Consolidated Financial Summary
What does the TIS INTEC Group do?

TIS Inc., and consolidated subsidiaries
Years ended March 31(Millions of yen)

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Net sales

323,173

327,417337,834

346,647

361,025

382,689

393,398

405,648

420,769

443,717448,383

Cost of sales

261,145

266,159

276,935

283,881294,927

312,153

317,440

321,286

325,985

337,820334,671

Gross profit

62,027

61,25860,89962,766

66,09770,53575,95884,362

94,784

105,896

113,712Gross profit ratio (%)

19.2%

18.7%

18.0%

18.1%

18.3%

18.4%

19.3%

20.8%

22.5%

23.9%

25.4%

Performance Status

49,20945,63642,72743,25544,97646,09948,93851,61856,74061,05767,963

15.2%

13.9%

12.6%

12.5%

12.5%

12.0%

12.4%

12.7%

13.5%

13.8%

15.2%

Operating income

12,81815,621

18,171

19,51021,121

24,43627,01932,74338,043

44,83945,748Operating margin (%)

4.0%

4.8%

5.4%

5.6%

5.9%

6.4%

6.9%

8.1%

9.0%

10.1%

10.2%

Recurring profit

12,625

15,393

17,44018,971

21,251

24,521

27,092

32,79538,60346,07039,257

Recurring profit ratio (%)

3.9%

4.7%

5.2%

5.5%

5.9%

6.4%

6.9%

8.1%

9.2%

10.4%

8.8%

Net income attributable to owners of the parent company

5,985

2,135

5,868

7,913

10,275

12,67816,306

20,62026,034

29,411

27,692

Net income ratio (%)

1.9%

0.7%

1.7%

2.3%

2.8%

3.3%

4.1%

5.1%

6.2%

6.6%

6.2%

Value Creation Process

Selling, general and administrative expenses
Selling, general and administrative expenses ratio (%)

Financial Position
128,455

142,442

138,219

143,519

140,450

166,666

152,162

162,064

176,231

181,543

229,965

172,620

167,560

164,083

170,091

205,401

169,828

185,459

204,889

194,426

201,356

221,106

Software assets

11,337

12,197

11,76912,92813,252

15,42816,056

16,866

19,17722,887

27,797

Total assets

301,076

310,003302,302313,610

345,851

336,495

337,622366,954

370,657

382,899

451,072

Current liabilities

73,09083,06591,06372,79077,666

91,50878,67681,31091,12688,479100,915

Non-current liabilities

76,87575,97253,07976,316

79,39564,44759,74359,344

45,121

46,46270,726

Total liabilities

149,965

159,038

144,143

149,107

157,062

155,955

138,420

140,655

136,248

134,942

171,642

Net assets

151,110

150,965

158,159

164,502

188,789

180,539

199,202226,298

234,408

247,957

279,429

Total liabilities and net assets

301,076

310,003302,302313,610

345,851

336,495

337,622366,954

370,657

382,899

451,072

Total interest-bearing debt

77,45476,51560,55058,86952,114

46,15835,14432,876

26,89322,294

43,629Cash flow from operating activities

27,23623,65821,51525,77022,93825,496

18,95236,38637,55838,56933,345

Cash flow from investing activities(18,957)(15,158)(14,391)(5,334)(17,744)

8,688(23,488)(14,202)(1,213)(26,437)(17,522)

Cash flow from financing activities(18,755)(4,230)(19,883)(5,872)(19,067)(14,979)(18,327)(10,543)(16,773)(14,544)

12,484

Medium-Term Management Plan

Current assets
Fixed assets

Cash Flow Status

8,279

8,500

7,124

20,436

5,194

34,184(4,536)22,18436,345

12,132

15,82336,492

41,11928,43343,142

29,48548,65125,73037,54557,08354,68482,924

Capital expenditures

18,325

14,096

12,287

12,544

16,873

14,21015,15916,907

13,334

16,70225,085

Depreciation

12,30812,745

12,92012,454

12,80911,952

11,801

12,572

12,783

12,02013,318

Research and development expenses

1,062

962

1,002

853

1,097

1,086

1,178

996

1,003

1,702

1,789

Amortization of goodwill

1,901

1,882

1,741

1,166

1,052

339

326

289

289

171

312

Goodwill balance at the end of the term

5,551

3,672

1,914

830

2,021

1,393

1,332

1,118

503

355

2,550

Platform that Supports Value Creation
Process (ESG section)

