Financial Results for thethird quarter of fiscal 2021
andmedium-term
management plan
F e b
３ , 2 0 2 2Sy s t e na C or po ra t i on

Security code:2317(First Section of the Tokyo Stock Exchange)

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

Company Outline【Company name】

Systena Corporation【Established】

March 1983
March

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

TSE 1st Section
1,513,750,000 Yen
450,880,000 shares【Director】 Representative Director ： Yoshichika Hemmi Director ： Makoto Taguchi Outside Director ： Yukio Suzuki
and Chairman
Representative Director ： Kenji Miura
Director ： Hiroyuki Fujii
Outside Director ： Kouichi Ogawa
and President：
Takafumi
Kai：
ShingoHemmi
Director
Outside Director ： Mari ItohManaging Director： Shinichiro Kawachi Director ： Hiroshi Kotani
Managing Director【Auditor】 Full-time Corporate Auditor
Outside Corporate ： Yoshihiro Nakamura､ Hiroshi Adagawa、Nobushige Tokuono(Outside Corporate Auditor) ： Toru Hishida【Number of Employees】

Auditor

Non-Consolidated:3,334/Consolidated:4,622 (As of January 1, 2022)

Solution Design Business► 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►► Offering and supporting introduction of

Google Workspace, Microsoft Office 365,
and other cloud services

as 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► New business promoted by subsidiary

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

► IT-related products for corporate customers, suchsupport, development and verification
support , provision of various solutions►

Trend research and commercialization of
the latest technologies and services

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

►

ONE Tech Japan
Planning and management of social
games for mobile, smartphone, PC by
subsidiary GaYa

1

Domestic Group Companies●Equity method affiliatedcompanies●Consolidated subsidiaries

ＰｒｏＶｉｓｉｏｎ Co., Ltd.
【Capital】 85,000,000 Yen【Ratio of capital contribution】
100％・Comprehensive internet
service business focusing on
development support andquality evaluation of mobile
terminal apps and internet
content（IT Service Business）

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

Tokyoto Business
Service Co.,Ltd

TBSOPERATION CO., LTD

HIS HOLDINGS,INC.

【Capital】 40,000,000 Yen【Ratio of capital contribution】
Tokyoto Business Service
Co.,Ltd 100％【Capital】 95,000,000 Yen【Ratio of capital contribution】
25.2％

Data entry, Large volume output,
Mailing service, Secretariat agency,
Paperwork agency. Model company
for employing heavily disabled
persons incorporated jointly withTOKYO METROPOLITANGOVERNMENT.

Employment transition support andcontinuous employment support
based on the General Support for
Persons with Disabilities Act.
Employment training for persons
with disabilities.

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

（IT Service Business）（IT Service Business）（Solution Design Business）

GaYa Co.Ltd.

ONE Tech Japan, Inc.

【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】

Systena 51％ TOKYO METROPOLITAN GOVERNMENT 49％

Planning and management of social
games for mobile, smartphone, PC（Investment & Incubation
Business）

Provide planning, development,
sales and other services in thefields of AI, IoT, robots, Fintech
and social media.

（Investment & Incubation
Business）

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

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 forthird quarter of fiscal 2021
（Consolidated）＜YoY rate＞
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

4

Financial Results 1Q-3Q （Consolidated）
Amid the economic restrictions associated with the COVID-19 pandemic, wehave primarily focused on business activities involving remote sales, IT
support via teleworking, and software development support. As a result, net
sales were 47,039 million yen, a 6.0% increase year on year, and operating
profit was 6,371 million yen, a 10.4% increase year on year.
（in millions of yens）

1Q-3Q Fiscal 2021
Profit ratio

AmountNet
sales

1Q-3Q Fiscal 2020

47,039Amount－ 44,393

Profit ratio

YoY rate
Amount ofchangerate ofchange－ 2,645

6.0％

Operatingprofit6,371 13.5％

5,770 13.0％

600

10.4％

Ordinary
profit6,179 13.1％

5,814 13.1％

365

6.3％

Profitattributable toowners ofparent

4,164

3,897

266

6.8％

8.9％

8.8％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

5

Point 1
Solution Design Business

Net Sales

Year-on-year

15,142 million yen +6.5％

Operating Profit

Year-on-year

2,900 million yen +14.6％

 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 with an eye to a post-COVID-19 society. We are actively
promoting new business development as a growth field.
Framework Design BusinessYear-on-year

