Financial Report
3Q of FYE March 2024

2024.2.8

Ⅰ. Purpose / Business Model

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

2Designing ‘New Context’ for a sustainable society
with technology

Three Core Technologies

Integrating three different technologies with context,
DG Group has established a structure to capture
technological evolution and bring about continuous
business growth.

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4Grand Design of Payment Platform and Next-Generation Businesses
Ⅰ

Linear Development of Payment Platform
Continue “DG FinTech Shift” strategy centered on payment platform and strengthen recurring revenue stream.

Ⅱ

Development of Non-linear Businesses
Social implementation of next-generation technologies/Development non-linear businesses through Blockchain, Gen AI, etc.

Ⅱ

Development of
Non-linear Businesses

Blockchain / Gen AI

Creation of non-linear global
businesses integrated with payment
with cutting-edge technologies

NEW
EC site development

MarketingDX
Business

Payment Platform
Investment Incubation

FintechBusiness

Ⅰ

Linear Development ofPayment Platform

Expanding strategic businesses with synergy effect,
centered in the Fintech area, bringing competitiveedge and the growth to the payments business

Payment Platform
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Ⅱ. Consolidated Financial Results Highlights

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6

Executive Summary

1

PS grew steadily driven by the payment transaction volume increase in offline business domain.
3Q slowdown was caused by one-off factors.
Payment / 3Q slowdown was caused by one-off factors, such as the churn of a foreign fast fashion e-commerce site. B2B projects
grew significantly driven by steady increase in the transaction volume toward achieving the full-year growth target of 15% and more.
Marketing / Advertising business, which is profit-weighted on 4Q, will promote more projects than usual operating toward the end of
the fiscal year. The organizational structure change aiming for integration with the payment business is in progress.

2

The capital and business alliance with Resona Group was reinforced, accelerating further collaborationin the domains of payment and next-generation Fintech to strengthen the growth strategy over the
medium to long-term.

3

Establishment of a joint fund with Resona Group is planned in GII, making an important progress
toward achieving the target of “investment business income of 30B JPY and more” in the first year of
the Medium-term Plan.

4

Consolidated loss before tax for 3Q was caused by the impact of the foreign exchange on theinvestment businesses, no fundamental impact on DG’s core businesses.

Copyright © 2024 Digital Garage, Inc. All Rights Reserved7

3Q of FYE March 2024 Financial Results Highlights (Cumulative)
Financial Performance Summary for 3Q•

Consolidated profit before tax for 3Q cumulative period for FY24.3 was 6.1B JPY. (+18B JPY YoY)•

Made progress in business strategies to achieve the Medium-term Plan despite one-off factors on each segment•

Large-scale alliances (financial and communications, etc.) promoted in PS; Cash generation progressed in GII
PS: Profit before tax in the payment business grew by 15%, expected to move smoothly, covering the churn of a project and cost increase due
PS: to the system reinforcement.
LTI: Continued the early-stage investment in the internal incubation business group with a reactionary decline from the one-off profit (through the
LTI: sales of shares) recorded in 3Q of FY23.3
GII: Despite the loss for 3Q impacted by JPY depreciation, 2.8B JPY was generated from sales of shares and cash distribution.

Capital and Business Alliance with Resona Group (announced on December 22, 2023)
 Reinforced the capital and business alliance with Resona Group, which has one of Japan’s biggest customer bases centeredon SMEs and advocates Super Regional Bank, to promote cashless and DX in Japan together
 Strengthen the collaboration in payment and next-generation Fintech businesses, and promote the alliances in startup
investment and open innovation businesses
Completed disposal of 2.5M shares of treasury stock (equivalent to 5.25%*) through a third-party allocation on January 9, 2024 and the equivalent to4.75%* of DG’s stock is to be purchased through market purchase.
Resona Kessai Service, a payment servicing subsidiary of Resona Group, is to be operated as DG's equity method associate.
Plan to establish a joint investment fund with over 10B JPY in total, including a partial transfer of DG’s investment portfolio* of total number of issued shares as of the end of December 2023
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

8Consolidated Financial Results Highlights - Profit by Segment
Unit: M JPY

Consolidated
Profit before tax

PS

FY23.3 3Q
cumulative-11,858

4,760

FY24.3 3Q
cumulative

6,136

4,992

YoY

Overview

Increase/Decrease+17,994(-%)•

the investee’s fair value evaluation loss recorded in 3Q of FY23.3•

Each business segment made progress for further growth from the next fiscal year and beyond•

Payment: Moving smoothly toward achieving the full year target of 15% and more in
growth despite the churn of a foreign e-commerce site and cost increase in the system+232(+4.9%)

Consolidated financial result showed a substantial increase in profit due to a rebound fromreinforcement•

Marketing: Expecting to grow in 4Q, a profit-weighted term, and promoting to change theorganizational and revenue structures aiming for integrated growth with the payment business

LTI

GII

4,251

-9,603

1,241

2,996

-3,010(-70.8%)+12,598(-%)•

Continued the early-stage investments in new businesses aiming to generate profits over the
medium to long-term•

Profit decrease due to one-off gains from the sale of securities recorded in 3Q of FY23.3•

Investment business income has grown to 2.8B JPY, making progress toward achieving thetarget of 30B JPY.

•

Profit before tax increased substantially due to the rebound from the fair value evaluation loss
recorded in 3Q of FY23.3 despite the loss recorded in 3Q of FY24.3 mainly due to the impactof the foreign exchange.

Others /Adjustments andEliminations-11,267-3,093+8,174(-%)•

Fair value evaluation loss of holding shares by HQ was recorded in 3Q of FY23.3

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

9Highlight - KPIs
・The transaction volume: “Offline payment” continued to grow steadily and “Online payment” maintained a double-digit growth despite
the impact from one-off factors.
・Investment business: New investments were strategically selected, and 2.8B JPY of cash generated from the sales of holding shares.

