TIS INTEC Group Logo
Underlying Concepts
The logo portrays the TIS INTEC Group as a tightly knit
TIS INTEC Group Logoteam, powered forward by the different sets of expertise
Underlying Concepts
that each member brings to the table. It features our
The logo portrays the TIS INTEC Group as a tightly knit
two main corporate colors: “ocean blue” for theteam, powered forward by the different sets of expertisenew challenges that we are constantly tackling, andthat each member brings to the table. It features our“intelligent gray” for the solid technological foundations
two main corporate colors: “ocean blue” for thethat underpin our business.
new challenges that we are constantly tackling, and“intelligent gray” for the solid technological foundations
Brand Message
that underpin our business.
The brand tagline, “Go Beyond,” embodies our constantquest into the beyond in search of new challenges. It
Brand Message
represents our firm commitment as a group to delivering
The brand tagline, “Go Beyond,” embodies our constantsolutions that are always one step ahead, not only solving
quest into the beyond in search of new challenges. It
clients’ problems but anticipating and meeting their own
represents our firm commitment as a group to delivering
customers’ needs too.
solutions that are always one step ahead, not only solving
clients’ problems but anticipating and meeting their own
customers’ needs too.

TIS Inc.
Sumitomo Fudosan Shinjuku Grand Tower,
17-1, Nishishinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, JapanTIS Inc.

ForfurtherFudosan
information,
contact:
Sumitomo
Shinjuku
Grand Tower,
Corporate Management Dept., Corporate Planning SBU.
17-1, Nishishinjuku 8-chome, Shinjuku-ku, Tokyo, 160-0023, Japan
Tel: +81-3-5337-4569
E-mail:tis_ir@tis.co.jp
Forfurther
information, contact:
http://www.tis.com/
Corporate Management Dept., Corporate Planning SBU.
Tel: +81-3-5337-4569
TIS201909
E-mail: tis_ir@tis.co.jp
http://www.tis.com/

Integrated Report 2019

TIS201909

Year Ended March 31, 2019 (From April 1, 2018, to March 31, 2019)

Securities Code: 3626

About the TIS INTEC GroupTIS INTEC Group Philosophy—OUR PHILOSOPHYThe TIS INTEC Group is a leading provider of IT services in Japan, with some 20,000 employees
groupwide. As a corporate group, we draw on many years of combined insights and experience
as well as high-level technical expertise in helping to solve various issues impacting society.

OUR PHILOSOPHY was announced in January 2019 as basic philosophy for the TIS INTECGroup. It represents a set of values shared throughout the Group and is basis for all corporate
activity.

Consolidated
Net Sales

Consolidated
Operating Income

Number of Employees,
Consolidated(Year ended March 31, 2019)(Year ended March 31, 2019)(As of March 31, 2019)¥420.7¥38.0

19,483

Number ofGroup Companies

Number of
Clients

Aggregate Numberof Solutions(As of March 31, 2019)(Year ended March 31, 2019,
domestic)(Year ended March 31, 2019,
domestic)

108

More than(TIS+consolidated subsidiaries+equity
method affiliates)

About 15,000
companies

Consolidated ROE

Consolidated
Equity ratio

billionbillion(Year ended March 31, 2019)(Year ended March 31, 2019)

11.5%

62.0%

Net Sales by Business Segment

500 cases
Rating（At November 10, 2018）

A /Stable(Long-term/Japan Credit Rating
Agency, Ltd.)CONTENTSNet Sales by Client Sector(Sales to outside customers, excludes intersegment sales)

Others¥4,427 million
Includes a number ofancillary businesses thatprovide leasing and otherinformation systems toclients.
Industrial IT
Business

41.1%

Industrial IT Business¥172,949 million
Utilizes business andoperating know-how specific to non-finance industries to raise value-added
quality of clients’ operations, expand use of IT,
and provide IT-based support for operations.

