Orchestra : Results of Operations for the Second Quarter of the Fiscal Year Ending December 31, 2022

Results of Operations for the Second Quarter of the Fiscal Year Ending December 31, 2022

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Contents

01 Financial Overview: 2Q FY2022

02 Earnings Forecast: FY2022

03 Business Summary/Growth Strategy

04 Appendix

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01 Financial Overview: 2Q FY2022

2Q FY2022 Consolidated Results

Posted all-time high sales and record-high 2Q profits.

Maintain a high growth rate while investing in human resources and new businesses.

（Millions of yen）	1H/FY2022	1H/FY2021	% Change	2Q/FY2022	2Q/FY2021
Net Sales(Net)	4,935	-	-	2,470	-
Gross Profit	2,481	1,794	38.3%	1,183	905
SG&A expenses	1,629	1,112	46.4%	856	588
Operating Profit	851	681	24.9%	326	316
EBITDA	950	735	29.3%	380	343
EBITDA margin	19.3%	-	-	15.4%	-
Ordinary Profit	879	692	27.1%	349	316
Profit attributable to owners parent	489	436	11.9%	198	191
Reference: Before applying the new revenue recognition standard
		※
Net Sales(Gross)	9,920	7,577	30.9%	5,022	3,798

% Change

- 30.7% 45.5% 3.2% 10.7% - 10.6% 3.7%

32.2%

※From the beginning of the first quarter of FY2022, due to the application of the new revenue recognition standard, part of the sales of the digital marketing business has been changed from Gross to Net. The change has no impact on profits. Refer page6 for the details.

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2Q FY2022 Segment Results

Strong growth continued in all businesses.

Posted all-time high sales in DX and record-high 2Q profits in DX and Digital Marketing business.

Segment	1H/FY2022	1H/FY2021	% Change	2Q/FY2022	2Q/FY2021	% Change
（Millions of yen）
Digital Transformation(DX) business
Net sales	2,434	1,941	25.4%	1,230	990	24.3%
Segment profit	272	223	22.2%	67	64	4.6%
Digital Marketing business
Net sales(Net)	2,057	-	-	995	-	-
Segment profit	1,055	820	28.6%	483	410	17.8%
Other businesses
Net sales	514	317	61.9%	274	165	65.9%
Segment profit	△ 23	22	-	1	16	△89.9%

Reference: Before applying the new revenue recognition standard ※

Digital Marketing business

Net sales（Gross）

7,042

5,349

31.6%

3,547

2,658

33.4%

Posted all-time high sales and record-high 2Q profits while investment in human resources to enhance sales and development team

Posted record-high 2Q profits. Orders from current and new customers increased steadily.

Earnings increased due to sales

from R-Stone (acquired last

November). On the other hand, profits decreased due to upfront investments in new businesses, such as "Skill Navi".

※From the beginning of the first quarter of FY2022, due to the application of the new revenue recognition standard, part of the sales of the digital marketing business has been changed from Gross to Net. The change has no impact on profits. Refer page6 for the details.

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