TIS Inc.
Financial Results Briefing for the Fiscal Year Ended March 31, 2024
May 8, 2024

Event Summary[Company Name]TIS Inc.

[Company ID]

3626-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ended March 31, 2024

[Fiscal Period]

FY2024 Annual[Date]

May 8, 2024

[Number of Pages]

59[Time]

17:00 – 17:55(Total: 55 minutes, Presentation: 33 minutes, Q&A: 22 minutes)[Venue]Webcast[Venue Size][Participants][Number of Speakers][Analyst Names]*

2
Yasushi Okamoto
Masakazu Kawamura

Chikai Tanaka
Hideaki Tanaka
Satoru Kikuchi

President and Representative Director
Managing Executive Officer, Division
Manager of Corporate Planning SBU
Goldman Sachs Japan Co., Ltd.
Morgan Stanley MUFG Securities Co., Ltd.
SMBC Nikko Securities Inc.

*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A or
whose questions were read by moderator/company representatives.

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Presentation
Moderator: Hello, everyone, thank you for your patience. We will now hold the Financial Results Briefing for
the Fiscal Year Ended March 31, 2024 and the briefing on the new medium-term management plan of TIS Inc.
First, let me introduce today's two presenters.
The first one is Yasushi Okamoto, President and Representative Director, on your left as you face us. Next is
Masakazu Kawamura, Managing Executive Officer, Division Manager of Corporate Planning SBU.
Let me explain today's proceedings briefly. First, Kawamura will explain the financial results for the fiscal year
ended March 31, 2024, followed by an explanation of the new medium-term management plan by Okamoto,and then we will have a question-and-answer session with the audience.
This briefing is scheduled to last one hour, including Q&A, but may be extended slightly depending on thesituation. Please refer to our website for the documents as appropriate. A video of the briefing will be available
on our website at a later date.
Kawamura will now give an overview of our business performance for the fiscal year ended March 2024, theoutlook for the fiscal year ending March 2025, and shareholder returns. Thank you.

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Kawamura: This is Kawamura from TIS. Thank you. I would like to explain three points: our businessperformance for the fiscal year ended March 31, 2024, our outlook for the fiscal year ending March 31, 2025,
and shareholder returns.
Please see page two. This is the highlight of the financial result for the year under review.
First, for the fiscal year ended March 31, 2024, although revenue and operating income increased from theprevious year, the operating margin unfortunately fell short of the previous year and the revised plan due tothe impact of unprofitable projects.
Orders received and order backlogs increased from the previous fiscal year due to increased operational
services and other areas, despite a reactionary decline in development services.
Next, for the fiscal year ending March 31, 2025, we plan to achieve modest increases in both sales and income,taking into account the reactionary impact of large-scale development projects and continued aggressive
investment in growth.
Lastly, shareholder returns. For the fiscal year ended March 31, 2024, we will increase the year-end dividend
per share by JPY3. For the fiscal year ending March 31, 2025, we plan to pay an annual dividend of JPY68 pershare, up JPY12 from the previous year along with the increase in total payout ratio, and repurchase JPY6.5
billion of our own shares.

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3See page five. This is an overview of the performance for the fiscal year ended March 2024.
Although the peak out of large-scale projects that had been anticipated occurred in H2 of the fiscal year, andthis had an impact, overall, the Company achieved an increase in revenue and operating income by promoting
business expansion throughout the fiscal year.
Net sales increased 8% from the previous year to JPY549 billion, operating income increased 3.6% to JPY64.5
billion, and the operating margin decreased 0.5 percentage points from the previous year to 11.8% due to thesignificant impact of unprofitable projects that occurred in Q4.
Net income decreased 11.9% from the previous year to JPY48.8 billion, mainly due to the absence of
extraordinary gains from the reduction of strategic shareholdings in the previous year.
ROE was 16%, lower than the previous year due to the decrease in net income, but improved on an operating
activity basis.
The impact of Japan ICS, which became a consolidated subsidiary during the period, was JPY5.8 billion in net
sales and JPY600 million in operating income after amortization of goodwill for the cumulative period from
Q2.