Net Sales 3,720 million yen +12.0％

Operating Profit 722

million yen

Year-on-year+28.9％

 In the financial sector, the number of inquiries, especially for DXrelated projects, increased. We are actively expanding into newareas such as cloud business and internet banking.
 In the public sector, the expansion advanced thanks to new projectorders related to the Social Security and Tax Number (My Number),which led to an increase in orders. We are also actively promoting
new DX-related projects.
 In the distribution/services sector, we have bolstered thecommissioned development business and acquired new projects
through integrated services of maintenance and development usingdevelopment labs.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

6

Point 2
IT Service Business

Net Sales 11,452 million yen

Year-on-year+14.1％

Operating Profit

Year-on-year

1,536 million yen +10.3％

 The sales and profits increased due to high value-added projects that create a newworkstyle for customers such as assessment and consulting services, in a situation
where IT support that assists customers in advancing their business and thereconstruction/optimization of conventional IT environments are advancing.
 We strengthened our alliances with manufacturers and developed new customers,
using services such as IT training and security services for facilitating telework asa sales hook.
Business Solution BusinessYear-on-year

Net Sales 15,699 million yen ▲2.0％

Year-on-year

Operating Profit 1,002 million yen ▲13.3％

 Both sales and profits decreased partly because of the continued situation where itis difficult to procure IT devices due to the global resurgence of the COVID-19
infection and shortage of semiconductor supply.
 In the system integration business, we received orders to replace virtual platforms
on which mission-critical systems are mounted, building of hybrid environments,
migration to a cloud environment for digitalization at the DX Promotion Dept., which
was consolidated at the beginning of the fiscal year, and system development
projects.
 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 BusinessYear-on-year

Year-on-year

Net Sales 1,219 million yen +25.5％ Operating Profit 247 million yen +37.6％

 The number of inquiries for Canbus increased as companies shifted
their operation to data-driven ones with an eye on a post-COVID19 society.
 The number of orders for integration for operational reforms
increased from the customers that use "Canbus." to facilitate theirdigital transformation.
Overseas BusinessYear-on-year

Net Sales 133 million yen ▲5.9％

Year-on-year

Operating Profit ▲2 million yen ▲14 million yen

 Factory projects using AI and IoT (LoRa) from companies andfactories in the U.S. and Japan remain good.
 The number of inquiries and orders for "Canbus.," a DX service forwork efficiency improvement that has established a track record inJapan, increased in the U.S. as well.
 Given our existing customers' satisfaction with our capabilities inproposals and technologies, the transfer of their business fromcompetitors to us accelerated.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

8

Financial Results 1Q-3Q （Consolidated）
Sales by Segment＜YoY rate＞（in millions of yens）

1Q-3Q Fiscal 2021
AmountSolution
DesignSales distribution
ratio

1Q-3Q Fiscal 2020
AmountSales
distribution
ratio

YoY rate
Amount ofchangerate ofchange15,14232.2％

14,216

32.0％

925

6.5％

Framework
Design

3,720

7.9％

3,323

7.5％

397

12.0％

IT Service

11,452

24.3％

10,041

22.6％

1,411

14.1％

Business
Solution

15,69933.4％

16,027

36.1％

▲328

▲2.0％

1,219

2.6％

971

2.2％

247

25.5％

Overseas

133

0.3％

141

0.3％

▲8

▲5.9％

Investment
Incubation

134

0.3％

129

0.3％

5

4.0％

Adjustment

▲462

▲1.0％

▲457

▲1.0％

▲5

―

Total

47,039100.0％

44,393 100.0％

2,645

6.0％

Cloud

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

9

Financial Results 1Q-3Q （Consolidated）
Operating profit by Segment＜YoY rate＞（in millions of yens）

