May 13, 2014

Copyright 2014 NSD CO., LTD.
V1.0.

Indices Target : Midterm Management Plan 2013.3 - 2015.3

ConsolidatedFirst Term
2013/3

Second Term
2014/3

Third Term
2015/3First Term
2013/3

Second Term
2014/3

Third Term
2015/3

Original Plan

Original Plan

Original Plan

Results

Results

Revised Plan

Net Sales

37,00040,00044,00036,63240,28545,000Operating Income

4,000

4,500

5,300

4,483

4,848

5,400

OPM(%)

10.8%

11.3%

12.0%

12.2%

12.0%

12.0%

Ordinary Income

4,100

4,600

5,500

4,530

5,076

5,500

Net Income

2,100

2,700

3,200

2,454

3,1653,200

ROE(%)

--

8.0%

6.0%

7.5%

8.0%

DOE(%)

--

3.0%

2.8%

3.2%

3.2%

Non-Consolidated

First Term
2013/3

Second Term
2014/3

Third Term
2015/3First Term
2013/3

Second Term
2014/3

Third Term
2015/3

Original Plan

Original Plan

Original Plan

Results

Results

Revised Plan

Net Sales

33,00036,00040,00032,47535,64540,000Operating Income

3,700

4,200

5,000

4,036

4,817

5,200

Ordinary Income

4,100

4,500

5,300

4,427

5,266

5,400

Net Income

2,200

2,700

3,100

2,651

3,547

3,500

Copyright 20141FY March 2014 Topics:Our approach to the Midterm Management Plan 2013.3 - 2015.3
20%

1

Net sales in Information
Services segment

Boost further competitiveness in Made-to-Order
Contract Development

NSD expanded business with existing customers and acquired newcustomers by utilizing the accumulated technological skills and know-how,and by taking the following actions- New customers and new business acquisitions have been enhanced dueto the efforts of new sales department. We keep making these efforts toenhance these businesses by solution proposals.
- Improvement of quality and productivity by enhanced process control2

10.9%

10%

10.9%

8.9%

2.9%

-2.2%

0%

Sales Average growth rate ofMade-to-Order Software in theinformation service industry

1.8%

-10%
-17.3%

Ref: METI-20%
2010

Aim at becoming a leader in a niche market ofServices-Provision-oriented Solution Application

2011

2012

2013

2014

TeleHealth is the services connecting patients to clinicians by using
telecommunication technologies. FIND is used for the smart device application
developed with local government which contributes to the regional revitalization.
W e are going to develop new products and services as they are.
Business Innovation Co., Ltd., one of our newly setup companies establishedin 2013, promotes the businesses as a distributor.

3・4

Actively seek M&A opportunities
and Promote global business expansion

・May 2012 Established NSD International, Inc. in New York, USA.
・Oct. 2012 Established Renbenxindong Technology Ltd. in Beijing, China.
・Jan. 2013 Entered into strategic partnership with LOTTE DataCommunication Co., a leading IT company in Korea.
・Apr. 2013 Acquired Viterion TeleHealthcare business fromBayer HealthCare LLC.
・Jul. 2013 Founded RX Technology Japan Ltd. as a subsidiary ofRenbenxindong Technology Ltd.
・Feb. 2014 Founded Chengdu Renbenxindong Technology Ltd. asa subsidiary of Renbenxindong Technology Ltd.

Copyright 2014

Oct. 2012: Renbenxindong Technology Ltd. EstablishedMar. 2013: Set up a branch office in Shanghai
Jul. 2013: Established RX Technology Japan Ltd. in Japan
Jul. 2013: Founded RX Technology Japan Ltd. as a subsidiary ofRenbenxindong Technology Ltd.
May 2012: Established NSD International, Inc.
Apr. 2013 : Acquired Viterion TeleHealthcare business2

Our policy on returns to shareholders
Returns to our shareholders have been regarded as one of the top priorities among management
issues. It is our basic policy to maintain a steady payout as well as to pay returns flexibly to theshareholders by considering the performance and the trend of the share price comprehensively.
１Maintain a steady payout aiming at the ratio of 40% ※ and over.

２

Consider flexibly share buy-back, taking the performance and the trend of the shareprice into account comprehensively.

※ Revised from 30% on May, 2014

Changes in Dividends & Payout Ratio, and Share Buy-Back

Cancellation of Treasury
Stock of 3million wasexecuted on March, 2012.

1,979
1,979

1,000
1,000

Note: The total payout of Dividends doesn’t include dividend paid to ESOP Trust accounts.

Copyright 20143