Medium-Term Management Plan
Rolling Plan (FY2025/6 to FY2027/6)
System Support Inc. (Security Code: 4396)
August 7, 2024

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

Medium-Term Management Plan Rolling Plan (FY2025/6 to FY2027/6)
Contents
1.

Formulation of Rolling Plan (FY2025/6 to FY2027/6)

2.

Group Corporate Creed, Management Philosophy, and Medium-term Themes

3.

Transition to a Holding Company Structure

4.

Review of the First Year of the Medium-Term Management Plan

5.

Medium-Term Management Indicators (Consolidated) - Summary

6.

Medium-Term Management Indicators (Consolidated) – Sales and Profit Plan

7.

Growth Strategy by Segment - Whole Picture

8.

Growth Strategy by Segment

9.

Human resources strategy

10. Growth Investment Policy
11. Shareholder Return Policy
12. Sustainability Policy
13. Reference Materials
Company Profile
Net Sales Trends and History
Review: FY2020/6 to FY2024/6© 2024 System Support Inc.

2

Formulation of Rolling Plan (FY2025/6 to FY2027/6)
We have reviewed the Mid-term Management Plan Rolling Plan (FY2024/6 to FY2026/6) announced inAugust 2023 to reflect external and internal changes.
Background of formulation of "Rolling Plan (FY2025/6 to FY2027/6)"[External Environment] The market for the Cloud-related business is expected to continue to growsignificantly due to the migration of IT systems from on-premises as well as anincrease in utilization after migration and increasing multi-Cloud support.
 The competition for talent is intensifying【Internal Environment】
 The Cloud Integration Business continues to grow and the composition of thebusiness changes due to the expansion of resale, which is a stock-based revenue.
 Reinforcement of the organization mainly by strengthening Cloud-related engineers
is generally progressing as planned.
 Concluded two M & A contracts in the fiscal year ended June 2024 for the expansionof the service provision system and lineup of services.
 Started preparation for transition to a holding company structure to be commenced
on January 1, 2025

 There is no change to the Medium-Term Themes (specific measures have beenslightly revised).
 The figures have been revised to the plan figures based on the results
for the fiscal year ended June 2024.

© 2024 System Support Inc.

Comparison of planned figures between
announcement in August 2023
and Rolling Plan (FY2025/6 to FY2027/6)Publishedin August 2024

■ Net Sales (consolidated)
22,02921,784FY2024/6*

26,08724,365

FY2025/6（Planned）

Unit: 1 million yen

31,70928,73726,805

FY2026/6（Planned）

Published in August 2023

FY2027/6（Planned）

Published in August 2024

■ Operating profit (consolidated)

Unit: 1 million yen

1,670
1,763

FY2024/6*

2,115
2,189

FY2025/6（Planned）

2,798

2,432
2,407

FY2026/6（Planned）

FY2027/6（Planned）

Published in August 2023
Published in August 2024

* With respect to figures for the fiscal year ended June 2024, projected figures were announced in August 2023 and actual figures have been announced in August 2023.

3

Group Corporate Creed, Management Philosophy, and Medium-term ThemesGroup Corporate Creed (values)

Medium-Term Themes

Sincerity and Creation

Growth and creation of further
innovation

Group Management Philosophy

Contributing to Society
Advanced Customer
Service
Sharing Value

Expansion of services
that form the foundationof DX promotion forcustomers and society••

We will be the first to deploy AI-related
services and new overseas services in theJapanese market.
Focusing on the Cloud Integration Business,
we aim to achieve further growth throughhuman resource development and R & D.

Growth and success ofdiverse human resources• Positioning human resources as thebiggest source of business growth• Implementing aggressive investment
in human resources• Continue to create a comfortableworking environment

Strengthening Sustainability Management•© ©20242024 System
SupportInc. Inc.
System
Support•Strengthening sustainability initiatives
Complying with the revised Corporate Governance Code44

Transition to a Holding Company Structure
The Company is scheduled to transition to a holding company structure on
January 1, 2025 through a company split.
We aim to establish a group management structure that enables dynamic
and flexible decision making for further growth of the Group.
■Holding structure diagram
Holdingcompany

STS Innovation Canada Inc.

