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
Copyright© 2022 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved. | 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
- Waiting funds for future M&A
- Repayment of existing M&A bank loans
- 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 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
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.