Financial Results for thethird quarter of fiscal 2018
andFour-Year Medium-Term
plan
F e b
4 , 2 0 1 9
Sy s t e na C or po ra t i on
Security code:2317(First Section of the Tokyo Stock Exchange)

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

Company Outline【Company name】

Systena Corporation【Established】

March 1983
March【fiscal period】【Director】
Representative Director
and Chairman
Representative Director
and PresidentManaging Director【Listed Monetary andCommodities Exchange】【Capital Stock】【Number of outstanding shares】

TSE 1st Section
1,513,750,000 Yen
112,720,000 shares： Yoshichika Hemmi Managing Director： Shinichiro Kawachi： Makoto Taguchi： Kenji Miura
Director： Hiroyuki Fujii： Takafumi Kai
Director：Shingo Hemmi
Outside Director ：Yukio Suzuki
Outside Director ：Kouichi Ogawa
Director【Auditor】
Full-time Corporate Auditor(Outside Corporate Auditor)： Toru Hishida【Number of Employees】

Outside Corporate ： Masao Sato､ Yoshihiro Nakamura､ Masao Hamano
Auditor

Non-Consolidated:2,402/Consolidated:3,263 (As of January 1, 2019)
Framework Design Business

Solution Design Business► Development of self-driving and in-vehicle systems► Development of various social infrastructure systems► Development smartphone and web applications► Embedded development using robotics, artificial intelligence and IoT► Comprehensive support for various systems and services fromplanning to design, development verification and operation► Development of mission-critical systems for the financial
sector (for the non-life insurance, life insurance, andbanking industries), the industrial sector, public sector
and other industries
Development of infrastructure systems►► Planning, development and offering of product introduction
service

Solution Sales Business

Cloud Business► IT-related products for corporate► Offering Systena’s own service, ‘Canbus.’

IT Service Business► Operation, maintenance, andmonitoring of systems andnetworks► Help desk and user support

Consumer Service Business► Planning and management ofsocial games for mobile,
smartphone, PC► Offering and supporting introduction of G

Overseas Business

Investment & Incubation Business► Mobile communication-related technicalsupport, development and verification
support , provision of various solutions►‘Canbus.IoT’ , ‘Cloudstep’ , ‘Web Shelter’.

customers, such as servers,
computers, peripherals, andsoftwareSuite, Microsoft Office 365, and othercloud services► New business promoted bysubsidiary Internet of Things

Trend research and commercialization of
the latest technologies and services

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

1

Domestic Group Companies●Equity method affiliatedcompanies●Consolidated subsidiaries

ＰｒｏＶｉｓｉｏｎ Co., Ltd.
【Capital】 85,000,000 Yen【Ratio of capital contribution】
100％
Information terminal softwaredevelopment support, technicalsupport, Mobile device and webbased app quality verification,
System operation andmaintenance（Solution Design Business）（Framework Design Business）

Tokyoto Business
Service Co.,Ltd【Capital】 100,000,000 Yen

IDY Corporation

HIS HOLDINGS,INC.

【Capital】 65,000,000 Yen【Ratio of capital contribution】
76.7％【Capital】 95,000,000 Yen【Ratio of capital contribution】
25.6％

Data entry, Large volume output,
Mailing service, Secretariat agency,
Paperwork agency. Model company
for employing heavily disabled
persons incorporated jointly withTOKYO METROPOLITANGOVERNMENT.

Design, manufacture and sales of
IoT/M2M router,LTE/3G/WiMAX2+/PHS router,
Wi-Fi board, Android terminal,
wireless digital signage, antennaetc

Development and sale of products(software) for computers andrelated equipment, Provision of
personnel including computerengineers and technicians.

（IT Service Business）（Solution Design Business）（Solution Design Business）【Ratio of capital contribution】
Systena 51％ TOKYO METROPOLITAN GOVERNMENT 49％

TBSOPERATION CO., LTD
GaYa Co.Ltd.
【Capital】 75,000,000 Yen【Ratio of capital contribution】
65％
Planning and management of social
games for mobile, smartphone, PC（Consumer Service Business）【Capital】 30,000,000 Yen【Ratio of capital contribution】
Tokyoto Business Service
Co.,Ltd 100％
Employment transition support andcontinuous employment support
based on the General Support for
Persons with Disabilities Act.
Employment training for persons
with disabilities.