STS Innovation, Inc.

Communication Planning Corporation

STS DIGITAL, Inc.

ACROSS Solutions, Inc.

C Co., Ltd.

4STS Medic Inc.

T

© 2024 System Support Inc.

eNet Solutions Co., Ltd.

System Support Inc.

OperatingsubsidiariesRoles of each company in the holding
structure

System Support Holdings Inc.

 Holding company

Promote group-wide management strategies, M & A
strategies, enhancement of corporate governance, etc.

 Operating subsidiaries••

Strengthen the growth and profitability of the existing
businesses, expand into new business areas, anddiversify profit models.
Cultivate the next generation of management personnel
by assigning management to competent personnel.

* The Company will transition to a holding company structure througha company split and change its corporate name in line with thetransition, subject to the approval by the resolution of the Ordinary
General Meeting of Shareholders scheduled to be held on
September 26, 2024, as well as the necessary approvals andpermissions by the relevant authorities.

5Review of the First Year (FY2024/6) of the Medium-Term Management Plan
Item

Numerical planningMediumterm
themes

Review of the first year (FY2024/6)

 Net sales increased 1.1% compared with the plan (+ 14.3% YoY), whereas operating
profit decreased - 5.2% compared with the plan (+ 14.7% YoY).
 By segment, the Cloud Integration Business performed well, and the System
Integration Business fell short of the plan Factors behind the failure to achieve the operating profit ratio included expenses
related to two M & As (30 million yen) and bad debt losses and the related
provision of allowance for doubtful accounts (57 million yen)

Expansion ofservices that form
the foundation of
DX promotion forcustomers andsociety In addition to services related to ServiceNow, AWS, and Microsoft Azure, whichhave been the long-standing pillars of the Cloud Integration Business, services
related to Google Cloud have grown to be the fourth pillar.
 Expanded the lineup of AI-related services, including Azure OpenAI and Amazon
Bedrock.
 Resale, a stock-based revenue, expanded as customers moved to the cloud andincreased data usage.

Growth andsuccess of diverse
human resources Reinforcement of the organization mainly by strengthening Cloud-related engineers
through recruitment and training is generally progressing as planned.
 Continue to develop an environment to meet the diversifying needs of employees

Strengthening ESG
management

 Continue efforts to enhance the quality of corporate governance Strengthening full-scale disclosure of sustainability information
 Support for the promotion of DX by industry, academia, and public and private
sectors through the provision of free DX education at Microsoft Base Kanazawa, etc.

© 2024 System Support Inc.

6

Medium-Term Management Indicators (Consolidated) – Summary
Planned CAGR of Net Sales: 12.9% or more
Planned CAGR of Operating Profit: 18.8% or more

Net sales

14.43 billion yen
Operating profit

930 million yen

Operating profit ratio

6.5％

Net sales

22.02 billion yen
Operating profit

1.67 billion yen

Operating profit ratio

7.6%

Net sales

31.70 billion yen or
more

Operating profit

2.79 billion yen or
more

Operating profit ratio

8.8% or more

FY2021/6
FY2024/6

FY2027/6 (Planned)

Medium-Term Management Plan Rolling Plan (FY2025/6 to FY2027/6)© 2024 System Support Inc.

7

Medium-Term Management Indicators (Consolidated) – Sales and Profit Plan We aim to Increase profits by focusing on the highly profitable Cloud Integration
Business.

■Net sales (consolidated) *1
Unit: 1 million yen

CAGR

12.9％以上

35,00030,00026,08725,00020,00015,00019,267■Operating profit/profit ratio(consolidated) *2

22,02931,70928,737

3,000

1,456

1,670

1,196
7.4%

7.6%

7.6%

8.1%

8.5%

500

5,000
0

2,432

2,115

2,000

1,000

10,000

18.8％

2,500

1,500

16,198In the plan, operating profit of each segment will
increase or decrease depending on the
Unit: 1 million yen
allocation of common SG & A expenses suchas head office expenses (prorated to each
CAGR（Operating profit）
20.0%
segment according to incurred costs), while
2,798
gross profit of each segment will grow steadily.
以上

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)■ Cloud integration© 2024 System Support Inc.

