April 28, 2022
To: All Concerned Stakeholders
Company:

ID Holdings Corporation

Representative:

Masaki Funakoshi,
President and Representative Director(Securities Code: 4709; TSE Prime)

Inquiries:

Yasuhiro Araki, General Manager,
Head of Corporate Strategy Department

TEL:+81 3-3262-5177

Notice of Formulation of the Mid-Term Management Plan (FY2022 – FY2024)

We are pleased to announce the formulation of the three-year Mid-Term Management Plan, Next 50 Episode II:
Ride on Time, starting from the fiscal year ending March 31, 2023 (FY2022), as follows.

1. Objectives of the Mid-Term Management Plan
In the previous Mid-Term Management Plan, the ID Group set forth our goal of upgrading our services to makethe most of digital technology, and thus built a strong foundation for future growth by training engineers with highexpertise in digital technology and making significant enhancements to our services in the key areas of development,
operations, and IT infrastructure.
Under the new Mid-Term Management Plan, built upon the business foundation established in the previous MidTerm Management Plan, we are committed to defining the technological areas with high client needs, supporting the
DX promotion by our clients in collaboration with our partners, and training our mid- to senior-level engineers andinnovative leaders. We aim to develop proprietary solutions in the future growth areas of cloud computing andcybersecurity, enhance the functionality of our operations by revamping our internal core system, and solving social
issues through our business activities.
In the fast-changing IT industry, we strive to be an indispensable IT engineering partner that firmly and accurately
understands current trends and brings about an exciting (Waku-Waku) future for everyone.

2. Outline of the Mid-Term Management Plan
(1) Name : Next 50 Episode II: Ride on Time
(2) Period : Fiscal year ending March 31, 2023 (FY2022) to the fiscal year ending March 31, 2025 (FY2024)(3) Basic Themes : Develop business models in line with our DX portfolio
Strengthen partnerships to create greater value-added service
Upgrade management divisions and reallocate resources to the business divisions

1

(4) Basic Strategies : ①IT Service Strategy ②Human Resource Strategy③New Normal Strategy ④SDGs Strategy(5) Numerical Targets(*Considering the implementation of M&A)
FY2021Results

Net sales
Operating income
Operating income
marginEBITDAEBITDA margin

FY2026*
Targets for the next 5
years¥27.8 billion¥1.86 billion
6.7%

FY2024
Targets for this MidTerm ManagementPlan¥32.0 billion¥2.55 billion
8.0%¥2.49 billion
9.0%¥3.1 billion
9.7%¥4.0 billion
10.0%¥40.0 billion¥3.2 billion
8.0%

Please refer to the attached document for details.
End

DISCLAIMER
This English translation is only for reference purpose. When they are any discrepancies between original
Japanese version and English translation version, the original Japanese version always prevails.

2

From April 2022 to March 2025

Mid-Term Management Plan
Change or Die!

Next 50 Episode II: Ride on Time

Scan the code toaccess our website

Prime Market, Tokyo Stock Exchange
Securities code: 4709
©2022 ID Holdings Corporation. All Rights Reserved.

1

Review of the Previous Mid-Term Management Plan: Next 50 Episode I (Summary)

Net sales hit a record high, though missing the target, andoperating income margin achieved the target(¥ million)

Plan for 2022.3(Prepared in Apr. 2021)

2022.3

Diff.

Ratio

Change or Die!

Net sales

30,00027,805-2,195-7.3％

Operating income

1,900

1,869

-31

-1.6％

Operating income
margin6.3%

6.7%+0.4PT―

Operating income margin
目標
Plan

Net sales

目標
Plan

実績
Result(¥ million)

10.0%

30,00030,00026,80026,37727,500Operating income margin before
のれん償却前営業利益率
amortization of goodwill

8.8%
7.9%

27,80525,766実績
Result

8.3%
6.7%
6.2%

6.0%

6.7%
6.3%

6.2%
5.3%
2.0%
15,0002020.32021.32022.3

Despite the contributions of a subsidiary acquired in theprevious fiscal year, the company was unable to reach its
final target due to the inability to offset the impact of areactionary drop following the completion of a major project
and the reduced investment in systems by some customers.

