FACT BOOK From Made in Japan to Checked by Japan 3620 TSE 1 st section DIGITAL Hearts Co., Ltd. For the Fiscal Year ended March 31, 2012
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Contents P4-5 Company Profile/Our Group P6-7 Consolidated Balance Sheets P8 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income P9 Consolidated Statements of Change in Shareholders Equity P10-11 Consolidated Statements of Cash Flows P12-13 Non-consolidated Balance Sheets P14 Non-consolidated Statements of Income P15 Non-consolidated Statements of Change in Shareholders Equity P16-17 [FYI] Non-consolidated Statements of Cash Flows P18 Non-consolidated Profitability Indicators P19 Non-consolidated Efficiency Indicators P20 Stability Indicators, ROE/ROA P21 Stock Information 3
Company Profile Company Name URL Head Office DIGITAL Hearts Co., Ltd. http://www.digitalhearts.co.jp/ 32F Tokyo Opera City Building 3-20-2 Nishi-Shinjuku Shinjuku-ku,Tokyo,163-1432 Capital 272.94 Million Yen (as of March 31, 2012) Incorporated April 19, 2001 President & CEO Eiichi Miyazawa Number of Employees 6,319 (including temporary staff, as of March 31, 2012) Our business Consumer Games Unit (CS) Consumer game software Online games Digital Solutions Unit (DS) Mobile applications/sns applications Testing web system, operation system Testing of home appliances Application operation support Application overseas expansion support Amusement Unit (AM) Pachinko Pachislot 3D Contents Production Development Outsourcing Customer relationships Knowhow of Q&A Testing Bug data Approximately 6,000 testers Japanese precision & craftsmanship Fuguai.com Site Management Clients Consumer software,mobile content,arcade games and home electronics fields Request of Q&A Testing for software and contents Payment of Q&A Testing services Providing Q&A Testing Services (Reports/glitch video/feedback, etc) DIGITAL Hearts Group Q&A Testing Case:650,000 cases Registerd testers:6,099 As of March31,2012 Consumer Games Unit Digital Solutions Unit Amusement Unit 4
Our Group Group company & offices DIGITAL Hearts Korea Co., Ltd Sapporo Lab. DIGITAL Hearts USA Inc. DIGITAL Hearts (Thailand) Co., Ltd. Fukuoka Lab. Osaka Lab. Kyoto Lab. Nagoya Lab. Hatsudai Head office Sasazuka Lab. Ueno Lab. Yokohama.Lab. DIGITAL Hearts Co., Ltd. G&D Co., Ltd. DIGITAL Hearts Visual Co., Ltd. Summarized Business scheme diagram Clients DIGITAL Hearts Visual Co., Ltd. Game Industry Mobile Device Industry Pachinko & Pachislot Industry Home Appliance Industry System Industry DIGITAL Hearts Co., Ltd. Q&A Testing Business DIGITAL Hearts Korea Co., Ltd DIGITAL Hearts (Thailand) Co., Ltd. DIGITAL Hearts USA Inc. Others Q&A Testing Service 3D Contents Production Service Development Outsourcing Service G&D Co., Ltd. 5
Consolidated Balance Sheets ( Thousand) 3/2012 Assets Total assets - - - - 3,159,896 Current assets - - - - 2,451,501 Cash and deposits - - - - 1,597,677 Notes and accounts receivable-trade - - - - 763,994 Inventories - - - - 994 Deferred tax assets - - - - 39,646 Other - - - - 50,040 Allowance for doubtful accounts - - - - 852 Noncurrent assets - - - - 708,394 Property, plant and equipment - - - - 207,978 Buildings and structures - - - - 163,105 Accumulated depreciation - - - - 55,203 Buildings and structures, net - - - - 107,901 Machinery, equipment and vehicles - - - - 9,102 Accumulated depreciation - - - - 1,661 Machinery, equipment and vehicles, net - - - - 7,440 Tools, furniture and fixtures - - - - 149,421 Accumulated depreciation - - - - 78,422 Tools, furniture and fixtures, net - - - - 70,998 Lease assets - - - - 24,010 Accumulated depreciation - - - - 2,372 Lease assets, net - - - - 21,638 Intangible assets - - - - 62,540 Lease assets - - - - 11,466 Other - - - - 51,073 Investments and other assets - - - - 437,875 Investment securities - - - - 133,683 Deferred tax assets - - - - 7,986 Other - - - - 296,205 Non-consolidated financial statements are only available until FY2010. 6