Free cash flow
Cash and cash equivalents at the end of the term
Others73

Corporate Data

Notes: 1. Software assets indicates the total sum of software and software in progress.
2. Total interest-bearing debt indicates the total sum of borrowed money and corporate bonds.
3. Free cash flows indicate the total sum of cash flows from operating activities and cash flows from investing activities.
4.	From the first quarter of fiscal 2019, TIS applies “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board ofJapan, Statement No. 28, February 16, 2018). Figures for fiscal 2018 have been retrospectively restated in line with the aforementioned partial amendments.

74

What does the TIS INTEC Group do?

(Millions of yen)

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

427,210439,748452,284

122,067

132,935

133,121147,214

Order Status (Total)
Orders received during the term
Order backlog at year-end
Order Status (Software development)
Orders received during the term

162,287

174,680

179,352

172,721

199,842

207,345

208,307219,225

238,298

246,330

237,323

Order backlog at year-end

47,967

57,77862,05558,86971,09569,96164,751

67,71675,54979,277

83,797

Equity ratio (%)

47.7%

46.3%

49.8%

49.9%

53.3%

52.5%

57.8%

60.4%

62.0%

63.3%

60.0%

Net income to equity capital ratio (ROE) (%)

4.2%

1.5%

3.9%

5.1%

6.0%

7.0%

8.8%

9.9%

11.5%

12.5%

10.8%

Total asset turnover ratio

1.05

1.07

1.10

1.13

1.09

1.12

1.17

1.15

1.14

1.16

1.08

Financial leverage

2.18

2.13

2.08

2.01

1.93

1.89

1.81

1.69

1.63

1.58

1.66

Recurring profit to total assets ratio (ROA) (%)

4.1%

5.0%

5.7%

6.2%

6.4%

7.2%

8.0%

9.3%

10.5%

12.2%

9.4%

Interest-bearing debt ratio (%)

25.7%

24.7%

20.0%

18.8%

15.1%

13.7%

10.4%

9.0%

7.3%

5.8%

9.7%

Payout ratio (%)

46.9%

74.0%

31.4%

27.7%

25.6%

22.7%

19.0%

16.6%

22.8%

25.7%

31.9%

Total return ratio (%)

46.9%

74.0%

31.4%

27.7%

30.4%

35.3%

31.9%

30.5%

39.0%

39.8%

42.8%

68.19

24.33

66.86

90.16

117.40145.22189.02241.44307.83350.35110.51

—

24.33

66.83

90.12

—

—

—

—

—

—

—

32.00

18.00

21.00

25.00

30.00

33.00

36.00

40.00

70.00

90.00

35.00

1,636.56

1,636.72

1,714.88

1,782.23

2,108.19

2,031.07

2,265.76

2,602.07

2,719.79

2,890.27

1,078.60

Stock price at fiscal year-end (yen)

870

968

1,243

1,694

2,193

2,664

2,832

4,210

5,240

5,361

2,641

Highest stock price during the term

1,377

978

1,328

1,854

2,257

3,085

2,959

4,410

6,040

7,320

2,670

Lowest stock price during the term

655

654

798

1,020

1,524

2,156

2,180

2,742

4,060

4,045

1,723

Price earning ratio (PER) (times)

12.8

39.8

18.6

18.8

18.7

18.3

15.0

17.4

17.0

15.3

23.9

Value Creation Process

Financial Indicators

Net income per share—basic (yen)*
Net income per share—diluted (yen)*
Annual dividends per share (yen)*
Net assets per share (yen)*

Medium-Term Management Plan

Per share data

Stock information

0.59

0.72

0.95

1.04

1.31

1.25

1.62

1.93

1.85

2.45

76,376

84,979109,121

148,714

192,521233,870

248,618

369,592

460,014

470,637

695,553

Number of outstanding shares at fiscal year-end (thousands)

87,78987,78987,78987,78987,78987,78987,78987,78987,78987,789263,367

Number of treasury stock at fiscal year-end (thousands)

15

16

19

4

320

864

1,701

2,613

3,358

3,952

12,595

Average number of shares during the term (thousands)

