Outline of Medium-Term Management Plan

To realize sustainable growth and higher corporate value, we have made the current
medium-term management plan our first step toward achieving Group Vision 2026 andthrough further improvements within the Group, we will promote structural transformation and establish a resilient management foundation.

Transformation to 2020

Group Vision 2026
Taking advantage of the shift to an operating holding company in July 2016, TIS announced a new Group vision for
the future in May 2017 to mobilize the capabilities of Group executives and employees alike and take corporate
value higher. The new medium-term management plan is important because it is the first stage of a journey towardachieving Group Vision 2026.
2026 Corporate Ideal(From April 2018 to March 2021)“Create Exciting Future”

Utilize advanced technologies and know-how torealize business innovation and market creation—Achieving structural transformation as a corporate family and taking the leadin finding solutions to social issues—

Strategic Domains

Seeking Position on Global Stage● Be seen by leading companies in

Corporate Targets in 2020

approach work
enthusiastically

Increase high-value-added quality(boost value of technology/social
research results) throughvalue chain reformin three years¥80 billion¥430 billion
Operating income ¥43 billion ★
Operating margin
10%★

Structuraltransformation

Net sales50

to deliver ratio of%★
from strategic domain sales

ASEAN Region

Budget for growthinvestment tofuel structuraltransfmoration

Throughenhancedmanagement
efficiency

Becometop classROEgroup united in IT★ Key performance indicators

12%★

Become corporate groupthat contributes

solutions toenvironment/social issues
through business activities● Actively invest to rev

up growth engines● Improve value
provided to clients,
reinforce existing
fields throughproductivity
innovation

13

and programs that motivate
employees to work hard
Emphasis on ● Build human resources
employee self- portfolio that supports
structural transformation,
fulfillment
and optimize deployment
throughout Group

Constant transformation, with sense of speed● Proactively propose

Concentrateon corebusinesses

solutions to markets/clientsand transform structure to
realize business creation● Pursue strategicallydirected, robust investment, mainly throughM&A and service
investment

Advanced
technologies

Businessfunction
services

Strategic
partnershipbusiness

Medium-Term Management Plan (2018-2020) will guide us in pursuit of structural transformation with a sense of
speed to build a foundation for Group Vision 2026 success and expansion of strategic domains.
Medium-Term
Management Plan

2016

2026

(2018-2020)

Business Domains in 2016

● Create environment, culture

SustainableprofitgrowthIT offering
services

TIS INTEC Group management resources

Shift to priorinvestment
style ofbusinessdevelopment

Supportingclients’businesses

derived through business activities,
establish structure generating
medium- to-long-term benefits forsociety as well as profits to sustain
corporate presence● Achieve cost reduction throughenhanced, more efficient
headquarters function

Frontier
marketcreationbusiness

both a revenue base and a technology/know-how base
● IT Offering Services: Prior-investment
business functioning as pillar of profit● Business Function Services: Recognized as Group forte, driver of growth● Frontier Market Creation Business:
Driver of explosive growth throughcreative destruction of prevailing walls

Strategic Domains in 2026

Business
CreatorBasic Policy● With solutions to social issues

different industries as having anappealing presence, always trusted
as a strategic partner● Always embrace reform in existing
industries and markets, and earn
reputation as market-creating
innovator● Transcend the limits of an IT
enterprise; be a leading company
with innovative market concepts● Proudly demonstrate high profileand showcase solid standing as acorporate group chosen by clients,society, employees—everyone

Marketable
services

Frontier Market
Creation BusinessNetwork
infrastructureservices
BPO services

Specific
responses

Strategic
domainratio(net sales
basis)IT Offering Services

Business Function
Services

Strategic Partnership
Business

Provide IT
engineeringexpertise

IT domains

Expandglobalbusiness

Evolution ofstrategic
domains

IT system
configuration andoperation● Become top-class

IT group in ASEAN
region● Hone global
strengths,
emphasizing
payment settlement/banking/ERP
solutions

Growth Strategy/Business Strategyof the Group

Company where diverse
human resources, reliable,
proud and carrying
a sense of solidarity,● Strategic Partnership Business: Lay

Service domains

Fiscal 2018

Fiscal 2021

35%

50%

IT domains

Service domains

Above

70%

14

Working toward Medium-Term Management Plan Targets 1

We are off to a great start in terms of business results and various measures based on groupmanagement policy are, overall, more or less on tract despite a few issues of concern.
Overall Summary of Fiscal 2019
Fiscal 2019 Group Management Direction

Fiscal 2019
● Strategic domain ratio moved briskly upward, hitting 42%, or 7 points higher year on year. Emphasized concentration on core businesses.

△● Gross profit margin improved to 22.5%, reflecting
enhancement upgrades and efforts to reinforce
order profitability.

△

Focus on forte fields and key client businesses,
eliminate unprofitable projects, implement
enhancement reforms, and improve order profitability
in good business environment

Expand business domains established throughcooperation built over time with overseas partners inline with global strategy and pursue strategic
investments

Boost motivation and reinforce humanresource management
Strive to create framework and corporate culture inwhich employees—the driving force behind theGroup’s growth—can thrive, and steadily realize
measures described in personnel manifesto○

42%● Continued to strengthen ties with existing targetsof capital participation while pursuing new alliances.
● Accelerated business expansion through fusion ofmarketing channels and technologies as well as
creation of joint schemes involving TIS.

Fiscal 2020

Fiscal 2021

1. Strategic Partnership Business

3. Business Function Service

For clients at the top of their industry, we will draw on industry foresightand business knowledge that other companies cannot match—ourbusiness tools—to explore and promote business strategies with clientsand underpin business basics.

We will combine industry and business knowledge accumulated within
the Group and utilize advanced technologies to anticipate client needs
and provide business functions as services to enhance their value chains.

Desired Status
Building strong business partnerships to help clients expand operations
by jointly exploring business strategies and identifying and solving
business-related concerns.

Desired Status
Complementing IT Offering Service with new businesses to enhance
efficiency, mainly through automation, and providing high-value-added
services to clients.

2. IT Offering Service

4. Frontier Market Creation BusinessWe will combine leading-edge technologies and know-how accumulated
as a corporate group to create and quickly provide IT solution services
that anticipate client needs.

We will utilize Group technology, operating know-how and customer
bases to create new markets and business models matched to evolving
industry and social needs and develop businesses for these markets on
our own.

Desired Status
Allowing TIS INTEC Group strengths to blossom under IT Offering Service
banner; switch from labor-intensive style to non-price competition,knowledge-intensive style.

Desired Status
Creating new markets that become pillars of business for the Group.

Progress of Structural Transformation Strategy 2Turn service-style business—at the heart of IT Offering Service—into growth engine and vigorously leverage global businessgrowth by expanding accumulated strengths, taking a robust approach to investment and emphasizing open innovation.
Net sales moving in favorable direction. Operating income sluggish due to prior investment phase, but going forward,emphasis will be on boosting income.

○● Encouraged employees to reach for their own
career goals. Took steps, as planned, in line withTIS’ Human Resources SBU manifesto. Graduallyextended approach groupwide.

Net Sales¥117.6 billion ¥120.9 billion¥100.6 billion○

Operating Income

Medium-term
management plan
initial targets¥120.0 billion[Estimate]● “G20” project to elevate head office functions
moving along as planned.
● Formulated OUR PHILOSOPHY and promoted
sustainability-related activities, including identification of materiality.

Fiscal 2019

[Estimate]

Fiscal 2020

Medium-term
management plan
initial targets¥13.00 billion[Estimate]● External recognition, such as METI’s “White 500”
companies with excellent health and productivity
management programs.

Fiscal 201815

Fiscal 2019

Status of Service-Style Business

Pursue activities to enhance management
practices and boost efficiency
Steadily implement “G20” project to elevate head
office functions, and study and declare key
sustainability issues

40%

Fiscal 2018

● Sold subsidiaries following review of businessportfolio.
● Able to hold unprofitable projects to relatively low
level, but development loss ratio settled at 0.9%,
just off the 0.8% target.

45%

35%

ActualEstimate

50%

Growth Strategy/Business Strategyof the Group

Selectively invest in growth and forte fields to turnservice-style businesses into growth engines

Promote growth strategy aimed at becoming
a top-class IT group in ASEAN region● Service IT exceeded target, driven by demand for
payment settlement, ERP and network solutions.
Launched businesses requiring prior investment,
including token requestor service.
● Quantitative transformation required to achieve
medium-term targets, such as steady improvementin profitability on service-type businesses.

Robust prior investment to create
new services

Added-value and productivity improvements
in domains of expertise

Charting Growth in Strategic Domain Ratio(Net sales basis)

Looking Back on Fiscal 2019

Charge forward on switch toservice-style business
Push vigorously ahead on structural transformation,seeking new set of values and style emphasizing speed
and flexibility as well as knowledge-intensive stylebusiness structure

Progress of Structural Transformation Strategy 1
Medium-Term Management Plan (2018-2020) guiding structural transformation with sense of speed toward success ofGroup Vision 2026. Concerted effort to build content in strategic domains.
Favorable progress, with ratios in Strategic Partnership Business and IT Offering Service charging upward. Maintain
concentration on core businesses.

Fiscal 2021

¥8.13 billion¥8.50 billion

8.1%

7.2%

Fiscal 2018

Fiscal 2019¥9.20 billion[Estimate]

7.6%

Fiscal 2020

10.8%

Fiscal 2021

Anticipated Core Composition of Net Sales(Billions of yen)

Fiscal 2018

Fiscal 2019

Fiscal 2020 (Estimate)

Payment

10

15

20

StatusDevelopment aimed at introduction of credit SaaS-type services
will drive growth.

ERP

28

28

28

Maintain high level through response to system upgrade demand.

