Slide 1: Consolidated Financial Results of the Fiscal Year Ended March 31, 2025
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. From April 1, 2024 to March 31, 2025 Consolidated Financial Results of the Fiscal Ye
Slide 2: Company Profile
Company Profile For Internet Convenience, Domestic 13.65 million High software Safety and Security active users profitability *1 developer Company Name Digital Arts Inc. Date of Tokyo Stock Exchange Prime Market June 1995 Stock Market Establishment (Securities Code: 2326) Listed on September 2002 Nu
Slide 3: Product Lineup
Product Lineup Web Security Mail Security Enabling users to securely connect to websites Enabling users to securely send and receive email without security concerns without security concerns Option Option Endpoint Secure proxy Malicious website-filtering Measures to provide pop-ups for email misdeli
Slide 4: Product Price
Product Price GIGA School Reference Price (monthly): 250 yen Reference Price (monthly): 1,000 yen*1 Reference Price (monthly): 500 yen Reference Price (monthly): 150 yen (for purchases of 500 licenses) (for purchases of 10 licenses) GIGA School Reference Price (monthly): 250 yen Reference Price (mon
Slide 5: Key Points
Key Points Contracts achieved double-digit growth and exceeded the initial plan following sales growth in the enterprise sector market and healthy orders received for projects for the second phase of GIGA School Concept. Net sales grew, driven by growth in the enterprise sector market. Operating pro
Slide 6: INDEX
01. Consolidated Results Highlights 02. Non-consolidated Results Highlights 03. Net Sales by Market 04. Results of Measures for the Fiscal Year Ended March 31, 2025 INDEX 05. FY03/26 Initiatives 06. Full-Year Financial Forecast for the Fiscal Year Ending March 31, 2026 07. Return to Shareholders for
Slide 7: 01. Consolidated Results Highlights
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 01. Consolidated Results Highlights Copyright © Digital Arts Inc.
Slide 8: Consolidated Results Highlights
Consolidated Results Highlights The Group achieved growth by capturing the demand for cloud security 10,570 Enterprise measures related to both Internet and email and the demand for continuing sector market on-premises measures and by successfully cross-selling and upselling new million yen products
Slide 9: Consolidated Statement of Income
Consolidated Statement of Income Contracts increased more than 20%, surpassing initial projections. This was due to strong performance both in the enterprise sector market and in the public sector market. Net sales increased approximately 7% due to an increase in the cloud service product sales shar
Slide 10: Trend in Consolidated Contracts
Trend in Consolidated Contracts Consolidated contracts climbed 22.3% year on year to 10,570million yen, reflecting the growth of cloud service products. Trend in Consolidated Contracts (Millions of Yen) Cloud sales products License sales products/ Others Cloud sales products DAC Sales of cloud-bas
Slide 11: Trend in Order Backlog
Trend in Order Backlog Order backlog increased steadily after GIGA School Concept, Next-General School Affairs DX and other projects were received. Trend in Order backlog (Millions of Yen) Sales from the fiscal year after next Sales from the fiscal year after next (GIGA) Sales from the fiscal year a
Slide 12: Change in Consolidated Net Sales
Change in Consolidated Net Sales Consolidated net sales grew 7.2% year on year, to 9,982 million yen. （Excluding DAC） Change in Consolidated Net Sales (Millions of Yen) Cloud sales products License sales products/Others Cloud service products DAC Sales were up due to progress in the posting of sal
Slide 13: Method of recording sales by product
Supplement Method of recording sales by product License sales products Cloud service products Contract period (n months)＋1 month Contract period (n months) Amount equivalent to Equivalent to maintenance maintenance fee is prorated Order over contract period "n" fee backlog prorated over contract Con
Slide 14: Relationship between contract amount and sales (one-year contracts)
Relationship between contract amount and sales Supplement by product (one-year contracts) For example, the diagrams on the left show the relationships between the contract amount and net sales in license sales products and cloud service products with a one-year contract at the amount of 600 million
Slide 15: Relationship between contract amount and sales (multi-year contracts)
Relationship between contract amount and sales Supplement by product (multi-year contracts) Many projects in the public sector market are multi-year contracts, such as five-year ones. They have longer periods until renewal. For example, the diagrams on the left show the relationships between the con
Slide 16: Trend in Consolidated Net sales, Operating profit
Trend in Consolidated Net sales, Operating profit (Millions of Yen) 1Q 2Q 3Q 4Q DAC 11,512 652 10,436 384 9,982 2,537 9,051 2,393 287 2,707 535 2,078 357 6,825 2,223 218 249 2,216 2,436 1,855 556 1,884 4,427 4,558 225 4,126 381 4,413 241 2,466 1,423 2,316 1,185 1,304 1,413 2,977 1,101 2,603 2,390 17
