Methodology & Classification Criteria

1. Data Source

SWTQ covers earnings releases disclosed on TDnet for which XBRL/iXBRL data is available.

XBRL/iXBRL is a data format attached to disclosure documents, such as earnings releases, that presents financial figures in a machine-readable structure. SWTQ extracts key performance KPIs from this XBRL/iXBRL data and determines changes such as year-over-year comparisons.

Rather than reading the PDF body as an image, SWTQ in principle uses the numerical data contained within the XBRL/iXBRL.

2. Disclosures Covered

SWTQ, in principle, covers the following types of earnings releases:

• Quarterly earnings releases
• Half-year earnings releases
• Interim earnings releases
• Full-year earnings releases
• Annual earnings releases

Coverage is limited to earnings releases for which an XBRL/iXBRL file can be retrieved on TDnet.

Even when accounting standards differ — Japanese GAAP, IFRS, US GAAP, and so on — a filing may be covered if the key KPIs can be obtained from the XBRL/iXBRL.

However, depending on a company's disclosure format, industry-specific line items, or differences in XBRL tagging, some KPIs may not be retrievable.

3. Disclosures Not Covered

The following types of disclosures are, in principle, outside the scope of SWTQ's automated classification:

• Revisions to earnings forecasts
• Revisions to dividend forecasts
• Corrections to earnings releases
• Partial corrections to earnings releases
• Earnings presentation materials
• Supplementary explanatory materials
• Monthly materials
• PR information
• Other disclosures that are not themselves earnings releases

SWTQ is a service that extracts changes in key KPIs from ordinary earnings releases. Because forecast revisions and correction disclosures are different in nature from earnings releases, they are, in principle, excluded.

However, depending on the title used on TDnet, the structure of the XBRL file, or a company's disclosure practices, disclosures outside the intended scope may occasionally be included by mistake. During the beta, we continuously improve exclusion accuracy based on verification results.

Supplementary materials, reference disclosures, voluntary IFRS-transition preparation materials, and reference figures in presentation materials that a company separately publishes on its own website are not included in SWTQ's standard classification, unless they can be obtained as an official TDnet earnings-release XBRL/iXBRL filing. For the same company and period, reference figures under a different accounting standard may be published separately from the official earnings release; in such cases, SWTQ, in principle, prioritizes the official earnings-release XBRL/iXBRL on TDnet.

4. Retrieval Times and Run Schedule

SWTQ automatically retrieves and classifies earnings releases disclosed on TDnet on the same day.

Under the current operation, processing runs mainly at the following times:

• Around 16:01 (JST): internal processing and verification. No report is delivered to beta registrants at this point.
• Around 20:01 (JST): once this run completes, the report is delivered to beta registrants.

The run around 16:01 is an internal check and verification step covering earnings releases that became retrievable on TDnet by around 15:xx. It does not involve delivery to beta registrants.

The report delivered to beta registrants is generated by the run around 20:01. That run also covers earnings releases disclosed after 16:00, as well as XBRL data that could not be retrieved as of the 16:01 run, before delivering the report.

However, depending on TDnet's posting timing, the timing at which XBRL files become available, network conditions, and server processing conditions, data immediately after disclosure may be temporarily unavailable.

As a result, the number of filings covered and the classification results may vary depending on processing timing.

5. Key KPIs Extracted

SWTQ mainly extracts and displays the following four key KPIs:

Because the XBRL line-item names differ from company to company, SWTQ maps multiple naming variants to each key KPI.

However, this mapping does not fully cover every company-specific line-item name, industry-specific item, or wording variant across accounting standards.

6. Treatment of Comprehensive Income

Comprehensive income is not used in SWTQ's key KPIs or in the S/W/T/Q classification.

Comprehensive income can include factors unrelated to changes in core business performance, such as foreign currency translation adjustments, valuation differences, and other comprehensive income items.

Accordingly, even if comprehensive income has changed significantly, SWTQ does not, in principle, include it in HIT determination or the S/W/T/Q classification.