Unit

FY23.3 3Q
cumulative

FY24.3 3Q
cumulative

YoY

YoY % Change

Transaction volume

100M
JPY

38,92645,805+6,879+17.7%

Online Payment

100M
JPY

29,31732,505+3,187+10.9%

Offline Payment

100M
JPY

9,609

13,300+3,691+38.4%

Operational Investment Securities

M JPY

72,193

71,151-1,042-

Investment Business Income *1

M JPY

2,185

2,795

+610

-

New Investment *2

M JPY

2,255

948

-1,307-

KPIs for Investment-related*1 Investment Business Income: Total of profit from the sales of holding shares and profit distribution from funds.
*2 New Investment: New investments in operational investment securities, excluding business related expenditures.
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

10Performance Trend (excluding one-off gains/losses and investment businesses)
・Full year profit is expected to increase YoY despite lower profit in marketing business and increased HQ costs such as
reinforcement of recruiting in 3Q.
・Measures to improve the profitability/profit margin centered on PS are being promoted toward the next fiscal year.

Profit before Tax (excluding one-off gains/losses and investments)

Revenue (excluding one-off gains/losses, and investments)
PS(Unit: M JPY)

(Unit: M JPY)

YoY

YoY

LTI
Others/adjustments and eliminations

21,013
3,389

21,6903,748

22,682

+4.6%

4,105

+9.5%

17,313

17,45017,993

FY22.3 3Q Cum.

FY23.3 3Q Cum.

FY24.3 3Q Cum.

+3.1%

2,777

FY22.3 3Q Cum.

3,195

FY23.3 3Q Cum.

2,868

-10.2%

FY24.3 3Q Cum.
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

11

Ⅲ. Segment Performance Highlights

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12Performance by Segment - Platform Solution
・The payment business grew by 15% in the cumulative profit and moved steadily despite the impact from one-off factors.
・The profit in the marketing business is expected to grow in 4Q due to seasonality with a focus on creation of synergies
with the payment business and Kakaku.com.

Segment Revenue

Segment Profit(Unit: M JPY)

Maketing

YoY

Payment

17,313

17,45017,993Marketing

+3.1%

9,985

8,936

-5.0%

4,760

8,048

FY22.3 3Q Cum.

FY23.3 3Q Cum.

9,057

996

4,992

+4.9%

668

-32.9%

4,339+15.3%

760

3,352
7,328

YoY

Payment

4,112
9,402

(Unit: M JPY)

3,765

+12.5%

FY24.3 3Q Cum.

FY22.3 3Q Cum.

FY23.3 3Q Cum.

FY24.3 3Q Cum.
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

13Segment Financial Results - Full Year Outlook for Platform Solution
・PS segment is expected to grow in 4Q due to seasonality despite the slowdown in the profit growth rate in 3Q.
・The strategies have been promoting to achieve the growth rate target throughout the fiscal year and further growthin the next fiscal year onward.

PS Segment Quarterly Profit

Outlook for 4Q onward(Unit: M JPY)

Payment Business

3,000

Increase/
Decrease
Rate YoY

23.7%

50.0%

-13.1%

2,500

1,796

2,000

1,500

• The growth rate showed a temporary slowdown due to increased HR
investment to strengthen the business over the medium to long-term
0.0% as well as the front-loaded demand for Japan’s hometown tax program
and the churn of a foreign fast fashion e-commerce site.

12.4%

1,502
91

• The growth rate is expected to recover in 4Q due to increased revenue in
B2B payment business domain and cost control.

-50.0%

1,695

339• The growth rate is expected to maintain 15% YoY throughout the current
fiscal year.
-100.0%238

Marketing Business

1,000-150.0%

1,411• Impact from structural change has been completed its cycle and the
profit is expected to increase, bottomed out at 3Q.

1,472

1,456

• Gained collaborative projects with major e-commerce sites and large-200.0%

500

scale new projects with credit card companies for 4Q.
0

1Q
-500

2Q

3Q
FY24.3

4Q• The revenue is expected to be higher than usual due to large entrusted
development projects to be delivered in 4Q.

-250.0%• Aiming for the highest profit in 4Q throughout the fiscal year
-300.0%
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14

Future Outlook in the Payment Business・Quick recovery is expected with stable organic growth and new projects starting from 4Q onward.
・Focus on improving the growth rate in each segment profit through the alliance with Resona Group as well as the plans
for major alliances and strategic entry into specific markets.

New Large Projects• Promoting large-scale alliances and entering the specific markets,
which will contribute to higher growth rate in e-commerce (online)
marketProfit before tax in thepayment business

Alliance with Resona Group• Formed a joint venture with Resona Kessai Service• Further strengthen the sales forces structure through businesscollaboration• Reach out to Resona Group's 500K corporate clients• Improve the profit rates through diversified products

Organic Growthin theOrganic
paymentGrowthbusinessin the Payment Business

Organic Growth• E-commerce market in Japan is expected to continuously grow due topromoting digitization in all commercial transactions.
• Strengthen online payment (DG Commerce) and develop new growthdomains in B2B payment business and non-merchandize e-commercesites, etc.
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

15Performance by Segment - Payment Transaction Volume
・Online payment domain: Steady growth despite one-off impact, focusing on e-commerce domain with the launchof DG Commerce
・Offline payment domain: Grew significantly due to increased number of merchants driven by successful alliance strategy(Unit: 100M JPY)

YoY

14,135
12,133
10,545
9,768

6,278

Offline 485

6,660

534

Online 5,793

6,126

1Q

2Q

7,281

586

6,695

3Q

FY20.3

8,124

8,333

692

1,091

8,962

1,794

1,476

7,432

7,242

7,486

4Q

1Q

2Q

8,752

3Q

FY21.3

1,688

10,482

1,960

8,080

8,522

4Q

1Q

10,1482,746

12,36812,424

11,585

2,549

2,902

14,648

16,134+14.1%

4,929+37.5%

11,205+6.2%

15,023

13,848

3,972

4,399

10,39010,677

10,624

4Q

1Q

2Q

3,584

3,457

10,550

3Q

3,123

2,219

7,929

2Q

9,387

9,036

9,466

9,301

3Q

4Q

1Q

2Q

FY22.3

FY23.33Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

16Performance by Segment – Long-term Incubation
・Early-stage investments in new businesses continues, aiming for the medium to long-term growth of the Group.
・ “Tabelog” and “KyujinBox” of Kakaku.com. have been moving smoothly.