Slide 17: Consolidated Cost of Sales and SG&A Expenses
Consolidated Cost of Sales and Selling, General and Administrative Expenses While the consolidated cost of sales and DAC’s personnel expenses due to the exclusion of DAC from consolidated decreased because of communication expenses increased at the data center due to the higher-than-planned growth o
Slide 18: Quarterly Trend in Consolidated Cost of Sales
Quarterly Trend in Consolidated Cost of Sales Labor Depresiation Communication expenses Others Cost of Sales Transfar to other accounts 1,527 (Millions of Yen) 1,450 1,340 250 1,204 1,235 1,248 332 270 400 231 1,102 229 351 1,084 239 221 244 220 302 1,027 962 989 984 968 946 921 247 201 220 345 356
Slide 19: Quarterly Trend in Consolidated SG&A Expenses
Quarterly Trend in Consolidated Selling, General and Administrative Expenses Personnel expenses Advertising expenses Others (Millions of Yen) 660 669 648 646 633 609 609 597 608 597 574 578 574 558 169 526 215 248 487 238 244 229 214 224 191 232 223 59 204 216 219 193 159 66 80 106 59 78 92 60 77 86
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Non-current assets increased after posting products for sale, independently-developed internal DX tools and other assets. The equity ratio was up 5.6 percentage points from the end of the previous fiscal year, to 76.6%. (Millions of Yen) As of end of As of end of Change fr
Slide 21: Difference from Initial Plan
Difference from Initial Plan Contracts ended higher than initially planned. The business environment has been evaluated to have been very favorable. Net sales were lower than initially planned. This is explained by a delay in the posting of sales in the accounting process due to a higher percentage
Slide 22: 02. Non-consolidated Results Highlights
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 02. Non-consolidated Results Highlights Copyright © Digital Arts Inc.
Slide 23: Summary of Non-consolidated Results
Summary of Non-consolidated Results Contracts increased more than 20%, surpassing initial projections. This was due to strong performance both in the enterprise sector market and in the public sector market. Net sales increased approximately 7% due to an increase in the cloud service product sales s
Slide 24: 03. Net Sales by Market
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 03. Net Sales by Market Copyright © Digital Arts Inc.
Slide 25: Consolidated Contract Amount by Market
Consolidated Contract Amount by Market Consolidated contracts grew by double digits in both the enterprise sector market and the public sector market. (Excluding DAC) Trend in Consolidated Contract Amount by Market (Millions of Yen) Enterprise Public Consumer DAC Enterprise sector market 10,570 Th
Slide 26: Consolidated Net Sales by Market
Consolidated Net Sales by Market Sales grew at a double-digit rate in the enterprise sector market, whereas they were up slightly in the public sector market as a result of the increase in the percentage of contracts that were for cloud service products vs. the plan. (Excluding DAC) Trend in Consoli
Slide 27: Trend in Consolidated Net Sales by Market
Trend in Consolidated Net Sales by Market Net sales for the full year reached a record high. (Excluding DAC) (Millions of Yen) Enterprise Public Consumer DAC 11,512 10,436 [9,315] 9,051 [8,994] [8,009] 2,196 9,982 1,441 409 Consumer 418 433 1,042 6,825 444 [6,079] 4,788 Public 4,637 5,841 5,641 745
Slide 28: Quarterly Trend in Consolidated Net Sales by Market
Quarterly Trend in Consolidated Net Sales by Market Net sales for the 4Q reached a record high. (Excluding DAC) (Millions of Yen) Enterprise Public Consumer DAC 652 556 101 Consumer 384 108 241 381 535 105 357 106 105 115 105 452 287 318 118 103 101 93 248 116 105 106 1,232 Public 218 109 98 1,215 1
Slide 29: Net Sales in Market by Product: Enterprise
Enterprise sector market Net Sales in Market by Product Net sales grew enormously as a result of the capturing of demand for cloud security measures and for continued on-premises measures and the strong sales of the new f-FILTER product and the optional Anti-Virus & Sandbox product. (Excluding DAC)
Slide 30: Net Sales Market by Product: Public
Public sector market Net Sales Market by Product While the contract amount increased significantly (+36.9%) due to the acquisition of projects for the Phase 2 of the GIGA School Concept and Security Improvements for Next- Generation School Affairs programs (see page 25), Net sales increased slightly
Slide 31: Net Sales Market by Product: Consumer
Consumer sector market Net Sales Market by Product In the consumer sector market, sales of filtering measures for mobile devices slowed following the end of demand for such measures. The Group will increase its efforts to sell these solutions to expand its target customers and tap into new demand. T
Slide 32: 04. Results of Measures for the Fiscal Year Ended March 31, 2025
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 04. Results of Measures for the Fiscal Year Ended March 31, 2025 Copyright © Digital Arts Inc.
