Profit jump and new alliances at PayPay Corporation (PAYP) in Q1 2026
PayPay Corporation reported higher revenue and profit for the three months ended June 30, 2026. Total revenue rose to 109,788 million yen from 86,154 million yen a year earlier, supported by growth in transaction and service income and interest income. Operating profit increased from 15,964 million yen to 29,865 million yen, while profit attributable to owners rose from 10,511 million yen to 18,428 million yen. Basic earnings per share improved from 16.66 yen to 27.21 yen. Both the Payment and Financial service segments expanded revenue and segment profit.
Total assets reached 5,493,719 million yen with cash and cash equivalents of 491,087 million yen, deposits of 3,112,287 million yen and borrowings of 757,093 million yen as of June 30, 2026. Net cash from operating activities shifted to an outflow of 54,252 million yen, while financing cash inflows remained sizeable. Strategically, PayPay agreed to acquire 70.2% of T&D Financial Life Insurance Company for approximately 132 billion yen, aiming to add life insurance services, subject to regulatory approvals and other conditions. It also entered a capital and business alliance with Seven & i Holdings, under which PayPay plans to purchase 48,309,178 Seven & i shares for 100 billion yen at 2,070 yen per share and expects Securities on its balance sheet to increase by 100 billion yen as the partnership deepens around IDs, PayPay Points and data utilization.
Positive
- Operating profit increased to 29,865 million yen from 15,964 million yen, while profit attributable to owners rose to 18,428 million yen and basic EPS to 27.21 yen, reflecting substantial year-on-year profitability growth.
- PayPay agreed to acquire 70.2% of T&D Financial Life Insurance Company for approximately 132 billion yen, aiming to add life insurance services and combine that platform with its digital customer base.
- A strategic alliance with Seven & i Holdings includes a planned purchase of 48,309,178 Seven & i shares for 100 billion yen, alongside integration of IDs, PayPay Points and joint data-driven initiatives.
Negative
- Net cash from operating activities moved from an inflow of 86,991 million yen to an outflow of 54,252 million yen, reflecting large movements in loans, securities and deposits.
- Borrowings increased from 564,956 million yen to 757,093 million yen between March 31 and June 30, 2026, contributing to a larger, more leveraged balance sheet.
Filing Explained
As of June 30, PayPay had issued 387 thousand shares through exercised options, increasing issued shares to 677,343 thousand; the remaining 3,420 thousand options were extinguished, so existing holders’ percentage ownership can be reduced by the completed issuance.
Key Figures
Key Terms
Payment Services Act regulatory
FVTOCI financial
trust-type stock option plan financial
knockout condition financial
repackaged notes financial
discount margin/spreads financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did PayPay (PAYP) perform in the quarter ended June 30, 2026?
How did the Payment and Financial service segments of PayPay (PAYP) perform?
What is included in PayPay (PAYP)’s planned acquisition of T&D Financial Life Insurance Company?
What are the key terms of PayPay (PAYP)’s alliance with Seven & i Holdings?
How did cash flow and leverage change for PayPay (PAYP) in the latest quarter?
What happened to PayPay (PAYP)’s deposits and lending balances by June 30, 2026?
How did PayPay (PAYP)’s loan loss provision and credit costs evolve in the quarter?
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File Number 001-43184
PayPay Corporation
(Translation of registrant’s name into English)
Yotsuya Tower, 1-6-1 Yotsuya
Shinjuku-ku
Tokyo 160-0004 Japan
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
|
Form 20-F ☒ |
|
Form 40-F ☐ |
|
Table of Contents
Exhibit Index
Exhibit 99.1 — Unaudited Condensed Consolidated Financial Statements for First Quarter ended June 30, 2026
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 7, 2026 |
||
|
|
|
PAYPAY CORPORATION |
||
|
|
|
By: |
|
/s/ Wataru Kagechika |
Name: |
|
Wataru Kagechika |
Title: |
|
Managing Corporate Officer and CFO |
Exhibit 99.1
PAYPAY CORPORATION
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited Condensed Consolidated Financial Statements |
Page |
Condensed Consolidated Statements of Financial Position as of June 30, 2026 |
1 |
Condensed Consolidated Statements of Profit or Loss for the three months ended June 30, 2026 |
2 |
Condensed Consolidated Statements of Comprehensive Income for the three months ended June 30, 2026 |
3 |
Condensed Consolidated Statements of Changes in Equity for the three months ended June 30, 2026 |
4 |
Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2026 |
5 |
Notes to Condensed Consolidated Financial Statements |
|
1. Reporting Entity |
6 |
2. Basis of Preparation |
6 |
3. Material Accounting Policies |
6 |
4. Use of Estimates and Judgments |
7 |
5. Segment Information |
7 |
6. Cash and Cash Equivalents |
9 |
7. Guarantee Deposits |
9 |
8. Accounts Receivable |
10 |
9. Loans and Advances to Customers |
10 |
10. Securities |
10 |
11. Intangible Assets |
11 |
12. Deposits |
11 |
13. Accounts Payable |
11 |
14. Borrowings and Lease Liabilities |
12 |
15. Issued Capital and Reserves |
12 |
16. Revenue |
13 |
17. Operating Expenses |
15 |
18. Earnings Per Share |
16 |
19. Share-Based Payments |
16 |
20. Financial Instruments |
16 |
21. Related Party Transactions |
21 |
22. Commitments |
21 |
23. Supplemental Cash Flow Information |
21 |
24. Additional Information |
22 |
25. Subsequent Events |
22 |
26. Approval of Condensed Consolidated Financial Statements |
22 |
PayPay Corporation
Condensed Consolidated Statements of Financial Position (Unaudited)
|
|
(In millions of yen) |
|
|||||||
|
|
Notes |
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Assets |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
6 |
|
|
363,083 |
|
|
|
491,087 |
|
Guarantee deposits |
|
7 |
|
|
74,139 |
|
|
|
57,727 |
|
Call loans |
|
|
|
|
40,014 |
|
|
|
14 |
|
Accounts receivable |
|
8 |
|
|
150,372 |
|
|
|
210,339 |
|
Loans and advances to customers |
|
9,20 |
|
|
2,512,851 |
|
|
|
2,631,267 |
|
Securities |
|
10,20 |
|
|
1,736,835 |
|
|
|
1,791,867 |
|
Other financial assets |
|
20 |
|
|
32,293 |
|
|
|
46,735 |
|
Property and equipment |
|
|
|
|
14,879 |
|
|
|
15,141 |
|
Right-of-use assets |
|
|
|
|
12,175 |
|
|
|
11,379 |
|
Intangible assets |
|
11 |
|
|
66,466 |
|
|
|
66,441 |
|
Goodwill |
|
|
|
|
15,157 |
|
|
|
15,157 |
|
Investments accounted for using the equity method |
|
|
|
|
12,762 |
|
|
|
12,761 |
|
Deferred tax assets |
|
|
|
|
107,275 |
|
|
|
103,076 |
|
Other assets |
|
|
|
|
37,711 |
|
|
|
40,728 |
|
Total assets |
|
|
|
|
5,176,012 |
|
|
|
5,493,719 |
|
Liabilities |
|
|
|
|
|
|
|
|
||
Deposits |
|
12,20 |
|
|
2,952,495 |
|
|
|
3,112,287 |
|
Accounts payable |
|
13 |
|
|
1,122,338 |
|
|
|
1,080,710 |
|
Income tax payables |
|
|
|
|
13,073 |
|
|
|
5,917 |
|
Borrowings |