Segment Revenue
一過性収益
One-off revenue
Profit from equity
持分法利益

Segment Profit(Unit: M JPY)

6,631

YoY

(Unit: M JPY)

一過性損益
One-off gains/losses

YoY

Profit from equity
持分法利益
methodmethod

事業収益
Business revenue

4,126-37.8%

2,552

-4.2%

事業損益
Business gain/loss
セグメント利益
Segment profit

4,251

3,529

2,144

2,664

1,244

1,221

FY22.3 3Q Cum.

FY23.3 3Q Cum.

1,639

1,553

FY24.3 3Q Cum.

+27.2%

FY22.3 3Q Cum.

1,241

FY23.3 3Q Cum.

FY24.3 3Q Cum.

-1,359-1,398-70.8%

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

17Performance by Segment – Global Investment Incubation
・2.8B JPY cash flow was generated through the sales of holding shares and cash distribution from funds, progressing
toward achieving the Medium-term Plan.
・The balance on operational investment securities increased by 3.5B JPY compared to the end of FY23.3 due to the increased
fair value evaluation by JPY depreciation.

Operational Investment Securities Details of Increase/Decrease
Fair Value(impact of foreignexchange)

New Investment *67,676At the end of Mar. 2023

+948

Decrease in bookvalue due to thesales of shares▲1,733+3,114

Others+234(Unit: M JPY)

71,151

Fair Value(excluding foreignexchange)+912

Proceeds fromthe sales

1,733 M JPY

Cash distribution
from funds

1,098 M JPY

Investment
business income

2,831 M JPY* New investments in operational investment securities, excluding business related expenditures.

At the end of Dec. 2023
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

18

Ⅳ．Business Strategy

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19Strengthen the Capital and Business Alliance with Resona Group・Resona HD is to additionally acquire approximately 10% of DG’s stock to strengthen the capital and business alliance formed in November 2022.
・Strengthen the alliance in the payment and new Fintech businesses, including establishing of a joint venture with Resona Kessai Service,and start a collaborative business in the investment domain

Overall Picture to Strengthen the Capital and Business Alliance

Overview to Strengthen the Capital Alliance
Additional acquisition of approximate 10% of DG’s stock by Resona HD Through a third-party allocation (disposal of treasury stock): 2,500K shares(5.25%)
 Through market purchase: 2,261K shares (4.75%)
Resona HD‘s shareholding ratio will be approximate 12%
including the acquisition of DG’s stork in November 2022.

Overview to Strengthen the Business Alliance
1. Srengthen the payment business
Establishment of a joint
sales force to strengthen
the payment businessCorporate clientsBusiness assets

500K corporations

Resona Kessai Service

Corporate businessprofessionals

3,000

Number of BranchesOver

800 locations

 Establish a joint venture with Resona Kessai Service (RKS)(to operate RKS as DG’s equity-method) Provide DGFT payment services and establish a joint sales force

2. Strengthen next-generation Fintech business Promote “DGFT Invoice Card Payment” and the payment solution for
medical institutions
 Accelerate joint development of new next-generation Fintech/DX businesses

3. Joint promotion of investment/open innovation
 Establishment of a joint investment fund with 10B JPY
 Partial transfer and joint ownership of operational investment securities heldby DG ventures

A subsidiary of Resona HD, which operates a payment collection agency, factoring, and payment business withassets of over 300B JPY and more than 2,000 partners. The company offers a variety of financial solutions,
including factoring and guarantees, in addition to payment collection services that handle 50M cases annually
Copyright © 2024 Digital Garage, Inc. All Rights Reserved20Reference Materials

ご参考資料
Reference Materials①: Supplementary Data

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

22Segment Classification after FYE March 2024
・Consolidated business segments to further accelerate its business strategy, integrating payments and data as wellas marketing.
・Consolidated new businesses and next-generation media business, aiming for vertical launch by leveraging DG Group’sbusiness assets as strategic businesses for enhancement of its corporate value in five years.

New Segments

Until Last Fiscal Year

Financial Technology

Platform Solution(PS)• Integration of payment and marketing businesses• Thoroughly strengthening cross-selling and establishing recurring
revenue model

Marketing Technology

Long-term Incubation

Headquarters Costs
New Business

Incubation Technology

Long-term
Incubation(LTI)

Global Investment
Incubation(GII)• Incubation and new strategic businesses leveraging the Groupsynergy with Kakaku.com• Developing commerce and Fintech product services that contributeto multi-layering and recurring revenues, mainly in Japan• Global startup investments• Have a reach to the technology and services by the alliance withstartups having an overwhelming speed

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

23Quarterly Performance Trend (excluding one-off gains/losses and investment businesses)
・Full year profit is expected to increase YoY despite lower profit in marketing business and increased HQ costs such as
reinforcement ofrecruiting in 3Q.
・Measures to improve the profitability/profit margin centered on PS are being promoted toward the next fiscal year.

Revenue (excluding one-off gains/losses, and investment)(Unit: M JPY)

Others/adjustments and eliminations

1,300

YoY
1,199

PS

941

(Unit: M JPY)

YoY

LTI

6,696

Profit before Tax (excluding one-off gains/losses and investment)

7,449

7,615

6,868
1,035

1,412

7,319 7,201 7,170

1,166
1,264 1,143

7,446

1,341 1,054

7,651 7,668

1,204

7,363

+2.7%

1,155

1,055

1,039

1,049

1,377 1,524 +13.6%

947

1,084
1,008

630

5,695 5,733 5,885

1Q

2Q

3Q

FY22.3

6,197

6,092 6,292 5,947 6,020 6,027
5,595 5,763

4Q

1Q

2Q

3Q

FY23.34Q

1Q

2Q
FY24.33Q-40.0%

439

-1.1%

1Q

2Q

3Q

FY22.3

4Q

1Q

2Q

3Q

FY23.3

4Q

1Q

2Q

3Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

24Platform
Solution

Performance by Segment (Quarterly) – Platform Solution

・The payment business showed steady progress despite the impact from one-off factors.
・The profit in the marketing business is expected to grow in 4Q due to seasonality with a focus on creation of the synergies
with the payment business and Kakaku.com.

