Financial Results for the firstquarter of fiscal 2023
andmedium-term
management planJ u l y 2 8 , 2 0 2 2Sy s t e na C or po ra t i on

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
Representative Director ： Kenji Miura
Director ： Shingo Hemmi
and President： Makoto Taguchi
Director ： Hiroshi Kotani
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:4,014/Consolidated:5,441 (As of July 1, 2022)► 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.

ONE Tech Japan, Inc.

MINGAL,Inc.

HIS HOLDINGS,INC.
【Capital】 95,000,000 Yen【Ratio of capital
contribution】 25.0％【Capital】 75,000,000 Yen【Ratio of capital
contribution】 65％【Capital】 85,000,000 Yen【Ratio of capital
contribution】 87.5％【Capital】 100,000,000 Yen【Ratio of capital
contribution】 60.0％

Planning and managementof social games for mobile,
smartphone, PC

Provide planning,development, sales and otherservices in the fields of AI, IoT,
robots, Fintech and social
media.

Development, distribution,
maintenance, and operationof cloud services relating toprofessional practice（Investment & Incubation
Business）（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 forfirst quarter of fiscal 2022
（Consolidated）＜YoY rate＞
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

4

Financial Results 1Q（Consolidated）（in millions of yens）

1Q Fiscal 2022
Profit ratio

AmountNet
sales

1Q Fiscal 2021

17,627

Amount－ 15,331

YoY rate

Profit ratio

Amount ofchangerate ofchange－ 2,295

15.0％
3.8％

Operatingprofit

1,821 10.3％

1,755 11.4％

66

Ordinary
profit

1,879 10.7％

1,702 11.1％

177 10.4％

Profitattributable toowners ofparent1,285 7.3％

1,144

140 12.3％

7.5％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

5

Point 1
Solution Design Business

Net Sales

5,325Year-on-year
million yen+12.0％

Operating Profit

689

million yen

Year-on-year▲0.9％ The in-car business, social infrastructure business, and net business,
mainly "mobility," "5G," and "cashless payment," remained firm.
 The number of inquiries for digital transformation projects
increased. We are actively promoting new business development
as a growth field.
 Orders for IT consulting and IT services increased. Since thenumber of inquiries is high, we will continue to focus on them.
Framework Design BusinessYear-on-year

Net Sales 1,422 million yen +25.2％

Operating Profit

238

million yen

Year-on-year+55.2％

 In the financial sector, the number of inquiries, especially for DX-related
projects, increased. We are actively expanding into new areas such as
cloud business and the use of AI.
 In the public sector, with projects related to the Social Security and Tax
Number (My Number) as a starting point, we are actively expanding into
projects for central government offices. Expansions in both apps andinfrastructures are in progress.
 In the corporate sector, we have bolstered the commissioned development
business and acquired new projects through integrated services ofmaintenance and development using development labs.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

6

Point 2
IT Service Business

Net Sales 4,316

million yen

Year-on-year+18.4％

Operating Profit

526

million yen

Year-on-year+17.3％

 We focused on expansion of PMO services, in a situation where IT support thatassists customers in advancing their business and the reconstruction/optimizationof conventional IT environments are advancing. The sales and profits increased
due to high value-added projects that create a new workstyle for customers.
 We strengthened use of inbound sales and developed new customers, using IT
training and security services as a sales hook.
Business Solution Business

Net Sales 6,267

million yen

Year-on-year+14.0％

Operating Profit

Year-on-year

358 million yen ▲11.3％

 Despite uncertainties such as a rise of product prices due to depreciation of yen anddifficulties to procure IT devices due to shortage of semiconductor supply, we
strengthened our sales activities in response to the lifting of the priority measures toprevent the spread of COVID.
 In the system integration business, we received orders for building of hybrid
environments, migration to a cloud environment for digitalization, systemdevelopment projects, and maintenance services.
 Though the net sales increased, the operating profit decreased due to increased
fixed costs.
 We expanded the number of high added-value one-stop service projects over what
we had envisioned in the roadmap in a number of areas, including the introductionof IT equipment, infrastructure building, system development, maintenance andoperation.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

7

Point 3
Cloud Business

Net Sales 392

million yen

Year-on-year+4.5％

Year-on-year

Operating Profit 63 million yen ▲6.5％

 The number of inquiries for "Canbus." increased as companies shifted
their operation to data-driven ones with an eye on a post-COVID-19
society.
 The number of orders for integration for operational reforms increased
from the customers that use "Canbus." to facilitate their digitaltransformation.
 New markets for "Canbus." further cultivated because of strengthening of
our alliances.