（IT Service Business）

Internet of Things, Inc.
【Capital】 50,000,000 Yen【Ratio of capital contribution】
100％
Provide planning, development,
sales and other services in thefields of IoT, robots, Fintech andsocial media.

（Investment & Incubation
Business）

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

2

Overseas group companies● Consolidated subsidiaries

Systena America Inc.

●Equity method affiliatedcompanies

StrongKey, Inc.

【Capital】 19,000,000 US dollar【Ratio of capital contribution】
100％【Capital】 10,000,000 US dollars【Ratio of capital contribution】
20％

Mobile communications-related
technical support, development andverification support, Provision ofvarious solutions, Trend researchand commercialization of the latest
technologies and services

Development and sale of encryption
and authentication products（Overseas Business）

Systena Vietnam Co.,Ltd.
【Capital】 200,000 US dollar（4,200,000,000 Vietnamese
DONG）【Ratio of capital contribution】
100％

capitalcontribution ※ StrongAuth, Inc. changed

business name to StrongKey, Inc.

（Overseas Business）

ONE Tech, Inc.
【Capital】 3,000,000 US dollars【Ratio of capital contribution】
50％
Development and sale of IoT
solution packages

Software development, evaluationand verification, operation andmaintenance, IT Service in General.

（Solution Design Business）（Framework Design Business）（Overseas Business）

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

3

Financial Results forthe third quarter offiscal 2018
（1/Apr/2018～
31/Dec/2018）
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

4

Financial Results 1Q-3Q（Consolidated）
Software development has continued to perform strongly, primarily in the areas ofInternet Business, e-Commerce, In-Vehicle Systems, IoT, Robotics and AI. The businessscope of IT services have expanded significantly. The Solution Sales Business focusedon strong system integration business. For the Cloud Business, we actively expanded
the sales promotion of in-house commercial products. As a result of these efforts, weachieved a significant increase in both revenue and profits.
（in millions of yens）

1Q-3Q Fiscal 2018
Profit ratio

AmountNet
sales

1Q-3Q Fiscal 2017

43,032

Amount－ 38,906

YoY rate

Profit ratio

Amount ofchangerate ofchange

－

4,126

10.6％

Operatingprofit5,194 12.1％

3,715

9.5％

1,479

39.8％

Ordinary
profit

5,049 11.7％

3,706

9.5％

1,343

36.2％

Profitattributable toowners ofparent

3,391

2,585

6.6％

805

31.2％

7.9％

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

5

Financial Results 1Q-3Q
Sales by Segment（Consolidated） ＜YoY rate＞（in millions of yens）

1Q-3Q Fiscal 2018
Sales distribution
ratio

AmountSolution
Design1Q-3Q Fiscal 2017
Sales distribution
ratio

AmountYoY rate
Amount ofrate of changechange15,42335.8％

13,632

35.0％

1,790

13.1％

Framework
Design

3,910

9.1％

3,386

8.7％

523

15.5％

IT Service

5,750

13.4％

5,181

13.3％

569

11.0％

Solution
Sales

17,025

39.6％

16,037

41.2％

988

6.2％

Cloud

760

1.8％

640

1.7％

119

18.7％

Consumer
Service

283

0.7％

392

1.0％

▲109

▲28.0％

Overseas

83

0.2％

60

0.2％

22

38.2％

Investment
Incubation

0

―

5

0.0％

▲5

―

Adjustment

▲203

▲0.6％

▲431

▲1.1％

228

―

Total

43,032100.0％

38,906100.0％

4,126

10.6％

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

6

Financial Results 1Q-3Q
Operating profit by Segment（Consolidated） ＜YoY rate＞（in millions of yens）

1Q-3Q Fiscal 2018

1Q-3Q Fiscal 2017

YoY rate

AmountProfit ratio

AmountProfit ratio

Amount ofchangeSolution
DesignFramework
Design

2,760

17.9％

1,784

13.1％

975

54.7％

635

16.3％

472

14.0％

162

34.4％

IT Service

791

13.8％

600

11.6％

191

31.9％

Solution
Sales

916

5.4％

841

5.2％

74

8.8％

Cloud

144

19.0％

81

12.8％

62

76.8％

Consumer
Service

▲23

―

91

23.4％

▲115

―

Overseas

▲27

―

▲142

―

115

―

Investment
Incubation

▲2

―

▲18

―

16

―

Adjustment

0

―

3

―

▲3

―

5,194

12.1％

3,715

9.5％

1,479

39.8％

Total

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

rate ofchange7

Financial Results 1Q-3Q
Composition of Net Sales and Operating Profit by Segment
Consumer
Service