Segment Revenue

Segment Profit(Unit: M JPY)

Marketing

YoY

Payment

5,695 5,733

5,885

6,197
5,595

5,763

6,092

6,292

5,947 6,020 6,027

Marketing

3,298

3,673

3,113

1,597
1,450

3,103

3,186 3,522 2,977 3,041 2,917

-8.4%

292

2,906 2,769 2,969 2,979 3,109
2,587 2,524 2,483 2,660
2,450
2,292

2Q

3Q

FY22.3

4Q

1Q

2Q

3Q

FY23.34Q

1Q

2Q
FY24.3

3Q

249

2Q

1,361

219

1,231

3Q

FY22.3509

341-13.1%

238-53.3%

512

1,411 1,456 1,472

+2.2%

339

91

146

1,031 1,068

4Q

1,695

1,644
1,502

1,214
330

+7.0%

1Q

YoY
1,796

-1.1%

1,042 1,079

1Q

1,949

Payment

1,334 1,328

3,403 3,283(Unit: M JPY)

1Q

1,257

2Q

1,440
1,132

3Q

FY23.3

4Q

1Q

2Q

3Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

25Platform
Solution

Payment Transaction Volume – Trends for Online and Offline Payments

・Online payment domain: Steady growth despite one-off impact, focusing on e-commerce domain with the launchof DG Commerce
・Offline payment domain: Grew significantly due to increased number of merchants driven by successful alliance strategy.
(Unit: 100 M JPY)

YoY

14,135

GRP

12,133
0.30%

0.30%

10,545
9,768

0.27%

6,278

Offline

485

6,660

534

Online 5,793

6,126

1Q

2Q

7,281

586

6,695

3Q

FY20.3

8,124

8,333

692

1,091

8,962

1,794

1,476

0.22%

7,432

7,242

7,486

4Q

1Q

2Q

8,752

3Q

FY21.3

1,688
0.22%

10,482

1,960

10,148

8,522

4Q

1Q

12,424

11,585

2,549

2,902

+14.1%

4,929+37.5%

15,023

13,848

3,972

4,399

0.20%

0.20%

0.20%

10,550

10,39010,677

10,624

3Q

4Q

1Q

2Q

3,584

3,457

0.21%

3,123

2,219
0.24%

0.22%

8,080

2,746

12,368

14,648

16,134

0.21%

7,929

2Q

0.22%

0.20%

9,387

9,036

9,466

3Q

4Q

1Q

FY22.3

0.21%

9,301

2Q

FY23.30.19%
11,205+6.2%

3Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

26Platform
Solution

Payment Transaction Volume – Trends for Merchandise and Services

・Service area: Grew significantly from FY23.3 despite a temporary stagnation in travel industry due to COVID-19
・Merchandise area: Continued to acquire merchants successfully, especially general retail (supermarkets and department
stores, etc.) by alliance strategy(Unit: 100 M JPY)

YoY
16,134
14,135
12,133
10,545
9,768
8,124

6,278

6,660

8,333

10,482

12,368

14,64815,023+14.1%+2.3%

13,84812,424

11,585

10,148+14.6%

8,962

7,281

OthersMerchandise+18.5%

Services
1Q

2Q

3Q

FY20.3

4Q

1Q

2Q

3Q

FY21.3

4Q

1Q

2Q

3Q

FY22.3

4Q

1Q

2Q

3Q

FY23.3

4Q

1Q

2Q

3Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

27Platform
Solution

Payment Transaction Volume – Increase / Decrease by Sector
・Transactions in Travel and Eating out industries recovered due to containment of COVID-19.
・The number of new merchants increased due to successful alliance strategy, including with Toshiba Tec.

Payment Transaction Volume: Increase/Decrease by Sector(Unit: 100M JPY)※% compared to FY23.3

Public Fund
Eating Out

General Retail +47.9%

Telecommunication+15.8%+18.6%

Food+31.9%

Others45,805+32.0%

Travel+54.0%

38,926Cum.

Cum.
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

28

Payment Transaction Volume – in online and offline payments by Industry

Platform
Solution・Online payment domain: Transaction volume increased in wide range of industries, centered on travel industry, in which the Company
has strength.
・Offline payment domain: Transaction volume mainly in general details increased as well as eating out and facility use-related due tocontainment of COVID-19.

Online Payment(Unit: 100M JPY)

その他
Others32,505

エンタメ・ホビー
Entertainment, Hobby
施設・チケット予約
Facilities, Ticket booking
Home appliances,
家電・家具インテリア

Offline Payment
YoY+10.9%(Unit: 100M JPY)

その他
Others13,300

施設・チケット予約
Facilities, Ticket booking

YoY+38.4%

外食
Eating Out

29,317

車関連
Automobile-related

Furniture, Interior

公金
Public Fund

旅行系
Travel-related

情報通信・ASP
Telecommunication, ASP

総合小売
General retail

9,609+97.1%+0.1%

旅行系
Travel related+62.3%-8.6%+18.5%+33.9%+15.8%+52.1%
FY23.3 3Q累Cum.

FY24.3 3Q累Cum.

FY23.3 3Q累Cum.

FY24.3 3Q累Cum.
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

29Platform
Solution

Payments related to Inbound Tourism

・Though the number of foreign visitors is on recovery, Chinese visitors with high consumption remains around 50% of
pre-COVID level.
・High potential for recovery is expected in Alipay/WeChat Pay services that the Group is dealing with.

The Number of Visitor Arrivals to Japan (by area)
Source of data：JNTO

Transaction Amount in Offline Payment(Unit: 100M JPY)

Other countries
その他
Europe欧州

インバウンド関連QRコード決済
QR Code payment by Inbound Visitors

North America
北米

253

その他対面決済
Other offline payments

Other Asian countries
その他アジアChina,
中国・香港
Hong Kong

246
126
43

17

31

48

35

22

15
21
17

23
24

13
306 287
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11
2017

2018

2019

2020

2021

2022

2023

292

159

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY20.3

FY21.3

FY22.3

FY23.3

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved30Platform
Solution

Capital Expenditures and Depreciation related to Payment Business・Continue to invest in payment systems to ensure stable 24/7 operations and enhance robustness of security.
・It is expected that fixed costs may show gradual increase due to redundancy of system operations and marginal profit ratio
remains at a current level.

