(Percentages indicate year-on-yearchanges.)

June 10, 2022

Consolidated Financial Results

For the Three Months Ended April 30, 2022

(Japanese Accounting Standards)

Name of the Listed Company: Pole To Win Holdings, Inc.

Listing:

Tokyo Stock Exchange, Prime Market

Stock code:

3657

URL:

https://www. phd.inc

Representative:

Teppei Tachibana, President & CEO

Contact Person:

Joji Yamauchi, Director & CFO

Tel:

+81-3-5909-7911

Scheduled date to file Quarterly Securities Report:

June 13 2022

Scheduled date to commence dividend payments:

－

Supplementary explanatory materials prepared:

Yes

Explanatory meeting:

No

(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the three months ended April 30, 2022 (from February 1, 2022 to April 30, 2022)

(1) Consolidated operating results

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

April 30, 2022

9,610

19.9

710

-14.5

865

0.9

380

-28.2

April 30, 2021

8,015

26.6

830

36.9

857

31.7

530

38.3

(Note) Comprehensive income

Three months ended April 30, 2022: ¥449 million (-44.7%)

Three months ended April 30, 2021: ¥814 million (708.0%)

Net profit

Diluted net profit

per share

per share

Three months ended

Yen

Yen

April 30, 2022

10.10

-

April 30, 2021

14.00

-

(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others are applied from the beginning of the first quarter of the current fiscal year. The figures for the April 30, 2022 are after the application of the said accounting standards, etc.

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

As of

Millions of yen

Millions of yen

%

April 30, 2022

23,245

17,423

74.9

January 31, 2022

22,281

17,646

79.2

(Reference) Equity

As of April 30, 2022 : ¥17,414 million

As of January 31, 2022: ¥17,638 million

(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others are applied from the beginning of the first quarter of the current fiscal year. The figures for the first quarter of the fiscal year ending January 31, 2023 are after the application of the said accounting standards, etc.

(Percentages indicate year-on-yearchanges.)

2. Cash dividends

Cash dividends per share

First quarter

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

Fiscal year ended January 31, 2022

-

0.00

-

14.00

14.00

Fiscal year ending January 31, 2023

-

Fiscal year ending January 31, 2023 (Forecasts)

0.00

-

15.00

15.00

(Notes) Change from the latest pressed dividend forecasts: No

3. Consolidated financial forecasts for the fiscal year ending January 31, 2023 (from February 1, 2022 to January 31, 2023)

Net sales

Operating

Ordinary

Profit attributable

Net income

profit

profit

to owners of parent

per share

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

Six months ending

18,739

21.0

1,409

-6.8

1,371

-11.4

712

-21.5

18.69

July 31, 2022

Fiscal year ending

40,088

17.0

4,002

21.1

3,926

16.1

2,428

8.3

63.64

January 31, 2023

(Notes) Change from the latest pressed financial forecasts: No

* Notes:

(1) Changes in significant subsidiaries during the three months ended April 30, 2022

(changes in specified subsidiaries resulting in a change in the scope of consolidation)

: Yes

Excluded 1 company (Company name) PITCREW CO., LTD.

  1. Use of particular accounting treatments in preparation of quarterly consolidated financial statements : Yes
  2. Changes in accounting policies, changes in accounting estimates, and restatement of revisions

a. Changes in accounting standards due to revisions to accounting standards and other guidelines

: Yes

b. Changes in accounting policies due to reasons other than a. above

: No

c. Changes in accounting estimates

: No

d. Restatement of revisions

: No

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 8 of the attached document.

  1. Number of common shares issued

a. Total number of issued shares at the end of the period (including treasury stock)

As of April 30, 2022

: 38,156,000 shares

As of January 31, 2022

: 38,156,000 shares

b. Number of shares of treasury stock at the end of the period

As of April 30, 2022

: 578,530 shares

As of January 31, 2022

: 400,502 shares

c. Average number of shares (Cumulative)

For the three months ended April 30, 2022

: 37,699,233 shares

For the three months ended April 30, 2021

: 37,886,265 shares

  • This report falls outside the scope of quarterly review procedures of a certified public accountant or an audit firm.
  • Proper use of earnings forecasts, and other special matters

(Disclaimer to forward-looking statements)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due to various factors. For details on the conditions assumed and the cautionary notes and items in the financial forecasts, please refer to (3) Qualitative Information on Consolidated Earnings Forecasts on page 5 of the Attachment Materials to this report.

(How to obtain supplementary materials explaining earnings for the quarter)

The Company discloses the Supplementary Information to the Financial Results on the TDnet on the same day.

○Table of Contents of Attachments

1. Qualitative Information on Financial Results …………………………………………………………………………………

2

(1) Analysis of Operating Results ……………………………………………………………………………………………

2

(2) Analysis of Financial Position ……………………………………………………………………………………………

3

(3) Qualitative Information on Consolidated Earnings Forecasts ……………………………………………………………

3

2. Consolidated Financial Statements ……………………………………………………………………………………………

4

(1) Consolidated Balance Sheets ……………………………………………………………………………………………

4

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income …………………………

6

Consolidated Statements of Income …………………………………………………………………………………

6

Consolidated Statements of Income (Three-month period ended April 30, 2022) …………………………………

6

Consolidated Statements of Comprehensive Income …………………………………………………………………

7

Consolidated Statement of Comprehensive Income (Three-month period ended April 30, 2022) …………………

7

(3) Notes to Consolidated Financial Statements ………………………………………………………………………………

8

(Notes on Going Concern Assumption) …………………………………………………………………………………

8

(Notes on Significant Changes in Shareholders' Equity) ………………………………………………………………

8

(Changes in accounting policies) ………………………………………………………………………………………

8

(Use of particular accounting treatments in preparation of quarterly consolidated financial statements) ………………