Data centers/cloud/networks

42

42

42

Existing data center business will shrink and cloud will attract
more interest.
16

Working toward Medium-Term Management Plan Targets 2
Further improvement in ROE
Further improvement in ROE
TIS has always adhered to management practices conscious of capital cost, and set a target of 12% for return on equity(ROE) by March 31, 2021, as a key performance indicator measuring return exceeding capital cost. To reach this target, we
will seek more appropriate capital composition and enhanced capital efficiency, with efforts to promote growth investment, maintain financial health and strengthen return to shareholders—all in the right balance.
Promote growth investment● Pursue growth investment activity, such as prior investment and M&As, more robustly.
Envision maximum ¥80 billion in investments over three years. Seek 50% contribution
from strategic domains and operating margin of 10% through structural transformation.

Promotegrowthinvestment

Maintain financial health● Keeping in mind goal to maintain A rating, ensure equity ratio above 50% and allow
debt-to-equity ratio around 0.5 times.

Maintainfinancialhealth(Fiscal 2018)

Net income ratio

ROE

12.0％

×
Total asset(Fiscal 2018)

×(Fiscal 2018)

turnover ratio(Fiscal 2021)

Financial leverage

Investment Strategy

6.7％

5.1％
1.15
1.70

(Fiscal 2021)

stable dividend growth.

● Set upper limit on treasury stock holdings to 5% of total number of issued shares, with excess of this amountcancelled.

Total return ratio (yardstick)

Payout ratio (yardstick)Upper limit on treasury
stock holdings at(up from 35%)

(by March 31, 2021)(excess cancelled)40%

Payout ratio(Fiscal 2021)

Slight rise
(Fiscal 2021)

40%
35%

31.9%
19.0%

16.6%

44.7
15.9
28.7

51.9
20.9
30.9

Fiscal 2016

Fiscal 2017

Fiscal 2018

paralleling growth investments

40.0%

3.42

ActualEstimate

22.8%

Fiscal 2020
[Estimate]

Medium-term
management plan
initial targets

405.6

420.7

425.0

[Estimate]

Medium-term
management plan
initial targets

430.0

40.0

[Estimate]

38.0[Estimate]

9.0%

9.4%

43.0

[Estimate]

32.7

10.0%

Operating margin

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

shareholding ratio)

Net Income Attributable to Owners of the Parent Company
Investment Management Policy

27.1

26.0

[Estimate]● Investment in software for creating new services: ¥7.5 billion● Investment in personnel to promote structural transformation: ¥2.0 billion● Investment in R&D to obtain leading-edge technologies: ¥1.0 billion● Investment to growth strategic domains: ¥8.2 billion

Emphasis on investments aimed at promoting global
business, such as capital contributions in line with capitaland business alliances, including purchase of convertible
bond with stock acquisition rights issued by AnabaticTechnologies.

5.1%

6.2%

Medium-term
management plan
initial targets

29.0[Estimate]

11.5%

11.5%
[Estimate]

12.0%[Estimate]

9.9%

20.6

Investment Status (as of March 31, 2019): ¥18.8 billion

ROE

Medium-term
management plan
initial targets

Fine-tune investment management practices to capture appropriate return from robust investment activity
Carefully select investment targets, based on investment efficiency index and investment cost, andtoughen up rules for exit management

17

Fiscal 2021
[Estimate]

Operating Income● Pursue research into advanced technologies anticipating trends● Rev up open innovation● Invest in new companies to capture know-how and promote services● Increase investment into alliance companies (higher

8.70(Current Medium-Term Management Plan)

Fiscal 2019

8.1%

Investment to grow strategic domains(¥50 billion, including M&A)

2.90

6.72

5.94

Net Sales

constantly sharpen competitive edge

＋

11.60

10.86
4.14

10.14
4.20

[Billions of yen]strategic domains and advanced technology fields● Build human resources portfolio that facilitates best possible
deployment throughout Group

Investment in R&D to acquire
advanced technologies (¥5 billion)

30%

24.8%

Numerical Targets● Investment into development of own services● Allocate fixed percentage of business profits for investment and● Develop skills of human resources who will realize switch toInvestment in human resources to fuelstructural transformation (¥8 billion)

30.5%

6.28
2.85

Key Investment Objectives (envisioned)

Software investment to create new services(¥17 billion)

40%
39.0%

22.7%

● Pursue growth investment activity, such as prior investment and M&As, more robustly to fueltransformation of business structure. Envision maximum ¥80 billion in investments over three years.

5%

Total return ratio ■ ■ Total dividends ■ ■ Acquisition of treasury shares[Billions of yen][Billions of yen]

Improved profits through progresson structural transformation

Greater improvement in equity
ratio offset by new acquisition ofinterest-bearing debt

30%

35.3%

Slight drop Increase in business assets(Fiscal 2018)

Investment Policy● Raise total return ratio yardstick to 40%, from 35%. Aim for dividend ratio of 30% by fiscal 2021 throughGrowth Strategy/Business Strategyof the Group

Picture of ROE Success

9.9％

Strengthen return to shareholders● Raise total return ratio yardstick to 40%, from 35%, and then aim for payout ratio of
30% by fiscal 2021 through stable dividend growth.
● Set upper limit on treasury stock holdings to 5% of total number of issued shares, withexcess of this amount cancelled.

Strengthen
return toshareholders

Basic Policy on Return to Shareholders

6.4%

6.7%

Fiscal 2020

Fiscal 2021

Net income to net sales ratio

Fiscal 2018

Fiscal 2019

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021
18

Message from the Executive Vice President

We will leverage structuraltransformation and work
toward higher corporate
value, underpinned by a“profit emphasis”
management policy.

Another year of record business results against a favorable business backdrop.
Off to a great start.
Summary of Fiscal 2019 Results*Please go to page 23 for details on business strategies and performances by segment.

Masahiko Adachi,
Representative Director,
Executive Vice President

If we look at the changes that affected operating income, theeffect of higher sales—¥3,480 million—and improved productivity—¥6,830 million—generated a ¥10,420 million increase ingross profit, with the gross profit margin rising 1.7 points, to22.5%. This absorbed an increase of ¥5,120 million in selling,
general and administrative expenses, which then left operating
income ¥5,300 million higher than a year ago. The upwardchange in selling, general and administrative expenses is largely
due to greater spending in support of structural transformation,
and we considered this to be a forward-looking allocation offunds from the perspective of upfront investment contributing to
growth in the medium term. Note that unprofitable projects in fiscal 2019 hovered at ¥2.2 billion, up about ¥400 million year on
year. This may be lower than in the past, but we accept with all
due sincerity the fact that we failed to hold the development loss
ratio within the predicted level of 0.8%, or about ¥1.8 billion, ona full-year basis. Going forward, we will be more thorough in ourefforts to control the appearance of unprofitable projects.

Operating Income Analysis, Increase/
Decrease Reasons−5.12(Billions of yen)

Increased SGA
Improved expenses
profitability

32.74

Increased sales ＋6.93

＋3.48

38.04
＋5.30
（＋16.2%）

Increased gross profit＋10.42Gross profit margin

22.5%

Actual(YOY change +1.7 points)

Fiscal 2018

Fiscal 2019

Prior investment costs incurred in promoting structural transformation: YOY change +¥750 million

Fiscal 2019: Performance Highlights
ActualEstimate

Net Sales(Millions of yen)

YOY change:+¥15,121 million [+3.7%]
Compared with estimate: +¥6,769 million [+1.6%]

405,648

Net Income Attributable to
Owners of the Parent Company

Operating Income(Millions of yen)

YOY change:+¥5,300 million [+16.2%]
Compared with estimate: +¥3,043 million [+8.7%]

420,769

414,000[Estimate]

38,04332,743

9.0%

MarginFiscal 201819

Fiscal 2019

Fiscal 2018

YOY change:+¥5,413 million [+26.3%]
Compared with estimate: +¥2,734 million [+11.7%]

Fiscal 2019

YOY change:+¥66.39 [+27.5%]
Compared with estimate: +¥34.28 [+12.5%]

307.8323,30020,620

5.1%[Estimate]Net
income tonet sales
ratio

Fiscal 2018

ROE

(Yen)

26,03435,000[Estimate]

8.1% Operating

Net Income per Share(Millions of yen)241.44273.55[Estimate](%)

YOY change:+1.6 points
Compared with preliminary calculation: +1.3 points

11.5
9.9

10.2
[Current
calculations]6.2%

Fiscal 2019

Fiscal 2018

Fiscal 2019

Fiscal 2018

Fiscal 201920

Growth Strategy/Business Strategyof the Group

Fiscal 2019, ended March 31, 2019, was the first year of Medium-Term Management Plan (2018-2020). A good operating environment created a favorable tailwind that we rode to a solid landing, exceeding initial performance targets. Net sales increased
for the ninth straight year and operating income grew for the eight straight year, marking all-time highs. We are definitely off to agreat start.
Under good operating skies, we accurately identified client needs in sectors where the trend toward IT investment is particularly
strong. This translated into a 3.7% increase in net sales, to ¥420.7 billion, which was 1.6% more than our original target. Operating
income jumped 16.2% year on year, to ¥38.0 billion, or 8.7% better than we had expected, pushing the operating margin to 9.0%,
compared with 8.1% a year ago. Net income attributable to owners of the parent company followed suit, climbing 26.3% year on
year, to ¥26.0 billion, or 11.7% more than projected.
By key segment, the drivers of growth were the Service IT Business, which benefited mainly from wider demand for payment
settlement-related services and ERP upgrades, and the Industrial IT Business, which enjoyed a positive shift in demand due to growing IT investment by a wide range of client groups, including companies in the energy business. The BPO Business and the Financial
IT Business posted lower sales, but the downturn reflects, for BPO, a significant impact from the fourth-quarter sale of consolidated
subsidiaries as part of management’s policy of concentrating on core operations and for Financial IT Business, a reactionary drop following the end of some large development projects. Operating income was up year on year in all segments, with a notable increase
for the Industrial IT Business, thanks to the success of measures to boost profitability, including a review of transaction margins andsteps to enhance productivity.