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4Page six shows the comparison with the plan.
Net sales exceeded the revised plan, which was raised during the period, as the Company was able to capture
a wide range of IT investment demand.
Operating income was in line with the plan, and the operating margin fell short of the plan.
Net income for the period was much higher than planned due to non-operating income and extraordinary
gains.

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5Page seven shows the factors behind the changes in operating income.
The increase in profits, mainly due to the effect of higher revenues, absorbed increased investment in growth,
including enhanced investment in human resources, resulting in a JPY2.23 billion increase in operating income
compared to the previous year.
Although we were able to steadily improve profitability by providing high value-added businesses andpromoting productivity improvement measures, unprofitable projects totaling JPY4 billion caused the profit
margin to decline. Among the unprofitable projects, I would like to explain here about the project thatrecorded approximately JPY2 billion in Regional IT Solutions in Q4.
The project in question was a renewal of an existing system for a new client that was the responsibility of
another company. We have been dealing with issues such as the high degree of difficulty of the system
requirements, which resulted in schedule delays due to deteriorating quality and other factors. The project
was cancelled after discussions with the client, and the associated liquidation costs were recorded this time.
Once again, we will strengthen group-wide quality improvement measures and strive to prevent unprofitableprojects from occurring.

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Page eight shows the comparison with the plan.
Operating income was in line with the plan, as unprofitable projects offset a large part of the increase inincome due to the effect of higher revenues.

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7See page nine. This is a breakdown of sales by client sector.
The trend remained the same, with strong overall performance, especially in the public institutions sector andthe service sector.
Regarding the public institutions sector, large-scale projects for our core customers made a significant
contribution, and as for the service sector, the performance of Japan ICS also contributed to the results. The
increase in the banking sector was mainly due to contributions from the local business of the overseas
subsidiary MFEC.

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8Page 10 shows the status by key segment.
The details are as described. The Regional IT Solutions segment saw a decrease in profit due to the impact of
unprofitable projects.

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9Page 11 shows the comparison with the plan.
BPM, which fell short of the plan, was affected by the downsizing of existing data entry operations, etc., andRegional IT Solutions were affected by unprofitable projects.

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12Pages 13 through 15 present the results for the three months of Q4.
This overlaps with what I mentioned for full-year results, so I will skip the explanation here.

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Beginning on page 16 is an explanation of the status of orders.
First, overall orders received increased 5.5% from the previous year to JPY552.9 billion due to a solid
accumulation of operational orders in each segment.
Development orders decreased from the previous fiscal year, but this was largely due to a reactionary decline
from several large-scale projects in Financial IT, and we view the results as generally in line with our
expectations.

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Page 17 shows the order backlog at the end of the fiscal year.
The overall order backlog increased from the previous fiscal year. While generally unchanged from the trend
in orders received, the decline in the Industrial IT segment was due to a pull-back from certain sales projects.

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Page 18 shows orders received for the three months of Q4.
In Offering Service, increases in overseas business and Japan ICS drove overall growth.
In financial IT, development orders declined due to a reactionary drop in large projects, but operational orders
accumulated.
Projects were accumulated in industrial IT, mainly for ERP and energy-related projects, and in regional IT
solutions, mainly development projects for banks and other financial customers.

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Page 19 shows the balance sheet and cash flows.
In the period under review, the Company utilized borrowings to carry out M&A and the acquisition of realestate trust beneficiary interests in installments. The Company also carried out a large-scale share buyback aspart of its efforts to optimize its capital structure. As a result, the equity ratio declined to less than 60%. We
will continue to promote capital efficiency and cost of capital awareness.
This is the end of the explanation regarding the results for the fiscal year ended March 31, 2024.

