DIT Report
Interim Financial Report for FY6/2023(July 1, 2022 to June 30, 2023)

Stock Code: 3916, First Section of the Tokyo Stock Exchange

To Our Shareholders

We shall aim for further growth with new goals and strategies while
succeeding the business promotion based on two axes whichhave supported our growth until now; namely stabilizing our businessfoundation and strengthening growth factors.
We would like to explain our activities for the ﬁscal year ended June 30, 2023 (from July 1,2022 to June 30, 2023) with the DIT Report.
First of all, we would like to apologize for making shareholders worry as we disclosed thedownward revision of the earnings forecast during the ﬁscal year in response to the emergenceof unproﬁtable projects. However, we made group-wide eﬀorts to recover business performanceby appropriately responding to the strong demand in the entire business, so sales and proﬁtgrew for the 13th consecutive term.
In the term ending June 30, 2024, which is the ﬁnal ﬁscal year of the medium-term
management plan, we shall aim for further growth with new goals and strategies whilestrengthening the business promotion based on two axes which have supported our growth until
now; namely stabilizing our business foundation and strengthening growth factors before thestart of a new medium-term management plan in the term ending June 30, 2025.
We look forward to the continued support and guidance of our shareholders.

Satoshi Ichikawa,
Representative Directorand President

Sales and proﬁt grew for the 13th consecutive term.
Net sales

Operating Income(million yen)(million yen)

18,1492,039

18,1492,004 2,039

million yen

14,444

16,156+11.9%+12.3%

million yen

1,722

Ordinary Income(million yen)

2,059
million yen

1,730(million yen)

1,447
million yen

2,004 2,059+1.8%+16.4%Net income attributable toowners of parent+2.8%+15.8%

1,196

1,439 1,447+20.3%

FY6/2021 FY6/2022 FY6/2023
2Q
2Q
2Q

FY6/2021 FY6/2022 FY6/2023
2Q
2Q
2Q

FY6/2021 FY6/2022 FY6/2023
2Q
2Q
2Q

+0.6%

FY6/2021 FY6/2022 FY6/2023
2Q
2Q
2Q

Interview with President
Although the future outlook is uncertain,we will operate business carefully so as
to minimize its eﬀects, and take onchallenges boldly while utilizing thecapability of responding to changes,
which is the forte of DIT.
Satoshi Ichikawa, Representative Director and President

TopInterview
Please let us know the business performance in the term
ended June 30, 2023 (FY6/2023).
As the consolidated financial results for FY6/2023, we posted
net sales of 18,149 million yen, up 12.3% year on year, operating
income of 2,039 million yen, up 1.8% year on year, ordinary
income of 2,059 million yen, up 2.8% year on year, and net
income attributable to owners of parent of 1,447 million yen, up
0.6% year on year.
In FY6/2023, profit declined temporarily as somepharmaceutical projects of the Business Solutions Unit turned out
to be unprofitable, but we made group-wide efforts to recoverbusiness performance by meeting strong demand, so sales andprofit increased for the 13th consecutive term.
The driver for recovery was the Embedded Solutions Unit. The
number of orders for the development and verification ofembedded systems from automobile makers and parts
manufacturers increased considerably and IoT-related projects
increased steadily, contributing to sales and profit significantly.
There are notes for the operational support in business activities
in FY6/2023.
Our operational support staff have received orders forredevelopment of systems from the viewpoint of clients, but inthe past few years, we have run out of resources for it, so webecame unable to receive new orders smoothly. In response tothat problem, we established a cycle of allocating the existing
resources to new jobs and the increase of new customers byutilizing the resources of simplism inc., which became awholly-owned subsidiary through M&A on June 30, 2022.
Then, please let us know the outlook for the current term
ending June 30, 2024 (FY6/2024).
The consolidated earnings forecast for FY6/2024 calls for net
sales of 19.5 billion yen, up 7.4% year on year, operating incomeof 2.5 billion yen, up 22.6% year on year, ordinary income of 2.5billion yen, up 21.4% year on year, and net income attributable toowners of parent of 1,734 million yen, up 19.8% year on year.
These figures were obtained by summing up the reliable
forecasts of respective business units. We will consider them as
the bottom line and engage in business. As demand is verystrong mainly in the Embedded Solutions Unit, we will raise ourtechnological level, including our resources, while fostering good
relationships with business partners, and respond to thesignificant demand fueled by DX. In the current term, ourbusiness is expected to progress and grow stably, achieving thegrowth of sales and profit for the 14th consecutive term.