Overseas BusinessYear-on-year

Net Sales 33 million yen ▲17.4％

Year-on-year

Operating Profit ▲10 million yen ▲6 million yen Orders for projects for development of PoC, where Japanese companies
verify start-ups' technologies remained strong. We will lead it to full-scale
development, which is subsequent to the PoC development.
 The number of inquiries and orders for "Canbus.," a DX service for work
efficiency improvement that has established a track record in Japan,
increased in the U.S. as well.
 The number of inquiries and orders for Remo-oTe, a remote BPO service,increased against a background of spreading COVID-19 infection and highlabor costs.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

8

Financial Results 1Q（Consolidated, YoY rate）
Sales by Segment（in millions of yens）

1Q Fiscal 2022
AmountSales
Distribution
ratio

1Q Fiscal 2021
AmountSales
distribution
ratio

YoY rate
Amount ofchangerate ofchangeSolution
Design

5,325

30.2％

4,753

31.0％

571

12.0％

Framework
Design

1,422

8.1％

1,136

7.4％

285

25.2％

IT Service

4,316

24.5％

3,646

23.8％

669

18.4％

Business
Solution

6,267

35.6％

5,495

35.8％

771

14.0％

392

2.2％

375

2.4％

16

4.5％

Overseas

33

0.2％

40

0.3％

▲7

▲17.4％

Investment
Incubation

33

0.2％

40

0.3％

▲7

▲18.4％

Adjustment

▲163

▲1.0％

▲157

▲1.0％

▲5

―

Total

17,627100.0％

15,331100.0％

2,295

15.0％

Cloud

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

9

Financial Results 1Q（Consolidated, YoY rate）
Operating profit by Segment（in millions of yens）

1Q Fiscal 2022
Amount

1Q Fiscal 2021

YoY rate

Profit ratio

AmountProfit ratio

Amount ofchangerate ofchangeSolution
DesignFramework
Design

689

13.0％

695

14.6％

▲5

▲0.9％

238

16.8％

153

13.5％

84

55.2％

IT Service

526

12.2％

448

12.3％

77

17.3％

Business
Solution

358

5.7％

404

7.4％

63

16.1％

67

18.0％

▲4

▲6.5％

Overseas▲10 ▲29.6％

▲3

▲9.0％

▲6

―

Investment
Incubation▲45 ▲136.0％▲12▲29.5％

▲33

―

Cloud

Adjustment
Total▲45 ▲11.3％

―

―

―

―

―

―

1,821

10.3％

1,755

11.4％

66

3.8％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

10

Financial Results 1Q（Consolidated）
Composition of Net Sales and Operating Profit by Segment

Cloud

Net sales¥17,627ｍil

2.2%

Overseas

0.2%

Investment &Incubation

0.2%

19.7%

30.2%

35.6%

Framework
DesignIT Service

24.5%
Adjustment

3.5%
Business
Solution

Solution
DesignBusiness
Solution

Cloud

Operating profit¥1,821ｍil

IT Service

28.9%

8.1%

▲1.0%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Solution
Design37.9%

Framework
Design13.1%

Overseas▲0.6%
Investment & Incubation ▲2.5％
Adjustment
ー%11Earnings Forecast for
Fiscal 2022
(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 2022

Fiscal 2021

Earnings Forecasts
Profit ratio

AmountNet
sales

71,450

Amount－ 65,272

YoY rate

Profit ratio

Amount ofchange－ 6,177rate ofchange9.5％

Operatingprofit10,280 14.4％

9,106 14.0％ 1,173 12.9％

Ordinary
profit10,280 14.4％

8,578 13.1％ 1,701 19.8％

Profit attributableto owners ofparent

7,000

9.8％

5,992

9.2％ 1,007 16.8％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

13

1-1. Solution Design Business
Outlook for this Period

compared with previous period

Net Sales 23,606 million yen + 14.2％

compared with previous period

Operating Profit 4,759 million yen +15.2％

Selection and concentration. We aim to create high value-added
business areas.
1. Actively focusing on businesses development in growthareas Actively cultivate new markets in highly prospective areas such as
Mobility, 5G, AI, IoT, Cashless payment and Digital Transformation.