1

What does the TIS INTEC Group do?
Service IT Business¥104,154 million

Others1.0%Services IT
Business

24.8%

Year ended
March 31, 2019
Total

¥420,769
millionFinancial IT
Business

25.2%

Financial IT Business¥106,103 million
Leverages business andoperating know-how specific to the financial sector to raise value-added
quality of clients’ operations, expand use of IT,
and provide IT-based support for operations.

BPO

7.9%

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

Publicinstitutions

Services

24.6%

4.4%

Credit card

17.5%

Year ended
March 31, 2019
Total

¥420,769
millionBanking

6.3%

Insurance

6.5%

Other
finance

4.6%

Distribution

7.8%

About the TIS INTEC GroupTo Our Stakeholders
TIS INTEC Group History
TIS INTEC Group Value Creation Process
Consolidated Financial / Non-Financial Highlights

Others8.3%

BPO¥33,134 million
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.

What does the TIS INTEC Group do?

ProfileAssembly-based
Processing-based manufacturing
manufacturing
10.9%

9.1%

Platform that Supports Value Creation Process (ESG Section)
1
3
7
9
11

Growth Strategy/Business Strategy of the Group
Outline of Medium-Term Management Plan
Working toward Medium-Term Management Plan Targets
Message from the Executive Vice President
Business Strategies and Performances by Segment
Strategies for Payment Settlement Business
Global Business Strategy
New Technologies and R&D
Quality Control
Executive Roundtable Discussion

13
15
19
23
27
29
31
35
37

Platform that Supports Value Creation Process
Basic Direction on Group CSR
Sustainability
Human Resources Strategy
Group Human Resources Roundtable Discussion
Communication with Shareholders
Contributing to Global Environment
Messages from Our External Directors
Corporate GovernanceBusiness Risks

41
42
43
45
47
51
52
53
54
67

Corporate Data
Consolidated Financial Summary
69
Board of Directors, Audit & Supervisory Board Members and Executive Officers 73
Corporate Profile
75

Editorial Policy
From 2016, we have opted for an integrated report that provides key financial as well as non-financial content to enable all stakeholders, particularly shareholders and investors, to better
understand the measures that we have taken to achieve sustainable improvement in the corporate value of the TIS INTEC Group. Please check our website, as well, for information, as many of
the topics we cover in the report are updated on the website, as appropriate.
http://www.tis.com/
Scope of reporting: TIS (parent) and TIS INTEC Group
Issued: September 2019
Disclaimer: Forward-looking statements, such as performance forecasts, described in this report are based on information available to management regarding the TIS INTEC Group—that is,
TIS and the subsidiaries under its umbrella—as of the production date and certain assumptions deemed reasonable at this time. No intent of promise is implied by the Company to achieve suchforward-looking statements. Indeed, various factors may cause future results to be substantially different from the assumptions presented in these materials.
The names of the products and services described in this report are trademarks or else registered trademarks of the respective company.

2

To Our Stakeholders

What does the TIS INTEC Group do?

Guided by OUR PHILOSOPHY, we will promotesustainable growth through unified groupmanagement.
Toru Kuwano, TIS Chairman and President, provides details on OUR
PHILOSOPHY—the recently announced basic philosophy for the TIS INTECGroup—and progress on Medium-Term Management Plan (2018-2020).

