Consolidated Financial Summary
TIS Inc., and consolidated subsidiaries
Years ended March 31

6. Investment

9. Technological innovation

The Group invests in businesses (including startups) in Japan

In the information services industry, providers must respondand overseas with the aim of achieving business growth andquickly to advances in information technology and to changing

acquiring cutting-edge technologies, and it also invests in soft-market needs that parallel these advances. The Group is con-ware to develop services. Investment decisions are made in line

stantly exploring and researching information technologies,

with business plans after careful consideration, and progressproduction, development technologies, and other relevant

is periodically confirmed once an investment has been made.

fields to improve its ability to respond to market needs. Given

However, investments may not always deliver the planned

the pace of innovation in a wide range of fields, however,­outcomes due to factors such as unexpected changes in the

the Group’s business results may be affected if it responds

business environment, and the Group’s business results may­inadequately.

(Millions of yen)

Fiscal
2011

Fiscal2012Fiscal
2013

Fiscal
2014

Fiscal2015

Fiscal2016

Fiscal2017

Fiscal2018

Net sales

323,173

327,417337,834

346,647

361,025

382,689

393,398

405,648

Cost of sales

261,145

266,159

276,935

283,881294,927

312,153

317,440

321,286

Gross profit

62,027

61,25860,89962,766

66,09770,53575,95884,362

Selling, general and administrative expenses

49,20945,63642,72743,25544,97646,09948,93851,618Operating income

12,81815,621

18,171

19,51021,121

24,43627,01932,743

Recurring profit

12,625

15,393

17,44018,971

21,251

24,521

27,092

32,795

5,985

2,135

5,868

7,913

10,275

12,67816,306

20,62010. Intellectual property rights

Current assets

128,455

142,442

138,219

143,519

140,450

166,666

152,162

168,670

7. Information security

The Group applies for and obtains necessary patents on tech-

Fixed assets

172,620

167,560

164,083

170,091

205,401

169,828

185,459

200,833

The Group may gain access to confidential information, includ-

nologies and business models and registers trademarks in Japan

Total assets

301,076

310,003302,302313,610

345,851

336,495

337,622369,504

ing personal information held by clients as well as informationand overseas to assist its business operations. Although care is

Current liabilities

73,09083,06591,06372,79077,666

91,50878,67681,312on clients’ systems and technologies, in the course of develop-

always taken to avoid infringing the intellectual property rights

Non-current liabilities

76,87575,97253,07976,316

79,39564,44759,743

61,893ing and running systems for them. Efforts are made to properlyof third parties, a claim for damages may nevertheless be madeTotal liabilities

149,965

159,038

144,143

149,107

157,062

155,955

138,420

143,205

manage information in accordance with the TIS INTEC Groupagainst the Group for infringement of another company’sNet assets

151,110

150,965

158,159

164,502

188,789

180,539

199,202226,298

Information Security Policy. However, the Group’s business­intellectual property rights. The Group’s business activities andactivities and results may be affected if such information isresults may be affected if this occurs.

Total liabilities and net assets

301,076

310,003302,302313,610

345,851

336,495

337,622369,504

Total interest-bearing debt

77,45476,51560,55058,86952,115

46,15835,14432,876

Net income attributable to owners of the parent company

be affected as a result.

leaked, altered, or otherwise affected by such means as a com-

Cash flow from operating activities

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

18,95236,386

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

8,688(23,488)(14,202)

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

with various systems and structures to deal with a range ofCash and cash equivalents at the end of the term

36,492

41,11928,43343,142

29,48548,65125,73037,545

disasters. However, the Group’s business activities and results

Free cash flow

8,279

8,500

7,124

20,436

5,194

34,184(4,536)22,184The Group relies heavily on human resources and its businessmay be affected in the event of a longer than anticipated

Capital expenditures

18,325

14,096

12,287

12,544

16,873

14,21015,15916,907

activities are significantly influenced by its ability to attract,

power outage, major natural disaster, international conflict, act

Depreciation

12,30812,745

12,92012,454

12,80911,952

11,801

12,572

retain, and train people capable of providing specialized, highof terrorism, serious crime, or similar event that interrupts theResearch and development expenses

1,062

962

1,002

853

1,097

1,086

1,178

996

value-added services to clients. The Group endeavors to attractsmooth running of data center operations.

