Digital Hearts Holdings Co., Ltd. · TSE:3676

Digital Hearts — Q1 FY2026 Earnings Presentation

37 slides from Digital Hearts's earnings presentation, Aug 6, 2026

Slide 1: Presentation Material for the Three Months Ended June 30, 2026
Presentation Material for the Three Months Ended June 30, 2026 August 6, 2026 Tokyo Stock Exchange Prime Market: Code 3676 https://www.digitalhearts-hd.com/ Copyright© 2026 DIGITAL HEARTS HOLDINGS Co., Ltd. All Rights Reserved.
Slide 2: Executive Summary
Executive Summary 【Notice regarding Earnings by Segment】・ Net sales by segment include inter‐segment sales or transfers. Segment income is based on operating income. ・ Segment classification was changed from Q1 FY2026. For this reason, the figures for FY2025 by segment are reclassified to reflect t
Slide 3: Executive Summary for Q1 FY2026
Executive Summary for Q1 FY2026 DH Group Business led overall consolidated revenue growth, supported by continued strong performance in Domestic debugging and M&A effects. AGEST Group Business has accelerated its efforts developing new AI security services. Net sales Operating income Profit attribut
Slide 4: Business Topics
Business Topics DH Group Business AGEST Group Business Started joint development of an To acquire the game debugging autonomous AI cybersecurity business from IMAGICA GEEQ Inc. platform with US-based Lazarus Enterprises, Inc. Key features of IMAGICA GEEQ Inc.’s Scope of the joint development game de
Slide 5: Summary of Results by Segment - DH Group Biz
Summary of Results by Segment - DH Group Biz With Domestic debugging continuing to perform strongly and steady growth achieved in Global and others, double-digit revenue growth and profit growth were achieved. ■DH Group Business results 【sales by service】（JPY mn） Net sales Segment income Segment in
Slide 6: Summary of Results by Segment - AGEST Group Biz
Summary of Results by Segment - AGEST Group Biz Revenue and profitability declined due to the end of a large ERP project and reduced system development projects amid industry changes. To return to growth, we are building a new business model independent of engineer headcount. ■AGEST Group Business r
Slide 7: Regarding the Tender Offer for the DIGITAL HEARTS HOLDINGS Co., Ltd.’s Common Shares
Regarding the Tender Offer for the DIGITAL HEARTS HOLDINGS Co., Ltd.’s Common Shares Sandbox K.K. commenced a tender offer for the DIGITAL HEARTS HOLDINGS Co., Ltd.’s common shares as part of a management buyout (MBO). At the Board of Directors meeting held on August 6, 2026 we resolved to express t
Slide 9: Summary of Financial Results for Q1 FY2026
Summary of Financial Results for Q1 FY2026  Consolidated net sales increased, supported by strong Domestic debugging revenue and additional M&A effects.  Consolidated operating income, ordinary income, and net income decreased, partly due to lower profitability with the weaker sales in AGEST Group
Slide 10: Trend in Net Sales and Operating Income
Trend in Net Sales and Operating Income Despite AGEST Group performing slightly below expectations, strong growth in DH Group drove revenue and profit to progress broadly in line with the Company's plan. Operating Net sales (JPY mn) income Q4 (JPY mn) 50,000 1 8,000 Q3 Q2 45,000 7,200 0.9 Q1 41,080
Slide 11: Consolidated Balance Sheets
Consolidated Balance Sheets Q4 FY2025 Q1 FY2026 Change from (JPY mn) (As of March 31, 2026) (As of June 30, 2026) Q4 FY2025 Total assets 21,531 21,351 -180 Current assets 14,031 13,888 -142 Cash and deposits 7,132 6,544 -587 Noncurrent assets 7,500 7,463 -37 Property, plant and equipment 1,620 1,562
Slide 12: Financial Results Q1 FY2026 by Segment and Full-Year Consolidated Financial Forecasts
Financial Results Q1 FY2026 by Segment and Full-Year Consolidated Financial Forecasts 【Notice regarding Earnings by Segment】・ Net sales by segment include inter‐segment sales or transfers. Segment income is based on operating income. ・ Segment classification was changed from Q1 FY2026. For this rea
Slide 13: Summary of Financial Results by Segment
Summary of Financial Results by Segment （JPY mn） Q1 FY2025 Q1 FY2026 YoY change Net sales 9,380 9,847 +5.0% DH Group 5,512 6,180 +12.1% AGEST Group 3,917 3,690 -5.8% CVC Related －－－ Adjustments -49 -23 － Operating income 707 624 -11.7% DH Group 640 688 +7.4% AGEST Group 67 -60 － CVC Related － -2 －
Slide 14: Financial Result of DH Group Business
Financial Result of DH Group Business  Secured Domestic debugging sales at the same level as the strong FY2025, by steadily winning project orders such new titles for Nintendo Switch 2.  In Global and others, achieved a significant revenue increase to approximately 1.4x YoY, supported in part by t
Slide 15: Analysis of Changes in EBITDA - DH Group Biz
Analysis of Changes in EBITDA - DH Group Biz EBITDA increased significantly by +12.0% YoY, supported by higher sales in existing businesses such as Domestic debugging and translation/LQA, improved gross margin ratio, and contributions from the newly added North American subsidiary. (JPY mn) ・Increas
Slide 16: DH Group Business Performance Trends
DH Group Business Performance Trends Start of performance contribution DH Group Business from HUWIZ SOLUTIONS INC., which became a consolidated （JPY mn） Net sales Gross margin subsidiary on 20 November 2025 SG&A Gross margin ratio 8,000 6,180 30.0% 5,808 6,065 5,744 5,512 6,000 28.1% 27.4% 26.4% 4,0
Slide 17: DH Group Business - Domestic debugging division
DH Group Business - Domestic debugging division  By steadily capturing strong demand driven by the launch of Nintendo Switch 2, we maintained revenue at the same level as the strong FY2025.  With improved tester utilization rate and order unit prices, the gross margin ratio reached a high level of
Slide 18: DH Group Business - Global and others division
DH Group Business - Global and others division  Global and others achieved a significant sales increase of approximately 1.4x YoY, by steadily securing new projects in the focus area of translation/LQA, and with performance contributions from North American HUWIZ SOLUTIONS INC., which became a subs
