digital Risk Business and Actor Co., Ltd. under the DX Promotion Business. From the second quarter, it classified GloLing Co., Ltd. under the DX Promotion Business and Actor Co., Ltd. under the Digital Risk Business.」

「The reporting-segment classifications have been changed since the end of the previous consolidated fiscal year, and the comparison and analysis with the cumulative period of the same quarter of the previous year are presented based on the revised classifications.」

「The reporting-segment classifications have been changed since the end of the previous consolidated fiscal year, and the comparison and analysis with the cumulative period of the same quarter of the previous year are presented based on the revised classifications.」

「From the end of the fiscal year, the company changed its presentation method to report the AI Security Business, previously included in Other, as a reportable segment because its quantitative importance increased after Asahi Anzen Gyomu-sha Co., Ltd. became a consolidated subsidiary. It also changed its presentation method to report the digital government-related business previously included in Other as the DX Promotion Business, a reportable segment, because its importance increased following the establishment of JAPANDX Co., Ltd.」

「The Digital Risk Business comprises social risk services relating mainly to risks arising from various forms of online social media, including social networking services, blogs and internet message boards, as well as insider threat detection services that comprehensively analyze diverse data, including internal corporate log data.」

「The Digital Risk Business comprises social risk services relating mainly to risks arising from various forms of online social media, including social networking services, blogs and internet message boards, as well as insider threat detection services that comprehensively analyze diverse data, including internal corporate log data.」

「The Digital Risk Business comprises social risk services relating mainly to risks arising from various forms of online social media, including social networking services, blogs and internet message boards, as well as insider threat detection services that comprehensively analyze diverse data, including internal corporate log data.」

「In presenting segment information, the company reviewed the reportable segment classification at the end of the previous fiscal year, added the Risk Intelligence Business, previously included in the Other Business, to the Social Risk Business, and reported the combined business as the Digital Risk Business.」

「The Group had previously reported only the Social Risk Business because the other business segments were not material and therefore omitted the information. However, as the importance of the Other Business increased in the previous fiscal year, the Group began presenting segment information from that fiscal year. In presenting segment information, it reviewed the reportable segment classification at the end of the previous fiscal year, added the Risk Intelligence Business, previously included in the Other Business, to the Social Risk Business, and reported the combined business as the Digital Risk Business. Comparisons and analysis with the cumulative second quarter of the current fiscal year are based on the revised classification.」

「The Group had previously reported only the Social Risk Business because the other business segments were not material and therefore omitted the information. However, as the importance of the Other Business increased in the previous fiscal year, the Group began presenting segment information from that fiscal year. In presenting segment information, it reviewed the reportable segment classification at the end of the previous fiscal year, added the Risk Intelligence Business, previously included in the Other Business, to the Social Risk Business, and reported the combined business as the Digital Risk Business. Comparisons and analysis with the cumulative first quarter of the current fiscal year are based on the revised classification.」

「As the importance of the Other Business increased during the fiscal year, the company began presenting segment information from the current fiscal year. In presenting segment information, it reviewed the reportable segment classification at the end of the fiscal year, added the Risk Intelligence Business, previously included in the Other Business, to the Social Risk Business, and reported the combined business as the Digital Risk Business.」