Record-high sales and Operating income as Q1 results,
while aggressively investing in the Enterprise Business for its developing business basement and its future growth

 On April 1, 2022, the Group has shifted to a new structure with two core companies, the Enterprise Business centered on AGEST, Inc. and the Entertainment Business on DIGITAL HEARTS Co., Ltd. The primary objective of this reorganization is to vigorously pursue expertise and create new value in each area of the Enterprise Business and the Entertainment Business by clearly set the core company of each business segment. Especially, regarding the Enterprise Business as our focusing business, we are aiming to strengthen the business basement and to accelerate the pace of growth through this reorganization.

 During FY2022 Q1, we have done various initiatives for the Enterprise Business. We reallocated its human resources in line with this reorganization and built a better working environment as the new Tech Center to attract our engineers. We also promoted recruiting initiatives for engineers by utilizing our new “AGEST” brand, which differs from the existing “Game / Entertainment” brand image that the Group originally have since its foundation. As a result of these initiatives, the number of engineer applicants has increased by 1.4 times compared to previous FY2021 Q4, and we have seen more and more inquiries and interests in our Quality Assurance services from our client and other companies. These have made us sure that we have actually developed new market demands and have met our clients’ needs. Furthermore, we are focusing not only on the growth of these current businesses, but also on strategical growth through aggressive M&As. In FY2022 Q1, we conducted an absorption-type contract to succeed the Quality Assurance business from Sobal Corporation. And also, by strengthening Group collaboration with subsidiary newly joined us in the previous fiscal year, we have expanded our business in the attractive ERP-related service market, where we have not developed much enough.

 The Entertainment Business also achieved strong growth, including strong double-digit growth in Domestic debugging division, backed by growing demand in the robust console game market. We also promoted initiatives to increase the added value of services, including entering into a capital and business alliance with GameWith, Inc.

 Consequently, in FY2022 Q1, both the Enterprise Business and the Entertainment Business performed well, and net sales increased significantly to 8,372 million yen (YoY 137.3%). In addition, Operating income secured an increase to 639 million yen (YoY 100.5%), despite aggressive investments for future growth mainly in the Enterprise Business.

 In this Q2 and beyond, we will continue to invest aggressively to strengthen our human resources and technological capabilities, particularly in the Enterprise Business, while aiming to achieve record-high net sales and operating income in full year base.

 We look forward to your continued understanding and support.

August 9, 2022
President and CEO Yasumasa Ninomiya