1Q-3Q Fiscal 2021

1Q-3Q Fiscal 2020

YoY rate

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

2,900

19.2％

2,530

17.8％

369

14.6%

722

19.4％

560

16.9％

162

28.9％

IT Service

1,536

13.4％

1,393

13.9％

142

10.3％

Business
Solution

1,002

6.4％

1,156

7.2％

Cloud

247

20.3％

179

18.5％

67

37.6％

Overseas

▲2

▲1.7％

12

8.6％

▲14

―

▲62 ▲48.5％

27―

Investment
Incubation
Adjustment
Total▲35 ▲26.3％

rate ofchange▲154 ▲13.3％

―

―

―

―

―

―

6,371

13.5％

5,770

13.0％

600

10.4％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

10

Financial Results 1Q-3Q（Consolidated）
Composition of Net Sales and Operating Profit by Segment

Cloud

Net sales¥47,039ｍil

2.6%

Overseas

0.3%

Investment &Incubation

0.3%

3.9%
Business
Solution

Solution
DesignBusiness
Solution

Cloud

Operating profit¥6,371ｍil

15.7%

32.2%

Solution
Design45.5%

IT Service

33.4%

24.1%

Framework
DesignIT Service

24.3%

7.9%

Framework
Design11.3%
Adjustment▲1.0%

Overseas▲0.0%
Investment & Incubation ▲0.5％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

11

Revised earnings forecast
for Fiscal 2021
(Consolidated, Full Year)

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

12

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

Fiscal 2021

Revised Earnings Forecasts
Profit ratio

AmountNet
sales

64,237

Fiscal 2020
Amount－ 60,871

YoY rate

Profit ratio

Amount ofchangerate ofchange－ 3,365

5.5％
8.7％

Operatingprofit8,700 13.5％

8,006 13.2％

693

Ordinary
profit8,500 13.2％

7,507 12.3％

992 13.2％

5,727

4,974

752 15.1％

Profit attributableto owners ofparent8.9％

8.2％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

13

Revised Earnings Forecast for the Full Year(Consolidated, Changes from initial earnings forecasts)（in millions of yens）

Fiscal 2021

Revised Earnings Forecasts
Profit ratio

AmountNet
sales

64,237

Fiscal 2021

Initial earnings forecasts
Amount－ 66,100

Profit ratio

Changes from initial
earnings forecasts

Amount ofchangerate ofchange－ ▲1,863 ▲2.8％

Operatingprofit8,700 13.5％

8,300 12.6％

400

4.8％

Ordinary
profit8,500 13.2％

8,004 12.1％

496

6.2％

5,727

5,371

356

6.6％

Profit attributableto owners ofparent8.9％

8.1％

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

14

1-1. Solution Design Business
Outlook for this Period

compared with previous period

Net Sales 20,535 million yen + 7.2％

compared with previous period

Operating Profit 4,030 million yen +11.2％

Selection and concentration. We will focus on business developmentin growth areas. We aim to create high value-added business areas.
1. Actively focusing on businesses development in growth areas

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

2. Shifting to the provision of total solutions

 Support all processes of customers’ services from IT consultation 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. Cultivating new markets and new business areas

 Aim to create new business by enhancing digital transformation(DX) related services.

*As of this fiscal year ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the
Solution Design Business segment has been reassigned to the IT Service Business segment; and IDY (results forecast for this fiscal year: net sales 342 million yen,operating profit 16 million yen), which was also included in the Solution Design Business segment, has been reassigned to the Business Solution Business segment.
Results for each segment for the previous year (the year ended March 31, 2021) have been rearranged according to these changes in order to calculate YoY
comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

15

2. Framework Design Business
Outlook for this Period

compared to previous period

Net Sales 5,121 million yen +13.8％

compared to previous period

Operating Profit 980 million yen +26.9％

We will invest our energies into growth areas and aim to maximize orders
through both existing business operations primarily in the financial sector andnew operations in new business domains.

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 anddistribution/services area.

2. Actively securing orders for digital transformation (DX) projects

 We will enhance our organizational structure in terms of both sales andtechnology, in order to secure orders for renewals of core mission-criticalsystems and infrastructure building (cloud-based) projects.

