Financial Results offiscal 2023
andmedium-term
management plan
M a y 1 1 , 2 0 2 3
Systena Corporation

Security code:2317(Prime Market of the Tokyo Stock Exchange)

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Company Outline【Company name】

Systena Corporation【Established】

March 1983
March

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

︓ Yoshichika Hemmi Director ︓ Hiroyuki Fujii
Director ︓ Shingo Hemmi
Director ︓ Hiroshi Kotani

and Chairman
Representative Director ︓ Kenji Miuraand President
︓ Makoto Taguchi
Director【Auditor】 Full-time Corporate Auditor(Outside Corporate Auditor) ︓ Toru Hishida【Number of Employees】

Outside Director ︓ Yukio Suzuki
Outside Director ︓ Kouichi Ogawa
Outside Director ︓ Mari Itoh

Non-Consolidated:4,506/Consolidated:6,047 (As of Apr. 1, 2023)► Planning, design, development and verification support for►

1,513,750,000 Yen
450,880,000 shares

Outside Corporate ︓ Yoshihiro Nakamura､ Hiroshi Adagawa、Nobushige Tokuono
AuditorSolution Design Business►

TSE Prime market

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 BusinessBusiness Solution Business

Provision of IT outsourcing services including
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► IT-related products for corporate customers, suchas servers, computers, peripherals, and software► Provision of infrastructure building, virtualizationand other IT device/equipment-related services► Provision of RPA solutions

Cloud Business

Overseas Business

Investment & Incubation Business► Offering Systenaʼs own service, ʻCanbus.ʼ

► Mobile communication-related technical► Planning and management of social

ʻCanbus.IoTʼ , ʻCloudstepʼ , ʻWeb Shelterʼ.

► Offering and supporting introduction of

Google Workspace, Microsoft Office 365,
and other cloud services

support, development and verification
support , provision of various solutions

games for mobile, smartphone, PC by
subsidiary GaYa

► Trend research and commercialization of
the latest technologies and services

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

1

Domestic Group Companies●Consolidated subsidiaries

ＰｒｏＶｉｓｉｏｎ Co., Ltd.
【Capital】 85,000,000 Yen【Ratio of capital contribution】
99.6％

・Comprehensive internet
service business focusing
on development supportand quality evaluation ofmobile terminal apps andinternet content（IT Service Business）

Tokyoto Business
Service Co.,Ltd【Capital】 100,000,000 Yen【Ratioof capital contribution】 Systena
51％ TOKYO METROPOLITAN GOVERNMENT 49％
Data entry, Large volume output,
Mailing service, Secretariat
agency,Paperwork agency. Modelcompany for employing heavily
disabled persons incorporated
jointly with TOKYOMETROPOLITAN GOVERNMENT.

（IT Service Business）

TBSOPERATION CO., LTD【Capital】 40,000,000 Yen【Ratio of capital contribution】
Tokyoto Business Service
Co.,Ltd 100％
Employment transition support
and continuous employment
support based on the General
Support for Persons with
Disabilities Act.Employment
training for persons
with disabilities.

（IT Service Business）

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

GaYa Co.Ltd.

MINGAL,Inc.

HIS HOLDINGS,INC.

【Capital】 75,000,000 Yen【Ratio of capital
contribution】 65％【Capital】 100,000,000 Yen【Ratio of capital
contribution】 60.0％【Capital】 95,000,000 Yen【Ratio of capital
contribution】 25.0％

Planning and managementof social games for mobile,
smartphone, PC

Development, distribution,
maintenance, and operationof cloud services relating toprofessional practice（Investment & Incubation
Business）（Cloud Business）
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

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

（Solution Design Business）

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 offiscal 2023
（Consolidated）＜YoY rate＞
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

4

Financial Results（Consolidated）
With the impact of the COVID-19 pandemic lessening and economic activities becoming normal, we speedily
allocated management resources with a focus on growth fields, particularly in markets where we are able toleverage our strengths and become a winner, while also investing, such as continuing to recruit new
graduates proactively and expanding office floor space, to increase the size of the business. As a result, net
sales and operating profit increased 14.2% and 8.1% year on year, to 74,526 million yen and 9,844 million
yen, respectively.
（in millions of yens）