Consolidated Balance Sheets ( Thousand) 3/2012 Liabilities Total liabilities - - - - 893,403 Current liabilities - - - - 862,450 Lease obligations - - - - 8,234 Income taxes payable - - - - 275,780 Provision for bonuses - - - - 26,380 Accrued expenses - - - - 346,920 Other - - - - 205,133 Noncurrent liabilities - - - - 30,953 Lease obligations - - - - 27,893 Asset retirement obligations - - - - 3,060 Net assets - - - - Total net assets - - - - 2,266,492 Shareholders' equity - - - - 2,246,947 Capital stock - - - - 272,949 Capital surplus - - - - 232,949 Retained earnings - - - - 1,741,048 Accumulated other comprehensive Income - - - - 4,552 Valuation difference on available-for-sale securities - - - - 1,444 Foreign currency translation adjustment - - - - 3,107 Minority interests - - - - 24,097 Total liabilities and net assets - - - - 3,159,896 Non-consolidated financial statements are only available until FY2010. 7
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income ( Thousand) 3/2012 Net sales - - - - 5,386,259 Cost of sales - - - - 3,462,784 Gross profit - - - - 1,923,475 Selling, general and administrative expenses - - - - 1,089,561 Operating income - - - - 833,913 Non-operating income - - - - 11,500 Interest income - - - - 1,683 Dividends income - - - - 383 Subsidy income - - - - 4,964 Other - - - - 4,469 Non-operating expenses - - - - 38,511 Interest expenses - - - - 602 Loss on transfer receivable - - - - 743 Foreign exchange losses - - - - 12,629 Loss on investments in partnership - - - - 3,216 Loss on settlement of deposit for operation - - - - 21,252 Other - - - - 65 Ordinary income - - - - 806,903 Extraordinary loss - - - - 2,666 Loss on retirement of noncurrent assets - - - - 2,666 Income before income taxes - - - - 804,236 Income taxes-current - - - - 379,881 Income taxes-deferred - - - - 13,338 Total income taxes - - - - 366,543 Income before minority interests - - - - 437,693 Minority interests in loss - - - - 3,078 Net income - - - - 440,771 Consolidated Statements of Comprehensive Income ( Thousand) 3/2012 Income before minority interests - - - - 437,693 Other comprehensive income - - - - 3,303 Valuation difference on available for sale securities - - - - 326 Foreign currency translation adjustment - - - - 2,977 Comprehensive income - - - - 434,389 Comprehensive income attributable to owners of the parent - - - - 437,336 Comprehensive income attributable to minority interests - - - - 2,947 Non-consolidated financial statements are only available until FY2010. 8
Consolidated Statements of Change in Shareholders Equity ( Thousand) 3/2012 Shareholders' equity Capital stock Balance at the beginning of current period 272,821 Issuance of new shares-exercise of subscription rights to shares 128 Total changes of items during the period 128 Balance at the end of current period 272,949 ( Thousand) 3/2012 Accumulated other comprehensive income Valuation difference on available-for-sale securities Balance at the beginning of current period 1,117 Net changes of items other than shareholders' equity 326 Total changes of items during the period 326 Balance at the end of current period 1,444 Capital surplus Balance at the beginning of current period 232,821 Issuance of new shares-exercise of subscription rights to shares 127 Total changes of items during the period 127 Balance at the end of current period 232,949 Foreign currency translation adjustment Balance at the beginning