Note: This document has been translated from 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.

August 9, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
Company name:
IX Knowledge Inc.
Listing:
Tokyo Stock Exchange
Securities code:
9753
URL:
https://www.ikic.co.jp
Representative:
Fumio Ando, President , Chief Executive Officer
Inquiries:
Akihiro Nakaya, Senior Managing Executive Officer , Chief Executive Officer
Telephone:+81-3-6400-7000
Scheduled date to commence dividend payments:–
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30,2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2024

5,459

(0.8)

446

(12.5)

492(10.8)

336(9.5)

June 30, 2023

5,504

–

509

–

552

–

372

–

Note: Comprehensive income

For the three months ended June 30, 2024:
For the three months ended June 30, 2023:

Basic earnings
per share
Three months ended[(14.2)%][–%]

Diluted earnings
per share
Yen

June 30, 2024

¥404 million¥472 million

Yen

–
–

35.23

June 30, 2023
38.58
Note: The Company started preparing consolidated financial statements from the end of the fiscal year ended March 31, 2023. Therefore,
year-on-year changes for the three months ended June 30, 2023 are omitted.
During the fiscal year ended March 31, 2024, the Company finalized the provisional accounting treatment for businesscombinations. The figures for the three months ended June 30, 2023 reflect the finalization of the provisional accounting
treatment.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

June 30, 2024

13,461

8,931

66.4

March 31, 2024

13,652

8,813

64.6

Reference:

EquityAs of June 30, 2024:
As of March 31, 2024:¥8,931 million¥8,813 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025–

Fiscal year-end

Total

Yen

Yen

0.00

–

30.00

30.00

0.00

–

40.00

40.00

–

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None
Breakdown of the fiscal year-end dividend for the fiscal year ending March 31, 2025: Common dividend of 35.00 yen andcommemorative dividend of 5.00 yen (for the 25th anniversary of the Company’s inception)

3. Consolidated financial results forecast for the fiscal year ending March 31, 2025 (from April 1, 2024 toMarch 31, 2025)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year

22,231

Operating profit% Millions of yen

%

2.2

5.9

1,752

Profit attributable toowners of parent

Ordinary profit
Millions of yen%

1,817 4.5

Note: Revisions to the financial results forecast most recently announced: None

Millions of yen

Basic earnings
per share%Yen

1,216 (4.6)

126.12

* Notes(1) Significant changes in the scope of consolidation during the period: None
Newly included: –Excluded:–(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

10,800,000 shares

As of March 31, 2024

10,800,000 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

1,242,154 shares

As of March 31, 2024

1,238,465 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2024

9,561,260 shares

Three months ended June 30, 2023

9,648,419 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: Yes (voluntary)* Proper use of earnings forecasts, and other special matters
The forecast figures stated above are projections based on currently available information and contain many
uncertainties. Actual results may differ from the forecast figures above due to changes in business conditions
and other factors.
For matters related to the above forecasts, please see page 3 of the Attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ...........................................................................2(1) Explanation of Operating Results..........................................................................................................2(2) Explanation of Financial Position .........................................................................................................2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .....3
2. Quarterly Consolidated Financial Statements and Principal Notes ...........................................................4(1) Quarterly Consolidated Balance Sheets ................................................................................................4(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30 .........................................................................................................6
Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30 .........................................................................................................7(3) Notes to Quarterly Consolidated Financial Statements .........................................................................8(Notes on going concern assumption) ..............................................................................................8(Notes in case of significant changes in shareholders’ equity) .........................................................8(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ......................................................................................................................................8(Notes on segment information, etc.) ...............................................................................................8(Notes on quarterly consolidated statements of cash flows) ............................................................8(Significant subsequent events) ........................................................................................................91

