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STRATEGY

STRATEGY

01.Interview with the CEO
02.Medium-term Management Policy
03.Progress of Medium-term Management Policy
04.Interview with the CTO
05.Company-wide DX Project

01. Interview with the CEO

President
Executive Officer and CEOJun Tanaka

We will grow alongside AI
to achieve even greater scale,
and use the power of IT to build a better society.

Sales and profit were both at an all-time high in FY2026.
In the next fiscal year, we will strengthen our hybrid strategy that combines cloud and on-premises solutions, with a focus on AI.

In FY2026, WingArc achieved record-high sales and profits for both its Business Document Solution (BDS) and Data Empowerment Solution (DE) segments. This was driven by growth in recurring revenue (maintenance, cloud, and subscriptions) and strengthened cost management across the group. Moving forward, we seek to maintain high profitability by balancing sales growth with cost management.

The market environment in FY2026 continued to be characterized by strong demand for cloud services, as shown by the fact that they recorded growth of over 30% compared to the previous period. Nevertheless, due to price increases in overseas cloud services, there is a growing trend of returning to on-premises solutions from a cost and reliability standpoint. This trend is particularly strong in enterprise companies, and when we released a new cloud version of MotionBoard with GenAI in December 2025, we received many requests for an early release of the on-premises version. In response to this, we plan to speed up the release of the on-premises version of the new MotionBoard and begin offering it early in this fiscal year.

Against this backdrop, we will strengthen our hybrid strategy, which involves expanding our market presence through both cloud and on-premises solutions. On-premises solutions is an area where we have won trust over many years, owing to our advanced technical expertise. Because we possess these powerful strengths, we aim to accurately identify customer needs and accelerate our growth.

We will achieve improved operational efficiency through the comprehensive use of AI.
We will also eliminate the risk of tampering using AI and support Japanese businesses.

FY2026, in which we saw strong performance in both sales and profits, was also a year where we laid the groundwork. With the increasing attention on the use of AI, we took a close look at how it is transforming the world, and carried out in-depth reviews on how we should utilize it. As a result, we have significantly boosted operational efficiency through the use of AI in development and established a system that allows our employees to focus their efforts on creating new value that AI cannot generate.

At the same time, we have begun addressing the risks associated with the adverse effects of increasingly sophisticated GenAI technology, such as the creation of fake documents. If data were to be tampered with at government agencies, local governments, or large corporations that implement our services, the social impact would be enormous. This is precisely why we released "Trustee," a digital trust service that addresses this concern early on. For the first phase, we released a timestamp service that verifies when a document was issued or created. Following this, we plan to continue expanding our range of digital trust services this fiscal year, which will become essential in the age of AI.

One such example is the e-seal (electronic seal). This is essentially a digital version of a company seal that certifies who issued a document. In Europe, where legislation is evolving, there are countries where timestamps and e-seals have become mandatory for transactions. In Japan, the Ministry of Internal Affairs and Communications will establish an e-seal certification system in 2026. In line with this full-scale rollout, we will be releasing our e-seal feature. Currently, six companies have been certified by the Ministry of Internal Affairs and Communications for timestamp services; our company obtained certification in just about six months. For e-seals, we hope to be among the first to obtain certification thanks to our unrivaled technical expertise, thereby helping to ensure reliability in business and contributing to the global business operations of Japanese companies.

Leading the way in the digital transformation of local governments.
By establishing data infrastructure, we will contribute to the enrichment of people's lives.

The standardization of local government information systems, spearheaded by the Ministry of Internal Affairs and Communications and the Digital Agency with a target date of March 2026, has been delayed due to various challenges, and urgent action is still required. In light of this, we will continue to support local governments and promote digital transformation (DX) in the public sector.

That said, our efforts related to the DX of local governments will be in full swing once standardization is complete. Our goal is to build data infrastructure for local governments. At present, they manage three separate networks for security measures: the Internet connecting residents and municipalities, the government-only network (LGWAN) connecting local governments, and the My Number Network under the jurisdiction of the government. If we can create reliable data infrastructure that securely connects these three networks, it will significantly improve operational efficiency. This initiative can also help address the shortage of local government staff (the 2040 Problem). By establishing data infrastructure, we aim to contribute to the maintenance of local government functions in Japan and to the enrichment of people's lives.

Currently, approximately 400 out of 1,741 organizations have implemented our EUC solution (Govlong EUC), and we also operate local websites that serve as contact points for residents for around 400 organizations. We will continue to steadily build on our track record and aim to further expand our market share in the local government DX market.

In FY2027, we aim to enhance the value we provide to customers through the release of AI-enabled products and new services.

