Financial Results for the firstquarter of fiscal 2021
andmedium-term
management planJ u l y 2 9 , 2 0 2 1Sy s t e na C or po ra t i on

Security code:2317(First Section of the Tokyo Stock Exchange)

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Company Outline【Company name】

Systena Corporation【Established】

March 1983
March

【Fiscal period】【Listed Monetary andCommodities Exchange】【Capital Stock】【Number of outstanding shares】

TSE 1st Section
1,513,750,000 Yen
112,720,000 shares【Director】 Representative Director ： Yoshichika Hemmi Director ： Makoto Taguchi Outside Director ： Yukio Suzuki
and Chairman
Representative Director ： Kenji Miura
Director ： Hiroyuki Fujii
Outside Director ： Kouichi Ogawa
and President：
Takafumi
Kai：
ShingoHemmi
Director
Outside Director ： Mari ItohManaging Director： Shinichiro Kawachi Director ： Hiroshi Kotani
Managing Director【Auditor】 Full-time Corporate Auditor
Outside Corporate ： Yoshihiro Nakamura､ Hiroshi Adagawa、Nobushige Tokuono(Outside Corporate Auditor) ： Toru Hishida【Number of Employees】

Auditor

Non-Consolidated:3,423/Consolidated:4,667 (As of July 1, 2021)

Solution Design Business► Planning, design, development and verification support for►

automated driving and in-car systems, products andtelecommunications services
Planning, design, development and verification support forInternet-based business, commercial apps, web services, social
infrastructure-related systems, IoT, AI and robot-related services►►

Framework Design Business
Development of mission-critical systems for thefinancial sector (for the non-life insurance, life
insurance, and banking industries), the industrial
sector, public sector and other industries
Development of infrastructure systems

IT Service Business► Provision of IT outsourcing services including

Business Solution Business

operation/maintenance/monitoring of systems and networks,
help desk/user support, data input, large-volume output,
software development support and technical support for
information devices, quality verification of mobile devices/Web
applications►► Offering and supporting introduction of

Google Workspace, Microsoft Office 365,
and other cloud services

as servers, computers, peripherals, and software
Provisionof infrastructure building, virtualization►and other IT device/equipment-related services► Provision of RPA solutions

Overseas Business

Investment & Incubation Business► Mobile communication-related technical► New business promoted by subsidiary

Cloud Business
Offering Systena’s own service, ‘Canbus.’‘Canbus.IoT’ , ‘Cloudstep’ , ‘Web Shelter’.

► IT-related products for corporate customers, suchsupport, development and verification
support , provision of various solutions►

Trend research and commercialization of
the latest technologies and services

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

►

ONE Tech Japan
Planning and management of social
games for mobile, smartphone, PC by
subsidiary GaYa

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（IT Service Business）

IDY Corporation【Capital】 65,000,000 Yen【Ratio of capital contribution】
76.7％
Design, manufacture and sales of
IoT/M2M router,LTE/3G/WiMAX2+/PHS router,
Wi-Fi board, Android terminal,
wireless digital signage, antennaetc（ Business Solution Business）

Tokyoto Business
Service Co.,Ltd

TBSOPERATION CO., LTD

HIS HOLDINGS,INC.

【Capital】 40,000,000 Yen【Ratio of capital contribution】
Tokyoto Business Service
Co.,Ltd 100％【Capital】 95,000,000 Yen【Ratio of capital contribution】
25.2％

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

Employment transition support andcontinuous employment support
based on the General Support for
Persons with Disabilities Act.
Employment training for persons
with disabilities.

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

（IT Service Business）（IT Service Business）（Solution Design Business）

GaYa Co.Ltd.

ONE Tech Japan, Inc.

【Capital】 75,000,000 Yen【Ratio of capital contribution】
65％【Capital】 85,000,000 Yen【Ratio of capital contribution】
87.5％【Capital】 100,000,000 Yen【Ratio of capital contribution】

Systena 51％ TOKYO METROPOLITAN GOVERNMENT 49％

Planning and management of social
games for mobile, smartphone, PC（Investment & Incubation
Business）

Provide planning, development,
sales and other services in thefields of AI, IoT, robots, Fintech
and social media.

（Investment & Incubation
Business）

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

2

Overseas group companies● Consolidated subsidiaries●Equity method affiliatedcompanies

Systena America Inc.

StrongKey, Inc.

【Capital】 28,000,000 US dollar【Ratio of capital contribution】
100％【Capital】 7,650,000 US dollars【Ratio of capital contribution】
28.8％

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】 6,000,000 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 Systena Corporation All Rights Reserved.