of current period - Net changes of items other than shareholders' equity 3,107 Total changes of items during the period 3,107 Balance at the end of current period 3,107 Retained earnings Balance at the beginning of current period 1,343,691 Dividends from surplus 43,413 Net income 440,771 Total changes of items during the period 397,357 Balance at the end of current period 1,741,048 Total shareholders' equity Balance at the beginning of current period 1,849,333 Issuance of new shares-exercise of subscription rights to shares 256 Dividends from surplus 43,413 Net income 440,771 Total changes of items during the period 397,613 Balance at the end of current period 2,246,947 Total Accumulated other comprehensive income Balance at the beginning of current period 1,117 Net changes of items other than shareholders' equity 3,434 Total changes of items during the period 3,434 Balance at the end of current period 4,552 Minority interests Balance at the beginning of current period - Net changes of items other than shareholders' equity 24,097 Total changes of items during the period 24,097 Balance at the end of current period 24,097 Total net assets Balance at the beginning of current period 1,848,216 Issuance of new shares-exercise of subscription rights to shares 256 Dividends from surplus 43,413 Net income 440,771 Net changes of items other than shareholders' equity 20,662 Total changes of items during the period 418,276 Balance at the end of current period 2,266,492 Non-consolidated financial statements are only available until FY2010. 9
Consolidated Statements of Cash Flows ( Thousand) 3/2012 Cash flows from operating activities Net cash provided by operating activities - - - - 705,192 Income before income taxes - - - - 804,236 Depreciation and amortization - - - - 84,220 Decrease in allowance for doubtful accounts - - - - 870 Increase in provision for bonuses - - - - 486 Interest and dividends income - - - - 2,067 Interest expenses - - - - 602 Foreign exchange losses - - - - 11,892 Loss on investments in partnership - - - - 3,216 Loss on settlement of deposit for operation - - - - 21,252 Loss on retirement of noncurrent assets - - - - 2,666 Increase in notes and accounts receivable-trade - - - - 218,836 Decrease in inventories - - - - 820 Increase in other current assets - - - - 7,463 Increase in accounts payable-other - - - - 29,372 Increase in accrued expenses - - - - 108,548 Increase in accrued consumption taxes - - - - 53,767 Increase in other current liabilities - - - - 29,291 Other - - - - 151 Subtotal - - - - 920,985 Interest and dividends income received - - - - 2,539 Interest expenses paid - - - - 626 Deposits for operation paid - - - - 14,000 Proceeds from deposits for operation - - - - 26,577 Income taxes paid - - - - 230,283 Non-consolidated financial statements are only available until FY2010. 10
Consolidated Statements of Cash Flows ( Thousand) 3/2012 Cash flows from investing activities Net cash used in investing activities - - - - 138,215 Payments into time deposits - - - - 100,000 Proceeds from withdrawal of time deposits - - - - 93,945 Purchase of property, plant and equipment - - - - 104,421 Proceeds from sales of property, plant and equipment - - - - 1,242 Purchase of intangible assets - - - - 23,372 Purchase of investment securities - - - - 49,975 Proceeds from redemption of investment securities - - - - 50,000 Payments for lease and guarantee deposits - - - - 23,185 Proceeds from collection of lease and guarantee deposits - - - - 28,424 Purchase of insurance funds - - - - 11,396 Other - - - - 523 Cash flows from financing activities Net cash used in financing activities - - - - 20,550 Repayments of lease obligations - - - - 4,675 Proceeds from issuance of common stock - - - - 256 Cash dividends paid - - - - 43,176 Proceeds from stock issuance to minority shareholders - - - - 27,044 Effect of exchange rate change on cash and cash equivalents - - - - 3,473 Net increase in cash and cash equivalents - - - - 542,952 Cash and cash equivalents at the beginning of period - - - - 1,054,725 Cash and cash equivalents at the end of period - - - - 1,597,677 Non-consolidated financial statements are only available until FY2010. 11