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended June 30, 2024, the Japanese economy was on a gradual recovery track due in partto improvements in employment conditions and income environment and recovery in consumption mainly driven
by inbound tourism demand. Meanwhile, there are concerns over possible impacts of price increases caused byforeign exchange trends, geopolitical risks, and other factors, and thus the economic outlook remains uncertain.
In the domestic information services market, companies’ continuing efforts on digital transformation (DX)to promote business transformation and work-style reforms led to strong demand for IT services that support
these initiatives. However, given uncertainties remaining in the economic landscape, their impacts on IT
investments by companies need to be closely monitored.
Under these circumstances, the Group has established its Group Purpose, “Connecting people one world,”
aimed at fostering a corporate culture that develops a group-wide management system in order to connect IT andsociety through co-creation and create a prosperous future. Under this Group Purpose, the Group has added nonfinancial perspectives, such as human capital that contributes to improving corporate value, to its medium-term
management policy, centered on the three pillars of expanding core businesses, creating next growth businesses,
and strengthening business foundations, and worked to expand its capabilities through sustainability
management by combining financial and non-financial aspects.
Specifically, the Group strove to expand its core businesses by enhancing the ability to deal with cloudnative development through cross-sectional human resources development and operational support by theCompany’s special unit, as well as by strengthening the Group’s sales system and collaboration with partnercompanies to respond to diversifying customer needs. In addition, the Group advanced efforts on business
innovation utilizing cutting-edge digital technologies through co-creation with its customers and partnercompanies. Further, the Group promoted additional initiatives by positioning investments in businesses throughalliances and M&A, which it had long been working on, as a means of strengthening its business foundations
over the medium to long term.
In terms of trends by item of services for the three months ended June 30, 2024, in the Consulting and
System Integration Services, orders received were strong but fell below the level marked in the same period of
the previous fiscal year, resulting in a year-on-year decline in net sales. In the System Management Services,
owing in part to the expansion of infrastructure and environment development projects mainly via leadingvendors, net sales increased year on year.
As a result, for the three months ended June 30, 2024, net sales were 5,459 million yen, down 0.8% year on
year. In terms of profits, due to the posting of losses expected to occur on unprofitable projects, operating profit
was 446 million yen, down 12.5% year on year, ordinary profit was 492 million yen, down 10.8% year on year,
and profit attributable to owners of parent was 336 million yen, down 9.5% year on year.
During the fiscal year ended March 31, 2024, the Company finalized the provisional accounting treatment
for business combinations. The figures for the previous fiscal year in comparative information reflect the
finalization of the provisional accounting treatment.
(2) Explanation of Financial Position
AssetsTotal assets as of June 30, 2024 amounted to 13,461 million yen, a decrease of 190 million yen from March 31,
2024. This is mainly attributable to a decrease in cash and deposits of 238 million yen, an increase in investment
securities of 110 million yen, and a decrease in deferred tax assets of 29 million yen.
Liabilities
Total liabilities as of June 30, 2024 amounted to 4,529 million yen, a decrease of 309 million yen from March
31, 2024. This is primarily attributable to a decrease in provision for bonuses of 539 million yen and increases
in accrued expenses of 151 million yen and deposits received of 134 million yen, which both are included inother.
2

Net assets
Total net assets as of June 30, 2024 amounted to 8,931 million yen, an increase of 118 million yen from March
31, 2024. This is mainly attributable to increases in valuation difference on available-for-sale securities of 66
million yen and retained earnings of 50 million yen.
As a result, the equity-to-asset ratio increased to 66.4% from 64.6% as of March 31, 2024.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There are no revisions to the full-year financial results forecast for the fiscal year ending March 31, 2025 that
was announced on May 10, 2024 at this point. This is because the Company believes that, in view of the financial
results for the three months ended June 30, 2024 and the current business conditions and environment, they havebeen trending within the range of the forecast.
Meanwhile, actual results may differ from the forecast figures due to various factors going forward.

32. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsSecurities
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Software
Goodwill
Customer-related intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 2024

5,798,941

5,560,855

3,512,203

3,500,994

10,000189,406
ሺ225)
9,510,326

10,000184,028
ሺ225)
9,255,651

78,737
116,992
12,656208,386

76,791
116,992
13,599207,384

57,556
137,129
133,714
8,835
337,235

50,979131,416
128,1428,835
319,374

2,672,076
659,820
264,405
3,596,302
4,141,924
13,652,250

2,782,793
629,849
266,432
3,679,075
4,205,834
13,461,486

(Thousands of yen)
As of March 31, 2024
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on orders received
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5