Q1. Please summarize OUR PHILOSOPHY.
Our objective is to fill the future—still essentially a blank canvas—with vibrant colors as a mover using
digital technology.
We recently announced OUR PHILOSOPHY, a basic philosophy for the TIS INTEC Group that represents a senseof values shared throughout the Group. OUR PHILOSOPHY broadly clarifies Group management, corporate
activities and vital concepts and ideals for members of the Group, including directors and employees. A company exists, essentially, for the diverse range of stakeholders connected to it and, by extension, all of society.
Given this underlying perspective, we made it the mission of the TIS INTEC Group to fill the future—still essentially a blank canvas—with vibrant colors as a mover using digital technology. The meaning of “mover” implies
our movement as a corporate group as well as driving the movement of society through our activities.
The spread of digital technology has transformed every aspect of society and is sure to continue to spur
more changes. Positives are widely expected, but negatives are still a concern, particularly technological singularity—that is, a hypothetical point in time when artificial intelligence evolves beyond human intelligence andcauses a major shift in the mode of human life. The future is a blank canvas, and we believe it is necessary to
make it bright. With this in mind, a vivid pallet of color is required—that is, innovative possibilities and a rangeof choices that appeal to society. OUR PHILOSOPHY embraces this perspective as well as being a declaration of
our mission, our duty as a corporate citizen to support the use of digital technology, establish a presence thatbrings about the realization of a brilliantly colored society through our own corporate activities, and contributeto society as a mover capable of creating a future in which people are happy. It is our raison d’etre.

Q2. Please describe the process involved in formulating OUR PHILOSOPHY.
OUR PHILOSOPHY is the equivalent of a corporate constitution for the TIS INTEC Group.

Toru Kuwano,
Chairman and President

3

The TIS INTEC Group was established, albeit under a different name, back in April 2008 through management
integration and became today’s TIS INTEC Group in July 2016 through realignment of companies under theGroup umbrella. The shift from a pure holding company structure to that of an operating holding company
was a major turning point in our corporate history. Maybe for this reason, it was also the perfect opportunity
to redefine our corporate philosophy and highlight the qualities that we seek to demonstrate as a corporategroup while also addressing changes in the social landscape that had occurred over the years since our 2008
establishment.
The announcement of OUR PHILOSOPHY came after we unveiled Group Vision 2026 in May 2017 andMedium-Term Management Plan (2018-2020) in April 2018 because it was to be the axis around which theentire Group turned, and we needed time to carefully craft the content. Nevertheless, we had an idea of what
OUR PHILOSOPHY should be, and the thinking behind this philosophy actually infuses Group Vision 2026 andMedium-Term Management Plan (2018-2020).
Group Vision 2026 describes the place we want the TIS INTEC Group to be in business markets 10 years
from now. Toward this end, we invited participation from principal Group companies, specifically, division managers and deputy managers in their 30s and 40s who would likely play key roles in the TIS INTEC Group 10
years into the future. Through repeated dialogue opportunities, we formed the image we want the Group topresent by 2026—that is, a Group able to create an exciting future by utilizing advanced technologies andknow-how to realize business innovation and market creation—and also clarified our intention to secure a
position on the global stage and defined specific strategic domains. We will travel through three three-year
management plans to reach the final destination that is Group Vision 2026. Each medium-term management
plan will be a detailed map, with specific milestones, for each stage along the way.

4

Q3. What is the connection between society’s demands on companies and OUR PHILOSOPHY?
The concepts under OUR PHILOSOPHY are style, policy and membership, creating a foundation that will
underpin achievement of our mission.
TIS—and by extension, the TIS INTEC Group—signed on to the U.N. Global Compact in July 2018 and has been
involved in initiatives aimed at developing a sustainable society. Also, Medium-Term Management Plan (2018-2020)highlights the slogan “Transformation to 2020—Achieving structural transformation as a corporate family and taking
the lead in finding solutions to social issues”. OUR PHILOSOPHY brings together several universal principles and,linked to our medium-term management targets, it will be integral to a structure that enables us to implement theactivities that society requires companies to perform.
OUR PHILOSOPHY is built on three concepts—style, policy and membership—that support efforts to achieve our
mission. Each concept is defined, respectively, as a code of conduct befitting a good corporate citizen, a people- oriented management policy, and a sense of honesty that provides the basis for the Group’s corporate activities.
Amid heightened calls from society that companies improve their compliance and governance practices, we
acknowledge, as a good corporate citizen, the importance of going beyond social norms and the expectations of society. At the same time, we must cultivate an open and free corporate culture and atmosphere that enables all employees to express their own opinions. Right now, we are working through a structural transformation. And for us to fulfill
our role as a mover—to anticipate social issues and build a new business model—it is vitally important that we promote a flexible approach to communication inside and outside our corporate walls. We must be proactive. The codeof conduct for the TIS INTEC Group is based on this perspective and embodies the three concepts of style, policy andmembership noted above.
Information meetings on OUR PHILOSOPHY were held for employees, and then seminar programs were graduallyrolled out according to job position, such as director, division manager, regular employee and new employee.
Although we are diligently implementing awareness-building opportunities, it will take time for OUR PHILOSOPHY topermeate the consciousness of everyone—some 20,000 people—under the Group umbrella. But we are blessed witha phenomenal corporate culture, and just like a beautiful flower, OUR PHILOSOPHY will bloom and grow in this environment through consistent efforts to promote the underlying beliefs.