3

Financial Results forfirst quarter of fiscal 2021
（Consolidated）＜YoY rate＞
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

4

Financial Results 1Q（Consolidated）（in millions of yens）

1Q Fiscal 2021
Profit ratio

AmountNet
sales

1Q Fiscal 2020

15,331

Amount－ 14,856

YoY rate

Profit ratio

Amount ofchange－475

rate ofchange3.2％

Operatingprofit

1,755 11.4％

1,765 11.9％

Ordinary
profit

1,702 11.1％

1,831 12.3％ ▲128 ▲7.0％

Profitattributable toowners ofparent1,144 7.5％

1,246

▲9 ▲0.6％

8.4％ ▲102 ▲8.2％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

5

Point 1
Solution Design Business

Net Sales 4,753

Year-on-year
million yen+2.0％

Operating Profit

695

million yen

Year-on-year+9.4％

 Orders were strong primarily for 5G, GIGA school
initiative and cashless payments.
 We cultivated new businesses actively in growth areas
such as those related to Digital Transformation, AI andIoT.
Framework Design BusinessYear-on-year

Net Sales 1,136 million yen ▲1.4％

Operating Profit 153

million yen

Year-on-year▲10.9％

 In the financial sector, the downward trend in large-scale projects ended.
However, this did not lead to a full recovery because the start of new
development projects was postponed due to uncertainties. Even so, the numberof inquiries for DX-related projects is increasing, and we are actively working onthem.
 In the public sector, projects are expanding for those related to the My Number
system and infrastructure building, contributing to an increase in orders. We are
actively tapping DX-related projects as well.
 In the distribution/services area, we strengthened the commissioned
development businesses and promoted maintenance and development services,featuring the use of our development laboratories. With these efforts, we aremaking progress in the acquisition of new projects.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

6

Point 2
IT Service Business

Net Sales 3,646 million yen

Year-on-year+13.2％

Operating Profit

Year-on-year

448 million yen +2.1％

 In the IT Service Business, sales and profits increased due to high added-value
projects for creating customer workstyles, such as mobile network building, as
customers accelerate their introduction of cloud solutions and their introduction of
IT support to assist their business operations.
 We strengthened our alliances with manufacturers and developed new customers,
using services such as IT training and security services for facilitating telework asa sales hook.
Business Solution Business

Net Sales

Year-on-year

5,495 million yen ▲1.9％

Operating Profit

Year-on-year

404 million yen ▲19.5％

 Sales decreased due to a decline in renewal demand for Windows 7-based
computers and telework demand in reaction to their high growth during the same
period of the previous year. Even so, the system integration business expanded
primarily due to the building of security and VDI environments and HCI projects.
 Through collaboration with DX Promotion Department, a department integrated at
the beginning of the fiscal year, we received orders for a project on transition to thecloud environment with an eye toward digitization, as well as one on systemdevelopment.
 We expanded the number of high added-value one-stop service projects over what
we had envisioned in the roadmap in various areas including the introduction of IT
equipment, infrastructure building, system development, maintenance andoperation.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

7

Point 3
Cloud BusinessYear-on-year

Net Sales 375 million yen +37.8％

Year-on-year

Operating Profit 67 million yen +174.7％

 The number of inquiries for Canbus increased as companies shifted
their operation to data-driven ones with an eye on a post-COVID19 society.
 Sales of Cloudstep remained strong, reflecting an increase in thenumber of inquiries from companies that were considering therebuilding of groupware suitable to teleworking.
Overseas Business

Net Sales

Year-on-year

40 million yen ▲16.6％

Year-on-year

Operating Profit ▲3 million yen ▲8 million yen

 Inquiries and orders received from U.S.- or Japan-based
companies increased in conjunction with projects for theestablishment of original cold chain services and smart factories
that use AI and IoT (LoRa).
 Inquiries and orders for projects on the development between
Japanese companies in Silicon Valley and start-ups.
 Output by our engineers is high, and customers are in theprocess of migrating operations from competitors to Systena. We
launched operations in Dallas, Texas as well.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