The “profit emphasis” management policy will become a major driving force, steadily pushingcorporate value higher.

We will make steady progress toward the targets stated in our medium-term management plan.

Toward further improvement in ROE

Business sentiment for fiscal 2020 is rather uncertain, but the operating environment for the TIS INTEC Group is expected tocontinue to shift in a favorable direction, reflecting greater interest in digital management and a stronger trend toward IT
investment by companies keen to realize management strategies based on robust use of IT.
Against this backdrop, the Group will work energetically on various measures, making steady progress toward Medium-Term
Management Plan (2018-2020) targets, based on stated management direction. We anticipate higher sales and income on aconsolidated basis in fiscal 2020, with net sales inching up 1%, to ¥425 billion, operating income rising 5.1%, to ¥40 billion, theoperating margin improving 0.4 point, to 9.4%, and net income attributable to owners of parent increasing 4.1%, to ¥27.1
billion. These estimates assume a net sales impact totaling about ¥12.0 billion, comprising about ¥6.0 billion from the sale ofsubsidiaries at BPO and others, and another ¥6.0 billion due to a drop in demand for system development following completionof large projects at Financial IT Business. Also, for operating income, we are assuming an increase of about ¥2.5 billion earmarked
for robust upfront investment to leverage structural transformation. We are aiming for a gross profit ratio of 23.1%, up 0.6 pointfrom fiscal 2019, which would see us achieve our target of 23%, which was internally assumed on the expectation of an
operating margin of 10%, a year ahead of schedule.

Throughout the TIS INTEC Group, we emphasize management practices conscious of capital costs, and the medium-term
management plan describes a target of 12.0% for ROE as a key performance indicator measuring a return that exceeds capitalcosts. To achieve this target, we will seek a more appropriate capital composition, underpinned by efforts to promote growthinvestment, maintain financial health and strengthen return to shareholders—all in the right balance.
ROE for fiscal 2019 reached 11.5%, up 1.6 points from fiscal 2018, putting us ever so close to our 12% target. The biggest
factor for this was better business results and, subsequently, improved profitability. Taking advantage of our transition to an
operating holding company in July 2016, we accelerated decision-making and delivery of strategies groupwide. This fueled thesuccess of various measures, not limited to reducing the number of unprofitable projects, which had been a major issue, but
extending to enhanced KPI management, including verification of potential profitability at time of order receipt and improved
productivity in enhancement domains. In addition, we were able to implement the profit emphasis more thoroughly, exemplified
by a careful review of the business portfolio from a profitability perspective. Comparing key numbers for fiscal 2016—which
preceded the transition to an operating holding company—with the most recent fiscal year, that is, fiscal 2019, shows significant
growth across the board. But what is particularly noteworthy is how fast the gross profit margin improved. Achieving 22.5% in
fiscal 2019 means the inherent strength—the success factor—of our businesses is more robust. Consequently, earnings per share
has more than doubled over the past three years, driving ROE higher. The profit emphasis has steadily propelled corporate value
higher, and I feel it will continue to generate good results. Also, this breeds a positive cycle, represented by the fact that TIS’ total
shareholder returns over the last five years exceed TOPIX (Tokyo Price Index) and results reported by industry rivals.
From this point forward, if we can realize structural transformation as planned, we will take profitability to new heights,
which in turn fuel progress toward the 10% target we have set for operating margin, as per the medium-term management plan,
as well as the 12% target for ROE. This will be our new starting point—a launchpad for the next medium-term management
plan—and even higher targets.
To meet the expectations of our stakeholders, we will continue to promote structural transformation through steady
implementation of various measures and work toward achievement of Group Vision 2026, which guides us through the current
medium-term management plan and beyond, and then leads us to higher corporate value. I ask for the continued support ofshareholders, investors and other stakeholders as we work toward new success.

Group Management Direction in Fiscal 2020
Robust prior investment to fuel business expansion and structural transformation
Selectively invest in growth fields and areas of expertise to turn service-style businesses into growth engines
2 Promote measures and review business portfolio with view toward higher profitability
Concentrate on forte fields and key client businesses, eliminate unprofitable projects, emphasize order profitability and thoroughly implement
enhancement reforms
3 Promote growth strategy aimed at becoming a top-class IT group in ASEAN region
Expand business domains and pursue strategic investments through cooperation built over time with overseas partners in line with global
strategy
4 Boost motivation and take human resource management to higher level
Strive to create framework and corporate culture in which employees—the driving force behind the Group’s growth—can thrive, and steadily
realize measures described in personnel manifestos
5 Realize enhanced management practices and higher efficiency
Instill widespread awareness of unified, groupwide management, based on OUR PHILOSOPHY, promote “G20” project to elevate head office
functions, and kick off new system “GAIA”
1

Fiscal 2020 Performance Forecast

Fiscal 2020 (plan)

YOY changes

Net Sales¥425,000 million+¥4,231 million [+1.0 %]Operating Income¥40,000 million+¥1,957 million [+5.1%]

Operating Margin

9.4%+0.4 points¥27,100 million+¥1,066 million [+4.1%]

6.4%+0.2 points¥324.10+¥16.27 [+5.3%]

11.5%(current calculations)+0.0 points

Net Income Attributable to Owners of Parent Company
Net income to Net Sales Ratio
Net Income per ShareROE

We will enrich return to shareholders matched to growth in business results, based on a 40% total
return ratio.

350
CAGR (Compound Annual Growth Rate) of Key Figures
Fiscal 2016

Fiscal 2019

Changeduring three years

382,689

420,769+38,080

3.2%

250Gross Profit Margin

18.4%

22.5%

+4.1 points‒

Operating Income
200Operating Margin

24,43638,043+13,607

15.9%

6.4%

9.0%

+2.6 points‒

Net Income Attributable to Owners of the Parent Company
150
Net Income per Share (Yen)

12,67826,034+13,35627.1%

145.22307.83+162.61

28.5%

100ROE

7.0%

11.5%

+4.5 points‒(Millions of yen)300
Net Sales

2018

2019

2020

2021

2022

Total shareholder return (TSR)

Return to shareholders

350

TIS’ basic policy is to keep internal reserves at a level sufficient to ensure business
Fiscal 2019
Fiscal 2020
growth from a medium- to long-term perspective, while continuing to pay a stable
Annual¥70¥80
dividend in consideration of consolidated financial results. Based on this policy, we(YOY change: +¥30)
dividends per(YOY change: +¥10)
Comparedwithshareseek to enhance return to shareholders by boosting the total return ratio yardstick, toestimate: +¥10)
40%, from 35%, during Medium-Term Management Plan (2018-2020) and then realAggregate acquisition
Total acquisition
Acquisition ofamountamountize a payout ratio of 30% by fiscal 2021 through stable dividend growth.
treasury share¥4.2billion¥4.1billion
The annual dividend for fiscal 2019 was higher than in fiscal 2018, extending the
Total return ratio
dividend growth for the seventh consecutive year. And given better-than-anticipated
39.0%
40.0%
business results, we increased the year-end dividend by ¥10 per share, to ¥70 per
share from the initial plan of ¥60 per share. Consequently, the total return ratio hit 39.0%, accounting for the repurchase of
809,100 shares of treasury stock for ¥4.2 billion.
Looking to fiscal 2020, we intend to pay an annual dividend of ¥80 per share, up 10% from fiscal 2019, for a payout ratio of
24.8%. The total return ratio will hover near 40%, accounting for the repurchase of 749,800 shares treasury stock between May
and July 2019 for ¥4.1 billion.

300

21

2017

Compound annual growthrate (CAGR)

250

TIS

273.8%
255.6%

NRI

200.9%
192.2%

200
150
100

321.7%
308.4%

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

NTT-D
CTC
SCSK
NSSOL

161.1%UNISYS147.1%

Dividend included
TOPIX

Fiscal 2019

Source: Based on fiscal 2019 securities report of each company
22

Growth Strategy/Business Strategyof the Group

Performance Forecast for Fiscal 2020

Business Strategies and Performances by Segment

Service IT Business

BPO

Provides original knowledge-intensive IT services leveraging TIS’ service and industry know-how to create
universalized, template-oriented solutions for clients (includesdefault configuration and ERP).

Draws on Group’s extensive service menu and IT know-how to deliver business process outsourcing (BPO)
services, including marketing and sales services and office and contract operations.

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

● With priority allocation of management resources toward growth engines and use of advanced● Improve gross profi t ratio on existing entry services through BPO concentration effect and businesstechnologies, expand business (IT Offering Services) through shift toward business anticipating priorinvestment by clients● Watch for changes in structure of payment settlement business and expand prior investment style services

not only for debit and prepaid card transactions but for credit card transactions as well

Segment sales include intersegment sales.

ActualEstimates

Operating margin

120,900

13,000

8,519

8,300

8.1%
7.2%

Fiscal 2019

Fiscal 2020

ActualEstimates(Millions of yen)

Initial estimates

120,000

8,139

Fiscal 2018

(Millions of yen)

Operating Income

Fiscal 2021

Fiscal 2018

Fiscal 2019

9,200

Actual

38,25736,23139,000

10.8%

3,000
2,000

31,800Fiscal 2021

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2018

Expanded payment settlement-related business and greater ERP replacement
demand covered prior investment costs aimed at strengthening business. Led
to higher segment sales and income year on year. Exceeded target.