Net sales¥43,032mil

Cloud

0.7%
Overseas

1.8%

0.2%

Solution
Design35.8%

Solution
Sales

Operating profit¥5,194mil
Cloud

2.8%

Solution
Sales

17.6%

Solution
DesignIT Service

15.2%

39.6%
Framework
DesignIT Service
9.1%

13.4%
Investment & Incubation—
Adjustment
▲0.6%

53.1%

Framework
Design12.2%
Consumer Service▲0.4％
Overseas▲0.5％
Investment & Incubation ▲0.0%
Adjustment—

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

8

Outlook by Segment

1. Solution Design Business
2. Framework Design Business3. IT Service Business
4. Solution Sales Business5. Cloud Business6. Overseas Business7. Consumer Service Business

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

9

1. Solution Design Business
Key Points for 3Q

Year-on-year

Net Sales 15,423 million yen +13.1％

Year-on-year

Operating Profit 2,760 million yen +54.7％

We engaged in selection and concentration in growth areas, and system development
for in-vehicle systems and internet services was solid.
Sales increased 13.1% year-on-year, while operating profit rose 54.7% over thesame period.
Outlook for this Period

compared with previous period

Net Sales 21,216 million yen + 12.7％

compared with previous period

Operating Profit 3,275 million yen +23.2％

We will actively pursue offshore development utilizing Systena Vietnam andrespond to demand from customers through a synergy effect with development
sites in other regions.
1. In-vehicle Systems Business ~ Focus on winning orders from high-growth areas! ~ Orders in the information field (infotainment) aimed at improving the comfort of in-vehicle
spaces will expand.
 In the safety field related to passenger vehicles and fixed route buses, etc., we will expand
projects and accumulate expertise based around autonomous driving.
 We will strengthen cooperation with communications business providers for promoting theuse of connected cars.
2. Internet Services Business ~ Focus on highly profitable areas through selection and concentration! ~ Orders will expand in the e-commerce and e-payment field for major mail-order companies,
and the contracted development lab will be upgraded and expanded, Orders will grow in the web business field utilizing smart devices.
 We will expand into internet service projects based around IoT and AI.
3. Robotics Business ~ Focus on the service robot area! ~ The development of solutions that utilize service robots and related consulting will expand.
 We will expand into projects that utilize robots based around RPA and AI.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

102. Framework Design Business
Key Points for 3Q

Year-on-year

Net Sales 3,910 million yen +15.5％

Year-on-year

Operating Profit 635 million yen +34.4％

In the financial field for existing customers, solid performance has continued due toexpanded development of major insurance systems and an expansion of projects forinfrastructure building. In the field of new services, we have actively pursued
promotional efforts including trade shows and seminars, with a focus on license sales
and adoption support for our business automation solutions.
Outlook for this Period

compared to previous period

Net Sales 5,100 million yen +10.9％

compared to previous period

Operating Profit 700 million yen +5.7％

Expand orders for highly-profitable projects exhibiting growth potential
and aggressively expand into new businesses
１．Expand orders for lucrative projects with growth potential
 Expand into development projects with a focus on insurance systems,
payment system sand social infrastructure.
 Orders will expand due the renewal of next generation systems for nonlife insurance systems.
２．Aggressively expand into new businesses with a focus on inter-HQ
integration and manufacturer integration
 We will upgrade and expand our commercial products including
business automation (RPA), cloud computing and data analysis, andwin more orders for license sales and adoption support services.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