8

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

1Q Fiscal 2021
AmountSales distribution
ratio

1Q Fiscal 2020
AmountSales
distribution
ratio

YoY rate
Amount ofchangerate ofchangeSolution
Design

4,753

31.0％

4,660

31.4％

92

2.0％

Framework
Design

1,136

7.4％

1,151

7.8％

▲15

▲1.4％

IT Service

3,646

23.8％

3,222

21.7％

424

13.2％

Business
Solution

5,495

35.8％

5,600

37.7％

▲104

▲1.9％

375

2.4％

272

1.8％

102

37.8％

Overseas

40

0.3％

49

0.3％

▲8

▲16.6％

Investment
Incubation

40

0.3％

45

0.3％

▲4

▲10.1％

Adjustment

▲157

▲1.0％

▲146

▲1.0％

▲11

―

Total

15,331100.0％

14,856100.0％

475

3.2％

Cloud

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

9

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

1Q Fiscal 2021
Amount

1Q Fiscal 2020

YoY rate

Profit ratio

AmountProfit ratio

Amount ofchange59

rate ofchangeSolution
DesignFramework
Design

695

14.6％

636

13.6%

153

13.5％

172

15.0％

IT Service

448

12.3％

439

13.6％

Business
Solution

404

7.4％

502

9.0％

Cloud

67

18.0％

24

9.0％

42

174.7％

Overseas

▲3

▲9.0％

5

10.7％

▲8

―

▲12 ▲29.5％▲15▲33.5％

3―

Investment
Incubation
Adjustment
Total

9.4%

▲18 ▲10.9%92.1％▲97 ▲19.5％

0

▲0.3％

―

―

0

―

1,755

11.4％

1,765

11.9％

▲9

▲0.6％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

10

Financial Results 1Q（Consolidated）
Composition of Net Sales and Operating Profit by Segment

Cloud

Net sales¥15,331ｍil

2.4%

Overseas

0.3%

Investment &Incubation

0.3%

23.1%

31.0%

35.8%
Framework
DesignIT Service

23.8%
Adjustment

3.9%

Business
Solution

Solution
DesignBusiness
Solution

Cloud

Operating profit¥1,755ｍil

Solution
Design39.6%

IT Service

25.6%

7.4%

Framework
Design8.7%▲1.0%

Overseas▲0.2%
Investment & Incubation ▲0.7％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

11

Earnings Forecast for
Fiscal 2021
(Consolidated, Full Year)

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

12

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

Fiscal 2021
Earnings Forecast
Profit ratio

AmountNet
sales

Fiscal 2020

66,100

Amount－ 60,871

YoY rate

Profit ratio

Amount ofchangerate ofchange－ 5,228

8.6％

Operatingprofit8,300 12.6％

8,006 13.2％

293

3.7％

Ordinary
profit8,004 12.1％

7,507 12.3％

496

6.6％

5,371

4,974

396

8.0％

Profit attributableto owners ofparent8.1％

8.2％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

13

1-1. Solution Design Business
Outlook for this Period

compared with previous period

Net Sales 20,750 million yen + 8.3％

compared with previous period

Operating Profit 3,870 million yen +6.8％

Selection and concentration. We will focus on business developmentin growth areas. We aim to create high value-added business areas.
1. Actively focusing on businesses development in growth areas

 Actively cultivate new markets in highly prospective areas such as
MaaS, 5G, the GIGA School Initiative, AI , IoT and Digital
Transformation.

2. Shifting to the provision of total solutions

 Support customers’ services at all processes from planning to
implementation. Provide added value to customers and establish ahighly profitable business structure by expanding the scope ofservices from conventional designing, development and evaluation
services to planning and implantation.

3. Cultivating new markets and new business areas

 Aim to create new business by enhancing digital transformation(DX) related services.

*As of this fiscal year ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the
Solution Design Business segment has been reassigned to the IT Service Business segment; and IDY (results forecast for this fiscal year: net sales 342 million yen,operating profit 16 million yen), which was also included in the Solution Design Business segment, has been reassigned to the Business Solution Business segment.
Results for each segment for the previous year (the year ended March 31, 2021) have been rearranged according to these changes in order to calculate YoY
comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

141-2．Solution Design Business(Examples of DX service initiatives at Osaka branch)
Introduced at: 32 companies
Cloud attendance
management service•••

Flexible customization
Cost-effective
Complete support for
introduction / installation

Hyogo / Osaka / Ehime

Healthcare
16
hospitals

16
Small &
mediumsizedcompanies

With the enforcement of the Act on the Arrangementof Related Acts to Promote Work Style Reform there isa need for strict digital management of working hours(paper or Excel-based management is not acceptable)

Introduced at: 4 companies

Introduced at: 4 companies
Data management groupware••

3
Small &
mediumsizedcompanies

Support for mobile use
Enhances mutualcommunication
Visualizes businessprocesses•

Nov 30, 2020
release1
Communic
ationssubsidiary

Unmanned hospitality receptionNov 30, 2020
releasesystem•••Seekingtoenabletargetmanagement,
visualization of business processes and close
communication even in the case of home-based
telework

3
Small &
mediumsizedcompanies

Centralized visitor
management
Chat automatednotifications
Easy installation

1
Real estate
construction
company

Seeking to reduce costs through improved
business process efficiency of sales management
departments

Released on May
31, 2021

NEW Systena’s own products and services

Osakabranch: 2 productsInternal currency
systemCustomerissues

Kobe Innovation Lab
Matsuyama
Innovation Lab

Expandingproprietaryproducts andservices

・Visualizes gratitude
・ Achieves real-timetransactions
Need to increase
employees’
motivation

In
progress

・ Improves productivity
・ Facilitate technologicalcommunication
Need to turn
companies’ knowhow into assets