|
14,20 |
|
|
564,956 |
|
|
|
757,093 |
|
Other financial liabilities |
|
20 |
|
|
48,116 |
|
|
|
51,681 |
|
Provisions |
|
|
|
|
7,403 |
|
|
|
7,447 |
|
Lease liabilities |
|
14 |
|
|
9,549 |
|
|
|
8,910 |
|
Deferred tax liabilities |
|
|
|
|
206 |
|
|
|
223 |
|
Other liabilities |
|
|
|
|
27,115 |
|
|
|
19,524 |
|
Total liabilities |
|
|
|
|
4,745,251 |
|
|
|
5,043,792 |
|
Shareholders’ equity |
|
|
|
|
|
|
|
|
||
Issued capital |
|
15 |
|
|
200,635 |
|
|
|
201,041 |
|
Share premium |
|
15 |
|
|
86,730 |
|
|
|
87,220 |
|
Retained earnings |
|
15 |
|
|
109,869 |
|
|
|
128,299 |
|
Accumulated other comprehensive loss |
|
15 |
|
|
(3,055 |
) |
|
|
(3,143 |
) |
Equity attributable to owners of the parent company |
|
|
|
|
394,179 |
|
|
|
413,417 |
|
Non-controlling interests |
|
|
|
|
36,582 |
|
|
|
36,510 |
|
Total shareholders’ equity |
|
|
|
|
430,761 |
|
|
|
449,927 |
|
Total liabilities and shareholders’ equity |
|
|
|
|
5,176,012 |
|
|
|
5,493,719 |
|
See Notes to Condensed Consolidated Financial Statements
Condensed Consolidated Statements of Profit or Loss (Unaudited)
|
|
|
|
(In millions of yen) |
|
|||||
|
|
|
|
For the three months ended |
|
|||||
|
|
Notes |
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Transaction and service income |
|
|
|
|
56,816 |
|
|
|
69,961 |
|
Interest income |
|
|
|
|
25,435 |
|
|
|
35,144 |
|
Gains (losses) on financial instruments |
|
|
|
|
3,561 |
|
|
|
3,804 |
|
Other operating income |
|
|
|
|
342 |
|
|
|
879 |
|
Total revenue |
|
5,16 |
|
|
86,154 |
|
|
|
109,788 |
|
Point expenses |
|
|
|
|
(13,153 |
) |
|
|
(16,041 |
) |
Settlement related cost |
|
|
|
|
(11,572 |
) |
|
|
(13,190 |
) |
Employee benefit expenses |
|
|
|
|
(10,783 |
) |
|
|
(11,766 |
) |
Provision for loss allowance |
|
|
|
|
(5,240 |
) |
|
|
(8,314 |
) |
Professional and outsourcing services expenses |
|
|
|
|
(7,737 |
) |
|
|
(6,518 |
) |
Other operating expenses |
|
|
|
|
(21,705 |
) |
|
|
(24,094 |
) |
Total operating expenses |
|
5,17 |
|
|
(70,190 |
) |
|
|
(79,923 |
) |
Operating profit |
|
5 |
|
|
15,964 |
|
|
|
29,865 |
|
Share of loss of investments accounted for using the equity method |
|
|
|
|
(105 |
) |
|
|
(60 |
) |
Profit before tax |
|
|
|
|
15,859 |
|
|
|
29,805 |
|
Income tax expense |
|
|
|
|
(5,050 |
) |
|
|
(10,056 |
) |
Profit for the period |
|
|
|
|
10,809 |
|
|
|
19,749 |
|
Attributable to |
|
|
|
|
|
|
|
|
||
Owners of the parent company |
|
|
|
|
10,511 |
|
|
|
18,428 |
|
Non-controlling interests |
|
|
|
|
298 |
|
|
|
1,321 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
(In yen) |
|
||
Earnings per share |
|
|
|
|
|
|
|
|
||
Earnings per share attributable to owners of the parent company (1) |
|
|
|
|
|
|
|
|
||
Basic earnings per share |
|
18 |
|
|
16.66 |
|
|
|
27.21 |
|
Diluted earnings per share |
|
18 |
|
|
16.66 |
|
|
|
27.02 |
|
See Notes to Condensed Consolidated Financial Statements
―2―
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
|
|
(In millions of yen) |
|
|||||||
|
|
|
|
For the three months ended |
|
|||||
|
|
Notes |
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Profit for the period |
|
|
|
|
10,809 |
|
|
|
19,749 |
|
Other comprehensive income (loss) for the period, net of tax |
|
|
|
|
|
|
|
|
||
Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
||
Changes in the fair value of debt instruments at FVTOCI |
|
15 |
|
|
870 |
|
|
|
(109 |
) |
Exchange differences on translation of foreign operations |
|
15 |
|
|
(11 |
) |
|
|
6 |
|
Total other comprehensive income (loss) for the period, net of tax |
|
|
|
|
859 |
|
|
|
(103 |
) |
Total comprehensive income for the period, net of tax |
|
|
|
|
11,668 |
|
|
|
19,646 |
|
|
|
|
|
|
|
|
|
|
||
Total comprehensive income for the period, net of tax attributable to |
|
|
|
|
|
|
|
|
||
Owners of the parent company |
|
|
|
|
11,047 |
|
|
|
18,339 |
|
Non-controlling interests |
|
|
|
|
621 |
|
|
|
1,307 |
|
See Notes to Condensed Consolidated Financial Statements
―3―
Condensed Consolidated Statements of Changes in Equity (Unaudited)
For the three months ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
(In millions of yen) |
|
|||||||||||||||||||||||||||
|
|
|
|
Equity attributable to owners of the parent company |
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Notes |
|
Issued |
|
|
Share |
|
|
Retained |
|
|
Accumulated |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||
Balance as of April 1, 2025 |
|
|
|
|
91,434 |
|
|
|
13,727 |
|
|
|
(4,887 |
) |
|
|
(379 |
) |
|
|
99,895 |
|
|
|
123,836 |
|
|
|
223,731 |
|
Profit for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
10,511 |
|
|
|
— |
|
|
|
10,511 |
|
|
|
298 |
|
|
|
10,809 |
|
Other comprehensive income |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
536 |
|
|
|
536 |
|
|
|
323 |
|
|
|
859 |
|
Total Comprehensive income for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
10,511 |
|
|
|
536 |
|
|
|
11,047 |
|
|
|
621 |
|
|
|
11,668 |
|
Dividends paid to non-controlling interests |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,909 |
) |
|
|
(2,909 |
) |
Dividends paid to the ultimate parent company |
|
|
|
|
— |
|
|
|
— |
|
|
|
(311 |
) |
|
|
— |
|
|
|
(311 |
) |
|
|
— |
|
|
|
(311 |
) |
Issuance of new shares |
|
|
|
|
60,971 |
|
|
|
60,360 |
|
|
|
— |
|
|
|
— |
|
|
|
121,331 |
|
|
|
— |
|
|
|
121,331 |
|
Changes due to business combinations of entities |
|
|
|
|
— |
|
|
|
(36,827 |
) |
|
|
— |
|
|
|
— |
|
|
|
(36,827 |
) |
|
|
(86,358 |
) |
|
|
(123,185 |
) |
Other |
|
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
|
|
(31 |
) |
|
|
3 |
|
|
|
3 |
|
|
|
6 |
|
Total transactions with owners and other transactions |
|
|
|
|
60,971 |
|
|
|
23,533 |
|
|
|
(277 |
) |
|
|
(31 |
) |
|
|
84,196 |
|
|
|
(89,264 |
) |
|
|
(5,068 |
) |
Balance as of June 30, 2025 |
|
|
|
|
152,405 |
|
|
|
37,260 |
|
|
|
5,347 |
|
|
|
126 |
|
|
|
195,138 |
|
|
|
35,193 |
|
|
|
230,331 |
|
For the three months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
(In millions of yen) |
|
|||||||||||||||||||||||||||
|
|
|
|
Equity attributable to owners of the parent company |
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Notes |
|
Issued |
|
|
Share |
|
|
Retained |
|
|
Accumulated |
|
|
Total |
|
|
Non- |
|
|
Total |
|
|||||||
Balance as of April 1, 2026 |
|
|
|
|
200,635 |
|
|
|
86,730 |
|
|
|
109,869 |
|
|
|
(3,055 |
) |
|
|
394,179 |
|
|
|
36,582 |
|
|
|
430,761 |
|
Profit for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
18,428 |
|
|
|
— |
|
|
|
18,428 |
|
|
|
1,321 |
|
|
|
19,749 |
|
Other comprehensive loss |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(89 |
) |
|
|
(89 |
) |
|
|
(14 |
) |
|
|
(103 |
) |
Total Comprehensive income for the period |
|
|
|
|
— |
|
|
|
— |
|
|
|
18,428 |
|
|
|
(89 |
) |
|
|
18,339 |
|
|
|
1,307 |
|
|
|
19,646 |
|
Dividends declared to non-controlling interests |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,379 |
) |
|
|
(1,379 |
) |
Issuance of new shares |
|
15 |
|
|
406 |
|
|
|
213 |
|
|
|
— |
|
|
|
— |
|
|
|
619 |
|
|
|
— |
|
|
|
619 |
|
Share-based payments transactions |