Payment-related Expenditures・Depreciation(Unit: M JPY)

設備投資額
Capital expenditures
減価償却費
Depreciation

Payment-related Costs・Marginal Profit Ratio(Unit: M JPY)

限界利益率
Marginal profit ratio

一過性費用
One-off cost
変動費
Variable cost
固定費
Fixed cost
88.0%

264

275

293

297

302

293

302

302

288

288

85.5%

89.1%

85.0%

88.1% 88.7% 88.2% 87.2%

294

451

85.9% 87.3% 85.9%

142

275

355

281

378

297

301

344

356

419

377

439

398
331

1Q

321

2Q

349

344
282

3Q

FY22.3

297

294

4Q

1Q

2Q

3Q

FY23.3

4Q

336
254

1Q

2Q
FY24.3

3Q

974

1,199
1,115 1,118 1,103 1,122 1,139 1,139 1,145
1,017 1,075

1Q

2Q

3Q

FY22.3

4Q

1Q

2Q

3Q

FY23.3

4Q

1Q

2Q

3Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

31Platform
Solution

Profit in Marketing Business/Transaction Volume in Digital Advertising

・Digital Advertising, the mainstay of DG’s business, continues to transit steadily despite quarterly fluctuation in both profit and transaction volumeof the advertisement.
・Transaction volume of digital advertisement in the financial area in 3Q cumulative decreased due to clients’ budgetary austerity.

Profit in Marketing BusinessTransaction Volume in Digital Advertising(Unit: M JPY)

不動産広告
Real estate

YoY

EC支援/CRM
EC support/ CRM
デジタルアドDigital advertising
3,403

993

3,673

3,283 3,298

1,025 1,154

3,113 3,103 3,186

1,326
916

966

1,202

2,977 3,041 2,917

-8.4%

1,009

999

-16.9%

+3.0%

1,153
921

962

1,124 1,034 1,088 1,064 1,200 1,063 1,120 1,096

1Q

3Q

4Q

FY22.3

金融領域
Financial area

3,522

1,105 1,101

2Q

金融領域以外
Non-financial area

1Q

2Q

3Q

FY23.34Q

1Q

2Q
FY24.33Q

1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY16.6

FY17.3

FY18.3

FY20.3

FY20.3

FY21.3

FY22.3

FY23.3

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

32

Long-term
Incubation

Performance by Segment (Quarterly) – Long-term Incubation
・Early-stage investments in new businesses continues, aiming for medium to long-term growth.
・“Tabelog” and “Kyujin-box” of Kakaku.com have been moving smoothly.

Segment Revenue

Segment Profit(Unit: M JPY)

4,168

一過性収益
One-off
revenue

Business
事業収益
revenue 1,422

1,505

558

383

1Q

499

1,056

1,035

603

951

1,040
801

717

1,233

1,163

2Q

429

3Q

FY22.3

365

4Q

1Q

2Q

380

449

412

-87.4%

733

783

360

434

423

868

841

423

553

-8.6%

661

1Q

433

YoY

-63.9%

1,389

1,324 1,299

984

3,263

YoY

持分法利益
Profitfrom equity method

1,072(Unit: M JPY)

438

394

471

509

573

+30.9%

2Q

3Q

4Q

1Q

FY22.3-301-323

One-off gains/losses
一過性損益
Profit from equity
持分法利益

2Q

3Q

1Q

FY23.3
-369
-467

-584

4Q

2Q

3Q

FY24.3
-438
-503

-447

-431

-520

method3Q

FY23.34Q

1Q

2Q
FY24.3

3Q

事業損益
Business gain/loss
Segment Profit
セグメント利益

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

33

Global Investment
Incubation

Trends in Operational Investment Securities / by Currency and Area・Fair value of operational investment securities denominated in foreign currency increased due to JPY depreciation.
・Fair value of operational investment securities at the end of December 2023 was 71.2 B JPY. (+3.5B JPY comparedto the end of FY23.3.)

Balance of Operational Investment Securities(Unit: 100M JPY)

866

その他
Others
印ルピー
INR

798

780

406

726 739

722

日本円
JPY

677

667

米ドル
USD

Investees by Area (%)

Europe712

0.2%

Others

14.8%

615

438

472

508

North America

Japan

42.9%

18.4%

363

Asia

23.7%
1Q

2Q

3Q

FY21.3

4Q

1Q

2Q

3Q

FY22.3

4Q

1Q

2Q

3Q

FY23.3

4Q

1Q

2Q

3Q

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

34

Global Investment
Incubation

Trends in Top 5 Companies by Balances in Investment

・Have diversified portfolio of 200 or more startups mainly in seed and early stages besides LP・Investment balance is expected to gradually decrease in five years due to cash generation by investment exit and strategic
selection of new investees.

Shares of Top 5 Portfolio Companies
86,565
77,950(Unit: M JPY)

79,76972,19367,676

72,59473,924

71,151

Top 5
companies

Others

56.0 %

56.0 %

65.1 %

65.1 %

63.9 %

63.5 %

63.1 %

63.6 %

22.3

22.6

22.9

22.12

23.3

23.6

23.9

23.12

FY22.3

FY23.3

FY24.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved

35

ご参考資料
Reference Materials②: Business Model

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

36

The Structure of Transactions by Credit Card
Contract
Brand membership contract

International brands

Money
お金

Brand membership contract

VISA/MASTER/AMEX/DINERS/JCB
Pay feePay fee
Payment

IssuerIssue credit cards

Pay on behalf（fee cost deducted）

Representative
contract

Payment Service
ProviderPay on behalf（fee deducted）
Purchase goods & services

Payment
agencycontract

Merchant contract（ Direct contract）

ConsumerAcquire and manage merchants（ fee deducted）
Payment

Credit card payment

Credit card contract

Credit card member

Acquirer

Pay feeMerchant
E-commerce & In-store businesses

Copyright © 2024 Digital Garage, Inc. All Rights Reserved37Commercial Distribution of Payment Service Provider
A service that acts as an intermediary between e-commerce site operators and offline merchants and payment service providers
such as credit card companies and convenience stores, enabling the introduction of a number of payment methods, including
credit card payments, through a single contract and system.
Electronic message
Money