In
progress

Osaka Prefecture
Proprietary
We aim toincrease our corporate value by resolving
products&
the issuesof companies
and local governments inservices
the Kansai
region using our own proprietaryproducts and services

Online encyclopedia

We are participating in
the Smart City Partners
Forum
Seeking to become a smart health city, engage inurban development that is kind to elderly people,
apply the Monozukuri 2.0 (“manufacturing 2.0”)
paradigm, revitalize the inbound / tourism industry,
and implement urban development for smoothmobility and ease of child raising

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Matsuyama, Ehime Prefecture
We are planning to open a location in
Matsuyama (June 2021)
We will aim to resolve issues throughindustry-academic collaboration with the
Matsuyama government in Ehime

Seeking to utilize IT to limit the decrease inpopulation due to an outflux of young people,
resolve succession issues in farming, and develop
10,000 IT-related human resources15

2. Framework Design Business
Outlook for this Period

compared to previous period

Net Sales 5,121 million yen +13.8％

compared to previous period

Operating Profit 867 million yen +12.2％

We will invest our energies into growth areas and aim to maximize orders
through both existing business operations primarily in the financial sector andnew operations in new business domains.

1. Maximizing existing businesses and expanding into growth areas

 Continuation and horizontal expansion of projects centered on insurance/financial systems,
business systems and infrastructure building.

2. Actively securing orders for digital transformation (DX) projects

 We will enhance our organizational structure in terms of both sales and technology, inorder to secure orders for renewals of core mission-critical systems and infrastructurebuilding (cloud-based) projects.

3. Expanding service-type business operations

 We will seek to expand and enhance our services, beginning with commissioned
development, business process support and cloud services. We will expand orders byenhancing coordination between divisions and service venders.

*As of this fiscal year the new services area (results forecast for this fiscal year: net sales 1,000 million yen, operating profit 110 million yen), which was
included in the Framework Design Business segment, has been reassigned to the Business Solution Business segment. Results for each segment for theprevious year (the year ended March 31, 2021) have been rearranged according to these changes in order to calculate YoY comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

16

3-1. IT Service Business
Outlook for this Period

compared to previous period

Net Sales 15,383 million yen +12.6％

compared to previous period

Operating Profit 1,950 million yen +4.1％

The number of customers advancing digital transformation (DX) and companies
engaged in further workstyle reforms is increasing in all industries. We willconcentrate our energies into responding to the following, for which there is
growing demand.
• Rebuilding / optimization of existing IT environments• Expanding IT support services for companies creating new businessmodels
1. Increasing efforts in areas with high added-value projects
Based on know-how developed in providing personnel mobilization-type services, we will focus on providing
services that are more directly linked to customer business growth and speedup; including high addedvalue contract-type services such as IT support, IT infrastructure and PMO, as well as assessment andconsulting services utilizing our track record in catering to customer needs in response to environmental
changes.

2. Expanding software quality assurance (QA) services

We will focus on expanding existing business and developing new business in the enterprise segment,utilizing quality assurance (QA) services developed in the entertainment segment, where there are also
growing number of orders for content such as social games and net business.

3. Developing new customers and creating new business models


We will provide new services through investment in human resources development and alliances with groupcompanies and partner companies; and enhance sales and services by expanding the scope of support,
strengthening inside sales, and opening regional business bases.

*As of this fiscal year the subsidiary ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the Solution Design
Business segment, has been reassigned to the IT Service Business segment. Results for each segment for the previous year (the year ended March 31, 2021) have been rearranged according
to these changes in order to calculate YoY comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

173-2．IT Service Business (Aggressive Synergies)(1) Exchange ofhuman resources(2) Expansion ofservices

Fields forTokyoto Business Service

Aggressive expansion
Expand range

Layer up(3) Expand
locations(4) Enhancesales

New value creation [New services / new customers / expansion of locations / strengthening alliances]
In addition to expansion in the entertainment segment including social games andnet business, ProVision will aim to utilize Systena’s business knowledge to expand
the enterprise segment.

As a new initiative aiming to establish a structure creating jobs for 200 employeeswith disabilities, Systena will expand operations by employees with disabilities andTokyoto Business Service support/consulting services for the customers of Systena and ProVision.
Systena will expand quality verification and public bidding-related services
comprehensively, tackle the challenges of establishing regional business locations,and aim to expand PMO services.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

18

4-1. Business Solution Business
Outlook for this Period

compared to previous period

Net Sales 23,835 million yen +6.7％

Changed name from
"Solution Sales"

compared to previous period

Operating Profit 1,634 million yen +9.0％

Despite limitation of investment due to the COVID-19 pandemic, we are
expanding efforts toward digital transformation (DX) and the normalization of
telework.
Expanding existing businesses and shifting our focus to growth areas