0

18.0%
*3
16.0%■Gross profit (consolidated)
10,000
Unit: 1 million yen
14.0%
8,000
12.0%
6,091
5,227
6,000
10.0%
4,336
8.0%
8.8% 4,000
6.0%
2,000
4.0%

0
2.0%
FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)■ System integration ■ Outsourcing■ Product■ Overseas

0.0%

ー Operating profit ratio*1Net sales are sales to external customers. *2 Operating profit is the amount after adjustment for operating profit in the consolidated financial statements.
＊3 The amount of gross profit is after adjusting gross profit in the consolidated financial statements.

(Planned) (Planned) (Planned)8

Growth Strategy by Segment - Whole Picture* The size of circle is the amount of sales.

Growth potential
The most important business driving the Group’s
growth. Taking advantage of market growth, wewill actively invest in expanding new areas suchas AI and promoting existing businesses, andsecure stock-based revenues through resale.

Cloud Integration BusinessOutsourcing Business

Overseas Business

Product Business

Steadily expand sales and profit byaccumulating stock-based revenues,
mainly in our own data center.

System Integration Business© 2024 System Support Inc.

In addition to research on the mostadvanced IT information in North
America, we have strengthened
the system to ensure that thisbusiness alone generates profits.

Steadily secure sales and profits as a stable business. In addition,
we will provide a diverse lineup of services in this business tocustomers in other businesses to support them to receive orders.
We will also encourage engineers to shift their skills to the cloud
sector, contributing to a high growth of the entire Group.

Steadily build up stock-based
revenues such as license fees andexpand a high-margin and stableearnings structure.

Profitability
9Growth Strategy by Segment (Cloud Integration Business)(1)Business outline: Technical support for migration and use of cloud services (ServiceNow, Microsoft Azure,
AWS, Google Cloud, etc.) and resale of licenses, etc. (Resale) In this business, a driving force of our Group, we will actively invest in expanding ourscope of business and growing our existing businesses, while also expanding thevirtuous cycle in which training engineers leads to increased orders.

1 Expansion of the corresponding area

Expand the range of services by investing in AI-related services and new overseas services inorder to be the first to deploy such services in the Japanese market.

2 Expansion of existing businesses

Focusing on AWS, Microsoft Azure, Google Cloud, and ServiceNow, which are the mainstays ofthis business, we will promote the recruitment and training of engineers and further enhancecustomer convenience as well as strengthen the development of unique services to improve theproductivity of our Group, aiming to differentiate ourselves from other cloud integrators.

Training cloud-related
engineers will lead to anincrease in orders, andmarket growth will further
grow our business.

Expansionof orders■Net sales of Cloud Integration Business

Unit: 1 million yen

16,00080%

14,00012,00010,000
8,000
6,000
4,000

60%

31% 7,217
29% 5,319
35%
3,388

40%
20%

2,000
0

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)© 2024 System Support Inc.

0%

OthersGoogle Cloud
Microsoft Azure
AWS
ServiceNow
Ratio of stock (resale) sales

Engineertraining andknow-how
accumulation

Strengthening
relationships
with global IT
vendors

Strengthens relationships with
global IT vendors by gaining
technical certifications andrecognition

Actively invests in training cloud-related engineers
10Growth Strategy by Segment (Cloud Integration Business)(2)Stock revenue (resale) accounted for 35% of net sales of Cloud Integration Business

The Company resells cloud accounts (pay-as-you-go or bulk purchases based on data usage) to customers when they use cloud infrastructuresuch as AWS, Microsoft Azure, and Google Cloud.
Cloud integration business
Sales composition ratio(FY2024/6)
ServiceNow

Cloud Platform Migrationand Usage Support（AWS,

Microsoft Azure, Google Cloud,
Others ）■Flow of cloud platform
migration and usage support(creation of cloud environment)▼

After cloud
migration© 2024 System Support Inc.

(Delivery)▼
Operation andmonitoring
Resale■ Cloud platform services (IaaS/PaaS)
market trends and forecasts *(100 million yen)

FY2021 to FY2027 (Forecast)
CAGR■ Changes in resale net sales in net sales for
Cloud Integration Business

19.6%

単位：百万円Our main services
Proposal and design
Before cloud ▼Migration and usage
migration
supportExpansion of the Cloud Market

Resale revenues：
Resale revenues will expand to be stockbased revenues without labor cost as
customers migrate to Cloud and increase
their data usage.

