Financial Results
Presentation for the Fiscal
Year Ended March 31, 2024
M a y 1 3 , 2 0 2 4
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】【Listed Monetary andCommodities Exchange】【Capital Stock】【Number of outstanding shares】

Representative Director： Yoshichika Hemmi Director ： Hiroyuki Fujii
and Chairman
Director ： Shingo Hemmi
Representative Director： Kenji Miuraand President： Makoto Taguchi
Director ： Hiroshi Kotani
Director【Auditor】 Full-time Corporate Auditor(Outside Corporate Auditor) ： Tshiji Arita【Number of Employees】

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

Non-Consolidated:4,440/Consolidated:5,980 (As of Apr. 1, 2024)► Planning, design, development and verification support for

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

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

IT Service Business► Provision of IT outsourcing services including

Business Solution Business

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

Cloud Business►

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

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

TSE Prime market

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

► Offering and supporting introduction of

Google Workspace, Microsoft Office 365,
and other cloud services► IT-related products for corporate customers, suchas servers, computers, peripherals, and software
Provisionof infrastructure building, virtualization►and other IT device/equipment-related services► Provision of RPA solutions

Overseas Business

Investment & Incubation Business► Mobile communication-related technical► Planning and management of social

support, development and verification
support , provision of various solutions► Trend research and commercialization ofgames for mobile, smartphone, PC by
subsidiary GaYa

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 2024
（Consolidated）＜YoY rate＞
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

4

Financial Results （Consolidated）
With the normalization of economic and social activities since the COVID-19 pandemic and downwardrisks to the economy posed by a global credit crunch to control inflation and an uncertain internationalsituation, we redoubled our focus on recurring-revenue businesses and sought to expand high valueadded businesses in the software development business, among other areas. As a consequence, net
sales increased 3.2% year on year to 76,940 million yen. However, operating profit stood at 9,713
million yen, down 1.3% year on year, due to the negative impact of unprofitable projects.
（in millions of yens）

2024/3
Amount2023/3
Profit ratio

AmountProfit ratio

Amount ofchangeYoY rate

rate ofchangeNet
sales

76,940－74,526

－

2,414

3.2％

Operatingprofit

9,713

12.6％

9,844

13.2％

▲130

▲1.3％

Ordinary
profit

9,942

12.9％

9,955

13.4％

▲13

▲0.1％

Profit attributable toowners of parent

7,232

9.4％

7,317

9.8％

▲84

▲1.2％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

5

Point 1
Solution Design Business

Net Sales

Year-on-year

21,267 million yen ▲5.0％

Operating Profit

2,717 million yen

Year-on-year▲30.8％

 Demand for the development of next-generation mobility solutions was brisk in the in-car sector. We
will continue to focus our efforts on increasing orders.
 In the DX service sector, orders for the renewal of core systems, development using low-code/nocode tools and our own services increased. We will continue to proactively develop our own services.
 An unprofitable project, which was generated in the first half in the net business sector, was resolved,
but there were lost opportunities caused by the impact of the project and lost sales opportunities due
to resources being allocated to deal with the situation. We started to work on strengthening ourorganizational capabilities in the fourth quarter under review, and earnings trended toward
improvement.
Framework Design BusinessYear-on-year

Net Sales 6,901 million yen +13.2％

Year-on-year

Operating Profit 1,642 million yen +28.3％

 In the financial sector, an increase in the number of inquiries, especially inquiries regarding DXrelated projects, resulted in higher sales. We are expanding into the securities and payment
sectors in addition to areas such as development of new services and cloud business.
 In the public sector, the number of inquiries increased, especially inquiries related to My Number
and Government Cloud projects. We expanded into projects for local governments, in addition toprojects for central government offices, which resulted in an increase in orders.
 We strengthened measures for DX solutions mainly through low-code development. We haveacquired 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 18,297 million yen

Year-on-year+3.1％

Operating Profit

Year-on-year

2,922 million yen +15.9％

 To address the potential issues of customers, we focused on expanding accompanying guide runner-type PMO
services that help customers facilitate operational improvements such as the introduction of various tools andthe reestablishment of business processes.
 We strengthened client analysis to learn about customers' IT investment plans and IT events. We
strengthened sales activities targeting sectors where we previously did not have deals to receive orders fromthe departments of existing customers we have not had deals with before.
 We focused efforts on developing new customers to acquire loyal clients for the future.
Business Solution BusinessYear-on-year

Net Sales 28,434 million yen +7.3％

Year-on-year

Operating Profit 2,054 million yen +16.7％

 Despite the uncertain outlook associated with the depreciation of the yen, rising materials prices, thehigh cost of living and other factors, we are stepping up sales activities to help the economy return tonormalcy.