2020.32021.32022.3Operating income margin exceeded thetarget by 0.4 PT due to the improvements
in productivity and reduction in SG&A
expenses.

©2022 ID Holdings Corporation. All Rights Reserved.

2

Review of the Previous Mid-Term Management Plan: Next 50 Episode I (Policy)

In general, each policy achieved its target and established a strong
foundation for future growth
Developmentof anUpgraded
Business
Model basedon Digital
Transformation (DX)

Change or Die!

Developmentof a Futureoriented
Corporate
Culture1.

Obtained DX certification based on METI guidelines in recognition of our efforts infurther promoting DX

2.

Achieved ¥12.6 billion in DX sales for FY2021 compared to the ¥10.5 billion target

3.

Received 1,392 DX certifications compared to the 3-year target of 1,165

4.

Opened the Cloud Management Center and launched ID-Cross, a multi-cloud service

1.

Implemented a human resource management system to better visualize BSC
management and human resource skills

2.

Promoted the New Normal Projected and transferred part of the HQ functions to Sanin

3.

Reorganized the group to implement a flat organizational structure

4.

Implemented an internal proposal system to create new business models and improve
operations

Promotionof ESG

方針③

1. Recognized as a “Company with Excellent Health and Productivity Management (White
500)” for the third consecutive year
2. Received a 3.5 stars in the Nikkei Smart Work Management Awards 2022 and3 stars in the Nikkei SDGs Management Awards 2022
3. Listed in Shukan Toyo Keizai’s “500 Companies That Lead Japan in the SDGs”
4. Established the Sustainability Committee and obtained the ISO 14001 Certification©2022 ID Holdings Corporation. All Rights Reserved.

3

Review of the Previous Mid-Term Management Plan: Next 50 Episode I (Summary)

Changes in customer environmentDouble-digit growth in DX -related
markets as client companies invest
more in digital technology
Increase in in-house production ofsystems by client companies
Intensifying shortages in IT humanresources

Recognizing the challenges
 Strengthen sales strategy and sales
structure with a focus on DX services
 Improve productivity by training DX
engineers and providing high value added services
 Improvement of high SG&A ratio

Realize a greater growth cycle by increasing corporate value and giving back to
our employees and business partners!※<Themes to be addressed>
Develop business models

1 in line with our DX portfolio
Strengthen partnerships to2 create
greater value-added3

Upgrade management divisions
and reallocate resources to thebusiness divisions

Increase incorporate value

Change or Die!

Direction of the new Mid-Term
Management Plan

Give back to
employees andbusiness
partners※Business partner ：IT vendors with whom we will collaborate on project execution©2022 ID Holdings Corporation. All Rights Reserved.

4

Direction for the New Mid-Term Management Plan

Capturing the current trends in DX investment andfurther expanding business through high value-added services■Mid-Term Management Plan
Breakthrough200!

I-vision 50

Next 50
Episode I
Awakening!

Grew to ¥26.5 billion

Record ¥27.8 billion

Net sales

Exceeded ¥20 billion■Basic Policy

Change or Die!

・Expansion of infrastructure
and cloud services
・BOO strategy

・Establish new growth areas

・DX strategy

・Utilize new technologies

・Foster future-oriented

・Reform business processes

New Mid-Term
Management Plan
Next 50
Episode Ⅱ

DX
field

corporate culture
・Promote ESG

Age of Cloud Computing

Age of Digital Transformation (DX)

NFT, Metaverse

Adding the DX field to thebase business, which is thefoundation of our earnings.
Software development,
System operation
management

2013.4 ～ 2016.3

RPA, AI, IoT,
big tech
Cybersecurity,
Cloud
Base
business

2016.4 ～ 2019.3

2019.4 ～ 2022.3

WEB1.0 /WEB2.0

2022.4 ～ 2025.3
WEB3.0※Base business includes system operation and management, software development, IT infrastructure, and cybersecurity.
©2022 ID Holdings Corporation. All Rights Reserved.