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I would like to continue by explaining our forecast for the fiscal year ending March 2025.
First, on page 21 is the perception of the business environment.
While changes in the general economic environment require close monitoring, we remain of the view thatthe long-term expansion trend in IT investment will continue. Overall, we expect the business environment toremain favorable, but we believe that each segment will have different shades of color depending on unique
circumstances and other factors.

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19Based on the management policy shown on page 22, we explain our full-year forecast for the fiscal year ending
March 31, 2025 on page 23.
The Company plans to increase both sales and operating income, with net sales of JPY555 billion, up 1.1% YoY,
and operating income of JPY66.5 billion, up 3% YoY. We will continue to aim for business growth, although
the growth rate will be moderate due to the significant reactionary impact from large projects and continued
aggressive investment in growth.
Net income is expected to decrease due to the absence of non-operating income and extraordinary gains
recorded in the previous year, and ROE is also expected to decline due to this impact for the fiscal year ending
March 31, 2025.
Our target for unprofitable projects is JPY1 billion or less for the full year, and we will once again make firm
efforts to curb these unprofitable projects.

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Page 25 shows the forecasts for each segment.
Although Offering Services and industrial IT will drive profit, financial IT expects lower revenues and profits,
while the increase in regional IT solutions was due to the absence of the impact of unprofitable projects.

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Lastly, I would like to explain about shareholder returns.
On page 27, you will find a cutout of the basic policy for shareholder returns in the new medium-term
management plan, which will be explained later.
The target total payout ratio will be raised from 45% to 50%, and the dividend per share will be continuously
enhanced, together with share buybacks.

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Please see page 28.
Given that business growth exceeding the revised plan was achieved in the fiscal year ended March 2024, we
will increase the year-end dividend per share by JPY3 from the plan to JPY56 per share for the full year, in linewith our basic policy of 45% total payout ratio.
For the fiscal year ending March 31, 2025, we plan to increase the annual dividend by JPY12 to JPY68 per shareby increasing the total return ratio from 45% to 50%.
Effective from the fiscal year ending March 31, 2025, the Company has decided to revise the dividend balanceat the end of the interim period to a ratio of one to one. In addition, the Company has decided to repurchase
JPY6.5 billion of its own shares.
We will continue to return profits to shareholders in line with business growth, while maintaining a balance
between promoting investment in growth and ensuring financial soundness, based on our basic policy onshareholder returns.
This concludes my presentation.
Moderator: Thank you. Next, Okamoto will explain the new medium-term management plan. Thank you.

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Okamoto: This is Okamoto of TIS. Thank you very much for participating in our earnings results briefing today.
I would like to explain our medium-term management plan.
First, I would like to review the medium-term management plan that ended in the previous fiscal year.
See page three. This is the status of achievement of key management indicators.
Against the backdrop of a favorable business environment, we were able to achieve almost all of our key
management indicators, including the achievement of many of them one year ahead of schedule, through thepromotion of structural transformation and the steady development of productivity improvements.

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As noted on page four, looking at the performance by segment over the three-year period, we believe wehave achieved solid growth, exceeding our targets in each segment with the exception of BPM, where thebusiness environment has become more challenging.
In the Offering Service, settlement-related and other services drove the expansion of business scale. Profit
margins have also increased compared to three years ago, but due to the heavy burden of upfront investment
and other factors, operating profit margins have not yet reached a satisfactory level.

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25See page five. This is about cash allocation.
Cash generation from steady business growth and a reduction in strategic shareholdings exceeded
expectations. In response, we have aggressively implemented financial measures such as share repurchases
to optimize our capital structure, in addition to investing in growth in our business and human resources andstrengthening shareholder returns.

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The status of our initiatives is summarized on page six.
We feel that we have been able to revitalize various initiatives based on the five basic policies, but on theother hand, many of the new initiatives are still in the middle of the road in terms of deriving concrete resultswith benefits. We recognize that our future task is to bring these activities to fruition and lead to the nextstage of growth.

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Next, see pages seven and eight. These are our sustainability initiatives.
As a result of our steady activities and the development of our system, we have received a high external
evaluation, and we intend to continue our efforts from a long-term perspective, aiming for even higher goals.