Q4. What is the status of Medium-Term Management Plan (2018-2020)?

What does the TIS INTEC Group do?

OUR PHILOSOPHY is essentially a corporate constitution premised on Group Vision 2026 and medium-term management plans. It represents a perspective—a way of thinking—that forms the foundation of all corporate activity.
Striving to generate sales and income is a given for any profit-seeking company. However, real corporate growth is notdetermined by numbers alone. Success, from the OUR PHILOSOPHY perspective, will be measured by how well we fulfill our ultimate mission—social contribution through business activities—and how much we improve value for stakeholders. We will encourage each and every employee to recognize the underlying significance of groupwide corporate
activities as this understanding will underpin achievement of quantitative targets.

On the performance front, results are better than expected, and business restructuring is leading to steady
improvement on a qualitative basis as well.
Fiscal 2019 was the first year of Medium-Term Management Plan (2018-2020), and it brought higher sales andincome than initially predicted. In addition, strategic domains—the four business segments that will play a key role inour future success—contributed 42% on a net sales basis, surpassing expectations. I feel that this is a reflection ofsolid steps toward structural transformation but also sets the medium-term management plan off to a great start. The
three years of the current medium-term management plan form the first step in building a platform for achievingGroup Vision 2026. But a launchpad for the next step, that is, the next medium-term management plan, must be put
in place as well, and this requires efforts to accelerate structural transformation of the Group. Balancing short-term
improvement in business results with medium- to long-term progress on structural transformation is by no means aneasy task since certain aspects cancel each other out. But we will diligently strive to achieve sustainable growth.
To promote structural transformation, TIS will attempt something during the current medium-term management
plan that the Company has never tried before—split its operations into account-style business, which emphasizes
Strategic Partnership Business, and service-style business, which focuses on IT Offering Services to create industry platform solutions under a prior investment style approach. Both sides of operations will interact to meet the needs ofeach client company while enabling TIS to capitalize on opportunities across a diverse business spectrum. This is
another aspect of structural transformation. Going forward, we will introduce measures extensively throughout theGroup to keep the structural transformation process moving ahead.

Q5. In what direction will structural transformation take the TIS INTEC Group?
To galvanize the Group’s strengths, we will promote measures that emphasize cohesive power and diversity.
People are, without a doubt, the most valuable management resource any company can have. For the TIS INTECGroup, it is therefore vital, above all else, that frontline employees—those who are closely involved in the process ofstructural transformation—acquire a new outlook for success. For example, service-style business presents many
opportunities to work with startups and other companies with potential in the area of open innovation. I think we candeliver good results by taking a more proactive approach in deploying human resources with the right capabilities,
regardless of age or level of experience, to build alliances using a more flexible organizational template. Toward thisend, we will continue to vigorously invest in human resources, including training and performance evaluations
matched to the new business model.
On a groupwide basis, we will concurrently strive to increase cohesive power and emphasize diversity while moving through structural transformation. As the operating holding company, TIS is the de facto leader and will promote
unified group management in line with OUR PHILOSOPHY. But in practice, there is no one-size-fits-all method to bringout the best in each Group company. For example, it is okay for personnel systems to differ, matched to whateverbusiness model is used at each company. If the system adheres to underlying Group policy, specific details can be left
to the discretion of management at each company.
However, we are also looking to enhance management practices on a groupwide basis and improve efficiency byleveraging access to shared head office systems through the “G20” project to elevate head office functions. This process is inviting active dialogue within the Group. Recognizing the similarities and differences—that is, diversity—in ourbusiness activities is an indispensable component of unified group management. I expect this process to lead to new
developments, such as the separation or concentration of future business activities and the creation of common platforms, that will strengthen the Group’s overall capabilities.

