Securities code: 3657

Abbreviation: Pole HD

March 15, 2021

Poletowin Pitcrew Holdings, Inc.

Supplementary Information to the Financial Results

for the Year Ended January 31, 2021

【Summary】

Net sales:

¥

26,729 million

Operating profit:

¥

3,217 million

Net profit:

¥

2,119 million

( 2.3% increase YoY) ( 8.9% decrease YoY) (18.6% increase YoY)

  • Net Sales: ¥6,804 million(3Q)→ ¥7,525 million(4Q), Operating profit: ¥954 million(3Q)→ ¥986 million(4Q). Achieved record high quarterly net sales and operating profit.
  • Net sales increased 6.6%, Operating profit increased 108.9% compared to the same period in the previous year.
  • Profit improvement was achieved due to increase in services related to EC, QR code settlement and recruitment efficiency.
  • Net sales increased 1.3%, Operating profit decreased 17.7% compared to the same period in the previous year.
  • Sales for third party verification in non games market and services toward overseas clients increased.
  • Received orders related to GIGA School Project as support servicer to provide IT enabled education environment at schools.
  • Posted deficit due to upfront investment in CREST Inc.

INDEX

1. Overview of Consolidated Financial Results for

the Fiscal Year Ended January 31, 2021

・・・・・・・・・・・・・・・・・・・・・・・ 2

2.

Consolidated Forecasts for the Year Ending January 31, 2022 ・・・・・・ 10

3.

Future Business Strategies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12

4.

Reference: Corporate Profile/Our Business

・・・・・・・・・・・・・・・・・・・・・ 14

1

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-1. Overview of Consolidated Financial Results for the Year Ended January 31, 2021 (Change YoY)

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

FY2021.1

FY2020.1

Change YoY

Fiscal Year Ended

Fiscal Year Ended

January 31, 2021

January 31,2020

Results

Margin

Results

Margin

Results

Margin

Net sales

26,729

- %

26,120

- %

+608

+2.3%

Operating profit

3,217

12.0%

3,531

13.5%

(313)

(8.9%)

Ordinary profit

3,595

13.5%

3,473

13.3%

+121

+3.5%

Profit attributable

2,119

+332

to owners of

7.9%

1,787

6.8%

+18.6%

parent

*Percentages rounded down to one decimal place

2

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-2. Overview of Consolidated Financial Results for the Year Ended January 31, 2021 (vs. Forecast)

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

FY2021.1

FY2021.1

Comparison

Results

Forecast

to Forecast

Results

Margin

Initial forecast

Margin

Change

Attainment

amount

rate

Net sales

26,729

- %

28,744

- %

(2,015)

93.0%

Operating profit

3,217

12.0%

3,587

12.5%

(369)

89.7%

Ordinary profit

3,595

13.5%

3,576

12.4%

+19

100.5%

Profit attributable

2,119

7.9%

2,341

(221)

90.6%

to owners of

8.1%

parent

*Percentages rounded down to one decimal place

3

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-3. Segment Overviews for the Year Ended January 31, 2021

Testing/Verification & Evaluation Business

Net Sales 20,129 million （75.3％ of net sales）

FY2021.1

FY2020.1

Change YoY

Change

Margin

Net sales

20,129

19,874

+254

+1.3%

Operating

2,647

3,216

(568)

(17.7%)

profit

Operating

13.2%

16.2%

(3.0%)

ー

margin

Units: ¥ million

(Amounts less than ¥1 million omitted)

Percentages rounded down to one decimal place

Internet Supporting Business Net Sales 6,441 million （24.1％ of net sales）

FY2021.1

FY2020.1

Change YoY

Change

Margin

Net sales

6,441

6,043

+398

+6.6%

Operating

611

292

+318

+108.9%

profit

Operating

9.5%

4.8%

+4.7%

ー

margin

Units: ¥ million

(Amounts less than ¥1 million omitted)

Percentages rounded down to one decimal place

4

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-4. Quarterly Net Sales and Operating Profit

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

■ Testing/Verification &

Quarterly sales

Evaluation Business

■ Internet Supporting Business

■ Others

8,000

7,276

7,525

7,000

6,348

6,441

1,561

6,332

6,804

6,053

6,067

1,780

6,000

1,483

1,562

1,605

1,516

1,538

1,435

5,000

5,715

4,000

5,678

5,170

4,796

4,831

4,742

4,500

3,000

4,569

2,000

1,000

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2020.1

FY2021.1

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

Quarterly operating profit

1,000

957

961

954

986

853

800 758

670

606

600

400

200

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2021.1

FY2020.1

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

5

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-5. Financial Position: Consolidated Balance Sheets

