Financial Results
for the Fiscal Year Ended March 31, 2024
May 8, 2024

© 2024 TIS Inc.

Highlights

Fiscal 2024: Financial Highlights• Higher sales and higher income year on year. Achieved revised estimates.
• Operating margin fell year on year and below estimate, owing to impact
from unprofitable projects.

• Favorable order volume and order backlog.
Fiscal 2025: Performance Forecast• Expect higher sales and income but at gradual climb due to huge impact
from reactionary drop in large projects. Maintain robust growth investment.
Return to Shareholders• Paralleling business growth exceeding estimates for fiscal 2024, year-end
dividend will be raised by ¥3.
• Will raise total shareholder return ratio to 50% in fiscal 2025 and increase
dividend by ¥12. With annual dividend at ¥68 per share, treasury stockbuyback could total ¥6.5 billion.
© 2024 TIS Inc.

2

Contents

Fiscal 2024: Financial Highlights
Fiscal 2025: Performance Forecast

Return to Shareholders
Reference Materials- All statements described in these materials are based on information available to management regarding the TIS INTECGroup—that is, TIS and the subsidiaries under its umbrella—as of the presentation date and certain assumptions deemed
reasonable at this time. No intent is implied of promise by the Company to achieve such forward-looking statements.
Indeed, various factors may cause future results to be substantially different from the assumptions presented in thesematerials.
- Amounts for each three-month quarter are calculated by subtracting data for the respective period from the cumulative
total.
- Segment sales include intersegment sales. (excluding page 12 and 15)© 2024 TIS Inc.

3

Fiscal 2024: Financial Highlights
Fiscal 2025: Performance Forecast

Return to Shareholders
Reference Materials© 2024 TIS Inc.

4

Fiscal 2024: Performance Highlights (YOY change)• Higher sales, thanks to business expansion through accurate responses to clients’ IT investment
needs, including demand for digital transformation.
• Even while reinforcing growth investment, achieved increase in operating income, mainly thanks to
demand for high-value-added services.
[Millions of yen]

Fiscal 2023

Fiscal 2024

YOY change

Net Sales

508,400

549,004+40,604[+8.0%]

Operating Income

62,32864,568+2,239[+3.6%]

Operating Margin

12.3%

11.8%

-0.5P

-

Net Income Attributable to
Owners of the Parent Company

55,461

48,873-6,588[-11.9%]Net Income to Net Sales Ratio

10.9%

8.9%

-2.0P

-

Net Income per Share [Yen]227.11203.28-23.83[-10.5%]

ROE

18.8%

16.0%

-2.8P

-

- Non-operating income: ¥5,012 million(YOY change+¥2,523 million)→Reversal of allowance for doubtful accounts: ¥2,501 million, etc.

- Extraordinary income: ¥3,291 million(YOY change -¥18,748 million)→Gain on sales of investment securities: ¥2,254 million, etc.

- Non-operating expenses: ¥1,027 million(YOY change -¥585 million)- Extraordinary loss: ¥2,652 million(YOY change -¥1,100 million)*Inclusion of Nihon ICS in scope of consolidation affects consolidated results from second quarter onward.
Impact of ¥5.8 billion on net sales, and ¥600 million on operating income after goodwill amortization.
© 2024 TIS Inc.

5

Fiscal 2024: Performance Highlights (Compared with estimate)• Net sales exceeded estimate, reflecting capture of IT investment demand, especially from existing
domestic clients and in from operations overseas.
• Stuck near operating income estimate and inability to achieve estimated operating margin mainlyreflect pressure from unprofitable projects.
[Millions of yen]

Fiscal 2024
estimate *Fiscal 2024
actualCompared with estimate

Net Sales

536,000

549,004+13,004[+2.4%]

Operating Income

64,50064,568+68[+0.1%]

Operating Margin

12.0%

11.8%

-0.2P

-

Net Income Attributable to
Owners of the Parent Company

42,00048,873+6,873[+16.4%]Net Income to Net Sales Ratio

7.8%

8.9%

+1.1P

-

Net Income per Share [Yen]174.19203.28+29.09[+16.7%]

ROE

13.7%

16.0%

+2.3P

-

* Latest estimates announced by TIS, and ROE estimate for fiscal 2024 is a calculated value.

© 2024 TIS Inc.

6

Fiscal 2024: Operating Income Analysis, Increase/Decrease Reasons(YOY change)• Posted higher operating income even while reinforcing upfront investment and dealing with increase inunprofitable projects. M&A effect also contributed to results.
Operating Income[Operating Margin][Billions of yen]

+11.51

62.32

64.56

-1.60

[12.3%][11.8%]Of which, effect of
unprofitable projects
was -¥3.59 billion

-7.66

+2.23

[+3.6%]Of which, effect ofchange in statusof consolidated
subsidiary, etc.
was +¥1.24 billion

Gross profit margin

27.6

Actual%[YOY change -0.3 points]

Fiscal 2023

Increased
sales

Decreased
profitability

Increased
SG&A expenses

Prior investment costs for promoting structural transformation:
Up ¥0.78 billion (YOY change)(Cost of sales: +¥0.80 billion, SG&A expenses: -¥0.01 billion）

Software investment / Investment in human resources / Investment in R&D+
Cost of investment in human resources (additional):
Up ¥5.21 billion (YOY change)(Cost of sales : +¥3.58 billion, SG&A expenses : +¥1.63 billion）© 2024 TIS Inc.