Consumer

Payment service
providerMerchant

Payment
networks
Credit Card Companies① Order

EC website② Payment
information③ Payment
information

Bank Payment
Convenience Stores Payment
E-money Payment⑦ Offer goods⑤ Notify result④ Notify result

Real storesTelecom Carriers Payment
ID Payment⑨ Pay theamount lessthe settlement
agent's fees

⑧ Pay sales
proceeds
less fees

International Payment
QR Code Payment
BNPL (Buy Now Pay Later)⑥ Payment

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

38

Contract Type of Payment Service Provider
Storage agency type （Representative
contract）(Representative contract)
Acting as an all-in-one agent for contracting
procedures with various payment settlement
institutions and payment of sales amounts

Merchant
contract• Single point of contact for payment• Streamline operations such as payment management andconfirmation

Payment dataprocessing

Payment dataprocessing

Monthly fee
Pay sales
proceeds lessfees

Pay the amountless thesettlement
agent's fees

Payment
institutions• Monthly sales proceeds are deposited to the merchant in a lump-sum
payment from our company

Merchant• We handle all contracting procedures with payment providers such as
credit card companies and financial institutions

Payment
service provider

type (Direct contract)
Payment data processing type（Directcontract）• Merchants sign contracts directly with credit card companies• Provide the necessary software and transaction management tools• Also provide support for software installation

Electronic
message
Money

Payment dataprocessing

Payment
service provider

Payment dataprocessing

Monthly fee,
Processing fee
Merchant contract
Pay sales proceeds less fees

Payment institutions• Provide payment systems and automate card payment processing

Data processing
contract

Merchant

Based on the merchant agreements with credit cardcompanies signed by the merchants, credit card
payment processing is automated through theintroduction of a payment system provided by PSP

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

39Market Size of Payments for B2C Consumers
Cashless payment markets are expected to grow significantly in both online and offline.
Private final consumption
expenditure
304

291

294

(Unit: T JPY)

309

Target by Japanese
Government
Cashless rate
～80％

Room for cashless payment(Cash payment, etc.)

86

96

106

116

Offline cashless payment
market65

73

EC payment market

21

23

25

27

29

30

’18
18年

’20
20年

’21
21年

’22
22年

’23 (Forecast)
23年(予想)’24 (Forecast)
24年(予想)’25 (Forecast)
25年(予想)

’19
19年

after
’26
26年以降

Calculated by the Company with referent to the following materials as source of data.
“National Accounts 2022” by Cabinet Office/ “Status of Domestic Cashless Payment Markets and Forecast” by Yano Research Institute Ltd./ “Cashless Roadmap 2023” by METI
“e-commerce Market Survey 2022” by METI / Deloitte Tohmatsu Consulting LLC / MIC Research Instituite “Current Status and Future Prospect for Internet Payment Service Providers in EC”
Copyright © 2024 Digital Garage, Inc. All Rights Reserved40About DG Financial Technology, Inc.

Innovation across Payment
DG Financial Technology, Inc. (DGFT,) a wholly-owned subsidiary of Digital Garage managing the group’s core
payment service, was formed in Feb. 2021 through reorganization of VeriTrans and ECONTEXT.
Leveraging its highly available, functional and stable payment platform, DGFT will strive to design ‘New Context’ fora sustainable society and lead the creation of a new Fintech-based financial ecosystem.

Development（Offshore）
Recommendation

OnlinePayment

OfflinePayment

BNPL

Remittance

Security

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

41Overview of DG Financial Technology, Inc.
・A wholly-owned subsidiary of DG, managing the DG group’s core payment business・Provide payment solution for various needs of clients, covering both online and offline merchants
Company Profile
CompanyName

DG Financial Technology, Inc.

Head Office

Shibuya-ku, Tokyo

Capital1.06845 B JPY

Business
Areas

Payment Information Processing Service
Agency Payment Service
Money Transfer Service

Registered
Businesses

Electronic Payment Services（Director of the Kanto
Finance Bureau No.25）
Funds Transfer Service Provider（Director of the
Kanto Finance Bureau No00094）
Business Operator for handling Credit Card Numbers,etc.

Certification

Participating
Organizations

PCIDSS Version3.2.1
ISO/IEC27001
Privacy MarkPCI Security Standards Council, LLC
Japan Credit Association
Japan Collection Agencies Association.
Japan Multi-payment Network Promotion Association
Japan Payment Service Association
EC Payment Forum

Overview of DGFT’s Payment Business (Business Performance ’23/1－’23/12)
Payment Transaction Volume (JPY)

Yearly Total

6.0T

Offline1.7T

Online

4.3T

Number of Merchants（as of Dec. 2023)

FYE Dec. ’23

1,052K

Non-Face-to-Fac
Offline931K

Online121K

Number of Payment Transactions

BOffline
500M

Yearly Total

1,127M

Online628M

Status of Systems（FYE Dec. 2023）

System Uptime

99.99%

Number of available
Payment methods

over

40

# of partnered
Financial Institutions

over

1,000

Major Subsidiaries and Affiliates

Marketing tools
for e-commerce

Fraud detection India-based
solutions fortech support
Payment& engineering
service

Multi-payment
and mileage
programproviderMulti-payment
solution for
POS

BNLP payment
solutionsShareholder

Shareholder

Toshiba Tec: 51%
DGFT: 49%

Nissen: 51%
DGFT: 49%

Shareholder

Shareholder

Shareholder

Shareholder

DGFT: 100%

DGFT: 100%

DGFT: 100%

ANA: 51%
DGFT: 49%

New Company

Establishment of comprehensive structure for marketing, e-commerce site
development, and payment
Shareholders