87,77287,77387,77187,77487,52287,30586,26885,406

84,574

83,948250,574

323,173

327,417337,834

346,647

361,025

382,689

393,398

405,648

420,769

443,717448,383

Credit card

52,61445,084

48,84649,40253,74359,27465,00673,31473,64875,11879,265

Banking

25,81926,702

26,23029,04925,444

27,86728,23327,452

26,58330,10030,648

Price book-value ratio (PBR) (times)

Platform that Supports Value Creation
Process (ESG section)

0.53

Aggregate market value (millions of yen)

Sales by Client Sector
Net sales

23,44822,931

23,83625,26924,972

26,33925,356

26,262

27,27929,27430,14019,17823,416

21,33723,481

23,312

20,406

20,857

22,127

19,502

24,28917,863

Assembly-based manufacturing

46,32340,36338,82440,90445,78549,45542,723

43,77746,02845,73945,103

Processing-based manufacturing

26,13531,074

38,46833,84334,96035,061

36,95338,36638,081

38,99842,424

Distribution

22,87026,26727,39830,00931,77532,702

31,77328,87232,90833,976

31,679Services

70,01771,01273,42572,666

77,53579,60189,607

93,258103,531

112,722

118,517

Public institutions

28,01530,10728,22530,39329,89136,60337,00235,92334,86336,286

33,649Others

8,754

10,456

11,241

11,626

13,604

15,376

15,882

16,292

18,343

17,20919,090

Corporate Data

Insurance
Other finance＊The Company executed a stock split, with each share of common stock split into three shares, effective April 1, 2020.

75

76

Non-Financial Summary
What does the TIS INTEC Group do?

TIS Inc., and consolidated subsidiaries
Compilation period: April 1 to March 31 of each year or the base date

Scope ofRelateddatacollection materiality

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal2020

Independent
Practitioner's
Assurance

Fiscal2021

Employee-related data (Note 1)

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Independent
Practitioner's
Assurance

☑	
 
☑	
 

Environmental data

*Averages are calculated as simple combined averages orweighted averages.

Scope 1 emissions (metric tons) (Note 3)

B

2-f

976

958

885

745

760

83,76978,12571,09664,48865,867

15,357

15,63815,948

16,10917,497

Scope 2 emissions (metric tons) (Note 3)

B

2-f

C-1

1-a

11,306

11,435

11,52911,56012,342

Scope 3 emissions (metric tons)

C-2

2-f

365,595

372,053

Number of female employees

C-1

1-a

4,051

4,203

4,419

4,549

5,155

Category 1 (purchased goods and services)

C-2

2-f

304,297

287,633

Percentage of female employees

C-1

1-a

26.38%

26.88%

27.71%

28.24%

29.46%

Category 2 (capital goods)

C-2

2-f

40,98665,782

Number of non-Japanese employees

C-1

1-a

141

156

155

155

1,161

Category 3 (fuel-and energy-related activities)

C-2

2-f

9,900

9,796

Average age

C-2

1-a

38.35

38.73

38.85

39.06

39.23

Category 4 (upstream transport and delivery)

C-2

2-f

698

215

Average age of male employees

C-2

1-a

39.49

39.87

40.02

40.27

40.50

Category 5 (waste generated in operations)

C-2

2-f

1,118

345

Average age of female employees

C-2

1-a

35.22

35.63

35.87

36.04

36.11

Category 6 (business travel)

C-2

2-f

1,987

2,025

Average length of service (years)

C-2

1-a

13.61

14.40

12.88

12.84

13.34

Category 7 (employee commuting)

C-2

2-f

6,607

6,256

Average length of service of male employees (years)

C-2

1-a

14.21

15.49

13.69

13.95

14.24

Energy consumption (Electricity Mwh)

B

2-f

167,907

157,623

149,523

143,383

141,620

Average length of service of female employees (years)

C-2

1-a

11.03

11.47

10.78

11.04

11.23

Energy consumption (Heavy oil kL)

B

2-f

26

28

32

25

21

Percentage of employees aged 60 and over

C-2

1-a

1.69%

1.97%

2.17%

1.71%

3.18%

Energy consumption (Light oil kL)

B

2-f

11

11

10

0

0

Number of employees with a disability (Total) (Note 2)

D

1-a

390.5

186.0

202.5

211.5

221.5

Energy consumption (City gas, km3)

B

2-f

389

379

343

302

313

Percentage of employees with a disability (Note 2)

