Q2 FY2022
Financial Results Presentation Materials
Drecom Co., Ltd.
October 28, 2021

Table of Contents

1. Review of Q2 (Jul-Sep) FY2022 Results

2. Medium-term (fiscal year ending March 31, 2023) goals

Forecast for Q3 (Oct-Dec) FY2022

4. appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

2

1. Review of Q2 (Jul-Sep) FY2022 Results

Summary of Q2 FY 2022 Results
Mainstay IP titles in their seventh year of release are contributing to earnings, propelled by the successful
events.

Q2(Jul-Sep)
FY2022Q2(Jul-Sep)
FY2022(Cumulative)

Q2(Jul-Sep)
FY2021(Unit: million yen)

Q2
(Jul-Sep)
FY2021(cumulative
total)

Q1(Apr-Jun)
FY2022

YoY(cumulative
total)

YoY

QoQ

Q1

Revenue

2,523

5,184

2,881

6,184

-358

-1,000

2,661

-138

Operating income

463

967

428

1,052

+35

-85

504

-41

Operating income ratio
(%)

18.3

18.6

14.8

17.0

-

-

18.9

-

EBITDA

597

1,268

581

1,340

+16

-72

671

-74

EBITDA Margin (%)

23.6

24.4

20.1%

21.6

-

-

25.2

-

Ordinary income

448

941

423

1,032

+25

-91

492

-44

Net income (loss)

311

612

358

825

-47

-213

300

+11

Copyright Drecom Co., Ltd. All Rights Reserved.

31. Review of Q2 (Jul-Sep) FY2022 Results

Forecast (July 28th) vs. Actual
Several applications led by the mainstay IP titles in their 7th year of operation performed well and contributed tothe upswing in revenue.
27(Unit: million yen)

190
Increase in sales

Fixed cost
reduction

967
750

Q2 FY3/22
Operating Income(Forecast (July 28th)

Q2 FY3/22
Operating Income (Actual)

Revenue

5.18 billion yen

Budget: 5.0 billion yen+3.6%

Operating income

0.96 billion yen

Budget: 750 million yen+28.9

Ordinary income

0.94 billion yen

Budget: 750 million yen+25.4%Net income

0.61 billion yen

Budget: 5.0 billion yen+22.4%

Copyright Drecom Co., Ltd. All Rights Reserved.

41. Review of Q2 (Jul-Sep) FY2022 Results

Analysis of Changes in Operating Income (Q1 FY2022 vs Q2 FY2022)
Sales decreased from the reaction to Q1. Developmental progress led the reduction (accounting for the increase incapitalized amount).

R&D(+) 27
Revenue
decline(-) 138

variable
cost
(-) 1

labor
(-) 48

Other
Expenses(+) 44outsourcing Advertising
Communication depreciationcosts(+) 33(-) 5(-)2(-) 41
Cost of Goods(-) 114

Other accounts
Transfer amount(+) 203

Increase in revenue (decrease in expenses)
Decrease in revenue (increase in expenses)

Q1 Operating
Income504

Copyright Drecom Co., Ltd. All Rights Reserved.

Q2 Operating
Income463

5

1. Review of Q2 (Jul-Sep) FY2022 Results

Topics by Business
We released D_CIDE TRAUMEREI at the end of September 2021.
We improved profitability while planting seeds for the future.
ØThe event held in September for the IP title in its 7th year of release was well received. The event, which was heldin September, was well received. Other IP titles also performed well, exceeding the initial forecast.

game

Ø

Many of the titles under management continue to post stable profits.

ØAt the end of September, D_CIDE TRAUMEREI was released, bringing the number of games in released to nine.
Announced the release of Mikonote.
Three other new titles are scheduled to be released in the second half of this fiscal year. Development phase isin the final stage.

Ø

The development of The Devil Prince and the Puppet will start in September. At the same time, we will strengthen
the fan community.

ØEstablished a new business division to launch new businesses in the webtoon domain. Promote businessdevelopment through collaboration and M&As.

New Business Development

Ø

Orders for Rooot continue to increase, and the number of companies using the service surpassed 30 by the endof July.

ØCopyright Drecom Co., Ltd. All Rights Reserved.

Development progress of location-based titles dealing with popular IPs to be developed using AROW.

6

Table of Contents

1. Review of Q2 (Jul-Sep) FY2022 Results

2. Medium-term (FY2023) goals

Forecast for Q3 (Oct-Dec) FY2022

4. appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

7

2. Medium-term (FY2023) goals

Medium-Term Goals

Drecom at the end of FY2023
Current Drecom

Copyright Drecom Co., Ltd. All Rights Reserved.