Slide 33: Market shares of i-FILTER and m-FILTER
Market shares of i-FILTER and m-FILTER in the enterprise sector and public sector markets Market shares of i-FILTER in the enterprise sector Market shares of m-FILTER in the enterprise sector and public sector markets and public sector markets According to the ITR Market Review: Cyber Security Solut
Slide 34: What is our mainstay solutions White Operation?
Reference: What is our mainstay solutions “White Operation” ? White operations use a whitelist method that permits users to connect only to websites and email messages that have been verified as secure in advance. It protects ICT environments from known and unknown threats irrespective of the comput
Slide 35: Product Releases: Take measures for AI security
Product Releases: Take measures for AI security Released in December 2024 Strengthen generative AI security using i-FILTER A function that visualizes the state of use of generative AI Word-by-word filtering control Solving data leaks and A function that allows users to allow only other issues connec
Slide 36: Product Releases: Functions Upgrade [f-FILTER]
Product Releases: Functions Upgrade [f-FILTER] Released in July 2024 Large-size storage / file storage period adjustment functions Examples of requests for f-FILTER Enhancement o f f eatures We hope that f-FILTER will support The uploadable file size is increased to 20 GB and an option large files o
Slide 37: Product Releases: Functions Upgrade [StartIn]
Product Releases: Functions Upgrade [StartIn] Released in March 2025 A solution has been released that resolves the cumbersomeness of ID management and authentication connected to coexisting on-premises and cloud systems. Cloud service (SAML) NEW A single sign on is available for all online services
Slide 38: Toughening of Security for Local Government: Compliance with New Guidelines
Toughening of Security for Local Government: Compliance with New Guidelines The α model is a commonly used security solution characterized by three-layer isolation. It is used for Local Governments' networks and personal computers and other business devices connected to them. Because of its emphasis
Slide 39: Digital Arts' Solutions: Status of ISMAP Registration
Digital Arts' Solutions: Status of ISMAP Registration *1 Registration of all of the cloud products for public institution with ISMAP was *1 completed in March 2025. Web Security Mail Security Registered in For Microsoft365 March 2025 software File Encryption/ Data Protection/ Single Sign On (SSO) Re
Slide 40: Product Releases: New Function for GIGA School Concept
Product Releases: New Function for GIGA School Concept Released in April 2024 Visualizing what websites schoolchildren and students view and how often CASE 1 CASE 2 CASE 3 CASE 4 Number of those Terminal use ratio Duration of use by Ranking of time using terminals in by school online service slots i
Slide 41: 05. FY03/26 Initiatives
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 05. FY03/26 Initiatives Copyright © Digital Arts Inc.
Slide 42: Entire Security Market
Product Strategy and Sales Strategy Entire Security Market Following a recent increase in the number of security incidents, the security market is growing faster than when the Medium-Term Management Plan (From FY March 2025 to FY March 2027) was being formulated. The need for security measures is ex
Slide 43: Product Strategy
Product Strategy and Sakes Strategy Product Strategy The Group will enhance its solutions in promising areas where the market is growing at a high rate and where the Group's advantages can be used, and it will carry out research and development in investment areas for the future expansion of its bus
Slide 44: Implementation of Sales Strategies for Different Sizes of Corporation
Product Strategy Implementation of Sales Strategies for Different Sizes of Corporation and Sakes Strategy Plans to release new products that can achieve zero trust security and implement comprehensive security proposals for large, medium, and small and medium companies Number of employees by company
Slide 45: Focus on Target Industries
Product Strategy and Sakes Strategy Focus on Target Industries We will conduct intensive sales and marketing activities targeting industries determined in view of conformity to industry guidelines not only company size, the trends in orders gained, compliance with ISMS standards and others. Conformi
Slide 46: Phase 2 of the GIGA School Concept
Phase 2 of the GIGA School Concept IncreaseinPublic SectorMarketShare Implementation of the second phase of GIGA School Concept began in 2024 (FY March 2025). [ GIGA School Concept operated by the Ministry of Education, Culture, Sports, Science and Technology ] 2019 2020 2021 2022 2023 2024 2025 202
Slide 47: Timing of the Replacement of Devices
IncreaseinPublic Phase 2 of the GIGA School Concept - Timing of the Replacement of Devices - SectorMarketShare When replacing GIGA devices in FY March 2025, one board of education considered the joint procurement of devices for a long time and another postponed their replacement to FY March 2026. It
Slide 48: Next-Generation School Affairs DX
IncreaseinPublic SectorMarketShare Next-Generation School Affairs DX The Ministry of Education, Culture, Sports, Science and Technology calls for the following implementation as the direction of the Next-Generation School affairs DX: *As a regional fiscal measure, financial support of 180.5 billion
Slide 49: Initiative for Next-Generation School Affairs DX
IncreaseinPublic SectorMarketShare Initiative for Next-Generation School Affairs DX New product releases will further expand the range of areas supported by our products. Overview diagram of security measures in school affairs DX Security support map with our products ＝Scope of supports Internet pub
Slide 50: Schedule for Development of Next-Generation School Affairs DX
IncreaseinPublic Schedule for Development of Next-Generation School Affairs DX SectorMarketShare Product procurement in FY March 2026 will be at the same level as in the previous fiscal year with a view toward beginning the operation of the school affairs support system. [School Affairs DX developme
Slide 51: 06. Full-Year Financial Forecast for the Fiscal Year Ending March 31, 2026
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 06. Full-Year Financial Forecast for the Fiscal Year Ending March 31, 2026 Copyright © Digital Arts Inc.
