Strong Performance in Core Businesses: Game Debugging and QA Solutions
A Good Start Toward Achieving Our Full-Year Targets

　Aiming to maximize corporate value by pursuing specialization and agile management, our company is steadily preparing for the share-distribution-type spin-off and listing of AGEST, Inc., a consolidated subsidiary, as we have communicated previously. Since last year, we have started a new management structure, separating the DH Group Business and AGEST Group Business into two independent groups. This has enabled us to sharpen our management focus on each specialized domain and vigorously pursue distinct growth strategies.

　In Q1 FY2025, the DH Group Business achieved record quarterly sales in Domestic debugging division, driven by the launch of the Nintendo Switch 2. Anticipating increased demand, we proactively secured over 600 units of testing equipment specialized for new hardware since the end of FY2024 and expanded our testing center capacity. These efforts positioned us well to capture new projects. In our strategic Global and others division, we are seeing promising growth in our translation services powered by “ella,” our unique AI translation engine, which was fully launched in nine languages in February 2025. We have received some orders for large-scale projects exceeding one million characters, and demand continues to rise—particularly for multilingual translations, which now account for approximately half of all client requests(*). We believe “ella,” with its ability to deliver simultaneous multilingual translations, at a certain competitive better speed and with consistent high quality, will be a powerful asset in supporting the simultaneous global release of games.

　Meanwhile, the AGEST Group is actively investing in talent and technology. Thanks to our strong employer brand and diverse recruitment channels, we successfully hired 60 test engineers in Japan during Q1, despite a tight labor market. On the technology front, our unique AI testing tool “TFACT” (β version) has already attracted significant interest from clients, and we are refining it for a full-scale launch in September 2025. Additionally, we are advancing a patent application for “AdaSniper,” a new technology developed in collaboration with the University of Electro-Communications and the National Institute of Informatics, which enhances the reliability of image recognition models—demonstrating our commitment to technical excellence as a service provider specializing in testing.

　As a result, consolidated net sales for Q1 FY2025 totaled 9,380 million yen (down 4.6% YoY) primarily due to the sale of a non-core subsidiary in December 2024. However, excluding the impact of this sale, we achieved a +6.4% YoY increase in revenue, driven by growth in core businesses such as Domestic debugging and QA solutions. On the profit side, we recorded a significant increase to 707 million yen (up 139.2% YoY), supported by sales growth of highly profitable Domestic debugging of DH Group and improved profitability in the AGEST Group.

　Both business segments exceeded their profit targets for Q1, and we will continue to steadily implement growth initiatives in each area to achieve our full-year targets.

　We sincerely appreciate the continued support of our shareholders and look forward to your ongoing trust and encouragement.

　*Among the translation projects received in Q1 FY2025, the proportion of those translated from Japanese into multiple languages.

August 7, 2025
President & CEO
Toshiya Tsukushi