1. Investment in expanding the solutions segment
 Expand the service menu and expand sales to the profit division
2. Enhance initiatives aimed at hybrid environments
 Bolster response for hybrid environments and alliances withcloud partners
3. Expanding digital transformation (DX) related services
 Expanding our service menu, including RPA and data integration tools

4. Strengthen earnings capacity through expanded sales of services

 Provide ALL Systena's services on a one-stop basis*As of this fiscal year the new services area (results forecast for this fiscal year: net sales 1,000 million yen, operating profit 110 million yen), which was
included in the Framework Design Business segment; and the subsidiary IDY (results forecast for this fiscal year: net sales 342 million yen, operating profit
16 million yen), which was included in the Solution Design Business, have both been reassigned to the Business Solution Business segment. Results foreach segment for the previous year (the year ended March 31, 2021) have been rearranged according to these changes in order to calculate YoY
comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

194-2．Business Solution Synergies
We aim to resolve customer ICT issues by providing products as a one-stop
service, from introduction to system building, development and support.

● Product Sales Business● DX BusinessEnterprise sales of IT-related
products and services including
servers, PCs, peripheral devices,
software and Microsoft 365
Lineup:1,200 companies
2 million items
Strengthening allianceswith each firm

•
•
•
•
•
•

Total
Solutions● Solution Business• Server virtualization / HCI
infrastructure• VDI solutions• Authentication infrastructure solutions• Storage solutions• Security solutions• Backup business continuity solutions

Service

RPA solutions
Database migration
Modernization
Cloud solutions
BI solutions
SoC / managed services

Strengthening alliance with Microsoft andexpanding and enhancing solutions menu

● Collaboration with IDY

Expanding service menu by strengthening
alliances with hardware manufacturers andother companies• 5G edge gateway• M2M solutions• Network connection services

Selling IDY products and expanding andenhancing solutions menu

Supporting product / service lifecycles for over 10,000 customers
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

20

5. Cloud Business
Outlook for this Period

compared to previous period

Net Sales 1,500 million yen +1.1％

compared to previous period

Operating Profit 100 million yen ▲66.7％

The number of inquiries is on the increase, reflecting an
improvement in operations and the establishment of internal
infrastructure with an eye on a post-COVID-19 society. We aremaking proactive advance investments in our own services,primarily Canbus., with the aim of deploying these services in thefield of digital transformation (DX).
1. Advance investment to enhance the awareness of Canbus
and strengthen sales promotions
 We will strengthen alliances actively and develop new business
partners while simultaneously improving services so that we canreadily engage in digital transformation initiatives.
2. Enhancing services through advance investment
 To enable the realization of various services from the perspective of
DX platforms, we will strengthen human resources to improve our
support capabilities and achieve an increased level of customer
satisfaction while simultaneously enhancing product power.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

21

6. Overseas Business（Systena America Inc.）
Outlook for this Period

compared to previous period

Net Sales 230 million yen +22.2％

compared to previous period

Operating Profit 8 million yen +6.1%

1. Sales expansion of AI/IoT services in collaboration with ONE Tech
Inc. and ONE Tech Japan Inc.
 We will expand our sales to the same industries where we have introduced
services.
 We will promote sales of original AI- or IoT (LoRa)-based services for cold
chains and smart factories.

2. Technical support for the development of PoC between Japanesecompanies in Silicon Valley and start-ups.
 Acquisition of projects for the development of PoC between Japanesecompanies in Silicon Valley and start-ups, and utilize offshore development in
Vietnam

3. Expanding the scope of orders in businesses with existingtransactions
 The process of customers transferring jobs that were previously entrusted tocompetitors to Systena is accelerating, due to the high output quality、flexible
customer-oriented response and proposal-making capabilities of Systena
engineers.

4. Launching sales of Canbus.

 We will proceed with the U.S. launch of Canbus, Systena’s own service with asteadily improving sales track record in Japan.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

22

Earnings Forecast for the Full Year (Consolidated)

Sales by Segment

Fiscal 2021
Earnings Forecast

Fiscal 2020

（in millions of yens）

YoY rate
Amount ofrate of changechangeAmountSales distribution
ratio

AmountSales distribution
ratio

20,75031.4％

19,163

31.5％

1,586

8.3％

Framework
Design

5,121

7.7％

4,498

7.4％

622

13.8％

IT Service

15,383

23.3％

13,662

22.4％

1,720

12.6％

Business
Solution

23,83536.1％

22,343

36.7％

1,491

6.7％

1,500

2.3％

1,484

2.4％

15

1.1％

Overseas

230

0.3％

188

0.3％

41

22.2％

Investment
Incubation

211

0.3％

178

0.3％

32

18.4％

Adjustment

▲930

▲1.4％

▲647

▲1.0％

▲282

―

66,100 100.0％

60,871100.0％

5,228

8.6％

Solution
Design

Cloud

Total

*As of this fiscal year the subsidiary ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the Solution Design Businesssegment, has been reassigned to the IT Service Business segment; the subsidiary IDY (results forecast for this fiscal year: net sales 342 million yen, operating profit 16 million yen), which was
included in the Solution Design Business segment, has been reassigned to the Business Solution Business segment; and the new services area (results forecast for this fiscal year: net sales 1,000
million yen, operating profit 110 million yen), which was included in the Framework Design Business segment, has been reassigned to the Business Solution Business segment. Results for eachsegment for the year ended March 31, 2021 have been rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