8

2. Medium-term (FY2023) goals

Medium-Term Goals (cont'd)
A comprehensive entertainment company that provides a variety of digital entertainment content based on IP.

1) New game hits
Main initiatives• New Japan Pro-Wrestling STRONGSPIRITS•(1) Further expansion of game business

Acquisition, cultivation and developmentof IP

Main initiatives• Turnaround of unprofitable titles during
the first half fiscal year.

(2) Breaking away from dependence on
the F2P model
Main initiatives• AROW (SaaS)

Mikonote
9 new hit titles currently in development.

Ensuring
stability

Promotinggrowth potential

Main initiatives• Wizardry VA (tentative)•

Evil Prince and the Puppet

3) Overseas development ofdomestic
titlesMainhitinitiatives•

DISGAEA RPG

4) Business development in areas other than
games

•

Rooot (SaaS)•

Load testing service (SaaS)•

Webtoon, light novels, comics

Main initiatives• AROW (Technology)(Content sales) <New>•

Load Testing Services (Technology)••

Rooot (Marketing)
Webtoon, Light Novels, Comics(Publication) <New>

Copyright Drecom Co., Ltd. All Rights Reserved.

92. Medium-term (FY2023) goals

Stabilizing the game business
From dependence on a small number of hit titles to a portfolio that earns stable revenue from multiple hit titles

2010

Revenue by titlesʼ release year

Total business profit of titles undermanagement

Release/operation start date of each title

Release/operation start date of each title

2011

2014

2015

2016

FY2020
Copyright Drecom Co., Ltd. All Rights Reserved.

2017

2018

2019

FY2021

2020

2,010
2010

2,011
2011

2,014
2014

FY2020

2,016
2016

2,017
2017

2,018
2018

2,019
2019

2,020
2020

FY2021102. Medium-term (FY2023) goals

IP spiral strategy
Aiming for “Spiral growth" placing IP at the core

Proprietary IP
with a competitive edge

VerticalGrowthx

Increase in overallvalue throughcross-media
deployment of IP・Diversification of
profitopportunities

MobileGames

consumergame

Cross-media development
animationx•

Diversification of businessmodelsHorizontal
GrowthWebtoon &Comic•

Overseas expansion•

Expanding know-how acquiredin the game businessto other areas

Copyright Drecom Co., Ltd. All Rights Reserved.

Music

Expanding know-how
acquired in the gamebusiness to other areas

IP

Light novels

Overseas
Deployment

Business Model
Diversification

112. Medium-term (FY2023) goals

Flow of IP development, Cultivation, and Monetization
Organize the characteristics of each entertainment domain, from IP development to monetization.
Seek development that matches the characteristics of each domain.

IP Development

Music

Light
novel

Webtoon /ComicsCopyright Drecom Co., Ltd. All Rights Reserved.

Fostering IP

Consumergame

Animation

Drama

Monetization of IP

Movie

Mobilegames

12

2. Medium-term (FY2023) goals

Launch of publishing division
We established a new business unit to develop new services. Its focus is IP development and producuction of
webtoons, light novels, and comic fields.
Characteristics of Drecom Contents

Marketplace

It can be said

The Potential of Webtoons and E-comics

NEXT<Webtoon>

Possibility of maximizing IP value by(Unit: billion yen)

CAGR: 14%
CAGR: 29%

expanding into the gaming business

100

Possibility of maximizing IP value

Mobile Games
marketplace
recognized as

59

21

an attractive

2012

2016

2020

The market is expected to grow at a CAGR of 14%※1 from 2016 to 2020, andx

Relatively easy to expand globally
Potential market is global in scale

will be worth 100 billion yen by 2020. Further growth and similar growth inIntensive

Japan is expected in the future.
Webtoon/comic content.

investment in

Build-up

key business< E-comics>
An area that will drive the growth of the e-book market, recording 33.8%※(continuity of story, ongoing andgrowth between 2019 and 2020.

repeated demand for past works)

Attracting growth in the nascent mobile game market

growth market.

areas that will
drive Drecom's
growthAn area with great potential
1 Source: KT Economics and Management Research Institute2 Source: "E-book Business Research Report 2021," published by Imprest Corporation

Copyright Drecom Co., Ltd. All Rights Reserved.