●Sustained trend toward greater use of cloud services. Domestic security

Segment sales relatively stable, but sale of subsidiaries had significant impact,
causing year-on-year decrease. Missed target. Segment income was up year
on year, owing to tougher measures, such as review of transaction profitability, but still came in below target.

market should continue to present high demand.
●Structural changes in payment settlement market parallel progress

toward cashless society in Japan. More companies in wide range ofbusiness sectors pursuing robust IT investment activity.
From now

Branded debit card-related
Service provision/systemdevelopment results
Domestic market share

23

About

80%

There are about 440 million debit cards
affiliated with an international brand inJapan. Settlement transactions havereached about 260 million per year, with anaggregate value of about ¥1.4 trillion.
The TIS INTEC Group boasts anoverwhelming share—about 80%—of themarket, on a transaction-handling financial
institution basis, through such solutions as
DebitCube+, which provides one-stop
access to services required or branded debitcard issuance and operation.

Fiscal 2019

Fiscal 2020

Fiscal 2021

Understanding the External Environment●Growing demand for BPO services that help companies improve

operations on an administrative level.
●Greater need for digital innovation due to prolonged labor shortage

and progress in workstyle reform.
●Impact, mainly from requests for lower prices on existing BPO services,

Fiscal 2020 Performance Forecast
Despite year-on-year drop in sales due to sale of subsidiaries, operating income
should rise, reflecting efforts to improve profitability through restructuring
based on thorough profit management and a shift toward high-level, combined
BPO services.

Promoting cashless
settlement in Japan

Example of IT services in the TIS INTEC Group
portfolio that help support clients’ businesses,
the lifestyles of individuals and social
infrastructure

7.0%

6.3%

4.3%

Fiscal 2019 Performance Results

To date

2,000

1,843

5.1%

7.6%

Understanding the External Environment

Will take advantage of IT investment activities in growth fields, such as thecloud and networks, as well as expanding payment settlement business and
ERP demand to absorb cost burden of prior investments. Should lead tohigher sales and operating income.

(Millions of yen)

Initial estimates

43,000

1,638

Fiscal 2020

Operating margin

Initial estimates

Fiscal 2019 Performance Results

Fiscal 2020 Performance Forecast

Estimates

a cause for concern.
To dateFrom now

Support centralized information
management at financial institutions and raise efficiency
and sophistication of operations

Supporting greater operating
efficiency in e-commerce

F3 (F Cube)

System configuration andoperation track record

Data entry services

38 of 64 banks

Number of connections

Annually

CRM implementation(regional banks)

Of note, share of top 30 regional banks(total funds) at 80%.
F3 CRM System for financial institutions
has been installed at more than half of theregional banks in Japan. In addition,
demand for a cloud-based application is
rapidly expanding, with overall delivery of
the F3 series reaching more than 90
financial institutions.

EDI

About

100,000

ID connections

Electronic data interchange (EDI) services
are used in a range of industries, and ourapproximately 100,000 ID connections
make us the market leader. We also haveextensive experience in developing andoperating enterprise EDI platforms swiftly
tailored for internet EDI.

Helping to promote management
strategies using BPO services toboost productivity

Handling volume

About

80 million entries

The TIS INTEC Group is the expert indomestic BPO services, with more than 50
years of history in the field.
Data entry services, facilitated primarily
through top-class systems in Japan andnetworks at home and abroad, havereached about 80 million entries a year.

24

Growth Strategy/Business Strategyof the Group(Millions of yen)

Net Sales

Initial estimates
100,603drawing on shift to high-level, combined BPO and use of forte business knowledge and advanced
technologies.

Operating Income

Estimates

117,617 116,500● Expand business and boost profi tability (Business Function Service) through more sophisticated BPO

Segment sales include intersegment sales.

Net Sales
Actualrestructuring

Financial IT BusinessIndustrial IT Business

Leverages business and operating know-how specific to the financial sector to raise value-added quality ofclients’ operations, expand use of IT, and provide IT-based support for operations.

Utilizes business and operating know-how specific to non-finance industries to raise value-added quality ofclients’ operations, expand use of IT, and provide IT-based support for operations.

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

■ Business Growth Strategies, Focus Points of Medium-Term Management Plan

● Expand business (Strategic Partnership Business) by strengthening connection to extensive client base of● Expand business (Strategic Partnership Business) by strengthening connection to extensive client base in● Increase provided value by utilizing Mode2 and other digital innovations as well as AI and other advanced● Increase provided value by utilizing Mode2 and other digital innovations as well as AI and other advanced

credit card companies, banks and insurers, and creating business together

technologies, and boost profi tability by promoting measures, such as enhancement innovation activities, toimprove productivity

Segment sales include intersegment sales.

106,436 104,500(Millions of yen)

108,100

ActualInitial estimates

Estimates

12,797100,000

11,331Net Sales

Operating margin

11,800(Millions of yen)

ActualEstimates

Initial estimates

13,40012,000Operating Income

189,595

176,485(Millions of yen)

180,000

192,500

ActualInitial estimates
185,000

Fiscal 2020

Fiscal 2021

Fiscal 2018

Fiscal 2019 Performance Results
Despite year-on-year decrease in sales due to reactionary drop on large
development projects, segment exceeded target, driven by trend toward greater IT
investment by core clients, particularly those in credit card sector. Segment income
was up year-on-year and surpassed target, thanks to enhanced productivity.

Initial estimates
14,500

8.1%

7.8%

6.5%

Fiscal 2019

Fiscal 2020

Fiscal 2021

●Expect expanding demand related to cashless payment settlement,

including reward points, paralleling hike in consumption tax.
●Banks, especially megabanks, resuming IT investment efforts, tounderpin business reforms.

Despite reactionary drop in sales associated with large projects, operating
income should increase year on year, reflecting efforts to strengthen ties tocore clients, engage in value-added services and improve productivity.

(Millions of yen)

12,500
7.8%

12.0%

Understanding the External Environment

Fiscal 2020 Performance Forecast

15,60014,777

10.6%

Fiscal 2019

Operating margin

11,509
12.4%

12.0%

Fiscal 2018

Estimates

To dateFrom now

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2018

Fiscal 2019 Performance Results

Fiscal 2019

Fiscal 2020

Fiscal 2021

Understanding the External Environment

Sales and income up year on year, owing to greater IT investment by a wide
range of client groups, including companies in the energy business. Exceeded
target.

●Sense of uncertainty about business climate for some members of

manufacturing sector but IT investment needs for clients keen toembrace digital management, including use of AI, IoT and other new
technologies, should remain firm.

Fiscal 2020 Performance Forecast●IT investment associated with electric power/gas system reform should

Will absorb reactionary drop from large projects with high-value-added services
underpinned by consultations and enhanced upstream operations and byboosting productivity, which should lead to higher sales and income year on year.

stay a high level, underpinned by projects related to corporate splits.
To dateFrom now

Note: Paralleling a change in know-how used in services provided to specific clients—from industrial IT to financial IT—transactions with such clients were booked underindustrial IT in fiscal 2018 and financial IT in fiscal 2019.
Supporting safe and secure,daily credit card settlement

Credit cards

Core system development
results

Example of IT services in the TIS INTEC Group
portfolio that help support clients’ businesses,
the lifestyles of individuals and social
infrastructure25

Domestic market share

About

50%

(On annual transaction volume basis for clients served)

Of 25 companies in Japan with significant
consumer credit transaction volumes, 10
are in the Group’s client base for coresystem development.
Credit extended for card-facilitatedpurchases has reached ¥67 trillion in Japan.
The 10 companies that are in the TIS INTECGroup client base have aggregate
membership of about 190 million people
and credit transaction volume representing
about 50% of the total market.

Aiding new entrants tothe deregulated
power market

Highly evaluated as restaurant
sector-specific shop
management system

EneLink

TastyQube

Usage

System implementation

Share of switchers in Japan
About

40%

EneLink is the choice of about 40% of users
switching to PPSs since deregulation ofJapan’s electricity retail market began in
April 2016. In addition, the lineup is being
expanded to meet wider market
participation, including new entrants into
city gas and aggregation businesses*1.

20%

Contributing to stable insurance
system platform creation

For Federation of
National Health Insurance Associations
Track record in system implementation/operation/
maintenance(Top 200 companies in the restaurant sector)

12 of 47 prefectures

TastyQube is highly versatile and can beapplied to any restaurant format, helps tovisualize shop operations, and realizes
enhanced operating efficiency.
The solution has been applied to about
20% of market share, mainly forrestaurants, cafes and pubs.

Of the 47 prefecture-based members of theFederation of National Health Insurance
Associations in Japan, the TIS INTEC Grouphas been tapped to install, operate andmaintain systems for 12 members.
About 6.1 million people are covered bythese 12 insurance associations.

About*1 Optimum control by bundling energy sources, such as storage batteries, power-generation facilities anddemand-response providers, to stabilize the grid and avoid output control on renewable energy.

26

Growth Strategy/Business Strategyof the GroupOperating Income

Estimates

106,655

technologies, and boost profi tability by promoting measures, such as enhancement innovation activities, toimprove productivity

Segment sales include intersegment sales.

Net Sales
Actualindustry and public sectors, and creating business together

Strategies for Payment Settlement Business

Leveraging our strengths to accelerate business development andrealize a cashless society
Our major strengths are the experience, technology, know-how, and abundant human resources we have cultivated overmany years handling development and operation of core systems for major credit card companies. Deploying thesestrengths, we have established a position as the leading system integrator in the domestic settlement field.
Amid recent advances in cashless payments, conditions in the payment settlement market are changing dramatically
due to progress in smartphone and other related technologies, the entry of companies from different sectors, and therise of FinTech companies. Viewing this situation as a new growth opportunity, we develop and operate core systems for
major credit card companies, which represent an important foundation of our business. We are also deploying our
PAYCIERGE digital payment platform to accelerate business development.