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Next, I would like to introduce our newly formulated Group Vision 2032.
First of all, page 10 shows the positioning of the Group Vision 2032.
The Group Vision is a long-term management policy to realize new possibilities and options, which is clearlystated in our basic philosophy "OUR PHILOSOPHY" and our Corporate Sustainability Policy.

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Page 11 provides an overview of the Group Vision 2032 that we have formulated this time.
We have had a group vision that targets the year 2026. However, in light of changes in the internal andexternal environment, we have updated it. That is the Group Vision 2032. We will further strengthen our
corporate strength based on the business guidelines we have established to realize the theme "Societyoriented, operationally diverse, globally active."

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In light of this perspective, we have revised some of the existing strategic domains, as shown on page 12.

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From here, I will explain the new medium-term management plan.
Page 14 shows the positioning.
The Mid-Term Management Plan is the first stage in realizing the Group Vision 2032, as I mentioned earlier,and aims to resolve the gaps and issues between what we need to do to become an indispensable presencein the social transformation we aim for in 2032 and the results we achieved in the previous Mid-Term Plan,
and to acquire new positions and capabilities.

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33See page 15.
The diagram shows not only the medium-term management plan, but also a long-term growth scenario, whichis the direction that the Group Vision aims to take. This is an ambitious one, but we will keep our eyes highand strive to realize this goal.

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Page 16 is a summary of this medium-term management plan.
The slogan is "Frontiers 2026." With frontier exploration as our basic policy, we aim to achieve sustainablegrowth with added value, and to achieve social and customer transformation through qualitative
improvements in the overall value chain, starting with future-oriented market development and businessdomain expansion.
Moving onto key management indicators. First, from the perspective of human resource growth and valueadded circulation, we aim to achieve an operating income of over JPY3.5 million per head.
Then, from the perspective of improving earning power, we set the operating margin at 13.1% and theadjusted operating margin at 13.4%.
In terms of creating value of asset which is equal to intellectual property, we have set ROIC at over 13% and
ROE at over 16%.
From the perspective of earning the trust of society, we have set net sales of JPY620 billion, and from theperspective of valuable growth, we have set an average annual growth rate of over 10% for EPS. We have set
these five indicators.
There are five basic strategies for achieving this goal, and I will explain each of them later.

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Please see page 17. This section summarizes the growth scenarios for operating income in the medium-term
management plan.
We plan to increase operating income by JPY16.5 billion, or 25%, over the three-year period to JPY81 billion,
compared to the fiscal year ending March 31, 2014.
We intend to achieve this by continuing to strengthen our front line, especially by developing the market on
the functional axis as a driver of growth, in addition to strengthening our business base for sustainable growth
while securing current growth, including addressing issues.

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From here, I would like to explain our basic strategy. Pages 18 and 19 show our market strategy.
Page 18 shows the direction and numerical plan for the five main segments.
I would like to explain a few points.
First, in the area of Offering Service, we will continue to focus on our core strength in settlement services, andaim for strong growth by developing new businesses while incorporating peripheral areas. We believe that
improving profitability is essential to continue aggressive investment, and we will continue to focus on
improving the sophistication of our investment management.
Next is financial IT. Although the sector will peak out after the completion of a large-scale project, we intend
to establish a foundation for renewed growth by acquiring new customers through the enhancement andexpansion of the modernization service system in response to the de-legacy needs that are in full swing.
Although some businesses are struggling, customers' willingness to invest in IT is strong against a backdrop of
DX demand and other factors. We believe that the favorable business environment will continue for the Group.
In this environment, we intend to grow as a whole, while developing diverse services that meet the market
needs each segment confronts and promoting the renewal of our business.