3. Expanding service-type business operations

 We will seek to expand and enhance our services, beginning withcommissioned development, business process support and DX solutions. We
will expand orders by enhancing coordination between divisions and service
venders.

*As of this fiscal year the new services area (results forecast for this fiscal year: net sales 1,000 million yen, operating profit 110 million yen), which was
included in the Framework Design Business segment, has been reassigned to the Business Solution Business segment. Results for each segment for theprevious year (the year ended March 31, 2021) have been rearranged according to these changes in order to calculate YoY comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

16

3-1. IT Service Business
Outlook for this Period

compared to previous period

Net Sales 15,195 million yen +11.2％

compared to previous period

Operating Profit 2,070 million yen +10.5％

The number of customers advancing digital transformation (DX) and companies
engaged in further workstyle reforms is increasing in all industries. We willconcentrate our energies into responding to the following, for which there is growing
demand.
• Rebuilding / optimization of existing IT environments• Expanding IT support services for companies creating new business models
1. Increasing efforts in areas with high added-value projects
 We will focus on providing services that are more directly linked to customer business growth
and the acceleration; including contract-type services such as IT support, IT infrastructure andPMO, as well as assessment and consulting services utilizing our track record in catering tocustomer needs in response to changes in the operating environment.

2. Expanding software quality assurance (QA) services

 We will focus on expanding existing business and developing new business in the enterprisesegment, utilizing quality assurance (QA) services developed in the entertainment segment,
where there are also growing number of orders for content such as social games and net
business.

3. Developing new customers and creating new business models

 We will provide new services through investment in human resources development andalliances with group companies and partner companies; and enhance sales and services by
expanding the scope of support, strengthening inside sales, and opening regional businessbases.
４. Promoting active participation of people with disabilities
 We will understand individual characteristics, promote the building of an environment thatenables their active participation, and focus on a wide range of services, mainly in BPO business.
*As of this fiscal year the subsidiary ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the Solution Design
Business segment, has been reassigned to the IT Service Business segment. Results for each segment for the previous year (the year ended March 31, 2021) have been rearranged according
to these changes in order to calculate YoY comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

17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.

18

4-1. Business Solution Business
Outlook for this Period

compared to previous period

Net Sales 21,488 million yen ▲3.8％

Changed name from
"Solution Sales"

compared to previous period

Operating Profit 1,400 million yen ▲6.6％

Despite limitation of investment due to the COVID-19 pandemic, we are
expanding efforts toward digital transformation (DX) and the normalization of
telework.
Expanding existing businesses and shifting our focus to growth areas

1. 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 partners
3. Expanding digital transformation (DX) related services

 Expanding our service menu, including RPA and data integration tools

4. Strengthen earnings capacity through expanded sales of services

 Provide ALL Systena's services on a one-stop basis*As of this fiscal year the new services area (results forecast for this fiscal year: net sales 1,000 million yen, operating profit 110 million yen), which was
included in the Framework Design Business segment; and the subsidiary IDY (results forecast for this fiscal year: net sales 342 million yen, operating profit
16 million yen), which was included in the Solution Design Business, have both been reassigned to the Business Solution Business segment. Results foreach segment for the previous year (the year ended March 31, 2021) have been rearranged according to these changes in order to calculate YoY
comparisons.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

19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.

20

5. Cloud Business
Outlook for this Period

compared to previous period

Net Sales 1,711 million yen +15.3％

compared to previous period

Operating Profit 330 million yen +9.9％

The number of inquiries is on the increase, reflecting an
improvement in operations and the establishment of internal
infrastructure with an eye on a post-COVID-19 society. We
are making proactive advance investments in our 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

 Actively work on strengthening alliances for Canbus. And
start to provide OEM services for Canbus.