Fiscal 2023
AmountFiscal 2022
Profit ratio

AmountYoY rate

Profit ratio

Amount ofchangerate of change

Net
sales

74,526－65,272

－

9,254

14.2％

Operatingprofit

9,844

13.2％

9,106

14.0％

738

8.1％

Ordinary
profit

9,955

13.4％

8,578

13.1％

1,377

16.1％

Profit attributableto owners ofparent

7,317

9.8％

5,992

9.2％

1,325

22.1％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

5

Point 1
Solution Design Business

Net Sales

Year-on-year

22,375 million yen +8.3％

Operating Profit

Year-on-year

3,926 million yen ▲5.0％

 We successfully received orders for large-scale projects in the in-car business, mainly in Mobility.
 Orders for PMO and IT services increased in the net business. Since the number of inquiries is high,we will continue to focus on them.
 The number of inquiries regarding PMO and IT consulting also increased from companies that will
introduce DX services.
 Although the number of employees increased due to the recruiting of a large number of new
graduates, the number of profitable new projects that were launched was relatively low due to theincreased number of mid-career engineers that retired from the company.
Framework Design Business

Net Sales

Year-on-year

6,095 million yen +18.5％

Operating Profit

Year-on-year

1,279 million yen +26.1％

 In the financial sector, an increase in the number of inquiries, especially inquiries
regarding DX-related projects, resulted in higher sales. We are expanding into new areas
such as host migration and cloud business.
 In the public sector, we actively expanded into projects for central government offices.
The number of inquiries for both app development and infrastructure increased, which led
to the expansion of our business.
 In the corporate sector, we have enhanced low-code development. We have acquired new
projects through integrated maintenance and development services using DX labs.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

6

Point 2
IT Service Business

Net Sales

17,753 million yen

Year-on-year+13.1％

Operating Profit

Year-on-year

2,521 million yen +14.7％

 We focused on the expansion of two types of services, IT business services to help
customers facilitate DX and PMO services to provide project management support mainly
in association with the introduction of various types of tools and the improvement ofbusiness processes. These efforts contributed to higher sales and profits.
 We increased the use of inbound sales such as IT training and security services to acquire
new core customers.
Business Solution BusinessYear-on-year

Net Sales 26,510 million yen +18.9％

Operating Profit

Year-on-year

1,760 million yen +22.5％

 Uncertainty grew due to rising materials prices, the high cost of living and other factors.
With an eye toward the endemic COVID-19 era, however, we strengthened our sales
activities in response to the easing of restrictions on activities.
 In the system integration business, we received orders for building of hybrid environments,
migration to a cloud environment for digitalization, system development projects, andmaintenance services.
 The number of inquiries increased for projects that require one-stop services, high valueadded solutions that include the understanding of roadmaps, the introduction of IT
equipment, the construction of IT infrastructure, the utilization of the cloud and thedevelopment of systems, as well as maintenance/operation projects.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

7

Point 3
Cloud Business

Net Sales

Year-on-year

2,007 million yen +11.2％ Operating Profit

Year-on-year

386 million yen ▲4.9％

 There has been an increase in the number of inquiries for Canbus., a productthat enables low-code development, reflecting growing demand for the
replacement of operation systems due to the recent promotion of DX.
 The number of orders for PMO and integration for operational reforms increased
from the customers using Canbus. to facilitate their DX.
 New markets for "Canbus." further cultivated because of strengthening of ouralliances.
Overseas BusinessYear-on-year

Net Sales 134 million yen ▲23.8％

Year-on-year

Operating Profit ▲29 million yen ▲19 million yenWe have continuously received orders for system development and verification services from Japanese companies
despite poor performance in the technology industry as a whole in the U.S.



A system development and verification business for a new company started thanks to an introduction from a longstanding customer.