Non-consolidated Balance Sheets ( Thousand) Assets Total assets 1,410,859 1,868,608 1,949,842 2,343,073 3,162,948 Current assets 985,229 1,349,892 1,350,174 1,668,513 2,329,938 Cash and deposits 616,855 912,810 868,569 1,054,725 1,474,054 Notes receivable 2,696 20,942 7,800 25,379 38,100 Accounts receivable-trade 325,993 361,522 424,135 519,742 725,676 Inventories - - 230 1,815 994 Advance payments-trade 520 642 967 2,402 1,384 Prepaid expenses 22,653 26,048 26,861 29,632 41,761 Deferred tax assets 16,233 27,760 20,925 28,048 39,646 Other 750 1,159 1,988 8,489 9,170 Allowance for doubtful accounts 475 994 1,304 1,722 852 Noncurrent assets 425,630 518,716 599,668 674,560 833,010 Property, plant and equipment 46,723 75,071 94,410 138,028 183,667 Buildings 47,671 69,206 84,987 129,578 161,948 Accumulated depreciation 12,643 18,015 27,438 37,267 54,856 Buildings,net 35,027 51,190 57,548 92,311 107,092 Vehicles 5,856 5,856 5,856 5,856 6,666 Accumulated depreciation 2,928 3,862 4,498 4,931 1,417 Vehicles, net 2,928 1,994 1,357 924 5,248 Tools, furniture and fixtures 19,006 35,663 62,783 88,135 147,737 Accumulated depreciation 10,238 13,776 27,280 45,641 78,109 Tools, furniture and fixtures, net 8,767 21,886 35,503 42,494 69,627 Lease assets - - - 2,397 2,397 Accumulated depreciation - - - 99 699 Lease assets, net - - - 2,297 1,698 Intangible assets 70,205 68,272 57,256 58,904 48,042 Right of trademark 2,015 2,707 2,406 3,045 2,641 Software 47,027 53,870 52,364 44,768 34,948 Software in progress 20,833 9,713 - - - Lease assets - - - 9,535 7,054 Other 327 1,980 2,485 1,554 3,397 Investments and other assets 308,702 375,372 448,001 477,626 601,301 Investment securities 99,623 145,899 143,313 138,284 133,683 Stocks of subsidiaries and affiliates - - - - 169,186 Long-term prepaid expenses 357 - - 462 674 Deferred tax assets 9,263 8,475 1,982 6,213 7,986 Deposits for operation - - - 40,000 - Lease and guarantee deposits 99,457 120,996 180,053 162,621 148,328 Long-term time deposits 100,000 100,000 100,000 100,000 100,000 Insurance funds - - 22,651 30,044 41,441 12
Non-consolidated Balance Sheets ( Thousand) Liabilities Total liabilities 437,310 547,591 351,055 494,857 864,273 Current liabilities 437,310 547,591 351,055 484,234 855,140 Current portion of bonds 50,000 - - - - Lease obligations - - - 2,989 3,057 Accounts payable-other 34,667 22,134 20,988 31,372 66,504 Accrued expenses 156,747 187,251 187,516 238,197 342,799 Income taxes payable 109,640 228,710 81,169 122,573 275,780 Accrued consumption taxes 46,377 58,841 23,253 37,589 91,275 Advances received 16,317 19,653 12,580 15,012 14,930 Deposits received 7,579 8,413 8,818 10,161 33,731 Provision for bonuses 15,969 22,586 16,473 25,894 26,380 Other 10-254 443 681 Noncurrent liabilities - - - 10,622 9,132 Bonds payable - - - - - Lease obligations - - - 9,129 6,072 Asset retirement obligations - - - 1,493 3,060 Net assets Total net assets 973,549 1,321,017 1,598,786 1,848,216 2,298,675 Shareholders' equity 973,583 1,321,629 1,599,307 1,849,333 2,300,120 Capital stock 272,461 272,573 272,677 272,821 272,949 Capital surplus 232,461 232,573 232,677 232,821 232,949 Legal capital surplus 232,461 232,573 232,677 232,821 232,949 Retained earnings 468,660 816,483 1,093,953 1,343,691 1,794,221 Retained earnings brought forward 468,660 816,483 1,093,953 1,343,691 1,794,221 Total valuation and translation adjustments 34 612 521 1,117 1,444 Valuation difference on available-for-sale securities 34 612 521 1,117 1,444 Total liabilities and net assets 1,410,859 1,868,608 1,949,842 2,343,073 3,162,948 13