Please let us know the medium-term management plan.
We set the management goal titled “Challenge 500” forachieving net sales of 50 billion yen and operating income of 5billion yen in the term ending June 30, 2030, and are pursuingthis goal. The target figures of “Challenge 500” are composed of
the forecast figures related to organic growth, new businesses,and M&A. Regarding organic growth, we think that achievabletarget figures are 30 billion yen for net sales and 4 billion yen for
operating income, if we can keep growing by double digits.
Furthermore, we assume that we will undertake new projects in
new fields, including generative AI, and M&A projects will
increase, and included their contribution (net sales of 20 billion
yen and operating income of 1 billion yen) in the target figures.
Lastly, please give your message to shareholders.
We plan to keep increasing the return to shareholders. The IT
field where our company operates business is projected to keepchanging significantly. We think that by improving our capabilityof responding to changes, boldly challenging changes, andcontinuously increasing sales and profit in the 14th and 15th
consecutive terms, we will be able to increase the return toshareholders.
For FY6/2023, we decided to pay a year-end dividend of 18yen/share for a total of 36 yen/share per year, combined with theinterim dividend of 18 yen/share (payout ratio: 37.9%). In
FY6/2024, we have raised payout ratio from 35% or higher to40% or higher, and plan to pay an interim dividend of 23
yen/share and a year-end dividend of 23 yen/share for a total of
46 yen/share (up 10 yen/share from the previous term; payoutratio: 40.2%).
Considering changes as chances, we will forge ahead with ourbusiness. We would appreciate your guidance andencouragement.

Together with the interviewer Kenichi Hirano, an analyst

Interview with Outside Directors
We interviewed two newly appointed outside directors,
and received the following answers.

01

Interview with Mr. Shigeru Ogawara

02

Interview with Mr. Atsushi Okuma

Ou t s i d e
Di rec t o r
In t ervi e w

After graduating from university, I joined a foreign-affiliated major computer company
as a system engineer and engaged in development and installation of packaged sales
management systems. Then, I entered a major stationery mail-order company in which I
contributed to expanding the business through various projects such as launching
e-commerce businesses targeted at medium and large-sized companies, upgrading themission-critical business systems to enterprise resource planning (ERP) systems,
reforming the business structure, and streamlining logistics systems. I met the late
Norikazu Ichikawa, a former chairperson of DIT, who was working at Toyo Techno
Corporation when I entrusted Toyo Techno with reconstruction of an e-commerce business system for the stationery mail-ordercompany, and we joined hands and made a success of a project of e-commerce platform development, which had been stymied.
After being devoted to digital transformation as the person in charge at the ICT department of a leading transportation company
group for five years and then setting up a venture company, I have just been appointed as an outside director for DIT. DIT
strengthens its business foundation through multidimensional business development activities while respecting the personality ofeach and every employee, fostering an exceptional corporate culture that is shaped in combination of flexibility and robustness,and I am attracted to it. Furthermore, President Ichikawa has a keen eye for the true nature of people, which allows the company
to place the right people in the right jobs regardless of their diverse backgrounds. I have future aspirations of contributing toreforming DIT’ s business and enhancing on-site capabilities by taking advantage of the extensive experience that I have gained
while working at several operating companies and perspectives as a user, and DIT asks me to give opinions and advice based onmy experience at the operating companies. As I would like to make contribution to DIT’ s growth, I would appreciate the continued
support of our shareholders.

