Securities code: 3657

Abbreviation: Pole HD

September 4, 2020

Poletowin Pitcrew Holdings, Inc.

Supplementary Information to the Financial Results

for the Six Months Ended July 31, 2020

【Summary】

Net sales:

¥12,399 million

( 0.0% decrease QoQ / -9.9% compared to forecast)

Operating profit:

¥1,276 million

(20.8% decrease QoQ / -17.9% compared to forecast)

Net profit:

¥903 million

( 5.3% decrease QoQ / -9.7% compared to forecast)

    • Net sales increased 4.7％ QoQ. Operating profit increased 96.4％ QoQ.
    • Profitability improved. Orders for EC and QR code settlement related services increased.
    • Net sales decreased 1.3％ QoQ. Operating profit decreased 25.2％ QoQ.
    • Third party verification service for non-games market and orders for overseas client increased.
    • A subsidiary, CREST Inc., released a game "ARIA CHRONICLE" on Steam.
    • Due to COVID-19, some business saw suspension or delay.
    • Due to changes in the accounting periods for two subsidiaries, the financial results reflects five months for these companies.
    • Please refer to (3) Qualitative Information on Consolidated Earnings Forecasts of Consolidated Financial Results for further information on impact of COVID-19.

INDEX

1. Overview of Consolidated Financial Results for the

Six Months Ended July 31, 2020

・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2

  1. Consolidated Forecasts for the Year Ending January 31, 2021 ・・・・・・・ 8
  2. Reference: Corporate Profile/Our Business ・・・・・・・・・・・・・・・・・・・・・ 12

1

1. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

1-1. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

Units: ¥ million (Amounts less than ¥1 million omitted)

FY2021.1

FY2020.1

Six Months Ended

Six Months Ended

Change QoQ

July 31, 2020

July 31, 2019

Results

Margin

Results

Margin

Results

Margin

Net sales

12,399

- %

12,402

- %

(2)

(0.0%)

Operating profit

1,276

10.3%

1,612

13.0%

(335)

(20.8%)

Ordinary profit

1,474

11.9%

1,542

12.4%

(67)

(4.4%)

Profit attributable

903

(50)

to owners of

7.3%

954

7.7%

(5.3%)

parent

*Percentages rounded down to one decimal place

2

1. Overview of Consolidated Financial Results for the Six months Ended July 31, 2019

1-2. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

Units: ¥ million (Amounts less than ¥1 million omitted)

Results

Forecasts

For the Six Months Ended

For the Six Months Ended

Results vs Forecasts

July 31, 2020

July 31, 2020

Results

Margin

Forecasts

Margin

Change

Progress

Net sales

12,399

- %

13,768

- %

(1,368)

90.1%

Operating

1,276

10.3%

1,554

11.3%

(278)

82.1%

income

Ordinary income

1,474

11.9%

1,560

11.3%

(86)

94.5%

Profit

903

7.3%

1,000

7.3%

(96)

attributable to

90.3%

owners of parent

*Percentages rounded down to one decimal place

3

1. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

1-3. Segment Overviews for the Six Months Ended July 31, 2020

Testing/Verification &

Net Sales ¥9,243 million (74.5% of net sales)

Evaluation Business

Units: ¥ million

FY2021.1

FY2020.1

Change YoY

(Amounts less than ¥1 million omitted)

2Q

2Q

*Percentages rounded down to one

Change

Margin

decimal place

Net sales

9,243

9,365

(122)

(1.3%)

Operating

1,090

1,459

(368)

(25.2%)

profit

Operating

11.8%

15.6%

(3.8%)

-

margin

Internet Supporting Business Net Sales ¥3,055 million (24.6% of net sales)

FY2021.1

FY2020.1

Change YoY

Units: ¥ million

(Amounts less than ¥1 million omitted)

2Q

2Q

*Percentages rounded down to one

Change

Margin

decimal place

Net sales

3,055

2,918

+136

+4.7%

Operating

227

116

+111

+96.4%

profit

Operating

7.5%

4.0%

+3.5%

-

margin

4

1. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

1-4. Quarterly Net Sales and Operating Profit

Units: ¥ million (Amounts less than ¥1 million omitted)

Units: ¥ million (Amounts less than ¥1 million omitted)