11

3.IT Service Business
Key Points for 3Q

Net Sales 5,750 million yen

Year-on-year+11.0％

Year-on-year

Operating Profit 791 million yen +31.9％

We stepped up sales efforts targeting customers’ profit-making
divisions while high value-added on-off projects such as Windows
10 migration for internal IT divisions and the associated smart
device adoption drove sales and profits.
Additionally, we cultivated new customers using AI chat bots andsecurity-related commercial products as sales hooks.
Outlook for this Period

compared to previous period

Net Sales 7,778 million yen +11.0％

compared to previous period

Operating Profit 1,001 million yen +22.0％

Move towards lucrative business models with high growth potential
 We will shift from conventional services utilizing the ability to mobilize
human resources such as help desk and system operator services to perservice contracted business services underpinned by expertise gained fromprojects and English language ability, such as high added-value IT support,
IT infrastructure, PMO and lab services. We will make changes toproviding services more directly linked to the expansion of customers’
businesses, and also expand the number of customers we serve and net
sales by deploying new commercial products while upgrading andexpanding our existing offerings.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

12

4. Solution Sales Business
Key Points for 3Q

Year-on-year

Net Sales 17,025 million yen +6.2％

Year-on-year

Operating Profit 916 million yen +8.8％

 Leveraging workstyle reform as a key concept, we have stimulated demand primarily in the areasof mobile, security and cloud computing.
 As a result, although we forecast a reactionary decline from significant PC replacement projects
recorded in the previous period, we gained replacement projects for upgrades from Windows 7
to Windows 10 primarily for mobile PCs to an extent that surpassed performance of the previous
period.
 We expanded the number of high added-value one-stop service projects over what we hadenvisioned in the roadmap in various areas including the introduction of IT equipment,
infrastructure building, system development, maintenance and operation.
Outlook for this Period

compared to previous period

Net Sales 20,500 million yen ▲10.4％

compared to previous period

Operating Profit 893 million yen ▲10.4％

1. Investment in expanding the solutions segment
 We will upgrade and expand the range of services we offer, and devote greater resources

2. Enhance initiatives aimed at hybrid environments
 We will strengthen support for customers moving from on-premise systems (owned andoperated by the customer) to hybrid environments.

3. Strengthen earnings capacity through expanded sales of services
 Provide all services through ALL Systena Launch a new one-stop service centered around apps

4. Strengthen coordination with Internet of Things, Inc.
 Sale and development of IoT-related commercial products with a strong focus on
security (IDY, SA)*SA: Systena America Inc.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

13

5. Cloud Business
Key Points for 3Q

Year-on-year

Net Sales 760 million yen +18.7％

Year-on-year

Operating Profit 144 million yen +76.8％

 Orders received for the new Canbus. Service were brisk. We conductedpromotional activities through web and television commercials tostrengthen sales promotion. We stimulated demand by employing the
keywords Digital transformation(DX) and IT management to ouradvantage.
 Due to migrating groupware to the cloud as a part of workstyle reform,
we enjoyed strong sales of Cloudstep.
Outlook for this Period

compared to previous period

Net Sales 1,000 million yen +2.8％

compared to previous period

Operating Profit 100 million yen ▲35.5％

1. Prior investment through stronger sales promotion of Canbus.

 There will be an increase in business inquiries due to sales promotion activities
focused on Web promotion to increase the number of customers.

2. Boosting profitability through enhanced service

 Enhancing services in the Cloudstep series Offering more in-depth integration
with G Suite and Office365

3. R&D into new services

 Research and development into new services including blockchain, AI and IoT
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

14

6. Overseas Business Systena America Inc.
Key Points for 3Q

Net Sales 73 million yen

Year-on-year+30million yen

Year-on-year

Operating Profit ▲28 million yen +88million yen

 We will start new initiatives, including the application of new projects ordered byleading Japanese companies on the east coast to offshore operations in Vietnam, in
addition to expanding the range of orders received from existing customers.
 We will proactively seek to sell StrongKey products in Asian countries, including
Japan, in cooperation with Systena Japan. *Company name was changed from StrongAuth to StrongKey.
 We will proactively seek to sell LPWA solutions to leading U.S. communications
companies, major Japanese manufacturers, etc. through ONE Tech, Inc.
Outlook for this Period

compared to previous period

Net Sales 177 million yen +125million yen

compared to previous period

Operating Profit 5 million yen +151million yen

1. Full-scale launch of new business through StrongKey and ONE Tech We will promote business through StrongKey (Security) and ONE Tech (IoT).

2. Global roll-out of end-to-end solutions through a joint venture with
Plasma We will showcase our IoT solutions at the U.S.-based IoT Expo and strengthen
sales both inside and outside the United States.
 Stronger sales of LPWA equipment, sensors and IoT gateways.