 In the system integration business, we received orders for migration to a cloud environment for
digitalization, system development projects, and maintenance services.
 In the system integration business, we received orders for migration to a cloud environment for
digitalization, system development projects, and maintenance services.
 The number of inquiries increased for projects that require one-stop services, high value-added
solutions that include the understanding of roadmaps, the introduction of IT equipment, theconstruction of IT infrastructure, the utilization of the cloud and the development of systems, as wellas maintenance/operation projects.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

7

Point 3
Cloud BusinessYear-on-year

Net Sales 2,119 million yen +5.6％

Operating Profit 372 million yen

Year-on-year▲3.7％

 Strong inquiries regarding the generative AI and Canbus.-based facilitation of DX.

 The number of orders for PMO and integration for operational reforms
increased from the customers using Canbus. to facilitate their DX.

 The number inquiries from Google and Microsoft increased, reflecting strong demandfor projects that support DMARC.
Overseas Business

Net Sales 129 million yen

Year-on-year▲3.4％

Year-on-year

Operating Profit ▲27 million yen +1 million yen While system development and verification services for some manufacturing companies
decreased, we stably received orders for projects for system development andverification from other mobility-related companies.
 We received repeat orders even for projects for the development of PoCs in which
Japanese companies verify start-ups' technologies.
 Group company StrongKey saw an increase in inquiries related to FIDO and those on
the unified standard of Smart Home (Matter).
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

8

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

2024/3
AmountSolution
Design2023/3

Sales Distribution
ratio

AmountYoY rate

Sales distribution
ratio

Amount of change

rate ofchange21,26727.6％

22,37530.0％▲1,108▲5.0％

Framework
Design

6,901

9.0％

6,095

8.2％

806

13.2％

IT Service

18,29723.8％

17,753

23.8％

544

3.1％

Business
Solution

28,43437.0％

26,510

35.6％

1,924

7.3％

2,119

2.7％

2,007

2.7％

111

5.6％

Overseas

129

0.2％

134

0.2％

▲4

▲3.4％

Investment
Incubation

187

0.2％

309

0.4％

▲122

▲39.5％

Adjustment

▲396

▲0.5％

▲660

▲0.9％

263

―

Total

76,940100.0％

74,526100.0％

2,414

3.2％

Cloud

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9

Financial Results （Consolidated, YoY rate）
Operating profit by Segment
2024/32023/3
Profit ratio

Amount（in millions of yens）

YoY rate

Profit ratio

AmountAmount of change

rate of change

Solution
DesignFramework
Design

2,717

12.8％

3,926

17.5％

▲1,208▲30.8%

1,642

23.8％

1,279

21.0％

362

28.3％

IT Service

2,922

16.0％

2,521

14.2％

401

15.9%

Business
Solution

2,054

7.2％

1,760

6.6％

293

16.7%

Cloud

372

17.6％

386

19.3％

▲14

▲3.7%

Overseas▲27▲21.6％▲29▲21.8％

1―

Investment
Incubation

33

17.7％

▲0

▲0.2％

33

―

Adjustment

―

―

―

―

―

―

Total

9,713

12.6％

9,844

13.2％

▲130

▲1.3％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

10

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

Cloud

Overseas

Net sales¥76,940ｍil

0.2%

Investment &Incubation

2.7%

0.2%

3.8%

21.1%

27.6%

37.0%

Cloud

Business
Solution

Solution
DesignBusiness
Solution

Operating profit¥9,713ｍil

Framework
DesignIT Service

30.1%

IT Service

23.8%
Adjustment

Solution
Design28.0%
Framework
Design

17.0%

9.0%
▲0.5%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Overseas▲0.3%
Investment & Incubation
0.3％
Adjustment
ー%11Earnings Forecast for2025/3(Consolidated, Full Year)