13

2. Medium-term (FY2023) goals

Launching the Publishing Division (cont'd)
We established a new business unit to develop new services. Its focus is IP development and producuction of
webtoons, light novels, and comic fields..
Medium-term strategy• Ownership of world-class IP and acquisition of production capabilities(IP acquisition, cultivation and development)• Development of business in multiple entertainment domains (businessdevelopment in domains other than games)• Multi-layered revenue models (moving away from dependence on F2P models)

STEP 2

STEP 1

Early on, we created hits in the areas of webtoon, lightnovels, and comics.
We have accumulated know-how within the company,and have been able togain a reputation as a hit producer
Acquirecompetitive
content
throughinternal andexternal
recruitment ofproven talentx

Acquirepersonnel
with provenlabel(story board)
production
skillsCopyright Drecom Co., Ltd. All Rights Reserved.

x

Digitalapproach topromotion andfan basebuilding

Expand hit webtoon, light novel, and comic works to othermedia such as games and anime.
Monetize your IP in a reproducible way.

Nurture IP
through thedevelopmentof hit titles
into games
and animationxStrengthen IP
fan basethrough crossmedia
promotionx

Own multiple
hit IPs.
Build aplatform
consisting of
our own IP.

142. Medium-term (FY2023) goals

Project Summary (as of September 30, 2021)
D_CIDE TRAUMEREI to be released at the end of September, with a total of 12 development projects underway
as of the end of September 2021.
Business

StatusDefinition

Number of projects

Operation

Titles in operation

12

Details
Ø Distribution by other companies: 9 titles＊
Ø In-house distribution: 3 titles
Ø Distribution by other companies

Game
Business

Production
development

Titlesunder development
near release

Development

9•

New Japan Pro-Wrestling STRONG SPIRITS•

Mikonote•

Overseas versions of domestic hit IP titles

Ø In-house distribution•

Wizardry VA (tentative)•

Evil Prince and the Puppet

Ø Unpublished

PrototypeOperation
New Business
Development
Development

Titles that are in thedevelopment stage before
production development

Services in operation
Servicesunder developmentwith a view to release

1
3
1

•

Location-based IP title using AROW•

Unannounced titles x 3

Ø Original titles developed by Studio Rex, a group company

Ø Load Testing Service
Ø Rooot
Ø AKROGLAM
Ø New services in the music field＊The number of titles in operation as of the end of September 2021. Series titles and titles developed overseas are counted as one title.

Copyright Drecom Co., Ltd. All Rights Reserved.

15

2. Medium-term (FY2023) goals

Summary of Titles Under Development (as of October 2021)
Two titles were released during Q2. Announced the release of Mikonote. The Devil Prince and the Puppet is in thedevelopment stage.
To bereleasedduringFY2022***

3

titlesTo bereleased
after
FY2023***

6

New/existingoverseas expansion

IP/OriginalDistribution Area

publishernewIPdomestic and overseas

other company

2) Mikonoteneworiginal

domestic and overseas

Drecom3) Unreleased Title 1

neworiginal

undecided

Drecom1) Wizardry VA (tentative)

new

IP

domestic and overseas

Drecom2) Location-based IP titles using AROW

new

IP

undecided

undecidednewIPundecided

undecided

4) Unreleased Titles 2

new

IP

undecided

undecided5) Unreleased Titles 3

neworiginal

undecided

undecided6) Unreleased Titles 4

Existing overseas
expansionIPoverseas

other company

Title Name

1) New Japan Pro-Wrestling STRONGSPIRITS

3) The Devil Prince and the Puppet"*Changed from proto-development to full development

titles*Release date has been changed.
Copyright Drecom Co., Ltd. All Rights Reserved.

16

2. Medium-term (FY2023) goals

Expansion of game business: Mikonote
Formed a capital and business alliance with MADORCA Inc. Collaborative title Mikonote to be released this winter.

• Mikonote Teaser site URL：https://www.mikonote.jp/• Official Twitter URL：@mikonote_JP（https://twitter.com/mikonote_JP）Ø

In August, we entered into a business and capital alliance agreement with MADORCA Inc. (referred to as "MADORCA") . We plan to release Mikonote
this winter as the first title of the collaboration.

Ø

MADORCA is an excellent developer with strengths in cell-look 3D technology, own proprietary engine, and a track record of developing high quality
games with a small team under excellent management. Determined to be an ideal partner to complement Drecom.

ØStarting with the collaboration on Mikonote, we plan to collaborate in both development and operation to achieve success in the mobile game market in
Japan and overseas.

Copyright Drecom Co., Ltd. All Rights Reserved.