2. Enhancing services through advance investment

 To enable the realization of various services from the perspective of
DX platforms, we will strengthen human resources to improve our
support capabilities and achieve an increased level of customer
satisfaction while simultaneously enhancing product power.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

21

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

compared to previous period

Net Sales 102 million yen ▲45.8％

compared to previous period

Operating Profit ▲10 million yen ▲17million yen

1. 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.
2. Technical support for the development of PoC between Japanesecompanies in Silicon Valley and start-ups.
 Acquisition of projects for the development of PoC between
Japanese companies in Silicon Valley and start-ups, and utilize
offshore development in Vietnam
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. and the COVID-19 pandemic.
4. Launching sales of Canbus.
 Increase orders for the DX service "Canbus.," which has steadily
established a track record in Japan, as a support service for local
companies in the U.S. to realize paperless operations and DX
services.
Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

22

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

Sales by Segment

Fiscal 2021

Revised Earnings Forecasts

Fiscal 2020

（in millions of yens）

YoY rate
Amount ofrate of changechangeAmountSales distribution
ratio

AmountSales distribution
ratio

20,53532.0％

19,163

31.5％

1,371

7.2％

Framework
Design

5,121

8.0％

4,498

7.4％

622

13.8％

IT Service

15,195

23.6％

13,66222.4％

1, 532

11.2％

Business
Solution

21,48833.4％

22,343

36.7％

▲855

▲3.8％

1,711

2.7％

1,484

2.4％

226

15.3％

Overseas

102

0.2％

188

0.3％

▲86 ▲45.8％

Investment
Incubation

85

0.1％

178

0.3％

▲93 ▲52.3％

Adjustment

―

―

▲647

▲1.0％

647

―

64,237 100.0％

60,871100.0％

3,365

5.5％

Solution
Design

Cloud

Total

*As of this fiscal year the subsidiary ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the Solution Design Businesssegment, has been reassigned to the IT Service Business segment; the subsidiary IDY (results forecast for this fiscal year: net sales 342 million yen, operating profit 16 million yen), which was
included in the Solution Design Business segment, has been reassigned to the Business Solution Business segment; and the new services area (results forecast for this fiscal year: net sales 1,000
million yen, operating profit 110 million yen), which was included in the Framework Design Business segment, has been reassigned to the Business Solution Business segment. Results for eachsegment for the year ended March 31, 2021 have been rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

23

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

Operating profit by Segment
Fiscal 2021

Revised Earnings Forecasts

Fiscal 2020

（in millions of yens）

YoY rate

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

4,030

19.6％

3,624

18.9％

405

11.2％

980

19.1％

772

17.2％

207

26.9％

IT Service

2,070

13.6％

1,873

13.7％

196

10.5％

Business
Solution

1,400

6.5％

1,499

6.7％

▲99

▲6.6％

Cloud

330

19.3％

300

20.2％

29

9.9％

Overseas

▲10

▲9.8％

7

4.0％

▲17

―

Investment
Incubation▲100▲117.6％▲71▲39.9％▲28―

Adjustment

―

―

―

―

―

―

8,700

13.5％

8,006

13.2％

693

8.7％

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

rate ofchange24

Revised Earnings Forecast for the Full Year(Consolidated, Changes from initial earnings forecasts)

Sales by Segment

Fiscal 2021

Revised Earnings Forecasts
AmountSales distribution
ratio

20,535

Framework
DesignFiscal 2021

Initial earnings forecasts（in millions of yens）

Changes from initial
earnings forecasts

Amount ofrate of changechangeAmountSales distribution
ratio

32.0％

20,750

31.4％

▲215

▲1.0％

5,121

8.0％

5,121

7.7％

―

―

IT Service

15,195

23.6％

15,383

23.3％

▲188

▲1.2％

Business
Solution

21,48833.4％

23,83536.1％▲2,347

▲9.8％

1,711

2.7％

1,500

2.3％

211

14.1％

102

0.2％

230

0.3％

▲128 ▲55.7％

85

0.1％

211

0.3％

▲126 ▲59.7%

―

―

▲930

▲1.4％

930

―

64,237 100.0％

66,100100.0％▲1,863▲2.8％

Solution
DesignCloud
Overseas
Investment
Incubation
Adjustment
Total*As of this fiscal year the subsidiary ProVision (results forecast for this fiscal year: net sales 5,000 million yen, operating profit 500 million yen), which was included in the Solution Design Businesssegment, has been reassigned to the IT Service Business segment; the subsidiary IDY (results forecast for this fiscal year: net sales 342 million yen, operating profit 16 million yen), which was
included in the Solution Design Business segment, has been reassigned to the Business Solution Business segment; and the new services area (results forecast for this fiscal year: net sales 1,000
million yen, operating profit 110 million yen), which was included in the Framework Design Business segment, has been reassigned to the Business Solution Business segment. Results for eachsegment for the year ended March 31, 2021 have been rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