Slide 19: Financial Result of AGEST Group Business
Financial Result of AGEST Group Business  System testing sales remained stable at FY2025 levels. QA solution revenue declined, reflecting the completion of a large ERP project and reduced system development demand amid accelerating AI adoption.  Revenue in IT services and others increased as secur
Slide 20: Analysis of Changes in EBITDA - AGEST Group Biz
Analysis of Changes in EBITDA - AGEST Group Biz EBITDA fell below the prior-year level, largely impacted by the decline in the gross margin ratio accompanying the revenue decrease in QA solution. (JPY mn) ・Lower engineer utilization rate due to the revenue decrease ・Impact of new service development
Slide 21: AGEST Group Business Performance Trends
AGEST Group Business AGEST Group Business Performance Trends （JPY mn） Net sales Gross margin SG&A Gross margin ratio 6,000 27.7% 30.0% 26.2% 3,987 4,159 3,690 25.0% 3,917 3,929 4,000 26.0% 23.5% 23.4% 20.0% 2,000 1,018 1,105 1,030 887 979 1,025 15.0% 950 888 863 924 0 10.0% Q1 Q2 Q3 Q4 Q1 FY2025 FY2
Slide 22: AGEST Group Business - QA solution division
AGEST Group Business - QA solution division  While system testing sales remained stable at FY2025 levels, revenue decreased mainly due to the completion of a large ERP project and system development projects due to the broader adoption of AI.  The gross margin ratio temporarily declined due to low
Slide 23: AGEST Group Business - IT services and others division
AGEST Group Business - IT services and others division  Continued the strategic reduction of certain low-profit services, such as maintenance and operation support.  Security monitoring services, which had been affected by endpoint security device price hikes from a certain vendor, returned to gro
Slide 24: CVC Related Business
CVC Related Business  As rapid advances in AI are significantly transforming industry structures and business models, we established a new CVC (Corporate Venture Capital) division to accelerate investments in companies from which we can expect to acquire technologies, ideas, business models, and in
Slide 25: Consolidated Financial Forecast for FY2026
Consolidated Financial Forecast for FY2026 *Re-posted from the “Presentation Material for the Fiscal Year Ended March 31, 2026” disclosed May 13, 2026, after excerption  Aim for record-high consolidated net sales, with AGEST Group maintaining sales at the same level as FY2025 while shifting its bus
Slide 26: Businesses Forecast for FY2026
Businesses Forecast for FY2026 *Re-posted from the “Presentation Material for the Fiscal Year Ended March 31, 2026” disclosed May 13, 2026, after excerption Focusing on building a businesses foundation that wins in AI era. DH Group Business AGEST Group Business Delivering ‘Entertainment quality’ Evo
Slide 28: Corporate Profile
Corporate Profile Our mission SAVE the DIGITAL WORLD Growth of Growth of Expansion Expansion Market environment console game mobile game of IoT/DX of AI market market Maximizing the growth-potential of both businesses Shifted to a holding company structure and Transferred from TSE listed on TSE 1st
Slide 29: Business Segments
Business Segments Our core business: Debugging and QA(Quality Assurance) DH Group Business Domestic  Debugging for console games, mobile 38.6％ debugging games, etc. Domestic QA debugging solution  Translation, LQA*, and localization for game software Global and  Marketing support for game launchi
Slide 30: Group Companies
Group Companies (Holding Company) (As of June 30, 2026) DH Group Business AGEST Group Business DIGITAL HEARTS Co., Ltd. AGEST, Inc. Game debugging for Japanese game makers, System testing, Cyber-security, etc. Localization, etc. DIGITAL HEARTS CROSS Group AGEST Vietnam Co., Ltd. Marketing support, e
Slide 31: Main Business Locations
Main Business Locations (As of June 30, 2026) China DIGITAL HEARTS CROSS Group DIGITAL HEARTS (Shanghai) Co., Ltd. South Korea Canada DIGITAL HEARTS Seoul Co., Ltd. HUWIZ SOLUTIONS INC. Japan UK DIGITAL HEARTS Co., Ltd. DEVELOPING WORLD SYSTEMS LIMITED USA AGEST, Inc. GPC K.K LOGIGEAR CORPORATION DI
Slide 32: Consolidated Financial Statement
Consolidated Financial Statement FY2023 FY2023 (JPY mn) FY2018 FY2019 FY2020 FY2021 FY2022 FY2024 FY2025 (Former*) (Current*) Net sales 19,254 21,138 22,669 29,178 36,517 38,790 38,790 39,748 38,928 DH Group Business (Former Entertainment Business) 15,951 16,115 15,647 17,687 19,815 19,180 23,488 23
Slide 33: Business Risks
Business Risks Major risks Countermeasures - Prohibiting staff members from bringing personal items into the test room Leakage of confidential 1. information - Physical security measures including access control with fingerprint authentication and the installation of security cameras - Introduction
Slide 34: Business foundation supporting growth strategy
Business foundation supporting growth strategy (As of June 30, 2026) Board of Directors Audit and Supervisory Committee Consists of members from diverse backgrounds, Composed of members with extensive management including founder, corporate management experiences experience and specialized expertise
Slide 35: Our Major Initiatives and Sustainable Development Goals (SDGs)
(Ref.) Our Aims for Sustainable Value Creation Our Major Initiatives and Sustainable Development Goals (SDGs) Human resource To resolve the shortage of IT human resource ・Internal support system for obtaining software test certification of “ISTQB”. ・Provides world-class test engineer training progra
Slide 36: Glossary
Glossary Terms Definition This is a term used in our Enterprise Business and the same meaning of software testing. System testing System Testing comprises detection of system bugs for enterprise resource planning (ERP) software, websites, business apps, etc. This is a term used in our Entertainment
Slide 37: Contact
＜Contact＞ Investor and Public Relations Division Phone：+81‐3‐3373‐0081 Email：ir_info@digitalhearts.com HP：https://www.digitalhearts-hd.com/en/ This presentation has been developed strictly for the purposes of investor relations activities and does not in any way attempt to influence or facilitate in