D

1-a

1.97%

2.14%

2.28%

2.35%

2.40%

Energy consumption (kerosene kl)

B

2-f

1

Number of employees in management positions

C-2

1-a

3,238

3,328

3,443

3,609

3,782

Energy consumption (steam GJ)

B

2-f

1,301

Percentage of employees in management positions

C-2

1-a

21.08%

21.28%

21.59%

22.40%

22.90%

Industrial waste (ton)

C-2

2-f

Number of male employees in management positions

C-2

1-a

2,999

3,056

3,147

3,278

3,410

Number of female employees in management
positions

C-2

1-a

239

272

296

331

372

Social contribution expenses (millions of yen)

F

2-e

20

115

Percentage of female employees in management
positions

C-2

1-a

7.38%

8.17%

8.60%

9.17%

9.84%

Political contributions (millions of yen)

F

2-e

—

A

3-g

C-2

1-b

171.98168.37166.36

162.64162.89Development loss rate

Average total working hours per month
Average non-scheduled hours worked per month

C-2

1-b

22.64

20.63

19.87

18.35

19.95

Results of customer satisfaction surveys (See P.66)

F

Percentage of annual paid leave taken

C-2

1-b

56.74%

67.63%

72.99%

75.69%

66.26%

Number of directors (Note 4)

F

Number of employees on childcare leave

C-2

1-b

445

463

447

467

537

Number of female directors (Note 4)

Number of male employees on childcare leave

C-2

1-b

29

27

38

53

80

Number of employees working shorter hours tocare for young children

C-2

1-b

549

670

681

679

638

Number of male employees working shorter hours tocare for young children

C-2

1-b

9

12

9

10

9

Number of employees on nursing care leave

C-2

1-b

8

13

13

19

9

Number of employees working shorter hours tocare for elderly family

C-2

1-b

2

3

3

6

6

Turnover rate

C-2

1-b

4.17%

4.63%

4.82%

5.03%

3.27%

Spending on learning and research (millions of yen)

C-2

1-c

1,702

1,805

1,915

1,534

Number of days spent on learning and research perperson

F

1-c

7.03

12.54

14.39

14.20

12.5

Average annual income (10,000 yen)

F

1-c

653.3

668.8

681.3

701.9

706.2

Results of employee awareness surveys

F

1-c

34%

38%

45%

48%

56%

Results of employee awareness surveys

C-2

1-c

38%

46%

Number of new graduate recruits (April 1)

C-2

1-a

521

700

663

720

679

Number of regular recruits (recruited in each fiscal
term)

C-2

1-a

309

266

339

386

271

290

143

99

80

—

—

—

—

2.1%

0.9%

0.9%

0.6%

0.8%

3-g

61.3%

69.1%

68.2%

72.7%

69.0%

4-j

10

10

9

9

9

F

4-j

0

0

1

1

1

Percentage of female directors (Note 4)

F

4-j

0.0%

0.0%

11.1%

11.1%

11.10%

Number of external directors (Note 4)

F

4-j

3

3

3

3

3

Percentage of external directors (Note 4)

F

4-j

30.0%

30.0%

33.3%

33.3%

33.30%

Other non-financial data

Related materiality (See P. 21)
1.	Create a society in which diverse
human resources are engaged andthrivea. Promote diversity
b. Promote workstyle reformsc. Human resource development
and training emphasizing selffulfillment

2.	Create a comfortable society throughinnovation and joint activitiesd. Promote a safe, convenient social
foundation that supports people
and societye. Connect with stakeholders andpromote joint activities
f. Reduce environmental impact

3.	Create a safe society throughhigh-quality services
g. Continuous quality improvement
h. Information security
i. Safeguard personal information

Platform that Supports Value Creation
Process (ESG section)