Fiscal 2024

Changes in SG&A expenses

Effect of change in status ofconsolidated subsidiary, etc.
Prior investment (excludes investment
in human resources)
Prior investment (investment in
human resources)
Others
Total

+2.58
-0.01
+1.63
+3.46
+7.66

7

Fiscal 2024: Operating Income Analysis, Increase/Decrease Reasons(Compared with estimate)

Operating Income[Operating Margin][Billions of yen]

+3.68
64.56

64.50

[12.0%][11.8%]

-3.34

-0.27

Of which, effect of
unprofitable projects
was -¥2.12 billion+0.06[+0.1%]Of which, effect ofchange in statusof consolidated
subsidiary, etc.
was +¥0.21 billion

Gross profit margin

27.6

Actual%[compared with estimate -0.6 points]

Fiscal 2024
Revised estimate

Increased
sales

Decreased
profitability

Increased
SG&A expenses

Prior investment costs for promoting structural transformation:
Down ¥0.71 billion (compared with estimate)(Cost of sales: -¥0.19 billion, SG&A expenses: -¥0.51 billion）

Software investment / Investment in human resources / Investment in R&D+
Cost of investment in human resources (additional):
Up ¥0.21 billion (compared with estimate)(Cost of sales : +¥0.38 billion, SG&A expenses : -¥0.16 billion）© 2024 TIS Inc.

Fiscal 2024
ActualChanges in SG&A expenses

Effect of change in status ofconsolidated subsidiary, etc.
Prior investment (excludes investment
in human resources)
Prior investment (investment in
human resources)
Others
Total

+0.05
-0.51
-0.16
+0.89
+0.27

8

Fiscal 2024: Sales by Client Sector• Increased year on year in all industries. Situation continues to be driven by service industry, public
sector and banking industry.
[Millions of yen]
Fiscal 2023
2023年3月期

155,308

Fiscal 2024
2024年3月期

142,276

98,813[+9.2％]

97,494[+1.4％]

46,98439,313[+19.5％]Credit card

ｶｰﾄﾞ

45,84332,012

18,474 45,002

31,258[+2.4％]

15,075[+22.5％]

Insurance

Otherfinance
その他金融

Banking
銀行等

保険[+1.9％]

28.0%

10.2%

Financial sector: 36.0%
Public sector: 7.4%
© 2024 TIS Inc.

Distribution

Serviceｻｰﾋﾞｽ

流通

Creditｶｰﾄﾞcard

19.2%
7.7%
6.1%
3.0%
8.9%

Industrial sector: 53.8%
Other sectors: 2.8%

28.3%

Net Sales
Breakdown
by Client
SectorService
ｻｰﾋﾞｽ
Public institutions
公共
Others
その他

公共

Others
その他

2.8%
18.0%
8.3%

Other
finance
その他金融

Distribution
流通

Public institutions

16,057

14,874[+7.9％]

Fiscal 2024

Insurance
保険

Assembly-based
組立系製造
manufacturing
Processing-based
ﾌﾟﾛｾｽ系製造
manufacturing

45,55237,447[+21.6％]

Banking
銀行等

Net Sales
Breakdown
by Client
Sector

6.7%

35,741
33,951[+5.3％]

Assembly-based Processing-based
組立系製造
manufacturing ﾌﾟﾛｾｽ系製造
manufacturing

Fiscal 2023
2.8%
7.4%

54,21651,706[+4.9％]

6.5%

9.9%

8.6%
5.8%
3.4%
8.4%

Financial sector: 35.8% Industrial sector: 53.1%
Public sector: 8.3%
Other sectors : 2.8%

9

Fiscal 2024: Sales and Income for Key Business Segments(YOY change)[Millions of yen]
Offering Service
Business

Business Process
Management

Financial IT
Business

Industrial IT
Business

Regional IT
Solutions

Net Sales

Fiscal 2023

Fiscal 2024

YOY change

111,752

130,759+19,006[+17.0%]Operating Income

6,426

7,659

+1,233[+19.2%]

Operating Margin

5.8%

5.9%

+0.1P

-

Net Sales

43,25541,953-1,302[-3.0%]

Operating Income

5,123

4,551

-572

[-11.2%]

Operating Margin

11.8%

10.8%

-1.0P

-

Net Sales

101,184

106,304+5,119[+5.1%]

Operating Income

13,89615,185+1,288[+9.3%]

Operating Margin

13.7%

14.3%

+0.6P

-

Net Sales

113,632

121,896+8,263[+7.3%]

Operating Income

16,72818,287+1,558[+9.3%]

Operating Margin

14.7%

15.0%

+0.3P

-

Net Sales

160,010

172,376+12,365[+7.7%]

Operating Income

19,343

18,497-845[-4.4%]

Operating Margin

12.1%

10.7%

-1.4P

-

Offering Service Business:

Higher sales and higher income, largely due to wider IT investment in areas of payment settlement, platform and business
management as well as positive impact of M&A activity. Overseas operations contributed to sales growth.
Business Process Management: Existing data entry business struggled, impacting segment results, leading to lower sales and lower income.
Financial IT Business:
Higher sales and higher income, driven mainly by large-scale projects ordered in the first half of fiscal 2024 by core clients incredit card sector as well as public-sector financial institutions.
Industrial IT Business:
Higher sales and higher income underpinned by wider IT investment across spectrum of client sectors, particularly
manufacturing and distribution, as well as solid ERP demand.
Regional IT Solutions:
Despite higher sales, reflecting wider IT investment in such sectors as healthcare, banking and network services, income
decreased significantly, owing to impact from unprofitable projects.

