To be a QA solution provider to support diversifying demands of the market by pursuing leading-edge quality technologies
In the year ended March 2022, we achieved strong financial results of both Enterprise Business and Entertainment Business. Enterprise Business, our focusing segment, has been able to sustain high growth of sales by steadily acquiring new projects through offering total solutions to contribute software quality improvement, such as manual testing, test automation, and security testing services. In addition, by executing several M&As for our future growth, we could expand the pool of engineers resource and acquire expertise in specialized areas such as ERPs, which further strengthened businesses foundation that we have built up over the years. In Entertainment Business, we improved profitability as a cash-generating businesses in our mainstay Domestic Debugging division and acquired new cross-border deals by strengthening group-wide collaboration in our growing Global and others division. As a result, both Enterprise Business and Entertainment Business achieved double-digit growth and record-high results, with net sales of 29,178 million yen (up 128.7% year on year) and operating income of 2,701 million yen (up 141.5% year on year) in the year ended March 31, 2022.
Going forward, we aim to keep strong growth centered on Enterprise Business with a rapid increase in software testing demand, while securing stable growth of Entertainment Business under circumstance with robust expansion of gaming market. In the fiscal year ending March 2023, in Enterprise Business we will implement measures to improve all three areas of “People,” “Technology,” and “Process” to the global standard level. We have established close relationships with the world's leading members, including Mr. Black and Mr. Hung, the worldwide authority for software testing, and Dr. Reid, the convener of ISO Software Testing Working Group 26 who developed the world's first global standard for software testing. With these collaborations, we will have new training programs to further enhance engineers’ skill (People) and will develop testing processes that comply with global standards (Process). And we are also promoting R&D aimed at utilizing leading-edge technologies through industry-academia collaborations (Technology), and expanding our capabilities through aggressive M&As. We are aiming to evolve into a “Global Quality Partner” that can provide optimal QA solutions at a high level to meet diversifying client demands backed by the acceleration of Digital Transformation (DX) and other changing environments.
By promoting these initiatives, we expect sales and operating income to increase significantly to ¥35,500mn (YoY 121.7%) and ¥3,290mn (YoY121.8%) for the year ending March 2023. Reflecting this planned substantial increase in profits, we are forecasting an annual dividend of ¥21.0, a record-high increase of ¥6.0 from the previous fiscal year. We will continue to take on new challenges with our corporate mission of "SAVE the DIGITAL WORLD".
We look forward to your continued understanding and support.
May 12, 2022
President and CEO Yasumasa Ninomiya