5

The Goals of the New Mid-Term Management Plan

Becoming an indispensable IT engineering partner that brings about
an exciting

future for our 5 stakeholders.

Together we will Ride on Time!

Percentage of DX sales

ClientChange or Die!

Provide highvalue-added
services

Stakeholder
Marketcapitalization¥25 billion

Sustained andstable dividend

Business
partner
Deepeningcollaboration in
the DX field

Society
Promoting SDGs

60%

Problemsolving
throughbusiness
activities

5% increase inunit price

Employee
Happiness©2022 ID Holdings Corporation. All Rights Reserved.

5% increase inannual income6Overview of the New Mid-Term Management Plan

Next 50 Episode II: Ride on Time
Realize a greater growth cycle by increasing corporate value andgiving back to our employees and business partners!

Change or Die!

2022.32025.32027.3※¥27.8
billion¥32
billion¥40
billion¥1.86 billion¥2.55 billion¥3.2 billion（8.0%）（8.0%）

Net
sales
OperatingincomeTargetvalue（6.7%）※Considering M&A implementation

1

3

Develop business models in line with our DX portfolio

2

Basic themes

4 Basic strategies

Strengthen partnerships to create greater value-added3

Upgrade management divisions andreallocate resources to the business divisions©2022 ID Holdings Corporation. All Rights Reserved.

7

The 4 Basic Strategies
Human Resource
Strategy

IT Service Strategy

Change or Die!

We are committed to defining
the technological areas withhigh client needs, supportingthe DX promotion by ourclients in collaboration with ourpartners, and developing
proprietary solutions targeting
key growth areas.

We aim to better optimize
and further enhance thefunctionality of our operations
by revamping our internal coresystem and advancing othermeasures. In addition, we willbuild a smart administrative
division, and strategicallyreallocate personnel to thebusiness division.

New Normal Strategy

In order to expand our DX
services and provide evenhigher value-added, we willfurther enhance our training
system and accelerate thedevelopment of our mid- tosenior-level engineers andinnovative leaders.

We strive for a virtuous cycle of“solving social issues” and“enhancing corporate value” bymaking progress in oursustainability initiatives throughour business activities.

SDGs Strategy©2022 ID Holdings Corporation. All Rights Reserved.

8

Ⅰ．IT Service Strategy（DX Portfolio）
Secure revenue from base business, and expand our support for DX promotion by our clients andproprietary solutions
DX Co-Creation

Create services with ourproprietary solutions

Sustainably create
value with our clients

Digitalsolution
HybridgrowthSupporting DX
promotion

Base business

Existing businessChange or Die!

Degree of Innovation

New business

Proprietary solution

Increase customer value
Operations(On-site)

Development(On-site)

Existing business support

SharedTasks

Supporting the further creation ofclient value by using DX technology

Smart
Operations※DX
Development※

New business support

Degree of
ClientInnovation◆Key client tasks ◆Strategic partner tasks ◆Business partner value enhancement◆Quality control ◆Global tasks※ Source: "Information Service
Industry White Paper 2021," p. 6, "DX
Business Portfolio," partially revised※1 Smart Operations：System operations utilizing automation tools, cloud, remote work, etc.
※2 DX Development : Software development utilizing AI, low code, cloud, etc.
©2022 ID Holdings Corporation. All Rights Reserved.

9

Ⅰ-1 DX Promotion Support Services

Supporting the DX promotion by our clientsby leveraging cutting-edge technology
DX service
Cloud

AutomationAI

Low code

Remote work

Consulting

Change or Die!

IT service
System operation
management

Softwaredevelopment

ITinfrastructure

Cybersecurity

Next-generation system operation management and software development utilizing innovative technology

Smart Operations

DX Development©2022 ID Holdings Corporation. All Rights Reserved.

10

Ⅰ-1 Introduction to Smart Operations and DX Development【Smart Operations】System operations utilizing automation tools, cloud, and remote work

☛Not only reducing costs, but simultaneously improving productivity and quality!

Traditional Operations
Manual labor

On-premise

Smart Operations
Automation

On-siteCloud

RemoteChange or Die!

【DX Development】 Software development utilizing AI, low code, cloud, etc.

