TIS INTEC Group Medium-Term Management Plan (2024–2026)
May 8, 2024

© 2024 TIS Inc.

1. Looking Back on Previous Medium-Term Management Plan

2. Group Vision 2032

3. New Medium-Term Management Plan “Frontiers 2026”

All statements described in these materials are based on information available to management regarding the TIS INTEC Group—that is, TIS and thesubsidiaries under its umbrella—as of the presentation date and certain assumptions deemed reasonable at this time. No intent is implied ofpromise by the Company to achieve such forward-looking statements. Indeed, various factors may cause future results to be substantially different
from the assumptions presented in these materials.

© 2024 TIS Inc.

Level of Success in Reaching Key Numerical Targets• Realized profit growth by advancing structural transformation and improving productivity, and reached key
performance targets for operating income and strategic domain ratio.

Fiscal 2021

Fiscal 2024
Management
Plan Targets

ActualGrowthRatio

ActualNet Sales¥448.3 billion➡

¥500 billion¥549 billion

22.5%

Operating Income¥45.7 billion➡

¥58 billion¥64.5 billion

41.1%

Operating Margin

10.2%

➡

11.6%

11.8%

＋1.6ptEPS Growth CAGR

11.1%

➡

Above 10%22.5%

+11.4pt

Strategic Domains
Ratio

51%

➡

60%

61%

＋10pt

¥38.0 billion➡

¥50 billion¥49.7 billion

30.8%

10.8%

➡

12.5-13%16.0%+5.2ptSales of Societal
Issue Solution
Services
ROE© 2024 TIS Inc.

3

Breakdown of Performance by Segment• Growth in net sales and income for Offering Service, Financial IT, Industrial IT and Regional IT Solutions.
• Although payment settlement-related services drove sales by Offering Service Business higher, segment carried heavy
burden of upfront investment and thus failed to reach income target.
Offering Service• Payment settlement-related
service drove businessexpansion, but did not
generate sufficient income torecover investment and still
post increase.

Business Process
Management

Financial IT BusinessIndustrial IT Business

Regional IT
Solutions• BPO—labor intensive work,
including data entry services—struggled, due to shrinking
volume of work and intense
price competition• Concentrated management
resources into services forcore clients andstrengthened relationships,
leading to definite
expansion in business• Maintained growth byreinforcing ties with coreclients, improving value
provided in DX services,and leveraging large ERP
projects• Sales and income grew,thanks to DX support to meetrising IT investment demand
from medium-sized andsmall-to-medium-sizedenterprises

Net Sales (Hundred million yen)

1,031

1,307

1,085

FiscalFiscal Medium-term

3月期

3月期

2022年
2024年
中計目標
2022
2024 management
plan

916

960

1,087 1,218 1,090

1,723

1,600

455

429

419

FiscalFiscal Medium-term
2024
plan
3月期

2022年
2024年management
中計目標
2022
3月期

1,063

1,562

FiscalFiscal Medium-term

3月期

3月期

plan

151

130

2022年
2024年
中計目標
2022
2024 management

FiscalFiscal Medium-term

3月期

3月期

2022年
2024年
中計目標
2022
2024 management
plan

FiscalFiscal Medium-term
2024
plan
3月期

2022年
2024年management
中計目標
2022
3月期

Operating Income (Hundred million yen), Operating Margin

76
46
4.5%

5.9%

95
8.8%

11.6% 10.8% 10.6%

49

45

48

123

13.5% 14.3% 13.5%

153

182
140

14.1% 15.0%

164

184

180

10.6% 10.7%

12.8%

11.2%

2022年
中計目標
2022 2024年
2024 management

FiscalFiscal Medium-term

2022年
2024年
中計目標
2022
2024 management

FiscalFiscal Medium-term

2022年
2024年
中計目標
2022
2024 management

FiscalFiscal Medium-term

2022年
2024年
中計目標
2022
2024 management

FiscalFiscal Medium-term

2022年
中計目標
2022 2024年
2024 management

FiscalFiscal Medium-term

3月期

3月期

3月期

3月期

3月期

3月期

3月期

3月期

3月期

3月期

© 2024 TIS Inc.

plan

plan

plan

plan

plan

Note: Explains comparable growth in same segment from fiscal 2022. Net sales include inter-segment transactions.

4Status of Cash Allocation / Balance Sheet Structure• Through business expansion, honed higher than initially expected ability to generate cash, executed investment to growbusiness and develop human resources, and strengthened shareholder returns.
• Vigorously implemented financial measures, including flexible treasury stock buybacks aimed primarily at optimizing
capital structure.
Change in Balance
Sheet Structure

Cash Allocation*
Cash in
About ¥220 billion

Cash out
About ¥220 billion

Cash generated frombusiness(before deducting R&D
and HR investment)• Improved ability togenerate cash byleveraging businessgrowth and structuraltransformation

About ¥72 billion
About ¥177 billion
Compared withinitial assumption

Optimizeassets/procure
funds• Reduce strategic
shareholdings• Review businessportfolio• Utilize interestbearing debt fordata center
acquisition, M&A,
etc.

© 2024 TIS Inc.

Compared withinitial assumption

About ¥44 billion
Shareholder returns

About ¥52 billion
Compared withinitial assumption

About ¥42 billion

Optimized capital
structure

About ¥47 billion

Growth investment• Actual investment of about¥72 billion, out of planned¥100 billion, with about ¥21
billion directed toward R&D
and human resources, andabout ¥51 billion of M&A andsoftware investment.
• Dramatically increased humanresources investment• Launched CreditSaaS
Capital spending• Separate/acquire core bases• Improve work environment,
including office relocation
Dividends, treasury stockbuybacks• Enrich shareholder returns• Constantly increase dividends
per share• Execute flexible treasury stockbuybacks aimed at optimizing
capital structure

Otherliabilities
Business
assetsNonbusinessassetsInterestbearing
debt

Equitycapital*Compared with balance sheet at end of
fiscal 2021

• Acquire A+ rating throughenhanced ability tocontinuously generate cash
and build solid financial
foundation* Simplified presentation of cash allocation based on cash flows.

5Major Initiatives• Revitalized various initiatives in accordance with basic policy of medium-term management plan.
• Many new initiatives only halfway through to producing concrete results pegged to profit, and bringing such initiatives tofruitful conclusion that sets stage for next-stage growth remains issue to address going forward.