|
|
|
|
— |
|
|
|
277 |
|
|
|
— |
|
|
|
— |
|
|
|
277 |
|
|
|
— |
|
|
|
277 |
|
Other |
|
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
Total transactions with owners and other transactions |
|
|
|
|
406 |
|
|
|
490 |
|
|
|
2 |
|
|
|
1 |
|
|
|
899 |
|
|
|
(1,379 |
) |
|
|
(480 |
) |
Balance as of June 30, 2026 |
|
|
|
|
201,041 |
|
|
|
87,220 |
|
|
|
128,299 |
|
|
|
(3,143 |
) |
|
|
413,417 |
|
|
|
36,510 |
|
|
|
449,927 |
|
See Notes to Condensed Consolidated Financial Statements
―4―
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
(In millions of yen) |
|
|||||||
|
|
|
|
For the three months ended |
|
|||||
|
|
Notes |
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Cash flows from (used in) operating activities |
|
|
|
|
|
|
|
|
||
Profit before tax |
|
|
|
|
15,859 |
|
|
|
29,805 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
6,115 |
|
|
|
6,648 |
|
Loss on disposal of property and equipment and intangible assets |
|
|
|
|
182 |
|
|
|
247 |
|
Share-based payment expenses |
|
|
|
— |
|
|
|
167 |
|
|
Other income and costs |
|
|
|
|
(87 |
) |
|
|
(877 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||
Guarantee deposits |
|
7 |
|
|
16,190 |
|
|
|
16,412 |
|
Call loans |
|
|
|
|
33,000 |
|
|
|
40,000 |
|
Accounts receivable |
|
8 |
|
|
(42,378 |
) |
|
|
(59,813 |
) |
Loans and advances to customers |
|
9 |
|
|
(68,484 |
) |
|
|
(118,416 |
) |
Securities |
|
10 |
|
|
(24,643 |
) |
|
|
(54,838 |
) |
Deposits |
|
12 |
|
|
211,300 |
|
|
|
159,792 |
|
Accounts payable |
|
13 |
|
|
(50,337 |
) |
|
|
(43,716 |
) |
Other financial assets |
|
|
|
|
(1,815 |
) |
|
|
(7,854 |
) |
Other financial liabilities |
|
|
|
|
2,799 |
|
|
|
2,362 |
|
Provisions |
|
|
|
|
(55 |
) |
|
|
52 |
|
Other |
|
|
|
|
(3,098 |
) |
|
|
(10,587 |
) |
Cash provided by (used in) operations |
|
|
|
|
94,548 |
|
|
|
(40,616 |
) |
Income tax paid |
|
|
|
|
(7,602 |
) |
|
|
(13,636 |
) |
Income tax refunded |
|
|
|
|
45 |
|
|
|
— |
|
Net cash provided by (used in) operating activities |
|
|
|
|
86,991 |
|
|
|
(54,252 |
) |
|
|
|
|
|
|
|
|
|
||
Cash flows from (used in) investing activities |
|
|
|
|
|
|
|
|
||
Purchases of securities |
|
10 |
|
|
(175,246 |
) |
|
|
(74,531 |
) |
Proceeds from sales/redemption of securities |
|
10 |
|
|
45,415 |
|
|
|
74,386 |
|
Purchases of property and equipment |
|
|
|
|
(2,067 |
) |
|
|
(1,709 |
) |
Purchases of intangible assets |
|
11 |
|
|
(4,668 |
) |
|
|
(4,172 |
) |
Other |
|
|
|
|
(1,506 |
) |
|
|
(3,131 |
) |
Net cash used in investing activities |
|
|
|
|
(138,072 |
) |
|
|
(9,157 |
) |
|
|
|
|
|
|
|
|
|
||
Cash flows from (used in) financing activities |
|
|
|
|
|
|
|
|
||
Net increase in short-term borrowings |
|
14 |
|
|
150,000 |
|
|
|
177,037 |
|
Proceeds from long-term borrowings |
|
14 |
|
|
314,565 |
|
|
|
123,500 |
|
Repayments of long-term borrowings |
|
14 |
|
|
(250,340 |
) |
|
|
(108,400 |
) |
Repayments of lease liabilities |
|
14 |
|
|
(764 |
) |
|
|
(587 |
) |
Proceeds from (payments for) issuance of new common shares |
|
|
|
|
121,624 |
|
|
|
(146 |
) |
Payments for the purchase of the equity interest of subsidiaries, |
|
|
|
|
(130,185 |
) |
|
|
— |
|
Dividends paid to non-controlling interests |
|
|
|
|
(2,909 |
) |
|
|
— |
|
Dividends paid to the ultimate parent company |
|
|
|
|
(311 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
|
|
201,680 |
|
|
|
191,404 |
|
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
|
(46 |
) |
|
|
9 |
|
Increase in cash and cash equivalents |
|
|
|
|
150,553 |
|
|
|
128,004 |
|
Cash and cash equivalents at the beginning of the period |
|
6 |
|
|
369,811 |
|
|
|
363,083 |
|
Cash and cash equivalents at the end of the period |
|
6 |
|
|
520,364 |
|
|
|
491,087 |
|
See Notes to Condensed Consolidated Financial Statements
―5―
Notes to Condensed Consolidated Financial Statements (Unaudited)
PayPay Corporation (the “Company”, “we”, “us”, or “our”) was incorporated in June 2018 in Japan as a corporation (kabushiki kaisha) in accordance with the Companies Act of Japan (the “Companies Act”). The Company’s registered office is located at 1-3, Kioicho, Chiyoda-ku, Tokyo, Japan. The Company’s condensed consolidated financial statements are comprised of the Company and its subsidiaries (collectively, the “Group”). The Group is composed of two reportable segments: Payment segment and Financial service segment. Payment segment includes payment settlement services and related services through our PayPay app, and credit payment settlement services such as revolving and installment payment options and cash advances. Financial service segment includes internet banking services, securities intermediary services and PayPay Point investment-related services, and loan management services.
The Company is 47.1% owned directly by B Holdings Corporation, 28.5% by SVF II Piranha (DE) LLC, 7.5% by LY Corporation, and 7.5% by SoftBank Corp. The ultimate parent company of the Company is SoftBank Group Corp. (“SBG”).
The intermediate parent of the Company is B Holdings Corporation, which is owned by SBG through the following entities: LY Corporation, A Holdings Corporation, and SoftBank Corp.
The Group’s condensed consolidated financial statements have been prepared on a going concern basis in accordance with IAS 34 issued by the International Accounting Standards Board (“IASB”).
The Group’s condensed consolidated financial statements do not contain all the information required in the annual consolidated financial statements and should be read in conjunction with the consolidated financial statements as of and for the fiscal years ended March 31, 2025 and 2026, which have been prepared in accordance with IFRS Accounting Standards as issued by the IASB.
The Group’s condensed consolidated financial statements have been prepared on a historical cost basis except for items such as financial instruments measured at fair value, and business combinations under common control accounted for using the book value in the ultimate parent company's consolidated financial statements.
Unless otherwise indicated, the Group’s condensed consolidated financial statements are presented in Japanese yen, which is both the functional currency of the Company and presentation currency of the Group, and amounts are rounded to the nearest million Japanese yen.
The material accounting policies applied in the Group’s condensed consolidated financial statements are consistent with those of the consolidated financial statements as of and for the years ended March 31, 2025 and 2026, except for the following.
Income tax
Income tax expense for interim periods is determined by applying the estimated annual effective tax rate to profit before tax, in accordance with IAS 34. The estimated annual effective tax rate reflects management’s current expectations for the full fiscal year, based on assessments performed at each group company, and is subject to change as new information becomes available. Any revisions to these estimates are recognized in the interim period in which the changes occur.