9

(Segment Information) …………………………………………………………………………………………………

9

- 1 -

1. Qualitative Information on Financial Results

(1) Analysis of Operating Results

During the first quarter of the current consolidated fiscal year, the Japanese economy is expected to pick up, partly due to the effects of various policies and improvements in overseas economies, while taking all possible measures against COVID-19. However, amid the uncertainty caused by the situation in Ukraine and other factors, we need to pay close attention to downside risks due to rising raw material prices, fluctuations in financial and capital markets, supply constraints and the impact of COVID-19. Under these economic conditions, the Group provides Service Life Cycle Solutions Business that provides quality consulting, game testing/verification & evaluation, software third party verification, environment construction and transition support, monitoring, customer support, anti-fraud, BPR support, etc. that occurs in the process of our clients lifecycle of planning, development, release, operation, and improvement. During the first quarter's consolidated period, we merged three main operating companies, Pole To Win Co., Ltd., PITCREW CO., LTD. and QaaS Co., Ltd., in February to seamlessly solve the problems in the life cycle of customers' services and products and to promote management efficiency. Similarly, in February, MIRAIt Service Design co. ltd merged with SOFTWISE Corporation, MSD Secure Service Inc., and Seitatsu Technology, Inc. In overseas, PTW New Zealand Limited (a New Zealand subsidiary) was established for the purpose of business expansion. We promoted "Service Life Cycle Solutions Business" on a global scale through the collaboration of 12 domestic cities and 22 overseas offices in 13 countries.

As a result, net sales for the first quarter of the current fiscal year were ¥9,610,998 thousand (increased 19.9% year-on-year), operating profit was ¥710,077 thousand (decreased 14.5% year-on-year), ordinary profit was ¥865,752 thousand (increased 0.9% year-on-year), and profit attributable to owners of the parent was ¥380,946 thousand (decreased 28.2%).

Since the Company changed its reportable segment to a single segment of "Service Life Cycle Solutions Business" effective from the first quarter of the current fiscal year, the description of operating results by segment is omitted.

Operating results by service category are as follows.

Domestic Solutions

In this service category, domestic subsidiaries provide services for the game market, including testing, customer support, localization, and overseas expansion support. For the Technology market, the company provides services related to software third-party verification, environment construction, server monitoring, data center operation, and kitting. For the e-commerce market, the company provides monitoring and customer support services. After the merger of the three companies, Pole To Win Co., Ltd. integrated its sales division and promoted cross-selling of various services. In addition, MIRAIt Service Design co. ltd from the third quarter of the previous fiscal year and Ninjastars Inc. from the first quarter of the current fiscal year were newly consolidated, respectively. As a result, sales of Domestic Solutions totaled ¥6,396,725 thousand.

Overseas Solutions

In this service category, overseas subsidiaries provide services related to testing, localization, voice recording, customer support, product development support, and art production. Despite a decline in the utilization rate of staff residing in Russia and the incurrence of operational restructuring costs, orders for voice recording, localization, and customer support remained strong, and sales increased due to the yen's depreciation. As a result, sales of Overseas Solutions totaled ¥2,575,184 thousand.

Media Contents

In this service category, mainly through domestic subsidiaries, the Company provides services related to art production, game publishing, animation production, marketing support, and barrier-free subtitling and voice guidance production. QBIST Inc. received orders for art production for various games, and CREST Inc. promoted game publishing and animation production on consignment. As a result, sales of media content totaled ¥639,088 thousand.

- 2 -

  1. Analysis of Financial Position
    Total Assets
    Current assets increased by ¥893,483 thousand or 5.5% from the previous fiscal year-end, to ¥ 17,233,513 thousand. This was mainly due to a ¥755,907 thousand increase in notes and accounts receivable, trade and contract assets, and a ¥276,433 thousand increase in other (accounts receivable - other, etc.).
    Non-current assets increased by ¥70,984 thousand or 1.2% from the previous fiscal year-end, to ¥ 6,012,443 thousand. The key factor was, although goodwill decreased by ¥111,505 thousand, investments in securities increased ¥127,019 thousand.
    As a result, total assets increased by ¥964,467 thousand or 4.3% from the previous fiscal year-end, to ¥23,245,956 thousand.

Liabilities

Current liabilities increased by ¥1,179,538 thousand or 28.4% from the previous fiscal year-end, to ¥5,338,179 thousand. This was mainly due to increases of ¥525,354 thousand in accounts payable-other and ¥686,160 thousand in others (deposits received, etc.), despite a decrease of ¥194,832 thousand in income taxes payable.

Non-current liabilities increased by ¥7,587 thousand or 1.6% from the previous fiscal year-end, to ¥484,166 thousand. This was mainly due to increase of ¥16,635 thousand in deferred tax liabilities. As a result, total liabilities increased by ¥1,187,125 thousand or 25.6% from the end of the previous fiscal year-end, to ¥5,822,346 thousand.

Net assets

Net assets decreased by ¥222,658 thousand or 1.3% from the previous fiscal year-end, to ¥17,423,610 thousand. This was mainly because there was increase of 187,894 thousand in treasury stock and decrease of ¥104,036 thousand in retained earnings for profit attributable to owners of parent and dividend payment.

(3) Qualitative Information on Consolidated Earnings Forecasts

Both revenues and earnings were broadly on target in the period under review. In the second quarter, therefore, management expects to generally remain on target, and has therefore retained the consolidated earnings forecasts that it disclosed on March 14, 2022. Note, however, that the earnings forecasts are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due to various factors.

- 3 -

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Poletowin Pitcrew Holdings Inc. published this content on 22 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 June 2022 07:04:02 UTC.