Improvevalue of DX services
provided• Strengthen client base through delivery of large-scale projects, enhance issue-solving capabilities bysupplementing upstream functions- Responded to orders and completed multiple large-scale projects for clients in finance, industry and public service
sectors- Responded to orders for large-scale core upgrade projects by constantly reinforcing migration and ERP introduction services- Turned Fixel—company specializing in enterprise system UI/UX design—into subsidiary

Expand investment
to generate new strengths• In addition to establishing credit/debit processing, expand scope of activities to new themes, with sights on embedded
finance- Launched CreditSaaS and began providing service to NTT DoCoMo- Turned Nihon ICS into wholly-owned consolidated subsidiary, and began collaborating on new business creation, including
DX on business transactions for small and medium-sized enterprises- Achieved new business creation through co-creation, including release of Sumitomo Mitsui Card Mobile Payment Package
and steps to turn ULTRA in to consolidated subsidiary• Promote initiatives to grow existing businesses and fuel long-term business development- Maintained continuous solution improvement and marked growth in core business solutions, such as ERP and modernization- Reinforced regional revitalization and healthcare activities, including area data usage service and electronic healthrecord/medical information platform

Deepen and extend
global operations• Form new global partnerships, especially in ASEAN region, and accelerate activities to create new businesses- Received order for large-scale project through Group connections at MFEC Public Co., Ltd., and I AM Consulting Co., Ltd.
- Turned Vector Consulting Group, a major management consulting firm in India, into an equity-method affiliate- Transportation payment package, developed jointly with PT Aino Indonesia, adopted by integrated transportation
platform in Jakarta- Formed capital and business alliance with PIX Moving, a self-driving electric vehicle start-up

Diversify human resources,
sharpen skills• Add more consulting staff through internal transfers and external recruitment- Expanded number of DX consultants to 510, above target of 500, and worked to create new framework for human resources
portfolio

Turn virtuous
circle of value co-creation
by society and employees• Review human resources system with goal to raise value provided by human resources and improve structure for
dealing with ESG issues- Revised human resources system, raised basic compensation to boost employee job satisfaction, and achieved certain
level of success in attracting highly skilled individuals- Established structure to promote sustainability issues (human rights, corporate governance, human capital, taxes, etc.)
and improved external evaluations© 2024 TIS Inc.

6

Initiatives in Sustainability Management (External Evaluation)• As a result of progress in sustainability activities and system development, especially related to the environment, humancapital and information disclosure, TIS seen as ESG stock and has earned high marks from external rating organizations.
Key Initiatives
Quantitative Understanding of Ourselves• Promote data-driven management• Collect non-financial information

Key External ESG Rating
Organizations/Stock Indexes

Fiscal 2024 Achievements
67
Score continues to risefrom 51 in fiscal 2021

S&P Global
Corporate Sustainability
Assessment (CSA) Score 2023
*1

MSCI Japan ESG SelectLeaders Index*2

Includedsince fiscal 2023
Rated AA

Incorporating Social Trends• Environment (TCFD/SBT/carbon neutral)• Human rights (Formulate policy/
implement due diligence)• Revised corporate governance code

Improving Quality of Dialogue• Produce ESG databook• Promote robust external disclosure• Offer more opportunities for discussion

Certified Health &Productivity Management
Outstanding Organizations

Certified as White 500
company for six straightyears

Certification from Great
Place to Work® InstituteJapan based on survey
results

Selected for “Great
Place to Work”
certification, basedon excellent
workplace culture

CDP
Climate ChangeA-

Maintained since
fiscal 2023

*1 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.
*2 THE USE BY TIS OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,

RECOMMENDATION, OR PROMOTION OF TIS BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT© 2024 TIS Inc. ENDORSEMENT,WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

7

Initiatives in Sustainability Management (Internal Measures)• Implemented internal measures corresponding to initial targets, and despite great progress on environmental andgovernance fronts, failed to reach targets on social front.
• Improving quality of value cycle with stakeholders, starting with increase in added value of services to clients, remains
issue
Fiscal 2024 actual
Initiative policy

Indicators

Targets

Resolving social
issues throughbusiness activities

Promote growth strategy to contribute tosolutions of four social issues based on longterm trends

Sales of societal issue solution
service*1

Above¥50 billion¥49.7 billion

GHG emission(comparison with fiscal 2020)*1

3% reduction

60% reduction (forecast)

Adoption rate of renewableenergy in major data centers

More than 10%

65% introduce (forecast)Environment

Strengthen climatechange/carbon neutral
measures based on longterm environmental
targets

Contribute todecarbonizedsociety andrecycling society

Disclosure in line with TCFD recommendation,
endorse Science Based Targets initiative

Understand current situation regarding water and waste, and formulation andpromotion of reduction targets

SocialSustainableimprovement instakeholder
engagement

Increase stakeholder
satisfaction to deepen
value exchange withstakeholders

GovernanceGathered data on waste generated by major Group companies(since fiscal 2020)

Job satisfaction*3

62%

61%

Client/service satisfaction *3

60%

56%

Business partner satisfaction *3

81％

77%

Strengthen human rights
measures

Constantly pursue level of corporate
governance that elicits greater trustfrom society

Disclosed TCFD-based information,
SBT1.5℃ targets (endorsed June 2023)

Formulated human rights policy,
implemented human rights due diligence
Establish management system based on nonfinancial information

Expanded range of non-financial information obtained, partially provided
with third-party guarantee, publish comprehensive ESG data book

Optimization of management resource allocationfrom a capital cost perspective

Utilized cash paralleling optimization of non-business assets, including
reduction of cross-shareholdings, and achieved both active growthinvestments and enhanced return to shareholders

Foster awareness of improving corporate value,
and improve officers’ compensation system toshare interests with stakeholders

Applied customer/service and business partner satisfaction to job
satisfaction as performance criteria for officers’ compensation to further
improve corporate value

Pursue further transparency and independence of
the Board of Directors

Disclosed skill matrix of directors, and and operated committees,
notably, Nomination Committee and Compensation Committee, chairedby external directors

Enhance corporate governance (Strengthen
management supervisory function, understand andrespond to risks related to taxes and human rights)

Established Corporate Sustainability Committee under Board of Directors,
and office to promote corporate governance*1 Consolidated *2 Consolidated (domestic) *3 TIS and INTEC*4 At planning stage, goal was to achieve 3% reduction, with 1% decrease each year for three years, in line with Energy Saving Act. But took robust approach to adoption of renewable energy at
key data centers, paralleling higher SBT target, which caused large discrepancy between targets and actual results.

© 2024 TIS Inc.

8

1. Looking Back on Previous Medium-Term Management Plan

2. Group Vision 2032

3. New Medium-Term Management Plan “Frontiers 2026”© 2024 TIS Inc.

Positioning Group Vision 2032
• Group Vision is long-term management policy aimed at providing new possibilities and options as described in TIS
INTEC Group Philosophy “OUR PHILOSOPHY” and basic policy on corporate sustainability.