4.	Enhance corporate governance andearn the trust of society
j. Corporate governancek. Compliancel. Risk management

Scope of data collection
A. TIS INTEC Group consolidated
B.	TIS, INTEC, AGREX, QUALICA, AJS, SorunPure, Chuo System, TIS System Service, TIS Solution Link, TIS Tohoku, TIS Total Service, TIS Nagano, TIS West Japan, TIS
Hokkaido, and NEOAXIS
C-1. TIS, INTEC, AGREX, QUALICA, AJS, TIS System Service, TIS Solution Link, and MFEC (non-consolidated basis, from fiscal 2021)
C-2. TIS, INTEC, AGREX, QUALICA, AJS, TIS System Service, and TIS Solution Link
D. TIS, SorunPure, and affiliated specially recognized companies under the Group umbrella (11 companies in fiscal 2017 and five companies since fiscal 2018)
E. TIS and INTEC
F. TIS parent
Notes: 1.	Figures for fiscal 2017, fiscal 2018, fiscal 2019, fiscal 2020, and fiscal 2021 are based respectively on April 1, 2017; April 1, 2018; April 1, 2019; and April 1,
2020; and April 1, 2021.
2.	Figures for fiscal 2017, fiscal 2018, fiscal 2019, fiscal 2020, and fiscal 2021 are based respectively on June 1, 2017; June 1, 2018; June 1, 2019; June 1,
2020; and June 1, 2021.
3.	Scope 1, Scope 2 emissions are calculated using the following formulas.
		 Scope 1 emissions: F uel consumption x heating value per unit x CO2 emission factor. CO2 emission factor based on Law Concerning the Promotion of the
Measures to Cope with Global Warming.
		 Scope 2 emissions: C onsumption of electricity/steam x CO2 emission factor. CO2 emission factor based on Act on the Rational Use of Energy.
4.	Figures for fiscal 2017, fiscal 2018, and fiscal 2019, fiscal 2020, and fiscal 2021 are based respectively on June 30, 2016; June 30, 2017; June 30, 2018; andJune 30, 2019; and June 30, 2020.

Corporate Data

https://www.tis.com/documents/en/ir/finance/annual_report/assurance_ar2021.pdf

1,035

Medium-Term Management Plan

C-1

Number of male employees

Value Creation Process

Number of employees<Independent Assurance Report>
Non-financial data marked with a checkmark ☑	 for the year ended March 2021 in the Integrated Report 2021, has received independentpractitioner's assurance from Ernst & Young ShinNihon LLC. to improve data reliability.

77

Scope ofRelateddatacollection materiality

78

Corporate Data

Overseas Subsidiaries(As of March 31, 2021)
Company name
FoundedEstablished
Main business

Paid-in capital
Number of shares authorized
Number of shares issued
Number of shareholders
Stock listing
Number of employees(consolidated)

TIS Inc.
April 28, 1971
April 1, 2008
Outsourcing services, software development, and solution services regarding investments in
information technology. Management and business execution of group companies that carryon information and communication business
Sumitomo Fudosan Shinjuku Grand Tower,
17-1, Nishi-Shinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, Japan
Tel. +81-3-5337-7070
Fax +81-3-5337-7555¥10 billion
840,000,000 shares
263,367,294 shares
13,402
Tokyo Stock Exchange, First Section (Securities code: 3626)● China● Thailand● Vietnam

QUALICA (SHANGHAI) Inc.
TISI (Shanghai) Co., Ltd.

I AM Consulting Co., Ltd.
(Six subsidiaries under the company)
MFEC Public Company Limited(11 subsidiaries under the company)
PromptNow Co., Ltd.
TISI (Thailand) Co., Ltd.
QUALICA (Thailand) Co., Ltd.

AGREX DNP Vietnam Co., Ltd.

● Singapore

QUALICA Asia Pacific Pte. Ltd.

Main equity method affiliates● China● Indonesia

Shanghai CardInfoLink Data Service
Co., Ltd. (CardInfoLink)(Voting rights ownership ratio 18.2%,
11 subsidiaries under the company)

PT Anabatic Technologies Tbk(Voting rights ownership ratio 37.3%,
acquired convertible bonds with stockacquisition rights,
53 subsidiaries under the company)■ Major Shareholders(As of March 31, 2021; Thousands of Shares)(As of March 31, 2021)

Individuals andOthers38,149(14.5%)

Main consolidated subsidiaries
Domestic subsidiaries
TIS and maingroup
companies

Shareholding
ratio

—

INTEC Inc.

TIS100%

AGREX INC.

TIS100%QUALICA Inc.

TIS80%Komatsu20%

AJS Inc.