Q6. Is there anything of particular importance you’d like to say to stakeholders?
We will expand the possibilities of digital technology and help to solve social issues from a global perspective.
Digital technology is indispensable in today’s world. Its reach extends to so many facets of society now and is key indelivering solutions to all sorts of global issues, from disasters to sickness and poverty. Considering how reliant theworld is on digital technology, the role that the TIS INTEC Group must fulfill is growing in size and so is the potentialthat we can achieve with the right responses. This situation is sure to continue. For example, I firmly believe that ourstrengths in the payment settlement business will meet the huge demand generated by a cashless society—a new payment culture increasingly embraced at home and abroad. Additionally, we are involved in various initiatives, including
Utility 3.0 for a carbon-free society, next-generation transport services such as MaaS (Mobility as a Service), and application of digital technology in areas such as SDGs Future Cities (cities in Japan selected by the national government asmodels of urban planning with state-of-the-art environmental sustainability, strong disaster resilience and superb livability). Everyone under the TIS INTEC Group umbrella, from management to employees, is fully aware that realizing abright future requires a heavy commitment and recognizes the social responsibility we must fulfill. As a team, we will
strive to enhance corporate value by helping to solve social issues through our business activities and by contributing
to the realization of a sustainable society. The support of our stakeholders is and always will be integral to success.

5

6

TIS INTEC Group History
The TIS INTEC Group has, in one form or another, provided industry-leading services since
the dawn of the domestic information services industry.

through the management integration of
TIS Inc. and INTEC Holdings, Ltd., to ensure
growth through shared use of both companies’
management resources.

1971

ITHD Group is reorganized. INTEC Holdings is merged
into INTEC, and nine TIS subsidiaries are put under the
direct control of ITHD.

Period ofestablishment

ITHD debuted a single logo for all
Group companies and adopted a
new brand message, “Go Beyond”.

April 2011

December 2009

ITHD orchestrated a threecompany merger involving TIS,SORUN and UFIT Co., Ltd., with
TIS as the surviving company.

SORUN Corporation joined the
ITHD Group.

Toyo Information Systems,
Co., Ltd. (now, TIS) established.

May 2015

June 2014

2008–2009

New independent, leading company on

Toyama Computer Center, Inc. the IT services scene(now, INTEC) established.
IT Holdings Corporation (ITHD) was createdFirst Medium-Term
Management Plan
Group management
emphasizing independenceof each company

Discussions on Groupreorganization began

July 2016

Transition to TIS INTEC Group
ITHD executed an absorption-style merger with TIS, adopted its subsidiary’s high-profile nameand transitioned to an operating holding company. Embraced governance system that prioritizes
overall optimization of the Group, fueled by the cohesive power of core companies.

March 2015

ITHD turned AGREX Inc. into a
100% consolidated subsidiary.

Second Medium-Term
Management Plan
Overall optimizationof the Group andgreater sense of unity

May 2017

April 2018

Announced “Group Vision 2026”, theoverall picture of the Group in 2026

Launched new medium-term management plan

Third Medium-Term
Management Plan
Portfolio management, ina project sense, combining
exceptional businesses and key
strengths into a single approach.

Medium-Term Management Plan (2018–2020)

11.5%

4.8%

10.0%

9.4%

8.1%
¥405.6 billion

6.0%

12.0%

11.5%

¥430.0 billion

9.0%
7.4%

Group
Vision2026

Structural transformation

9.9%

7.0%

What does the TIS INTEC Group do?