As of June 30, 2024

800,52060,000367,777
207,864
1,130,318

807,950
60,000343,319
181,169
590,573

37,625–62,063
469,649
3,135,818

104,536
811,327
2,898,875

140,000
1,428,060
40,12565,27529,8001,703,260
4,839,078

125,000
1,372,507
38,19865,29829,8001,630,803
4,529,679

1,180,897
1,106,558
6,106,689
ሺ633,730)
7,760,415

1,180,897
1,109,089
6,156,709
ሺ635,554)
7,811,141

878,016
174,739
1,052,756
8,813,171
13,652,250

944,766
175,898
1,120,665
8,931,806
13,461,486

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodMiscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the three months ended
June 30, 2023
5,504,920
4,286,062
1,218,858
709,234
509,624

For the three months ended
June 30, 2024
5,459,790
4,288,384
1,171,405
725,286
446,119

1,384
24,8195,317

1,667
30,407
4,544

10,000

6,694

1,485
43,007

3,485
46,798326
9336
552,295

296
0
296
492,620

–
–

5
5

–
–
552,295
180,093372,202–372,20200492,626
155,760
336,865–
336,865

6

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the three months ended
June 30, 2023
372,202

For the three months ended
June 30, 2024
336,865

97,995
1,821
99,816472,018

66,7501,158
67,908404,774

472,018

404,774––7

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
Tax expenses are calculated by reasonably estimating an effective tax rate after applying tax effect accounting to
profit before income taxes for the fiscal year that includes the first quarter under review, and multiplying profit
before income taxes by the estimated effective tax rate.
However, in the case where using the estimated effective tax rate results in extremely unreasonable tax
expenses, the statutory effective tax rate is used instead.
(Notes on segment information, etc.)[Segment information]
This information is omitted since the Group has a single segment consisting of the information services business.
(Notes on quarterly consolidated statements of cash flows)
Quarterly consolidated statements of cash flows for the three months ended June 30, 2024 have not been prepared.
Depreciation (including amortization of intangible assets except for goodwill) and amortization of goodwill forthe three months ended June 30, 2023 and 2024 are as shown below.
In addition, during the previous fiscal year, the Company finalized the provisional accounting treatment forbusiness combinations. The amounts for the three months ended June 30, 2023 reflect a significant revision to
the initial allocation of acquisition costs following the finalization of the provisional accounting treatment.
(Thousands of yen)

Depreciation
Amortization of goodwill

For the three months ended
June 30, 2023
16,2525,713

8For the three months ended
June 30, 2024
15,8605,713

(Significant subsequent events)(Disposal of treasury shares as restricted stock compensation)
The Board of Directors of the Company, at its meeting held on July 18, 2024, resolved to dispose of treasury
shares as restricted stock compensation (hereinafter the “Disposal of Treasury Shares”) without contribution, andconducted the Disposal of Treasury Shares as follows.
1. Outline of the disposal(1) Disposal dateAugust 9, 2024

(2)Class and number of sharesdisposed of

6,298 shares of the Company’s common stock(3)

Allottees

4 directors of the Company (excluding outside directors)

(4)

Other

The Disposal of Treasury Shares was conducted to granttreasury shares without contribution as compensation for
directors (Article 202-2 of the Companies Act). The total
disposal amount is 7,097,846 yen, the amount calculated bymultiplying the closing price (1,127 yen) of the Company’scommon stock on the Tokyo Stock Exchange on July 17,
2024, the business day immediately preceding the date of theresolution of the Board of Directors, used as the fair disposal
price, by the aforementioned number of shares disposed of.

2. Purpose and reason for the disposal
The Board of Directors of the Company, at its meeting held on April 28, 2022, resolved to introduce a Restricted
Stock Compensation Plan for the purpose of providing the Company’s directors (excluding outside directors)
with an incentive to continuously improve corporate value and further promoting value sharing with its
shareholders. This plan was approved at the 44th Ordinary General Meeting of Shareholders held on June 23,2022. In light of the Restricted Stock Compensation Plan, the Disposal of Treasury Shares was conducted inaccordance with the resolution at the Board of Directors meeting held on July 18, 2024.

9