+51.0％

2,500

Period overperiod

4Q
2,000

648

13,000

16,10019,40032,30027,400

1,648

3Q
1,500
1,000
2Q

759
153
141
273
191

500
1Q
0

2,490

23,10038,000

773
216
212
181
163

991
273
216
287
214

420
424
470
333

736
653
452

FY2020/6 FY2021/6 FY2022/6 FY2023/6 FY2024/6
*

2021

2022

2023

2024
2025
2026
2027
(Forecast) (Forecast) (Forecast) (Forecast)

Note 1: Business operator's net sales base Note 2: Forecasts for 2024 andsubsequent years
Note 3: Market size does not include Software as a Service (SaaS)“Survey on the Cloud Platform (IaaS/PaaS) Services Market (2024),” by Yano Research Institute, Inc., announced on April 23, 202411

Growth Strategy by Segment
Business outline

SystemIntegration
Business

Technical support for
the introduction anduse of ERP packages,
construction of
infrastructure suchas Oracle database,and IT system
consulting, design,development,
operation, andmaintenance

Growth strategy■Expansion of existing businesses

Application development andother various technologies inthis business support orders in
the Cloud Integration Business.

Provide a variety of services such as application development
to customers in other businesses, including the Cloud
Integration Business.

■Strengthening project management

Continue project management from the perspective of quality,
duration, cost, and risk control to curb the occurrence of
unprofitable projects and improve service quality.

AI-related and other unique services as a hook tool to build
up the numbers of customers and subscription fees per
customer.

■Continuous data center facility expansion

We will gradually increase equipment at our Group’s data
centers in Kanazawa and Tokyo according to operating status,achieving both quality improvement and profitability.

■Expansion of ERP near-shore

With the need for maintenance of ERP products, centered on
SAP ERP, expected to increase toward 2027, Our Company isstrengthening its system by training near-shore personnel inthe Kanazawa area.
© 2024 System Support Inc.

Percentage of direct transactions: 67.1%*1
Customer repeat rate: 85.1%*2■Provide customers with a variety of options■Data center expansion
Outsourcing Our Group’s private
cloud and other data Target customers different from major cloud users, and use
Business
center services, data
analysis and input,
and near-shore
system operationand maintenance

Client Companies

Steadily recruit and train engineers and secure orders for
ERP-related, database-related, RPA-related, and other IT
system development, which are the mainstay of this business.

SystemIntegration
Business Shift engineers’ skills

Cloud Integration
Businessto the cloud sector.

■ Net sales of Outsourcing Business and ratio of stock sales(annual and monthly data center fees) against net sales
Unit: 1 million yen

3,000
2,500
2,000
1,500
1,000

75% 73%

90%

69%

2,043
1,772
1,541

60%

30%

500
0

FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)*1 Percentage of our net sales for FY2023/6. *2 Percentage of customers with sales recorded by Our Company in FY2021/6 who continued to record sales in FY2022/6

0%

Net sales

Ratio of
stock
sales

12

Growth Strategy by Segment
Product
Business

Business outline
Development, sales,
and customization of
products (software) by
Our Group
Mainly cloud-based
products (monthly
billing system)

Growth Strategy■Maintaining and improving stable highprofitability

By increasing non-customized sales, we will strengthen the
structure in which increased sales lead to higher profits. We
will accumulate stock-based sales such as monthly usage fees
to ensure stable high profit margins.

■Customer expansion

In order to increase new customers, Our Company will expand
sales channels for agents and strengthen advertising andpublicity.

■Functional enhancement

Continue to enhance existing products to reduce lead time until
introduction and improve competitiveness against othercompanies’ products.