TIS INTEC Group Philosophy “OUR PHILOSOPHY”
Mission: Color the future as a mover with digital technology

Basic Policy on Corporate Sustainability
Four key themes and materiality (priority issues)
Improve value
exchange withstakeholders

Help solve social issues through businessactivities

Enhance management matched tosocial requirements

Management policy articulating kind of corporate groupwe want to be in long term, over fixed term
Overall picture

Medium-Term Management Plan
2024-2026(First stage)

Medium-Term Management Plan
2027-2029(Second stage)

Contribute to sustainable society© 2024 TIS Inc.

Insight into next 10 years

Business policies for success

Medium-Term Management Plan
2030-2032(Third stage)

Ensure sustainable improvement in corporate value
10Group Vision 2032 Themes
Update management direction from long-term perspective, based on major changes in internal and external
environments, and set as new Group vision

•

✓
✓
✓

External Environment

Internal Environment

Heightened uncertainty in competitive circles, fueled bytechnology development and growing interest in SDGs

Good progress toward medium- to long-term management
objectives but need to revise targets, given changes inexternal environment

Technologies with potential to change business models, industrial
structures and state of society over next 10 years will enter practicalstage one after another.
Various services utilizing these technologies will be required asmeasures to address social issues become more top-priority forcompanies.
Related to this, opportunities to co-create and compete with various
players, including those from other industries, are increasing.

✓ Generally exceeded targets stated in Medium-Term Management
Plan (2021–2023)✓ Progress on strategic domain ratio set under group vision
tracking as expected✓ Various activities at nascent stage, like buds ready to blossom, so
need rethink corporate position and set new targets givenchanges in external environment but based on these emerging
activities

Must update management policy with long-term
perspective based on current conditions
Society oriented, operationallydiverse, globally active
Business policy
guiding progress
toward successful
conclusion

Seek to possess insight into future and ability to solve issues, integrate capabilities of various players,maintain position conducive to co-creation, and be indispensable to social change✓ Deepen dialogue with market by engaging top companies in co-creation and providing services that will dominate market, andacquire insight into real issues of concern to clients✓ Be a corporate group that extends accumulated power of integration to future-matched approaches, such as greater cooperation
across different industries, improves methods for solving issues, and constantly creates social innovation on world stage© 2024 TIS Inc.

11

New Strategic Domains• We will partially revise strategic domains, based on long-term business direction, with aim ofdeveloping business pursuits hinging on social issue resolution and co-creation andcommercializing services that go beyond IT alone.
Redefined Strategic Domains under Group Vision 2032

Strategic Domains: Desired Composition✓ Since 2017, when Group Vision 2026 was prepared, very clearly highlighted social role that
TIS INTEC Group must fulfill and best business approach to take over next 10 years, shaping
new priority business areas.

✓ SPB and IOS domains domains will be much bigger, new
CCB and SIS domains will have grown to certain size, andbusiness portfolio will be well-balanced mix of diverse
business models

New: Strengthen response to social issues

Social Innovation
Service (SIS)Business where TIS INTEC Group directlyoffers solutions to social issues in line withstated social impact indicator

New: Promote co-creation style business

Co-Creation
Business (CCB)
Business combining respective
strengths of TIS INTEC Group andco-creation partners in areas beyond
those where the Group maintains
presence to create new markets■Fiscal 2024 (Actual)
Sales in strategic domains
as percentage of net sales(Calculation based on new
strategic domain)

SPB
38%
IOS
10%

48％

Expanded: Expand definition to include BFS

IT & Business Offering Service(IOS)

Strategic Partnership Business(SPB)

Business providing services with potential
to be de facto standard of the future, using
technology and know-how accumulated by
TIS INTEC Group and anticipating needs ofspecific industries and operations

Business providing various need-matchedresources to companies in industry top
class as strategic partner and supportingclient companies’ business growth andcorporate reforms© 2024 TIS Inc.

■ Fiscal 2033 (Expectation)

Sales in strategic domains
as percentage ofnet sales

80％

SIS
10%
CCB
10%

SPB
30%

IOS
30%

12

1. Looking Back on Previous Medium-Term Management Plan

2. Group Vision 2032

3. New Medium-Term Management Plan

© 2024 TIS Inc.

Positioning of Medium-Term Management Plan (2024–2026)• Tie relationships forged with clients and each type of investment made during Medium-Term
Management Plan (2021–2023) to results and also, positioning plan as first stage of journey to realize
Group Vision 2032, secure new status and capabilities
Results achieved• Established services in payment
settlement business• Expanded consulting
capabilities• Elevated business goals/
improved strategic domain ratio• Energized investment activities

2021-2023

Issues• Execute robust entry in growth• Amass and utilize
areas
intellectual property• Strengthen and expand issue• Group/global governancesolving capabilities• Optimize business• Enhance skills of human resources
portfolio• Gain agility necessary for putting
new technology into practice2024-2026
First Stage

Accelerate structuraltransformation throughimprovement in provided
value for DX

Establish position, capabilities and organizational
strength as value-creating co-creation partner forsociety/clients

Be indispensable to social change

Secure position and showcase
noteworthy capabilities through• Enhanced social issue solution
services• Diversified business content• Global presence

2027-2029
Second Stage

2030-2032
Third Stage

Continue to produce No.1
businesses, and leverage high brandrecognition to create new
businesses through deeper cocreation pursuits with various
partners

On basis of investment results achieved to date, implement differentiation and concentration
strategy designed to clearly showcase TIS INTEC Group’s excellence and thereby demonstrate reason
for TIS INTEC Group to remain market and client choice going forward© 2024 TIS Inc.

14

Long-Term Growth Scenario—Seeking sustainable improvement in corporate value—
April 2008
IT Holdings Corporation (ITHD) establishedthrough management integration

March 2023

July 2016
Transition to TIS INTEC Group, with
an operating holding company

December 2009 April 2011SORUN Corporation ITHD orchestrated threejoined ITHD Group . company merger involving TIS,SORUN and UFIT Co., Ltd., with
TIS as surviving company.

March 2015

Turned Nihon ICS Co., Ltd., into
consolidated subsidiary

October 2020

ITHD turned AGREX Inc.
into 100% consolidated
subsidiary.

MFEC Public Company Limited(Thailand) brought under consolidation.

April 2024
Formulated Group Vision 2032、Medium-Term Management Plan (2024–2026)●January 1964 Toyama Computer Center, Inc. (now, INTEC) established.
●April 1971 Toyo Information Systems, Co., Ltd. (now, TIS) established.
April 2000 Turned Komatsu Soft Ltd. (now, QUALICA Inc.) into subsidiary.
February 2002 Turned AGREX Inc. into subsidiary.
April 2004 Turned UFIT Co., Ltd., into subsidiary.
April 2005 Turned Asahi Kasei Information Systems Co., Ltd. (now, AJS Inc.)
into subsidiary.