Many orders have been received for projects for the development of PoC, where Japanese companies verify startups' technologies.



The number of inquiries and orders for "Canbus.," increased in the U.S. as well.

The number of inquiries increased rapidly because StrongKey Inc., our group company, successfully adapted its
secure network communication (PKI) to the unified standard of Smart Home (Matter), a forerunner in the industry.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

8

Financial Results（Consolidated, YoY rate）
Sales by Segment（in millions of yens）

Fiscal 2023
AmountSolution
DesignFiscal 2022

Sales
Distribution
ratio

AmountYoY rate

Sales distribution
ratio

Amount ofchangerate ofchange22,37530.0％

20,663

31.6％

1,711

8.3％

Framework
Design

6,095

8.2％

5,143

7.9％

952

18.5％

IT Service

17,75323.8％

15,690

24.0％

2,063

13.1％

Business
Solution

26,51035.6％

22,290

34.1％

4,220

18.9％

2,007

2.7％

1,804

2.8％

202

11.2％

Overseas

134

0.2％

176

0.3％

▲41

▲23.8％

Investment
Incubation

309

0.4％

171

0.3％

137

80.2％

Adjustment

▲660

▲0.9％

▲668

▲1.0％

7

―

Total

74,526100.0％

65,272100.0％

9,254

14.2％

Cloud

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

9

Financial Results（Consolidated, YoY rate）
Operating profit by Segment（in millions of yens）

Fiscal 2023

Fiscal 2022

Profit ratio

AmountYoY rate

Profit ratio

AmountAmount of change rate of change

Solution
DesignFramework
Design

3,926

17.5％

4,132

20.0％

▲205

▲5.0%

1,279

21.0％

1,014

19.7％

264

26.1％

IT Service

2,521

14.2％

2,197

14.0％

323

14.7%

Business
Solution

1,760

6.6％

1,436

6.4％

323

22.5%

Cloud

386

19.3％

406

22.5％

▲19

▲4.9%

Overseas▲29▲21.8％

▲9

▲5.3％

▲19

―

Investment
Incubation

▲0

▲0.2％

▲72

▲42.4％

72―

Adjustment

―

―

―

―

―

―

9,844

13.2％

9,106

14.0％

738

8.1％

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

10

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

Cloud

Net sales¥74,526ｍil

2.7%

Overseas

0.2%
Investment &Incubation

0.4%

Cloud

3.9%
Business
Solution

Solution
Design

17.9%

30.0%

Business
Solution

Operating profit¥9,844ｍil

Solution
Design39.9%
IT Service

35.6%
Framework
DesignIT Service

23.8%
Adjustment

25.6%

8.2%
▲0.9%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Framework
Design13.0%
Overseas▲0.3%
Investment & Incubation ▲0.0％
Adjustment
ー%11Earnings Forecast for
Fiscal 2024
(Consolidated, Full Year)

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

12

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

Fiscal 2024

Fiscal 2023

Earnings Forecasts
AmountProfit ratio

AmountYoY rate

Profit ratio

Amount ofchangerate of change

Net
sales

80,386－74,526

－

5,859

7.9％

Operatingprofit10,610

13.2％

9,844

13.2％

765

7.8％

Ordinary
profit10,644

13.4％

9,955

13.4％

688

6.9％

7,233

9.8％

7,317

9.8％

▲84

▲1.1％

Profit attributable toowners of parent

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

13

1-1. Solution Design Business
Outlook for this Period

compared with previous period

Net Sales 24,500 million yen + 9.5％

compared with previous period

Operating Profit 4,020 million yen +2.4％

Selection and concentration. We aim to create high valueadded business areas.
1. Actively focusing on businesses development in growth areas

 Actively cultivate new markets in highly prospective areas such as Mobility,
5G, AI, IoT, Cashless payment and DX.

2. Shifting to the provision of total solutions

 Support all processes of customersʼ services from IT consulting to operation.
By expanding the areas from not only design, development, and assessment,
but also to planning, operation, IT consulting, and service operation, we
provide added value to customers and aim to be a highly profitable company.