DGFT: 60% / System Integrator Corp.: 40%

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

42Payment Methods and Major Payment Products
・Handle over 40 major payment methods, raging from credit cards to convenient-store payments
・Address the needs of clients with payment products designed for different industries and use cases
Payment Methods
Credit Cards

JCB, VISA, Mastercard, American Express,
Diners Club

ConvenientStoresSEVEN-ELEVEN, Lawson, FamilyMart,
Seicomart, MINISTOP, Daily YAMAZAKI

ID/QR

au PAY, Amazon Pay, Bank Pay, J-Coin Pay, Rakuten
Pay, d payment, LINE Pay, PayPay,
Smart Code, merpay, FamiPay, Apple Pay,
Google Pay, EPOS payment, COIN+

Carrier
Payments

au Easy Payment, d payment, Softbank Payment

Banks

Pay-easy, Rakuten Bank, SBI Sumishin Net Bank,
PayPay Bank

Electric Money

Rakuten Edy, Suica, nanaco, WAON

Overseas

Alipay, Alipay＋, WeChatPay, PayPal, Union Pay

Web AccountTransfers

About 290 Financial institutions in Japan（Major banks, Internet banks, Local banks, andShinkin banks）

OthersVeriTrans BNLP, Credit cards for multi-currency,
Eikyufumetsu Point System

Major Payment Products

Patent-pending

Multi-payment service foronline merchants

Multi-QR Code payment
service for offline merchants

QR Code multi-payment
service for offline merchants

HotelPay
Account transfers overemails and cash receipt at
Lawson stores

セレモニーPAY(Ceremony Pay)
Payment and financial
solutions specificallydesigned for funerals

Barcode payments for
PoS
One-stop installation of
ID Payment to PoS terminals

Payment services for hotels &hospitality industry, integrated
reservation systems

IVR Payment
Patented

Credit card payment solution
for real estate industry(rents and initial fees)

e-mail link payment

Credit card payment solution
for telephone ordering

Payment solution to provide
payment URLs by emails.

OmniPAY

Fraud-detection Service

One-stop payment solution
to manage both online andoffline payments

Security solutions forfraud prevention and detection（ACI, ReD Shield, Sift, etc.）

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

43Overview of Payment System
・Manage IT system risk through redundancy (2 data centers) with in-house system monitoring and operation
・Achieve agility and cost competitiveness by building in-house engineering team and utilizing development base
System Overview
1

Active-Active Configuration

 2 data centers with equivalentcapabilities in different locations
 Over 800km distance between the 2data centers increases tolerance tonatural disaster and BCP

2Merchants

Merchants

 Stable operation with no downtime
if one of the 2 data centers remains
up and running

Multi-layered Redundancy

 D a t a - t i r e w i t h 1 2 - l a ye r m i r r o r s
structure（DB:４units×Storage:3
units for each）
 Redundancy structure to minimizes ys t e m i n c i d e n t a n d o u t a g e

Merchants

Servers
Database 1

Storage①

Merchants

Data Center 2（Kyusyu）

Data Center 1（Kanto）

Bi-directional data Sync

 B i - d i r e c t i o n a l d a t a s yn c b e t w e e n
the 2 data centers (every 1-10 sec.)3

Overview of DGFT Payment System

Servers

Data
10秒以内にSynchronization

データを同期
every ten seconds

Database 3

Storage①
Storage②

Storage③

Storage③

BackupBackupDatabase 2

Database 4

Storage①

Storage①

Storage②

Storage②

Storage③

Storage③

System Operation and Monitoring（Japan）

1（India）

System Operation Structures 2 4 / 7 s ys t e m m o n i t o r i n g a n doperation from in Japan and India
 Ac h i e v e q u i c k r e s p o n s e t i m e a n d
cost competitiveness by building
in-house engineering team andalso utilizing offshore location

2

Storage②（two-location system)

Operation Overview

Monitoring System

 Au t o m a t e d r e a l - t i m e m o n i t o r i n g o f
e n t i r e p a ym e n t s ys t e m s
 Quick changeover to manned
responses once surveillance alert
is detected<System Downtime for FYE 23. 3>
Achieved the lowest industry rate due torobust structure with well-controlled
operations and monitoring system

20 seconds per year
（Uptime:99.9994%）

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

44Capital and Business Partners / Partner Companies
・Create strong partnerships with leading payment, financial, and retails companies in Japan・Jointly develop efficient sales partnership and new businesses to address emerging market needs

Strategic Partners（Capital Alliance Partners）

Resona Holdings

Toshiba Tec Corporation

Capital and Business Alliance

Capital and Business Alliance

Capital and Business Alliance

Capital and Business Alliance

Provide payment service on an OEM
from DGFT and joint-development of
new payment services(Holding 2% of DG shares)

Sales collaboration and joint
development of new payment services(Holding 5% of DG shares)

Operate “TD Payment,” an online
payment service joint venture(Mutual holding 2% of shares)

Joint-development of new payment
services such as “Ceremony Pay”
(Holding 1.4% of DG shares)

JV Partners

Business Partners

JV Partner

JV Partner

Business Partner

Business Partner

Business Partner

Business Partner

Jointly operate payment
JV for hospitality Industry

Jointly operate BNPL
JV for EC businesses

Promoting collaboration
on “DGFT Invoice Card
Payment,” a payment
service for B2B

Provide payment
service on an OEM
from DGFT

Provide payment
service on an OEM from
DGFT, jointly provide
B2B payment services

Provide ID/QR code
Payment to “AirPAY”,
offline payment service

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

45Partnerships with Major Overseas Payment Companies
・Provide Japan-local payment solution to leading global 12 PSPs and support global firms’ entry to Japan・Plan to expand DGFT’s businesses globally by leveraging the partnership with the leading PSPs

Support global companies’ Japan entry by partnering with the world’s

12 leading payment service providers(PSPs)

Europe3

North America
Asia

companies

53

companies

companies
Market Size of Payment Orchestration（M USD）
<Source: 360i Research>

The world

6,624.1

Japan

CAGR
The world

South America+17.2%
Japan

1,861.8
259.4

64.3
2022
Actual result

2023

2024

2025

2026

2027

2028

2029

+19.0%

1company2030

Forecast

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

46

Business Model: Marketing Business・Support client business growth through a comprehensive digital marketing service
・Provide solutions utilizing CRM and data, and Fintech solutions which connect with the payment business
Promoting interest and purchaseintent in all touchpoints with consumers

Clients

Marketing business

Bank/Card
Securities/Payment/
Other financial services

Outsource

RetailOthers (HR/Public
transportation/Hotels/Travel, etc.)