© 2024 TIS Inc.

10

Fiscal 2024: Sales and Income for Key Business Segments(Compared with estimate)[Millions of yen]
Offering Service
Business

Business Process
Management

Financial IT
Business

Industrial IT
Business

Regional IT
Solutions

Net Sales

Fiscal 2024
estimate

Fiscal 2024
actualCompared with estimate

124,300

130,759+6,459[+5.2%]

Operating Income

7,300

7,659

+359

[+4.9%]

Operating Margin

5.9%

5.9%

-0.0P

-

Net Sales

43,00041,953-1,046[-2.4%]

Operating Income

4,850

4,551

-298

[-6.2%]

Operating Margin

11.3%

10.8%

-0.5P

-

Net Sales

105,500

106,304+804[+0.8%]

Operating Income

14,30015,185+885[+6.2%]

Operating Margin

13.6%

14.3%

+0.7P

-

Net Sales

117,700

121,896+4,196[+3.6%]

Operating Income

17,60018,287+687[+3.9%]

Operating Margin

15.0%

15.0%

+0.0P

-

Net Sales

169,100

172,376+3,276[+1.9%]

Operating Income

20,00018,497-1,502[-7.5%]

Operating Margin

11.8%

10.7%

-1.1P

-

Offering Service Business:

Achieved results well above estimates, thanks to greater IT investment in areas of platform and business management systems
as well as favorable M&A effect. Overseas operations contributed to sales growth.

Business Process Management: Digital shift spurred steady demand, but existing data entry services have encountered persistent challenges, precluding
achievement of target.
Sales followed predicted trajectory and, with steady progress on large projects underpinning improved profitability, segment
Financial IT Business:achieved anticipated income.
IT investment across broad range of client sectors, including manufacturing, as well as ERP demand exceeded expectations,
Industrial IT Business:
driving segment sales and income above estimate.
Regional IT Solutions:© 2024 TIS Inc.

Wider IT investment by healthcare facilities, banks and network builders/operators exceeded expectations. Sales hit estimate
but segment did not achieve anticipated income owing to impact from unprofitable projects.

11Fiscal 2024: Sales by Key Business Segment and Operating Activity*For external clients[Millions of yen]

Fiscal 2023

Fiscal 2024

YOY change

99,132

116,115+16,983[+17.1%]

Software development

45,66245,618-44[-0.1%]

Operating/cloud services

31,44139,491+8,050[+25.6%]

Product/software sales

22,02831,006+8,977[+40.8%]40,95839,882-1,076[-2.6%]

Software development

17,855

13,219-4,635[-26.0%]Operating/cloud services

23,10325,536+2,433[+10.5%]-

1,125+1,125-99,432

104,822+5,389[+5.4%]

Software development

55,72059,294+3,574[+6.4%]

Operating/cloud services

36,95240,167+3,214[+8.7%]

Product/software sales

6,760

5,361

-1,399[-20.7%]112,916

121,309+8,393[+7.4%]

Software development

75,29478,877+3,583[+4.8%]

Operating/cloud services

24,07826,532+2,454[+10.2%]

Product/software sales

13,543

15,899+2,356[+17.4%]

153,531

164,786+11,255[+7.3%]

Software development

79,396

83,750+4,353[+5.5%]

Operating/cloud services

54,79356,571+1,778[+3.2%]

Product/software sales

19,341

24,465+5,123[+26.5%]

Offering Service BusinessBusiness Process Management

Product/software sales
Financial IT BusinessIndustrial IT Business

Regional IT Solutions© 2024 TIS Inc.

12

Reference: Fiscal 2024 Fourth Quarter (January-March)
Sales and Income for Key Business Segments[Millions of yen]

Fourth quarterof fiscal 2023

Fourth quarterof fiscal 2024

YOY change

Net Sales

138,017

144,260+6,242[+4.5%]

Operating Income

17,884

16,989-894[-5.0%]

Operating Margin

13.0%

11.8%

-1.2P

-

Net Income Attributable to Owners of
the Parent Company

23,303

16,683-6,620[-28.4%]Net Income to Net Sales Ratio

16.9%

11.6%

-5.3P

-

Net Sales

30,23637,058+6,821[+22.6%]

Operating Income

1,926

2,166

+239

[+12.4%]

Operating margin

6.4%

5.8%

-0.6P

-

Net Sales

11,032

10,713-319[-2.9%]

Operating Income

1,478

1,477

-0

[-0.0%]

Operating margin

13.4%

13.8%

+0.4P

-

Net Sales

27,10526,484-621[-2.3%]

Operating Income

3,988

3,928

-60

[-1.5%]

Operating margin

14.7%

14.8%

+0.1P

-

Net Sales

31,011

32,216+1,205[+3.9%]

Operating Income

4,604

5,018

+414

[+9.0%]

Operating margin

14.8%

15.6%

+0.8P

-

Net Sales

44,58845,091+502[+1.1%]

Operating Income

5,773

4,319

-1,454[-25.2%]

Operating margin

12.9%

9.6%

-3.3P

-

Key Business Segments

Offering Service
Business
Business Process
Management
Financial IT
Business
Industrial IT
Business

Regional IT
Solutions© 2024 TIS Inc.