Non-consolidated Statements of Income ( Thousand) Net sales 2,372,454 3,378,382 3,416,326 3,957,718 5,383,731 Cost of sales 1,483,328 1,977,527 2,065,248 2,428,837 3,441,546 Gross profit 889,126 1,400,854 1,351,078 1,528,881 1,942,185 Selling, general and administrative expenses 553,057 759,592 829,699 1,000,732 1,059,547 Operating income 336,068 641,261 521,378 528,148 882,637 Non-operating income 1,660 5,863 8,269 3,651 18,676 Interest income 512 2,361 732 344 334 Interest on securities - 468 1,804 1,800 1,326 Dividends income - - - - 383 Consulting fee income - - - - 7,199 Subsidy income - - 2,639-4,964 Compensation income - 1,175 - - - Other 1,148 1,857 3,092 1,506 4,468 Non-operating expenses 18,344 3,217 3,483 36,667 38,160 Interest expenses - - 0 63 209 Loss on transfer of receivables - - 565 1,130 743 Foreign exchange losses - 293 177 764 12,685 Loss on investments in partnership 1,021 2,749 2,739 3,022 3,216 Contribution - - - 10,000 - Listing-related expenses - - - 21,629 - Interest on bonds 370 92 - - - Stock issuance cost 7,991 - - - - Going public expenses 8,791 - - - - Loss on settlement of deposit for operation - - - - 21,252 Other 170 82-56 52 Ordinary income 319,384 643,907 526,164 495,133 863,154 Extraordinary income 794-19,178 25,482 - Gain on reversal of allowance for doubtful accounts 794 - - - - Surrender value of insurance - - 19,178 - - Compensation income - - - 25,482 - Extraordinary loss - 6,275 9,593 25,164 2,666 Loss on retirement of noncurrent assets - 1,226 1,627 6,810 2,666 Office transfer expenses - 5,048 2,013 2,616 - Head office transfer cost - - - 2,512 - Penalty for breach of contract - - - 4,840 - Loss on adjustment for changes of accounting standard for asset retirement obligations - - - 8,384 - Salaries for prior periods - - 5,951 - - Income before income taxes 320,179 637,632 535,750 495,451 860,487 Income taxes-current 161,938 300,152 216,164 227,769 379,881 Income taxes-deferred 11,364 10,342 13,266 10,944 13,338 Total income taxes 150,573 289,809 229,430 216,824 366,543 Net income 169,605 347,822 306,319 278,626 493,943 14
Non-consolidated Statements of Change in Shareholders Equity ( Thousand) 3/2011 3/2012 Shareholders' equity Capital stock Balance at the beginning of current period 272,677 272,821 Issuance of new shares-exercise of subscription rights to shares 144 128 Total changes of items during the period 144 128 Balance at the end of current period 272,821 272,949 ( Thousand) 3/2011 3/2012 Valuation and translation adjustments Valuation difference on available-for-sale securities Balance at the beginning of current period 521 1,117 Net changes of items other than shareholders' equity 596 326 Total changes of items during the period 596 326 Balance at the end of current period 1,117 1,444 Capital surplus Legal capital surplus Balance at the beginning of current period 232,677 232,821 Issuance of new shares-exercise of subscription rights to shares 143 127 Total changes of items during the period 143 127 Balance at the end of current period 232,821 232,949 Total Capital surplus Balance at the beginning of current period 232,677 232,821 Issuance of new shares-exercise of subscription rights to shares 143 127 Total changes of items during the period 143 127 Balance at the end of current period 232,821 232,949 Retained earnings