7. Treatment of Company-Specific and Adjusted Metrics

In addition to standard operating profit, earnings releases sometimes display company-specific metrics such as "business profit," "adjusted operating profit," "core operating profit," "EBITDA," or "segment profit." These are disclosed as metrics the company itself considers important for management purposes, and we do not deny that they can be useful for investment decisions.

At the same time, SWTQ places priority on consistency when comparing companies against each other. Because the calculation method and scope of these metrics can differ from company to company, they are not included in SWTQ's standard classification. Comprehensive income is likewise excluded from SWTQ's standard classification (see "6. Treatment of Comprehensive Income").

For this reason, SWTQ's operating-profit field prioritizes the item corresponding to standard JGAAP operating profit or standard IFRS Operating Profit/Loss. If a standard operating-profit-equivalent item cannot be confirmed in the XBRL, SWTQ does not substitute a company-specific or adjusted metric such as business profit into the operating-profit field, and may instead mark it "unavailable" or treat it as out of scope.

Even in such cases, the body of the earnings release may still state the company's own metric, so please also refer to each company's official disclosure materials when reviewing performance details.

8. Treatment of IFRS, Banks, Trading Companies, and Similar Entities

Under Japanese GAAP (JGAAP), companies generally disclose revenue, operating profit, ordinary profit, and net income attributable to owners of the parent. Companies applying IFRS, however, may not have a line item corresponding to JGAAP's ordinary profit. Accordingly, when ordinary profit cannot be obtained — for example, for IFRS-applying companies — SWTQ may display a similar profit item such as profit before tax as a reference figure in the "Ordinary/Pre-tax" field. Profit before tax is not, however, fully identical to JGAAP ordinary profit.

Banks, securities firms, insurers, trading companies, and similar entities also have revenue structures and disclosed line items that differ from those of general operating companies, so please also check the Type field and each company's official disclosure materials.

For insurance companies, operating KPIs such as annualized premium in force, annualized new premium, and number of policies in force are important indicators of the scale of contracts, but because they are not accounting revenue figures themselves, they are not automatically adopted as SWTQ's standard revenue KPI. Where an accounting revenue item such as "insurance revenue" can be clearly obtained for an IFRS insurer, it is adopted as the revenue KPI. On the other hand, insurance-service-result-type KPIs are not automatically substituted as operating profit; if a standard operating-profit-equivalent item cannot be clearly obtained, the operating-profit field is marked unavailable.

9. Treatment of Fiscal-Period and Fiscal-Year-End Changes

Due to a change in fiscal year-end, a change in accounting period, an irregular fiscal period, or similar events, the current period and the same period a year earlier may not align.

Even in such cases, if an XBRL/iXBRL file exists on TDnet and the key KPIs can be obtained, the figures themselves may still be extracted.

However, when the comparison period does not align with the same period a year earlier, the comparability of a standard year-over-year growth rate is reduced.

For example, caution is needed in cases such as the following:

• The prior year covered 12 months, while the current period covers 9 months.
• The prior fiscal year-end was March, and it has now changed to December.
• The number of months in the current period differs from the same period a year earlier.
• An irregular fiscal period causes the comparison period to differ from the norm.
• The equivalent period a year earlier cannot be obtained from the XBRL.

SWTQ, in principle, compares figures based on the period information and values obtainable from the XBRL, but it cannot fully automatically judge comparability affected by a change in fiscal period.

Accordingly, please treat classification results for companies with a fiscal-period or fiscal-year-end change as reference information only.

Where the period_start / period_end for both the current period and the same period a year earlier can be obtained from the XBRL, SWTQ may check the length of each period. If there is a large difference in period length between the current period and the same period a year earlier, comparability as a standard year-over-year figure is low; in that case, the relevant KPI may be marked unavailable or non-comparable and excluded from the S/W/T/Q classification. Where the difference in period length is minor, SWTQ does not apply automatic pro-rating or annualization adjustments, and instead compares the XBRL figures as reported. Even when a company states a reference year-over-year comparison in notes or the body text, SWTQ does not automatically adopt it into its standard classification unless it can be safely obtained as structured data from the XBRL.

