Digital Information Technologies : Summary of Business Results for the Three Months Ended September 30, 2021 (Consolidated)

(% represents the change from the previous corresponding period)

(% represents the change from the previous corresponding period)

Summary of Business Results

for the Three Months Ended September 30, 2021

[Japan GAAP] (Consolidated)

Company	Digital Information Technologies Corporation
Stock Code	3916	URL:http://www.ditgroup.jp/
Representative	Satoshi Ichikawa, President and Representative Director

Contact	Ken Mochizuki, Director, Executive Officer, General Manager
of Corporate Planning Division
Expected date of filing of quarterly report: November 12, 2021
Expected starting date of dividend payment: -

Preparation of quarterly supplementary financial document: Yes

Quarterly results briefing: None

November 9, 2021 Listed on the TSE

T E L: [phone]

（Rounded down to million yen）

1. Consolidated business results for the three months ended September 30, 2021 (July 1, 2021 through September 30, 2021)

(1) Consolidated results of operations

	Net sales		Operating income	Ordinary income	Net income attributable to
		owners of parent
For the three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
September 30, 2021	3,716	8.3	421	3.6	422	3.6	294	5.4
September 30, 2020	3,430	4.8	407	15.1	407	14.6	279	13.4

(Note) Comprehensive income

Three months ended September 30, 2021: 294 million yen (6.1%)

Three months ended September 30, 2020: 277 million yen (6.6%)

	Net income		Diluted net income
	per share		per share
For the three months ended		Yen	Yen
September 30, 2021		19.31	-
September 30, 2020		18.33	-

(Note) Diluted net income per share is not presented because there are no dilutive shares.

(2) Consolidated financial position

	Total assets	Net assets	Shareholders' equity
	ratio
As of	Million yen	Million yen	%
September 30, 2021	6,235	4,617	74.1
June 30, 2021	6,388	4,526	70.9
(Reference) Shareholders' equity
As of September 30, 2021: 4,617 million yen
As of June 30, 2021: 4,526 million yen

2. Dividends

				Annual dividend
	End of 1Q		End of 2Q	End of 3Q	Year-end	Total
For the fiscal year		Yen	Yen	Yen	Yen	Yen
ended June 30, 2021		-	10.00	-	14.00	24.00
ending June 30, 2022		-
ending June 30, 2022 (forecast)			15.00	-	15.00	30.00

(Note) Revisions to dividend forecast for the current quarter: None

3．Forecast of consolidated business results for the fiscal year ending June 30, 2022 (July 1, 2021 through June 30, 2022)

	Net sales	Operating income	Ordinary income	Net income attributable	Net income
	to owners of parent	per share
For the fiscal year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
ending June 30, 2022	15,600	8.0	1,900	10.3	1,900	9.8	1,318	10.2	86.44

(Note) Revisions to business forecast for the current quarter: None

※Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): None
2. Application of accounting procedures specific to preparation of the consolidated quarterly financial statements: None

1. Changes in accounting policies, accounting estimates and restatement
   ① Changes in accounting policies associated with revision of accounting standards: ②Changes in accounting policies other than ①
   ③Changes in accounting estimates
   ④Restatement
2. Shares outstanding (common stock)

① Number of shares outstanding at the end of period (treasury stock included)

As of September 30, 2021	15,501,820 shares
As of June 30, 2021	15,501,820 shares
②Treasury stock at the end of period
As of September 30, 2021	253,521 shares
As of June 30, 2021	253,489 shares

③Average number of stock during period (quarterly cumulative period)

Three months ended September 30, 2021	15,248,322 shares
Three months ended September 30, 2020	15,248,361 shares

• Yes
• None
• None
• None

(Note) The number of treasury stock to be deducted from the calculation of the number of treasury stock at the end of the period and the number of treasury stock during the period includes the Company's shares held by Custody Bank of Japan, Ltd. as trust assets under the Employees' Benefit Trust (J-ESOP) Plan.

*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or auditing firms.

*Explanation regarding appropriate use of business forecasts and other special instructions

Forecasts regarding future performance in this material are based on information currently available to the Company and certain assumptions that the company deems to be reasonable at the time this report was prepared. The Company does not make promises about the achievements. Actual results may differ significantly from the forecasts due to various factors.