13

Reference: Fiscal 2024 Fourth Quarter (January-March)
Operating Income Analysis, Increase/Decrease Reasons (YOY change)[Billions of yen]

Operating Income[Operating Margin]

17.88

+1.85

16.98

[11.8%][13.0%]

-1.48

-1.25

Of which, effect of
unprofitable projects
was -¥2.26 billion-0.89[-5.0%]Of which, effect ofchange in statusof consolidated
subsidiary, etc.
was -¥0.01 billion

Gross profit margin

28.0

Actual%[YOY change -1.0 points]

Fiscal 2023
Fourth quarter

Increased
sales

Decreased
profitability

Increased
SG&A expenses

Prior investment costs for promoting structural transformation:
Down ¥0.04 billion (YOY change)(Cost of sales: -¥0.04 billion, SG&A expenses: +¥0.00 billion）

Software investment / Investment in human resources / Investment in R&D+
Cost of investment in human resources (additional):
Up ¥1.20 billion (YOY change)(Cost of sales : +¥0.77 billion, SG&A expenses : +¥0.43 billion）© 2024 TIS Inc.

Fiscal 2024
Fourth quarter

Changes in SG&A expenses
Effect of change in status ofconsolidated subsidiary, etc.
Prior investment (excludes investment
in human resources)
Prior investment (investment in
human resources)
Others
Total

+1.08
+0.00
+0.43
-0.27
+1.25

14

Reference: Fiscal 2024 Fourth Quarter (January-March)
Sales by Key Business Segment and Operating Activity *For external clients[Millions of yen]
Offering Service Business

Fourth quarterof fiscal 2023

Fourth quarterof fiscal 2024

YOY change

26,626

31,949+5,323[+20.0%]Software development

11,607

12,421+813[+7.0%]

Operating/cloud services

8,708

10,758+2,050[+23.5%]

Product/software sales

6,309

8,769

+2,459[+39.0%]10,453

10,181-271[-2.6%]

Software development

4,773

3,355

-1,417[-29.7%]

Operating/cloud services

5,680

6,479

+799

[+14.1%]

-

345

+345

-

26,596

26,139-457[-1.7%]

Software development

15,882

14,128-1,754[-11.0%]Operating/cloud services

9,238

10,644+1,405[+15.2%]

Product/software sales

1,475

1,366

-109

[-7.4%]

30,84832,049+1,200[+3.9%]

Software development

19,867

20,763+896[+4.5%]

Operating/cloud services

6,207

6,617

+410

[+6.6%]

Product/software sales

4,773

4,668

-105

[-2.2%]

42,87943,406+527[+1.2%]

Software development

21,77921,373-406[-1.9%]

Operating/cloud services

14,063

14,382+318[+2.3%]

Product/software sales

7,035

7,650

+614

[+8.7%]

Business Process Management

Product/software sales

Financial IT BusinessIndustrial IT Business

Regional IT Solutions© 2024 TIS Inc.

15

Fiscal 2024: Order Status (Orders received during fiscal year)• Higher order volume overall driven mainly by operations, increasing year on year. M&A effect also
contributing factor.
• Drop in software development order volume largely due to sluggish order activity in Financial IT
Business, which experienced reactionary decrease in large projects. Industrial IT Business and Offering
Service Business saw notable growth.
[Millions of yen]Orders received during fiscal year

Fiscal 2023

Fiscal 2024

YOY change

523,956

552,940+28,984[+5.5%]

282,739

278,508-4,231[-1.5%]

100,617

123,518+22,901[+22.8%]42,83147,799+4,968[+11.6%]

Business Process Orders received during fiscal year
Management
Software development

39,90439,976+71[+0.2%]

16,80013,030-3,770[-22.4%]

Financial IT
Business

Orders received during fiscal year

108,841

101,977-6,864[-6.3%]

65,66652,209-13,457[-20.5%]

Industrial IT
Business

Orders received during fiscal year

113,115120,253+7,138[+6.3%]

73,84979,248+5,398[+7.3%]

Regional IT
Solutions

Orders received during fiscal year

161,477

167,214+5,737[+3.6%]

83,591

86,221+2,629[+3.1%]

Software development
Key Business Segments
Offering Service
Business© 2024 TIS Inc.

Orders received during fiscal year
Software development

Software development

Software development

Software development

16

Fiscal 2024: Order Status (Order backlog at year-end)• Year-on-year increase, with trend in orders received during the term generally unchanged. Decreasein Industrial IT Business due to reactionary drop in specific sales projects.
[Millions of yen]

Fiscal 2023

Fiscal 2024

YOY change

Order backlog at year-end

180,373

188,044+7,671[+4.3%]

Software development

103,282

101,386-1,896[-1.8%]Key Business Segments
Offering Service
Business

Order backlog at year-end

33,19942,248+9,049[+27.3%]

Software development

13,616

16,152+2,536[+18.6%]

Business Process
Management

Order backlog at year-end

7,449

7,543

+94

[+1.3%]

Software development

7,449

7,259

-189

[-2.5%]

Financial IT
Business

Order backlog at year-end

48,79945,954-2,845[-5.8%]

Software development

31,824

24,739-7,085[-22.3%]

Industrial IT
Business

Order backlog at year-end

38,06437,009-1,055[-2.8%]

Software development

22,69423,065+370[+1.6%]

Regional IT
Solutions

Order backlog at year-end

52,861

55,289+2,428[+4.6%]

Software development

27,69730,169+2,471[+8.9%]© 2024 TIS Inc.