10. Treatment of Accounting Policy Changes, Presentation Changes, and Retrospective Restatements

Changes in accounting policy, changes in presentation, changes in revenue-recognition standards, segment changes, retrospective restatements, and similar events can reduce the comparability of current-period and prior-year figures.

Where a company discloses a comparable prior-year figure or rate of change within the XBRL, SWTQ may use that value.

Where both the current-period and prior-year values can be obtained from the XBRL, the system may recalculate the figure.

However, the following are outside the scope of automatic classification:

• The financial impact of an accounting policy change
• The details of a reclassification due to a presentation change
• Differences before and after a retrospective restatement
• Adjustments described in notes
• A company's own custom adjustment calculations
• Detailed reasons a figure is described as non-comparable

Where there is a material accounting policy change, presentation change, or retrospective restatement, please be sure to review the body of each company's earnings release, its notes, and any supplementary explanatory materials.

11. How the Year-over-Year Growth Rate Is Calculated

SWTQ, in principle, prioritizes a comparison with the same period a year earlier.

The basic formula is as follows:

Rate of change = current-period value ÷ same-period-prior-year value − 1

For example, if operating profit for the same period a year earlier was ¥100 million and the current period's operating profit is ¥140 million, then 140 ÷ 100 − 1 = +40.0%.

For quarterly, half-year, and full-year results, SWTQ, in principle, compares against the same type of period a year earlier:

• Q1 results → compared with the prior year's Q1 results
• Q2 results → compared with the prior year's Q2 results
• Half-year / interim results → compared with the prior year's half-year / interim results
• Full-year / annual results → compared with the prior year's full-year / annual results

However, due to the structure of the XBRL data, the same-period-prior-year value may sometimes be unobtainable. In that case, if a company-disclosed rate of change is available, SWTQ uses that value; if both the current-period and prior-year values are available, the system recalculates the rate.

Where the same-period-prior-year value is unavailable, the prior-year value is zero, or the comparison period is otherwise unclear, the figure may be treated as "unavailable" or as a reference value only.

12. Company-Disclosed Rates of Change vs. System-Recalculated Values

Earnings-release XBRL sometimes includes a rate of change disclosed by the company itself. Where available, SWTQ may reference the company-disclosed rate of change.

On the other hand, where a company-disclosed rate of change is unavailable, or where it can be confirmed from the underlying KPI amounts, SWTQ recalculates the rate from the current-period and prior-year values.

Because earnings releases are often displayed in units such as millions of yen, rounding effects mean that a company-disclosed rate of change and SWTQ's system-recalculated value can differ slightly.

Accordingly, SWTQ places priority on timeliness and avoiding missed items, while accounting for differences arising from rounding where necessary.

In addition, SWTQ's displayed year-over-year figures are, in principle, truncated (not rounded) to one decimal place. As a result, the displayed value may differ by around 0.1 percentage points from the value shown in a company's own disclosure materials or other sources.

For companies that disclose results in a foreign currency, the foreign-currency amount and foreign-currency year-over-year figure in the company's own disclosure materials may differ from the year-over-year figure SWTQ calculates from the JPY amount in the XBRL. SWTQ places priority on consistency when comparing companies against each other, and, in principle, calculates the change rate for key KPIs using the JPY amount obtainable from the XBRL. As a result, due to the effect of currency translation, the foreign-currency year-over-year figure in a company's own materials and the year-over-year figure shown by SWTQ may not match. For a detailed review of performance, please refer to each company's official disclosure materials.

13. The 30% Threshold and the "Approx. 30%" Threshold

SWTQ treats a key KPI as a HIT when its year-over-year change is +30.0% or more.

However, because earnings releases are often displayed in units of millions of yen, rounding effects mean that a figure that is +30.0% or more in the company's own disclosure can sometimes come out to the 29.90%-range in SWTQ's system-recalculated value.