3. Technical support for Japanese companies in the U.S.
 While maintaining our existing customers we aim to win more projects fromnew Japanese manufacturing companies.
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15

7. Consumer Service Business
Key Points for 3Q

Year-on-year

Net Sales 283 million yen ▲28.0％

Year-on-year

Operating Profit ▲23 million yen ▲115million yen Development of contracted titles began and advanced smoothly.
⇒ For the next fiscal year, we will look deeply into additional orders
received for multi-channeling compatibility after completion.
 We will release new titles in December by concentrating our resources on
their development.
⇒Initial actions were smooth. We plan to recoup our investment in the
fourth quarter. Profits for the current quarter decreased.
Outlook for this Period

compared to previous period

Net Sales 484 million yen ▲3.4％

compared to previous period

Operating Profit 31 million yen ▲52.3％

1. Release and improvement of contracted titles
 We will win orders to develop other titles, seeking results in bothbreadth and depth.
⇒We started working on newly acquired projects in the third quarter.
They advanced smoothly.
2. Release and operation of new titles
 We released one evergreen game in December ahead of schedule.
⇒We will focus on expanding content with the aim of recouping ourinvestment in the fourth quarter.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

16

Earnings Forecast for
Fiscal 2018
(Consolidated, Full Year)

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

17

Earnings Forecast for the Full Year (Consolidated)（in millions of yens）

Fiscal 2018
Earnings Forecast
AmountNet
sales

56,045

Profit ratio

Fiscal 2017
Amount－ 54,320

Profit ratio－

YoY rate
Amount ofchangerate ofchange

1,724

3.2％

Operatingprofit6,012 10.7％

5,170 9.5％

841 16.3％

Ordinary
profit

5,714 10.2％

5,147 9.5％

566 11.0％

Profit attributableto owners ofparent3,802 6.8％

3,542 6.5％

259

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

7.3％
18

Earnings Forecast for the Full Year (Consolidated)

Sales by Segment
Fiscal 2018
Earnings Forecast
Sales distribution
ratio

AmountSolution
Design（in millions of yens）

Fiscal 2017

YoY rate

Sales distribution
ratio

AmountAmount ofrate of changechange21,21637.8％

18,833

34.7％

2,382

12.7％

Framework
Design

5,100

9.1％

4,600

8.5％

499

10.9％

IT Service

7,778

13.9％

7,010

12.9％

767

11.0％

Solution
Sales

20,50036.6％

22,88542.1％ ▲2,385 ▲10.4％

Cloud

1,000

1.8％

972

1.8％

27

2.8％

Consumer
Service

484

0.9％

501

0.9％

▲17

▲3.4％

Overseas

190

0.3％

72

0.1％

117 163.7％

Investment
Incubation

21

0.0％

5

0.0％

15

272.9%

Adjustment

▲244

▲0.4％

▲559

▲1.0％

315

－

Total

56,045100.0%

54,320100.0％

1,724

3.2％

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

19

Earnings Forecast for the Full Year (Consolidated)

Operating profit by Segment
Fiscal 2018
Earnings Forecast

Fiscal 2017

（in millions of yens）

YoY rate

Profit ratio

Amount ofchange

2,657

14.1％

617

23.2％

13.7％

662

14.4％

37

5.7％

1,001

12.9％

820

11.7％

180

22.0％

Solution
Sales

893

4.4％

997

4.4％

▲104 ▲10.4％

Cloud

100

10.0％

155

15.9％

▲55 ▲35.5％

Consumer
Service

31

6.4％

65

13.0％

▲34 ▲52.3％

Overseas42.1％▲172 ▲240.0％

176－

Investment
Incubation

8

38.1%

▲19 ▲348.0％

27－

Adjustment

0

－

5

－

▲5

－

6,012

10.7％

5,170

9.5％

841

16.3％

AmountProfit ratio

Solution
DesignFramework
Design

3,275

15.4％

700

IT Service

Total

AmountCopyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

rate ofchange20

Earnings Forecast
Composition of Net Sales and Operating Profit by Segment

Cloud

Net sales¥56,045mil

Consumer
Service1.8%

0.9%
Overseas

0.3%

Solution
Sales

36.6%

Solution
Design

37.8%

Cloud

1.7%

Operating profit
6,012milConsumer
Service

0.5%
Solution
Sales

14.9%
Solution
DesignIT Service

16.6%

54.6%
Framework
IT Service Design

13.9%

9.1%

Investment & Incubation 0.0%
Adjustment▲0.4%

Framework
Design11.6%
0.1％
Overseas
Investment & Incubation 0.1%
▲1.0%
Adjustment

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21

Systena GroupManagement Objectives
and Basic Policy

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

22

(1) Basic Management Policy
The management objective of the Systena Group is

to become one of Japan’s leading IT
companies and support the Japanese
economy from the ground up!