172. Medium-term (FY2023) goals

Improve profitability of the game business
Two unprofitable titles as of Q2
Operating income of 12 titles＊under management in Q2 FY2022

loss

Profit＊The number of titles in operation at the end of September 2021. Series titles are counted as one title, including three "enza" titles and BOKU & DRAGONS.

Copyright Drecom Co., Ltd. All Rights Reserved.

18

2. Medium-term (FY2023) goals

IP Acquisition, Cultivation and Development: Evil Prince and the Puppet
User base continues to grow steadily. Game development to begin in SeptemberØ

Original IP under development; official twitter account to open in November 2019, official website in December 2019.

Ø

As of September 2021, the number of the official twitter account followers reached 83,000.
Opened an Instagram account and gained 44,000 followers at the end of October (+34,000 compared to July). The fancommunity is steadily expanding.

ØAn official store opened in April 2021, and e-commerce also launched.

Ø

Game development started in September 2021.

Copyright Drecom Co., Ltd. All Rights Reserved.

19

2. Medium-term (FY2023) goals

Business development in areas other than games
Rooot continues to expand with an increasing number of companies installing and using the service; developmentof IP location-based titles using AROW is also progressing

Service Summary
A service that allows users who "like" or "RT" atweet with a specific hashtag on Twitter to receive
points.
Ø Development of location-based game titles dealing withpopular IPs to be developed using AROW is underway.
Ø We have changed our target from our original assumption ofindividual developers to game development companies.
Commercialization progresses along with gamedevelopment.

Load Testing Service
Ø Released in December 2020, a fan community promotion service using Twitter.
Ø Steadily expanding, the number of installed titles exceeded 40 and the number ofcompanies installed the service reached 30 in October.

Ø Proposing solutions to issues that balance both businessand systems, utilizing experience gained through business
operations, including support for load testing prior toservice launch and advice on overall activities to improvesystem availability, with a focus on DevOps support forservices in operation.
Ø Launches Vulnerability Assessment Service in Cooperation
with Yelae Security Co.

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20

Table of Contents

1. Review of Q2 (Jul-Sep) FY2022 Results

2. Medium-term (FY2023) goals

Forecast for Q3 (Oct-Dec) FY2022

4. Appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

21

Forecast for Q3 (Oct-Dec) FY2022

Management Policy for the Current Fiscal YearØBring unprofitable titles back to profitability during the first half of FY2022 and maintain profitabilityØ

New titles scheduled to be released during FY2022 are sure to be hits.
New titles are expected to contribute to earnings in the second half of FY2022

Game
Business

Aim for earnings growth from the second half of FY2022

ØFor new business development in areas other than games, we will focus on music, light novels, and comics. We
secure necessary functions, know-hows, and human resources through in-house investment in music and throughalliances and collaborations including M&A in light novels and comics.

New
Business
Development

ØStabilize the existing game business and invest the profits generated in the creation of new entertainment services ingame peripheral areas.

ØThe office was relocated to accommodate remote work style. We are focusing on creating a strong and flexible
organization that will not waver even in the midst of major changes, such as developing a working environment thatcan secure excellent human resources and ensure diverse working styles.

Ø
Other

Continue to focus on group-wide performance expansion and business growth through further collaboration withsubsidiaries

Copyright Drecom Co., Ltd. All Rights Reserved.

22

Forecast for Q3 (Oct-Dec) FY2022

Outline of the outlook
QoQ revenue expected to increase contributed by new releases, year-end and new year's events, and anniversary events, but QoQ
profit down due to increase in advertising and promotion expenses for Mikonote and operation expenses for new releases
Q3
Oct-Dec
FY2022Q3 Oct-Dec FY2021(cumulative total)

Q2 Apr-Jun FY2022

Q1(Apr-Jun)
FY2022
ActualQ2(Jul-Sep)
FY2022
ActualQ3
Oct-Dec
FY2022
forecast(cumulative
total)

2,661

2,523

2,816

8,000

2,523

293

11.6

Variable cost

394

380

406

1,180

380

26

Fixed cost

1,762

1,680

2,078

5,520

1,680

R&D expenses

117

91

112

320

Capitalization

496

692

612

Advertisingexpenses

16

21

Operating income

504

Ordinary income
Net income

YoY

%

9,156

-1,156

-12.6

6.8

1,388

-208

-14.9

398

23.6

6,083

-563

-9.2

91

21

23.0

263

57

21.6

1,800

692

-80

-11.5

379

1,421

374.9

123

160

21

102

485.7

57

103

180.7

463

333

1,300

463

-130

-28.0

1,683

-383

-22.7

492

448

360

1,300

448

-88

-19.6

1,653

-353

-21.3

300

311

289

900

311

-22

-7.7

1,298

-398

-30.6

(Unit: million yen)

Revenue

Copyright Drecom Co., Ltd. All Rights Reserved.