25

Revised Earnings Forecast for the Full Year(Consolidated, Changes from initial earnings forecasts)

Operating profit by Segment
Fiscal 2021

Revised Earnings Forecasts

Fiscal 2021

Initial earnings forecasts（in millions of yens）

Changes from initial
earnings forecasts

AmountProfit ratio

AmountProfit ratio

Solution
DesignFramework
DesignAmount ofchange

4,030

19.6％

3,870

18.7％

160

4.1％

980

19.1％

867

16.9％

113

13.0％

IT Service

2,070

13.6％

1,950

12.7％

120

6.2％

Business
Solution

1,400

6.5％

1,634

6.9％

▲234 ▲14.3％

Cloud

330

19.3％

100

6.7％

230 230.0％

Overseas

▲10

▲9.8％

8

3.5％

▲18

―

Investment
Incubation▲100▲117.6％▲142▲67.3％

42―

Adjustment

―

―

13

―

▲13

―

8,700

13.5％

8,300

12.6％

400

4.8％

Total

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

rate ofchange26

Revised Earnings Forecast (Consolidated)
Composition of Net Sales and Operating Profit by Segment
Net sales
Cloud 0.2% ¥64,237mil
Overseas

Investment &Incubation

0.1%

3.8%

2.7%

Business
Solution

Solution
DesignBusiness
Solution

23.8%

Framework
Design

8.0%

11.2%

23.6%
Adjustment

46.3%

IT Service

Framework
DesignIT Service

Solution
Design

16.1%

32.0%

33.4%

Cloud

Operating profit¥8,700mil－%

Overseas▲0.1％
Investment & Incubation ▲1.1%
Adjustment－%

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

27

Systena GroupManagement Objectives
and Basic Policy

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

28

(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.

29

(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.

30

Systena
medium-term
management plan

（Fiscal 2019～ Fiscal 2024）

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

31

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.

32

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 2024

(hundreds of millions of yen)

KPI

2019/32020/32021/32022/3

Revised Earnings
Forecast

2025/3target59,74264,55260,871

64,237101,000

6,902

8,163

8,006

8,700

15,200Operating profit
margin

11.6％

12.6％

13.2％

13.5％

15.0％

Operating profit
per employee

2.16

2.32

1.99

1.78

2.60

24.6％

25.5％

20.6％

20.9％

Net Sales
Operating Profit

ROE

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

（1.7x）（2.2x）(20％ increase)

25％
33

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

Infotainment

社会インフラ / プロダクト

Communication
robots2025

Autonomous driving
Safety solutions

6.5 billion yen

5GNet business

Olympic related

10.2 billion yen

Educational reform

DXサービスWorkstyle reform

Industrial robots

8.0 billion yen

5G-related services“Cashless”/payment settlement

Lifestyle20.0 billion yen

Digital transformation (DX)Open source utilization

FY2019FY2020Net Sales: 21.2
billion yen

Net Sales: 22.9
billion yen

Net Sales: 23.8
billion yen

Operating Profit:
3.7 billion yen

Operating Profit:
4.0 billion yen

Operating Profit:
4.1 billion yen

State of progress

2024

Connected cars

Settlement terminals

800 million yen

FY20182023

MaaS

Car sharing

2.7 billion yen

2.3 billion yen

2022

AI and RPA

5.0 billion yen

FY2021 outlook

FY2024 target

Net sales growth of 1.8x andoperating profit growth of 1.9x
Net Sales: 20.5
billion yen
Operating Profit:
4 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.