2. Shifting to the provision of total solutions

 Support all processes of customers’ services from IT consulting tooperation. 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 tocustomers and aim to be a highly profitable company.

3. Actively recruiting human resources and reinforcing the
education system

 To respond to the increased number of inquires, we will focus on
active recruiting, promoting collaboration with partners, andreinforcing the education system to develop human resources sothat they can make early contributions.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

14

2. Framework Design Business
Outlook for this Period

compared to previous period

Net Sales 5,850 million yen +13.7％

compared to previous period

Operating Profit 1,145 million yen +12.8％

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 andcorporate area.

2. Actively securing orders for digital transformation (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 cloudservices.

3. Further expanding high value-added projects

 We will seek to expand and enhance our services, beginning withcommissioned development, business process support and DX solutions, andaim to improve profitability by improving added value.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

15

3-1. IT Service Business
Outlook for this Period

compared to previous period

Net Sales 18,172 million yen +15.8％

compared to previous period

Operating Profit 2,540 million yen +15.6％

For the purpose of "Expanding business fields," wewill expand the customer, service, market, and rolebases aiming for higher levels.
1. Optimizing existing business and expanding to growing fields
 We will deploy management resources to DX, a growth field,
leveraging our track record in IT support. We will expand PMO
and infrastructure to evolve business operations.
2. Expanding software testing (QA) services
 We will actively develop new customers in the enterprisesegment (business systems/information systems), utilizing a
track record of software testing services in the entertainment
segment (Web/apps/SNS games).
４. Promoting active participation of people with disabilities
 We will understand individual characteristics, promote thebuilding of an environment that enables their active
participation, and focus on a wide range of services, mainly in
BPO business.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

16

3-2．IT Service Business (Aggressive Synergies)(1) Exchange ofhuman resources(2) Expansion ofservices

Fields forTokyoto Business Service

Aggressive expansion
Expand range

Layer up(3) Expand
locations(4) Enhance
sales

New
valueacreation[New services / new customers / expansion of locations / strengthening alliances]
Building
structurethat can approach customers across departmentsby harnessing the strengths of the three companies
Systena will aim to create new value and expand the field by making useof the strengths of systena/TBS service while expanding
QA/development solutions to the enterprise segment in addition to thegame/entertainment and net business segments.
As a new initiative aiming to establish a structure creating jobs for 200
employees with disabilities, Systena will expand operations by
employees with disabilities and support/consulting services for the
Tokyoto Business Service
customers of Systena and ProVision.
Systena will provide IT services in the high value-added PMO business,
which adds assessment and consulting, and will seek to expand it acrossthe country using IT training and security products as hooks.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

174-1. Business Solution Business
Outlook for this Period

compared to previous period

Net Sales 22,491 million yen +0.9％

compared to previous period

Operating Profit 1,449 million yen +0.9％

Despite limitation of investment due to the prolonged COVID-19
pandemic, we are expanding efforts toward life with COVID-19
and investments in digital transformation (DX). Impacts ofshortage of semiconductor supply are forecast to continue.
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 withcloud makers
3. Expanding digital transformation (DX) related services
 Expanding our service menu, including system development, RPA, anddata integration tools

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.

18

4-2．Business Solution Synergies
We aim to resolve customer ICT issues by providing products as a one-stop
service, from introduction to system building, development and support.