Slide 52: Full-Year Financial Forecast FY March 2026 (Consolidated)
Full-Year Financial Forecast for the Fiscal Year Ending March 31, 2026 (Consolidated) We will carry out product and sales strategies in the enterprise sector market and maximize our market share and the amount of orders received in the public sector market to achieve the growth of net sales, operati
Slide 53: Full-Year Financial Forecast FY March 2026 (Non-Consolidated)
Full-Year Financial Forecast for the Fiscal Year Ending March 31, 2026 (Non-Consolidated) We will carry out product and sales strategies in the enterprise sector market and maximize our market share and the amount of orders received in the public sector market to achieve the growth of net sales, ope
Slide 54: Status of Consolidated Net Sales
Status of Consolidated Net Sales Consolidated net sales are forecast as follows: Net sales for the current fiscal year Status of Consolidated Net Sales (Millions of Yen) For the current fiscal year, contracts are projected at 25,000 16,475 million yen. Our future actions aimed at reaching this lev
Slide 55: Status of Consolidated Contracts by Market
Status of Consolidated Contracts by Market Consolidated contracts by market are forecast as follows: Trend in Consolidated Contracts by Market Enterprise Public Consumer (Millions of Yen) Enterprise sector market Contracts are expected to grow, reflecting the expansion of White 16,475 Operation th
Slide 56: Status of Consolidated Net Sales by Market
Status of Consolidated Net Sales by Market Consolidated net sales by market are forecast as follows: Trend in Consolidated Net Sales by Market (Millions of Yen) Enterprise sector market Enterprise Public Consumer Net sales are expected to grow, reflecting the expansion of White 12,550 Operation th
Slide 57: Consolidated Cost of Sales and SG&A Expenses
Consolidated Cost of Sales and Selling, General and Administrative Expenses Regarding cost of sales, depreciation is projected to increase, mainly due to investment in development personnel and product enhancement. Selling, general and administrative expenses are expected to rise mainly due to the i
Slide 58: Status of Consolidated Cost of Sales
Status of Consolidated Cost of Sales Depreciation is expected to increase due to investments in personnel for the development of new products and new functions and the development and improvement of software. Communication expenses are forecast to increase slightly after implementation of fundamenta
Slide 59: Status of Consolidated SG&A Expenses
Status of Consolidated Selling, General and Administrative Expenses Personnel expenses and hiring expenses are expected to increase for increasing investment in personnel, which is a priority area in the Medium-Term Management Plan. Status of Consolidated Selling, General and Administrative Expenses
Slide 60: Plan for Progress against the Full-Year Consolidated Financial Forecast
Plan for Progress against the Full-Year Consolidated Financial Forecast The plan envisions progress in contracts to be made mainly in the second half due to the concentration of orders for projects for the second phase of GIGA School Concept and other orders in the second half. The plan foresees tha
Slide 61: 07. Return to Shareholders for the Fiscal Year Ending March 31, 2026
Consolidated Financial Results of the Fiscal Year Ended March 31, 2025 07. Return to Shareholders for the Fiscal Year Ending March 31, 2026 Copyright © Digital Arts Inc.
Slide 62: Return to Shareholders for the Fiscal Year Ending Mar. 2026
Return to Shareholders for the Fiscal Year Ending Mar. 2026 Starting FY March 2026, we will change our shareholder return policy as follows to strengthen our stance on returning profit to shareholders. Under the new policy, we plan shareholder returns for the fiscal year ending March 31, 2026 as fol
Slide 63: Notes on Descriptions
Notes on Descriptions Among the descriptions of plans, strategies and financial forecasts in this presentation material, those that are not historical facts are forward-looking statements. They reflect judgments made by the management of Digital Arts Inc. based on information currently available
Slide 64: For internet convenience, safety and security
- For internet convenience, safety and security -