TIS51%
Asahi Kasei 49%

Focuses on credit card companies but pursues business opportunities in awide range of sectors, including services and manufacturing. Promote toexpand payment business. Merged with pure holding company IT Holdings
Corporation in July 2016 and became operating holding company.
(Incorporated April 1971)
Focuses on megabanks and life insurers, and assists with CRM for regionalbanks and offers a wide selection of services to regional public corporations,particularly in the Hokuriku region.
(Established January 1964)
Leading company in BPO sector, with emphasis on insurance industry needs.
Turned into a wholly owned subsidiary in March 2015, becoming corecompany for BPO business within the Group.  (Established September 1965)
Formerly, information systems subsidiary of Komatsu. Focuses on assemblybased manufacturers, mainly those under the Komatsu Group umbrella,
while expanding business with companies in the distribution and restaurant
sectors.
(Established November 1982)
Formerly, information systems subsidiary of Asahi Kasei. Focuses oncompanies under the Asahi Kasei Group umbrella.
(Established March 1987)* Merged into AGREX Inc. in April 2021.
79

TIS System Service Inc.
TIS Solution Link Inc.
TIS Tohoku Inc.
TIS Total Service Inc.
TIS Nagano Inc.
TIS West Japan Inc.

22,199(11.1%)

Total 263,367(100%)

Other Domestic
Institutions
27,247(10.3%)

110,205

8,708(7.9%)■ Rating

35,1353,010(8.6%)

Japan Credit Rating Agency, Ltd.

20,146

1,759(8.7%)

16,501946(5.7%)TIS Hokkaido Inc.
Registration Network, Ltd.
NEOAXIS Co., Ltd.*
Nexway Co., Ltd.
HOKKOKU INTEC SERVICE Inc.
MicroMates Corp.

Financial Instruments
Business Operator
4,976(1.9%)

9.05
6.62
4.33
2.66
2.46
2.14

4,796

1.90

4,412

1.75

4,340
4,300

1.72
1.70

Notes: 1.	The Company holds 10,776 thousand shares of treasury stock. These areexcluded from the table of major shareholders above. The 10,776
thousand shares of treasury stock do not include 1,602 thousand sharesof Company stock held by TIS INTEC Group Employees’ Shareholding
Association Exclusive Trust, and 217 thousand shares of Company stock
held by Board Incentive Plan (BIP) Trust.
2. Percentage shareholdings are calculated after deducting treasury stock.
3.	Regarding 4,796 thousand shares held by The Master Trust Bank ofJapan, Ltd. (Retirement Benefit Trust Account, Mitsubishi Electric
Corporation Account), Mitsubishi Electric Corporation reserves exercise of
voting rights by Instruction.

(At November 20, 2020)
Long-term

22,86816,728
10,926
6,717
6,219
5,402

A/stable■ Stock Price Range (Comparison with TOPIX)
TIS

TOPIX

700
600
500
400
300
200
100
0

Corporate DataIUK Inc.
INTEC Solution Power Inc.
KOUSHI INTEC Inc.
SKY INTEC INC.
SorunPure Inc.
Chuo System Corporation

199,355

Overseas
Institutions
115,857(44.0%)ICHIGO TRUST PTE. LTD.
The Master Trust Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
Employees’ Shareholding Association of TIS INTEC Group
Nippon Life Insurance Company
MACQUARIE BANK LIMITED DBU AC
The Master Trust Bank of Japan, Ltd. (Retirement Benefit
Trust Account, Mitsubishi Electric Corporation Account)
JPMBL RE CITIGROUP GLOBAL MARKETSLIMITED COLL EQUITYGOVERNMENT OF NORWAYSSBTC CLIENT OMNIBUS ACCOUNT

Financial
Institutions
77,136(29.3%)

Platform that Supports Value Creation
Process (ESG section)

TIS Inc.
(operatingholdingcompany)

Description of Business

Fiscal 2021, ended March 31, 2021
(Millions of yen,non-consolidated basis)
Operating income
Net sales(operating margin)

Number of Shareholding
shares(Thousands) ratio (%)

NameMedium-Term Management Plan

■ Share Composition by Shareholder(As of March 31, 2021)

TIS Inc., and 54 consolidated subsidiaries (As of March 31, 2021)

Sequent Software Inc.
TIS Ventures, Inc.

79 Equity Method Affiliates (As of March 31, 2021)

21,817 (full-time employees)■ TIS INTEC Group● United States

Value Creation Process

Head office

What does the TIS INTEC Group do?