Overseas
Business

System integration
overseas (in the U.S.
and Canada),
outsourcing of payroll
and accounting
services, recruitment
services, and media
management■Net sales of Product Business and ratio of stock
sales (monthly usage fees, etc.) against net sales
Unit: 1 million yen

1,000
800
600
400

100%

670 693

769

80%
60%

57% 58%
52%

40%

200
0

20%
FY2022

FY2023

FY2024FY2025 FY2026 FY2027(Planned) (Planned) (Planned)

Net sales
Ratio of
stock
sales

0%

■Expansion of cutting-edge services in Japan

Collecting cutting-edge IT information to develop promisingbusinesses in Japan.

■Support for companies entering North America
Support for IT infrastructure, recruitment, and marketing ofJapanese companies entering North America.

■Strengthening outsourcing services

Strengthen remote monitoring services for Japanesecompanies using the time difference between Japan and North
America and outsourcing services for Japanese companies in
the U.S.

The subsidiary in Canada
provides outsourcing services
to Japanese companies in the
United States.

★
★ ★

Support companies entering
North America and provide
remote monitoring service
using time difference★: Group bases© 2024 System Support Inc.

13

Human resources strategy
Positioning human resources as the source of business growth, we aim to create newcorporate value through “Active recruitment and promotion of diverse humanresources," “Human resource development," and “Comfortable working environment."■Personnel plan (consolidated)

Recruitment and development measures

1
2
3

Active recruitment activities

Instead of recruiting all employees at the head office, we assign arecruiting manager to each location for flexible recruiting and to prevent
mismatches between applicants.

Development of IT engineers

Investing to maintain and improve competitiveness, including acquisitionof vendor qualifications mainly in the cloud field.

Raising salary levels and creating a
comfortable working environment

We plan to continue to increase the number of
employees by approximately 10% every year withthe aim of achieving both active recruitment and acomprehensive human development system.
*Effect of an increase in personnel due to M & A in
2000 the fiscal year ending June 2025.

1,722

1500
1000
500

Aiming to improve salary levels and to promote healthmanagement, diversity inclusion and equity, we set and achievetargets for the ratio of female employees, the ratio of employees
taking paid leave, and the ratio of employees taking parental
leave.

0

1,126
949

9.2%
5.9%
177

1,233
1,039

9.1%
4.9%

1,348

1,134

Unit: People

1,884

2,051

1,484
1,254

11.9%
5.4%

6.4%

214

230

194

30.0%
25.0%
20.0%
15.0%
10.0%
5.0%

FY2021/6 FY2022/6 FY2023/6 FY2024/6 FY2025/6 FY2026/6 FY2027/6(Planned) (Planned) (Planned)

0.0%

Engineers
Retirement rate
Turnover rate in the information and communications industry*© 2024 System Support Inc.

* Source: Ministry of Health, Labor and Welfare, Turnover Rate by Industry of Employment Trend Survey

14Growth Investment Policy
Accelerate growth by investing cash generated from business activities
for developing new areas and strengthening business foundations.
20~24 billion yen

Policies in each sector
 Investment in human resources

Positioning human resources as a source of business growth,
we will invest mainly in “active recruitment and appointment ofdiverse human resources” and “human resources
development” (see page 14 for human resources strategy)

1.28 billion yen R & D investment

Focus on considering the development and strengthening ofservices, especially AI and cloud services.

 M & A investment
FY2022/6 to FY2024/6(cumulative)

FY2025/6 to FY2027/6(plan and cumulative)

Dynamic implementation of M & A to expand the service lineup
and resources in growth areas.

■ Investment in human resources (recruitment-related expenses)■ Investment in human resources (training expenses)■ Research and development (R & D) expenses ■ M & A-related expenses© 2024 System Support Inc.

15

Shareholder Return Policy
Dividend policy
Our basic profit distribution policy is to continue to pay progressive dividends to shareholders
and increase the level of dividends in accordance with our performance and profit level, while
investing in future growth and strengthening our management structure.
Enhancement of shareholder
returns through sustainableprofit growth

Unit: Yen

■ Dividend trend ＊48
40

Shareholder returns
Progressive
dividends＋

Increasing the level ofdividends in line with
our performance andprofit levels

Growth investment
Sound financial base© 2024 System Support Inc.