Other retained earnings Retained earnings brought forward Balance at the beginning of current period 1,093,953 1,343,691 Dividends from surplus 28,888 43,413 Net income 278,626 493,943 Total changes of items during the period 249,737 450,530 Balance at the end of current period 1,343,691 1,794,221 Total retained earnings Retained earnings brought forward Balance at the beginning of current period 1,093,953 1,343,691 Dividends from surplus 28,888 43,413 Net income 278,626 493,943 Total changes of items during the period 249,737 450,530 Balance at the end of current period 1,343,691 1,794,221 Total valuation and translation adjustments Balance at the beginning of current period 521 1,117 Net changes of items other than shareholders' equity 596 326 Total changes of items during the period 596 326 Balance at the end of current period 1,117 1,444 Total net assets Balance at the beginning of current period 1,598,786 1,848,216 Issuance of new shares-exercise of subscription rights to shares 288 256 Dividends from surplus 28,888 43,413 Net income 278,626 493,943 Net changes of items other than shareholders' equity 596 326 Total changes of items during the period 249,429 450,459 Balance at the end of current period 1,848,216 2,298,675 Total shareholders' equity Balance at the beginning of current period 1,599,307 1,849,333 Issuance of new shares-exercise of subscription rights to shares 288 256 Dividends from surplus 28,888 43,413 Net income 278,626 493,943 Total changes of items during the period 250,025 450,786 Balance at the end of current period 1,849,333 2,300,120 15
[FYI] Non-consolidated Statements of Cash Flows ( Thousand) 3/2007 3/2008 3/2009 3/2010 3/2011 Cash flows from operating activities Net cash provided by operating activities 163,738 190,974 466,101 124,395 307,799 Income before income taxes 236,825 320,179 637,632 535,750 495,451 Depreciation and amortization 9,591 19,381 28,758 41,275 55,799 Amortization of long-term prepaid expenses 485 842 357-13 Increase (decrease) in allowance for doubtful accounts 13 858 518 310 417 Increase (decrease) in provision for bonuses 6,150 9,819 6,617 6,112 9,420 Interest and dividends income 118 512 2,361 732 344 Interest on securities - - 468 1,804 1,800 Interest expenses 83 - - 0 63 Interest on bonds 370 370 92 - - Foreign exchange losses - 10 163 168 85 Stock issuance cost 762 7,991 - - - Loss on investments in partnership - 1,021 2,749 2,739 3,022 Loss on retirement of noncurrent assets - - 1,226 1,357 6,810 Gain on sales of noncurrent assets 1,461 - - - - Loss on sales of noncurrent assets 191 - - - - Loss on adjustment for changes of accounting standard for asset retirement obligations - - - - 8,384 Increase in notes and accounts receivable-trade 65,316 116,562 53,774 49,470 113,186 Increase in inventories - - - 230 1,584 Increase in other current assets 3,143 2,982 4,529 1,963 10,707 Increase (decrease) in accounts payable-other 10,392 15,817 20,415 5,773 11,496 Increase in accrued expenses 42,101 47,350 30,596 265 50,656 Increase (decrease) in accrued consumption taxes 10,464 16,148 13,133 35,090 14,286 Increase (decrease) in other current liabilities 901 12,736 7,905 6,046 2,474 Subtotal 246,490 330,753 648,202 486,187 530,758 Interest and dividends income received 118 512 2,359 2,534 2,145 Interest expenses paid 441 370 184 0 39 Deposits for operation paid - - - - 40,000 Income taxes paid 82,429 139,921 184,275 364,326 185,066 Non-consolidated financial statements are only available until FY2010. 16