● Product Sales Business● DX BusinessEnterprise sales of IT-related
products and services including
servers, PCs, peripheral devices,
software and Microsoft 365
Lineup:1,200 companies
2 million items
Strengthening allianceswith each firm

•
•
•
•
•
•

Total
Solutions● Solution Business• Server virtualization / HCI
infrastructure• VDI solutions• Authentication infrastructure solutions• Storage solutions• Security solutions• Backup business continuity solutions

Service

RPA solutions
Database migration
Modernization
Cloud solutions
BI solutions
SoC / managed services

Strengthening alliance with Microsoft andexpanding and enhancing solutions menu

● Collaboration with IDY

Expanding service menu by strengthening
alliances with hardware manufacturers andother companies• 5G edge gateway• M2M solutions• Network connection services

Selling IDY products and expanding andenhancing solutions menu

Supporting product / service lifecycles for over 10,000 customers
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

19

5. Cloud Business
Outlook for this Period

compared to previous period

Net Sales 1,916 million yen +6.2％

compared to previous period

Operating Profit 450 million yen +10.7％

The number of inquiries is on the increase, reflecting an
improvement in operations and the establishment of internal
infrastructure. We are making proactive advance investments inour own services, primarily Canbus., with the aim of deploying
these services in the field of digital transformation (DX).

1. Advance investment to enhance the awareness ofCanbus and strengthen sales promotions

 We are actively working on strengthening alliances for
Canbus, providing OEM services for Canbus., anddeveloping new sales partners.

2. Enhancing services through advance investment

 To enable the realization of various services from theperspective of DX platforms, we will strengthen humanresources 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.

20

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

compared to previous period

Net Sales 151 million yen ▲25million yen

Operating Profit 1

compared to previous period
million yen +10million yen

1. Technical support for the development of PoC between Japanesecompanies and start-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 secures Japan
quality.
2. 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.
3. Sales expansion of BPO service "Remo-oTe"
 Increase orders for Remo-oTe, a ticket-based business support
service that is available remotely and by time, against a backgroundof soaring labor costs in the U.S.
4. Sales expansion of AI/IoT services in collaboration with ONE Tech
Inc. and ONE Tech Japan Inc.
 Actively expand sales of the services using AI and IoT (LoRa) withcold chain and Smart Factory services as the core.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

21

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

Sales by Segment
Fiscal 2022

Earnings Forecasts

Fiscal 2021

（in millions of yens）

YoY rate
Amount ofrate of changechangeAmountSales distribution
ratio

AmountSales distribution
ratio

23,60633.0％

20,663

31.6％

2,942

14.2％

Framework
Design

5,850

8.2％

5,143

7.9％

706

13.7％

IT Service

18,172

25.4％

15,690

24.0％

2,481

15.8％

Business
Solution

22,491

31.5％

22,290

34.1％

200

0.9％

1,916

2.7％

1,804

2.8％

111

6.2％

Overseas

151

0.2％

176

0.3％

▲25 ▲14.2％

Investment
Incubation

98

0.1％

171

0.3％

▲73 ▲43.0％

Adjustment

▲834

▲1.1%

▲668

▲1.0％

▲165

―

71,450 100.0％

65,272100.0％

6,177

9.5％

Solution
Design

Cloud

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

22

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

Operating profit by Segment（in millions of yens）

Fiscal 2022

Fiscal 2021

Earnings Forecasts

YoY rate

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

4,759

20.2％

4,132

20.0％

626

15.2％

1,145

19.6％

1,014

19.7％

130

12.8％

IT Service

2,540

14.0％

2,197

14.0％

342

15.6％

Business
Solution

1,449

6.4％

1,436

6.4％

12

0.9％

450

23.5％

406

22.5％

43

10.7％

Overseas

1

0.7％

▲9

▲5.3％

10

―

Investment
Incubation

—

―

▲72

▲42.4％

72―

Adjustment

▲64

―

―

―

▲64

―

10,280

14.4％

9,106

14.0％

1,173

12.9％

Cloud

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

rate ofchange23

Earnings Forecast (Consolidated)
Composition of Net Sales and Operating Profit by Segment
Net sales
Cloud 0.2% ¥71,450mil
Overseas

Investment &Incubation

0.1%

4.4%

2.7%

Business
Solution

31.5%

Business
Solution

Solution
Design33.0%

Framework
DesignIT Service

8.2%

25.4%

Adjustment

Cloud

Operating profit¥10,280mil

14.1%

Solution
Design46.3%

IT Service

24.7%

Framework
Design

11.1%

▲1.1%

Overseas
0.0％
Investment & Incubation－%
Adjustment▲0.6%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

24

Systena GroupManagement Objectives
and Basic Policy

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

25

(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.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

26

(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.