ROE

10.8％

Operating margin

7.4%

9.9％

Net sales

6.0％
4.8％

¥338.3 billion¥327.4 billion

5.9％© 2024 TIS Inc.

Fiscal2012¥448.3 billion¥405.6 billion¥620 billion¥549 billion

Above ¥3.5 million¥2.9 million¥361.0 billion

Medium-Term Management Plan (2024–2026)

1.5％

Fiscal
2009

8.1％

13.1%
11.8%

10.2％

Operating income per person
7.0%

Above 16%

16.0%

Seeking sustainable growth with added value, apply results
achieved to date as springboard to implement differentiation andconcentration strategies aimed at securing clear superiority
Fiscal2015

Fiscal2018

Fiscal2021

Fiscal2024

Fiscal2027

Fiscal2033

15

Medium-Term Management Plan (2024–2026) Overview
Frontiers 2026

Basic policyKeyperformanceindicators• We will set frontier development as a fundamental strategy and strive for sustainable growth paralleling higher
added value. We will strive to achieve changes in society and for corporate clients by enhancing quality
across all value chains, starting with forward-looking market development and business domain expansion.
Human resources growth
and added value cycle
Operating income
per person

More than ¥3.5
millionImproved earning power

Asset (=intellectual
property) value creation

Operating margin

Winning confidence ofsociety

Meaningful growth

Sales

EPS CAGR

ROIC/ROE

13.1%

Above 13%/
above16%

Adjusted operating margin
13.4%※1¥620 billion

Above 10%Market Strategies• Concentrate investment of management resources into defined growth areas, based on social issues and in-house strengths• Balancing efforts to increase added value of services and reinforce technology investment, expand business with sense of speed,
especially in ASEAN region

Priority
strategies

Service Strategies

Technology Strategies• All services, fromupstream to businessprocess outsourcing, will
benefit under full value
chain status• Enrich pure services*3,
focusing on four social
issues*2• Leverage knowledge
distribution, IT architect
development andredeployment structure• Promote process
redevelopment using AI x
automation

Intellectual Property
Strategies

Human Resources Strategies• Seek balance between higher
added value and expandedbusiness scale, with greater
accumulation and utilizationof intellectual property• Accelerate intellectual
property creation throughinternal use of information on
points of client contact• Bolster issue resolution
capabilities by increasing number
consultants to create 700-person
structure and by standardizing
basic consulting skills• Secure and develop top talentand establish structure for flexible
redeployment of humanresources*1 Adjusted operating income margin: Calculated by adding goodwill amortization cost back to operating income.
*2 Financial inclusion, urban concentration/rural decline, low-carbon/decarbonization, and health concerns. These issues were determined by backcasting from what the world
might be like in 2050 and selected on the basis of TIS INTEC Group’s ability to contribute to issue resolution.
*3 Type of services essentially offered under uniform specifications applicable to all clients.

© 2024 TIS Inc.

16

Consolidated Operating Income Growth Scenario• Continue to strengthen frontline, and develop market from function perspective as driver of growth• Seek to reinforce business foundation primed for sustainable growth while maintaining short-term—that is, current—growth81(Billions of yen)

＋18

Gross profit margin: 30.0%
Operating income margin: 13.1%

64.5

Gross profit margin: 27.6%
Operating income margin: 11.8%- 4.5

Incomepeak/operational
withdrawal-6
Structural
reinforcement＋9
Industry-based
market development
Related segments:
Financial IT business,
Industrial IT business

Fiscal 2024

Related segments:
Offering Service, BPM,
Regional IT Solutions

Operating income＋16.5

Peaked/Withdrawal

Structural reinforcement• Will see operating income has peaked,
due to completion of large-scalefinancial projects• Will continuously review businessportfolio and withdraw from some lowprofit businesses• Strengthen system for sales andmarketing to expand service business• Increase number of consultants andhigh-level engineers driving business
transformation forward© 2024 TIS Inc.

Function-based market
development

Fiscal 2027

Industry-based market
development

Function-based market
development• Provide diverse services to meet
evolving needs of clients, and deepen
business with existing clients• Attract new clients with solutions forcore business areas to facilitate shift
from legacy to renewal demand capture• Continue to expand and develop
industry- and operations-based services
to meet client needs for business reformand enhanced management practices• Shift from individual company issues
with enhanced approach to respond toissues affecting society and industry• Grow business in ASEAN region byforming more global partnerships andraising value of provided services

17

Market Strategies—By segment—• Expand business areas through development of diverse services based on market characteristics of eachsegment, and strive to increase scale and value in provided services
Offering Service

Business Process
Management

Financial IT BusinessIndustrial IT Business• Respond to diverse needs
related to cashless
operations and develop
new social issue solution
services with strong financeand payment settlement
features.
• Improve profitability withenhanced investment
management.

• As market for certain BPO
services shrinks, review
business structure andreturn to growth trajectoryby shifting toward
customer experience area,
where demand is high, andpursuing development ofservices in collaboration
with other segments.

• Demand peaking as largescale projects come to end,
but will co-create withclients, promote
modernization business,
attract new clients anddiversify client base ineffort to establish
foundation for next stageof growth.

• Deepen client base, withemphasis on energy,
manufacturing and social
infrastructure sectors, andenhance range of services.
• Develop existing client basewhile attracting new clientsby leveraging diversity ofservices, including ERP andmodernization.

Regional IT
Solutions• In nationwide approach,promote original IT solutions
built on close ties withclients in five key areas(government administration,
healthcare, finance, industry
and infrastructure)

Net Sales (Hundred million yen)
1,308

1,630
1,063
420

Fiscal 2027年
Fiscal
2024年
2024
3月期

2027
3月期

1,219

1,410

1,724

1,910

460

2024年
Fiscal 2027年
Fiscal

2024
3月期

1,035

2027
3月期

2024年
Fiscal 2027年
Fiscal

2024
3月期

2027
3月期

2024年
Fiscal 2027年
FiscalFiscal 2027年
Fiscal
2024年

3月期
2027

2024
3月期

16.0%

10.7% 13.1%

3月期
2024

2027
3月期

Operating Income (Hundred million yen), Operating Margin

5.9%
77

8.9%

14.3% 13.0%

145
46

2024年
2027年
FiscalFiscal2024
3月期

10.8% 11.3%

2027
3月期

© 2024 TIS Inc.

52

2024年 2027年
FiscalFiscal
3月期
3月期
2024
2027

152

135

Fiscal 2027年
Fiscal
2024年
2024
3月期

2027
3月期

15.2%
186

225

2024年
Fiscal 2027年
Fiscal

2024
3月期

2027
3月期

185

250

FiscalFiscal2024年 2027年
2024
2027
3月期
3月期

Note: Net sales include inter-segment transactions.