17

Reference: Fiscal 2024 Fourth Quarter (January-March): Order Status[Millions of yen]

Fourth quarterof fiscal 2023

Fourth quarterof fiscal 2024

Orders received during fourth quarter

179,259

188,389+9,130[+5.1%]

85,522

84,619-903[-1.1%]

Offering Service Orders received during fourth quarter
Business
Software development

36,39345,375+8,981[+24.7%]

12,622

13,210+587[+4.7%]

Business Process Orders received during fourth quarter
Management
Software development

9,142

11,032+1,890[+20.7%]

3,461

4,105

+643

[+18.6%]

Financial IT
Business

Orders received during fourth quarter

41,10239,353-1,748[-4.3%]

22,567

17,795-4,771[-21.1%]

Industrial IT
Business

Orders received during fourth quarter

38,37437,381-992[-2.6%]

21,51622,162+646[+3.0%]

Regional IT
Solutions

Orders received during fourth quarter

54,24655,245+999[+1.8%]

25,35327,344+1,990[+7.8%]

Software development

YOY change

Key Business Segments© 2024 TIS Inc.

Software development

Software development

Software development

18

Fiscal 2024: Balance Sheets and Cash Flow Status• Applied loans to M&A targets as well as partial acquisition of real estate trust beneficiary rights.
Equity ratio down.
Balance Sheets[Millions of yen]

As of March 31, 2024

Liabilities
200,730

As of March 31, 2023
Liabilities
153,094
Assets462,320

Net Assets
309,226

Assets525,456

Assets: +¥63,135 million-Current assets: +¥22,873 million [Cash and cash deposits +¥8,879 million,
Notes, accounts receivable and Contract assets +¥12,653 million, etc.]-Fixed assets: +¥40,261 million [Tangible fixed assets +¥7,397 million,
Intangible fixed assets +¥28,129 million, etc.]

Liabilities: +¥47,636 million-Current liabilities: +¥23,098 million [Contract liabilities +¥8,067 million, etc.]-Fixed liabilities: +¥24,538 million [Long-term debt +¥16,456 million, etc.]

Net Assets: +¥15,498 million

Net Assets
324,725-Shareholders’ equity: +¥9,333 million [Additional paid-in capital -¥28,155 million,
Retained earnings +¥36,269 million, etc.]-Other total comprehensive income: +¥6,037 million[Net unrealized gains on securities +¥3,815 million, etc.]

Equity Ratio: 59.5% [-4.7 points]
Interest-bearing Debt: ¥37,972 million [+¥21,929 million]

Cash Flows[Millions of yen]

Fiscal 2023

62,57844,93533,634

Fiscal 2024

29,761

11,300-64,573
Cash flows from operating activities
営業活動によるキャッシュ・フローCash flows from investing activities
投資活動によるキャッシュ・フロー

© 2024 TIS Inc.

-32,817-21,889

Cash flows from operating activities: +¥28,944 million-Net income before income taxes: -¥12,299 million-Gain on sales of investment securities: +¥16,063 million-Change in receivables and payables related to operating activities: +¥8,283 million-Payment for income taxes: +¥6,076 million

Cash flows from investing activities: -¥44,118 million-Purchase of shares of subsidiaries: -¥20,724 million-Sale of investment securities: -¥16,690 million

Cash flows from financing activities: +¥42,684 million

Cash flows from financing activities -Net increase/decrease in debt and corporate bonds: +¥42,902 million
財務活動によるキャッシュ・フロー
Free cash flows
フリーキャッシュ・フロー

* Interest-bearing debt does not include lease obligations.

19Fiscal 2024: Financial Highlights
Fiscal 2025: Performance Forecast

Return to Shareholders
Reference Materials© 2024 TIS Inc.

20

Fiscal 2025: Understanding the Business Environment• Changes in economic environment, due to concerns for future caused by financial tightening on global
level as well as lackluster overseas business conditions, require careful monitoring. But IT investment is in
expansion mode for long term—a view likely persist.
Offering Service BusinessTo dateFrom now✓ Cashless market continues to grow. Tailwind factors, such as policy, environment, DX and inbound tourism, will also expand.
✓ Various themes exist—smart cities, digital accounts and other tech-based trends, driven by efforts of finance x operatingcompanies.
✓ ASEAN economy is characterized by slowing pace of growth due to inflation and monetary tightening.
✓ Cloud security market continues to grow. Accounting and business management fields to remain active.

Business Process Management✓ No course correction on labor shortage, workstyle reform or trends in value-added services, likely keeping business process
outsourcing market in gradual growth mode.
✓ Demand for simple outsourcing, such as data entry work, shrinking due to digital advances. Price competition intensifying.
✓ Demand for services to digitize business processes is brisk. Demand for generative AI is also on an uptrend.