• Contents

1. Qualitative Information Regarding Consolidated Quarterly Business Results………………………………………………. 2

1. Explanation of Business Results………………………………………………………………………………………….. 2

(2) Explanation of Financial Position…………………………………………………………………………………………	5
(3) Explanation of Results Forecasts and Other Future Predictions…………………………………………………………..	5
2. Consolidated Quarterly Financial Statements and Major Notes………………………………………………………………	6
(1) Consolidated Quarterly Balance Sheets…………………………………………………………………………………...	6
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………………………..	8

(Consolidated Quarterly Statements of Income)

(First Quarter Cumulative)…………………………………………………………………………………………. 8

(Consolidated Quarterly Statements of Comprehensive Income)

(First Quarter Cumulative)…………………………………………………………………………………………. 9

1. Notes on Quarterly Consolidated Financial Statements…………………………………………………………………... 10 (Notes Regarding Going Concern Assumptions)……………………………………………………………………….. 10 (Changes in Accounting Policies)……………………………………………………………………………………….. 10
   (Notes Regarding Substantial Changes in Shareholders' Equity)………………………………………………………. 10 (Segment Information)…………………………………………………………………………………………………... 11

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Medium-termmanagement targets by FY6/30

Organic growth+ New businesses, M&A, etc.

30 billion yen or more50 billion yen

4 billion yen or more50 billion yen

1. Qualitative Information Regarding Consolidated Quarterly Business Results

(1) Explanation of Business Results

During the subject first quarter cumulative period (July 1, 2020 to September 30, 2021), the business environment remained severe due to COVID-19 both in Japan and overseas. In Japan, the stricter antivirus measures and the State of Emergency were declared, and the damage spread to many industries. In addition, while the COVID-19 cases gradually declined after peaking in August reflecting the progress in vaccination, the outlook remains uncertain.

In the information service industry, to which our company belongs, it remained difficult to avoid the impact of the infection, although the degree of impact varies depending on the business portfolio including customer composition and other aspects. Even under these circumstances, according to the Bank of Japan's Tankan survey (September) released on October 1, 2021, the software investment plan for 2021 (total for all industries and enterprises of all sizes) continued to show an upward trend with a 14.3% year-on-year increase.

For our group as well, the progress in fields such as Artificial Intelligence (AI), Internet of Things (IoT), and Robotic Process Automation (RPA, the automation and efficiency enhancement of tasks using software robots) have led to increased opportunities to enter new businesses and the expansion of business scope.

Under the COVID-19 crisis, the need for strengthening measures for cyber security and improving the efficiency of working styles further increased, and this provided a tailwind for our group, which has effective solutions for these issues.

Under such conditions, the DIT Group formulated the following five business strategies, and continues to take proactive measures to achieve them.

・Renovation (Expand and stabilize business foundation through reform of existing businesses) ・Innovation (Create new value centered on in-house products)

・Shift from competition to collaboration (Expand business through cooperative efforts) ・Shift from development to services (Expand business from service-oriented perspective) ・Secure and develop human assets (Hire and train personnel)

In addition, on August 20, 2021, we announced the new medium-term management plan and the DIT Group's vision for 2030. In the 2030 Vision, we have set the DIT's future vision (DIT Services：providing a higher level of value, DIT Spirits: a group of professionals) to build a "Trusted and Chosen DIT Brand, and also set the following management targets as the "Challenge 500(*)".

Management Targets

Net sales

Operating Income

1. Challenge 500
   Targeting 50 billion yen sales toward FY6/30!

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As a step toward achieving this 2030 Vision, we set the period from FY6/22 to FY6/24 as the period for "promoting business restructuring" to build up business capabilities by promoting the creation of a company and structure that will enable the next growth. We also set the period from FY6/25 to FY6/27 as the period for "achieving a growth trajectory" to establish a business style and put the overall business on a growth track, and the period from FY6/28 to FY6/30 as the period for "establishing the DIT brand", that is trusted and chosen by all stakeholders.

During FY6/22, the first year of the current medium-term management plan, DIT has promoted our business with focusing on the two axes: "expand and stabilize the business foundation" and "expand growth factors." With regard to "expand and stabilize the business foundation," the overall business showed strong growth as we allocated resources appropriately to high- demand markets in both the Business Solutions business and the Embedded Solutions business, which offset the slump in the System Sales business. In terms of "expand growth factors", DIT achieved steady growth as a result of ongoing efforts to enhance product appeal and strengthen sales of WebARGUS¹, an original product built on proprietary technology, and xoBlos², an innovation platform for Microsoft Excel users.

As mentioned above, the business itself performed well, but SG&A expenses increased by 75,202 thousand yen year-on-year due to an increase in personnel expenses and recruitment expenses in line with business expansion and the refund of taxes and dues in the previous year. As a result, the growth in profits was subdued.

As a result, net sales in the subject first quarter cumulative period amounted to 3,716,950 thousand yen (up 8.3% year on year), with operating income of 421,827 thousand yen (up 3.6%), ordinary income of 422,064 thousand yen (up 3.6%), and net income attributable to owners of parent of 294,487 thousand yen (up 5.4%).

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