32
25

24
22

17

13
21
1.5

FY2019/6

10FY2020/6

FY2021/6

Interim dividends

12
FY2022/6

15
FY2023/6

18
FY2024/6

24

FY2025/6（Forecast）

50
45
40
35
30
25
20
15
10
5
0

Year-end dividends* Our Company conducted a 2-for-1 stock split of shares of common stock on June 1, 2020, and the figures for FY2019/6 in this graph have been retroactively adjusted.

16

Sustainability Policy
Address social issues through sustainability management based on the
management philosophy.

Efforts to date
Environment

E

Advanced
Customer
Service

Contributing
to Society• The Sustainability Committee was establishedto plan and study sustainability measures.
• Implement CO2 emission reduction activities
using renewable energy.
• Start of information disclosure on sustainability

S• Promote health management, diversity
inclusion, and equity initiatives for theadvancement of diverse human resources.
• Expanding the activities of Microsoft BaseKanazawa with the aim of expanding local
businesses and revitalizing the economy
through development of DX human resources.

• Establishment of various committees andimprovement of systems to improve corporate
governance• The Board of Directors is composed tostrengthen corporate governance and ensure
diversity (Four independent outside directors
and three women out of nine directors).

• Aim to improve the response and quality of
the revised Corporate Governance Code.
• Continue to work to strengthen corporate
governance and ensure diversity in thecomposition of the Board of Directors.

Sharing Value
GovernanceG© 2024 System Support Inc.

• Set CO2 emission targets and implement
further reduction measures• Expand a disclosure system in line with the
TCFD, and respond to CDP and improvescore• Development of IT engineers• Realization of diverse human resources
employment and work styles• Contribution to local communities andlocal administration

Society

Management
philosophy

Efforts to strengthen

17Reference Materials

18Company Profile
Company name

System Support Inc. (STS)

Location

9F Rifare, 1-5-2 Honmachi, Kanazawa-shi, Ishikawa Prefecture

Founding

January 1980

Listed market

Tokyo Stock Exchange Prime Market (security code: 4396)

Capital

723 million yen

Net sales

22,029 million yen (FY2024/6, consolidated)

Representative

Ryoji Koshimizu, Representative Director

Number of
employees

1,484 (as of June 30, 2024, consolidated)

Group bases

Tokyo, Nagoya, Osaka, and Kanazawa (headquarters),
United States (Silicon Valley, LA), Canada (Vancouver)Business outline ■Cloud Integration BusinessTechnical support for migration and use of cloud services (ServiceNow,
Microsoft Azure, AWS, Google Cloud, etc.) and resale of licenses, etc.

The head office is located in Kanazawa City, and the center ofbusiness including employees and customers is Tokyo, Nagoya,
and Osaka.
85% of employees are engineers

Overseas (U.S. & Canada)
13
Kanazawa 288
Tokyo 771
Nagoya 194
Osaka 218

■System Integration Business

Number of employees by region(as of June 30, 2024, consolidated)

Technical support for the introduction and use of ERP packages, constructionof infrastructure such as Oracle database, and IT system consulting, design, development, operation, and maintenance■Outsourcing Business

Our Group’s private cloud and other data center services, data analysis and input, and near-shore system operation andmaintenance■Product Business

Development and sale of products (software) by Our Group, and customization according to user companies’ applications■Overseas Business© 2024 System Support Inc.

Overseas system integration, outsourcing of payroll and accounting services, recruitment services, and media
management

19Company Profile – Net Sales Trends and History
We continue to experience high growth through astrategy of investing in training of cloud and otherengineers and actively expanding services of global IT
vendors in Japan(1 million yen)

25,000Entered a Celonis Partner Program Agreement with CELONIS K.K.
Entered a Subcontractor Agreement with Automation Anywhere, Inc

20,000Entered a Google Cloud & Google for Education Commercial Partner Program Agreement with Google Cloud Japan G.K.
Received Microsoft Cloud Platform Gold Competency certification

15,000Received Microsoft Cloud Platform Silver Competency certification
Entered a PartnerNow Master Terms with ServiceNow Nederland B.V.

10,000Entered an APN Consulting Partner contract with Amazon Japan K.K.
Entered a SAP Service Partner contract with SAP Japan Co., Ltd.