■ Status of cashless payments in Japan● The Japanese government is promoting cashless payments, which are expected to become more widespread in the future● The credit card is a typical tool for making cashless payments, and the credit card transaction volume is expected to increasein the future alongside an increase in mechanisms for linking cards to code-based credit services, such as QR codes and barcodes, that have become popular in recent years.

Cashless payments (¥ trillions) and cashless payment ratio (%)

Combination of cashless payment methods

80.0%(¥trillions)

100

40.0%
50

Supporting safe and secure,daily credit card settlement

Credit cards

Domestic market share

About

50%

(On annual transaction volume basis for clients served)

Branded debit card-related
Service provision/systemdevelopment results
Domestic market share

About

80%

■ PAYCIERGE digital payment platform
PAYCIERGE is a comprehensive, highly convenient, and reliable payment solution for all people who require retail payments.

20.0%
11.9%
0

2008
Electronic money

Future2016

2025

Credit card

Debit card

Cashless payment ratio<Payment method>

Contact typePrepaidNon-contact
type

Instant debit

Code reading
type

After pay

Source: TIS Compiled based on Cashless Vision (Ministry of Economy, Trade and Industry, April 2018)■ Next-generation card processing service, CreditCube+
Alongside advances in cashless payments:

Collects, analyzes, and utilizes detailed data
related to payment information, consumption
behavior, and the like in order to attract
customers and create new services.

● Increasing entry of companies from different industries into the cashless paymentbusiness● Increasing need for in-house operation of credit card business

Concept

Features

Providing core functions for credit cardbusiness in shared-use format

Leveraging our past experience andexperience, we provide credit card functions
as a core service that can be shared bymultiple issuers, who can also share their
responses to legislative changes.

Providing card products and functions
tailored to customers’ businesses

Swift, low-cost responses based onabundant standard functions that covermarket needs.
● Providing functions/services as components● Low-cost, speedy introduction● Addresses customer demand for moreadvanced services● Flexible to open innovation● High profi tability (lower system costs)● Enhanced conventional functions

Advantagesof adoption● Expandability and fl exibility thanks to micro-services● Open API enables new services and businesses● Enhanced staff allocation effi ciency thanks to cloud(Reference) Difference between vendor-developed information system and shared-use information system (image)

Vendor-developed information system

We have a particularly strong competitive advantage in the fi eld of “digital account services,” which enable us
to provide all sorts of processing services, including prepaid, instant debit, and after-pay credit.
Among these digital account services, here we introduce CreditCube+, which provides the total environment necessary forcredit card issuing operations. We are preparing for the launch of CreditCube+, which takes full advantage of the technologies
and know-how of the core credit business system, CreditCube.

27

Company A

Company B

Company C

SystemSystemSystemShared-use information system
Company A

Company B

Company C

SystemTIS
The vendor designs and develops systems at the request ofeach company according to individual specifications, thenprovide the systems to the relevant companies.

TIS
Systems are built as platforms with common specifications,then provided to multiple companies in service format.

28

Growth Strategy/Business Strategyof the Group

Core system development
results

Promoting cashless
settlement in Japan<Interface>Global Business Strategy

Business domain expansion and strategic investment to create oneof the ASEAN’s leading IT consortiums■ Key M&A Targets in Recent Years, Capital/Business Alliance Results

Step3:

Step1:

Expansionin China

Expand global business in ASEAN region
through capital and business alliances andaccelerate area development

Step2:

Three-point
expansion in
Thailand, Singapore,
Vietnam+Acquire/invest in promising products
and state-of-the-art technology● Prioritize areas of retail payment settlement, banking and ERP,

and emphasize greater cooperation between locations● Invest in promising products and the most advanced
technologies in the West (Europe/U.S.), China and ASEAN● Actively leverage strategic investments and expand portfolio● Work to develop and expand scope of global human resources

Payment settlement/banking/ERP
solutions

Capital/business alliance

ChannelAnabatic
Indonesia

MFEC
ThailandAugust 2018
Increased
investment stake+ purchased
corporate bonds

December 2018
Increased
investment stake

Thailand

VietnamJune 2018
Formed capital/businessalliance

SQREEM

May 2019
Formed capital/business alliance

ASEAN

AI technology targeting human behaviour<Business scale>
about

R3

¥57.0billion*

Block chain<Network>
countries,

CardInfoLink*Aggregate net sales ofsubsidiaries and affi liates
accounted for by the equity
method in ASEAN region

PromptNow

7

71companies

Capital and business alliance in July 2015. Increased stakein August 2018, along with purchase of corporate bonds.
Indonesia-listed, top-tier local IT company.

MFEC Public Company Limited(Equity-method affiliate = 24.9% stake)

Capital and business alliance in April 2014. Increased stakein December 2018.
Thai-listed, leading provider of enterprise IT solutions.

I AM Consulting Co., Ltd.
(Consolidated subsidiary = 99.9% stake)Net sales: ¥41.8 billion

Net sales: ¥11.5 billion

Net sales: ¥2.6 billion
Turned into consolidated subsidiary in June 2014.
Thai-based consulting group producing total SAP-related IT solutions.

TinhVan Technologies JSC.
(Equity stake: 19.9%)

Capital and business alliance in June 2018.
Leading IT service provider with considerable experience introducing solutions toVietnamese government and financial institutions.

SQREEM TECHNOLOGIES PTE. LTD.
(Equity stake: 6.8%)

Capital and business alliance in May 2019.
A Singapore startup—the world’s largest behavioral pattern data aggregator—growing very
fast in fields of digital marketing and data analytics using proprietary AI technology based on
massive data collection.

R3 HoldCo LLC(Equity stake: 1.4%)

Capital and business alliance in June 2018.
U.S. technology startup boasting global-caliber results and brand in blockchain-related
technology for corporate users.

Shanghai CardInfoLink Data Service Co., Ltd.
(CardInfoLink)(Equity stake: 10%)

Capital and business alliance in September 2017.
FinTech company developing presence in China and around the world, with particularstrength in QR code payment settlement services.

PromptNow Co., Ltd.
(Consolidated subsidiary = 60% stake)

Turned into consolidated subsidiary in May 2016.
Leading FinTech company with multiple proprietary mobile services for financial
institutions.

*Net sales for fiscal year ended December 31, 2018, converted at exchange rate prevailing at year-end.
*Equity stakes current as of May 13, 2019.

Technology

I AM Consulting

TinhVanCapital/business allianceTechnology■ Leverage business domain expansion and strategic investments to become top-class IT
group in ASEAN region.

PT Anabatic Technologies Tbk(Equity-method affi liate = 30.5% stake)

June 2018
Formed capital/business alliance

Payment gateway

FinTechTopicsCapital and business alliance with Singapore startup developing AI technology to analyze human behavior patterns
In May 2019, TIS Inc. entered a capital and business alliance with SQREEM Technologies Pte. Ltd., a Singapore startup that has developed theworld’s first platform for analyzing patterns of human behavior. It combines proprietary AI technology with technology for gathering large volumesof data in order to analyze people’s behavior, along with the context and logic behind it. This used to be a hugely complex task that was
impossible to perform relying on humans alone. Using this platform, SQREEM has collected data on 450,000 behavior patterns from three billion
people in 60 countries. This has been tied to 150,000 items of product data to allow analysis of consumers’ personas and preferences, leading torollout of a digital advertising service that dynamically stimulates demand. SQREEM has used this technology for forecasting and analysis in a
number of other fields, including the prediction of election results, expansion of breast cancer treatment, development of corporate strategies,
identification of crime syndicates, detection of financial fraud, and market analyses.
By combining SQREEM’s global, industry-spanning experience and advanced AI technology with TIS’s operational know-how of finance,
manufacturing, and other industries, we aim to become a leading provider of data analysis services using IT in a variety of fields in Japan and
ASEAN to help clients gain better insights into customers, detect fraud, analyze markets, and so on.

Steadily leverage business domain expansion and strategic investments to build top-class IT corporate association in ASEAN region.
Going forward, continue to promote global business expansion through integration of alliance-reinforced customer base andleading-edge technologies.
29

30

Growth Strategy/Business Strategyof the GroupThe Group’s global expansion has rested on three pillars: the provision of local support for existing clients when they establish operations in other countries, the cultivation of local markets leveraging expertise developed in Japan, and the application in Japan of cuttingedge technologies derived from abroad to give us new edges in business. We first began developing a presence in ASEAN by establishing local subsidiaries, first in China and then in Thailand, Singapore, and Vietnam. More recently, however, we have accelerated our
expansion geographically by forming alliances with leading firms in the region. We have so far entered capital and business allianceswith such firms in Thailand, Indonesia, and Vietnam as we steadily build mutual understanding and ties to expand our coverage.
We see the acquisition of cutting-edge technologies and expansion in the global marketplace as key milestones, and we are
actively pursuing capital and business alliances with leading fi rms that possess these technologies. We are also making use ofcooperative schemes that integrate our strengths with those of our partners—their local customer bases and their cutting-edge
technologies—to accelerate our business expansion.
Moving forward, we will continue to make maximum use of alliances on both the channel and technology fronts, while developing operations that integrate our respective strengths and enhancing our network strengths across ASEAN, so as to build one of theregion’s leading IT consortiums.

Channel■ Expanding business by fusing client bases with cutting-edge technologies

New Technologies and R&D

Innovations that will generate future corporate value
The TIS INTEC Group is engaged in the information services industry, where market needs are changing as information
technology evolves. Responding swiftly to such market needs is key to maintaining and improving our competitiveness.
Our Group Vision 2026, “Create Exciting Future,” calls for us to utilize advanced technologies and know-how to realize
business innovation and market creation. To this end, we are working to generate innovation across the Group.
From a technological perspective, we put together our Technology Portfolio, which summarizes important technologies
on a two-dimensional axis. We then divided the Technology Portfolio into three areas to select core technologies andproceed with research and development.