■ Testing/Verification & Quarterly Net Sales

Quarterly Operating Profit

Evaluation Business

■ Internet Monitoring Business

■ Others

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

7,276

1,000

6,348

6,441

1,561

6,332

900

6,053

6,067

1,483

1,562

800

1,538

1,516

1,435

700

5,678

600

4,831

500

4,796

4,742

4,500

4,569

400

300

200

100

0

1Q

2Q

3Q

4Q

1Q

2Q

FY2021.1

FY2020.1

957 961

853

758

670

606

1Q

2Q

3Q

4Q

1Q

2Q

FY2020.1

FY2021.1

Note: Quarterly net sales and operating profit are internal management figures provided as reference information

5

1. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

1-5. Financial Position: Consolidated Balance Sheets

Units: ¥ million (Amounts less than ¥1 million omitted)

As of July 31, 2020

As of Jan. 31, 2020

Change

Total current assets

15,641

14,705

+935

Cash and deposits

10,949

10,514

+434

Total property, plant and

709

718

(8)

equipment

Total intangible assets

951

908

+43

Investments and other assets

1,457

1,431

+26

Total non-current assets

3,118

3,058

+60

Total assets

18,759

17,763

+996

Total current liabilities

4,048

3,146

+901

Total non-current liabilities

249

296

(46)

Total liabilities

4,298

3,443

+855

Total net assets

14,461

14,320

+140

Capital stock

1,237

1,237

+0

Capital surplus

2,378

2,377

+0

Retained earnings

11,156

10,706

+449

Treasury shares

(167)

(169)

+1

Total liabilities and net assets

18,759

17,763

+996

6

1. Overview of Consolidated Financial Results for the Six Months Ended July 31, 2020

1-6. Financial Position: Consolidated Cash Flows

Units: ¥ million (Amounts less than ¥1 million omitted)

Six Months Ended

Six Months Ended

YoY Change

July 31, 2020

July 31, 2019

Net Cash provided by operating activities

823

1,005

(182)

Net cash used in investing activities

(402)

(237)

(164)

Net cash used in financing activities

38

(416)

+454

Effect of exchange rate change on cash and

(23)

(57)

+33

cash equivalents

Net increase in cash and cash equivalents

434

294

+140

Cash and cash equivalents at beginning of

10,514

9,345

+1,168

period

Cash and cash equivalents at end of period

10,949

9,640

+1,308

7

2. Consolidated Forecasts for the Year Ending January 31, 2021

2-1. Consolidated Forecasts for the Year Ending January 31, 2021

Units (except for per-share figures): ¥ million (Amounts less than ¥1 million omitted)

Fiscal 2021.1

Fiscal 2020.1

YoY change

Forecasts

Results

Amount

%

Net sales

28,744

26,120

+2,624

+10.0%

Operating profit

3,587

3,531

+56

+1.6%

Ordinary profit

3,576

3,473

+103

+2.9%

Profit attributable to

2,341

1,787

+554

+30.9%

owners of parent

Net profit per share

￥61.41

￥47.24

￥+14.17

ー

Cash dividends per share

￥13

￥12

￥+1

ー

Percentages rounded down to one decimal place

8

2. Consolidated Forecasts for the Year Ending January 31, 2021

2-2. Progress of Consolidated Forecasts for the Year Ending January 31, 2021

Units: ¥ million (Amounts less than ¥1 million omitted)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Results

For the Six

months Ended July 31, 2020

12,399

1,276

1,474

903

FY2021.1

Forecast Progress

28,744 43.1%

3,587 35.6%

3,576 41.2%

2,341 38.6%

Percentages rounded down to one decimal place

9

2. Consolidated Forecasts for the Year Ending January 31, 2021

2-3. Shareholder Returns (Forecast of Cash Dividends per Share)

Dividend policy

Target payout ratio of 25% to consolidated net profit

Yearly dividends per share

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Forecast

¥9.5/share

¥11/share

¥12/share

¥13/share

（Note） The Group conducted a two-for-one split of its common shares effective as of January 1, 2019.

For the dividend amount for fiscal year ended before January 31, 2018, the amount is displayed with retroactive adjustments made reflecting the two-for-one share split.

