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 shallprevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms ofdamages arising from the translation.
August 9, 2024
Corporate Name:
Trading Name:
President/CEO:
Code Number：Contact:

IPS, Inc.
IPS, Inc.
Koji Miyashita
4390 Prime Market of theTokyo Stock Exchange
Hiroyasu Akatsu,
General Manager,
Administration Department(TEL. +81-3-3549-7719)

Notice Regarding the Recording of Non-Operating Income (Foreign Exchange Gains) and
the Revision of the Consolidated Earnings Forecast for the Second Quarter (Cumulative)
During the first quarter of the fiscal year ending March 2025 (April 1, 2024 - June 30, 2024), we recorded nonoperating income (foreign exchange gains). We would like to inform you of the details below.
In addition, based on the recording of non-operating income and recent performance trends, we have revised
the consolidated earnings forecast for the second quarter cumulative period of the fiscal year ending March
2025, which was previously announced on May 10, 2024, as detailed below.
1. Recording of Non-Operating Income (Foreign Exchange Gains)
Due to fluctuations in the exchange rate, during the first quarter of the fiscal year ending March 2025 (April
1, 2024 - June 30, 2024), we recorded foreign exchange gains of 350 million yen in the consolidated
financial statements and 367 million yen in the non-consolidated financial statements as non-operating
income.
These gains primarily resulted from the valuation of foreign currency-denominated receivables andpayables held by our group based on the exchange rate at the end of the period (161.14 yen). The amountis subject to change depending on future exchange rate movements.

2. Revision of the Consolidated Earnings Forecast Figures for the Second Quarter (Cumulative) of the Fiscal
Year Ending March 2025 (April 1, 2024 - September 30, 2024)
Net sales
Previously
announced forecast

OperatingprofitOrdinary
profitProfit attributable toBasic earnings

owners of parent

per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

6,500950750350

27.20

Newly
announced forecast7,250

1,500

1,270760

59.06

Changes

750

550

520

410

－

Changes (%)

11.5%

57.9%

69.3%

117.1%－5,248

925

1,558

954

76.74

(Reference)
Results for the second quarter(cumulative) of the fiscal year
ended March 31, 2024

3. Reason for revision
The business progress of our group during the first quarter of the fiscal year (April 1, 2024 - June 30, 2024)
has generally proceeded as planned. However, in terms of performance figures, while the Domestic
Telecommunications Business was impacted by a retrospective settlement of interconnection fees (260million yen) between telecommunications carriers from previous fiscal years, the Global
Telecommunications Business performed well. This included the early recording of equipment sales
related to the Philippine Domestic Submarine Cable Network (PDSCN), resulting in a performance thatsignificantly exceeded our plans.
For the second quarter consolidated accounting period, we are revising our cumulative earnings forecast
for the second quarter, announced on May 10, 2024, upward. This revision reflects the continued strong
performance of the Global Telecommunications Business, including the expansion of PDSCN-related
services, as well as the expected progress in the Domestic Telecommunications and Medical & Healthcare
businesses as planned.
As for the full-year consolidated earnings forecast, we have not made any changes to the figuresannounced on May 10, 2024, as the strong progress in the Global Telecommunications Business isexpected to cover the impact of the retrospective settlement in the Domestic Telecommunications
Business.
Additionally, in the first quarter consolidated cumulative period, we recorded ¥350 million in foreignexchange gains under non-operating income. This gain primarily resulted from the comparison of thevaluation of foreign currency-denominated receivables and payables held by the group at the end of theprevious fiscal year (exchange rate of 151.40 yen) with the exchange rate at the end of the first quarter
consolidated accounting period. Since this may fluctuate depending on future exchange rate conditions,the earnings forecasts for the second quarter cumulative period and the full year have been preparedassuming no foreign exchange gains or losses, except for the confirmed amounts in overseas subsidiaries.
Note: The above forecasts are based on information available as of the date of publication of this document,
and actual results may differ from these forecasts due to various factors.