Digital Information Technologies : Financial Results for the First Quarter of the Fiscal Year Ending June 2022

Digital Information Technologies Corporation

Financial Results for the First Quarter of the Fiscal Year Ending June 2022

(TSE1: 3916)

November 2021

https://www.ditgroup.jp

1. Financial Results for FY6/2022 1Q
2. Business Forecasts for FY6/2022
3. DIT Group's Vision for 2030 and New Mid-term Management Plan
4. Reference material

2

Financial Results for FY6/2022 1Q

https://www.ditgroup.jp

FY6/2022 1Q Overview of Financial Results (Performance)

• The performance remained firm as we steadily responded to the growing trend in software investment.
• While the business performance was favorable, the operating income margin was steady at 11.3%, down 0.6 ppt. from the previous fiscal year, as tax and dues in SG&A expenses, which had been reduced due to a refund in the previous fiscal year, returned to the normal level.

Net sales: 3,716 million yen

(+8.3% YoY)

Operating income: 421 million yen

(+3.6% YoY)

Operating income margin: 11.3%

(-0.6 ppt. YoY)

Progress rate to the full-year forecasts

Net sales (Est.): 15,600 million yen

Operating income (Est.): 1,900 million yen

Net sales	1Q
23.8%
1Q
	22.2%
Operating
income

4

FY6/2022 1Q Overview of Financial Results (Business)

Software Development Business performed well despite the COVID-19 crisis

• Software Development Business (+9.1% YoY)

• In the Business Solutions Unit (+8.4% YoY), we saw higher sales and profits, partly due to the effect of the business portfolio revisions. In the business system development, sales of pharmaceutical-related projects grew significantly. Sales of distribution and ERP-related projects also progressed more than expected. Sales from financial institutions decreased due to a shift in personnel. Distribution-related sales also decreased reflecting the impact of COVID-19. Operational support grew due to an increase in demand for cloud infrastructure construction, as the impact of the COVID-19 was small.

・In the Embedded Solutions Unit (+9.2% YoY),automotive-related sales increased slightly YoY in the development-related business, although it took time to recover from the COVID-19 crisis. IoT-related sales, including those related to mobile devices and consumer electronics, steadily expanded. In the system verification, sales related to 5G were strong, and sales of pharmaceuticals-related also grew.

・In the Original Product Unit (+17.4% YoY),sales were firm, exceeding the level of the same period of the previous fiscal year, despite constraints on sales activities due to COVID-19.In the cyber security business, license sales are increasing. In the operational efficiency improvement business, the horizontal expansion of existing customers to other departments is progressing.

• Systems Sales Business (-9.4% YoY)

Both sales and profits declined year-on-year due to the significant impact of COVID-19.

5