Technology Portfolio
Well defined / short-term

Process
innovation

1

1

2

Technologies that contribute to new
business creation and existing business
reinforcement

3

Technologies that drive medium- andlong-term innovation

Technologies that enhance our productdevelopment competitivenessInitiative 1

Initiative 2
Robotics(roboticbase-core)

Natural language processing(doccano)Nobuyuki Matsui
ExpertStrategic Technology Center
Technology & Innovation SBU
TIS Inc.

Mitsuki Nakayama
Chief
Strategic Technology Center
Technology & Innovation SBU
TIS Inc.

New technological innovations, such as IoT, AI, and robotics, are in
the spotlight as key factors for realizing so-called “Society 5.0,”
which balances economic development and resolution of social
issues in advanced nations like Japan. In this context, we are conducting R&D on open source software (OSS) called RoboticBase™
with the aim of realizing a “service robot platform that connects
multiple service robots with varying functions and collaborates withcorporate and social systems in order to replace or expand humancapabilities.”
We are developing RoboticBase around an OSS IoT platform
called FIWARE, which has a proven track record in Europe. By
opening up the core part of the system and/or the OSS, we are
actively fostering the evolution of OSS ecosystems.
Currently, we are working jointly with the University of Aizu torefine RoboticBase. In the future, we hope to use the technology toresolve social challenges, such as last mile automation.

doccano is open source software for creating training data that isessential for machine learning. We started creating this software in
the course of developing automated machine learning technology.
With advances in automation technologies, we will ultimately live in aworld where good results can be obtained simply by providing data.
In such a world, efficient creation of data necessary for learning isparamount. Numerous companies and universities are already using
the technology and providing valuable feedback. By also expanding
the community as an open source, we are receiving cooperation fromoutside the Company in our development efforts. It is thought that,sometime in the future, not only professional engineers but also
application engineers and non-engineers will employ machinelearning. With this in mind, we are working to create environments inwhich anybody can undertake annotation efficiently, anywhere andanytime.

Initiative 3

Initiative 4

Growth Strategy/Business Strategyof the Group

Product
innovation

Not well defined / long-term

Below are some initiatives related to “ 3 Technologies that drive medium- and long-term innovation.”

Technologies that contribute to new business creation and existing business reinforcement
We actively use technologies owned by startup companies to increase the speed of commercialization.

2

Technologies that enhance our product development competitivenessWe develop and use on a Groupwide basis various software and processes for improving productivity and quality. These include Nablarch, aplatform for developing mission-critical enterprise systems.
Since the end of 2018, meanwhile, engineers from major Group companies have participated in canal, TIS’s reciprocal technical support
platform.

3

Technologies that drive medium- and long-term innovation
Aiming to resolve future social issues, we promote R&D with a focus on industry-academia-government collaboration. We engage in R&D that
ensures our ongoing competitive advantage in the future, while making PoC and products/services at an early stage, creating markets,
acquiring positions, and correcting core technologies.

The basic policy of open innovation is to accelerate and broaden our R&D outcomes in all areas.
Group Laboratory: Integrating the R&D departments of TIS INTEC Group companies
Using our community workspace WeWork to drive open innovation outside the GroupThe R&D departments of two Group companies, TIS Inc. and INTEC Inc., have combined tofunction as a “Group Laboratory” and established a community workspace called WeWork in
Tokyo (Otemachi, Chiyoda-ku). WeWork, which is manned permanently by employees from the
R&D departments of both companies, has three missions: (1) Strengthen our R&D capabilities,(2) Improve our market presence, and (3) Promote open innovation. While conducting joint
research and development, we aim to strengthen our research and investigation capabilities,
strengthen information dissemination and collaboration, facilitate the transition from research tocommercialization, and establish ecosystems for business creation.

31

WeWork in action (Marunouchi North Exit, Tokyo Station)

Financial AI research

Tatsuo Kitahashi
Advanced Technology Laboratory
INTEC Inc.

As part of our research into financial AI, we are conducting R&D on
using machine learning and deep learning technologies with the aimof building a business in helping companies in the financial andinsurance sectors to enhance their operational efficiency.
Currently, we are working with our business divisions to assess
the reliability of insurance industry vendors and detect fraudulent
payment claims. It is said that around 80% of data analysis PoCs do
not advance beyond the PoC stage. In this context, the Advanced
Technology Laboratory aims to develop practical AI that can be usedin business applications without stopping at PoC. In assessing thereliability of vendors, we received evaluations of PoC results from
customers and applied the results to their businesses.
To ensure that AI is applied in a practical manner, we are promoting a self-service analysis tool called Dataiku, and we are also
fostering AI-capable human resources through data analysis experience workshops using Dataiku. In these ways, we are raising our
AI-based technological expertise throughout the Company.

Business digitalization
research
Etsuko Ichida
Manager
Advanced Technology Laboratory
INTEC Inc.

Recent years have seen an increasing need for digitalization ofbusiness, and the trend is expected to continue in the future. In our
research into business digitalization, we are utilizing robotic process
automation (RPA), AI, and other advanced technologies to digitalize
business processes. Our aim is to improve value by enhancing theefficiency and quality of customers’ business operations. In one
current initiative, designed to digitalize large volumes of paper-based
processes, we are conducting R&D on original object recognition AI
technologies while also deploying existing technologies, such as RPA
and optical character recognition (OCR). Object recognition AI
technology is based on image recognition and machine learningtechnologies we have cultivated so far, and is used to extract specificinformation from forms. This allows data from complex and irregular
documents to be read.
So far, we have performed verification tests with multiple customers, including government agencies and apparel companies. We are
now conducting verification evaluations with a view to full-scalerollout. While monitoring potential customer needs, we will continue
taking data utilization into account as we promote services related tobusiness digitalization. Our aim is to help resolve social issues,
including shortage of human resources.

32

3

Deploying open innovation to expedite innovation

FintanIn 2018, TIS opened a service site called Fintan, which represents a
culmination of the Company’s SI and service development knowhow amassed to date. By promoting open innovation in this way, we
enable people to access the tools, processes, and know-how theyrequire from any location. All of the tools and processes used by the
TIS INTEC Group are available via Fintan site, and anyone can use
them for free.
(https://fintan.jp/) (Japanese only)

Advances in digital technologies are causing major social changes of paradigm-shift proportions, requiring swifter andmore flexible responses from businesses. In addition, startup companies possessing unique and superior technologies are
creating new business models that address social issues. This reflects vibrant “open innovation” initiatives based oncollaboration between different industries and joint efforts between industry, academia, and government. The TIS INTECGroup is taking various measures through open innovation with the aim of creating new businesses.

Deploying various mechanisms, we are collaborating in multiple fields to promote new businesscreation for businesses in initial stages (0 → 1) to growing startup companies.

*Fintan is a legendary figure in Celtic mythology who gains knowledge of all humanity.
The name has been used for this site to convey the idea of access to all sorts of systemdevelopment knowledge.

4

1

From conventional acceleration
programs to studio models

Offline communication space⇒ bit&innovation⇒ U-Studio

U-Studio is an open innovation platform for efficiently solidifying business ideas. It provides a mechanism for business co-creation with entities
at the seed stage (startup preparation) and/or idea stage (pre-seed), as well as startups already in operation and business enterprises.
Participants in U-Studio from TIS include business producers (who formulate business strategies and build and verify hypotheses), UI/UX
designers (who design prototypes from user perspectives), and full stack developers (engineers able to handle wide range of softwaredevelopment). Together, they have put together various projects, from brushing up ideas to building and verifying problem hypotheses,
developing minimum viable products (MVPs), and field-testing.
(https://incubation.tokyo/u-studio/) (Japanese only)

Provision of developmentknow-how⇒ Fintan

Swift investment in startup⇒ CVC/AI-CVC

3
1

2

bit&innovation
bit & innovation is a communication space that brings together the resources of startup companies, business enterprises, and TIS INTEC Group
companies to create new businesses through open innovation. Its aim is to promote seamless collaboration between companies.
(http://bit-innovation.tis.co.jp/) (Japanese only)

Location: Nishi-Shinjuku
Members: Approx. 300 companies (approx. 900 people)(As of July 2019)* Total of startup companies and business enterprises
Applications●Co-working●Meeting●Acceleration program base
●Hosting events, such as pitch sessions and ideathons

Investment in “Sozo Ventures II-S” (U.S. venture fund)— Stepping up new business creation with focus on Silicon Valley startups —2

CVC/AI-CVC
We are operating a corporate venture capital (CVC) entitythat plans to invest ¥2 billion by March 2021. The targets ofthese investments are rapidly growing venture companies(between seed round and middle stage). The CVC Investment
Committee makes investment decisions, from discovery to
final settlement, in as little as one month.

33

CVC investment
performance:

19 cases(cumulative; since April 2016)

AI-CVC investment
performance:

9 cases(cumulative; since April 2018)(As of July 2019)

Overseas, Silicon Valley-based TIS R&D Center, established in 1996, has greatly
shifted its emphasis to business creation, and accordingly changed its name to
TIS Ventures. Meanwhile, we have invested in the SOZOVentures fund as alimited partnership (LP) to promote collaboration with local startups. Through thisLP-based investment, we aim to accelerate initial business development of promising U.S. startups, research business seeds through trialing and prototyping in
the United States, and promoting joint business development with customers.