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

As of Jan. 31, 2021

As of Jan. 31, 2020

Change

Total current assets

17,102

14,705

+2,397

Cash and deposits

11,158

10,514

+644

Total property, plant and

694

718

(24)

equipment

Total intangible assets

940

908

+31

Investments and other assets

1,652

1,431

+221

Total non-current assets

3,286

3,058

+228

Total assets

20,389

17,763

+2,625

Total current liabilities

4,454

3,146

+1,307

Total non-current liabilities

260

296

(36)

Total liabilities

4,714

3,443

+1,271

Total net assets

15,675

14,320

+1,354

Capital stock

1,239

1,237

+1

Capital surplus

2,379

2,377

+1

Retained earnings

12,372

10,706

+1,665

Treasury shares

(167)

(169)

+1

Total liabilities and net assets

20,389

17,763

+2,625

6

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-6. Financial Position: Consolidated Statements of Cash Flows

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

FY2021.1

FY2020.1

Change

（2020.2-2021.1）

（2018.2-2020.1）

YoY

Operating cash flows

2,040

2,402

(361)

Investing cash flows

(963)

(850)

(113)

Financing cash flows

(468)

(416)

(52)

Effect of exchange rate changes on cash

35

32

+3

and cash equivalents

Net increase in cash and cash

644

1,168

(523)

equivalents

Cash and cash equivalents at beginning

10,514

9,345

+1,168

of year

Cash and cash equivalents at end of year

11,158

10,514

+644

7

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-7. 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, 2020.

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

8

1. Overview of Consolidated Financial Results for the Fiscal Year Ended January 31, 2021

1-8. Stock Information

  • Number of Shares Issued

As of January 31, 2020

38,120,800

As of January 31, 2021

38,156,000

  • Stock Distribution by Shareholder

■ Fiscal 2020 (As of January 31, 2020)

■ Fiscal2021 (As of January 31, 2021)

Treasury shares

Treasury shares

0.72％

0.71％

Foreign

Individuals and

Foreign

institutions, etc.

Individuals and

other

institutions, etc.

30.84％

other

43.27％

39.17％

3,367

4,471

40.28％

Other domestic

Shareholders

institutions

Shareholders

0.35％

Other domestic

■ Individuals and other

institutions

Financial

■ Financial institutions

0.69％

Financial

institutions

■ Financial instruments

institutions

23.53％

Financial instruments

Financial instruments

18.09％

brokerage companies

brokerage companies

■ Other domestic institutions

brokerage companies

1.06％

■ Foreign institutions, etc.

1.29％

Note: Both charts have been compiled based on the number of outstanding shares, with fractions rounded off ■ Treasury shares

9

2. Consolidated Forecasts for the Year Ending January 31, 2022

2-1. Consolidated Forecasts for the Year Ending January 31, 2022

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

FY2022.1

FY2021.1

YoY change

Forecasts

Results

Amount

%

Net sales

30,077

26,729

+3,347

+12.5%

Operating profit

3,452

3,217

+234

+7.3%

Ordinary profit

3,392

3,595

(203)

(5.7%)

Profit attributable to

2,123

2,119

+3

+0.2%

owners of parent

Net profit per share

￥55.66

￥55.99

(￥0.33)

ー

Cash dividends per share

￥14

￥13

￥+1

ー

Percentages rounded down to one decimal place

10

2. Consolidated Forecasts for the Year Ending January 31, 2022

2-2. Consolidated Fiscal Performance and Plan

Sales

Operating profit and net profit

Sales

Operating profit/Net profit

■

Operating profit

Units: ¥ million

Units: ¥ million

■

Net profit

(Amounts less than ¥1 million omitted)

(Amounts less than ¥1 million omitted)

Operating margin

30,000

30,077

Operating

margin (%)

3,531

3,452

16.0

3,500

26,729

26,217

3,217

3,162

25,000

23,763

14.0

3,000

22,266

12.0

20,000

2,500

2,250

2,119

2,123

10.0

15,000

2,000

1,839

1,787

8.0

1,500

10,000

1,099

6.0

1,000

4.0

5,000

500

2.0

0

0

0.0

FY2019.1

FY2018.1

FY2020.1

FY2021.1

FY2022.1(est.)