―6―
The preparation of the Group’s condensed consolidated financial statements requires the management to make judgments, estimates, and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. These estimates and assumptions are based on the best judgment of the management considering historical experience and various factors deemed to be reasonable as of the end of reporting period. Given their nature, uncertainty about these estimates and assumptions could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The estimates and assumptions are continuously reviewed by the management, as these estimates may change as new events occur. The effects of a change in estimates and assumptions are recognized in the period of the change and in any future periods affected.
The condensed consolidated financial statements are prepared based on the same material judgments, estimates, and assumptions as those applied and described in the consolidated financial statements as of and for the years ended March 31, 2025 and 2026.
The Group’s operating segments are components of the Group that engage in business activities from which they may earn revenues and incur expenses, and those components' discrete financial information is available. Such operating segments engage in business activities that earn revenues and incur expenses and the operating segments are subject to regular review by the Chief Executive Officer (“CEO”), who is the Group’s Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and in assessing performance. Accordingly, the Group has two operating segments, Payment segment and Financial service segment, which are also reportable segments that are determined based on the Group's corporate structure and the nature of services as described below.
The Payment segment mainly consists of PayPay Corporation and PayPay Card Corporation. This segment includes payment settlement services and related services offered through our PayPay app and credit payment settlement services such as revolving and installment payment options and cash advances.
The Financial service segment mainly consists of PayPay Bank Corporation, PayPay Securities Corporation, and Credit Engine, Inc. This segment includes financial service such as internet banking services, securities intermediary services and PayPay Point investment-related services, and loan management services.
The Group's CODM primarily uses revenue and operating profit or loss to allocate resources and assess performance. The Group's segment profit for each reportable segment is prepared on the same basis as the Group's condensed consolidated financial statements. The total of individual segment profit is equivalent to operating profit presented on the Group's Condensed Consolidated Statements of Profit or Loss.
Segment financial information presented below does not include assets or liabilities, as the Group's CODM does not allocate resources or assess performance based on such information.
Inter-segment transaction prices are determined in the same manner as arm's length transactions with external customers.
―7―
For the three months ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Transaction and service income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers |
|
|
49,643 |
|
|
|
7,173 |
|
|
|
— |
|
|
|
56,816 |
|
Inter-segment revenue |
|
|
247 |
|
|
|
188 |
|
|
|
(435 |
) |
|
|
— |
|
Total transaction and service income |
|
|
49,890 |
|
|
|
7,361 |
|
|
|
(435 |
) |
|
|
56,816 |
|
Interest income |
|
|
19,261 |
|
|
|
6,174 |
|
|
|
— |
|
|
|
25,435 |
|
Gains (losses) on financial instruments |
|
|
1,563 |
|
|
|
1,998 |
|
|
|
— |
|
|
|
3,561 |
|
Other operating income |
|
|
305 |
|
|
|
37 |
|
|
|
— |
|
|
|
342 |
|
Total revenue |
|
|
71,019 |
|
|
|
15,570 |
|
|
|
(435 |
) |
|
|
86,154 |
|
Operating expenses (1) |
|
|
(56,523 |
) |
|
|
(14,102 |
) |
|
|
435 |
|
|
|
(70,190 |
) |
Segment profit |
|
|
14,496 |
|
|
|
1,468 |
|
|
|
— |
|
|
|
15,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Reconciliation to profit before tax) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share of loss of investments accounted for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
(105 |
) |
|||
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
15,859 |
|
|||
For the three months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Transaction and service income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue from external customers |
|
|
62,180 |
|
|
|
7,781 |
|
|
|
— |
|
|
|
69,961 |
|
Inter-segment revenue |
|
|
410 |
|
|
|
263 |
|
|
|
(673 |
) |
|
|
— |
|
Total transaction and service income |
|
|
62,590 |
|
|
|
8,044 |
|
|
|
(673 |
) |
|
|
69,961 |
|
Interest income |
|
|
24,708 |
|
|
|
11,004 |
|
|
|
(568 |
) |
|
|
35,144 |
|
Gains (losses) on financial instruments |
|
|
511 |
|
|
|
3,293 |
|
|
|
— |
|
|
|
3,804 |
|
Other operating income |
|
|
774 |
|
|
|
122 |
|
|
|
(17 |
) |
|
|
879 |
|
Total revenue |
|
|
88,583 |
|
|
|
22,463 |
|
|
|
(1,258 |
) |
|
|
109,788 |
|
Operating expenses (1) |
|
|
(66,061 |
) |
|
|
(15,078 |
) |
|
|
1,216 |
|
|
|
(79,923 |
) |
Segment profit |
|
|
22,522 |
|
|
|
7,385 |
|
|
|
(42 |
) |
|
|
29,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Reconciliation to profit before tax) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share of loss of investments accounted for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
(60 |
) |
|||
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
29,805 |
|
|||
―8―
6. Cash and Cash Equivalents
Cash and cash equivalents are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Cash and demand deposits |
|
|
53,439 |
|
|
|
74,896 |
|
Restricted cash related to transfers of credit card receivables |
|
|
697 |
|
|
|
697 |
|
Subtotal |
|
|
54,136 |
|
|
|
75,593 |
|
Financial service: |
|
|
|
|
|
|
||
Cash and demand deposits |
|
|
16,322 |
|
|
|
19,937 |
|
Deposits with the Bank of Japan (1) |
|
|
292,622 |
|
|
|
395,557 |
|
Other |
|
|
3 |
|
|
|
— |
|
Subtotal |
|
|
308,947 |
|
|
|
415,494 |
|
Total |
|
|
363,083 |
|
|
|
491,087 |
|
7. Guarantee Deposits
Guarantee deposits are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Guarantee deposits under Payment Services Act (1)(2)(3)(4) |
|
|
49,734 |
|
|
|
35,855 |
|
Subtotal |
|
|
49,734 |
|
|
|
35,855 |
|
Financial service: |
|
|
|
|
|
|
