Presentation Material

for the Three Months Ended June 30, 2022

August 9, 2022

Copyright© 2022 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved.

Tokyo Stock Exchange Prime Market: Code 3676

https://www.digitalhearts-hd.com/

Summary of Business Results

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1

Financial Highlights for the First Quarter of the Fiscal Year Ending March 31, 2023

Results

overview

Record high net sales and operating income in Q1

Net sales

¥8,372 mn

Operating

¥639 mn

EBITDA

¥893 mn

(YoY 137.3%)

income

(YoY 100.5%)

(YoY 121.9%)

  • The Enterprise Business, our focus business, drove sales growth, and the Entertainment Business also achieved double-digitgrowth against the backdrop of the favorable game market.
  • Achieve an operating income growth and record a sharp increase of EBITDA by YoY 121.9%, despite launching expenses for AGEST, Inc., such as opening new offices, increasing in personnel for business expansion, and developing new business systems.

Continued active implementation of M&A

Topics

CEGB Co., Ltd.

Sobal Corporation

GameWith, Inc.

Stock purchase (In March 2022)

Absorption-type

company split

(In August 2022)

Capital and

business alliance (In June 2022)

Consolidated to PL from FY2022 Q1. Promote business expansion in the ERP area.

Succeeded their quality assessment business including approximately 130 test engineers.

Capital and business alliance aiming to add value on Entertainment Business.

Resolution of the equity finance (Stock acquisition rights)

Transaction size (plan) Approx. ¥4.2 billion

(Approximate amount after payment of expenses)*

Tenor: July 20, 2022 to July 19, 2024)

Purposes

  1. Waiting funds for future M&A
  1. Repayment of existing M&A bank loans
  1. Expenses for R&D initiatives and recruitment and training of engineers

*Transaction size amounts (plan) may increase or decrease if the exercise

Copyright© 2022 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved. price is revised or if the acquisition rights are not exercised during the period. 2

New Management Structure

By increasing the number of outside directors and executive officers, aiming to strengthen governance structure and improve business execution capabilities.

New management structure

(Holding Company)

Representative Director,

Director and Chairman

Director, Executive

Outside Director

Outside Director

Outside Director

President and CEO

Eiichi Miyazawa

Vice President and CFO

Takashi Yanagiya

Emiko Murei

Ryo Chikasawa

Yasumasa Ninomiya

Toshiya Tsukushi

Executive Officer and CSO

Tadahiro Ando

Executive Officer and CTO

Kazutaka Jokura

Executive Officer and CIO

Mamoru Seki

Standing Audit &

Audit & Supervisory

Outside Audit &

Outside Audit &

Executive Officer

Toshiyuki Takahashi

Supervisory Board

Board Member

Supervisory Board

Supervisory Board

Executive Officer

Hideto Itami

Member

Member

Member

Keiya Kazama

Masahide Date

Toshifumi Nikawa

Yoko Okano

  • Outside director : Three outside directors out of six directors, to strengthen our governance

Points Diversity : Appoint a new female director and increase the number of female executives from one to two

  • Executive officers : Increase the number of members to improve business execution capabilities

Copyright© 2022 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved.

3

Summary of Financial Results for FY2022

Significant increase in sales due to the growth of existing businesses and the impact of M&As. Operating income increased and EBITDA grew significantly,

despite aggressive investment for growth.

(JPY mn)

Q1 FY2021 Q1

FY2022

YoY Change

Net sales

6,098

8,372

2,273

137.3%

Cost of sales

4,271

5,899

1,628

138.1%

Cost of sales (%)

70.0%

70.5%

+0.4points

Gross profit

1,827

2,472

645

135.3%

SG&A

1,191

1,832

641

153.9%

Operating income

636

639

3

100.5%

Operating income

10.4%

7.6%

-2.8points

margin

Ordinary income

670

637

-32

95.2

Profit attributable to

487

416

-71

85.3%

owners of parent

EBITDA

732

893

160

121.9%

Copyright© 2022 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved.

4

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Hearts United Group Co. Ltd. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 11:15:05 UTC.