23

Earnings Forecast for the Full Year (Consolidated)

Operating profit by Segment
Fiscal 2021
Earnings Forecast

Fiscal 2020

（in millions of yens）

YoY rate

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

3,870

18.7％

3,624

18.9％

245

6.8％

867

16.9％

772

17.2％

94

12.2％

IT Service

1,950

12.7％

1,873

13.7％

76

4.1％

Business
Solution

1,634

6.9％

1,499

6.7％

134

9.0％

100

6.7％

300

20.2％

8

3.5％

7

4.0％

0

6.1％

Investment
Incubation▲142▲67.3％▲71▲39.9％▲70―

Adjustment

13

―

―

―

13

―

8,300

12.6％

8,006

13.2％

293

3.7％

Cloud
Overseas

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

rate ofchange▲200 ▲66.7％

24

Earnings Forecast
Composition of Net Sales and Operating Profit by Segment
Net sales
Cloud 0.3% ¥66,100mil
Overseas

Investment &Incubation

0.3%

1.2%

2.3%

Business
Solution

Solution
DesignBusiness
Solution

31.4%

36.1%

Framework
Design7.7%

IT Service

19.7%

Solution
Design46.6%

IT Service

23.5%
Framework
Design

10.4%

23.3%
Adjustment

Cloud

Operating profit¥8,300mil▲1.4%

Overseas
0.1％
Investment & Incubation ▲1.7%
Adjustment
0.2%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

25

Systena GroupManagement Objectives
and Basic Policy

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

26

(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 Systena Corporation All Rights Reserved.

27

(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 Systena Corporation All Rights Reserved.

28

Systena
medium-term
management plan

（Fiscal 2019～ Fiscal 2024）

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

29

Medium-Term management plan
Major Management Policy

Improve Productivity with Data-Driven
Management
 We will implement high-precision cost pricemanagement and grasp real profits and losses
at an early stage by utilizing IT business
management systems built using our proprietary
Systena-developed platform Canbus.
 Based on visualization of management data andmanagement information enumerated using
predictive AI, we will seek to thoroughly improve
productivity with the aim of maximizing profits.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

30

Medium-Term management plan
Strategies(1) Automotive(2) “Cashless”/payment settlement(3) Robotics/IoT/RPA/cloud(4) Own-brand products and services

We will focus management
resources on the fields
expected to experience themost growth over the next
decade.

Targeted Management Indicators and Outlook for Fiscal 2024
(hundreds of millions of yen)

KPI

2019/32020/32021/32022/3

Earnings Forecast

2025/3target59,74264,55260,871

66,100101,000

6,902

8,163

8,006

8,300

15,200Operating profit
margin

11.6％

12.6％

13.2％

12.6％

15.0％

Operating profit
per employee

2.16

2.32

1.99

1.70

24.6％

25.5％

20.6％

19.6％

Net Sales
Operating Profit

ROE

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

（1.7x）（2.2x）

2.60(20％ increase)

25％
31

１.Solution Design Business

We will focus on net business, for which there is an increase in social demand due to the impact of
COVID-19, with the aim of industry expansion. We will also be selecting and focusing on in-car business,
which is currently undergoing an industry-wide transformation, with a view to establishing long-termcompetitiveness.
There is an increasing demand for digital transformation as a result of customers transforming theirbusiness models and processes. We will aim to expand business operations not only through system
integration but also through the provision of our own proprietary services.
2020

In-vehicle

2021

Infotainment

社会インフラ / プロダクト

Communication
robots2025

Autonomous driving
Safety solutions

6.5 billion yen

5GNet business

Olympic related

10.2 billion yen

Educational reform

DXサービスWorkstyle reform

Industrial robots

8.0 billion yen

5G-related services“Cashless”/payment settlement

Lifestyle20.0 billion yen

Digital transformation (DX)Open source utilization

FY2019FY2020Net Sales: 21.2
billion yen

Net Sales: 22.9
billion yen

Net Sales: 23.8
billion yen

Operating Profit:
3.7 billion yen

Operating Profit:
4.0 billion yen

Operating Profit:
4.1 billion yen

State of progress

2024

Connected cars

Settlement terminals

800 million yen

FY20182023

MaaS

Car sharing

2.7 billion yen

2.3 billion yen

2022

AI and RPA

5.0 billion yen

FY2021 outlook

FY2024 target

Net sales growth of 1.8x andoperating profit growth of 1.9x
Net Sales: 20.8
billion yen
Operating Profit:
3.9 billion yen