To achieve this, we embrace the basic policy ofbalanced management, controlling the conflicting
qualities of “destruction and creation,” “stability
and growth” and “maintenance and innovation”
in the right balance while continually placing theaxis of management at the central point of thependulum.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

23

(2) Targeted Management Indicators

 Stable and high dividends
 High return on equity
 High ratio of operating profit to sales
To achieve these targets, we will strive
to establish a high earnings structure
consistent with a basic management
policy emphasizing balance between
growth and stability.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

24

Systena
Four-Year Medium-Term
Plan(Fiscal 2015 to Fiscal 2018)

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

25

Four-Year Medium-Term Plan

Strategies(1) Autonomous driving(2) Smart cities(3) Robotics(4) IoT solutions

We will focus management
resources on the fields expected
to experience the most growthover the next decade.

Targeted Management Indicators and Outlook for Fiscal 2018
KPI

FY2014
Results

FY2015Results

FY2016
Results* Effective June 1, 2018, Systena split each of its commonshares into four, but figures that do not take this split into
account are listed.
(hundreds of millions of yen)

FY2017
Results

FY2018 Outlook

InitialTargetNet Sales

36,951

42,69546,25554,32056,045

Operating
Profit

2,226

3,172

3,693

5,170

6,012

EPS (yen)

37

90.59

89.68

145.26*155.91

－

30
81.0％

32
35.3％

36
40.1％

46
31.7％

*52
33.4％

52 yenAt least
40％

7.3％

17.2%

15.7％

22.4％

20.9％

At least
20%

Dividends (yen)Payout ratio

ROE

56,0002.5x（5,500）

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

26

1. Solution Design Businessrobotics utilizing our expertise in productin-vehicle systems
Promote a shift towards in-vehicle
systems and robotics
socialinfrastructure
infrastructuredevelopment and verification, primarily for smartphones, and towards social
including transportation and electric power based on our track record in web system development
and verification.
With a focus on customers pursuing the expansion of net businesses, position
in-vehiclesystems
systems andnet businessbusiness as core businesses,
socialinfrastructure
infrastructure and net
in-vehicle
androbotics
robotics, social
business
supportto
tocreate
create thethemselves
combined with businesssupporttheservices
servicesthemselves.
Net Sales:
900 million
Operating Profit:
80 million

Net Sales:
1 billion
Operating Profit:
100 million

SocialInfrastructure

In-vehicle
Systems

Smartphones
Net Sales:
2.5 billion
Operating Profit:
200 million

Net Sales:
1.2 billion
Operating Profit:
100 million

Socialinfrastructure

Net Sales:

FY2014
Net Sales: 11.76
billion yen
Operating Profit: 1.03
billion yen

State of Progress

FA robots
Social Infrastructure

Capturing My Number IT
investment
Electricity
deregulation

Business
Systems
Net Sales:
1.5 billion
Operating Profit:
140 million

Net Sales:

ITS(intelligent transport system)

Net Business
Net Sales:
Smartphones

Olympics-related

FY2017

6.2 billion

Operating Profit:
Net Sales:
700 million
900 million
Operating Profit:
110 million

Net business

FY2016

2.6 billion
Operating Profit:
300 million
Business
Systems

3.5 billion
Operating Profit:
410 million

Enhancing business dealings withmedium-sized clients

FY2015

3.6 billion
Operating Profit:
460 million
In-vehicle Systems

Products

Communication
robots

Products

Net Business
Net Sales:
4.66 billion
Operating Profit:
420 million

In-vehicle systems
In-vehicle systems/ robotics

Net Sales:

Net Sales:
1.7 billion
Operating Profit:
220 million

FY2018 Outlook

Initial Target
Net sales:
18.5 billion yen

Towards 1.6x growth in net sales, 2.1x growth in operating profit(net sales growth of 3.7x and operating profit growth of 4.8x
for in-vehicle systems and social infrastructure)