FY2018.1

FY2019.1

FY2020.1

FY2021.1

FY2022.1(est.)

Note: FY2022.1 estimates are forecasts disclosed on March 12, 2021.

11

3. Future Business Strategies

3-1. Future Business Strategy Approaches (1)

【Market Condition】

・Life styles have changed due to world wide Covid-19 impact

・Shopping thru internet, leisure thru game/movie/music distribution.

・Education and culture lessons also thru distribution. Educational material digitalized.

1

2

【Testing/Verification & Evaluation Business】

Promote order increase in detection (finding bugs), localization and game development support as game market revitalized as a result of number increase of people staying home. Also enhance third-party verification services in AI, MaaS, and xTech.

【Internet Supporting Business】

Promote order increase in fraud prevention service.

Ex.)Non-face-to face service: e-commerce,Non-contact service: cashless payment. Increase game market share in customer support, by enhancing collaboration with Testing/Verification & Evaluation Business.

【Corporate Structure】

To further enhance management efficiency and synergistic effects, integrate

3 administration and sales division of the Group's main business subsidiaries to headquarters. Also continue to acquire talent, enhance capital and business alliance and M&A.

12

3. Future Business Strategies

3-2. Future Business Strategy Approaches (2)

Service Property

Domestic BPO

Overseas BPO

Others

Segment

Internet

Supporting

Business

【

Game

Testing/Verification Business

Defect

Detection

Verification

&

Overseas

Business

Evaluation

Media&

Content

Other

Market Movement

Main Company

Non-face-to-face,Non-contact

LTDPITCREW CO.,

service increase. (Ex: e-commerce &

cashless payment)

Game market revitalized as more

Pole To Win Co.,

people staying home due to Covid-

Ltd.

19 and new hardware launch

Market expansion in

QaaS Co., Ltd.

AI, MaaS, & xTech

More people staying home due to

PTW International

Covid-19. New hardware launch.

Holdings Limited

Potential with population growth

Worldwide anime popularity and game

QBIST Inc.

development interlinked

colorful Inc

CREST Inc.

SDGs related barrier-free demand

Palabra Inc.

increasing

IMAid Inc.

13

4. Reference: Corporate Profile/Our Business

4-1. Corporate Profile

（ As of January 31, 2021 ）

Company Name

Poletowin Pitcrew Holdings, Inc.

Representatives

Tamiyoshi Tachibana, Chairman

Teppei Tachibana, President & CEO

Head Office

Shinjuku NS Building, 2-4-1,Nishi-Shinjuku,Shinjuku-ku, Tokyo, Japan

Date Established

February 2, 2009

Capital

¥1,239 Million (As of January 31, 2021)

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 29 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 staffing services, publishing/media businesses

Consolidated

Net Sales:

¥26,729 Million

No. of Employees on Consolidated Basis: 5,693

Financial Results

Ordinary Profit:

¥3,595 Million

(including 2,276 full-time employees as of January 31, 2021)

(Fiscal 2021)

Net Profit:

¥2,119 Million

14

3. Reference: Corporate Profile/Our Business

4-2. Group Composition

(As of January 31, 2021)

Poletowin Pitcrew Holdings, Inc.

Testing/Verification & Evaluation Business

Pole To Win Co., Ltd.

QaaS Co., Ltd.

CREST Inc.

QBIST Inc.

CREST JOB Inc.

colorful 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.

1518 Studios, Inc.

Internet Supporting BusinessOthers

PITCREW CO., LTD.Pacer CO., Ltd.

Daiichi Shorin Co., Ltd.

POLE TO WIN VIET NAM JOINT STOCK COMPANY

IMAid Inc.

Palabra Inc.

15

4. Reference: Corporate Profile/Our Business

4-3. Business Sites

◼Operating in 12 cities in Japan and 18 sites in 10 overseas countries

U.K.

South

3 sites >

Korea

Canada

2sites

<Montreal>

Romania

<>>

（As of January 31, 2021）

India

2 sites

Malaysia

>

China

U.S.

2 sites

4 sites

Sapporo

Vietnam

<Hanoi>

Niigata

Singapore

Kyoto

Sendai

<>>

Kitakyushu

Tokyo

Nagoya

Yokohama

Fukuoka

Kofu

OsakaGifu

16

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.

17

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Poletowin Pitcrew Holdings Inc. published this content on 13 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2021 07:32:02 UTC.