Net Sales: 39.5
billion yen
Operating Profit:
7.1 billion yen*As of the year ending March 31, 2022 the subsidiary
ProVision, which was included in the Solution Design Businesssegment, has been reassigned to the IT Service Businesssegment; and the subsidiary IDY, which was also included in
the Solution Design Business segment, has been reassigned
to the Business Solution Business segment. Results for eachsegment for the year ending March 31, 2022 onward havebeen rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

32

2. Framework Design BusinessIn the Framework Design Business we will
Deploy know-how on financial systems development while also aiming to achieve transformations
toward responding to DX
Proactively develop both new and existing customers
Offer total support including development, infrastructure and maintenance by enhancing our frameworks
for undertaking commissioned development.
Create new growth engines for the DX era and deploy them in SaaS utilization development
Insurance

Expand segments with existing customers, respond todigitalization needs, renew core systems, and acquire
integrated response projects

Banking

Socialinfrastructure

PublicsectorDistribution
services

Numerical
targets

Data utilization

Renewal of coresystems

Shifting away fromhost-based systems

UI improvement

Cloud

Agile

CI/CD

SaaS utilization

Expand new segments by deploying finance-related
know-how, and aim to maximize with DX-related
development
Finance business (existing)
19.3

Sales 2.5

billion25.3+20%
increase

3.0
billion

FY2018FY2019FY2020Net Sales: 5.3
billion yen

Net Sales: 5.8billion yen

Net Sales: 5.1
billion yen

Operating Profit:
840 million yen

Operating Profit:
1.06 billion yen

Operating Profit:
860 million yen

State of progress

New business domains

DX-related business(public, etc.)

19.3
Sales 0.5
billion+4 times

25.3
increase
2.0
billion

Sales 0.0

FY2021 outlook
Net sales growth of 1.7x andoperating profit growth of 1.8x
Net Sales: 5.1
billion yen
Operating Profit:
870 million yen

19.3

billionNew

25.3 development

1.5
billionFY2024 target
Net Sales: 7.5
billion yen

Operating Profit:
1.25 billion yen*As of the year ending March 31, 2022 the new services area, which
was included in the Framework Design Business segment, has beenreassigned to the Business Solution Business segment. Results for eachsegment for the year ending March 31, 2022 onward have beenrearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

33

3. IT Service Business
Create and implement new business models with customers, continue to attempt new challenges based on
experience and past performance, and become a transformation group that provides services that lead directly tobusiness growth and speedup for companies.

•••

We will focus on high added-value contract-type services such as IT support, IT
infrastructure and PMO, and assessment and consulting services, based on know-how
developed through other projects.
In addition to expanding software quality assurance (QA) services, social games, net businessand other BtoBtoC services in the entertainment segment, we will also expand the BtoB
enterprise segment.
We will also enhance synergies with Systena Group services, locations and human resources.

Expanding business fields
Alliances / enhancing new services /expanding locations
IT support
services
FY2018

Infrastructureservices

PMO
services

FY2019FY2020Net Sales: 7.8
billion yen

Net Sales: 8.7
billion yen

Net Sales: 9.4
billion yen

Operating Profit:
1.1 billion yen

Operating Profit:
1.3 billion yen

Operating Profit:
1.4 billion yen

State of progress

Qualityverification
services• We aim to increase net sales for contract-typeservices such as IT support, IT infrastructure and
PMO from the current level of 4.5 billion yen to 8.0
billion yen.
•

We aim to increase net sales for quality verification
services from the current level of 3.3 billion yen to 6.0
billion yen.

FY2021 outlook

Increase number ofEnhancing IT services
czustomers
Net sales growth of 2.1x andoperating profit growth of 3.0x

Net Sales: 15.4
billion yen
Operating Profit:
2.0 billion yen

FY2024 target
Net Sales:
18 billion yen
Operating Profit:
3.55 billion yen*As of the year ending March 31, 2022 the subsidiary ProVision,
which was included in the Solution Design Business segment,
has been reassigned to the IT Service Business segment.
Results for each segment for the year ending March 31, 2022
onward have been rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

34

4. Business Solution Business
Provide solution services aimed at solving management issues faced by customers (suchas improving productivity, reducing costs, and bolstering security) using Systena’s overallsales capabilities in order to create and expand added-value business, and transform into
an ICT partner that supports customers’ business operations; and link thistransformation on to a continuous improvement in sales and profits.