In FY2027, we will be gradually rolling out AI-enabled versions of our products.
Many of our products function as data infrastructure for managing and utilizing corporate data, and GenAI is an application for utilizing this infrastructure. Because these mesh well together, we are pursuing a strategy to further enhance our products by leveraging GenAI. This will help us increase the value of our products.

In April 2026, we integrated invoiceAgent, the electronic invoice platform in our BDS segment, under SVF, our digital invoice platform brand. This will further advance SVF as a comprehensive data infrastructure (data distribution platform) that supports the utilization of forms, documents, and data. By incorporating features such as Trustee, which are essential in the age of AI, we are able to enhance the value we provide to our customers. In addition, we intend to improve the value of our products while ensuring the reliability and safety of data infrastructure by utilizing GenAI for certain scenarios, such as input of forms received from external sources and creation of form formats.

Furthermore, following the release of the on-premises version of the new MotionBoard equipped with GenAI, our DE segment will also release an AI-powered version of the Dr.Sum data analytics platform. With this tool you will be able to give GenAI a command like "I want to see this kind of data," and it will securely aggregate the relevant data. This is something only our company, with our experience handling sensitive corporate data, can do. We will continue to support customer growth with the new version of Dr. Sum, which provides greater convenience while enhancing data governance.

Guided by the principle of building a better society through the power of data, we strive to empower women and give children a bright future.

With our aim of creating an environment where everyone can feel excited about their work, we have implemented a variety of initiatives. In recent years, we have made significant progress in the advancement of women and the development of young people. Through company-wide surveys and regular CEO roundtables with female employees, we began recommending motivated employees for leadership training. Many of them have begun to stand out and demonstrate even greater success. As a result, the proportion of female managers reached 16.4%, achieving the 2030 target of 15%. Moving forward, we aim to set even higher goals while strengthening our talent management and creating opportunities for each employee to excel, with the goal of nurturing the talent that will shape our future.

In addition, as a result of our efforts across various areas, including human resources, the environment, and society, our ESG ratings from external organizations have also improved since last year. As a company, we aim to continue building upon our commitment to contribute to society, thereby realizing our unique data-driven approach to sustainability.

Our sustainability education programs for elementary, middle, and high school students have also been well-received. Many children expressed deep interest in our experience of how high-speed data processing can lead to CO₂ reduction. I hope that this initiative will help children discover the possibilities of engineering and rediscover the appeal of Japan as a leading nation in manufacturing, thereby contributing to a bright future for Japan.

We contribute to society by supporting corporate data infrastructure and, together with AI, we will deliver on an even greater scale.

Our current medium-term management policy will end in FY2027. Accordingly, we plan to formulate a new management policy this fiscal year looking at the next five years. We will carefully monitor the current market environment, which is highly uncertain, and accelerate our growth, including existing business, AI, and other new business.

Amid the evolution of IT technology, we have expanded our market share in mission-critical areas by leveraging our reliability and technical expertise. GenAI will improve the value of our products in terms of usability and creativity going forward. Using this as a catalyst, we will continue to devote our full efforts to utilizing AI in ways only our company can, and to developing new services.

Personally, I believe that in this age of AI, our company is uniquely positioned to grow alongside AI and provide the data necessary for it to reach its full potential. We have opportunities whenever customers want to securely build something using AI with their own data infrastructure. We will seize this opportunity to achieve further growth through the evolution of our products and expansion of our lineup to include products equipped with features necessary for the AI era.

As AI continues to scale up, how much can we scale up? We hope that all of our stakeholders will look forward to WingArc1st's further success. We ask for your continued support.

WingArc1st Inc.
President, Executive Officer and CEO
Jun Tanaka

02.Medium-term Management Policy

To adapt to significant changes in the business environment following the COVID-19 pandemic, we announced our first medium-term management policy since being listed on the Tokyo Stock Exchange in January 2022. In this policy, we clarified our shift to cloud services and listed our goals of achieving a high cloud growth rate and establishing a data platform to support this growth.

Business Environment

Initiatives for DX and the use of the cloud have become the norm for companies. The market for WingArc1st's solutions is expanding dramatically, partly due to political measures to promote DX and the use of cloud services.

Medium-term management policy

As DX continues to be implemented, the value of data is increasing, but not many companies are able to use data effectively on their own.
WingArc1st will promote DX within more and more companies by sharing the expertise we have cultivated from our experience of data utilization as a platform.