Financial IT Business✓ Financial IT market is bustling, driven by efforts to realize an asset management nation. Expect heightened IT investment toachieve sharper competitive edge.
✓ Paralleling growth of payment settlement market, competition with emerging players is intensifying, especially in terms ofcompanies locking in economic zone of their own.
✓ Separately, large credit card and public sector finance projects have reached peak demand phase and provision of related
services is trending downward.

Industrial IT Business✓ DX demand will continue, underpinned by favorable shift in requests for modernization, ERP upgrades and other DXrelated services.
✓ Demand for services, mainly, have rebounded in wake of pandemic, exemplified by brisk IT investment.
✓ Impact stemming from such factors as soaring crude oil prices, weakening yen, and upward pressure on wages andcommodity prices, require careful monitoring.

Regional IT Solutions✓ Despite variations by industry and company, IT demand is brisk.
✓ IT investment among medium-sized and small-to-medium-sized enterprises also on uptrend.

© 2024 TIS Inc.

These trends may differ from general industry trends since management’s assumptions also take into consideration the status of IT investment
by TIS INTEC group clients.

21

Fiscal 2025: TIS INTEC Group Management Direction
Medium-Term Management Plan
(2024-2026) Basic Policies

Frontiers 2026

Frontier development
We will strive to achieve changes in society and forcorporate clients by enhancing quality across all value
chains, starting with forward-looking market
development and business domain expansion.
Establish position, capabilities and organizational strength
as value-creating co-creation partner for society/clients
Win confidence of society

Sustainable growthparalleling addition of value
Concentrate Group’s collective strength into markets
identified through segment management
Meaningful growth

Improved earning power

Hone strengths of Group by driving capabilities of humanresources and organization higher and by turning
experience into asset that can be effectively utilized
Human resources growth
and added value cycle© 2024 TIS Inc.

Assets (intellectual
property) value creation

Fiscal 2025 Group Management Direction

Leverage long-term growth strategy for corporate value and value provided
to society through sustainability management⚫ Seeking to establish foundation for presence indispensable to social change, we will
create indicators and targets for impact on society through business activities andadvance medium- to long-term solutions to social issues.
⚫ Promote efficiency by both strengthening strategic functions that contribute toimprovement in corporate value and greater use of DX in head office functions andcompanywide operations.
Increase added value by reinforcing issue-solving ability⚫ Increase representation of consultants, IT architects, high-level management and otherkey human resources, to enhance issue-solving ability, insight and integration skills, toimprove value provided to clients.
⚫ Accelerate improvement in added value by providing services hinging on industry andfunction and by enriching full value chain services as well as pure services*.

Expand profitability, mainly through business structure transformation basedon continued approach to robust investment⚫ Continue to promote investment that fuels further transformation of strategic domain
structure.
⚫ Shape return scenario for Financial IT Business and BPM to grow again, and reduce
number of unprofitable projects.
⚫ Create productivity improvement results through business application of regenerative AI
and other technologies.
Leverage business expansion to underpin status as top-class IT group in
ASEAN region, and strengthen governance⚫ Set Asia, with its massive market potential, as long-term focus of business expansion,and further cultivate market through such approaches as stronger relationships andjoint business development with companies in which TIS has invested funds to build
operations in ASEAN region and efforts to secure and develop human resources for new
business creation using collaboration among industry, government and academia.
Reinforce human resources growth and intellectual property utilization to
maximize added value provided⚫ Deepen human capital management and maintain robust investment in humanresources, particularly training and compensation, to cultivate human resources withspecialized expertise for leading frontier development.
⚫ Promote greater accumulation and application of intellectual property, including
creation of intellectual property through enhanced feedback on client contact
information.
Note: Essentially, type of services offered under uniform specifications applicable to all clients.

22

Fiscal 2025: Performance Forecasts• Despite impact of reactionary drop in large projects, anticipating business expansion that will support
higher sales and higher operating income.
• Decrease in net income attributable to owners of the parent company largely due to reactionary drop
in non-operating income and extraordinary income, booked in previous fiscal year.
[Millions of yen]

Fiscal 2024
actualFiscal 2025
estimate

YOY change

Net Sales

549,004

555,000+5,995[+1.1%]

Operating Income

64,56866,500+1,931[+3.0%]

Operating Margin

11.8%

12.0%

+0.2P

-

Net Income Attributable to
Owners of the Parent Company

48,87344,800-4,073[-8.3%]Net Income to Net Sales Ratio

8.9%

8.1%

-0.8P

-

Net Income per Share (Yen)

203.28192.55-10.73[-5.3%]

ROE *

16.0%

13.9%

-2.1P

-

* ROE estimate for fiscal 2025 is a calculated value.

© 2024 TIS Inc.