18Market Strategies—Global—• Asia, with its massive market potential, is long-term target for business expansion, but efforts are being
directed toward greater activity in ASEAN region, looking toward consolidated net sales of ¥100 billion
by 2026.
• Develop business activities with sense of speed, balancing efforts to raise value across all businesses
through fusion of IT and business restructuring/consulting and efforts to enhance technology
investment function.
Global Partnerships
ASEAN, China,
United States, India¥33.6 billion in 2023⇒¥100 billion in 2026

ChannelCapital and business alliances with local companies toexpand business in local markets

X-TechCapital and business alliances to create new businessand services

Emerging
Tech

Joint efforts with leading companies, universities andgovernment agencies in each country to cultivate nextgeneration technology

Consulting

Capital and business alliances to expand value chain© 2024 TIS Inc.

Priority Measures

Raising channelvalue✓ Restructure existing businesses,
reinforce management foundation✓ Through shift toward DX consulting
and high-value-added services, andexpand business

Enriching value
chain✓ Secure consulting business basethrough tie-up with India’s Vector, andcultivate demand in local market✓ Expand consulting operations(management/DX/IT) in Asia

Diversifying
investment
targets
Attracting anddeveloping
businesscreation talent✓ Accelerate investment emphasizing
innovative services that lead to social
issue resolution or else related leadingedge technology✓ Collaborate on industry-governmentacademia projects involving top
universities and provide students with
opportunities to engage in and learn
about business to attract and develop
individuals who will take lead in new
business creation and transformation

19Service Strategies• Define priorities from both industry and function perspectives, concentrate investment of management
resources into select targets, and promote expansion of services and raise added value.

Business
direction

Servicestrategies

Shared© 2024 TIS Inc.

Develop market from industry perspective

Develop market from function perspective• Apply knowledge laterally, cultivate client base fromindustry perspective, deepen relationships with clients
as core partner.
• Develop relationships with clients as strategic partner,
including launch of co-creation businesses.

• Provide services with potential to become de facto
standard for specific operations and functions in the
future.
• Strengthen approach to address social and industry
issues, shifting from emphasis on large-scale toinclude small- and medium-sized businesses as well.

Establish competitive services aimed at
cultivating core business areas✓ Differentiate ERP by enriching software system withoriginal industry templates and optional modules→ Mainly chemicals and assembly-based manufacturingsectors✓ Modernization services will expand banking systems andaddress need for large-scale removal of legacy systems

Expand and promote pure services for specific operations
and functions and social issue solutions✓
Develop payment settlement solutions into pillar of
business with strengths in finance and payment
settlement to address social issues→ Digitize transactions, including B2B✓
Expand and promote specialized-function, top-sellingniche services→ Including accounting/business management,
CRM/SFA/digital marketing, healthcare/medical
services, government administration, IT- managed
services✓ Promote full value chain of services to address clients’ wide-ranging transformation needs→ Covering consulting, UX design, analytics, BPO expansion✓ Hone sharper competitive edge in services by reinforcing feedback cycle of client comments

20Service Strategies—Payment Business—• Amid expectations of continued growth in cashless market, expand scale of business with broader
lineup of services, including digital wallets and embedded finance, to complement CreditSaaS, which
launched in fiscal 2023.
• Address diversifying payment needs by quickly and efficiently expanding operations utilizing existing
assets while increasing profitability and taking on challenge of new value creation.
Business Strategies
ー Business environment ー• Processing demand rising,reflecting increase in B2C cashlessratio and wider use of cashless
payment options in other areas,such as B2B and B2E.
• New value creation to fuel growthof emerging platformer market
over long term.
• Increasing need for digitization ofbusiness transactions among
medium-sized and small- andmedium-sized enterprises.

Value creation in fields highly compatible
with payment settlement process

New value creation
Robust investment intonext-generation payment
solutions

New value creation
Embedded Finance
CreditDigital accounts

Next-generation
payments

Utilize asset groups to meet diversifying new-payment needs,
expand businessBusiness Scale

Profitability/Recurring Sales¥50 billion +α¥34 billion

Transition digital accountclients to credit solutions(including light needs)

EBITDA margin
20-25%New value creation¥36 billion

Systemintegration sales

Next-generation payments
Digital accounts

Recurring sales

CreditMedium-term
management plantarget for fiscal 2024
© 2024 TIS Inc.

Fiscal 2024

Fiscal 2027

Fiscal 2024

Fiscal 2027

21

Technology Strategies• Based on technology portfolio featuring technologies selected from all globally available technologies
as key from TIS INTEC Group perspective, develop comprehensive measures to facilitate proactive
research on these technologies and realize practical application as soon as possible.
Short-Term Initiatives

Medium- to Long-Term
Initiatives

Comprehensive development of measures aimed at verification of technologies for practical usethat have entered/are entering that stage, early implementation and on-site deployment

Applied research ontechnology that will
differentiate business overmedium to long term

Framework forknowledge distribution

Human resources
development

Framework forknowledge distribution
attuned to technology
readiness level

Create programs andenvironment to train
high-level engineers✓ Knowledge distribution
platform (components,
rules, guidelines, etc.)✓ Mutual technical support
platform✓ On-site deployment ofhighly skilled engineers✓ Enhance level-specifictechnical training✓ Implement job rotation
for highly skilled
engineers✓ Create and expand
generative AI training
curriculum© 2024 TIS Inc.

Early implementation
Early implementationof advanced
technology throughin-house application✓ Process redevelopment
through AI x automation<Candidate areas/themes>• Acquiring insight fromclient/market contact
information• Internal audit DX• Legal tech
• Training materials, test
generation, etc.

Priority research
themesPriority research themes

Research aimed atpractical use,hinging on AI

Applied research on mass datatransfer technology andalgorithms required to fusedigital and real worlds✓ AI utilization (for datalabeling, fraud detection,etc.)✓ Generative AI utilization(for system development
processes, automateddocument production)✓ XR research✓ Multi-Level Edge Computing
research✓ Research on highperformance computing
using quantum and classicalcomputers

22

Intellectual Property Strategies—Reinforce intellectual property creation cycle
to support business expansion and high added value—• Leverage internal use of points of client contact and apply to new service creation and sophistication ofprocesses for providing services• Use processes to provide high-value services and services with high satisfaction rate to improve client
communication, and create virtuous circle that generates high-value information from client
communication which will in turn lead to next intellectual property asset
Turn into knowledge
Turn into tools

Sophisticationof processes
Client behavior
Shared comments for providing
services

Related intellectual property (examples)✓ Consulting framework✓ Marketing materials/processes✓ Development standard process/results

On-siteapplication

Provide information, proposals
Provide services

Processes for providing
services

Needs, issues

New service
creation

Ideas

Clients

Client behavior
Shared comments
Needs, issues

Development
Related intellectual property (examples)✓ Actual services✓ Benchmark information

Analyze information© 2024 TIS Inc.