April 2008

1964

¥425.0 billion¥420.7 billion

5.9%

Net sales (Billions of yen)
Operating income (%)

1.5%¥361.0 billion

ROE (%)¥338.3 billion¥327.4 billion

Fiscal
2009

Fiscal
2012

Fiscal2015

As of March 31, 2019, the TIS INTEC Group consists of 108 companies, including the parent company, 40 consolidated
subsidiaries, and 67 affiliated companies accounted for under the equity method.
Domestic
Financial IT BusinessIndustrial IT Business

Service IT Business

BPO

OthersFiscal2018

Fiscal
2019●Sorunpure

Corporation●TIS Total Service Inc.

●AGREX Inc.
●QUALICA Inc.
●AJS Inc.
●TIS Solution Link Inc.
●TIS System Service Inc.
■Equity method●Equity method

affiliates: 1

affiliates: 11●Consolidated●Consolidated

subsidiary: 1

subsidiary: 3■Equity method

Other group companies●Consolidated
subsidiaries: 2Company Name

Shareholding Ratios

Description of Business—

Focuses on credit card companies but pursues business
opportunities in a wide range of sectors, including services andmanufacturing. Merged with SORUN and UFIT in April 2011
and implemented structural reforms. Merged with pure holding
company IT Holdings Corporation in July 2016 and became
operating holding company.

TIS Inc.

INTEC Inc.

TIS

Focuses on megabanks and life insurers, and promotes CRM
100% for regional banks and offers a wide selection of services toregional public corporations, particularly in the Hokuriku region.

AGREX INC.

TIS

Leading company in mainstay BPO field. Began global BPO
100% services in October 2013. Became wholly owned subsidiary inMarch 2015. Efforts to centralize Group’s BPO operations at
AGREX still in progress.

QUALICA Inc.

TIS
Komatsu

Formerly, information systems subsidiary of Komatsu. Focuses
80% on assembly-based manufacturers, mainly those under the
20% Komatsu Group umbrella, while expanding business withcompanies in the distribution and restaurant sectors.

AJS Inc.

TIS
Asahi Kasei

51% Formerly, information systems subsidiary of Asahi Kasei. Focuses
49% on companies under the Asahi Kasei Group umbrella.

affiliates: 6

Overseas
North America●Consolidated subsidiaries : 1

7

ASEAN and others●Consolidated subsidiaries: 11■Equity method affiliates: 59

China●Consolidated subsidiaries: 3■Equity method affiliates: 1

Fiscal2021

2026

About the Group’s Five Principal Companies

TIS Inc.
●INTEC Inc.

Fiscal2020

8

TIS INTEC Group Value Creation Process

What does the TIS INTEC Group do?

TIS INTEC Group Management
Resources

Value provided to society

TIS INTEC Group Philosophy
Basic Direction on CSRGroup Vision 2026

Medium-Term Management Plan

“Create Exciting Future”“Transformation to 2020”

Providing optimum, one-stop support across clientsystem lifecycles and all types of IT-related services

Clients

Ample experience and● Provide the best services

Everything from system
operation to fullbusiness process
outsourcing (BPO)

Consulting
services● Plan/propose new application

Helping clients use
IT to raise business
value

formats for IT● Lead/support realization of visionand strategies

Business Partners
Outsourcing
servicesState-of-the-art
outsourcing network inJapan
Broad customer baseSolid financial position
etc

Contractdevelopment style
Provide systems
matched to client
requirements

Service offering
style
Provide services that
anticipate client
needs

Systemintegration
services

Providing one-stop
access to systems
perfectly matchedclient needs

IT platform
configuration
services

Research
into and accessto leading-edge
technology

Building safe and securecomputer networks, fromhost to public, matched toclient needs