||
Other (4)(5) |
|
|
24,405 |
|
|
|
21,872 |
|
Subtotal |
|
|
24,405 |
|
|
|
21,872 |
|
Total |
|
|
74,139 |
|
|
|
57,727 |
|
―9―
8. Accounts Receivable
Accounts receivable are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Receivables from financial institutions (1) |
|
|
34,872 |
|
|
|
81,207 |
|
Settlement receivables (2)(3) |
|
|
91,343 |
|
|
|
96,250 |
|
Other receivables (3) |
|
|
24,943 |
|
|
|
33,660 |
|
Loss allowance |
|
|
(786 |
) |
|
|
(778 |
) |
Total |
|
|
150,372 |
|
|
|
210,339 |
|
9. Loans and Advances to Customers
Loans and advances to customers are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Credit card receivables |
|
|
1,321,827 |
|
|
|
1,349,072 |
|
Loss allowance |
|
|
(45,312 |
) |
|
|
(50,096 |
) |
Subtotal |
|
|
1,276,515 |
|
|
|
1,298,976 |
|
Financial service: |
|
|
|
|
|
|
||
Mortgage loans (1) |
|
|
909,483 |
|
|
|
978,262 |
|
Overdraft |
|
|
312,255 |
|
|
|
327,755 |
|
Other |
|
|
16,879 |
|
|
|
28,798 |
|
Loss allowance |
|
|
(2,281 |
) |
|
|
(2,524 |
) |
Subtotal |
|
|
1,236,336 |
|
|
|
1,332,291 |
|
Total |
|
|
2,512,851 |
|
|
|
2,631,267 |
|
10. Securities
Securities are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
Japanese government bonds (1) |
|
|
65,612 |
|
|
|
58,246 |
|
Subtotal |
|
|
65,612 |
|
|
|
58,246 |
|
Financial service: |
|
|
|
|
|
|
||
Japanese government bonds and municipal bonds (2) |
|
|
713,244 |
|
|
|
732,464 |
|
Corporate and other debt securities (2) |
|
|
416,121 |
|
|
|
409,734 |
|
Asset backed securities |
|
|
337,685 |
|
|
|
330,339 |
|
Exchange traded funds (3) |
|
|
202,879 |
|
|
|
259,754 |
|
Equity securities |
|
|
1,294 |
|
|
|
1,330 |
|
Subtotal |
|
|
1,671,223 |
|
|
|
1,733,621 |
|
Total |
|
|
1,736,835 |
|
|
|
1,791,867 |
|
―10―
11. Intangible Assets
Changes of intangible assets are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
For the three months ended |
|
|||||
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Balance as of April 1 |
|
|
65,672 |
|
|
|
66,466 |
|
Additions |
|
|
4,353 |
|
|
|
4,270 |
|
Amortization |
|
|
(3,708 |
) |
|
|
(4,206 |
) |
Other |
|
|
(199 |
) |
|
|
(89 |
) |
Balance as of June 30 |
|
|
66,118 |
|
|
|
66,441 |
|
12. Deposits
Deposits are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Payment: |
|
|
|
|
|
|
||
PayPay Users' deposits (1)(2) |
|
|
451,263 |
|
|
|
483,824 |
|
Subtotal |
|
|
451,263 |
|
|
|
483,824 |
|
Financial service: |
|
|
|
|
|
|
||
Deposits from customers in the banking business |
|
|
|
|
|
|
||
Demand deposits |
|
|
2,090,486 |
|
|
|
2,219,176 |
|
Time deposits |
|
|
178,594 |
|
|
|
123,121 |
|
Deposits from customers in the securities intermediary business |
|
|
221,374 |
|
|
|
274,907 |
|
Other |
|
|
10,778 |
|
|
|
11,259 |
|
Subtotal |
|
|
2,501,232 |
|
|
|
2,628,463 |
|
Total |
|
|
2,952,495 |
|
|
|
3,112,287 |
|
13. Accounts Payable
Accounts payable are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Settlement payable (1) |
|
|
1,069,525 |
|
|
|
1,031,043 |
|
Credit card payable (1) |
|
|
30,867 |
|
|
|
26,257 |
|
Other payables(1) |
|
|
21,946 |
|
|
|
23,410 |
|
Total |
|
|
1,122,338 |
|
|
|
1,080,710 |
|
―11―
14. Borrowings and Lease Liabilities
Components of Borrowings and lease liabilities are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
March 31, 2026 |
|
|
June 30, 2026 |
|
||
Borrowings |
|
|
|
|
|
|
||
Payment: |
|
|
|
|
|
|
||
Loan payables |
|
|
280,825 |
|
|
|
302,925 |
|
Commercial papers |
|
|
73,000 |
|
|
|
87,000 |
|
Subtotal |
|
|
353,825 |
|
|
|
389,925 |
|
Financial service: |
|
|
|
|
|
|
||
Loan payables (1) |
|
|
211,131 |
|
|
|
367,168 |
|
Subtotal |
|
|
211,131 |
|
|
|
367,168 |
|
Total |
|
|
564,956 |
|
|
|
757,093 |
|
|
|
|
|
|
|
|
||
Lease liabilities |
|
|
|
|
|
|
||
Payment |
|
|
9,096 |
|
|
|
8,493 |
|
Financial service |
|
|
453 |
|
|
|
417 |
|
Total |
|
|
9,549 |
|
|
|
8,910 |
|
15. Issued Capital and Reserves
The movement of authorized shares and shares issued is as follows:
|
(In thousands of shares) |
|
||||||
|
|
Number of |
|
|
Number of |
|
||
Common shares (1) |
|
|
|
|
|
|
||
April 1, 2026 |
|
|
1,600,000 |
|
|
|
676,956 |
|
Increase during the period (2) |
|
|
— |
|
|
|
387 |
|
Decrease during the period |
|
|
— |
|
|
|
— |
|
June 30, 2026 (3) |
|
|
1,600,000 |
|
|
|
677,343 |
|
Legal capital reserve
Under the Companies Act, at least 50% of the proceeds of certain issuances of share capital shall be credited to issued capital. The remaining proceeds shall be credited to share premium. The Companies Act permits, upon approval at the general shareholders’ meeting, the transfer of amounts from share premium to issued capital.
Legal earnings reserve
The Companies Act requires that an amount equal to at least 10% of dividends from surplus, as defined under the Companies Act, shall be appropriated as capital reserve (part of share premium), or appropriated for legal earnings reserve (part of retained earnings) until the aggregate amount of capital reserve and legal earnings reserve is equal to 25% of share capital. The legal earnings reserve may be used to eliminate or reduce a deficit or be transferred to other retained earnings upon approval at the general shareholders’ meetings.
―12―
Changes in accumulated other comprehensive income (loss) are as follows:
|
(In millions of yen) |
|
||||||
|
|
Changes in |
|
|
Exchange |
|
||
Balance as of April 1, 2026 |
|
|
(3,039 |
) |
|
|
(16 |
) |
Other comprehensive income (loss) |
|
|
(95 |
) |
|
|
6 |
|
Other |
|
|
— |
|
|
|
1 |
|
Balance as of June 30, 2026 |
|
|
(3,134 |
) |
|
|
(9 |
) |
16. Revenue
|
|
(In millions of yen) |
|
|||||
|
|
For the three months ended |
|
|||||
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Revenue from contracts with customers |
|
|
|
|
|
|
||
Transaction and service income |
|
|
56,816 |
|
|
|
69,961 |
|
Revenue from other sources |
|
|
|
|
|
|
||
Interest income (1) |
|
|
25,435 |
|
|
|
35,144 |
|
Gains (losses) on financial instruments |
|
|
3,561 |
|
|
|
3,804 |
|
Other operating income |
|
|
342 |
|
|
|
879 |
|
Total |
|
|
86,154 |
|
|
|
109,788 |
|
―13―
For the three months ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
|||
|
|
(In millions of yen) |
|
|||||||||
|
|
Payment |
|
|
Financial service |
|
|
Total |
|
|||
Payment Settlement Services |
|
|
|
|
|
|
|
|
|
|||
PayPay Settlement Services |
|
|
44,196 |
|
|