[FYI] Non-consolidated Statements of Cash Flows ( Thousand) 3/2007 3/2008 3/2009 3/2010 3/2011 Cash flows from investing activities Net cash provided by (used in) investing activities 108,896 263,175 120,106 140,080 92,944 Payments into time deposits - 100,000 - - - Proceeds from withdrawal of time deposits - - 100 - - Purchase of property, plant and equipment 29,388 25,194 38,798 50,392 77,282 Proceeds from sales of property, plant and equipment 4,720 - - - - Purchase of intangible assets 36,431 23,344 9,869 7,980 15,222 Purchase of investment securities - 100,702 50,000 - - Purchase of insurance funds - - - 22,651 7,393 Payments for lease and guarantee deposits 46,983 14,344 31,750 69,546 14,816 Proceeds from collection of lease and guarantee deposits 873 410 10,211 10,489 23,152 Increase of long-term prepaid expenses 1,685 - - - - Purchase of long-term prepaid expenses - - - - 476 Other - - - - 904 Cash flows from financing activities Net cash provided by (used in) financing activities 822 424,099 49,775 28,387 28,613 Net increase (decrease) in short-term loans payable - - - 5,000 - Decrease in short-term loans payable - - - 5,000 - Decrease in long-term loans payable 29,500 - - - - Redemption of bonds - - 50,000 - - Proceeds from issuance of common stock 28,677 424,099 224 208 288 Cash dividends paid - - - 28,595 28,699 Repayments of lease obligations - - - - 202 Effect of exchange rate change on cash and cash equivalents - 10 163 168 85 Net increase (decrease) in cash and cash equivalents 54,019 351,887 296,055 44,240 186,156 Cash and cash equivalents at the beginning of period 210,847 264,867 616,754 912,810 868,569 Cash and cash equivalents at the end of period 264,867 616,754 912,810 868,569 1,054,725 17
Non-consolidated Profitability Indicators ( Million) Net Sales 2,372 3,378 3,416 3,957 5,386 Gross Profit 889 1,400 1,351 1,528 1,923 SG&A Expenses 553 759 829 1,000 1,089 Operating Income 336 641 521 528 833 Ordinary Income 319 643 526 495 806 Net Income 169 347 306 278 440 (%) Gross Profit on Sales 37.5% 41.5% 39.5% 38.6% 35.7% SG&A Expenses Ratio 23.3% 22.5% 24.3% 25.3% 20.2% Operating Income Margin 14.2% 19.0% 15.3% 13.3% 15.5% Ordinary Income Margin 13.5% 19.1% 15.4% 12.5% 15.0% Net Income Margin 7.1% 10.3% 9.0% 7.0% 8.2% Gross Profit on Sales=Gross Profit/Net Sales SG&A Expenses Ratio=SG&A Expenses/Net Sales Operating Income Margin=Operating Income/Net Sales Ordinary Income Margin=Ordinary Income/Net Sales Net Income Margin=Net Income/Net Sales Non-consolidated financial statements are only available until FY2010. ( Million) 6,000 Gross Profit on Sales Net Sales Gross Profit Gross Profit on Sales 50.0% ( Million) SG&A Expenses Ratio Net Sales SG&A Expenses SG&A Expenses Ratio 6,000 27.0% 5,000 40.0% 5,000 25.0% 4,000 3,000 2,000 30.0% 20.0% 4,000 3,000 2,000 23.0% 21.0% 19.0% 1,000 10.0% 1,000 17.0% 0 0.0% 昨年までは単体で5 期分を表示していました 今 Operating Income Margin 期から連結開示に移行していますので 連結の ( Million) Net Income Margin 数字をまず今期分のみ掲載する形としました 20.0% 6,000 そのことについての注記として 会社資料の Factbookや説明資料に統一感のない説明がつ 5,000 いています 15.0% 4,000 程度のよい適当な注記文があれば すべての注記をそれに合わせようかと思うのですが 10.0% 3,000 稲田 ( Million) Net Sales Operating Income Operating Income Margin 6,000 5,000 4,000 3,000 2,000 2,000 5.0% 1,000 1,000 0 15.0% Net Sales Net Income Net Income Margin 15.0% 10.0% 5.0% 0 0.0% 0 *Only the non-consolidated financial statements are available until FY2010. 0.0% 18
Non-consolidated Efficiency Indicators (Times) Total Assets Turnover 2.26 2.06 1.79 1.84 1.96 Noncurrent Assets Turnover 7.83 7.15 6.11 6.21 7.79 Current Assets Turnover 3.18 2.89 2.53 2.62 2.61 (Days) Accounts Receivable Turnover 50.6 41.3 46.1 50.3 51.8 Cash and deposits Turnover 94.9 98.6 92.8 97.3 108.3 Total Assets Turnover=Net Sales/Average Total Assets Noncurrent Assets Turnover=Net Sales/Average Noncurrent Assets Current Assets Turnover=Net Sales/Average Current Assets Accounts Receivable Turnover=(Average Accounts Receivable / Net Sales)*365 Cash and deposits Turnover=(Cash and deposits / Net Sales)*365 Non-consolidated financial statements are only available until FY2010. (Times) 3.00 Total Assets Turnover (Times) 15.00 Noncurrent Assets Turnover 2.00 10.00 1.00 5.00 0.00 0.00 (Times) 5.00 Current Assets Turnover (days) 60.0 Accounts Receivable Turnover 4.00 3.00 40.0 2.00 20.0 1.00 0.00 0.0 *Only the non-consolidated financial statements are available until FY2010. 19