Improve pointsof client contact

Information on
points of client
contact

23

Human Resources Strategies• Continue robust investment in human resources—the TIS INTEC Group’s most important management asset• Support efforts of each and every employee to embrace new challenges so as to enable human resources
with specialized expertise to provide high added value, and promote virtuous circle of value exchange
between employees and company
Cycle of Added Value
Through Investment in Human Resources

Frontiers 2026
More In-Depth Management of Human Capital

Investingin human
resources

Human resources with specialized expertise will be at
forefront of frontier development and provide high added
value
Raising
added
value

Secure cutting-edge human resources to drive businessstrategies forward
Built on cocreation andacquisition ofcapabilities not
limited to IT

Ability toanticipate andapproach realissues affecting
clients/market

Issue-resolution
capabilities

Power ofinsight

Lead in overallsolution design
and integration

Comprehensive
capabilities

Secure and develop human resources matched to businessexpansion and changes in operating environment
Create atmosphere and culture where diverse human resources
thrive and innovation flourishes
Find balance between economic growthand social issue solutions
Economic value
Sustainable improvement incorporate value© 2024 TIS Inc.

Social value
Boost employee motivation

Virtuous circle of value
exchange between
employees andcompany

Driving
personnel
growthBoost productivity 20% over current level on way to greater
added value by deepening pool of human resources with cuttingedge skills• Consultants who raise issue-resolution capabilities
Highly skilled• High-level marketing talent who hone power oftalent ininsight
recruitment• IT architects who deepen comprehensive
spotlight
capabilities
Achieve targets noted below through robust investment exceeding¥10 billion in training and compensation
Operating income per person¥2.9 million
Fiscal 2024

More than ¥Job satisfaction rate*

3.5 million

Fiscal 2027

52％

Fiscal 2024

58％
Fiscal 2027

*Domestic Group companies, consolidated basis

24

Human Resources Strategies• Develop and promote TIS Human Resources Investment Framework to enhance effectiveness of added
value improvement cycle through human resources investment
Ideal

Seek to possess insight into future and ability to solve issues, integrate capabilities of various players, maintain position
conducive to co-creation, and be indispensable to social change

Human resources
investment

Secure/train/redeploy
human resources

Develop humanresources

Raise added value

Social issue resolution

Input

ActionOutput (non-financial
indicators)

Output (financial
indicators)

Outcome/Impact

Human capital

Create atmosphere/culture where a diversityof people thrive andinnovation flourishes

Diversity, innovation,
engagement• Members who embody“OUR PHILOSOPHY”

Financial capital• Invest in training,
compensation• Invest in officeenvironment• Invest in R&DIntellectual property
capital• Social capital• Information on client
contact points• Processes for providing
services• Organizational
strengths that support
business© 2024 TIS Inc.

• Promote growth strategies/
business diversification• Boost compensation• Obtain cutting-edge
technology• Pursue industry, academia
government, collaborationin each country• Promote greater
involvement of women inbusiness

Secure workforce
responsive to businessexpansion and changes• Enhance HRBP function
Sharpen and encourage
issue-setting/solving skills• Review training system
Secure cutting-edge
talent who will drive
business strategies• Offer training programfor people with cuttingedge skills• Promote businessdivision recruitment• Job satisfaction• Co-created new businesscreation• Higher ratio of women in
management positions• Sufficient level of global
talentStrengthen issuesetting/solving skills of
all employees• Number of days/year
spent in study andresearch

Human resources
portfolio fulfillment rate
• Fill job openings withhighly skilledindividuals
Consultants
IT architects
High-level marketing
talentProductivity• Operating income perpersonMore than ¥3.5 million

Contribute to economic
growth• Net sales ¥620 billion

Contribute to social issue
resolution• Stakeholder satisfaction
Clients: 58%• Expand provision ofpure services that help
solve social issues

Boost productivity
20% over current
level on way togreater added value
by deepening poolof human resources
with cutting-edge
skillsRealize sustainable
society throughresolution of four social
issuesFinancial inclusion
Health concerns
Urban concentration/
rural decline
Low-carbon/decarbonizedsociety25

Financial Policy• Realize sustainable growth through robust growth investment on firm financial footing, and boost
corporate value still higher through a balanced approach emphasizing improved capital efficiency andenhanced shareholder returns
Financial Policy

Sustainable Improvement in Corporate Value✓ Total growth investment over three years
About ¥100 billion✓ Robust investment to optimize businessportfolio✓ Sustainable generation of returns exceeding
cost of capital, and wider equity spread

Promotegrowthinvestment✓ Allow debt-equity ratio up to 0.5,
understanding optimization ofcapital structure comes withimproved ability to generate cash
✓ Maintain “A” rating* ”A+” as of November 13, 2023
✓ Maintain level of cash anddeposits, plus commitment line,
equivalent to about two months’
worth of sales© 2024 TIS Inc.

✓

Raise total return ratio to50% (yardstick)*from 45%✓

Continue to enrichdividends per share✓

Maintain upper limit ontreasury stock holdings at
5% of total shares
outstanding, and cancel theexcessFiscal 2027

16%

Above

✓ Set minimum higher than level achieved in fiscal 2024,
excluding temporary factors. Looking long term, aiming for
ratio above 20%.

ROIC
Enrichshareholder
returns

MaintainfinancialhealthROE

Fiscal 2027

Above

13%

✓ From long-term perspective, aiming for high level throughrobust growth investment while maintaining fiscal restraint.

EPS Growth

CAGR

10%

Above

✓ Aim for continued improvement in value per share, hinging onsustainable business growth.
Note: ROIC = NOPAT / (interest-bearing debt + equity capital), where interest-bearing debut
includes borrowings, corporate bonds and lease obligations.

26

Cash Allocation / Balance Sheet Structure• Promote vigorous growth investment activity and enrich shareholder returns by improving ability to generate cash basedon profit growth• Procure funds as investment opportunities dictate, and implement measures to optimize capital structure flexibly, taking
into account prevailing situation
Cash Allocation
Cash in: About ¥240 billion

Balance Sheet Structure✓

Cash out: About ¥240 billion
Investment

Cash generated frombusiness

About ¥165 billion(before deducting investment
into R&D and humanresources)

More than¥230 billion✓

Growth investment

Robust growthinvestment emphasizing
capital efficiency
Optimization of financial
assets as necessary✓ Assuming preservation of
A rating, procure funds
according to investment
soundness

Other liabilities

Capital investment

Business assets

Interest-bearing debt

Dividends, treasury stockbuybacks

Asset optimization/
financing

About ¥75 billion

Non-business assets

Equity capital

ROE、ROIC Improvement Structure

ROE
16.0%
↓

Above

16%

Net profit
margin

8.0% → 8.9%

Total asset
turnover1.1 →Financialleverage

1.6 → Slight increase(Fiscal 2024 → Fiscal 2027)© 2024 TIS Inc.