3. Actively recruiting human resources and reinforcing the
education system With an eye toward long-term growth, we will actively recruit humanresources and promote collaboration with partners. We will strengthen our
education system with the goal of providing high added value to customers.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

14

2. Framework Design Business
Outlook for this Period

compared to previous period

Net Sales 6,900 million yen +13.2?％

compared to previous period

Operating Profit 1,450 million yen +13.3％

Continue active expansion to growth fields in each of thefinancial, public, and corporate areas. Aim to maximize thenumber of orders by utilizing development know-how andadvanced technologies.
1. Maximizing existing businesses and expanding into growth areas

 The continuation of projects centered on insurance/financial systems andinfrastructure building and the active expansion to the public sector and corporatearea.

2. Actively securing orders for DX projects
 Enhance both sales and technological systems for receiving orders for DX projects,
such as the renewal of core systems (migration) and the use of cloud services.
3. Further expanding high value-added projects
 Enhance the DX labs and expand the services that address low-code development andDX solutions. Enhance competitive power along with the improvement of added value
with the goal of continuing to improve profitability.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

15

3-1. IT Service Business
Outlook for this Period

compared to previous period

Net Sales 19,413 million yen +9.3％

compared to previous period

Operating Profit 2,800 million yen +11.1％

Expand the service, market, and customer bases for DX-related
demand, with the goal of continuing to expand business fields.
1. Focusing on the provision of services that are more directly connected to
the growth of the customerʼs business.
 We will provide PMO services to improve operations and introduce cloud
solutions for customers who are considering cost optimization.
2. Expanding services that support quality improvement in agile development
 We will actively expand into the QA field for operations systems leveraging ourknowledge of the provision of agile testing services for web applications, mobile
applications and social media service games.
3. Developing new customers that will support our continuous growth In addition to outbound sales, we will more effectively utilize inbound sales
such as services referral websites and webinars.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

16

4-1. Business Solution Business
Outlook for this Period

compared to previous period

Net Sales 27,630 million yen +4.2％

compared to previous period

Operating Profit 1,874 million yen +6.4％

Although there is uncertainty due to the rising materials prices, the high cost of living,and other factors, our investments in new initiatives with an eye toward the endemic
COVID-19 era in response to the easing of restriction on activities, the improvementof productivity through DX, and the enhancement of our competitive capabilities haveincreased. The impact of the semiconductor shortage will improve gradually

Shifting our focus from physical business to service business1. 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 with cloud makers

3. Expanding DX related services
 Enhance system development and the application reconfiguration business in a multicloud environment.

4. Strengthen earnings capacity through expanded sales of services
 Provide ALL Systena's services on a one-stop basis
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

175. Cloud Business
Outlook for this Period

compared to previous period

Net Sales 2,250 million yen +12.1％

compared to previous period

Operating Profit 439 million yen +13.6％

We are making proactive advance investments in our own services,primarily Canbus., with the aim of deploying these services in thefield of DX.
1. Increasing the brand recognition of Canbus. and strengthening
sales promotion
 We will aggressively enhance Canbus.-related alliances while simultaneously
striving to improve its brand recognition and cultivate new customers.

2. Investment with a view toward global expansion

 We will develop new customers overseas in collaboration with Systena
America Inc.

3.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.

18

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

compared to previous period

Net Sales 178 million yen +43million yen

Operating Profit 1

compared to previous period
million yen +30million yen

1. Efforts to increase orders for system development and verification services fromJapanese companies and the application of services for other customers
 Increase orders by enhancing customer satisfaction with system development and verification
services being implemented and facilitate the application of services for other customers

2. Technical support for the development of PoC between Japanese companies andstart-ups.

 Increase orders for projects for the development of PoC between Japanese companies in Silicon
Valley and start-ups, and utilize offshore development in Japan and Vietnam, which securesdevelopment quality.

3. Sales expansion of the DX service "Canbus."

 Increase orders for the Canbus. as a DX support service for local companies in the U.S. to realize
digitalization of their operational workflows and paperless operations, etc.