Customer databasedevelopment and analysis
Application
development

App/Game/E-book/Contents services
Real estate developer

Consumer

Overall internet advertising(Purchase promotion/customer
attraction/brand recognition)

Cosmetic/Consumer goods
manufacturer
e-commerce

Contact points

Work
togetherin DX area

Web media

SNS

Search engine

App

Mass media

Store

Media
development

AI solutions

Competing platforms for GAFA

Joint projects in DX and IT

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

47

Multi-layered Businesses and Profit Opportunities based on Payment Business・Establish the platform to continuously generate stable profits from payment business・Aim to generate multi-layered profit opportunities from the existing businesses as well as DX, Fintech, andnext-generation media, etc.

AcquiringMembers
Opening
Accounts
・Credit Cards
・e-Money・Bank・QR payment
etc.

Payment Partners

Platform
Solution
Marketing Services

Marketing Service

Products for DX/ Cashless

Co-development of
New services

Payment

Payment Platform

Long-term
Incubation

B2B Payment
Improvement of cash flow
Next-generation media

Business
Operators(Merchants)

DX
Cashless

Attracting
customers

Consumers

Payment
Companies
Financial
Institutions

Consumer Behavior Data
from awareness to purchase

B2B transactions

Wholesalers
MakersData for Payment
and Purchase
Copyright © 2024 Digital Garage, Inc. All Rights Reserved

48

ご参考資料
Reference Material③:
Cash Flow Allocation / Shareholder Returns

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

49

Definition of Business Cash Flow
Formula for Calculation from Base Business Cash Flow

Base Business
Cash Flow

Cash Flow fromPS Segment※※Excluding profit from equity
method and one-off profit/loss
from EBITDA

Cash Flow from
New Business (LTI)

Dividend Income
from Associates

HQ Costs

If the cash flow from new businesses ispositive, it will be added to base businesscash flow.

Formula for Investment Business Cash Flow

Investment
Business
Cash Flow

Income from
Investment
Business
・Proceeds from the salesof securities
・Distribution income
from funds
・Dividend Income

Costs forInvestment
Business,
Corporate Tax, etc.

Copyright © 2024 Digital Garage, Inc. All Rights Reserved50Cash Flow Allocation
・Segregate resources into recurring cash flow from base business and investment business cash flows
・Plan to allocate resources, considering growth opportunities and financial situations
Cash Flow Allocation
Investment in Existing Business －Maintain and expand revenue base
GrowthBase Business
Cash Flow

Investment in New Business
GrowthImprovement of Financial
Structure
Shareholder Returns

Investment
Business
Cash Flow－Develop next-generation businesses that create
corporate value－5Y dividends total at least 10B JPY－Dividend payout ratio of at least 20% or more ofbase business cash flow

Investment in Growth /－Decide strategically, considering business environment
and investment opportunities
Additional Shareholder Returns
Investment in Startups－Up to 30% of investment business income

Strategic Investments(M&A・Capital Alliance, etc.)

Copyright © 2024 Digital Garage, Inc. All Rights Reserved

51

Financial Strategy for Investment Business・Sell shares in which the Company has direct investments and earn investment EXIT income (proceeds from sales, etc.)
・Invest in new opportunities selectively. For investments aiming for financial returns, invest from managed funds. Investments on the balance
sheet is planned to decrease.
・Clarify use of funds for investment EXIT income. Decide strategically on investment in business growth opportunities and additional shareholder
returns.

5Y Picture of Direct Investment and Income from Sales

Usage of Investment EXIT Cash Flow

70 B JPY
Investment in Growth✓ （NewBusiness Development）
Make strategic decisions based on
business environment and opportunities

Operational
Investment
on
Balance
Sheet

Unrealized
ProfitInvestment
Business
CF(Operating costs,
after tax)

Book value

Investment
Business Income
More than 30 B Yen（5Y Total）

End of FY23.3✓

Consider Additional
Shareholder Return

Reinvestment in Startups
and Managed Fund✓

Up to 30% of Investment
Business Income

Investments✓ Strategic（M&A・Capital alliance）

End of FY28.3
Copyright © 2024 Digital Garage, Inc. All Rights Reserved52

Shareholder Return Policy・Dividend Policy: Aim for additional dividend distribution from new businesses in addition to stable dividend from PS cash flow
・Additional shareholder returns (special dividends･acquisition of treasury stock, etc.) from investment business CF will be considered positively

Shareholder Return Policy

Shareholder Return based on Base Business CF

Additional Returnfrom Investment
Business

2nd Layer

Additional dividend
from new businesses(LTI)

businesses)

Base Business CF

Stable divided from CF from PS Segment, etc.

(New

Investment for growth or additional shareholder returns
will be determined, considering business environment
and investment opportunities

Aim to increase dividends bygenerating cash flow throughlaunch of strategic businesses
Annualsingle-year Policy

1st layer(PS)

Plan to pay stable dividends
from cash flow of PS Segment,
which is expected ascontinuous profit growth

Dividend
payout ratio

20% or more

10B JPY or more
FY24.3Medium-term Plan

FY28.3Copyright © 2024 Digital Garage, Inc. All Rights Reserved53

Please note that the business forecasts and strategies covered in today’s presentation are based on our current evaluation and future results may vary significantly depending on unforeseeable
events or circumstances. This announcement is solely for the purpose of the investors relationship and is not for making any solicitation for investment in any securities. This announcement does
not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior toregistration or qualification under the securities laws of any such jurisdiction. Any securities of our consolidated subsidiaries have not been registered under the U.S. Securities Act of 1933, as
amended (the “U.S. Securities Act”) and may not be offered or solid in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.
Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer andits management and financial statements.