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12

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

2025/3

Earnings Forecasts
Profit ratio
Amount2024/3
AmountYoY rate

Profit ratio

Amount of change

rate of change－

8,059～
23,05910.5％～
30.0％

Net
sales

85,000～100,000－

Operatingprofit8,500～
10,500

8.5％～
12.4％

9,713 12.6％▲1,213～786▲12.5％～
8.1％

Ordinary profit

8,500～
10,500

8.5％～
12.4％

9,942 12.9％▲1,442～557▲14.5％～
5.6％

Profit attributable toowners of parent

5,900～
7,300

5.9％～
8.6％

7,232

▲1,332～67▲18.4％～
0.9％

76,940

9.4％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

13

Solution Design Business and Clouds Business

Customer ValueManagement
focused on
profitability

Management focused on sales

Aggressive investment in growth areas
Invest with a focus on AI and nocode development, as well as a
DX promotion PMO

Mobility

Launch of a next-generation
mobility business

AI・IoT

Support for
DX promotion

Linkage withsmartphones

Maas

Big data

DX promotion supportPMO

ECU related

Autonomous
driving

IoT

Validation of a POC involving
advanced technologies

Sharing

Display
Audio

Robot

No-codeGenerative AI
I
Creating sales opportunities
and securing human resources
are issues.

Proactive hiring

Improvement ofworking conditions

Attractive working
environments

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Attractive growth
opportunities

14Appendix — Demand for Engineers and DX Personnel —With the rising cost of DX support personnel becoming a serious issue, the mainstream trend is to secure
personnel at an early stage and quickly push through with DX.
COVID-19
2023

Invoice support

Wars

Global increase in the cost of living

Soaring fuel expenses
2024

2025

2026

2026

Response to the Electronic
Books Maintenance Act

Improvement of work
environments Trend
towards productivity
improvements

Cliff of 2025

The 2024 Problems in thelogistics industry

Termination of SAP support
programs

Decrease in the profit oftransportationcompanies

Increased logistics costs
Nearly all industries will beaffected.

The maximum annual overtime
work hours will be 960 hours.

• Increase in the number of systems
treated as legacy systems• Intensification of the IT humanresources shortage• Aging and retirement oftraditional IT human resources• Soaring cost of system operationand maintenance

SAP engineers
Sharp growth indemandDecrease in thenumber of logistics
workers

IT human resources market• New technologies are notsupported.
• Termination of support programsfor various services• Progress in the digitalization of
the market• Cybersecurity risks

Demand↑: Continuing to increase
Supply↓: Continuing to decrease

Trends in listed companies' policies for survival
Even if it definitely increases IT personnel expenses, companies want to takenecessary measures as quickly as possible by securing capable personnel.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

15

Appendix — DX Promotion and Its Relevance to Varieties of Themes —16

Pioneering projects in each era reflect these themes and changes in major transactions.
ChatGPT POC
SupportGenerative AI

DX and teleworking

Wars and the soaring prices of raw
materials

The 2025 Digital Cliff problem

Shortage of IT
human resources

Termination of SAP support programs

Automation and theimprovement of work
efficiency

Cloud

Digital personnel
training
Regulation of long
working hours

IOT for the
primary industry

IoT

No-codeIOT for thesecondary industry
工場

RPA

IOT foroffices

Data linking

IOT for conference rooms
IOT for lavatories

Cloud gateway formobileapplications
The Basic Act on Cybersecurity
2014 - 2017

Utilization of public andprivate sector data

Work style reform

Promotion of DX（METI Guidelines）

2017 - 2020
COVID-19
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2020 -2023

16

Framework Design BusinessAccelerate the expansion of sales using management strategies that consider inflation. Acquire newvalue through active investment in advanced areas.