■ Corporate Profile

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Notes: 1.	The TIS stock price and TOPIX (Tokyo Stock Exchange Price Index) are indexed at 100 based on the closing price of stock on April 30, 2010.
2.	The Company executed a stock split, with each share of common stock split into three shares, effective April 1, 2020. Figures before fiscal 2020 are presented
assuming this stock split was conducted.

80Evaluations from External Parties

In Issuing the 2021 Integrated Report
What does the TIS INTEC Group do?

■ Inclusion in SRI indexes
FTSE4Good Index Series

FTSE Blossom Japan Index

The FTSE4Good Index Series, created by global
index provider FTSE Russell, is designed tomeasure the performance of companies
demonstrating strong ESG practices.

The FTSE Blossom Japan Index, created by
global index provider FTSE Russell, is designed
to provide market participants with a tool formeasuring the performance of Japanesecompanies demonstrating strong ESG practices.

MSCI Japan Empowering Women Index (WIN)The MSCI Japan Empowering Women Index, created by U.S.-based MSCI, aims to represent theperformance of Japanese companies exhibiting an excellent commitment gender diversity.

■ HR-related activities
Grand Prize in Good Career Company
Award 2020

Certified Health & Productivity Management Outstanding
Organizations

Eruboshi (L-Star)

Telework Pioneers

Tomonin

The "Kurumin" mark is
bestowed on companies thathave formulated action plans
for supporting a balance
between work and childcare
based on the Act on
Advancement of Measures
to Support Raising the Next
Generation of Children, and achieved thegoals of those plans. TIS received "Platinum
Kurumin" certification in 2019 as an
exceptional child-rearing support company.

Seeking to promote thespread of telecommuting,since fiscal 2015 the Ministryof Internal Affairs andCommunications hasannounced its annual list of"Telework Pioneers". These
are companies and organizations that haveintroduced and are promoting telecommuting.
They are selected by a panel of external
experts.

The “Tomomin” mark is
given to companies by the
Ministry of Health, Labourand Welfare in recognitionof measures that support
improvement and promotionof a workplace environment that enables
employees to balance work and nursing care.
To prevent a situation where an employee has
to quit to care for elderly family members,
TIS is creating a workplace environment thatmakes it easier for employees to balance workand nursing care obligations.

New Diversity Management Selection 100

Nikkei Smart Work Management

White Company Recognition

The Ministry of
Economy, Trade andIndustry runs the
program thatrecognizes companies
that utilize the skillsof diverse human resources to create value.
This approach has enabled us to raise
employee satisfaction and attract and train
human resources who will fuel structuraltransformation, and the results have earned
us stellar external recognition.

The Nihon Keizai
Shimbun Group
promotes thecampaign that aims
to grow the Japanese economy by linking
workstyle reforms-gained through theintroduction of advanced technology,
innovation, and structural transformation-to
the improvement of corporate productivity. TIS
won four stars in the fourth Nikkei Smart
Work Management Survey.

The Japan Next Generation
Enterprise Promotion
Organization, known morecommonly as the WhiteFoundation, defines companies
that have a future and should
last for the next generation as
those that balance appropriate
profits and growth with the trust of customers
and employee satisfaction. Such companies
are recognized as white companies. TIS
earned this title in 2020.

■ Other

JPX-Nikkei Index 400

DX Certification

TIS has been included in a
new index of 400 companies
with high appeal for investors
that meet criteria required by global investment standards, such as
efficient use of capital and investor-focused management perspectives.

The DX Certification System isdesigned to certify companies that are
ready to take action in accordancewith the “Digital Governance Code”
established by the Ministry of Economy, Trade and Industry (METI) andto address social changes brought about by digital technologies throughdialogue with stakeholders.

81

Division Manager ofCorporate Planning SBU■ Evaluations for IR-site2020 Internet IR Commendation Award(Daiwa Investor Relations Co., Ltd.)Awarded for ten consecutive years since 2013.

Fiscal 2020 Homepage Quality Ranking
Survey of All Listed Companies(Nikko Investor Relations Co., Ltd.)
Received highest award as excellent website
in comprehensive ranking for six consecutive
years since fiscal 2015.

Gomez IR Site Comprehensive
Ranking 2020
(Morningstar Japan K.K.)
Awarded for six consecutive years
since 2015 as an excellent company.