Same

ROIC

Higher earnings

13.6%
↓

Business assets

Above

13%

Non-businessassets (financial
assets)Activeinvestment
Investment
efficiency up
Optimization,
concentration

Added value throughfrontier development
and improvement incapital efficiency
Increase in businessassets through growthinvestment
Capital structure
optimization assuming
financial soundness27

Growth Investment• Establish position, capabilities and organizational strength as value-creating co-creation partner forsociety/clients through robust prior investment for sustainable growth, and seek to remain market andclient choice going forward
Growth investment of about ¥100 billion (cumulative, over three years)
Investment Details

Human
resources

Strongerinternal
statusR&D• Further strengthen recruitment/training to expand
squad of cutting-edge talent who will take value higher• Concentrate investment on consultants, high-levelmarketing talent and IT architects who are targets ofpriority recruitment/training• R&D on the latest technologies to generate newperceptions of value and structural changes anddrive business co-creation, production innovationand enhanced issue-solving capabilities• Applied research that will accelerate new businesscreation¥30 billion

Software¥70 billion

M&A(capital contribution)© 2024 TIS Inc.

• Rise to pinnacle of business model for digitalsolutions with expanded service lineup• Continue to invest in software development toaddress social issues and build industry platforms• Capitalize on M&A opportunities to differentiate
and concentrate strengths, hinging on solid statusof Offering Service Business, especially area of
payment settlement, as well as expansion of value
chain• Contribute capital to acquire technology andknow-how and to promote joint business activities

Investment Policy
Strengthen issue-solving
capabilities
Expand squad of
cutting-edge talentAcquire latest
technologies

Social issues targeted for resolution
Financial inclusion

Urban concentration/ Rural decline

Low-carbon /decarbonized society

Health concerns

Expand services and cocreation businesses

Expand value chain

Reinforce value-creation
capabilities

28Basic Policy on Return to Shareholders• Raise total return ratio to 50% (yardstick) from 45 %.
• Constantly enrich dividends per share and enhance engagement with shareholders.
Total dividends
Total treasury shares acquired, based on shareholder return policy
Total treasury shares acquired (optimized capital)
Total return ratio (including optimized capital)
Total return ratio(Hundred million yen)

500

Total return ratio

50%*(rising from 45%)
85.8%

400
76.0%
300

43.1%

44.0%

Total return ratio 50%
44.9%

50.0%

50.0%

50.0%

Dividends per share

Enrichdividends
per share

Constantly enrich
the dividend

New Medium-Term Management Plan
Frontiers 2026

Upper limiton treasury stock holdings

200

100

0
2022年
Fiscal
2022
3月期

2023年
Fiscal
2023
3月期

2024年
Fiscal
2024
3月期

2025年
Fiscal
2025
3月期

2026年
Fiscal
2026
3月期

2027年
Fiscal

at

5%

2027
3月期

*Calculation based on income earned from operating activities (after deducting corporate taxes and non-controlling interests)© 2024 TIS Inc.

29

Performance Targets
Operating income (Hundred million yen)/
Operating margin

Net sales (Hundred million yen)/
Gross profit margin

Medium-term
management plan

Medium-term
management plan

6,200
4,483

5,084

4,825

810

5,490
547

26.7%

30.0%

27.9%

645

623

457

13.1%

27.6%

12.3%

25.4%

11.8%

11.3%
10.2%

FiscalFiscalFiscalFiscalFiscal

21年3月期22年3月期23年3月期24年3月期
2021
2022
2023
2024

27年3月期
2027

Net Income Attributable to Owners of the Parent

FiscalFiscalFiscalFiscal

21年3月期22年3月期23年3月期
2021
2022
2023 24年3月期
2024

ROE

/ EPS

Company (Hundred million yen)

Medium-term
management plan

Medium-term
management plan

550

554

Above
16%

18.8%

488

16.0%

394
276

Fiscal

27年3月期
2027

14.0%
227.11203.28

Above CAGR10%

10.8%

157.69110.51

FiscalFiscalFiscal 24年3月期
Fiscal
21年3月期22年3月期23年3月期
2021

2022© 2024 TIS Inc.

2023

2024

Fiscal2027

27年3月期

Fiscal 22年3月期
Fiscal 23年3月期
Fiscal 24年3月期
Fiscal
21年3月期
2021

2022

2023

2024

Fiscal2027

27年3月期30

Evolution of ESG in Sustainability Management• Continue to drive evolution of sustainability management forward and, from a medium- to long-term
perspective, aim for sustainable growth paralleling added value

Solutions to social issues through business activities• Aim to integrate business and sustainability so that promoting business aligned to strategic
domains itself creates social value

Environment

SocialContribute to decarbonized society and recycling society⚫ Strengthen climate change/carbon neutral measures based on longterm environmental targets✓ Scope 1 + 2: Achieve carbon neutrality by fiscal 2041, ending
March 31 (100% reduction of GHG emission compared with fiscal
2020）✓ Scope 1 + 2 + 3: Achieve net zero by fiscal 2051
⚫ Understand the current situation regarding water and waste, andformulation and promotion of reduction targets

Sustainable improvement in stakeholder engagement⚫ Develop a human resources investment framework to enhance
added-value improvement cycle✓ Active investment into education and compensation over ¥10billion✓ Increase productivity by 20% to improve added value⚫ Strengthen human rights measures✓ Establish system to reduce negative impacts with rights holders
in mindGovernanceConstantly pursue level of corporate governance that elicits greater trust from society⚫ Enhance Group/global business management⚫ Strive to optimize business structure to achieve sustainable improvement in corporate value⚫ Maintain directors’ compensation program to support medium- to long-term improvement in corporate value⚫ Improve diversity and monitoring function of the Board of Directors⚫ Continue to boost efficiency and strengthen internal controls through standardized/shared business operations© 2024 TIS Inc.