To avoid missing such cases, a system-recalculated value of 29.90% or more but less than 30.00% may be included in the extraction as "approx. 30%."

The "approx. 30%" threshold is a supplementary rule designed to avoid missing items due to million-yen-unit display and rounding effects.

Note that HIT determination is based on the system-recalculated value (including sub-decimal precision). Because the displayed value is, as described above, truncated to one decimal place, the value used for classification and the value shown on screen do not always match exactly (for example, a recalculated value of 29.92% is classified as a HIT under "approx. 30%," while the displayed value reads "+29.9%").

14. Determining "Turned Profitable," "Narrower Loss," "Worsened," and "Unavailable"

For profit items, when either the same period a year earlier or the current period is a loss, a simple rate of change may not adequately express the underlying change in performance. For this reason, SWTQ displays the following status badges:

Example of "turned profitable": same period a year earlier was −¥100 million → current period is +¥20 million. This is displayed as "turned profitable" rather than as a standard rate of change.

Example of "narrower loss": same period a year earlier was −¥100 million → current period is −¥30 million. Still a loss, but because the loss has narrowed, it is displayed as "narrower loss."

Example of "worsened": same period a year earlier was +¥100 million → current period is +¥70 million. The rate of change is −30.0%, displayed as "worsened." A swing from profit in the prior year to a loss in the current period is also treated as "worsened."

When the same period a year earlier is zero: if the prior-year value is 0, a standard year-over-year rate cannot be calculated. However, if the current-period and prior-year amounts themselves are both obtainable, the figure is not simply marked unavailable — instead, it may be shown with a status badge such as "turned profitable," "narrower loss," or "worsened," depending on the profit/loss situation. For example, if the prior-year value is 0 and the current period is positive, it is treated as "turned profitable"; if the prior-year value is 0 and the current period is negative, it is treated as "worsened." Similarly, if the prior year was a loss and the current period is 0, it is treated as "narrower loss"; if the prior year was positive and the current period is 0, it is treated as "worsened." These status badges are a supplementary display separate from the standard +30%-or-more determination, and are not included in the S/W/T/Q hit_count.

15. S/W/T/Q Classification Criteria

SWTQ classifies filings into S/W/T/Q based on how many of the four key KPIs — revenue, operating profit, ordinary profit/profit before tax, and net income — achieved +30% or more (or the "approx. 30%" threshold).

Q is the classification given when all four key KPIs achieve +30% or more (or "approx. 30%"). Within SWTQ, it indicates that a change in performance was confirmed across the broadest range of metrics. However, even a Q classification does not constitute an investment recommendation — always review each company's official disclosure materials.

The meaning of "ordinary profit / profit before tax" can differ depending on the company and accounting standard. In particular, for IFRS filers, banks, securities firms, insurers, and trading companies, it may not be fully identical to JGAAP ordinary profit. Please also check the Type field and each company's official disclosure materials.

16. Relationship Between "Turned Profitable"/"Narrower Loss" and the S/W/T/Q Classification

Turning profitable or narrowing a loss is an important change for investors, so SWTQ displays it as a status badge.

However, "turned profitable" and "narrower loss" are different in nature from a standard "+30% or more" growth rate.

For this reason, the basic S/W/T/Q classification is, in principle, centered on the standard +30%-or-more (or "approx. 30%") determination.

"Turned profitable" and "narrower loss" are displayed as status badges for the individual KPI, separately from the S/W/T/Q classification.

As the service is improved, "turned profitable" and "narrower loss" cases may be highlighted as a separate category.

17. Display Badges

To clearly show the status of each key KPI, SWTQ uses the following badges:

A "HIT" company is one where at least 1 of the 4 key KPIs achieved +30% or more (or "approx. 30%"), placing it in one of the S/W/T/Q classes.

"100%+" is not an independent class — it is a badge used to visually highlight cases where a key KPI's rate of change reached +100% or more.