Always on a quest for thelatest IT technology toprovide systems a stepahead of expectations● Promote diversity● Promote workstyle reforms

emphasizing personal achievement

2. Create comfortable society throughinnovation and joint activities● Promote safe, convenient social foundationthat supports people and society● Connect with stakeholders and promote joint

activities● Create new added-value● Fair, transparent, open competition

and appropriate business practices● Responsible Procurement

3. Create safe society throughhigh-quality services● Continuous quality improvement● Information security● Safeguard personal information

4. Enhance corporate governance andearn trust of society

Employees● Provide opportunities for growth● Corporate governance● Compliance● Risk management

and personal achievement● Offer environment that is safe andcomfortable● Promote diversity

Community / Society

Structures supporting TIS INTEC Groupbusinesses and sustainable growth9

1. Create society in which diverse
human resources are engaged andthrive● Reduce environmental impact

know-how
Extensive service menu

Contribute to the achievement of SDGs
through materiality-oriented activities● Human resources development and training

High technologicalcapabilities● Sustainable improvement inshareholder value and return toshareholders● Highly transparent disclosure● Engaging in constructive dialogue

TIS INTEC Group Business Activities
Diverse workforce

Shareholders and Investors

Corporate governance

Quality management

Production innovation

Information security

ComplianceCorporate culture● Provide systems that support

high-level information society● Help solve social issues through useof digital technologies● Reduce environmental impact

10Consolidated Financial/Non-Financial Highlights

420,769

361,025

382,689 393,398(Millions of yen, %)405,648

Operating Income
Operating Income to Net Sales Ratio 38,043

9.0

32,743
21,121
5.9

24,436
6.4

Net Income Attributable to Owners of
the Parent Company (Millions of yen)
Net Income per Share (Yen)Net Income Attributable to Owners of the Parent Company
Net Income per Share
26,034

12,678(Millions of yen)

(Millions of yen)

71,095219,225

199,842 207,345 208,307

69,961

Free Cash Flow
(Millions of yen)

75,54964,751

36,34534,18467,716241.4416,306
10,275

Order Backlog at Year-End(Software Development)

238,298

307.83

20,6208.1

27,0196.9

Orders Received during the Term
(Software Development)

What does the TIS INTEC Group do?

Operating Income,Operating Income to Net Sales Ratio

Net Sales(Millions of yen)

22,184189.02145.22117.405,194-4,536

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

2015年

2016年

ROE,
3月期 ROA
3月期

2017年
3月期

2018年
3月期

2019年
3月期

(%)

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Net Assets per Share, Equity Ratio

Dividends per Share, Payout Ratio,
Total Return Ratio* (Yen, %)Interest-Bearing Debt Balance,
Interest-Bearing Debt Ratio(Yen, %)ROE

ROA

Net Assets per Share

11.5

6.4

7.2

2,265.76
2,108.19 2,031.07
57.8
52.5
53.3

10.5

9.3

8.0

Dividends per Share

60.4

有利子負債
有利子負債比率(Millionsof yen, %)52,114

33.00
30.00
35.3
30.4
25.6
22.7

7.0

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 201935,144

15.1

40.00
30.5

19.0

16.6

10.4

2,200.0

299.0

300.0

265.2

0

4.2

2.7

5,000

2.2

NTT
Data

NRI

CTC

TIS

SCSK

UNISYSNSSOL···* The graph data indicates net sales of NTT DATA Corporation, Nomura
Research Institute, Ltd., ITOCHU Techno-Solutions Corporation (CTC), TIS Inc.,SCSK Corporation, Nihon Unisys, Ltd., NS Solutions Corporation, and TIS
INTEC Group.
* NTT DATA and CTC amounts are based on the IFRS (International Financial
Reporting Standards).

007

0

0

60〜

4

55〜59

3

50〜54

0

700

1400

1

2018

2019

2020

2021

2022

2023

40〜44

0

*Gartner "Forecast IT Service Japan by Vertical Industry 2Q19" M. Sawai/August
15, 2019 (PFSTJ1: PFST-J1-MT-1912)
End user spending based Graph created by TIS based on Gartner research
150,000
The Gartner Report(s) described herein, (the "Gartner Report(s)") represent(s)research opinion or viewpoints published, as part of a syndicated subscription
service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each
125,000
112,437
110,363
Gartner Reportspeaks as of its original
publication date (and114,305
not as of the dateof this Prospectus) and the opinions expressed in the Gartner Report(s) are
100,000
subject to change without notice.