Digital Hearts Holdings — Q1 FY2026 Earnings Presentation on 6ix

Digital Hearts — Q1 FY2026 Earnings Presentation

Slide 1: Presentation Material for the Three Months Ended June 30, 2026

Slide 2: Executive Summary

Slide 3: Executive Summary for Q1 FY2026

Slide 4: Business Topics

Slide 5: Summary of Results by Segment - DH Group Biz

Slide 6: Summary of Results by Segment - AGEST Group Biz

Slide 7: Regarding the Tender Offer for the DIGITAL HEARTS HOLDINGS Co., Ltd.’s Common Shares

Slide 8: Consolidated Financial Results for Q1 FY2026

Slide 9: Summary of Financial Results for Q1 FY2026

Slide 10: Trend in Net Sales and Operating Income

Slide 11: Consolidated Balance Sheets

Slide 12: Financial Results Q1 FY2026 by Segment and Full-Year Consolidated Financial Forecasts

Slide 13: Summary of Financial Results by Segment

Slide 14: Financial Result of DH Group Business

Slide 15: Analysis of Changes in EBITDA - DH Group Biz

Slide 16: DH Group Business Performance Trends

Slide 17: DH Group Business - Domestic debugging division

Slide 18: DH Group Business - Global and others division

Slide 19: Financial Result of AGEST Group Business

Slide 20: Analysis of Changes in EBITDA - AGEST Group Biz

Slide 21: AGEST Group Business Performance Trends

Slide 22: AGEST Group Business - QA solution division

Slide 23: AGEST Group Business - IT services and others division

Slide 24: CVC Related Business

Slide 25: Consolidated Financial Forecast for FY2026

Slide 26: Businesses Forecast for FY2026

Slide 27: Appendix

Slide 28: Corporate Profile

Slide 29: Business Segments

Slide 30: Group Companies

Slide 31: Main Business Locations

Slide 32: Consolidated Financial Statement

Slide 33: Business Risks

Slide 34: Business foundation supporting growth strategy

Slide 35: Our Major Initiatives and Sustainable Development Goals (SDGs)

Slide 36: Glossary

Slide 37: Contact