Digital Product Growth Support Through the PGT Business

「From the current consolidated fiscal year, the company integrated the EMC and PGT businesses operated through the previous consolidated fiscal year and began providing DGT (Digital Growth Team) services.」

「During the current consolidated fiscal year, PGT business revenue was ¥6,894 million (IFRS reference figure: up 33.7% from the previous fiscal year), and the number of digital creators belonging to the PGT business was 932 (up 209 from the end of the previous fiscal year).」

「In the PGT (Product Growth Team) business, from the fiscal year ending March 2022, the company changed from providing creators with specialist skills to a service focused on supporting the growth of customers' digital products (products and services). At companies that actively invest in digital and IT technology and have high growth potential, the company's digital creators form teams dedicated to individual customers, work closely with customer companies to promote digital product development, and support not only digitalization planning and initial construction or implementation but also the establishment of organizations capable of long-term operation. During the nine months of the third quarter of the current consolidated fiscal year, PGT business revenue was ¥5,000 million (IFRS reference figure: up 35.9% year on year), and the number of digital creators belonging to the PGT business was 931 (up 208 from the end of the previous fiscal year).」

「The company is actively establishing in-house companies specializing in high-value-added fields to create roles in new technology and growth support, strengthen profitability by achieving high fees and high utilization, and has decided to establish the following companies. ・Members AI Reach Company, established in July 2022, supports customers from selecting and implementing AI platforms through defining and operating solutions to AI utilization challenges. ・Members XR BOOSTER Company, established in August 2022, supports the business growth of customer companies through XR (Note 2) creators. …During the six months of the second quarter of the current consolidated fiscal year, …PGT business revenue was ¥3,245 million (IFRS reference figure: up 38.3% year on year), the number of companies receiving the PGT model, in which teams of 3 or more digital creators provide services dedicated to customer companies, was 46 (up 25 from the end of the previous fiscal year), value-added sales per customer company were ¥17.736 million, and the number of digital creators was 936 (up 213 from the end of the previous fiscal year).」

「In the fiscal year ending March 2023, the business also focused on customer success. Teams of digital creators dedicated to individual customers worked closely with customer companies, primarily digital service companies and large enterprises, to establish in-house digital organizations. Through the new service Product Growth Studio, which supports digital product (products and services) development, the company supported not only digitalization planning and initial construction or implementation, but also the establishment of organizations capable of long-term operation. During the three months of the first quarter of the current consolidated fiscal year, PGT business revenue was ¥1,559 million (IFRS reference figure: up 37.7% year on year), the number of companies receiving the PGT model, in which teams of 3 or more digital creators provide services dedicated to customer companies, was 43 (up 22 from the end of the previous fiscal year), value-added sales per customer company were ¥17.633 million, and the number of digital creators was 733 (up 10 from the end of the previous fiscal year), owing to the steady expansion of high-value-added specialist support services and improved profitability from higher utilization.」

「During the current consolidated fiscal year, the PGT business changed from its previous service of providing creators with specialist skills to a service focused on supporting growth through new technology areas. The business mainly supports high-growth internet and venture companies that actively invest in digital and IT technology, helping them grow their products through autonomous teams.」

「During the nine months of the third quarter of the current consolidated fiscal year, PGT business revenue was ¥3,680 million (IFRS reference figure: up 49.8% year on year), the number of customers was 187 (up 39 from the end of the same quarter of the previous year), and the number of digital creators was 707 (up 178 from the end of the previous fiscal year), owing to improved profitability from the steady expansion of high-value-added specialist support services.」

「The business continued to grow steadily, driven by the rapid expansion of specialist support services in areas such as data and UX (Note 2), as well as the engineering field, leading the expansion of the group as a whole. During the six months of the second quarter of the current consolidated fiscal year, PGT business revenue was ¥2,347 million (IFRS reference figure: up 48.8% year on year), the number of customers was 167 (up 38 from the end of the same quarter of the previous year), and the number of digital creators was 698 (up 169 from the end of the previous fiscal year), owing to improved profitability from the steady expansion of high-value-added specialist support services.」

「Against the backdrop of the thriving DX market, the business continued to grow steadily, driven by the rapid expansion of specialist support services in areas such as data and UX (Note 1), as well as the engineering field, leading the expansion of the group as a whole. During the nine months of the first quarter of the current consolidated fiscal year, PGT business revenue was ¥1,132 million (IFRS reference figure: up 42.4% year on year), the number of customers was 138 (up 31 from the end of the same quarter of the previous year), and the number of digital creators was 697 (up 168 from the end of the previous fiscal year), owing to the steady expansion of high-value-added specialist support services and improved profitability from higher utilization.」

「The digital talent business will be renamed the PGT (Product Growth Team) business from the fiscal year ending March 2022. It will evolve from providing digital creator talent with specialized skills into a business that provides, through teams, new service development and growth support for products and services that customer companies, particularly venture companies, develop using digital technologies (digital products).」