Create a data platform that promotes DX

Strengthen our business model

*1 Includes subscriptions for our cloud services and software licenses

Medium-term Management Targets

*1 Actual results for FY2022, forecast for FY2023 and beyond
*2 Recurring revenue: Cloud services + Maintenance / Subscriptions

03.Progress of Medium-term Management Policy

1. Revenue

In FY2026, the fourth year of our medium-term management policy, we recorded revenue of ¥30.9 billion (+7.8% YoY).
・Licenses / Services
While software licenses and professional services remained at a high level from the previous period due to increased DX investment, particularly in large companies, revenue fell slightly by 5.0% YoY due to the postponement of some large-scale projects.
・Recurring Revenue
Thanks in part to the contribution of WingArcNEX Inc., which became a subsidiary in June 2025, we achieved significant growth of 16.0% YoY, mainly in cloud services.
For FY2027, the final year of our mid-term management policy, we plan to increase revenue to ¥34.3 billion (up 10.8% YoY) and EBITDA to ¥12.1 billion (up 14.9% YoY) . We remain fully committed to achieving our mid-term management goals.

2. Medium-term targets

For FY2026, the cloud business achieved a CAGR of 28.3%, driven by the strong performance of SVF Cloud and Dr.Sum Cloud, as well as the full acquisition of WingArcNEX Inc., which provides cloud services for the public sector. As a result of the steady growth of maintenance, cloud, and subscriptions, the recurring ratio rose from the previous year to 65.6%. EBITDA reached ¥10.5 billion as a result of strengthening investments while maintaining appropriate cost control.
In FY2027, the final year of our mid-term management policy, we will continue to steadily implement our strategies to achieve our mid-term management goals.

3. Strategic Investments

Implementation of strategic investments
Investment Ratio (3-year Cumulative Total)

The three-year strategic investment period ended in FY2025, with total investments at ¥5.18 billion, due to partial efficiency gains against the original plan of ¥5.5 billion. Investments in Sales&Marketing focused on acquiring pipelines for cloud services, contributing to higher cloud growth rates. For development-related investments, we aggressively enhanced the functionality of cloud services and were able to release various products centered on invoiceAgent. Personnel expenses were for the 58 employees hired under the strategic investment framework and who are already making immediate contributions. Going forward, we aim to achieve further growth by effectively utilizing the various resources obtained through strategic investments.

04.Interview with the CTO

Director
Executive Officer and CTOKo Shimazawa

We will accelerate our business through the use of AI,
and become the go-to choice in the new era of the IT market for our technical expertise and reliability.

With interest in AI and DX at an all-time high, now is the perfect opportunity.
WingArc will enhance and expand each product with AI.

In recent years, digital transformation (DX) and the use of AI have been vigorously promoted across various industries with the aim of improving productivity. Having developed numerous IT products using proprietary technology and contributed to our customers' business growth, the current strong appetite for IT investment presents an ideal opportunity for our company. We will capitalize on this momentum to attract more new customers and further expand our market share. Furthermore, we aim to boost productivity in Japan by helping more companies grow and become more competitive.

To that end, we will actively concentrate our efforts on enhancing and expanding our products through the use of AI. For example, in December 2025, we launched a new version of our data utilization platform, MotionBoard, equipped with GenAI. Additionally, we also released our AI Assistant for MotionBoard Cloud re:Act, an AI chatbot designed to assist with operations. The GenAI version of MotionBoard allows users to generate dashboards through dialogue with AI, thereby reducing screen creation time from half a day to as little as 10 seconds.
While we have already received a great response for this solution, we will continue to accelerate the use of AI across our other products. We plan to continue improving user convenience and enhancing the value of each product.

Our products are not meant to be replaced by AI, but rather to be enhanced by it.

The emergence of GenAI took many people by surprise, and raised expectations for productivity improvements. However, there are growing concerns that many existing IT products may be replaced by AI.

AI is not a magical technology that can do everything. We have our strengths and weaknesses, and as a result, we believe that our products cannot be replaced by AI.

Part of the reason is that the features of our products and AI are very different.

For example, GenAI is good at coming up with answers to prompts. One of its key features is letting users issue commands similar to a dialogue, which makes it user-friendly. However, its responses may vary even for similar commands. For business applications, being unable to identify what has been derived from data is a weakness. In other words, when it comes to business use, AI is highly flexible but lacks precision (or a solid basis).

Our products handle important data that supports core company operations. For example, our SVF solution designs, outputs, stores, and distributes invoices and contracts between companies. What is needed in this scenario is reliability and accuracy. Given that a highly secure environment is essential, it is not well-suited to the high degree of flexibility inherent in AI. For these reasons, we believe the likelihood of AI replacing our products is extremely low from the perspectives of governance and security.

Furthermore, we must not forget that our proprietary technologies are not publicly disclosed and were developed based on our customers' needs. Since this technology cannot be captured as training data, it's safe to say that it would be difficult for AI to replicate our technology. In addition, even if future advancements were to produce similar technologies or products, our business model, which focuses on building systems in collaboration with our customers, is highly valued. Moreover, in terms of the soft aspects of our service, from implementation support to utilization, AI cannot compare. Our integrated manufacturing and sales structure remains a unique source of value even in this age of AI.