4. Sales expansion of BPO service "Remote-Hand"

 Increase orders for Remote-Hand, a ticket-based business support service that is available
remotely and by time, against a background of soaring labor costs in the U.S.

5. Collaboration with our group subsidiaries

 Further enhance collaboration in sales with StrongKey Inc. and ONE Tech Japan Inc. to expand
sales including the services that both companies provide to companies around the world.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

19

Earnings Forecast for the Full Year (Consolidated, YoY rate)

Sales by Segment（in millions of yens）

Fiscal 2024

Earnings Forecasts
AmountSolution
DesignSales distribution ratio

Fiscal 2023
AmountYoY rate

Sales distribution
ratio

Amount ofchangerate of change

24,50030.5％

22,375

30.0％

2,124

9.5％

Framework
Design

6,900

8.6％

6,095

8.2％

804

13.2％

IT Service

19,41324.2％

17,753

23.8％

1,659

9.3％

Business
Solution

27,63034.3％

26,510

35.6％

1,119

4.2％

2,250

2.8％

2,007

2.7％

242

12.1％

Overseas

178

0.2％

134

0.2％

43

32.7％

Investment
Incubation

175

0.2％

309

0.4％

▲134

▲43.5％

Adjustment

▲660

▲0.8%

▲660

▲0.9％

0

0％

Total

80,386100.0％

74,526100.0％

5,859

7.9％

Cloud

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

20

Earnings Forecast for the Full Year (Consolidated, YoY rate)

Operating profit by Segment（in millions of yens）

Fiscal 2024

Fiscal 2023

Earnings Forecasts
Profit ratio

AmountAmountYoY rate

Profit ratio

Amount ofchangerate of change

Solution
DesignFramework
Design

4,020

16.4％

3,926

17.5％

93

2.4％

1,450

21.0％

1,279

21.0％

170

13.3％

IT Service

2,800

14.3％

2,521

14.2％

278

11.1％

Business
Solution

1,874

6.8％

1,760

6.6％

113

6.4％

439

19.5％

386

19.3％

52

13.6％

Overseas

1

0.6％

▲29

▲21.8％

30―

Investment
Incubation

26

14.9％

▲0

▲0.2％

26

―

Adjustment

―

―

―

―

―

―

10,610

13.2％

9,844

13.2％

765

7.8％

Cloud

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

21

Earnings Forecast (Consolidated)
Composition of Net Sales and Operating Profit by Segment
Net sales
Cloud 0.2% ¥80,386mil
Overseas

Investment &Incubation

0.2%

4.1%

2.8%

Business
Solution

Solution
DesignBusiness
Solution

Cloud

Operating profit¥10,610mil

30.5%

17.7%

Framework
DesignIT Service

8.6%

26.4%

Solution
Design

37.9%

34.4%

IT Service

13.7%

24.3%
Adjustment

Framework
Design▲1.0%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Overseas
Investment & Incubation
Adjustment

0.0％
0.2%
―%
22

Systena GroupManagement Objectives
and Basic Policy

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

23

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

to become one of Japanʼs 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.

24

(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.

25

Systena
medium-term
management plan

（Fiscal 2019〜 Fiscal 2025）

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

26

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.

27

Medium-Term management plan
Strategies
We will focus management
resources on the fields
expected to experience themost growth over the next
decade.

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

Targeted Management Indicators and Outlook for Fiscal 2025
(hundreds of millions of yen)

KPI

2019/32020/3

Net Sales

59,74264,55260,871

65,27274,52680,386

101,000

Operating
Profit

6,902

8,163

8,006

9,106

9,844

10,61015,200Operatingprofit margin

11.6％

12.6％

13.2％

14.0%

13.2%

13.2%

2.13

2.32

1.99

1.98

1.89

1.83

Operatingprofit per
employee

ROE

2021/32022/32023/32024/3

Earnings Forecast

2025/3target（1.7x）（2.2x）

15.0％
2.60(20％ increase)