34

Growth Strategy/Business Strategyof the Group4

U-StudioQuality Control

Aiming to be a “trusted top brand that epitomizes quality”
The TIS INTEC Group strongly recognizes the role that information systems play as social infrastructure. For this reason,
we work continuously to improve our quality, productivity, and technical capabilities.
By always providing high-value-added services while responding flexibly to diversifying business formats, solutions,development techniques, and technologies, we aim to entrench TIS INTEC as a “trusted top brand that epitomizes
quality” and realize the mission set forth in our management philosophy.

■ TIS Quality Policy (from TIS “Quality Control Rules”)● Strive to improve stakeholder satisfaction, provide original and attractive services, and create■ Activities aimed at improving standards of entire GroupThe TIS System Development & Quality Management Innovation SBU and the Technology & Innovation SBU are spearheading the following
activities aimed at improving the quality, productivity, and technical capabilities of the entire Group and harness Group synergies.

Group Quality Executive MeetingGroup TechnicalReinforcement Committee

Undertakes the following activities to improve Group quality and productivity:● Establish PDCA cycle for setting and achieving KPI targets and monitor status ofinitiatives● Promote sharing and lateral development of issues, countermeasures, andknow-how of each company

Promotes sharing and effective use of eachcompany’s activities in order to strengthen theGroup’s development competitivenessabundant value.

● Provide optimal services to earn the trust of customers.

● Provide high-quality services through continuous business transformation with technology as

quality, productivity, technical capabilities, and competitiveness.

■ Trinity: Original quality management system based on ISO9001
We strive to provide customers with optimal services based on our policies of “emphasizing proficiency through on-site standardization and its repeated use” and “promoting improvement by minimizing essential implementation items and making use of
onsite ingenuity.” At development sites, we add ingenuity to suit each business model
while applying project management and engineering processes, techniques, and tools.
We are expanding the scope of coverage to include not only scratch development
but also a wide variety of business formats.
* Trinity means the “three elements of quality, productivity, technological capabilities” and also incorporates
the notion of “customers, TIS, and partners” working together to improve those elements.
* For more details:
http://www.tis.com/group/csr/report/social/quality/

Group screening● Proposal review● Review at start● Process inspection● Project review
Sharing and lateral
deployment of projectrisk management
measures● Project management
training

Project execution

Planning/
proposal

Plan

Design~development/
testing~transition

Enhancement(maintenance/
operation)

Termination

Offshorepromotion

Know-how and tool
sharing● Enhancement framework● Diagnoses, etc.

Sharing and lateraldevelopment ofoffshore promotion
measuresUtilize Fintan* and activate feedback*System development know-how/tool aggregation site

Enhancement
Activity presentation
Service manager
Training

Shared use ofoffshore BP

Introduce architect reviews to eliminate
technical risksThanks to our transition into a business holding company structure, we have accelerated production innovation measures and strengthened
systems to guarantee effectiveness. Accordingly, unprofitable projects are on the decline. We will continue focusing on efforts to further curb
unprofitable projects as an important management priority.
● July 2016

Transitioned to business holding company structure

5.72● October 2016
Established Group Production Innovation Committee● October 2018
Introduced Group screening

0.82

3.87

Companywide/organizational process reviews

Project risk
management

Proposal
review

Project start
review

Process review(each process start/end)

Project review(final report)

2.7%

Education

Standard
contract
quotation guide

Project management standard
Development process standard (Mode1/Mode2)

Enhancement
framework

Planning/
Proposal

Quality control, project management, engineering

Service manager

Human skills, management skills, expertise35

1.85
Fiscal 2016
First half losses

2.17

1.87

3.65
2.1%

Standardized
knowledge

Revitalize canal**Technical support/Q&A service site

Events, such as
offshore colleges

4.47

Project monitoring (QCDR status) + Project health check (every 3 months)

Strengthen
technical capabilities■ Trends in unprofitable projects(Billions of yen)

Process

Enhancement
innovation

Growth Strategy/Business Strategyof the Groupthe core.

● Use standard repetition and ingenuity to promote improvement activities aimed at enhancing

Deficit
eradication

Fiscal 2017
Second half losses

1.09

About 1.80

1.48
0.9%

0.9%

0.78

0.69

Fiscal 2018

Fiscal 2019

0.8%

Fiscal 2021 target
Development loss rate

0.5%

(Equivalent to¥1 billion) or lessFiscal 2020

Development loss rate

36

Executive Roundtable Discussion
Yasushi Okamoto,Director, Senior Managing Executive Officer
and Sector Director responsible forService Strategy Sector at TIS, Inc.

should be to tackle social issues through core business activities. In recent years, amid a string of corporate scandals, thedefinition of a good company has changed, I think, from society’s perspective. OUR PHILOSOPHY was formulated to underpin development into a good company in the truest sense—
virtuous and compassionate. To realize the image we see forourselves, we must instill OUR PHILOSOPHY in the minds of
employees so that it becomes second nature to them. We will
try to use words and ideas that appear in OUR PHILOSOPHY in
business plans to maintain consistency and promote understanding.

Solving social issues through business activities,
creating possibilities in digital technology
Josaku Yanai,
Director, Senior Managing Executive Officer
and Sector Director responsible forIndustry Strategy Sector at TIS, Inc.

Takayuki Kitaoka,
President and Representative Director
at INTEC Inc.

We will lead the way in solutions to social issue throughour business activities to achieve the objective of OUR
PHILOSOPHY.
How will the Group’s basic philosophy—OUR PHILOSOPHY—guide the TIS INTEC Group in
helping to solve social issues through its business activities? The three executives
involved in pilot discussions for OUR PHILOSOPHY talk about current initiatives and futurebusiness possibilities.

What is the connection between OUR PHILOSOPHY andbusiness activities?
Okamoto: The objective—our mission—under OUR
PHILOSOPHY is to fill the future—still essentially a blank canvas—with vibrant colors as a mover using digital technology. I
believe that a society in which people are happy is a society inwhich people have a range of choices. The future is a blankcanvas, and we will help paint a bright, colorful future
through our core IT services to give people all sorts of choices.
This is the TIS INTEC Group’s social mission. The ideal image
we want our businesses to present to the market is expressed
in OUR PHILOSOPHY.

37

Our own views of what we should be are key to accomplishing our mission. OUR PHILOSOPHY highlights the idea ofcommitting to a style—one inspired by such qualities as honesty, openness and a pioneering spirit—that infuses Groupmanagement decision-making and all corporate activities.
With an honest and sincere attitude, we will take an open
approach to collaboration with external parties and be quick
to address global social issues. The importance and significance of this perspective will be conveyed to employees andpermeate business activities.
Yanai: Over repeated debate during pilot discussions, a common understanding emerged that the Group’s duty to society

Okamoto: Consider the transition to a cashless society. This isa development where the TIS INTEC Group will be intricately
involved, thanks to strengths in the payment settlementrelated business. “Society 5.0,” dubbed by the Japanese government, will be a new society characterized by the use ofdigital technology to address social issues. The cashless trendof the new society will not only provide payment conveniencebut also curb the massive costs associated with cash management and control crime, including fraud and robbery, and thisshould give society a greater sense of safety and peace ofmind. A business that will support the cashless society is TIS’PAYCIERGE, a digital payment settlement platform.
PAYCIERGE will support the shift to a cashless society in three
ways: 1) as a gateway connecting stores, both physical andonline, as access points to end users—the front line—withpayment settlement sites, such as those operated by credit
card companies and banks; 2) as the back office, handling settlement and customer management for all pre-payment,
immediate payment and deferred payment transactions,
including those using credit cards, debit cards and prepaid
cards to pay for purchases; and 3) for smartphone apps andmanagement of affiliated merchants.
Yanai: One approach for realizing a sustainable society is theapplication of digital technology in the energy sector. Amongthe Group’s principal clients are electric power and gas companies. Japan is right in the middle of deregulation of theelectric power and gas sectors through energy system reform,
and the Ministry of Economy, Trade and Industry has hammered out “Utility 3.0,” a concept for promoting decentralization of operations, including power distribution and retail
operations, fuel procurement, and power transmission. Utility
3.0 sets out how the energy industry should be structured by
2050. Against a backdrop of fewer children and more seniors

Okamoto: High expectations exist for the part that AI androbotics will play in offsetting the negative consequences offewer children and more seniors in society. The use of robots
goes beyond work that humans would do; robots can improve
the quality of the work done. Within the TIS INTEC Group, weare involved in a service robot integration project to realize anenvironment that facilitates partial substitution or allocation of
the work typically done by humans, such as security, guidance, conveyance and cleaning, to robots. Access has started
for RoboticBase, a platform that integrates control of multiple
service robots and connects multiple robots to each other aswell as communicating between the robots and environments,
such as sensor environments, and humans. Services related to
RoboticBase have also started.
Kitaoka: In fiscal 2019, INTEC pursued business activities with
an emphasis on two keywords—AI and cloud—and ultimately
contributed to greater operating efficiency through the application of digital technologies. In AI applications, we began aservice that detects anomalies using AI algorithms to boost
yield ratios at manufacturing plants, and we improved the recognition rate of OCR (optical character recognition) using
deep-learning AI. For cloud services, which are linked to data
center operations and offer clients standardized services, we
migrated a customer relationship management structure forregional banks and administrative systems and tax payment
systems for local government offices in Toyama Prefecture to
the cloud. This led to greater efficiency in operations, lower
costs and a sharper competitive edge for the banks. Migrationof local government office systems to the cloud is something
we plan to promote to local governments throughout Japan.
Meanwhile, greater diversity in society is needed to deal
with issues that parallel the low birthrate and graying of society and, subsequently, a shrinking labor force. Certain aspectsof changing diversity are common to all issues and the necessary diversity-driven solutions. I believe digital technologies—
or more specifically, applications of digital technologies—aremeant to expand opportunities for people to thrive, unrestricted by such factors as gender, age or ability. From the perspective of wider diversity within the Group, it is important toencourage women to be more active on the management sideof operations.