Amortization of goodwill

1,901

1,882

1,741

1,166

1,052339326

289

Goodwill balance at the end of the term

5,551

3,672

1,914

830

2,021

1,393

1,332

1,118

Net income per share—basic (yen)

68.19

24.33

66.86

90.16

117.40145.22189.02241.44

—

24.33

66.83

90.12

—

—

—

—

Dividends per share (yen)

32.00

18.00

21.00

25.00

30.00

33.00

36.00

40.00

Payout ratio (%)

46.9%

74.0%

31.4%

27.7%

25.6%

22.7%

19.0%

16.6%

puter virus or unauthorized access, and a claim for damages is

11. Natural disasters

made against the Group or the Group suffers damage to its

The Group offers outsourcing and cloud services through data

reputation as a result.

centers and other large IT facilities. These facilities are equipped

8. Human resources

and retain talent by such means as creating a corporate culture,
personnel systems, and office environment that allow diverse

12. Securities portfolio

individuals to maximize their potential, and it places a focus

The Group holds stocks to build stable and long-term relation-

on development of human resources by, for example, helping

ships with suppliers and promote sales, and bonds to utilizeemployees to acquire qualifications, systematizing training pro-surplus capital. Every effort is made to ensure the security ofgrams, and setting targets for the number of days that training

these investments by checking the financial status, perfor-

should be provided. However, the Group’s business activities

mance, and credit rating of the issuers and other relevant

Net income per share—diluted (yen)Net assets per share (yen)1,636.56

1,636.72

1,714.88

1,782.23

2,108.19

2,031.07

2,265.76

2,602.07

25.7%

24.7%

20.0%

18.8%

15.1%

13.7%

10.4%

8.9%

and results may be affected if recruitment, retainment, and­factors. However, the Group’s business activities and results

Interest-bearing debt ratio (%)

training of talented personnel does not proceed as well as

may be affected in the event of marked fluctuations in theEquity ratio (%)

47.7%

46.3%

49.8%

49.9%

53.3%

52.5%

57.8%

60.0%

expected.

stock market that lead to accounting losses or other such

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

4.2%

1.5%

3.9%

5.1%

6.0%

7.0%

8.8%

9.9%­consequences.

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

4.1%

5.0%

5.7%

6.2%

6.4%

7.2%

8.0%

9.3%

Number of employees at the end of the term

20,831

20,347

19,55319,081

19,09019,393

19,843

19,877

Number of new-graduate recruits

928

649

356

455

620

688

674

712

Number of regular recruits

370

450

379

549

499

687

575

840

Notes: 1. Total interest-bearing debt indicates the total sum of borrowed money and corporate bonds.
2. Free cash flows indicate the total sum of cash flows from operating activities and cash flows from investing activities.

63

ProfileGroup History

Value Creation Process

64
Consolidated Financial/
Non-Financial Highlights

To Our Stakeholders

Medium-Term
Management Plan

Group Business Strategies

Platform that Supports
Value Creation Process(ESG Section)

Consolidated
Financial Summary

Corporate Data

Corporate Data

(Millions of yen)

Fiscal
2011

Fiscal
2012

Fiscal
2013

Fiscal
2014

Fiscal2015

Fiscal2016

Fiscal2017

Fiscal2018

323,173

327,417337,834

346,647

361,025

382,689

393,398

405,648

IT Infrastructure Services

110,916

111,358

112,666

115,360

118,200

125,929

126,581131,700

Financial IT Services

72,66570,09971,49975,14879,54379,51984,051

92,983

Industrial IT Services

141,294

149,466

155,689

158,234

166,357

180,000

189,409

188,626

Other business

16,595

16,234

16,232

16,498

14,667

16,095

11,885

10,791

Inter-segment elimination/adjustments(18,298)(19,740)(18,253)(18,593)(17,742)(18,855)(18,528)(18,453)

12,81815,621

18,171

19,51021,121

24,43627,01932,743

Sales and Income by Business Segment
Net sales

Operating income

Domestic Group Companies

IT Infrastructure Services

8,131

8,049

7,101

7,652

7,179

8,924

10,158

11,743Financial IT Services

3,922

4,534

6,021

6,385

5,549

3,361

3,626

8,042

Industrial IT Services

1,625

2,658

4,992

4,687

7,049

9,972

12,496

12,835

Other business

1,313

2,277

2,153

2,152

2,159

2,649

1,084

1,006

Inter-segment elimination/adjustments(2,174)(1,898)(2,097)(1,367)

(816)

(471)

(345)

(884)

Sales by Client Sector
Net sales

TIS INTEC Group (As of July 1, 2018)[Vietnam]

Nexway Co., Ltd.