24.6％

25.5％

20.6％

21.6%

22.9%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

20.1%

25％
28

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 aimof industry expansion. We will also be selecting and focusing on in-car business, which is currently undergoing an industrywide transformation, with a view to establishing long-term competitiveness.
There is an increasing demand for digital transformation as a result of customers transforming their business models andprocesses. 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
2.7 billion yen

社会インフラ / プロダクト

2023

2022

2021

MaaS

Car sharing

Autonomous driving

Connected cars

Infotainment

Safety solutions

6.5 billion yen

5GCommunication robots

Industrial robots

Settlement terminals

800 million yen

2025

2024

Net business

Olympic related

10.2 billion yen

Educational reform

Lifestyle

DXサービスWorkstyle reform

Digital transformation (DX)

2.3 billion yen

Open source utilization

20.0 billion yen

AI and RPA

FY2020

FY2021

FY2022

FY2023

Net Sales

21.2
billion yen

22.9
billion yen

23.8
billion yen

20.7
billion yen

22.4
billion yen

Operating
Profit3.7
billion yen

4.0
billion yen

4.1
billion yen

4.1
billion yen

3.9
billion yen

State of progress

5G-related services“Cashless”/payment settlement

FY20198.0 billion yen

5.0 billion yen

FY2024 outlook

FY2025 target

Net sales growth of 1.8x andoperating profit growth of 1.9x
Net Sales: 24.5
billion yen
Operating Profit:
4.0 billion yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

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 Business segment, has beenreassigned to the IT Service Business segment; and the subsidiary IDY,
which was also included in the Solution Design Business segment, hasbeen reassigned to the Business Solution Business segment. Results foreach segment for the year ending March 31, 2022 onward have beenrearranged according to these changes.

29

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 toDX
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

Banking

Social infrastructure

PublicsectorDistribution
services

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

Data utilization

Renewal of coresystems

Shifting away from hostbased 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)Numerical targets+20%
increase

19.3

25.3

2.5
billion3.0
billionSales

FY2019FY2020

FY2021

FY2022

FY2023

Net Sales

5.3
billion yen

5.8
billion yen

5.1
billion yen

5.1
billion yen

6.1
billion yen

Operating
Profit840
million yen

1.06
billion yen

860
million yen

1.01
billion yen

1.28
billion 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

FY2024 outlook

Operating Profit:
1.45 billion yen

25.3 development

billion

1.5
billionFY2025 target

Net sales growth of 1.7x andoperating profit growth of 1.8x
Net Sales: 6.9billion yen

New

19.3

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 been reassigned to the Business
Solution 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.

30

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 otherprojects.
In addition to expanding software quality assurance (QA) services, social games, net business andother BtoBtoC services in the entertainment segment, we will also expand the BtoB enterprisesegment.
We will also enhance synergies with Systena Group services, locations and human resources.

Expanding business fields• We aim to increase net sales for contract-type services
such as IT support, IT infrastructure and PMO from thecurrent level of 4.5 billion yen to 8.0 billion yen.

Alliances / enhancing new services /expanding locations
IT support
services

Infrastructureservices

PMO
services

Qualityverification
services

FY2019FY2020

FY2021

FY2022

FY2023

Net Sales

7.8
billion yen

8.7
billion yen

9.4
billion yen

15.7
billion yen

17.8
billion yen

Operating
Profit1.1
billion yen

1.3
billion yen

1.4
billion yen

2.2
billion yen

2.5
billion yen

State of progress• We aim to increase net sales for quality verification
services from the current level of 3.3 billion yen to 6.0
billion yen.
FY2024 outlook

Increase number ofEnhancing IT services
czustomers
Net sales growth of 2.1x andoperating profit growth of 3.0x
Net Sales: 19.4
billion yen
Operating Profit:
2.8 billion yen

FY2025 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 thesechanges.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

31

4. Business Solution Business
Provide solution services aimed at solving management issues faced by customers (such as improving
productivity, reducing costs, and bolstering security) using Systenaʼs overall sales capabilities in orderto create and expand added-value business, and transform into an ICT partner that supports
customersʼ business operations; and link this transformation on to a continuous improvement insales and profits.