23

Fiscal 2025: Operating Income Analysis, Increase/Decrease Reasons[Forecast]• Will maintain robust growth investment, including investment into human resources. Anticipate higher
operating income, buoyed by an increase in profit achieved by providing high-value-added services,leveraging measures to boost productivity and other approaches.
Operating Income[Operating Margin][Billions of yen]

+5.63
64.56

[11.8%]

66.50

+1.72

[12.0%]-5.42

Of which, effect of
unprofitable projects
was +¥3.00 billion+1.93[+3.0%]Of which, effect ofchange in statusof consolidated
subsidiary, etc.
was +¥0.03 billion

Gross profit margin
Plan%[YOY change +1.0 points]

28.6

Fiscal 2024
actualIncreased
sales

Improved
profitability

Increased
SG&A expenses

Growth investment(Investment in human resources / Investment in R&D / Software investment)
Up ¥0.60 billion (YOY change)(Cost of sales: +¥0.30 billion, SG&A expenses: +¥0.30 billion)© 2024 TIS Inc.

Fiscal 2025
estimate

Changes in SG&A expenses
Effect of change in status ofconsolidated subsidiary, etc.
Growth investment+1.58

Progress on measures+1.86

Other expenses

+1.68

Total

+5.42

+0.30

24

Fiscal 2024: Sales and Income by Key Business Segment [Forecast][Millions of yen]
Offering Service
Business

Business Process
Management

Financial IT
Business

Industrial IT
Business

Regional IT
Solutions

Net Sales

Fiscal 2024
actualFiscal 2025
estimate

YOY change

130,759

140,800+10,040[+7.7%]

Operating Income

7,659

8,600

+940

[+12.3%]Operating Margin

5.9%

6.1%

+0.2P

-

Net Sales

41,95343,000+1,046[+2.5%]

Operating Income

4,551

4,500

-51

[-1.1%]

Operating Margin

10.8%

10.5%

-0.3P

-

Net Sales

106,304

98,500-7,804[-7.3%]

Operating Income

15,18512,000-3,185[-21.0%]Operating Margin

14.3%

12.2%

-2.1P

-

Net Sales

121,896

125,500+3,603[+3.0%]

Operating Income

18,287

19,600+1,312[+7.2%]

Operating Margin

15.0%

15.6%

+0.6P

-

Net Sales

172,376

171,000-1,376[-0.8%]

Operating Income

18,49721,500+3,002[+16.2%]

Operating Margin

10.7%

12.6%

+1.9P

-

Expect higher sales and higher income, reflecting expansion in settlement solutions and wide spectrum of other services aswell as improved profitability in overseas operations.
Business Process Management: Despite efforts to shift business portfolio away from data entry services in favor or more priority areas, such as processoptimization, sales may grow while income falls during the transition period.
Huge impact from reactionary drop in multiple large-scale projects for existing clients could result in lower sales and lower
Financial IT Business:
income.
Higher sales and higher income are likely, owing to success in cultivating demand from existing customers, especially inIndustrial IT Business:
manufacturing and service sectors, and capturing ERP-related IT investment demand.
Despite lower sales due to reactionary drop in sales year on year, improved productivity and successful efforts to reduce
Regional IT Solutions:
number of unprofitable projects should deliver higher income.
Offering Service Business:© 2024 TIS Inc.

25

Fiscal 2024: Financial Highlights
Fiscal 2025: Performance Forecast

Return to Shareholders
Reference Materials© 2024 TIS Inc.

26

Fiscal 2025 Basic Policy on Return to Shareholders
Total return ratio

Dividends per share

50%*

Constantly enrich
the dividend[up from 45%]

Upper limiton treasury stock holdings
at5%* Based on profit (after income taxes and income
attributable to non-controlling interests)

Seek more appropriate capital composition and enhanced capital efficiency, with efforts to promote growthinvestment, maintain financial health and strengthen return to shareholders —all in the right balance.
Promote growth investment⚫ Total growth investment of about ¥100 billion over three years⚫ Robust investment to optimize business portfolio

Promotegrowthinvestment⚫ Will pursue sustainable creation of returns exceeding cost of capital andbroaden equity spread

Strengthen return to shareholders⚫ Raise total return ratio to 50% (yardstick) *from 45%⚫ Continue to enrich dividends per share

MaintainfinancialhealthStrengthen
return toshareholders⚫ Maintain upper limit on treasury stock holdings at 5% of total shares
outstanding, and cancel the excess

Maintain financial health⚫ Allow debt-equity ratio up to 0.5, understanding optimization of capital
structure comes with improved ability to generate cash

⚫ Maintain “A rating” * A+ as of November 13, 2023
⚫ Maintain level of cash and deposits, plus commitment line, equivalent to twomonths’ worth of sales© 2024 TIS Inc.

27

Status/Targets for Return to Shareholders• Annual dividend of ¥56 for fiscal 2024, including a ¥3 increase in year-end dividend. Marks 12th
consecutive year of dividend increases.
• Plan to offer annual dividend of ¥68 in fiscal 2025. Will respond to increase in total return ratio byraising dividend.
Fiscal 2024

Fiscal 2025

[Normal][Capital optimized][Total][YOY change +¥6]
[Compared with estimate +¥3]-

¥56

Total dividends¥13.3 billion-¥13.3 billion¥15.9 billion

Payout ratio [After adjustment *1]

27.5% [30.7%]

-

27.5%

35.3%

About ¥6.2 billion

About ¥22.4 billion

About ¥28.6 billion¥6.5 billion *2

39.9% [44.9%]

-

85.8%

50.0%

¥56

Annual dividend per share

Acquired treasury shares
Total return ratio[After adjustment *1]

Changes in Dividends per Share
Annual: ¥56
Annual: ¥44

Annual: ¥50

43.1%

30.7%

¥13

(Afteradjustment)