10

2. Consolidated Forecasts for the Year Ending January 31, 2021

2-4. Consolidated Fiscal Performance and Plan

Sales

Units: ¥ million (Amounts less

Operating profit and net profit

Sales

Operating/net profit

Units: ¥ million (Amounts less

than ¥1 million omitted)

Operating

than ¥1 million omitted)

margin

■

Operating profit

（％）

30,000

28,744 3,500

■

Net profit

3,531

3,587

16.0

26,217

Operating margin

3,162

14.0

25,000

23,763

3,000

22,266

12.0

20,000

19,633

2,500

2,409

2,250

2,341

2,000

1,839

1,787

10.0

15,000

8.0

1,500

10,000

1,168

1,099

6.0

1,000

4.0

5,000

500

2.0

0

0

0.0

FY2017.1

FY2018.1

FY2019.1

FY2020.1

FY2021.1(est.)

FY2017.1

FY2018.1

FY2019.1

FY2020.1

FY2021.1(est.) )

Note: FY2021.1 estimates are forecasts disclosed on March 12, 2020.

11

3. Reference: Corporate Profile/Our Business

3-1. Corporate Profile

（ As of July 31, 2020 ）

Company Name

Poletowin Pitcrew Holdings, Inc.

Representatives

Tamiyoshi Tachibana, Chairman

Teppei Tachibana, President & CEO

Head Office

11th Floor, Shinjuku NS Building, 2-4-1,Nishi-Shinjuku,Shinjuku-ku, Tokyo 163-0811, Japan

Date Established

February 2, 2009

Capital

¥1,237 Million (As of January 31, 2020)

Stock Exchange/

Tokyo Stock Exchange (First Section) (Securities Code: 3657 Abbreviation: Pole HD)

Securities Code

Business

Description

Operations ancillary and pertaining to the control and management of business activities of the Company and the entire Group encompassed 28 consolidated subsidiaries.

Major Group businesses

1. Testing/Verification & Evaluation Business

Detecting defects (finding bugs) in support of enhancing the quality of software and hardware

  1. Internet Supporting Business
    Detecting fraud and illegal or harmful information on the Internet to help websites operate soundly
  2. Others
    Including medical related service, publishing and media businesses

Consolidated

Net Sales:

¥26,120 Million

No. of Employees on Consolidated Basis: 4,708

Financial Results

Ordinary Profit: ¥

3,473 Million

(including 1,813 full-time employees as of January 31, 2020)

(Fiscal 2020)

Net profit:

¥

1,787 Million

12

3. Reference: Corporate Profile/Our Business

3-2. Group Composition

(As of July 31, 2020)

Poletowin Pitcrew Holdings, Inc.

Testing/Verification & Evaluation Business

Pole To Win Co., Ltd.

QaaS Co., Ltd.

QBIST Inc.

CREST Inc.

CREST JOB Inc. CREST company Inc

PTW International Holdings Limited

PTW Japan Co., Ltd.

ENTALIZE CO., LTD.

CrossFunction Co., Ltd.

PTW Shanghai Co., Ltd.

PTW America, Inc.

PTW International UK Limited

PTWI India Private Limited

PTW (Singapore) Pte. Ltd.

PTW Korea Co., Ltd.

Side UK Limited

PTW Romania SRL.

PTW International (Malaysia) Sdn. Bhd.

SIDE LA, LLC

PTW Canada Solutions, Inc.

Internet Supporting Business

PITCREW CO., LTD.

PITCREW COREOPS CO., LTD.

POLE TO WIN VIET NAM JOINT STOCK COMPANY

Others

Pacer CO., Ltd.

Daiichi Shorin Co., Ltd.

IMAid Inc.

Palabra Inc.

13

3. Reference: Corporate Profile/Our Business

3-3. Business Sites

◼Operating in 12 cities in Japan and 17 sites in 10 overseas countries

U.K.

South

3 sites >

Korea

Canada

2 sites

<Montreal>

Romania

<>>

（As of July 31, 2020）

India

2 sites

Malaysia

>

China

U.S.

2 sites

3 sites

Sapporo

Vietnam

<Hanoi>

Niigata

Singapore

Kyoto

Sendai

<>>

Kitakyushu

Tokyo

Nagoya

Yokohama

Fukuoka

Kofu

OsakaGifu

14

Forward-looking Statements

  • The information on this website includes forward-looking statements. These forward-looking statements do not guarantee our future financial results, but involve risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements.
  • Risks and uncertainties include general and industry market conditions, and general domestic and international economic conditions such as interest rate and foreign exchange fluctuations.
  • Poletowin Pitcrew Holdings, Inc., bears no obligation to update and revise the forward-looking statements disclosed herein, even in the event of new information, future events and other material incidents arising.

15

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Poletowin Pitcrew Holdings Inc. published this content on 16 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2020 07:04:05 UTC