31

Non-Financial Management Metrics• Aim to realize change for society and client companies by improving quality across entire value chain,and set non-financial metrics alongside financial metrics to measure impact of Group business activities
on society from broader perspective
Materiality

1

2

3

4

Create a society
in whichdiverse humanresources areengaged andthriveCreate a society
in whichdiverse humanresources areengaged andthriveCreate a safe
societythrough highquality services
Enhance
corporate
governanceand earn thetrust of society

Scope of data Fiscal 2027 targets
collection*2

Perspective/policy on measuring
progress

Indicators

Demonstrate capabilities of
employees

Job satisfaction

B

58%

52%

Human resources with specialized
expertise will be at forefront of frontierdevelopment and provide high addedvalue

Number of consultants

B

700

510

Number of female employees inmanagement positions

B

15%

12%

Provide value to society

Strategic domain ratio*1

A

52% (new standard)

48％ (new standard)

Operating income per person

A

Above ¥3.5 million¥2.9 million

Growth investments

A

Three-year cumulative total¥100 billion

Three-year cumulative total¥72 billion

Client/service satisfaction

C

59%

54%

Business partner satisfaction

D

81%

77%

GHG emissions (Scope1+2) *3[compared with fiscal 2020]

A

70％ reduction

60% reduction(forecast)

Renewable energy utilization rate*3（Offices, data centers）

B

Fiscal 2031
Full introduction

Aim to integrate business andsustainability so that promoting
business aligned to strategic domains
itself creates social value
Quality demanded by society
Realize management attitude/practices
supporting accumulation/distribution of
intellectual property, and create
appealing quality
Company chosen by society
Constantly reinforce internal controls ongroupwide basis, and contribute todecarbonized society and recyclingoriented society

Fiscal 2024 results

55% introduced(forecast)*1 Strategic domain ratio reached 61% in fiscal 2024, but because of stricter scrutiny paralleling a review of strategic domains for the new medium-term management plan, the ratio was reassessed at 48% under a
new standard, with new target for fiscal 2027 based on this standard as well.
*2 Scope of data collection: A: Consolidated/ B: Consolidated (domestic) / C: TIS, INTEC, AGREX, QUALICA, AJS, and TIS Solution Link / D: TIS, and INTEC*3 Scope of data collection for fiscal 2024 results: TIS, INTEC, AGREX, QUALICA, AJS, TIS Solution Link, TIS System Service, TIS Tohoku, TIS Nagano, TIS West Japan, TIS Hokkaido, TIS Business Service, SorunPure,
MFEC Public, Business Application, Motif Technology Public, Hongson, MISO Digital, Prain Fintech, Msyne Innovations, and Playtorium Solutions© 2024 TIS Inc.

32

Long-Term Growth Scenario—Seeking sustainable improvement in corporate value—
April 2008
IT Holdings Corporation (ITHD) establishedthrough management integration(repost)March 2023

July 2016
Transition to TIS INTEC Group, with
an operating holding company

December 2009 April 2011SORUN Corporation ITHD orchestrated threejoined ITHD Group . company merger involving TIS,SORUN and UFIT Co., Ltd., with
TIS as surviving company.

March 2015

Turned Nihon ICS Co., Ltd., into
consolidated subsidiary

October 2020

ITHD turned AGREX Inc.
into 100% consolidated
subsidiary.

MFEC Public Company Limited(Thailand) brought under consolidation.

April 2024
Formulated Group Vision 2032、Medium-Term Management Plan (2024–2026)●January 1964 Toyama Computer Center, Inc. (now, INTEC) established.
●April 1971 Toyo Information Systems, Co., Ltd. (now, TIS) established.
April 2000 Turned Komatsu Soft Ltd. (now, QUALICA Inc.) into subsidiary.
February 2002 Turned AGREX Inc. into subsidiary.
April 2004 Turned UFIT Co., Ltd., into subsidiary.
April 2005 Turned Asahi Kasei Information Systems Co., Ltd. (now, AJS Inc.)
into subsidiary.

ROE

10.8％

Operating margin

7.4%

9.9％

Net sales

6.0％
4.8％

¥338.3 billion¥327.4 billion

5.9％© 2024 TIS Inc.

Fiscal2012¥448.3 billion¥405.6 billion¥620 billion¥549 billion

Above ¥3.5 million¥2.9 million¥361.0 billion

Medium-Term Management Plan (2024–2026)

1.5％

Fiscal
2009

8.1％

13.1%
11.8%

10.2％

Operating income per person
7.0%

Above 16%

16.0%

Seeking sustainable growth with added value, apply results
achieved to date as springboard to implement differentiation andconcentration strategies aimed at securing clear superiority
Fiscal2015

Fiscal2018

Fiscal2021

Fiscal2024

Fiscal2027

Fiscal2033

33

Reference: Measures to Realize Management Conscious of
Cost of Capital and Stock Price<Basic stance on sustainable improvement in corporate value>

Promote sustainability management based on TIS INTEC Group Philosophy “OUR PHILOSOPHY”
Address social issues through business activities
Robust growthinvestment

Co-creation withstakeholders

Improve value exchangewith stakeholders

Environmental
response from longterm perspective

Structuraltransformation

Constantly enrich ability to provide value to society andrealize corporate growthBusiness profit/profitability

Stakeholder
engagement

Continuous upgradesin governance practices

Enhance ESG activities and be recognized by external organizations

Market evaluation¥64.5 billion

Balance of growthinvestment andimproved
profitability

Raise level of management response to social demands

Capital efficiency¥776.9 billion

Proactive information
disclosure
Constructive dialogue
opportunities

Balance of growthinvestment, financial
soundness andshareholder returns

16.0%

11.8%
2.4 times

営業利益
Operatingincome

営業利益率
Operating margin

Even with robust growth investment for the future,including human resources investment, businessexpanded and profitability improved parallelingsteady business growth.

Market capitalization
時価総額

PBR
PBR

Market evaluation significantly improved, as proactive
information disclosure and opportunities forconstructive dialogue encouraged understanding ofand instilled confidence in management andunderpinned stronger management capabilities.

ROE

Fiscal
2024

24/3期

23/3期

22/3期

21/3期

20/3期

19/3期

18/3期

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2017 2018 2019 2020 2021 2022 2023

17/3期

Fiscal
2024

24/3期

23/3期

22/3期

21/3期

20/3期

19/3期

18/3期

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2017 2018 2019 2020 2021 2022 2023

17/3期

Fiscal
2024

24/3期

23/3期

22/3期

21/3期

20/3期

19/3期

18/3期

17/3期

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2017 2018 2019 2020 2021 2022 2023

6% level

Equity cost
株主資本コストIn addition to higher EPS, driven by businessgrowth, equity spread continued to widen,
reflecting financial measures aimed at optimizing
capital structure.

Going forward, we will aim for sustainable improvement in corporate value through sustainable creation of returns above cost of capital.
© 2024 TIS Inc.

34

Handling these materials
These materials are protected by Japan’s Copyright Law and the Unfair Competition Prevention Law. Unless TIS has expressly given permission, these materials shall not
be copied, duplicated, transcribed, reprinted or modified in part or in whole, inherent know-how shall not be used, and business secrets shall not be disclosed. Company
names, product names and logos are the trademarks or registered trademarks of each company.

© 2024 TIS Inc.