Basic Policy

Overview of the FWD Division's businesses and its management issues

FWD Division's Sales Trend
100 million yen

115%

80

113％

70
60

118％
114％

50

Goal for the
43rd term
Sales: 8.0
billion yen or
higherIncrease fromthe previous
term: 15% orhigher

40
30
20
10
0

39th
term

40th
term

41st
term

Markettrendsfor IT personnel
1 Demandremains high

42nd
term

2

42nd
term

Currently
The Division eliminated its
dependance on the financial
sector due to trends in policy
measures such as measuresrelated to My Number and
Government Cloud, as well as
growing demand for personnel
against the backdrop of thepromotion of DX. Sales continued
to grow due to the expansion of
the business portfolio in the
public and corporate sectors.
⇒ Double-digit growth wasachieved in three consecutive
terms

Issues
The increase in the topline has beenslowing because the speed ofhuman resources development has
been unable to catch up with thegrowth of market needs.
We need to push forward with theenhancement of resources usingmeans other than the training of
new graduates.

Continuing trend centeredaround cloud technologies

3

Growing demand foradvanced technologies

The FWD Division's business strategies are linked to the corporate policies

Actively invest in growth areas toexpand the businesses' market shares
Proactive management with a focus on sales and value

Build an appropriate recruitment system
to secure IT human resources
Improvement of working conditions and securing of work-ready human resources

Divisions collaborating to maximize
proposal-making capabilities

Expansion of the value of services provided as ALL SYSTENA solutions

Strengthen competitiveness by creating a
multi-skilled organization system
Organizational structure that achieves one-stop services

Sustainable growth and maximizationof service value

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17

IT Services(i) Establishment of new businesses andstrengthening the sale of systems

ITO *Information Technology Outsourcing
Headquarters

The ITO Promotion
Team has been newly
created.

Business
Unit

Sales Group

Sales Planning

ITO services

New:

Measures to increase ITM service value

IT-based office work

Sales support

System operation

Support for system construction

System development support, etc.

Item

Descriptions

Sales for the
introduction ofservice packages

Strengthening the sales structure to promote
the introduction of service packages• Incident management optimization service• SaaS tool integration and management service• Service to increase the efficiency of personnel
affairs, labor affairs and accounting systems• Data management service

ITO Promotion TeamSales for the
introduction ofservice packages

Inbound sales

Outbound sales

Inbound sales

Promoting sales
with a focus onpackaged services

Strengthening
inboundadvertising, etc.

Collaboration with
the ITO Promotion
Team

Strengthening measures for inbound tourists• Exhibitions, seminars and mail magazines• Project/job referral media• Enhancement of HP, LP and WP• Internet advertising

Outbound sales

Strengthening the sales system foroutbound sales

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18

(ii) Enhancement of purchasefunctions

Measures to increase ITM service value• Collaboration with business partners (BPs) whose strengths
lie in specific technologies featured as key words

Network

EnglishCloud• Seeking to receive orders byproactively securing BPs

Financial services
PMO, etc.

Analysis of projects
where orders were
not received

Secure BPs that fulfill
customer requests byanalyzing projects where we
failed to receive orders• Strengthening the organizational structure
Headquarters
Procurement

Sales• Collaborations with sub-contracted partners

Customer needs
Proactively
securing BPs

Descriptions
Advanced training

Prompts, system construction, data science, etc.

Security

Generative AI governance, security platform,
vulnerability countermeasures, etc.

Business
Unit
Enhancements

Contractmanagement

Proposals on services

Collaboration with BPs

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Enhance teams that strengthen BP-based
procurement and the development of
new BPs

19

Business Solutions Business

Expand sales, profit and value through the SI business
Shifting our focus from physical business to service business
1. Expansion of DX-related services — Sales expected to grow 30%
 Enhance system development and the application reconfiguration business in a multicloud environment
 Expand Government Cloud-related projects
2. Enhancement of hybrid environment initiatives — Sales expected to grow 27%
 Strengthen measures for the cloud business and expand the menu of services
 Strengthen support with an eye on the end of life of Windows 10
3. Strengthening earnings capacity by expanding sales of services — Sales expected
to grow 135%
 Expand the menu of services and expand sales into the profit division Provide all services through ALL SYSTENA solutions on a one-stop basis

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20

Systena GroupManagement Objectives
and Basic Policy

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21

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

to become one of Japan’s leading IT
companies and support the Japanese
economy from the ground up!

To achieve this, we embrace the basic policy ofbalanced management, controlling the conflicting
qualities of “destruction and creation,” “stability
and growth” and “maintenance and innovation”
in the right balance while continually placing theaxis of management at the central point of thependulum.
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22

(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.

23

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.