27

Systena
medium-term
management plan

（Fiscal 2019～ Fiscal 2025）

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

28

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.

29

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

We will focus management
resources on the fields
expected to experience themost growth over the next
decade.

Targeted Management Indicators and Outlook for Fiscal 2025

(hundreds of millions of yen)

KPI

2019/32020/3

Net Sales

59,74264,55260,871

65,272

71,450101,000

Operating
Profit

6,902

8,163

8,006

9,106

10,28015,200Operatingprofit margin

11.6％

12.6％

13.2％

14.0%

14.4％

15.0％

2.16

2.32

1.99

2.12

1.88

2.60

24.6％

25.5％

20.6％

21.6%

22.0％

Operatingprofit per
employee

ROE

2021/32022/32023/3

Earnings Forecast

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

2025/3target（1.7x）（2.2x）(20％ increase)

25％

30

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 aim of industry expansion. We will also be selecting and focusing on in-car business,
which is currently undergoing an industry-wide transformation, with a view to establishing long-termcompetitiveness.
There is an increasing demand for digital transformation as a result of customers transforming theirbusiness models and processes. 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

2021

2022

2023

MaaS

Car sharing

2.7 billion yen

Infotainment

社会インフラ / プロダクト

Communication
robotsSafety solutions

6.5 billion yen

5GNet business

Olympic related

10.2 billion yen

Educational reform

DXサービスWorkstyle reform

8.0 billion yen

5G-related services
Lifestyle20.0 billion yen

Digital transformation (DX)AI and RPA

FY2019FY2020

FY2021

FY2022Net Sales

21.2
billion yen

22.9
billion yen

23.8
billion yen

20.6
billion yen

Operating
Profit3.7
billion yen

4.0
billion yen

4.1
billion yen

4.1
billion yen

State of progress

Industrial robots“Cashless”/payment settlement

Open source utilization

2.3 billion yen

2025

Autonomous driving

Connected cars

Settlement terminals

800 million yen

2024

5.0 billion yen

FY2023 outlook

FY2025 target

Net sales growth of 1.8x andoperating profit growth of 1.9x
Net Sales: 23.6
billion yen
Operating Profit:
4.7 billion yen

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 Businesssegment, has been reassigned to the IT Service Businesssegment; and the subsidiary IDY, which was also included in
the Solution Design Business segment, has been reassigned
to the Business Solution Business segment. Results for eachsegment for the year ending March 31, 2022 onward havebeen rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

31

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 to DX
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

Socialinfrastructure

PublicsectorDistribution
services

Numerical
targets

Expand segments with existing customers, respond todigitalization needs, renew core systems, and acquire
integrated response projects
Expand new segments by deploying finance-related
know-how, and aim to maximize with DX-related
development
New business domains

Finance business (existing)
19.3

25.3

Sales 2.5

billion+20%
increase

3.0
billion(public, etc.)

19.3
Sales 0.5
billion

FY2019FY2020

FY2021

FY2022Net Sales

5.3
billion yen

5.8
billion yen

5.1
billion yen

5.1
billion yen

Operating
Profit840
million yen

1.06
billion yen

860
million yen

1.01
billion yen

State of progress+4 times

25.3
increase
2.0
billionFY2023 outlook

Data utilization

Renewal of coresystems

Shifting away fromhost-based systems

UI improvement

Cloud

Agile

CI/CD

SaaS utilization

DX-related business
19.3

Sales 0.0

billionNet sales growth of 1.7x andoperating profit growth of 1.8x
Net Sales: 5.8billion yen
Operating Profit:
1.14 billion yen

New25.3 development

1.5
billionFY2025 target
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 beenreassigned to the Business Solution Business segment. Results for eachsegment for the year ending March 31, 2022 onward have beenrearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

32

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

Expanding business fields
Alliances / enhancing new services /expanding locations
IT support
services