82

Corporate Data

■ IR-related activities

Platform that Supports Value Creation
Process (ESG section)

Kurumin, Platinum Kurumin

Medium-Term Management Plan

The Program, run by the
Ministry of Economy, Trade and Industry (METI) andNippon Kenko Kaigi (NKK), recognizes companies
that engage in activities to address health issues
and maintain particularly good health management
practices to promote well-being. TIS and INTEC are
ranked at top 500 companies as Certified Healthand Productivity Management Outstanding
Organizations (large enterprise category).

The “Eruboshi (L-Star)” is bestowed
by the Minister for Health, Labourand Welfare to corporations thatexcel in supporting the advancement of women. There are threelevels of certification based on five evaluation criteria
set by the Ministry: recruitment, continued
employment, workstyles (including working hours),
proportion of women in managerial roles, anddiversity of career options. TIS, INTEC and AGREX
captured Grade 3 certification of the top-level grade.

TIS earned a grand prize in2020 in recognition of its“talented management thatemphasizes the selfrealization of each individual
and the provision of career support thatencourages women to play active roles.”Toward this end, we will embrace changes, reflectedalready in drafting the new medium-term management
plan, while promoting management keenly aware ofdelivering higher value to diverse stakeholders. More to
the point, to give shape to our mission—Fill the futurewith vibrant colors as a mover using digital technology—asstated in OUR PHILOSOPHY, we will accelerate structuraltransformation with an emphasis on three key strategies:
improve the value provided in DX services, boost profitability in service businesses, and expand global operations. In
addition, we will strive to elevate the caliber of Environmental (E), Social (S) and Governance (G) initiatives toreinforce the foundation that supports improved corporate
value and thereby become a sustainability company, that
is, a company—and a corporate group—contributing to asustainable society through business activities.
I assumed my current position as general manager of
the Corporate Planning SBU in April 2021 and now carrya greater level of responsibility as a member of the management team. It is a sobering career development but
one that I will embrace with all sincerity. I am committed
to sustainable improvement in corporate value of theGroup, which will enable TIS and the rest of the TIS INTECGroup to meet the expectations of all stakeholders. My
priorities will be to promote exhaustive management
practices conscious of capital cost and achieve a goodbalance between robust investment and fiscal restraint.
But I am also keen to see
an increase in the valueof intangible assets, which
are gaining importance assources of competitive
superiority. Engagementwith stakeholders is
another area of emphasis.
It is a valuable opportunitythat I will actively pursue. I
look forward to the support
Masakazu Kawamura,and encouragement of
TIS Executive Officer,
stakeholders in this pursuit.

Value Creation Process*The inclusion of TIS Inc. in any MSCI INDEX, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement
or promotion of TIS Inc. by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks
or service marks of MSCI or its affiliates.

The TIS INTEC Group Integrated Report, first issued in2016, has been produced six times now. The 2021 edition
provides a comprehensive picture of key elements pertaining to medium- to long-term growth strategies and thestatus of initiatives to create corporate value on a groupwide basis, which is the centerpiece of the Group’s basic
philosophy OUR PHILOSOPHY. In addition, we see theintegrated report as a valuable tool for promoting dialogue with all stakeholders, including shareholders andinvestors, and welcome candid thoughts and opinions
that may lead to enhanced disclosure content and greater
management transparency.
TIS took advantage of the transition to an operatingholding company structure in July 2016 to move vigorously forward on unification of Group management.
Efforts on this front have definitely accelerated growthand dramatically improved corporate value. Of note, ourgross profit margin—an indicator of business competitiveness—has increased significantly, thanks to steady progress on various measures in line with a management
policy to emphasize profitability, including steps to reduce
unprofitable projects and to be more thorough and precise in estimating profitability at the time an order isreceived. A rising gross profit margin is the driving force
of a virtuous cycle that enables us to achieve the rightbalance of robust prior investment and improved profitability for growth into the future.
In April 2021, along with the shift to a new management structure, the TIS INTEC Group embarked on
Medium-Term Management Plan (2021–2023) under the
tagline “Be a Digital Mover 2023.” This three-year plan isthe second part of our journey toward realizing Group
Vision 2026. Society, overall, is on an uncertain course.
To achieve sustainable improvement in corporate value
against this backdrop, it is vital that we build a solidmanagement foundation, take a flexible approach tochanges in the environment, continue to evolve throughquick and bold decision-making, and realize enhanced
value exchange through IT configuration capabilities
created jointly with society.