(1) Business Results
During the fiscal year ended March 31, 2024 (the period from April 1, 2023 to March 31, 2024),
the Japanese economy showed signs of an economic normalization as restrictions on activities
imposed because of the COVID-19 pandemic were relaxed, continuing with a gradual recovery.
However, the outlook remains uncertain due to notable risks including exchange rate fluctuations,rising prices attributable to prolonged overseas conflicts and other factors, a downturn in overseas
economies and the economic impact of the 2024 Noto Peninsula Earthquake.
Under these economic conditions, in the business domain where the Company and its
consolidated subsidiaries (hereinafter the “Group”) operate, customers' willingness to invest varied
from strong to weak depending on the sector. Overall, however, the Group attained solid results.
In the enterprises market, there has been a growing need for solutions that make use of DX andother cutting-edge technologies to provide new ways to work that are not constrained by locationsuch as an office or home. There is also increasing demand for the development of smart factories
in the manufacturing sector and related revisions to security. For the most part telecommunications
carriers have intensified their reluctance to make infrastructure investments since the previous
fiscal year. In terms of local 5G, due to delays in the full-scale adoption of 5G services amongtelecommunications carriers, prices of terminal devices have failed to come down anddevelopment of the market is lagging behind, but we have seen gradual trends towards installationfrom sectors where the strengths of local 5G such as high-level security and stability even in ahigh-speed wireless network are essential, such as power plants and the medical field. Looking at
national and local governments as well as public interest-related institutions, trends aimed atworkstyle innovations have materialized at national and local governments, and we have seen
growing needs to improve networks based on disaster prevention, disaster mitigation and security
themes. ICT investment related to roads and other aspects to transportation infrastructure has also
gained momentum.
Under this market environment, in May 2022 the Group announced "Shift up 2024," its mediumterm management plan. Based on the plan, to realize a Sustainable Symphonic Society andenhance the value provided to society, with DX and next-generation networks as the core, theGroup focuses on the shift to a new business model of spiral growth in tandem with customers,
through consultation from the customer perspective that leverages expertise informed by theCompany's implementation track record and familiarity with customer sites.
In the DX area, to evolve the workstyle innovation-related business the Company has pursued
since 2007 into a service that leads to further improvements in management and business strengthon the part of customers, the Company has worked on workstyle and process reforms that produce
innovation through the active utilization of DX technologies, and has used the technologies,
expertise and other strengths gained from those efforts to strengthen service development and theproposal model (offering model). In addition, to address the growing demand to promote DX at thenational and local government levels as well as the enterprise segment, the Company has worked
with partner companies to progressively release services compatible with the closed networks oflocal governments, and has accelerated the proposals submitted to customers by utilizing problemsolving showcases that enable customers to experience solutions by seeing them first-hand. TheCompany has also strengthened collaboration, including cooperative agreements on DX promotion
entered into with various local governments. In operations aimed at telecommunications carriers,
we have made progress developing a more efficient framework in the infrastructure area whereinvestment has been constrained, and have utilized our knowledge of customer businessprocesses to provide DX services that lead to operational streamlining, such as businessautomation services driven by DX technologies, as part of efforts to expand the domain in which
we operate.
In the next-generation network domain including 5G, the Company has strengthened its
response to the early-adoption market, while pursuing active initiatives to anticipation of the fullscale launch of the market, such as improving products and services through partnerships withoverseas firms and a venture startup originating from the University of Tokyo, and cultivating- 1 -engineers.
In terms of developing new business domains, leveraging ICT for on-shore aquaculture we haveestablished an on-shore salmon farming facility in Yamanashi prefecture to achieve the stablesupply of marine resources unaffected by weather and other conditions. We began shipments ofsalmon raised at the facility from August 2023.
To more quickly implement the results of these initiatives for customers as a business, in April
2023 we integrated new business development functions that had previously been company-wide
into each operating division. We have also stepped up human capital management efforts byactively promoting measures that enable each employee to fully utilize their capabilities. For
instance, we cultivate high-level human resources adept in consulting, DX and next-generation
networks and promote the implementation of health and productivity management, all in support ofgrowth strategies.

- 2 -We have also bolstered efforts to address climate change, an increasingly important socialissue. We utilize our new head office building following our March 2023 relocation as a testing
ground for the use of next-generation networks and the demonstration of cutting-edge DX
solutions, validating the use of office buildings as part of efforts to realize carbon neutrality. Inaddition, we are strengthening our businesses from the perspective of climate change action by
combining the various environmental services and expertise we have cultivated to date with all of
the Company's businesses. As part of these efforts in May 2023 we joined the GX League
program organized by the Ministry of Economy, Trade and Industry. On the disclosure front, inJune 2023 the Company issued its second round of disclosures based on the TCFD framework,
bringing forward its previous target for achieving carbon neutrality.