☛ Build an AI support system to automate failure detection and analysis when failures occur
Failure history
database

Detectalarm
SearchMonitoring device

LearnedmodelsLearning

Operator©2022 ID Holdings Corporation. All Rights Reserved.

11

Ⅰ-2 Proprietary Solution Services

Expanding multi-cloud & cybersecurity to critical infrastructure areas

Multi-Cloud×

Security
TargetTargetChange or Die!

・Medical・Energy・Public sector

Installation, Managed services

Security

Identification of vulnerabilities,
Provision of information

Cyber Threat Retrospective Analysis

PC management

EDR※

RPA remote maintenance

Cyber defense exercises

・Manufacturing
・Construction
・Logistics
・Medical・Public sector

Advisory & Scoring※ EDR（ Endpoint Detection & Response ）is the enhanced endpoint monitoring to detect and respond to cyber attacks.
©2022 ID Holdings Corporation. All Rights Reserved.

IoT
OT
IT

12

Ⅱ．Human Resource Strategy (Training)

Strengthen training of mid- to senior-level DX engineers andproject personnel for future growth◆ Human resource training policy
・Establishment and operation of a Japanese-style job description system
・Utilization of human resource management system andstrategic human resource management
・Continuous training of the next-generation at every level（Reskilling）

Training budget

Change or Die!

・Fostering the engineers for Web 3.0（Metaverse, NFT※）¥600 million/3 years※Non Fungible Token

Reference：FY2021 result ¥180 million

 Increase the number of mid- to high-level DX engineers and expand the training of
project personnel and innovative leaders

1,600
1,063

1,240

1,420

200

250

150

200

110

150

54.9%

56.5%

59.2%

62.5%

100

70

50

584

700

840

1,000

2022.32023.32024.32025.3

DX Engineer (mid- to

DX技術者(中上級)
senior-level)02022.32023.3

DX Engineer (entry level)
DX技術者(初級)©2022 ID Holdings Corporation. All Rights Reserved.

2024.32025.313

Ⅲ．New Normal Strategy (Upgrading Management)

Reallocate members of management to business divisions toimprove operational efficiency and return profits to our employees

Change or Die!

Business
Optimization・Simplification

Decentralization of
HQ Functions

Strengthen business management
and planning functions

・Centralization of data
through the implementationof information sharing
infrastructure
・Elimination of
unnecessary processes anddigitization of operations

・Transfer some HQ
functions to the Sanin andoverseas offices
・Rearrange the functionsof HQ and shared offices

・Improve data
aggregation and utilization
through the renewal ofcore systems

FY2024

Numerical
Targets

Improvement in SG&A ratio
SG&A Department

17.3％※ →190 members

13.9％→ 140 members※FY2021 result©2022 ID Holdings Corporation. All Rights Reserved.

14

Ⅳ. SDGs Strategy- Our Approach to Sustainability (Value Creation Ecosystem) -Contribute to the solving of social issues and further increase corporate value
through our business activities
M a n a g e men t P h i l o s o p h ySocial issues

Change or Die!

Adv ancing
DX
Cyber attacks
ClimatechangeM a n a g e m e n t R e s o u r c es

An exciting

Intellectual
capitalfutureCreation ofenvironmental value

Acquire new competitive

Humancapitaledge and expand
business domain

Realization of an
eco-friendly society

Social capitalDX
Manufacturing
capitalDiversity
NaturalcapitalPriv acy

Creating value

Business activities

Creation ofsocial value

Implementation
Fostering a corporate

Creating new value

culture and climate

through the use offor self-initiated change

digital technology

Build a safe and securesocial infrastructure

Creation of
economical value

Build and maintainstrong relationships
with stakeholders

Financial
capitalCorporate GovernanceValue Creation Ecosystem©2022 ID Holdings Corporation. All Rights Reserved.

15

Ⅳ．SDGs Strategy- Sustainability Initiatives -Proactively address sustainability issues and create further value in three key areas

C r e a t i on o f
e n v i r on me n t a l v a l u e

C r e a t i on o fsocial value

Change or Die!