Business Strategy

Bolster response to hybrid environments

Expand DX business services
Expand synergies and services from collaboration between Systena Group
companies and divisions
Service business

Existing business

FY2025

FY2025

Numerical Targets

DX business
FY2025+40%
increase+180%
increase+350%
increase

FY2018FY2018FY2018FY2019FY2020

FY2021

FY2022

FY2023

Net Sales

24.0
billion yen

25.9
billion yen

21.4
billion yen

22.3
billion yen

26.5
billion yen

Operating
Profit1.2
billion yen

1.6
billion yen

1.4
billion yen

1.4
billion yen

1.8
billion yen

State of progress

FY2024 outlook

FY2025 target

Operating profit of 6％, net service sales of
11.4 billion yen and percentage sales of 30%
Net Sales: 27.6
billion yen
Operating Profit:
1.9 billion yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Net Sales: 35.39
billiozn yen
Operating Profit:
2.45 billizzzon 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.

32

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 orderto support the transformation of business processes through telework and other forms of workstylereform.
2020

2021

2022

Workstyle reform

2023

2024

2025

Digital transformation (DX)AI and RPA

Measures against personnel shortages

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

A piece of groupware that can beused as an addon for Google
WorkspaceandOffice365.
Itfacilitates improvements in enterpriseproductivity and greater workstyle
diversity.

FY2019FY2020

FY2021

FY2022

FY2023

Net Sales

1.1
billion yen

1.4
billion yen

1.5
billion yen

1.8
billion yen

2.0
billion yen

Operating
Profit200
million yen

200
million yen

300
million yen

400
million yen

390
million yen

State of progress

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

FY2024 outlook
Achieve targets in global business, armed withown-brand products and services and content
based in Japanese culture

FY2025 target
Net Sales: 1.97
billion yen
Operating Profit:
500 million yen

Net Sales: 2.3 billion
yen
Operating Profit:
440 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

33

6. Overseas Business（Systena America Inc. ） We will seek to establish a robust business base in terms of sales and profits, through tech support forJapanese-owned companies, PoC development, expansion of the DX service "Canbus.", and BPO support
services in the US.
 We will also enhance business alliances of AI (ONE Tech, Inc.) and security (StrongKey Inc.) aiming to jointly
maximize sales and profits.

• Expanding support for the development and commercialization of PoC
among start-ups and Japanese companies in the US.
• Enhancing introduction of the DX service "Canbus." and BPO to Japanesecompanies in the US.
• Expanding to Canbus IoT based on our platform Canbus

Business Strategy

PoC development and technicalsupportBPO (outsourcing)DX

Canbus.IoT

Key fields-Remote outsourcing services-

Remo-ote

Start-ups PoC
Software development/verification

FY2019FY2020

FY2021

FY2022

FY2023

Net Sales120
million yen

150
million yen

190
million yen

170million yen

130
million yen

Operating
Profit-30
million yen-20
million yen

7million yen-9million yen-29
million yen

State of progress

FY2024 outlook
Unearh the next newtechnologies and markets

FY2025 target
Net Sales: 640
mizllion yen
Operating Profit:
250 million yen

Net Sales: 180
million yen
Operating Profit:
1 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

34

７．Collaboration with Overseas Business

Systena America

Collaboration

ONE TechCollaboration

Strongkey

Japan
Sales activities
Business Solution
Group

System building anddeployment support
DX Design Group

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.

35

Earnings Forecast for Fiscal 2025
Composition of Net Sales and Operating Profit by Segment
Net sales¥101bil

Operating profit¥15.2bilInvestment &Incubation

Overseas
Cloud

0.6%

0.4%

1.9%

Overseas
Cloud

1.6%

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%

53.3%

10.5%

9.3%

Framework
DesignSolution
DesignFramework
DesignCopyright ⓒ 2010 Systena Corporation All Rights Reserved.

36

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.