Stability Indicators, ROE/ROA ( Million) Equity 973 1,321 1,598 1,848 2,242 Total Assets 1,410 1,868 1,949 2,343 3,159 Noncurrent Assets 425 518 599 674 708 Current Assets 985 1,349 1,350 1,668 2,451 Current Liabilities 437 547 351 484 862 Interest-Bearing Debt 50 - - 12 36 Equity Ratio 69.0% 70.7% 82.0% 78.9% 71.0% D/E Ratio 5.1% - - 0.7% 1.6% Fixed Ratio 43.7% 39.3% 37.5% 36.5% 31.6% Current Ratio 225.3% 246.5% 384.6% 344.6% 284.2% Return on Equity(ROE) 25.2% 30.3% 21.0% 16.2% 21.6% Return on Total Assets(ROA) 12.0% 18.6% 15.7% 11.9% 16.0% Non-consolidated financial statements are only available until FY2010. Equity Ratio=Equity/Total Assets ROE=Net Income/Equity D/E Ratio=Interest-Bearing Debt/Equity ROA=Net Income/Total Assets Fixed Ratio=Noncurrent Assets/Equity Current Ratio=Current Assets/Current Liabilities ( Million) 3,500 Equity Ratio Equity Total Assets Equity Ratio 90.0% ( Million) Fixed Ratio Equity Noncurrent Assets Fixed Ratio 2,500 60.0% 3,000 2,500 2,000 60.0% 2,000 1,500 40.0% 1,500 1,000 500 30.0% 1,000 500 20.0% 0 0.0% 0 0.0% Current Ratio ( Million) Current Assets Current Liabilities Current Ratio 2,500 500.0% ( Million) Return on Equity(ROE) 60.0% ROE,ROA Return on Total Assets(ROA) 2,000 1,500 1,000 500 400.0% 300.0% 200.0% 100.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0 0.0% 0.0% *Only the non-consolidated financial statements are available until FY2010. 20
Stock Information ( ) Share price at term-end 304,000 166,000 150,600 161,700 165,200 Net income per share 9,942.30 6,035.86 5,303.32 4,820.11 7,608.29 Net income per share (fully diluted) 9,560.64 5,828.90 5,132.10 4,669.61 7,386.44 Net Assets per share 50,692.49 22,894.98 27,671.68 31,929.10 38,674.65 Dividend per share 0.00 500.00 500.00 750.00 1,000.00 As of March 31,2012 Major Shareholders(Top 10) Non-consolidated financial statements are only available until FY2010. Number of Shares (Share) Shareholding Ratio(%) Miyazawa, Eiichi 31,800 54.84% The Master Trust Bank of Japan, Ltd.(Trust account) 4,442 7.66% Japan Trustee Service Bank, Ltd.(Trust account) 3,605 6.21% State Street Bank and Trust Company 505041 1,293 2.23% The Nomura Trust and Banking Co., Ltd. (investment account) 1,215 2.09% NOMURA PB NOMINEES LIMITED OMNIBUS-MARGIN (CASH PB) 1,125 1.94% Kawaguchi, Kenichiro 600 1.03% Wakasa, Yasuyuki 600 1.03% Nippon Life Insurance Company 570 0.98% Trust & Custody Services Bank, Ltd.(securities Investment trust account) 513 0.88% Composition of Shareholders by Category Japanese individuals and others Foreign institutions and individuals Other Japanese corporations Japanese financial institutions Japanese securities firms 0.52% 0.97% 3/2012 70.34% 6.86% 21.31% 6.24% 0.63% 1.09% 3/2011 77.02% 15.02% 1.41% 0.60% 1.28% 3/2010 76.36% 20.35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% *Only the non-consolidated financial statements are available until FY2010. 21
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Contact DIGITAL Hearts Co., Ltd. Management Planning Office 32F Tokyo Opera City Building, 3-20-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo,163-1432 TEL: 81-3-3379-2219 FAX: 81-3-3379-2054 E-mail: ir@digitalhearts.com http://www.digitalhearts.co.jp/en/ 24