|
— |
|
|
|
44,196 |
|
Credit Payment Settlement Services and Acquiring Services (1) |
|
|
10,072 |
|
|
|
— |
|
|
|
10,072 |
|
Debit Payment Settlement Services |
|
|
— |
|
|
|
1,277 |
|
|
|
1,277 |
|
Payment settlement services deduction (2) |
|
|
(11,160 |
) |
|
|
(332 |
) |
|
|
(11,492 |
) |
Subtotal |
|
|
43,108 |
|
|
|
945 |
|
|
|
44,053 |
|
Financial services |
|
|
— |
|
|
|
5,984 |
|
|
|
5,984 |
|
Other (3) (4) |
|
|
6,535 |
|
|
|
244 |
|
|
|
6,779 |
|
Total (5) |
|
|
49,643 |
|
|
|
7,173 |
|
|
|
56,816 |
|
For the three months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|||
|
|
(In millions of yen) |
|
|||||||||
|
|
Payment |
|
|
Financial service |
|
|
Total |
|
|||
Payment Settlement Services |
|
|
|
|
|
|
|
|
|
|||
PayPay Settlement Services |
|
|
67,834 |
|
|
|
— |
|
|
|
67,834 |
|
Credit Payment Settlement Services and Acquiring Services (1) |
|
|
13,063 |
|
|
|
— |
|
|
|
13,063 |
|
Debit Payment Settlement Services |
|
|
— |
|
|
|
1,565 |
|
|
|
1,565 |
|
Payment settlement services deduction (2) |
|
|
(26,841 |
) |
|
|
(382 |
) |
|
|
(27,223 |
) |
Subtotal |
|
|
54,056 |
|
|
|
1,183 |
|
|
|
55,239 |
|
Financial services |
|
|
— |
|
|
|
6,229 |
|
|
|
6,229 |
|
Other (3) (4) |
|
|
8,124 |
|
|
|
369 |
|
|
|
8,493 |
|
Total (5) |
|
|
62,180 |
|
|
|
7,781 |
|
|
|
69,961 |
|
―14―
17. Operating Expenses
Operating expenses by nature are as follows:
For the three months ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Point expenses (1) |
|
|
13,153 |
|
|
|
— |
|
|
|
— |
|
|
|
13,153 |
|
Settlement related cost (2)(4) |
|
|
8,837 |
|
|
|
2,895 |
|
|
|
(160 |
) |
|
|
11,572 |
|
Employee benefit expenses |
|
|
8,473 |
|
|
|
2,310 |
|
|
|
— |
|
|
|
10,783 |
|
Provision for loss allowance |
|
|
5,087 |
|
|
|
153 |
|
|
|
— |
|
|
|
5,240 |
|
Professional and outsourcing services expenses (3) |
|
|
5,279 |
|
|
|
2,525 |
|
|
|
(67 |
) |
|
|
7,737 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
4,041 |
|
|
|
1,688 |
|
|
|
— |
|
|
|
5,729 |
|
License fees |
|
|
4,283 |
|
|
|
— |
|
|
|
— |
|
|
|
4,283 |
|
Interest expenses |
|
|
764 |
|
|
|
1,464 |
|
|
|
(25 |
) |
|
|
2,203 |
|
Advertising and promotion expenses |
|
|
1,411 |
|
|
|
1,065 |
|
|
|
(88 |
) |
|
|
2,388 |
|
Tax and charges |
|
|
624 |
|
|
|
613 |
|
|
|
— |
|
|
|
1,237 |
|
Amortization of contract cost |
|
|
386 |
|
|
|
— |
|
|
|
— |
|
|
|
386 |
|
Other (4) |
|
|
4,185 |
|
|
|
1,389 |
|
|
|
(95 |
) |
|
|
5,479 |
|
Subtotal |
|
|
15,694 |
|
|
|
6,219 |
|
|
|
(208 |
) |
|
|
21,705 |
|
Total |
|
|
56,523 |
|
|
|
14,102 |
|
|
|
(435 |
) |
|
|
70,190 |
|
For the three months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(In millions of yen) |
|
|||||||||||||
|
|
Payment |
|
|
Financial |
|
|
Inter-segment |
|
|
Consolidated |
|
||||
Point expenses (1) |
|
|
16,041 |
|
|
|
— |
|
|
|
— |
|
|
|
16,041 |
|
Settlement related cost (2) |
|
|
10,303 |
|
|
|
3,106 |
|
|
|
(219 |
) |
|
|
13,190 |
|
Employee benefit expenses |
|
|
9,101 |
|
|
|
2,670 |
|
|
|
(5 |
) |
|
|
11,766 |
|
Provision for loss allowance |
|
|
8,046 |
|
|
|
268 |
|
|
|
— |
|
|
|
8,314 |
|
Professional and outsourcing services expenses (3) |
|
|
4,782 |
|
|
|
1,783 |
|
|
|
(47 |
) |
|
|
6,518 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
4,537 |
|
|
|
1,588 |
|
|
|
— |
|
|
|
6,125 |
|
License fees |
|
|
5,142 |
|
|
|
253 |
|
|
|
— |
|
|
|
5,395 |
|
Interest expenses |
|
|
1,159 |
|
|
|
2,588 |
|
|
|
(207 |
) |
|
|
3,540 |
|
Advertising and promotion expenses |
|
|
1,864 |
|
|
|
482 |
|
|
|
(105 |
) |
|
|
2,241 |
|
Tax and charges |
|
|
682 |
|
|
|
491 |
|
|
|
— |
|
|
|
1,173 |
|
Amortization of contract cost |
|
|
522 |
|
|
|
— |
|
|
|
— |
|
|
|
522 |
|
Other |
|
|
3,882 |
|
|
|
1,849 |
|
|
|
(633 |
) |
|
|
5,098 |
|
Subtotal |
|
|
17,788 |
|
|
|
7,251 |
|
|
|
(945 |
) |
|
|
24,094 |
|
Total |
|
|
66,061 |
|
|
|
15,078 |
|
|
|
(1,216 |
) |
|
|
79,923 |
|
―15―
18. Earnings Per Share
The profit for the period attributable to owners of the parent company and the weighted average number of shares used in the calculation of basic earnings per share (“EPS”) are as follows:
|
|
For the three months ended |
|
|||||
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Profit for the period attributable to owners |
|
|
10,511 |
|
|
|
18,428 |
|
Weighted average number of issued |
|
|
631,007 |
|
|
|
677,151 |
|
Basic earnings per share (Yen) (1) |
|
|
16.66 |
|
|
|
27.21 |
|
The calculation of the diluted earnings per share is based on the following data:
|
|
For the three months ended |
|
|||||
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Profit for the period attributable to owners |
|
|
10,511 |
|
|
|
18,428 |
|
Weighted average number of issued |
|
|
631,007 |
|
|
|
677,151 |
|
Effects of dilutive potential common shares (Thousand shares) (2) |
|
|
— |
|
|
|
4,917 |
|
Weighted average number of common |
|
|
631,007 |
|
|
|
682,068 |
|
Diluted earnings per share (Yen) (1) |
|
|
16.66 |
|
|
|
27.02 |
|
19. Share-Based Payments
On June 11, 2026, the knockout condition applicable to the trust-type stock option plan was triggered. Out of the stock options representing 3,807 thousand shares outstanding under the 2nd through 46th Series Stock Option plans as of March 31, 2026, options over 387 thousand shares were exercised prior to the trigger event, resulting in the automatic extinguishment of the remaining options over 3,420 thousand shares with a weighted-average exercise price of 1,300 yen. Because this condition represents a non-vesting condition, the probability of the condition being triggered was taken into account when estimating the fair value of the options at the grant date, and the Group continues to recognize the services received regardless of whether the condition is triggered. Consequently, these movements had no material impact on the condensed consolidated financial statements as of and for the three months ended June 30, 2026. There have been no other significant events, new grants, or material modifications regarding the Group's other share-based payment arrangements since March 31, 2026.
20. Financial Instruments
Fair Value of Financial Instruments
―16―
Transfers between levels of fair value hierarchy are recognized as if they occurred at each reporting date. There were no material transfers between the levels as of March 31, 2026 and June 30, 2026.