35〜39

116,229

1.9

1.3

1.7

2016

591

1,242
1,398

564

365
前年比成長率119,787

6

1,228
1,002

5
4

2018

2019

2021

64

19.87

Total

15,948 Ratio of annual paid leave taken

72.99

Male

40.24 Number of employees on maternity leave

Female

36.09

Total

39.07

Number of employees working shorter
hours to care for young children

Average length of service (years) Male

13.69

65

692

69

General positions (male)
General positions (female)

447
38
681

Of this, men

9Female10.78 Number of employees on nursing care leave

13

Total

12.88

Number of employees working shorter
hours to care for elderly family

3

Turnover rate

155

Number of employees inmanagement positions

Male

Percentage of employees with
3,147
a disability Note 2

2.23

FemalePercentage of employees over the296
age of 60 Note 3

2.17

6

884

Of this, men (paternity leave)

Number of non-Japanese employees
4.82(foreign nationals)

54

3 0 0 596

2
1.5 Management positions
1.5 (male)2020

166.36

4,419 Non-scheduled hours worked

Number of employees ingeneral positions

0 0 704

Management positions (female)1

2017

11,529 Average total working hours

Female

38

332

702

118,020
25〜29
〜24

1.7

239

1,506

25,0000

Non-Financial Data (As of April 1, 2019)

Average age

791

909

38

39 9
103

30〜34

(Age)

50,000234,4082100

0313 647745

45〜49

75,000

11

0041

13

2.1 2

2.2

2.0

2,500

100.0

226,298

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Number of full-time employees Male

7,500

200.0

366,954 370,657

7.3

Employee Composition (As of April 1, 2019) (Number of employees)

6

10,000

358.6

400.0

337,622

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 201913,215.1
12,418.3 12,670.0 12,942.6
512,500 11,830.9 12,152.6

420.7

345,851 336,495

Net Assets* From the first quarter of fiscal 2019, TIS applies “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan, Statement No. 28, February 16, 2018).
Figures for fiscal 2018 have been retrospectively restated in line with the aforementioned partial amendments.

YOY change

451.9

Total Assets

19,877 19,483*Total return ratio: Total amount of dividends and treasury
stock buybacks as a percentage of net income.

15,000501.2

19,843

188,789 180,539 199,202(Billions of yen, %)2,163.6

500.0

19,393Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

IT Services Market Size in Japan (moderate case)(Year ended March 31, 2019)(Billions of yen)

(Millions of yen)

26,893

8.9

22.8

0012

Net Sales of Japan’s Leading IT Companies

32,876

13.7

39.0

31.9

Total Assets, Net Assets(Person)

19,09046,15836.00

Number of Employees at Year-End

Total Return Ratio

70.00

62.0

6.0

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Payout Ratio

2,719.79

2,602.07

9.9
8.8

Equity Ratio

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019

Percentage of employees inmanagement positions

Total

3,443

Male

8,382

Female

4,123

Total

12,505

Male

27.30

Female

6.70

Total

21.59

Notes: 1. The above are simple combined averages
or weighted averages for the TIS INTECGroup’s seven principal companies (TIS,INTEC, AGREX, QUALICA, AJS, TIS
System Service, and TIS Solution Link).
2. The percentage of employees with adisability represents the combined total
for TIS, SorunPure Inc. five affiliatedspecially recognized companies under theGroup umbrella (employees hired underregular: 8,940.5 people; employees witha disability: 199.5 people). Percentage of
employees with a disability is calculated
based on June 1, 2019.
3. Percentage of employees over the age of
60 is calculated based on June 1, 2019.

012