5,000

Entered an Oracle EBS Technical Partner contract with Oracle Corporation Japan'80/12 '82/12 '84/6

'86/6

'88/6

'90/6

'92/6

'94/6

'96/6

●Established System Support Inc. in Kanazawa City, Ishikawa Prefecture

'98/6

'00/6

'02/6

'04/6

'06/6

'08/6

'10/6

'12/6

'14/6

'16/6

●eNet Solutions Co., Ltd. financed and founded●Nagoya Office opened●Tokyo Office opened

'18/6

'20/6

'22/6

'24/6

0

●Listed on TSE Mothers●Osaka Office opened●Listed on TSE First Section●STS Medic Inc. financed andfounded●Moved to TSE Prime●Acquired shares of T4C Co., Ltd., andmade it a subsidiary●STS Digital Inc.
financed and founded●Acquired shares of Across Solutions, Inc. and made it a subsidiary●STS Innovation, Inc. financed and founded in California, USA© 2024 System Support Inc.

* Net sales are consolidated from FY2016/6, and unconsolidated before that.

●STS Innovation Canada, Inc. financed andfounded in Vancouver, Canada

20

Review: FY2020/6 to FY2024/6 (1) Net sales were driven by Cloud-related business and CAGR was 13.3%.
 Operating profit grew at a CAGR of 22.0% and the operating profit rate increased by 2.0
percentage points due to the expansion of profitable businesses such as cloud-related
businesses.
■Net sales (consolidated)

25,00020,000

Unit: 1 million yen

CAGR

13.3％

■Operating profit/profit ratio (consolidated)
CAGR（Operating profit ）22.0％

22,02919,267

13,376

1,670
1,456

16,19815,000

Unit: 1 million yen

10.0%

754

5.6%

5,000

16.0%
12.0%

931

10,000

18.0%
14.0%

1,196

14,431

20.0%

8.0%
6.5%

7.4%

7.6%

7.6%

6.0%
4.0%
2.0%

0

FY2020/6© 2024 System Support Inc.

FY2021/6

FY2022/6

FY2023/6

FY2024/6

0

FY2020/6

FY2021/6

FY2022/6

FY2023/6

FY2024/6

0.0%

21

Review: FY2020/6 to FY2024/6 (2)■Management indicators (consolidated)■Investment-related expenses (consolidated)
Unit: 1 million yen

5.0%

600

¥140

CAGR

18.0％

500

4.0%

400
3.0%
300

2.1%

2.3%

2.1%

2.1%

2.0%

200

0

¥100
¥80

2.4%

1.0%

100

¥120

FY2021/6

FY2022/6

FY2023/6

FY2024/6

M & A-related expenses
Research and development expenses
Training expenses
Recruitment-related expenses
Percentage of net sales© 2024 System Support Inc.

0.0%

20.5%
14.8%

16.9%

¥40

¥0

¥45
FY2020/6

26.7%

24.5%

17.1%

30.0%
25.0%

19.1%

19.0%

20.0%
15.0%

¥60

¥20
FY2020/6

25.0%

26.8%

¥65

FY2021/6¥76

FY2022/6

¥98

¥118

10.0%
5.0%

FY2023/6

FY2024/6

0.0%

Earnings per share

Return of equity
Return on invested capital
22

Disclaimer and Forward Looking Statements
This document has been prepared by System Support Inc. (hereinafter referred to as “Our

Company”) for the purpose of providing investors with an understanding of the current
status of Our Company.
The contents of this document are prepared based on economic, social, and otherconditions generally recognized as prevailing at the time this report was prepared, as wellas certain assumptions that we have judged to be reasonable, but may be subject to change
without notice due to changes in the business environment or other reasons.
The materials and information provided in this presentation include so-called “forward
looking statements.” These statements are based on current expectations, projections, andassumptions with risks and involve uncertainties that could cause results to differ materiallyfrom those in the statements.
Such risks and uncertainties include general industry and market conditions, and generaldomestic and international economic conditions such as interest rate and currency
exchange rate fluctuations.
For further information, please contact:
Investor Relations, Administrative Planning Department, System Support Inc.
TEL: 076-265-5151 E-mail: ir@sts-inc.co.jp© 2024 System Support Inc.

23

Thank you