As of March 31, 2026 |
|
(In millions of yen) |
|
|||||||||||||
|
|
Fair value |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets measured at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt instruments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange traded funds |
|
|
202,879 |
|
|
|
— |
|
|
|
— |
|
|
|
202,879 |
|
Equity instruments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities |
|
|
306 |
|
|
|
24 |
|
|
|
964 |
|
|
|
1,294 |
|
Financial assets measured at FVTOCI |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt instruments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japanese government bonds and municipal bonds |
|
|
55,949 |
|
|
|
2,725 |
|
|
|
— |
|
|
|
58,674 |
|
Corporate and other debt securities |
|
|
3,118 |
|
|
|
77,736 |
|
|
|
6,732 |
|
|
|
87,586 |
|
Asset backed securities |
|
|
— |
|
|
|
— |
|
|
|
335,214 |
|
|
|
335,214 |
|
Other financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets measured at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative assets |
|
|
203 |
|
|
|
2,107 |
|
|
|
— |
|
|
|
2,310 |
|
Total |
|
|
262,455 |
|
|
|
82,592 |
|
|
|
342,910 |
|
|
|
687,957 |
|
Other financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial liabilities measured at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative liabilities |
|
|
100 |
|
|
|
1,268 |
|
|
|
— |
|
|
|
1,368 |
|
Total |
|
|
100 |
|
|
|
1,268 |
|
|
|
— |
|
|
|
1,368 |
|
As of June 30, 2026 |
|
(In millions of yen) |
|
|||||||||||||
|
|
Fair value |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets measured at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt instruments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange traded funds |
|
|
259,754 |
|
|
|
— |
|
|
|
— |
|
|
|
259,754 |
|
Equity instruments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities |
|
|
315 |
|
|
|
24 |
|
|
|
991 |
|
|
|
1,330 |
|
Financial assets measured at FVTOCI |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt instruments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japanese government bonds and municipal bonds |
|
|
54,152 |
|
|
|
2,728 |
|
|
|
— |
|
|
|
56,880 |
|
Corporate and other debt securities |
|
|
786 |
|
|
|
74,137 |
|
|
|
6,728 |
|
|
|
81,651 |
|
Asset backed securities |
|
|
— |
|
|
|
— |
|
|
|
328,004 |
|
|
|
328,004 |
|
Other financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial assets measured at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative assets |
|
|
291 |
|
|
|
2,604 |
|
|
|
— |
|
|
|
2,895 |
|
Total |
|
|
315,298 |
|
|
|
79,493 |
|
|
|
335,723 |
|
|
|
730,514 |
|
Other financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial liabilities measured at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative liabilities |
|
|
136 |
|
|
|
1,154 |
|
|
|
— |
|
|
|
1,290 |
|
Total |
|
|
136 |
|
|
|
1,154 |
|
|
|
— |
|
|
|
1,290 |
|
―17―
As of March 31, 2026 |
|
(In millions of yen) |
|
|||||||||||||||||
|
|
|
|
|
Fair value |
|
||||||||||||||
|
|
Book value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|||||
Financial assets measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan and advances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans |
|
|
909,483 |
|
|
|
— |
|
|
|
— |
|
|
|
908,513 |
|
|
|
908,513 |
|
Overdraft |
|
|
312,255 |
|
|
|
— |
|
|
|
— |
|
|
|
337,479 |
|
|
|
337,479 |
|
Other |
|
|
16,879 |
|
|
|
— |
|
|
|
— |
|
|
|
16,841 |
|
|
|
16,841 |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Debt instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Japanese government bonds and municipal bonds |
|
|
720,182 |
|
|
|
264,985 |
|
|
|
439,089 |
|
|
|
— |
|
|
|
704,074 |
|
Corporate and other debt securities |
|
|
328,535 |
|
|
|
— |
|
|
|
319,545 |
|
|
|
— |
|
|
|
319,545 |
|
Asset backed securities |
|
|
2,471 |
|
|
|
— |
|
|
|
— |
|
|
|
2,480 |
|
|
|
2,480 |
|
Total |
|
|
2,289,805 |
|
|
|
264,985 |
|
|
|
758,634 |
|
|
|
1,265,313 |
|
|
|
2,288,932 |
|
Financial liabilities measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits |
|
|
2,090,486 |
|
|
|
— |
|
|
|
2,090,486 |
|
|
|
— |
|
|
|
2,090,486 |
|
Time deposits |
|
|
178,594 |
|
|
|
— |
|
|
|
178,319 |
|
|
|
— |
|
|
|
178,319 |
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan payables |
|
|
491,956 |
|
|
|
— |
|
|
|
208,150 |
|
|
|
278,056 |
|
|
|
486,206 |
|
Total |
|
|
2,761,036 |
|
|
|
— |
|
|
|
2,476,955 |
|
|
|
278,056 |
|
|
|
2,755,011 |
|
As of June 30, 2026 |
|
(In millions of yen) |
|
|||||||||||||||||
|
|
|
|
|
Fair value |
|
||||||||||||||
|
|
Book value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|||||
Financial assets measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan and advances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans |
|
|
978,262 |
|
|
|
— |
|
|
|
— |
|
|
|
976,953 |
|
|
|
976,953 |
|
Overdraft |
|
|
327,755 |
|
|
|
— |
|
|
|
— |
|
|
|
365,202 |
|
|
|
365,202 |
|
Other |
|
|
28,798 |
|
|
|
— |
|
|
|
— |
|
|
|
28,739 |
|
|
|
28,739 |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Debt instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Japanese government bonds and municipal bonds |
|
|
733,830 |
|
|
|
272,737 |
|
|
|
445,810 |
|
|
|
— |
|
|
|
718,547 |
|
Corporate and other debt securities |
|
|
328,083 |
|
|
|
— |
|
|
|
319,458 |
|
|
|
— |
|
|
|
319,458 |
|
Asset backed securities |
|
|
2,335 |
|
|
|
— |
|
|
|
— |
|
|
|
2,343 |
|
|
|
2,343 |
|
Total |
|
|
2,399,063 |
|
|
|
272,737 |
|
|
|
765,268 |
|
|
|
1,373,237 |
|
|
|
2,411,242 |
|
Financial liabilities measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits |
|
|
2,219,176 |
|
|
|
— |
|
|
|
2,219,176 |
|
|
|
— |
|
|
|
2,219,176 |
|
Time deposits |
|
|
123,121 |
|
|
|
— |
|
|
|
122,900 |
|
|
|
— |
|
|
|
122,900 |
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan payables |
|
|
670,093 |
|
|
|
— |
|
|
|
364,473 |
|
|
|
301,499 |
|
|
|
665,972 |
|
Total |
|
|
3,012,390 |
|
|
|
— |
|
|
|
2,706,549 |
|
|
|
301,499 |
|
|
|
3,008,048 |
|
Fair values of the debt instruments that consist of Exchange traded funds are evaluated at quoted prices for the identical assets in active markets and those are classified as Level 1.
Fair values of the debt instruments that consist either of Japanese government bonds and municipal bonds or of Corporate and other debt securities are classified as Level 1 when they are evaluated at quoted prices for the identical assets in active markets. They are classified as Level 2 when they are evaluated at quoted prices for the identical assets
―18―
in markets that are not active with an adjustment or further corroboration that these prices are representative of fair value.
The debt instruments within Corporate and other debt securities that are classified as Level 3 consist of repackaged notes. The debt instruments within Asset backed securities include residential mortgage backed, credit card asset backed, installment receivables backed, and other asset backed securities. The fair values of repackaged notes and asset backed securities are evaluated with broker or dealer quotations of identical or similar securities where the significant inputs are expected cash flows and discount margin/spreads. Because such significant inputs are unobservable, they are classified as Level 3. The Group evaluates the methods and the significant inputs the brokers or dealers use in measuring the fair values through inquiries against brokers or dealers. The Group independently validates the fair values and compares them to the quotations provided by the brokers or dealers with certain reasonable thresholds. This control activity is designed and operated by the Risk Management Department on a quarterly basis.
These securities include listed shares and private investment trust. Fair values of listed shares are evaluated at quoted prices for the identical assets in active markets and those are classified as Level 1. Fair values of private investment trust that are measured using market-observable inputs such as interest rates reflecting external credit ratings are classified as Level 2, and those that use significant unobservable inputs such as unobservable real estate risk premium are classified as Level 3. The fair values of the private investment trust that are classified as Level 3 were determined using broker or dealer quotes. The broker or dealer quotes used are non-binding and reflect indicative pricing based on proprietary models and assumptions. The Group does not have access to the specific inputs used by the brokers or dealers by considering the fact that the amount invested is still immaterial.
Fair values of the derivative instruments that consist of listed derivatives are evaluated at quoted prices for the identical derivatives in active markets and those are classified as Level 1. Fair values of the derivative instruments that consist of over-the-counter foreign currency derivatives are evaluated using broker or dealer quotations derived by discounted future cash-flow method where the significant inputs are future foreign exchange rates and interest rates. These are classified as Level 2.
Fair values of the loans and advances are measured based on the discounted cash flow model using an interest rate considering the credit spread that is based on the internal rating and loan terms. Because the credit spread is a significant unobservable input, these are classified as Level 3.
Fair values of the on-demand deposits that are paid immediately upon demand on the statement of financial position date are measured at fair value at that amount. Fair values of the time deposits are measured based on the discounted present value obtained by discounting future cash flows applying current rates for deposits of similar remaining maturities. For those with a short remaining maturity (six months or less), fair value is approximately equal to book value, so the book value is recorded as fair value. These are classified as Level 2.
Fair values of the borrowings are measured based on the discounted cash flow model using an interest rate considering the Group's own credit spread that would be used for borrowing with the same terms and maturity. The borrowings mainly consist of those classified as Level 3 since the Group’s own credit spread is used for fair value measurement which is unobservable. Other financial instruments not listed above, such as call loans, are settled mainly within one year and book value approximates their fair value.
