Orchestra : Results of Operations for the Fiscal Year Ended December 31, 2021

Results of Operations for the Fiscal Year Ended December 31, 2021

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Contents

01 Financial Overview: FY2021

02 Earnings Forecast: FY2022

03 Business Summary/Growth Strategy

04 Appendix

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01 Financial Overview: FY2021

FY2021 Consolidated Results

Posted all-time high sales and earnings.

Due to significant increase in profits, stock compensation expenses ¥127million recorded in 3Q, considering the expected achievement of performance conditions for stock options. Cumulative operating profit before recording stock compensation expenses was ¥1,390 million (+95.4% YoY).

（Millions of yen）	FY2021	FY2020	% Change	4Q/FY2021	4Q/FY2020	% Change
Net Sales	16,640	11,825	40.7%	4,753	3,331	42.7%
Gross Profit	3,883	2,510	54.7%	1,133	752	50.7%
SG&A expenses	2,620	1,823	43.7%	777	532	46.1%
Operating Profit	1,262	686	84.0%	355	220	61.7%
EBITDA	1,512	817	84.9%	393	268	46.7%
EBITDA margin	9.1%	6.9%	2.2pt	8.3%	8.0%	0.2pt
Ordinary Profit	1,286	683	88.3%	367	220	66.5%
Profit attributable to owners parent	757	435	73.8%	237	157	50.6%
Reference: Profits before recording stock compensation expenses
Operating Profit	1,390	711	95.4%	355	245	45.0%
Ordinary Profit	1,414	708	99.6%	367	246	49.3%
Profit attributable to owners parent	884	460	92.0%	237	183	29.7%	4

FY2021 Segment Results

Strong growth continued in all businesses despite the COVID-19 pandemic. Cloud integration was the main reason for the rapid growth of the DX business. Digital Marketing also continued to grow, posting all-time high sales and earnings.

Segment	FY2021	FY2020	% Change	4Q/FY2021	4Q/FY2020	% Change
（Millions of yen）
Digital Transformation(DX) business
Net sales	4,104	3,390	21.1%	1,087	938	15.9%
Segment profit	462	318	45.1%	131	119	10.5%
Digital Marketing business
Net sales	11,926	7,955	49.9%	3,487	2,263	54.1%
Segment profit	1,712	1,029	66.4%	455	287	58.7%

Posted all-time high sales and

record-high 4Q earnings

while investment in human

resources to enhance sales and

development team

Posted all-time high sales and

earnings.

Orders from current and new customers increased steadily.

Other businesses

Net sales	696	496	40.3%	211	134	57.0%
Segment profit	△ 21	△ 20	-	△ 42	△ 11	-

Losses from upfront investments in new businesses were mostly offset by earnings from Urala, an app for fortune telling chat consultations.

* Beginning in 2021, some corporate expenses that were not assigned to a business segment in prior years are now assigned to a business segment by using reasonable standards. The purpose is to

show the performance of business segments more appropriately. Earnings for 4Q 2020 have been revised for consistency with this change.	5
* Net sales of each business segment include intersegment sales between the reportable segments.