Operating profit:
2.2 billion yen

Net sales:
14.05 billion yen

Net sales:
16.91 billion yen

Net sales:
18.83 billion yen

Net sales:
21.21 billion yen

Operating Profit:
1.55 billion yen

Operating Profit:
1.9 billion yen

Operating Profit:
2.65 billion yen

Operating Profit:
3.27 billion yen

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

27

2. Framework Design Business(1)Deploy development track record and expertise from the financeindustry (insurance and banks) for the mission-critical systems ofother industries.
(2)Expand cooperation between divisions and try to shift to a stock-typebusiness
Net Sales: 710
million  2 billion

Lateral deployment of services
to other industries
Insurance- Workflow development- Long-term maintenanceOffshore
Projects

Operating Profit: 3
million  120 million

Promote coordination between divisions
Migration and
本部間協業・
Upgradingand expansion of new services

State of Progress

PublicServices

Operating Profit: 310
million  400 million

One-off
Projects

Net Sales: 40 million 
800 million

Operating Profit: 390
million yen

MedicalTransportation

Enhance existingcustomer base

Net Sales: 4.2
billion yen

Construction

Mission-critical Business
Tasks

Foods

Net Sales: 3.45
billion  3.7 billion

FY2014

Logistics

Distribution(Handling of revised laws, etc.)

Banks

Infrastructure

Automotive

Operating Profit: 70
million  280 million

FY2015FY2016FY2017

Track Record in
Finance

PMO
Apps and
Assessment

Big Data
Business
Foundation

Product Introduction Support
Services

FY2018 Outlook

Towards Net Sales: 1.5x and Operating Profit: 2.1x(net sales growth of 20x and operating profit growth of 40x for coordination
between divisions and new services)
Net Sales: 5.19
billion yen

Net Sales: 4.20
billion yen

Net Sales: 4.6
billion yen

Net Sales: 5.1
billion yen

Operating Profit: 700
million yen

Operating Profit: 590
million yen

Operating Profit: 660
million yen

Operating Profit:
700 million yen

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

Initial Target
Net Sales: 6.5billion yen
Operating Profit:
800 million yen

28

3. IT Service Business
By approaching the expertise gained from help desk and system operation andmaintenance from a different perspective, we will establish a scheme to shift tohigher value-added services by developing upstream processes and services, which
will lead to ongoing improvement in sales and profit.

- Support services to strengthen global
competitiveness- IT support environment optimization
service- LABO service- Infrastructure optimization service- Project promotion service

Speeding up human resource development

Shortening leader
development timefrom 3 years to 1
year

Stable hiring of engineers
870 engineers  1,340 engineers

Increase of 470
engineers
SystemOperation

Help Desk

FY2014
Net Sales: 5.13
billion yen
Operating Profit:
300 million yen

State of Progress

FY2015Stronger
Hiring

Kitting

FY2016FY2017FY2018 Outlook

Net Sales: 6.36
billion yen
Operating Profit:
650 million yen

Net Sales: 7.01
billion yen
Operating Profit:
820 million yen

Initial Target
Net Sales: 7.0
billion yen

Towards Net Sales: 1.4x Operating Profit: 2.3x
Net Sales: 5.78
billion yen
Operating Profit:
440 million yen

Strongersales

At present, these services product a net sales ratio of 30% and gross profit ratio of 32%. Four years
from now, we will grow these figures to over 70% to raise the gross profit ratio
for the entire business from 23% to 28%.

Strongermanagement

The Evolution to High Value-Added Services

Net Sales: 7.77
billion yen
Operating Profit: 1
billion yen

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

Operating Profit:
700 million yen

29

4. Solution Sales Business
Basic Policy

Lead Systena as a Comprehensive Sales Business～ Transform into a True Business Partner ~Business StrategyStrengthen support for hybrid environments
Expand the stock business
Extend synergy from integration between divisions