[Principal Companies]

HOKKOKU INTEC SERVICE Inc.

AGREX (Vietnam) Co., Ltd.

TIS Inc.

MicroMates Corp.

INTEC Vietnam Co., Ltd.

INTEC Inc.

Overseas Subsidiaries

AGREX INC.

[China]QUALICA INC.
AJS Inc.

PromptNow (Myanmar) Co., Ltd.

INTEC Information Technology (Wuhan)Co., Ltd.
INTEC Information Technology (Shanghai)Co., Ltd.

iBPS, LTD.
IUK Inc.

QUALICA (SHANGHAI) Inc.

AC MEDICAL INC.

Cloud Scope Technologies, Inc.

Tianjin TIS Hi-tech Information System
Service Co., Ltd.

KOUSHI INTEC Inc.

Tianjin TIS Software Co., Ltd.

327,417337,834

346,647

361,025

382,689

393,398

405,648Credit card

52,61445,084

48,84649,40253,74359,27465,00673,314

Banking

25,81926,702

26,23029,04925,444

27,86728,23327,452

Insurance

23,44822,931

23,83625,26924,972

26,33925,356

26,262Other finance

19,17823,416

21,33723,481

23,312

20,406

20,857

22,127TIS System Service Inc.

Assembly-based manufacturing

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

43,777TIS Solution Link Inc.

Processing-based manufacturing

26,13531,074

38,46833,84334,96035,061

36,95338,366

TIS Tohoku Inc.

Baseline Technology Consultants Co., Ltd.

Distribution

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

31,77328,872

TIS Total Service Inc.

CODE IT Consulting Co., Ltd.

Services

70,01771,01273,42572,666

77,53579,60189,607

93,258TIS Nagano Inc.

ECM Consulting Co., Ltd.

Public institutions

28,01530,10728,22530,39329,89136,60337,00235,923

TIS West Japan Inc.

I-AGREX (Thailand) Co., Ltd.

Others

8,754

10,456

11,241

11,626

13,604

15,376

15,882

16,292TIS Business Consultants Inc.

I AM Consulting Co., Ltd.

TIS Beijing Inc.

i Coach Co., Ltd.

Orders received during the term

INTEC Innovative Technologies USA, Inc.
TIS R&D Center, Inc.

Consolidated Subsidiaries
Non-Consolidated Subsidiaries

KOUSHIN INC.
[Singapore]

SKY INTEC INC.
SorunPure Inc.

QUALICA Asia Pacific Pte. Ltd.

Chuo System Corporation

TISI (Singapore) Pte. Ltd.

[Thailand]

162,287

174,680

179,352

172,721

199,842

207,345

208,307219,225

TIS Hokkaido Inc.

iHR Consulting Co., Ltd.

Financial IT Services

60,697

63,11765,367

63,927

69,22673,86175,361

84,039DATATRON Inc.

iTS–Tradeship Co., Ltd.

Industrial IT Services

101,590

111,562113,985

108,794

130,616

133,483

132,946

135,186

Registration Network, Ltd.

PromptNow Co., Ltd.

47,967

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

67,716

NEOAXIS Co., Ltd.

TISI (Thailand) Co., Ltd.

Financial IT Services

18,22924,452

26,057

23,82423,98325,79625,54728,461

Industrial IT Services

29,73833,32535,99735,044

47,111

44,164

39,204

39,255

Order backlog at year-end[United States]

TISI (Shanghai) Co., Ltd.

INTEC Solution Power Inc.

323,173

Order Status (Software development)[Myanmar]Notes: 1.	From the fiscal 2017 ended March 31, 2017, TIS reviewed the business segment of the partial clients In accordance with the change, fiscal 2016 figures
are recalculated.
2. Net sales include inter-segment sales.

65

ProfileGroup History

Value Creation Process

66
Consolidated Financial/
Non-Financial Highlights

To Our Stakeholders

Medium-Term
Management Plan

Group Business Strategies

Platform that Supports
Value Creation Process(ESG Section)

Consolidated
Financial Summary

Corporate Data