Orchestra : Results of Operations for the Second Quarter of the Fiscal Year Ending December 31, 2021

Results of Operations

for the Second Quarter of the Fiscal Year Ending December 31, 2021

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Contents

01 Financial Overview: 2Q/1H 2021

02 Earnings Forecast: 2021

03 Business Summary/Growth Strategy

04 Appendix

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01 Financial Overview: 2Q/1H 2021

2Q/1H 2021 Consolidated Results

First half sales increased to a record high and earnings for the second quarter and first half both set new records by wide margins.

Sales and earnings were higher despite the growth of SG&A expenses for investments in human resources in the cloud integration business.

(Millions of yen)	1H 2021	1H 2020	% Change	2Q 2021	2Q 2020	% Change
Net sales	7,577	5,551	36.5%	3,798	2,690	41.2%
Gross profit	1,794	1,143	56.9%	905	547	65.3%
SG&A expenses	1,112	842	32.1%	588	468	25.5%
Operating profit	681	301	126.2%	316	78	303.5%
EBITDA	735	353	108.2%	343	105	227.5%
EBITDA margin	9.7%	6.4%	3.3pt	9.1%	3.9%	5.2pt
Ordinary profit	692	299	131.1%	316	77	305.9%
Profit attributable to	436	178	144.3%	191	42	351.5%
owners of parent
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2Q/1H 2021 Segment Results

Strong growth continued in all businesses despite the COVID-19 pandemic. Cloud integration was the main reason for the rapid growth of the DX business.

Digital Marketing also continued to grow, posting record-high 2Q sales and all-time high earnings.

Segment		1H 2021	1H 2020	% Change	2Q 2021	2Q 2020	% Change
(Millions of yen)
Digital Transformation (DX) business
Net sales		1,941	1,612	20.4%	990	831	19.1%
Segment profit		223	111	99.4%	64	41	56.3%

Posted all-time high sales and

record-high 2Q earnings

while investment in human

resources to enhance sales and

development team

Digital Marketing business

Net sales	5,349	3,720	43.8%	2,658	1,743	52.5%
Segment profit	820	497	65.2%	410	201	103.3%
Other businesses

Posted record-high 2Q sales and

all-time high earnings.

Orders from current and new customers increased steadily.

Net sales	317	223	41.9%	165	118	39.4%
Segment profit	22	(1)	-	16	(4)	-

Losses from upfront investments in

new businesses were offset by earnings from Urala, an app for fortune telling chat consultations

• Beginning in 2021, some corporate expenses that were not assigned to a business segment in prior years are now assigned to a business segment by using reasonable standards. The purpose is to show the performance of business segments more appropriately. Earnings for 2Q/1H 2020 have been revised for consistency with this change.

* Net sales of each business segment include intersegment sales between the reportable segments.	5