Reducin g ourenv ironm e n t al impact
Realizing arecy cl in g-o ri e n t e d s ociety
A pleasant work env ironm e n tCreation of

Human rights and div ersity

economic value

Coexist en c e and co -prosp e ri ty
with local communiti e s
Stabilizatio n ofsocial infrastr u c tu r e

Delivering value
with SX solutions※ SX solutions refer to the Group’s SDGs-related solutions©2022 ID Holdings Corporation. All Rights Reserved.

16

Key Numerical Targets for the New Mid-Term Management Plan
(Numerical targets 5-years later)

Net sales

2022.32023.32024.32025.32027.3¥27.8
billion¥29.0
billion¥30.4
billion¥32.0
billion¥40.0 billion※Taking M&A into accountOperatingincome(rate)

Change or Die!

DX Netsales（rate）EBITDA（rate）¥1.86
billion（6.7%）¥1.95
billion（6.7%）¥2.2 billion（7.2%）¥2.55 billion（8.0%）¥3.2 billion（8.0%）¥12.6
billion（45.6%）¥13.9
billion
（48%）

¥16.1
billion（53%）¥19.2 billion（60%）¥28.0 billion
（70%）

¥2.49
billion（9.0％）¥2.58
billion（8.9％）¥2.8 billion（9.2％）¥3.1 billion（9.7％）¥4.0 billion（10.0％）

450※ EBITDA = Operating income＋ Depreciation ＋ Amortization of goodwill
8.0%
400
350
304
320
290
278
300
7.2%
250
200
6.7%
6.7%
150
100
192
161
139
126
50
0

＋

2022.3 Result

2022.3実績

2023.3 Plan

2023.3目標

2024.3 Plan

2024.3目標

2025.3 Plan

2025.3目標

8.5%

400

8.0%8.0%
7.5%
Net sales
売上高

営業利益率
Operating income
7.0%

Business
expansion
through
M&A

2802026.3 Plan

2027.3 Plan

2026.3目標©2022 ID Holdings Corporation. All Rights Reserved.

marginDX Net sales
6.5%
6.0%

2027.3目標
17

(Reference) Key KPIs of the New Mid-Term Management Plan
2022.3Result2023.3
Plan

2024.3
Plan

2025.3Plan

DX Net sales¥12.6
billion¥13.9
billion¥16.1
billion¥19.2
billionDX Net sales ratio

45.6%

48%

53%

60%

Number of mid- to senior-level DX
certifications（Annual）

264

300

300

300

Number of mid- to senior-level DX
engineers584
people700
people840
people1,000
peopleHuman Resource
Percentage of female employees
Strategy

24.1%

26%

28%

30%

Percentage of female managers

16.9%

22%

25%

30%

Percentage of foreign employees

7.7%

10%

13%

15%

Improvement in SG&A ratio

17.3%

15.3%

14.6%

13.9%

Reduction in CO2 emissions

Down
3.7％

Down
15％

Down
18％

Down
20％

Down
17％

Down
17％

Down
20％

Down
23％

173
people200
people200
people200
peopleKey KPI

IT Service
Strategy

Change or Die!

New Normal
Strategy（from electricity use）
＊compared to FY2020 electricity use

SDGs Strategy

Reduction in paper consumption＊compared to FY2020

Participation in environmental
volunteer activities（Total number of people per year）©2022 ID Holdings Corporation. All Rights Reserved.

18

Disclaimer
This presentation material contains statements and information about future forecasts, including financial
projections, strategies and business plans of ID Holdings Corporation.

Change or Die!

Forecasts and plans contained in these non-historical information are based on our judgment in accordancewith the information available at the time of publication.
These forward-looking statements and information also incorporate potential risks and uncertainties caused bychanging economic trends, the competitive environment, and other factors. The Company’s actual results,business development progress, and financial situation may differ significantly from forward-looking statements
and information contained herein, due to competition in the industry, market demand, exchange rates, andother socioeconomic and political factors.
This English translation is only for reference purpose. When there are any discrepancies between original

Japanese version and English translation version, the original Japanese version always prevails.

©2022 ID Holdings Corporation. All Rights Reserved.

19