QoQ%

Forecast

23

Table of Contents

1. Review of Q2 (Jul-Sep) FY2022 Results

2. Medium-term (fiscal year ending March 31, 2011) goals

Forecast for Q3 (Oct-Dec) FY2022

4. Appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

24

4. Appendix

Gaming Business Billing Sales (by Distribution Entity)
Distribution by other companies (other IP / enza titles)(Unit: million yen)

In-house distribution/ Chokotto
Farm)
In-house
distribution (Dabimasu(Dabimasu/ /BOKU
Boku &toDRAGONSDragon / Chokotto
Farm)

838

846

834

684

530

791
737

857

729

558

467

787

Updating
1,288

Q1

1,412

Q2

1,185

1,220

Q3

Q4

FY2019

1,374

1,444

Q1

Q2

755

514

1,635

1,837

1,726

1,753
1,419

1,398

Q3
FY2020

Q4

Q1

Q2

Q3
FY2021

Q4

1,590
1,341

Q1

Q2
(Forecast)
FY2022

Sales of titles distributed by other companies are recorded on a net basis, while sales of titles distributed by the Company are recorded on a gross basis.
Excludes sales from platforms.

Copyright Drecom Co., Ltd. All Rights Reserved.

25

4. Appendix

Game Business Billing Sales (by Release Period)
Before 2013

(Unit: million yen)

2014

2015

2016

2017

2018

2019

2020

2021

563

550

608
124
393

272

161

409

381

2
226

590
48
281

142
591

640

690

167

145

527

478

567
167
540

482

204
220

272
293

571

32

471
117
579

297

292

267

164
445
139

405
437
391

375

456

102
597

319

111

144

435

388

343
286

224

273

284

221

511

381

290

530

364

277

201

349

219

261

259

288

223

220

272

348
106

486

372

12

267

118

142

152

117

164

414

427

373

417

394

203

189

186

175

143

120

118

112

127

122

111

118

111

113

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY2019FY2020

FY2021

246
450

353
277
250
241
159
326

Q3
(Forecast)

FY2022

Sales of titles distributed by other companies are recorded on a net basis, while sales of titles distributed by the Company are recorded on a gross basis.
Excludes sales from platforms.

Copyright Drecom Co., Ltd. All Rights Reserved.

26

4. Appendix

Revenue by Business Segments (FY2019 ‒ Q2 FY2022)

Game
game

(Unit: million yen)

Media

61
127
10

0

222

129

222

14

21
44

100
267

73

132

3,051
2,643

2,644

2,473
2,120

Q1

Q2

Q3
FY2019Copyright Drecom Co., Ltd. All Rights Reserved.

Q4

3,242
2,882

2,962
2,671

2,640

Q4

Q1

2,384

2,181

2,103

Q1

Q2

Q3
FY2020

Q4

Q1

Q2

Q3
FY20212,479

Q2
FY202227

4. Appendix

Changes in Operating Income and EBITDA (FY2019 - Q2 FY2022)
Operating income

EBITDA(Unit: million yen)

800

759
624

582

565

428

196
128

204

504

463

222

198
86

-1

-14
-161

128

165

597

369

318

294

672

632

-126

-297
-418
Q1

Q2

Q3

FY2019Copyright Drecom Co., Ltd. All Rights Reserved.

Q4

Q1

Q2

Q3

FY2020

Q4

Q1

Q2

Q3

FY2021Q4Q1Q2FY202228

4. Appendix

ESG Initiatives
1) Establish a working environment that takes into account human

In order to achieve sustainable growth and maximize
shareholder value, and to ensure sound andappropriate management, Drecom is focusing onstrengthening governance, especially theappointment of female directors, the appointment ofmany independent outside directors with different
professional backgrounds, and active discussions.

rights, diversity, and flexibility
In addition to prohibiting discrimination in the workplace and implementing
appropriate labor management, we are focusing on maintaining the healthof our employees and creating a working environment that considers andrespects the life events and life stages of our employees by introducing
remote work and encouraging male employees to take childcare leave.
2) Support for employees' health promotion and skill development
We are taking the following measures to create anenvironment where employees can exercise theirfull potential in good health.
-Installation of massage rooms-Cafe space in partnership with a popular cafe
-Support for holding knowledge-sharing eventsand dissemination of technology-related information
3) Support for entrepreneurial communities

As a pioneer in the field of IT venture and student entrepreneurship, we are undertaking thefollowing initiatives to contribute to the development of future entrepreneurs andthe further revitalization of entrepreneurship in Japan.

