Presentation Material
for the Three Months Ended June 30, 2021
August 10, 2021
Copyright© 2021 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved.
Tokyo Stock Exchange First Section: Code 3676
https://www.digitalhearts-hd.com/
Q1 FY2021 Financial Results
(The three months ended June 30, 2021)
Copyright© 2021 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved. | 1 |
Business Highlight for Q1 FY2021
High sales growth in the buoyant market
Net Sales
6,098 Mln yen
(YoY 119.7%)
- The Enterprise Biz maintained rapid growth due to the tailwind of DX, steady progress in increasing the number of clients and acquiring larger projects.
- The Entertainment Biz also achieved double- digit sales growth by steadily acquiring large- scale projects in the buoyant game market.
Significant profit | Operating Income |
growth with | |
636 Mln yen | |
bigger sales and | (YoY 401.3%) |
higher margin | |
- The Enterprise Biz turning into profitable from a loss of last Q1 due to good sales results and higher margin with better unit prices and improved operation rates, while continuing to invest in human capital for further growth.
- The Entertainment Biz also achieved profit growth of approx. 1.8 times (YoY) through the effects of higher sales and efficient management.
Progress rate to | ◼ | Both net sales and operating income | |
the full-year target | progressed ahead of the Company's Q1 target. | ||
Strong start toward | ◼ | The consolidation of four subsidiaries acquired | |
Net Sales | |||
achieving the full- | |||
21.5% | through M&A is expected to contribute a | ||
year target | further sales increase of Q2 or later. | ||
Operating Income | ◼ | Building a foundation for our future growth to | |
30.3% | |||
achieve the full-year target as the step to the | |||
Medium-Term Target of sales 50 billion yen. | |||
Copyright© 2021 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved. | 2 |
Topics for Q1 FY2021
Entertainment Business | Enterprise Business | |
Corporate
Appointed
the first female corporate auditor
Entertainment Business
High growth of debugging for console games in a robust market
Sales of Debugging for | Compared to Q1 |
(Mln yen) Console Games | FY2019 before |
1,500 | COVID-19 |
111% | |
1,000 | |
500 |
0
Q1 FY2019 Q1 FY2020 Q1 FY2021
Acquired identity Inc. and expand diverse pool of IT human resources
Registered | Security | Registered |
personnel | testers | |
IT experts | ||
approx. | approx. | |
approx.13,000 people | ||
100 people | 8,000 people | |
Engineers in Vietnam
More projects from Chinese clients as synergies from M&A
Sales of Global Service
(Mln yen) | 128% |
500 |
0
Q1 FY2020 | Q1 FY2021 |
Enterprise Business
For full-scale utilization of offshore in Vietnam
Launch full-stack | Bridge personnel | ||
development as JV | from Japan | ||
Increasing test automation projects in Vietnam for Japanese clients
approx.
400 people
※P/L consolidation from Q2 FY2021
Enterprise Business
Collaboration between |
newly joined MK Partners and |
LogiGear to acquire new clients |
in Europe and the U.S. |
Copyright© 2021 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved.
3 |
※P/L consolidation from Q2 FY2021 |
Summary of Financial Results for
the Three Months Ended June 30, 2021
- High growth in net sales of 119% and operating income of 401% YoY.
- Both progressed at a pace exceeding the Company's forecasts.
(Mln Yen) Q1 FY2020 Q1 FY2021 YoY Change
Net sales | 5,093 | 6,098 | 1,005 | 119.7% |
Cost of sales | 3,819 | 4,271 | 451 | 111.8% |
Cost of sales (%) | ||||
75.0% | 70.0% | -5.0points | ||
Gross profit | ||||
1,273 | 1,827 | 553 | 143.5% | |
SG&A | ||||
1,115 | 1,191 | 76 | 106.8% | |
Operating income | 158 | 636 | 477 | 401.3% |
Operating income | ||||
3.1% | 10.4% | +7.3points | ||
margin | ||||
Ordinary income | 194 | 670 | 476 | 344.9% |
Profit attributable to | 99 | 487 | 388 | 491.3% |
owners of parent | ||||
EBITDA | 255 | 732 | 477 | 286.8% |
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Hearts United Group Co. Ltd. published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 07:09:09 UTC.