Infrastructureservices

PMO
services

Qualityverification
services

FY2019FY2020

FY2021

FY2022Net Sales

7.8
billion yen

8.7
billion yen

9.4
billion yen

15.6
billion yen

Operating
Profit1.1
billion yen

1.3
billion yen

1.4
billion yen

2.1
billion yen

State of progress• We aim to increase net sales for contract-typeservices such as IT support, IT infrastructure and
PMO from the current level of 4.5 billion yen to 8.0
billion yen.
•

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

FY2023 outlook

FY2025 target

Increase number ofEnhancing IT services
czustomers
Net sales growth of 2.1x andoperating profit growth of 3.0x

Net Sales: 18.1
billion yen
Operating Profit:
2.54 billion yen

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 these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

33

4. Business Solution Business
Provide solution services aimed at solving management issues faced by customers (suchas improving productivity, reducing costs, and bolstering security) using Systena’s overallsales capabilities in order to create and expand added-value business, and transform into
an ICT partner that supports customers’ business operations; and link thistransformation on to a continuous improvement in sales and profits.

BusinessStrategy

Numerical
Targets

Bolster response to hybrid environments

Expand DX business services
Expand synergies and services from collaboration between SystenaGroup companies and divisions

Existing business

Service business

FY2025

FY2025

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

FY2018FY2018FY2018FY2019FY2020

FY2021

FY2022Net Sales

24.0
billion yen

25.9
billion yen

21.4
billion yen

22.2
billion yen

Operating
Profit1.2
billion yen

1.6
billion yen

1.4
billion yen

1.4
billion yen

State of progress

FY2023 outlook
Operating profit of 6％, net service sales of
11.4 billion yen and percentage sales of 30%
Net Sales: 22.4
billion yen
Operating Profit:
1.4 billion yen

FY2025 target
Net Sales: 35.39
billion yen
Operating Profit:
2.45 billion 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.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

34

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 order to support the transformation of business processes throughtelework and other forms of workstyle reform.
2020

2021

2022

Workstyle reform

2023

2025

2024

Digital transformation (DX)AI and RPA

Measures against personnel shortages

New Services
A DX platform that enables anyone
to create 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 be used
as an addon for Google Workspace andOffice365. It facilitates improvements
in enterprise productivity and greater
workstyle diversity.

FY2019FY2020

FY2021

FY2022Net Sales

1.1
billion yen

1.4
billion yen

1.5
billion yen

1.8
billion yen

Operating
Profit200
million yen

200
million yen

300
million yen

400
million yen

State of progress

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

FY2023 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: 1.9 billion
yen
Operating Profit:
450 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

35

6. Overseas Business（Systena America Inc. ） We will seek to establish a robust business base in terms of sales and profits, through techsupport for Japanese-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 amongstart-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 andtechnical support

BPO (outsourcing)DX

Canbus.IoT

Key fields-Remote outsourcing services-

Start-ups PoC
Softwaredevelopment/verification

Remo-ote

FY2019FY2020

FY2021

FY2022Net Sales

100
million yen

100100
million yen
yenmillion190
million yen

170million yen

Operating
Profit-30-30
millionmillion yen
yen-20
million yen

7million yen-9million yen

State of progress

FY2023 outlook
Unearh the next newtechnologies and markets
Net Sales: 150
million yen
Operating Profit:
1 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

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

36

７．Collaboration with Overseas Business
Collaboration

Systena America

Collaboration

ONE Tech
Strongkey

Japan
Sales activities
Business Solution
Group

System building anddeployment support

Technical support

DX Design GroupONE Tech Japan Inc,*

In investment incubation businesses, we will aim
to achieve net sales of 400 million yen andoperating profit of 100 million yen by FY2023.

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.

37

Earnings Forecast for Fiscal 2025
Composition of Net Sales and Operating Profit by Segment

Overseas
Cloud

Net sales¥101bil

Operating profit¥15.2bilInvestment &Overseas
Incubation
0.4% Cloud 1.6%

0.6%

1.9%

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%

9.3%

Framework
DesignSolution
Design

53.3%

10.5%
Framework
DesignCopyright ⓒ 2010 Systena Corporation All Rights Reserved.

38

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.