Fiscal 2022

2022年3月期
Dividends(interim)
中間配当金

30.3%

¥15

[Estimate](Afteradjustment)

¥34

¥39

¥35

¥31

Annual: ¥68

44.9%(Afteradjustment)(Afteradjustment)

Total Acquired Treasury Shares [Millions of yen]

[Anticipated]

44.0%(Afteradjustment)

Fiscal 2023

2023年3月期¥17¥68[YOY change +¥12]

50.0%

29,99928,622

About
24,500About
22,400

6,500

35.3%
30.7%

¥34

4,470

Fiscal 2025

Fiscal 2022
2022年3月期(Afteradjustment)

Fiscal 2024

2024年3月期

Dividends (term-end)
期末配当金
総還元性向
Dividends(term-end, estimate)
Dividends(interim, estimate)
期末配当金（計画）
中間配当金（計画）© 2024 TIS Inc.

2025年3月期
Total return ratio
配当性向
Payout ratio■Capital
optimized
資本構成適正化分■Normal
通常分■Normal[Estimate][Estimate]

5,500

6,200

Fiscal 2023
2023年3月期

Fiscal2024
2024年3月期

Fiscal 2025
2025年3月期*1 Based on profit (after income taxes and income attributable to noncontrolling interests)*2 Upper limit based on treasury stock buyback announced May 8, 2024.

28

Fiscal 2024: Financial Highlights
Fiscal 2025: Performance Forecast

Return to Shareholders
Reference Materials© 2024 TIS Inc.

29

Fiscal 2025 First Half:
Sales and Income for Key Business Segments [Forecast][Millions of yen]

Fiscal 2024
first half

Fiscal 2025
first half

YOY change

Net Sales

267,488

270,000+2,511[+0.9%]

Operating Income

30,38730,000-387[-1.3%]

Operating Margin

11.4%

11.1%

-0.3P

-

Net Income Attributable to
Owners of the Parent Company

20,307

20,300-7[-0.0%]Net Income to Net Sales Ratio

7.6%

7.5%

-0.1P

-

Net Sales

60,14868,600+8,451[+14.1%]

Operating Income

2,659

3,300

+640

[+24.1%]

Operating Margin

4.4%

4.8%

+0.4P

-

Net Sales

20,994

21,400+405[+1.9%]

Operating Income

2,108

2,100

-8

[-0.4%]

Operating Margin

10.0%

9.8%

-0.2P

-

Net Sales

54,10650,000-4,106[-7.6%]

Operating Income

7,886

6,000

-1,886[-23.9%]Operating Margin

14.6%

12.0%

-2.6P

-

Net Sales

58,32660,300+1,973[+3.4%]

Operating Income

8,470

9,200

+729

[+8.6%]

Operating Margin

14.5%

15.3%

+0.8P

-

Net Sales

85,53582,000-3,535[-4.1%]

Operating Income

9,013

9,300

+286

[+3.2%]

Operating Margin

10.5%

11.3%

+0.8P

-

Key Business Segments
Offering Service
Business
Business Process
Management
Financial IT
Business
Industrial IT
Business
Regional IT
Solutions© 2024 TIS Inc.

30

Fiscal 2025 Second Half:
Sales and Income for Key Business Segments [Forecast]Fiscal 2024
second half

[Millions of yen]

Fiscal 2025
second half

YOY change

Net Sales

281,515

285,000+3,484[+1.2%]

Operating Income

34,18136,500+2,318[+6.8%]

Operating Margin

12.1%

12.8%

+0.7P

-

Net Income Attributable to
Owners of the Parent Company

28,566

24,500-4,066[-14.2%]Net Income to Net Sales Ratio

10.1%

8.6%

-1.5P

-

Net Sales

70,611

72,200+1,588[+2.2%]

Operating Income

5,000

5,300

+299

[+6.0%]

Operating Margin

7.1%

7.3%

+0.2P

-

Net Sales

20,95821,600+641[+3.1%]

Operating Income

2,442

2,400

-42

[-1.7%]

Operating Margin

11.7%

11.1%

-0.6P

-

Net Sales

52,19748,500-3,697[-7.1%]

Operating Income

7,298

6,000

-1,298[-17.8%]Operating Margin

14.0%

12.4%

-1.6P

-

Net Sales

63,56965,200+1,630[+2.6%]

Operating Income

9,816

10,400+583[+5.9%]

Operating Margin

15.4%

16.0%

+0.6P

-

Net Sales

86,84089,000+2,159[+2.5%]

Operating Income

9,484

12,200+2,715[+28.6%]

Operating Margin

10.9%

13.7%

+2.8P

-

Key Business Segments
Offering Service
Business
Business Process
Management
Financial IT
Business
Industrial IT
Business
Regional IT
Solutions© 2024 TIS Inc.

Estimated amounts for second half of fiscal 2025 = Annual estimates for fiscal 2025 – First-half estimates

31

Handling these materials
These materials are protected by Japan’s Copyright Law and the Unfair Competition Prevention Law. Unless TIS has expressly given permission, these materials shall not
be copied, duplicated, transcribed, reprinted or modified in part or in whole, inherent know-how shall not be used, and business secrets shall not be disclosed. Company
names, product names and logos are the trademarks or registered trademarks of each company.