Business
Strategy

Numerical
Targets

FY2018Bolster response to hybrid environments

Expand DX business services
Expand synergies and services from collaboration between SystenaGroup companies and divisions

Existing business

Service business

FY2024FY2024

DX business
FY2024+40%
increase+180%
increase+350%
increase

FY2018FY2018FY2018FY2019FY2020Net Sales: 24.0
billion yen

Net Sales: 25.9
billion yen

Net Sales: 21.4
billion yen

Operating Profit:
1.2 billion yen

Operating Profit:
1.6 billion yen

Operating Profit:
1.4 billion yen

State of progress

FY2021 outlook

FY2024 target

Operating profit of 6％, net service sales of
11.4 billion yen and percentage sales of 30%
Net Sales: 23.8
billion yen
Operating Profit:
1.6 billion yen

Net Sales: 35.39
billion yen
Operating Profit:
2.45 billion yen*As of the year ending March 31, 2022 the new services area, which was
included in the Framework Design Business segment, and the subsidiary IDY,
which was included in the Solution Design Business segment, have beenreassigned to the Business Solution Business segment. Results for each segment
for the year ending March 31, 2022 onward have been rearranged according tothese changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

35

5. Cloud Business We will seek to accelerate subscription model business with Canbus., our DX
platform for driving digital transformation.
 We will aim to achieve growth in high added-value businesses with Cloudstep and
Canbus., in order to support the transformation of business processes throughtelework and other forms of workstyle reform.
2020

2021

2022

Workstyle reform

2023

2025

2024

Digital transformation (DX)AI and RPA

Measures against personnel shortages

New Services
A DX platform that enables anyone
to create and operate DX apps easily,
regardless of their level of IT literacy.
It will solve corporate management
issues such as DX and workstylereform.

FY2018A piece of groupware that can be used
as an addon for Google Workspace andOffice365. It facilitates improvements
in enterprise productivity and greater
workstyle diversity.

FY2019FY2020Net Sales: 1.1
billion yen

Net Sales: 1.4
billion yen

Net Sales: 1.5
billion yen

Operating Profit:
200 million yen

Operating Profit:
200 million yen

Operating Profit:
300 million yen

State of progress

We will create newservices from R&D,
primarily in areas such as
IoT, AI and security.

FY2021 outlook
Achieve targets in global business, armed withown-brand products and services and content
based in Japanese culture

FY2024 target
Net Sales: 1.97
billion yen
Operating Profit:
500 million yen

Net Sales: 1.5 billion
yen
Operating Profit:
100 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

36

6. Overseas Business（Systena America Inc. ） We will aim to expand joint orders with One Tech in the ever-growing field of edge AI,
based on technical support for Japanese-owned companies in the US.
 We will also seek to establish a robust business base in terms of sales and profits, throughtech support for Japanese-owned companies, as well as PoC and incubation support services
in the US.

Business
Strategy Bolster technical support for Japanese-owned companies in the U.S.
 Joint IoT project orders with One Tech utilizing edge AI, in the US andglobally

Technical support

EdgeAI / IoT
FY2024FY2024

Key fields
FY2018FY2018FY2018FY2019FY2020Net Sales: 100
million yen

Net Sales: 100
million yen

Net Sales: 190
million yen

Operating Profit:-30 million yen

Operating Profit:-20 million yen

Operating Profit:
7 million yen

State of progress

FY2021 outlook

FY2024 target
Unearh the next newtechnologies and markets

Net Sales: 230
million yen
Operating Profit:
8 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Net Sales: 640
million yen
Operating Profit:
250 million yen

37

７．Collaboration with Overseas Business
Collaboration

Systena America

Collaboration

ONE Tech
Strongkey

Japan
Sales activities
Business Solution
Group

System building anddeployment support

Technical support

DX Design GroupONE Tech Japan Inc,*

In investment incubation businesses, we will aim
to achieve net sales of 400 million yen andoperating profit of 100 million yen by FY2023.

SupportDevelopment

IT Management
Business Group

Solution Design GroupWe will aim to consolidate the strengths of each division anddeliver these services in Japan with an “All Systena” approach.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

38

Earnings Forecast for Fiscal 2023
Composition of Net Sales and Operating Profit by Segment

Overseas
Cloud

Net sales¥101bil

Operating profit¥15.2bilInvestment &Overseas
Incubation
0.4% Cloud 1.6%

0.6%

1.9%

Investment &Incubation

0.7%

3.3%

Business
Solution

Solution
Design

36.2%

40.6%

Business
Solution

15.1%

IT Service

15.5%

IT Service

11.0%

9.3%

Framework
DesignSolution
Design

53.3%

10.5%
Framework
DesignCopyright ⓒ 2010 Systena Corporation All Rights Reserved.

39

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

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 Systena Corporation All Rights Reserved.