Numerical Targets
 Existing Businesses
Net Sales: 13.3 billion / Operating Profit: 330 million  Net Sales: 16.0 billion / Operating Profit: 480 million(profit ratio of 3%)
 Infrastructure Services Using the Cloud (Hybrid / Stock)
Net Sales: 1.7 billion / Operating Profit: 130 million  Net Sales: 2.8 billion / Operating Profit: 240 million(profit ratio of 9%)
 SaaS Business Using the Cloud (Hybrid / Stock)
Net Sales: 50 million / Operating Profit: 0 million  Net Sales: 1.2 billion / Operating Profit: 80 million(profit ratio of 7%)
 Coordination with the framework design division will be key to the deployment of cloud services.
FY2014
Net Sales: 15.19
billion yen
Operating Profit: 480
million yen

State of Progress

FY2015FY2016FY2017FY2018 Outlook

Operating profit ratio of 4%, service net sales of 4 billion and net sales ratio of 20%

Net Sales: 16.83
billion yen

Net Sales: 17.77
billion yen

Net Sales: 22.88
billion yen

Net Sales: 20.5
billion yen

Operating Profit:
500 million yen

Operating Profit:
700 million yen

Operating Profit:
990 million yen

Operating Profit:
890 million yen

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

Initial Target
Net Sales: 20.0
billion yen
Operating Profit:
800 million yen

30

5. New Business Planning Division
PurposeConsolidate related businesses, improve investment efficiency and strengthen sales coordination with the aim of
expanding the stock business through the creation of high-added value businesses that revolve around IoT, security,
Fintech, robotics and content.

To quickly put overseas businesses on track, move from the business model where overseas subsidiaries carry out theirbusiness activities individually, strengthen coordination with the main unit of Systena, switch to a business model that involves
full utilization of ALL Systena management resources and enter profitability at an early stage.

New Business Planning
Division

Domestic

Overseas

Incubation Business
GaYa◆ Planning, services
and operation for
in-house content◆ Promotion ofoverseas exports

Product Innovation
DivisionInternet ofThings◆ Cloudstep◆ WebShelter◆ Planning and saleof other in-houseproducts andcommercial products◆ Coordinate with
America and rollout new services
based on IoT in
Japan

Net Sales: 920
million yen
Operating Profit:
40 million yen

State of Progress◆ Provide technical support to local
Japanese subsidiary◆ Support forays into Japan by
U.S.-seeded investment, ventureservices and innovation◆ Win orders for IoT projects on the
global marketplace

Keywords: IoT, security, robotics

Content
FY2014

Systena
America

FY2015FY2016FY2017FY2018 Outlook

Initial Target
Net Sales:
4.0 billion yen

Global roll-out of the royalty business

Operating Profit: 1 .0
billion yen

Net Sales: 1.17
billion yen

Net Sales: 1.21
billion yen

Net Sales: 1.5 billion
yen

Net Sales: 1.6
billion yen

Operating Profit: -60
million yen

Operating Profit: 140 million yen

Operating Profit:
40 million yen

Operating Profit:
100 million yen

Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

31

Key Points of the New Business Planning DivisionThis period we plan to begin sales of the following two services. We will make theroyalty business a pillar of earnings from the following period onwards.
Company Name

Keywords

Overview

The joint venture company ONE Tech Inc. was established in the
United States with Plasma, which maintains one of the leading IoT
platforms in the U.S.
We will accelerate businesses using all-in-one IoT platforms on a
joint basis in Japan and the United States.
Selected as the IoT platform in smart city plans for some of the largest cities
in the United States. The company’s IoT platform has also been adopted by awide range of other companies from AT&T and HP to major U.S.-based oilcompanies, large distribution firms, universities, medical institutions,construction companies and Australia’s largest livestock breeding company.

Concluding an exclusive Japanese sales agreement forauthentication and encryption solutions authorized by the world’s
central banks, major financial institutions and militaryorganizations.
Examples of Adoption:
A Western European central bank, national military organization, internationalorganizations, largest marketplace and provider in the event ticket industry,
one of America’s leading telecom carriers, one of the largest
telecommunications companies in the APAC region, major multinational
companies, etc.
In addition to encryption solutions, we propose the next-generation
authentication systems (FIDO) popular in Europe and the United States toJapanese companies.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.

32

Making digital society a happy society.
Systena IT Services

https://www.systena.co.jp/
The earnings forecasts described in this document and mentions of future events are predications based on theinformation available at the time of publication, and may incorporate uncertain factors.
Please note that actual business performance can fluctuate due to various factors including changes in theeconomic or business environment.
Copyright ⓒ 2010 - 2019 Systena Corporation All Rights Reserved.