Operating under these conditions, the Group posted the following consolidated results in thefiscal year under review.
Net sales¥359,505 million 12.1% increase year on year
Operating income¥25,120 million 10.4% increase year on year
Ordinary income¥24,684 million 7.5% increase year on year
Net income attributableto owners of the parent¥15,329 million 11.0% increase year on year
<Reference>
Orders received¥377,234 million 6.0% increase year on year

Net sales increased 12.1% year on year to ¥359,505 million, reflecting increases in all segmentswith the full posting of sales from an extensive order backlog, amid strong orders particularly fromthe manufacturing sector, public-sector companies and government offices.
On the profit front, SG&A expenses expanded due to a rise in growth-related expenses such as
costs to introduce new mission-critical systems to improve the ability to develop proposals bystrengthening and implementing data-oriented management. Given full-scale sales expansion,
however, operating income rose 10.4% year on year to ¥25,120 million, with ordinary income up
7.5% year on year at ¥24,684 million, and net income attributable to owners of the parent up
11.0% year over year at ¥15,329 million.
Orders received were impacted by the reluctance of telecommunications carriers to invest, but
improved 6.0% year over year to ¥377,234 million, reflecting a solid expansion in corporate DX forworkstyle innovation, next-generation network security and other areas, and strong results in thearea of public infrastructure such as roads and transportation, with a large-scale project for agovernment office involving the procurement of equipment in Japan also contributing.
Operating results by business segment were as follows.
Net sales by business segment(Million yen)

DX Solutions
Business

Environmental
Network& SocialSolutions
Solutions
BusinessBusiness
83,088137,161

FY March 2024

129,710FY March 2023
Net Increase orsales (decrease)
Ratio ofincrease/(decrease) (%)

114,244

79,217

15,465
13.5

OtherTotal

9,545

359,505

119,241

8,099

320,802

3,870

17,9201,446

38,702

4.9

15.0

17.9

12.1

- 3 -

Reference: Orders received by business segment
DX Solutions
Business
FY March 2024
Order FY March 2023
s Increase orrec (decrease)
eiv Ratio of
ed increase/(decrease) (%)

NetworkSolutions
Business(Million yen)
Environmental& Social
Solutions
Business

OtherTotal

132,818

82,108142,596

19,710377,234

122,651

92,107

132,653

8,630

356,043

10,166(9,999)

9,942

11,08021,1908.3(10.9)

7.5

128.4

6.0

- 4 -1. DX Solutions Business:
While sales for a COVID-19-related business at a subsidiary operating contact center
businesses declined, net sales increased 13.5% year on year to ¥129,710 million on the back ofsales growth in existing areas in addition to strategic areas outlined in the Medium-termManagement Plan, including DX technology-driven workstyle innovation, next-generation
network security field.
2. Network Solutions Business:
Severe conditions persisted due to telecommunications carriers curbing capital investment, but
net sales rose 4.9% year on year to ¥83,088 million, thanks to increased sales frommanufacturing subsidiaries capturing demand related to newly designed banknotes in addition tohigher sales in social infrastructure businesses such as space and broadcasting.
3. Environmental & Social Solutions Business:
Buoyed by the full-scale conversion of the order backlog into sales, sales increased primarily
in the domestic ICT construction field such as roads and transportation, with sales also posted
for a large-scale equipment project ordered from a government office in the fiscal year underreview. As a result, net sales jumped 15.0% year on year to ¥137,161 million.

(ii) Outlook
We forecast that consolidated results in the fiscal year ending March 31, 2025 (April 1, 2024 toMarch 31, 2025) will be as shown below.
Net sales¥365 billion
1.5% increase year on year
Operating income¥29.0 billion
15.4% increase year on year
Ordinary income¥29.0 billion
17.5% increase year on year
Net income attributableto owners of the parent¥18.0 billion
17.4% increase year on year
In the fiscal year ending March 31, 2025, there are concerns over the ongoing effects ofuncertainties in the global situation and its associated impacts including soaring raw materials
prices, but in the ICT field that represents the Company's operating domain, we expect strong
performance overall, particularly in the areas of workstyle innovation centering on companies andinfrastructure supporting safety and security, despite ongoing reluctance toward capital investment
on the part of telecommunications carriers.
In light of the business environment described above, in our consolidated full-year forecast for
the fiscal year ending March 31, 2025 we expect to continue proactive investments aimed at
growth, including the development of new mission-critical systems to strengthen data-oriented
management and higher personnel expenses. However, we will aim to generate greater sales andprofits by accelerating the expansion of high value-added businesses such as workstyle innovationand next-generation network security, while taking steps to boost growth and earnings strength
through proactive initiatives in domains that play to our strengths, such as national security andupgrade demand for firefighting systems, areas expected to see a market resurgence.
Also note that the Group's financial results tend to show higher sales and profits at the end of
the fiscal year, in part due to SI and construction work for providers of social and public services,with profits weighted toward the second half of the year.

- 5 -(3) Profit Distribution Policy and Dividends for the Fiscal Year Ended March 2024 and the Fiscal
Year Ending March 2025
We view the distribution of a reasonable share of profits to shareholders as one of our top
management priorities, and make every effort to reinforce the Company’s managementfoundation, strengthen its financial standing, and increase its earning capacity. While we also
place a great deal of importance on increasing our corporate value through growth byaccelerating strategic investment such as M&A, strengthening the business foundation andcreating new businesses that will allow us to expand our future areas of focus, we strive tocontinually meet the expectations of our shareholders in our profit distribution.
In keeping with this approach, dividends per share for the fiscal year ended March 31, 2024 is
set at ¥24.50, as previously forecast. This combined with the interim dividend already paid brings
our annual dividend to ¥49.00 per share, an increase of ¥3.00 from the previous year and the17th consecutive fiscal year of increased dividends.
For the fiscal year ending March 31, 2025 we expect to pay interim and year-end dividends of¥28.00 each, amounting to an annual dividend of ¥56.00. This represents the Company's
intention to further enhance the level of shareholder returns, taking into account steady progressin strengthening operational capabilities and shareholder expectations.
Dividends per share (¥)
InterimYear end

Total

FY March 2024

24.50

24.50

49.00

FY March 2025 (Forecast)

28.00

28.00

56.00

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