That said, the high degree of flexibility in AI is extremely effective in improving user convenience (such as in the UI). For example, it works well with our DE solutions, such as MotionBoard and Dr.Sum. Just like the GenAI version of MotionBoard mentioned earlier, it can be used as a starting point to help users achieve what they want to do. Furthermore, even in the case of SVF, which I mentioned earlier as being poorly suited for AI, it is possible to deliver value at a lower cost by utilizing AI in areas such as data analysis and text recognition.

To put it simply, AI has the potential to create even more value when combined with the data stored by our highly reliable products. It is precisely for this reason that we are actively leveraging AI to enhance the value of each solution. We will be integrating AI into many of our products in the future, so please stay tuned.

Training engineers with a broad perspective: A necessity in the age of AI.

The use of AI has significantly transformed the product development process, and the skills required of engineers have also changed. For example, as AI streamlines the process of writing programs, there is now a growing demand for professionals who can create more sophisticated programs that go beyond what is found in AI training data. Because we are in the rapidly evolving field of IT, we need a broad perspective and flexible thinking to respond to all kinds of changes.

We believe that no matter how the world changes, individuals who can stay true to the essence of development and view things from multiple perspectives will always be able to create new value. As such, we are focusing on nurturing engineers who will lead the way in this new era.

For example, D.E.BASE (Data Empowerment BASE), which we opened as an innovation lab for engineers, is a multifaceted space equipped with metalworking machines and 3D printers. It enables the creation of new value through the integration of hardware and software. By being in this space, engineers can gain insights that they couldn't have gained just by looking at a computer screen. In addition, we have implemented a framework designed to help participants develop the ability to grasp the essence of development, such as why we something is being done and what is required, rather than focusing on the surface level. Through this, we are training human resources who can develop while looking out at the wider world of IT.

We will continue to work closely with our customers in good faith and support their growth, thereby creating even greater value for IT in the age of AI.

In 2025, we launched not only AI-powered products but also a new digital trust service^*1. This service, which has a timestamp function to verify when a document was issued or created, is essential in the age of AI for addressing the risks of forgery and tampering with forms and other AI-generated documents.

In addition to enhancing the value of our products through new technologies, we are also committed to creating products that meet the needs of the society where those technologies are being utilized. This is precisely the kind of thing that WingArc1st, a leading company in the field of form and document management for nearly 30 years, should do.

Our goal is to ensure that our customers can confidently adopt and utilize new IT technologies and thereby grow as a result. By steadfastly supporting this, we will embody our core value of "Build the Trust" and earn even greater trust.

Even in the age of AI, we will continue to create tangible value through our proven technology, so we hope you will continue to look forward to our growth.

*1 Trustee: A digital trust service brand provided by WingArc1st. Launched in 2025, this service is capable of applying timestamps at a rate of 1,000 documents per second—the fastest in Japan (*a). (Certified by the Ministry of Internal Affairs and Communications (*b))
(*a) 1,000 times faster than existing products (according to our research)
(*b) Trustee Timestamp uses WingArc's Timestamp service, a time authentication service certified by the Minister of Internal Affairs and Communications in Japan pursuant to the Ministry of Internal Affairs and Communications Notification No. 146 of 2021.

WingArc1st Inc.
Director, Executive Officer and CTO
Ko Shimazawa

05.Company-wide DX Project

WingArc1st believes that DX is a data-centered transformation that aims to create better companies and a better society by maximizing the value of data. Through DX, the company aims to maximize human performance, improve corporate performance by using data as a weapon for business, and also speed up the distribution of information and the transformation of business transactions across companies and society.

To achieve these goals, WingArc1st is promoting a company-wide DX project. The project is led by a steering committee comprised of CEO Jun Tanaka, CTO Ko Shimazawa and CFO Taisuke Fujimoto.

Under the leadership of the steering committee, this project supports a project management system that aims for transformation in terms of both business reform and the development of digital infrastructure. The Corporate Planning Group and the Corporate DX Division are at the center of this initiative.
Cross-departmental projects are underway and monitored regularly.

We are working on transformation through business reform by developing a system and culture that will realize diverse careers and workstyles for employees, creating a system that improves skills and knowledge, eliminates routine work, and creates a business platform for inter-company creation.

Meanwhile, we are promoting transformation through the development of digital infrastructure by consolidating customer data for data-driven management, renewing core systems to boost business growth and advance business management, and automating IT delivery to support flexible work styles.

Through these efforts, WingArc1st aims to focus on what only humans can do, while maximizing the value of human capabilities.