"Turned profitable," "narrower loss," and "100%+" are badges that indicate the status of an individual KPI or provide visual emphasis; none of them is, by itself, an independent classification.

For HIT companies, SWTQ displays all four key KPIs wherever possible, even if some of them are in loss. This makes it easier to see exactly where the change occurred — in revenue, operating profit, ordinary profit/profit before tax, or net income.

18. Common Causes of "Unavailable"

A KPI may be marked "unavailable" in the following cases:

• The XBRL/iXBRL file cannot be retrieved.
• Parsing of the XBRL/iXBRL file failed.
• The target KPI cannot be found within the XBRL.
• Either the same-period-prior-year value or the current-period amount itself cannot be obtained.
• The fiscal period is irregular, making the comparison target unclear.
• A company-specific line-item structure prevents mapping to the key KPIs.
• A standard operating-profit-equivalent item cannot be confirmed, and a company-specific or adjusted metric such as business profit is not substituted into the operating-profit field (see "7. Treatment of Company-Specific and Adjusted Metrics" for details).
• Parsing of the amount unit, sign, or period information was insufficient.

"Unavailable" does not necessarily mean there is a problem with a company's disclosure. It can arise from a company's particular XBRL structure, industry-specific presentation, differences in accounting standards, or the scope of what this service currently supports.

Even if some items are unavailable, a filing may still be classified into S/W/T/Q if the other KPIs meet the criteria.

Note that when the current-period and prior-year amounts themselves are obtainable but the prior-year value is 0, so a standard rate of change cannot be calculated, the item is not marked unavailable; instead, it is shown with a status badge such as "turned profitable," "narrower loss," or "worsened" (see "14. Determining 'Turned Profitable,' 'Narrower Loss,' 'Worsened,' and 'Unavailable'" for details).

19. Limitations of Data Retrieval and Parsing

SWTQ performs automated processing based on XBRL/iXBRL data posted on TDnet. As a result, the following limitations apply:

• If TDnet does not make an XBRL file available, it cannot be parsed.
• If an XBRL file has an unusual structure, key KPIs may not be retrievable.
• Differences in line-item names between companies may prevent correct mapping to the intended KPI.
• For IFRS filers, financial institutions, trading companies, and similar entities, the meaning of a KPI may differ from that of a general operating company.
• Effects from fiscal-period changes, accounting-policy changes, and retrospective restatements are not fully automatically judged.
• Immediately after disclosure, data may be temporarily unavailable depending on how quickly TDnet reflects it.
• Omissions can occur due to network conditions, server load, or changes to an external site's specifications.

SWTQ continuously reviews and improves data quality, but does not guarantee that all disclosed information is retrieved and classified completely.

20. Notes on the Beta Period

During the beta, SWTQ continuously improves its classification logic, KPI mapping table, extraction criteria for covered disclosures, and display methods.

In particular, the following items remain under ongoing verification:

• XBRL retrieval rate
• Company-name retrieval rate
• Consistency with the TDnet listing
• Consistency between the HTML report and email content
• Verification of rate-of-change figures
• Number of parsing failures
• Number of misclassifications
• Classification accuracy for special cases such as IFRS filers, banks, and trading companies
• Display treatment for companies with fiscal-period changes, accounting-policy changes, or retrospective restatements

Please treat beta-period classification results as timeliness-focused reference information.

21. Notes on Use

SWTQ Earnings Filter is a supplementary tool for quickly reviewing changes in the key KPIs contained in earnings releases.

The results displayed by this service are not intended to provide investment advice or to recommend the purchase or sale of any security.

When making an investment decision, please always review the earnings release, the securities report, company presentation materials, and other official disclosures yourself.

SWTQ makes reasonable efforts to retrieve and classify data accurately, but misclassifications, missed items, and display errors may occur due to the structure of XBRL data, how quickly TDnet reflects it, differences in line items between companies, network conditions, or other system-processing reasons.

The classification criteria, target KPIs, display method, scope of data retrieved, and run times may be changed without notice as the service is improved.