―19―
The changes in financial instruments categorized as Level 3 are as follows:
For the three months ended June 30, 2025 |
|
|
(in millions of yen) |
|
|||||||||
|
|
|
Financial assets measured at FVTOCI |
|
|
|
|
||||||
|
|
|
Asset backed securities |
|
|
Corporate and |
|
|
Total |
|
|||
Fair value as of April 1,2025 |
|
|
|
279,442 |
|
|
|
8,200 |
|
|
|
287,642 |
|
Purchases |
|
|
|
19,800 |
|
|
|
— |
|
|
|
19,800 |
|
Total gains (losses) for the period: |
|
|
|
|
|
|
|
|
|
|
|||
Included in other comprehensive income (loss) |
|
|
|
978 |
|
|
|
55 |
|
|
|
1,033 |
|
Sales and settlements |
|
|
|
(18,635 |
) |
|
|
— |
|
|
|
(18,635 |
) |
Fair value as of June 30, 2025 |
|
|
|
281,585 |
|
|
|
8,255 |
|
|
|
289,840 |
|
For the three months ended June 30, 2026 |
|
|
(in millions of yen) |
|
|||||||||||
|
Financial assets measured at FVTPL |
|
|
Financial assets measured at FVTOCI |
|
|
|
|
|||||||
|
Equity Securities |
|
|
Asset backed securities |
|
|
Corporate and |
|
|
Total |
|
||||
Fair value as of April 1,2026 |
964 |
|
|
|
335,214 |
|
|
|
6,732 |
|
|
|
342,910 |
|
|
Purchases |
|
— |
|
|
|
15,000 |
|
|
|
— |
|
|
|
15,000 |
|
Total gains (losses) for the period: |
|
|
|
|
|
|
|
|
|
|
|
||||
Included in profit or loss |
|
27 |
|
|
|
— |
|
|
|
— |
|
|
|
27 |
|
Included in other comprehensive income (loss) |
|
— |
|
|
|
409 |
|
|
|
(4 |
) |
|
|
405 |
|
Sales and settlements |
|
— |
|
|
|
(22,624 |
) |
|
|
— |
|
|
|
(22,624 |
) |
Other |
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
5 |
|
Fair value as of June 30, 2026 |
|
991 |
|
|
|
328,004 |
|
|
|
6,728 |
|
|
|
335,723 |
|
The valuation techniques used to measure the fair value of major assets classified as Level 3, significant unobservable inputs, and their range are as follows:
Financial assets |
|
Valuation technique |
|
Significant unobservable inputs |
|
Range of inputs |
Repackage notes |
|
Discounted cash flows |
|
Discount margin/spreads |
|
2.13% (1) |
Asset backed securities |
|
Discounted cash flows |
|
Discount margin/spreads |
|
1.23%~2.14% (1) |
Discount margin/spreads represent the discount rates used when calculating the present value of future cash flows. In discounted cash flow models, such spreads are added to the benchmark rate when discounting the future expected cash flows. Hence, all other factors being equal, increases in discount margin/spreads would result in a decrease in fair value. They generally reflect the premium an investor expects to achieve over the benchmark interest rate to compensate for the higher risk driven by the uncertainty of the cash flows caused by the credit quality of the asset.
―20―
21. Related Party Transactions
For the three months ended June 30, 2025
The following tables provide significant changes in related party transactions from those disclosed in the Group’s consolidated financial statements for the year ended March 31, 2025.
Equity Transactions
There are no significant impacts either on assets or liabilities as of June 30, 2025 or profit or loss for the three months ended June 30, 2025 arising from the transactions listed in the table below.
|
|
|
|
|
|
(In millions of yen) |
|
|
Relationship |
|
Name |
|
Transactions |
|
Amount |
|
|
Parent company |
|
SoftBank Corp. |
|
Acquisition of shares (1) |
|
|
5,727 |
|
|
|
|
|
Issuance of new shares (3) |
|
|
34,889 |
|
Parent company |
|
LY Corporation |
|
Acquisition of shares (1) |
|
|
80 |
|
|
|
|
|
Issuance of new shares (3) |
|
|
34,889 |
|
Other affiliated company |
|
SVF II Piranha (DE) LLC |
|
Exercise of stock options (2) |
|
|
15,901 |
|
|
|
|
|
Issuance of new shares (3) |
|
|
35,944 |
|
Subsidiary of parent company |
|
Z Financial Corporation (5) |
|
Acquisition of shares (4) |
|
|
117,000 |
|
For the three months ended June 30, 2026
There have been no significant changes in related party transactions from those disclosed in the Group’s consolidated financial statements for the year ended March 31, 2026.
22. Commitments
The Group entered into significant commitments for the purchase of goods and services for the three months ended June 30, 2025, amounting to 27,661 million yen, which primarily included commitments for the purchase of licenses for cloud computing platforms, and for the three months ended June 30, 2026, amounting to 1,256 million yen, which primarily included commitments for the purchase of licenses for cloud computing platforms.
23. Supplemental Cash Flow Information
The Group classifies the cash flows from changes in assets and liabilities associated with its banking business, such as loans and advances and deposits from customers, as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2025 and 2026, because the changes are derived from the principal revenue-producing activities.
Cash flows from operating activities include the following amounts of interest received and interest paid (negative figures indicate payments).
|
|
|
|
|
(In millions of yen) |
|
||
|
|
For the three months ended |
|
|||||
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Interests received |
|
|
34,462 |
|
|
|
46,442 |
|
Interests paid |
|
|
(2,273 |
) |
|
|
(3,189 |
) |
―21―
Significant non-cash transactions are as follows:
|
|
(In millions of yen) |
|
|||||
|
|
For the three months ended |
|
|||||
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
||
Increase/(decrease) in right-of-use assets |
|
|
553 |
|
|
|
(54 |
) |
24. Additional Information
On June 4th, 2026, the Company entered into the Share Purchase Agreement to purchase 70.2% of shares of T&D Financial Life Insurance Company. The consideration for the shares is expected to be approximately 132 billion yen. The acquisition is intended to add life insurance services to the Company’s financial services offering and to combine T&D Financial Life Insurance Company’s business platform with the Company’s digital platform and customer base. The consummation of the share acquisition is subject to regulatory approval and permits from the relevant authorities, the implementation of an IFRS transition plan at T&D Financial Life Insurance Company and other customary closing conditions.
As of the date of approval of these condensed consolidated financial statements, the financial impact of the transaction cannot be reasonably estimated because the transaction has not yet been completed and the purchase price allocation and related assessments have not been finalized.
25. Subsequent Events
Capital and Business Alliance to Establish a Mid- to Long-term Strategic Partnership with Seven & i Holdings Co., Ltd.
On July 31, 2026, the Company entered into a business alliance agreement with Seven & i Holdings Co., Ltd. ("Seven & i"), SEVEN-ELEVEN JAPAN CO., LTD., together with SoftBank Corp. ("SoftBank"), and LY Corporation to establish a strategic partnership in the digital domain (the "Business Alliance"). On the same date, the Company and SoftBank entered into a capital alliance agreement with Seven & i (the "Capital Alliance"), under which the Company and SoftBank will subscribe for the shares of Seven & i through a third-party allotment of treasury shares (the "Treasury Share Disposal").
Through the Business Alliance, the Company intends to promote initiatives including the integration of the 7iD into the PayPay ID platform, the introduction of PayPay Points, the development of the Seven-Eleven application by the Company and collaboration on promotional initiatives, and the mutual utilization of data among the Business Alliance Parties. Through these initiatives, the Company seeks to enhance the customer experience at Seven-Eleven stores while expanding usage of its digital financial platform centered on its payment services.
Pursuant to the Treasury Share Disposal, the Company will acquire 48,309,178 shares of Seven & i common stock, representing 2.13 % of Seven & i’s issued shares (excluding treasury shares), for an aggregate purchase price of 100 billion yen. The subscription price for common shares to be acquired through the Treasury Share Disposal will be 2,070 yen per share, with the payment currently scheduled for August 17, 2026. Completion of the Treasury Share Disposal is subject to the satisfaction of customary closing conditions, including the effectiveness of the securities registration statement to be filed by Seven & i.
As a result of the alliances, the Company expects Securities presented in the consolidated statement of financial position to increase by 100 billion yen. As of the date of approval of these condensed consolidated financial statements, the financial impact of the alliances cannot be reasonably estimated because the Company is still evaluating the details of the Business Alliance.
26. Approval of Condensed Consolidated Financial Statements
The condensed consolidated financial statements have been approved by Wataru Kagechika, Managing Corporate Officer and Chief Financial Officer on August 7, 2026.
―22―