38

Growth Strategy/Business Strategyof the Group

Kitaoka: A major theme for us at INTEC is how best to put
OUR PHILOSOPHY into practice. OUR PHILOSOPHY prompted
us to refine our corporate vision, as stated in the company’s
medium-term management plan, compared with the corporate vision of our early days in business. We also emphasize
our mission to play a role in a productive digital society, again,reflecting the objectives of OUR PHILOSOPHY. So, essentially,
OUR PHILOSOPHY underpins daily business activities at INTEC
under two themes: contributing to society through the use ofleading-edge technologies, and contributing to society
through actual business activities.

in the population, Utility 3.0 will promote labor-saving strategies through digital technologies as society also embraced
decarbonization and will create new energy businesses. The
TIS INTEC Group is responding with efforts geared toward
Utility 3.0 for electric power companies and gas companies
that are keen to participate in future-oriented businesses. For
example, verification tests are underway with local governments on local production and local consumption of energy.
Steps are also being taken to enhance EneLink, a total solution for the energy sector, and work started on the project,which will provide methods to resolve next-generation transportation and energy issues, particularly in report areas.
Also, with a shrinking labor force reflective of the lowbirthrate and graying of society in Japan, efforts to achieve
the government’s growth strategy are highly dependent uponreforms to productivity per person through the use of digitaltechnologies. Given the indispensable nature of such reforms,
the role of system integrators, including—collectively—the TIS
INTEC Group, will become all the more important.

Okamoto: And then there’s healthcare technology, where theuse of digital technology will help to keep people healthy,transform medical treatment and reduce the burden on thesocial insurance system. The Group is working on a healthinformation platform that will use AI to analyze health information collected by medical institutions and health information obtained via smartphone or other devices to prevent sickness. Platform-based applications, including services to support better food habits, are gradually being released.
Collaboration across industry, government and academiclines, including participation in state-of-the-art national projects and verification tests with universities, will be welcome
opportunities that lead to new value creation and solutions tosocial issues. We are keen to maintain this vigorous approach.

Yanai: In Japan, the Ministry of Economy, Trade and Industry
put forward a concept—the 2025 Digital Cliff— as a social
issue that requires the involvement of system integrators to
overcome. The TIS INTEC Group portfolio of services was
expanded in 2018 with such services as Xenlon~Shinryu
Migration Service, and a service was launched to efficiently
revamp systems created with COBOL and other old programming languages.
Kitaoka: NTT Corporation will complete access to services
based on ISDN—that is, the communication standards for digital telephone connection and transmission of voice and dataover a digital line—using phone lines in 2024 and, like otherapproaches to deal with the 2025 Digital Cliff, this will have a
big impact on society. As for us—the TIS INTEC Group as awhole—we have already been providing EDI (Electronic Data
Interchange) services using ISDN digital lines to meet theneeds of small and mid-sized businesses all over Japan, so thefoundation is in place to support migration to equipment and39

Strength of TIS INTEC Group—leading socialtransformation

Okamoto: We have provided services to leading companies
for many years, and I believe our market appeal lies in an attitude—earnestly embracing progressive approaches with ourclients in mind—that clients appreciate. A fine example of thisis subscription services, which have not be offered by system
integrators before. Currently, TIS is guiding the Group throughstructural transformation from a business perspective. Servicestyle business, which anticipates market needs and provides
standardized services cutting across industries, can be thepolar opposite of a business model, which builds conventionalcustomized services. In addition, we must change the corporate atmosphere to evoke a greater sense of speed.

It clearly and broadly delineates the thinking and ideals that TIS INTEC Group highly values in its group’s
management, corporate activities, and constituent members.
TIS INTEC Group’s entire business revolves around OUR PHILOSOPHY.
We would like to provide you with an introduction to OUR PHILOSOPHY.

Yanai: Our biggest assets are the results we have achieved
and the trust we have built since our establishment, which
underpin our ability to support the needs of companies acrossall industries and sectors. We have learned in providing services to top-of-industry clients, and this gives us that little bit
more than other companies in terms of business knowledge
across diverse sectors. For this very reason, I believe theGroup’s biggest strength during a time when clients arechanging up their business models is the ability to envision theperfect solutions to management concerns and deliver consulting expertise matched to specific client needs.
Kitaoka: I think it’s our ability to provide total solutions, fromconsulting through to system development and operation.
With a proven track record and know-how in the very field of
information processing, notably, payment settlement-related
services and EDI services boasting industry’s largest share, wehave the high-level expertise to deliver service-style businesses
as well. This includes building and operating upfront investment-style platforms.
Okamoto: To be the kind of mover described in our mission
requires more than just a progressive attitude. We must also
display corporate personality. We will utilize OUR PHILOSOPHY
to promote a shared awareness among each and every
employee under the Group umbrella that contributing tosociety is the Group’s ultimate goal in all corporate activities,
including future business development and human resources
training and hiring. This shared awareness is extremely important, especially at this point in time when the shape of tomorrow’s society is undergoing such a huge transformation. If,
based on OUR PHILOSOPHY, all employees perform theirduties with the full understanding that we will properly contribute to society through our business activities, then thiswidespread perspective will become a great strength. This will
result in growth for the Group and also lead to enhanced corporate value. As members of the pilot discussion group on
OUR PHILOSOPHY, we know that we have a vital role to perform in driving home the ideas and spirit of OUR PHILOSOPHY
that emerged as we worked through the concept creation
process. Each and every employee must take OUR
PHILOSOPHY to heart. I feel strongly that we are the ones
who must lead the way.

MissionGrowth Strategy/Business Strategyof the Group

Kitaoka: Toyama—the city of the same-named prefecture
where INTEC was born and raised, in a corporate sense, andwhere its headquarters remain today—was selected as an
SDGs future city. We are working with the city on various verification tests to realize objectives under the compact city concept, such as upgrades to various public transportation networks.
Looking at all of Japan from a regional perspective,
depopulation in regional areas is becoming an increasingly
serious problem. In many regional cities, shrinking populations
have made it difficult to run hospitals, and the closure of hospitals has created a problematic shortage of facilities. Existing
approaches will assume greater importance as well, parallelingthe spread of healthcare technology and other progressive
approaches. The emphasis will be on utilizing digital technology to enhance the efficiency of hospital management by
reducing costs through more efficient hospital systems andthe allocation of surplus funds toward the purchase of medical equipment and to cover the cost of doctors and otherstaff. In addition, a negative cycle is often perpetuated indepopulated areas, where a lack of job opportunities foryoung people prompts them to leave en masse in search ofwork and this causes communities to lose even more of theircitizens. As a company, we know we must maintain soundmanagement and provide employment and also help to curb
the exodus of citizens and contribute to regional tax coffers.
In addition, we must fulfill a vital social role in promoting
regional activity.

applications using the Internet.

OUR PHILOSOPHY (TIS INTEC Group Philosophy)
OUR PHILOSOPHY represents the values of TIS INTEC Group (January 2019).

To brightly color the future as a mover

The Mission is TIS INTEC Group’s social role as well as raison d’etre. The word “mover” refers to the people who create objects, issues and systems
that move our world to a new one. And, in this case, it refers to TIS INTEC Group and its constituent members.
As a mover that utilizes digital technology, TIS INTEC Group would like to be an entity that vividly colors the blank canvas of the future by providing novel potential and options that appeal to society.

Style“Honest” as a style

The basis upon which a corporation may conduct itself is, beyond anything else, the concept of being “Honest” in other words, honesty and sincerity. This is because being honest is essential for trust and the basic premise in value exchange with stakeholders.
Besides being honest, TIS INTEC Group also places great importance on styles such as “Open” and “Pioneering.” This is what we believe and aim
to consistently manifest in everything from our top management’s decisions to all our corporate activities.

PolicyBe there for people

TIS INTEC Group’s most important management policy is “Be there for people,” because a corporation is basically a gathering of people, and the stakeholders that encompass the corporation are people, too. Business management that forgets people will never lead to quality corporate activities.
In addition, TIS INTEC Group’s other primary management policies include “Go beyond society,” with TIS INTEC Group as a good member of society,going beyond social norms and the expectations of society, and “Move toward the goal,” aiming toward purposeful business management.

Membership

A good member of society

Membership is a guideline for the activities conducted by TIS INTEC Group constituent members.
It is comprised of “As a good member of society,” “As a member who expresses her/his intentions and opinions,” and “As a member that strives for
progress.”
The first, “As a good member of society,” refers to the company wanting its members to strive to be good members of society beyond their existence
as constituent members of TIS INTEC Group.
The other two guidelines want TIS INTEC Group members to express their existence humanly and demonstrate their unique characteristics and capabilities to their fullest extent.

What is a corporation?

A social system that aims for happiness

There are various ways to think about the goal of a corporation, and corporate management can change greatly depending on how this is determined.
Based on TIS INTEC Group thinking in which “the corporation is a public instrument,” with stakeholders we define the corporation as “a social system that aims for both happiness that contributes to social expectations and people’s happiness via value exchange.” Accordingly, the idea that the corporation exists for stakeholders and society is the foundation of all TIS INTEC Group’s corporate activities.

What is growth?

Moving towards our mission

Growth is defined as “increased realization of the mission” as well as “increased value-exchangeability” with the stakeholders. The former refers to
how TIS INTEC Group improves its level of mission realization, namely, increasing the significance of TIS INTEC Group’s social existence. The latter
refers to enhancing the quality and quantity of value exchanged between TIS INTEC Group and its stakeholders, in other words, a higher degree ofsatisfaction for both parties. TIS INTEC Group aims at the essential growth of these two.
40