34

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

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

Banking

Socialinfrastructure

PublicsectorDistribution
services

Numerical
targets

Data utilization

Renewal of coresystems

Shifting away fromhost-based systems

UI improvement

Cloud

Agile

CI/CD

SaaS utilization

Expand new segments by deploying finance-related
know-how, and aim to maximize with DX-related
development
Finance business (existing)
19.3

Sales 2.5

billion25.3+20%
increase

3.0
billion

FY2018FY2019FY2020Net Sales: 5.3
billion yen

Net Sales: 5.8billion yen

Net Sales: 5.1
billion yen

Operating Profit:
840 million yen

Operating Profit:
1.06 billion yen

Operating Profit:
860 million yen

State of progress

New business domains

DX-related business(public, etc.)

19.3
Sales 0.5
billion+4 times

25.3
increase
2.0
billion

Sales 0.0

FY2021 outlook
Net sales growth of 1.7x andoperating profit growth of 1.8x
Net Sales: 5.1
billion yen
Operating Profit:
980 million yen

19.3

billionNew

25.3 development

1.5
billionFY2024 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.

35

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
FY2018

Infrastructureservices

PMO
services

FY2019FY2020Net Sales: 7.8
billion yen

Net Sales: 8.7
billion yen

Net Sales: 9.4
billion yen

Operating Profit:
1.1 billion yen

Operating Profit:
1.3 billion yen

Operating Profit:
1.4 billion yen

State of progress

Qualityverification
services• 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.

FY2021 outlook

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

Net Sales: 15.2
billion yen
Operating Profit:
2.07 billion yen

FY2024 target
Net Sales:
18 billion yen
Operating Profit:
3.55 billion yen*As of the year ending March 31, 2022 the subsidiary ProVision,
which was included in the Solution Design Business segment,
has been reassigned to the IT Service Business segment.
Results for each segment for the year ending March 31, 2022
onward have been rearranged according to these changes.

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

36

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

FY2018Bolster response to hybrid environments

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

Existing business

Service business

FY2024FY2024

DX business
FY2024+40%
increase+180%
increase+350%
increase

FY2018FY2018FY2018FY2019FY2020Net Sales: 24.0
billion yen

Net Sales: 25.9
billion yen

Net Sales: 21.4
billion yen

Operating Profit:
1.2 billion yen

Operating Profit:
1.6 billion yen

Operating Profit:
1.4 billion yen

State of progress

FY2021 outlook

FY2024 target

Operating profit of 6％, net service sales of
11.4 billion yen and percentage sales of 30%
Net Sales: 21.5
billion yen
Operating Profit:
1.4 billion yen

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.

37

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.

FY2018A piece of groupware that can be used
as an addon for Google Workspace andOffice365. It facilitates improvements
in enterprise productivity and greater
workstyle diversity.

FY2019FY2020Net Sales: 1.1
billion yen

Net Sales: 1.4
billion yen

Net Sales: 1.5
billion yen

Operating Profit:
200 million yen

Operating Profit:
200 million yen

Operating Profit:
300 million yen

State of progress

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

FY2021 outlook
Achieve targets in global business, armed withown-brand products and services and content
based in Japanese culture

FY2024 target
Net Sales: 1.97
billion yen
Operating Profit:
500 million yen

Net Sales: 1.7 billion
yen
Operating Profit:
330 million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

38

6. Overseas Business（Systena America Inc. ） We will aim to expand joint orders with One Tech in the ever-growing field of edge AI,
based on technical support for Japanese-owned companies in the US.
 We will also seek to establish a robust business base in terms of sales and profits, throughtech support for Japanese-owned companies, as well as PoC and incubation support services
in the US.

Business
Strategy Bolster technical support for Japanese-owned companies in the U.S.
 Joint IoT project orders with One Tech utilizing edge AI, in the US andglobally

Technical support

EdgeAI / IoT
FY2024FY2024

Key fields
FY2018FY2018FY2018FY2019FY2020Net Sales: 100
million yen

Net Sales: 100
million yen

Net Sales: 190
million yen

Operating Profit:-30 million yen

Operating Profit:-20 million yen

Operating Profit:
7 million yen

State of progress

FY2021 outlook

FY2024 target
Unearh the next newtechnologies and markets

Net Sales: 100
million yen
Operating Profit:▲10million yen

Copyright ⓒ 2010 Systena Corporation All Rights Reserved.

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

39

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.

40

Earnings Forecast for Fiscal 2023
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.

41

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.