I engaged in sales activities targeting institutional investors at financial securities firms
both in Japan and overseas for more than 10 years and was devoted to a business ofproposing client companies such matters as capitalization tables and growth strategies at
the investment banking division of a European securities firm until recently. When I worked
at the investment banking division, I visited DIT, made the acquaintance of President
Ichikawa there, and forged a good relationship with him. I got fascinated very much by hispersonality and attitude toward business, and before I knew it, I had discussions on DIT’ sgrowth strategies with him many times. When I ask the employees about President
Ichikawa, their first words are always about his personality. I think that talented personnel
have gathered to work for DIT because they are attracted to his personality. No one will
be able to refuse a request from such a wonderful president for closely supporting himwith capitalization tables (laugh). Regarding my future aspirations at DIT, how we connect DIT to the capital markets, especially thestock markets, is the big mission imposed on me. It is necessary to satisfy a variety of stakeholders while the company grows.
Stakeholders include shareholders, and DIT is required to operate business while keeping an eye on stock prices as it is a listedcompany. In retrospect, few companies were asked about their purpose as companies, and companies were highly regarded aslong as they made a profit and grew. However, in response to the growing ESG trend, what is asked about companies’ purposes
is what kind of social issues they can resolve by growing as a company. This trend is intended to allocate risk money to rightcompanies in order to settle social issues. To put it shortly, risk money was allocated to growing companies in the past, but it will
go to companies that should grow in the future. It will become important how companies present not only the numbers appearing
in such documents as securities reports, but also their strengths that are not shown in numbers. I am sure that the time is not far
off when strengths not shown in numbers as well as steadfast growth strategies are reflected in stock prices. DIT is taking on abold challenge in this regard. I would like to grow together by sharing within the company the knowledge and experience that I
have gained. I would appreciate the further support of our shareholders.

IR Topics
Conclusion of a contract for wide-ranging business alliance centeredaround cyber security with AGEST, Inc.
In August 2023, DIT signed a contract for wide-ranging business alliance mainly for cyber security services with AGEST, Inc.
(hereinafter referred to asAGEST ), which supports the improvement in quality and safety of software by utilizing

cutting-edge quality technologies, and engages in the following activities.
・ Started handling WebARGUS with the aim of enriching the cyber security services of AGEST
・ Started discussing the development of new services by utilizing the strengths, technologies, and resources of the twocompanies in the ﬁelds of cyber security and Internet of Things (IoT)・ Business expansion through synergetic eﬀects of the resources, services, etc. of the two companies in the ﬁelds of systemdevelopment, testing/veriﬁcation, and security diagnosis, where the two companies operate business

Notiﬁcation on the redesign of The Names of the Presidents Are,
the PR media on human documentaries
We have redesigned a video introducing Satoshi Ichikawa as Representative Director and President of our company in The Names of thePresidents Are, the PR media on human documentaries.
The video introduces the president s background and how he became president in about 2 minutes, so that viewers can understand his
personality in a short period of time.
This time, a video of the head oﬃce was added, refurbishing the image. Please check it out.

●Click here to access the website. ▶ https://shachono-nawa.com/company/ow3v6jiy5●Click here to watch TikTok.

◆ Company ProﬁleCompany nameLocation

Digital Information Technologies Corporation
Abbreviation: DIT
5th Floor of FORECAST Sakurabashi, 4-5-4 Hatchobori, Chuo-ku, Tokyo
TEL：03-6311-6520（main）/FAX：03-6311-6521

Established

January 4, 2002

Capital453,156 thousand yen (as of the end of June 2023)

Closing monthJune

Number of employees 1,330 (consolidated) (as of the end of June 2023)◆ Stock Information (as of the end of June 2023)
Number of authorized shares: 24,800,000
Number of issued shares:

15,501,820

Number of shareholders:

5,753

Our IR information page:https://www.ditgroup.jp/english/ir/