1) Actively appointing female directors

As of July 2021, the ratio of female directors is 20%.
2) Balance between internal directors and independent outside

directors
As of July 2021, the ratio of independent outside directors to all directors
is 60%.
3) Diversity of Independent Outside Directors

The Company appoints experts in various fields, such as certified public
accountants, lawyers, and university professors, as independent
outside directors.

-Holding programming classes for junior and senior high school
students

4) Regular Board of Directors meetings and high attendance rate

-Support students by sponsoring programming classes

The Board of Directors meets regularly on a monthly basis to share
information on business conditions and management issues in a timely
manner and engage in active discussions. 24 Board of Directors meetings are-Providing office space for study groups and seminars

held annually for FY2021 and 28 meetings are held annually for FY2020.

-Speaking at and supporting various entrepreneurship-related events

Copyright Drecom Co., Ltd. All Rights Reserved.

29

4. appendix

PL Summary
Q2 FY2022(July-September 2021)

QoQ(Unit: million yen) (Unit: million yen)YoY

Q1 FY2022

Q2 FY2021(April-June 2021)(July-September 2020)

1,566

3.4%

-21.4

1,621

1,992

Payment fee

222

0.6

-17.5

220

269

Copyright fee

54

-0.9

40.5%

55

91

Labor cost

566

2.8

27.1

551

445

Outsourcing costs

573

7.6

5.2%

533

545

Communication

141

1.3%

2.7%

139

137

Software amortization

122-12.6%

15.0%

139

143

Depreciation and amortization

6

-67.7

6.0

20

6

Purchases of raw materials

480

31.2

31.7 %

366

364

Transfer to other accounts

-784

27.7

321.5

-614

-186

Work in process

-31

-

-

1

0

Other

214

3.2

-47.4

207

173

Total hawker fees

494

-7.8

7.2

535

460

Payment fee

28

0.4

7.3

28

26

Advertising expenses

21

28.6

102.8

16

10

Labor cost

216

17.3

-12.4

184

247

Recruitment costs

20

-44.3

406.2

36

4

R&D expenses

91

-22.5

3.2

117

88

Depreciation and amortization

5

-24.7

54.3

6

3

Amortization of goodwill

0

-

-

0

0

110

-23.6

37.8

144

80

Total cost

Other
Copyright Drecom Co., Ltd. All Rights Reserved.

30

4. appendix

BS Summary(Unit: million yen) (Unit: million yen)

Q2 FY2022

Q1 FY2022

Q4 FY2021(As of September 30, 2021)(As of June 30, 2021)(As of March 31, 2021)

Note

7,108

7,630

7,669

cash equivalent

4,949

5,299

5,288

Trade receivables

1,602

1,756

1,841

Other

556

574

539

Fixed assets

2,563

2,158

1,941

273

266

114

Mainly office equipment

1,388

1,065

878

Mainly released game apps and apps under development

0

0

0

Deferred tax assets

273

311

434

Other

627

515

512

Total assets

9,672

9,789

9,610

Current liabilities

2,525

2,924

3,181

1,013

1,051

1,024

Loans and bonds

877

1,012

740

Other

634

860

1,417

2,614

2,706

2,573

2,350

2,429

2,430

Other

263

277

143

Net assets

4,532

4,158

3,855

Total assets / Total liabilities and net
assets

9,672

9,789

9,610

Current assets

Buildings, tools, furniture and fixtures
Software assets(including suspense accounts)
goodwill

Accounts payable and accrued expenses

Fixed liabilities
Loans and bonds

Copyright Drecom Co., Ltd. All Rights Reserved.

Linked to changes in sales

Goodwill arising from M&A activities

Bank loans / bond issuanceBank loans / bond issuance31

Among the perceptions, strategies, plans, etc., described in this document, the outlook is not a historicalfact but contains uncertain elements. Actual results may differ materially from those in the forwardlooking statements for a number of reasons. Important factors that may affect actual business results
include economic conditions surrounding our business, social trends, and changes in relativecompetitiveness due to demand trends for the services we provide. Important factors that may affect ourbusiness performance include, but are not limited to, the following.