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Page 19 is the global strategy.
As a segment, it is in the Offering Service. Our goal of JPY100 billion in consolidated sales by FY2026 remains
unchanged, as it has for some time, in order to realize a top-class ASEAN IT consortium.
We will continue to focus on expanding the scale of our business by making full use of M&A and capital andbusiness alliances in the axes of channels, technology, and consulting, as well as promoting the valueenhancement of our consolidated subsidiaries and other partner companies in each country that will serve asbase camps for our business development.

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Page 20 is the service strategy.
We will expand our services and add more value by determining our focus point from the perspective ofindustry axis and functional axis respectively, and concentrating investment of management resources.
The key to market development along the industry axis is the establishment of competitive services for deep
penetration into the core business domain.
In terms of market development based on the functional axis, the key will be the expansion and developmentof specific operations and functions, as well as pure services to solve social issues.
Common to both is the promotion of a full value chain of services to meet the wide-ranging transformationneeds of customers through the expansion of consulting, UX design, analytics, and BPO, and the enhancementof service competitiveness by strengthening the feedback cycle of customer feedback.
In particular, with respect to market development along the functional axis, we are working to cultivate arecurring business that can realize high profitability, and we will once again actively focus on businessdevelopment that solves the four important social issues.

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Among the service strategies, page 21 explains the payment business, which is particularly important.
Amid the tailwind of the expected continuous growth of the cashless market, we expect this business to makea leap forward as one of the growth drivers by leveraging our group's strengths and steadily promoting the
new strategies introduced at the December 2023 business presentation through this medium-term
management plan.

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Page 22 is the technology strategy.
We will continue to develop comprehensive measures to improve productivity and competitiveness throughanticipatory research and early application of these technologies, based on a technology portfolio that wehave selected from among the rapidly changing technologies in the world, not limited to generative AI.

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On page 23 is our intellectual property strategy.
The Group already has a large number of intellectual properties, but in order to achieve both businessexpansion and high value-added, it is necessary to refine these intellectual properties with a market-in
approach and to stimulate the creation of new intellectual properties.
We will continue to digitize our customer contact points and reflect insights gained from customer feedbackin various intellectual property, to create high-value services and create a process for providing services witha high level of satisfaction. We hope to create a virtuous cycle that will lead to better communication with ourcustomers and the creation of high-value information that will lead to the next intellectual property.

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Pages 24 and 25 are human resources strategies. Please see page 24.
As I have said in the past, human resources are the most important management capital, and we will continue
to actively invest in human resources, which are the sources of creating and enhancing corporate value, withabsolutely no slackening.
In these three years, we expect to invest over JPY10 billion in education, compensation, and other areas. We
aim to increase productivity and per capita operating income by 20% by supporting each employee's newchallenges and promoting a good cycle of value exchange between society and the Company, so that
personnel with a combination of expertise can provide high added value.

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As part of this effort, as shown on page 25, we have established a human resource investment framework toenhance the effectiveness of the value-added improvement cycle through human resource investment.

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Starting from page 26, we will explain our financial policy.
Based on a sound financial base, we will seek to achieve sustainable growth through aggressive growthinvestments, while striking a balance between improving capital efficiency and strengthening shareholder
returns, in pursuit of further enhancement of corporate value.
The goals as specific indicators are threefold.
We have set our ROE target at over 16%. This means that we set the level in the fiscal year ending March 2024,
excluding transitory factors, as a minimum standard, and we aim to achieve over 20% in the long term.
As for ROIC, which will be introduced as a new indicator starting with the new plan, we have set the target
assuming a slight decline over the next three years due to aggressive growth investments, while maintaining
financial discipline. However, from a long-term perspective, we believe that we can achieve a high level offinancial discipline by generating the benefits of growth investments.
With regard to EPS growth, we have set a target of over 10% CAGR, the same as in the previous medium-term
management plan, with the aim of continuing to achieve higher value per share, centered on sustainablebusiness growth.

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Page 27 shows the cash allocation and balance sheet structure assumed in the current medium-term plan.
We intend to aggressively invest in growth and strengthen shareholder returns based on our ability togenerate cash based on profit growth. In addition, we assume that financial leverage through the use ofinterest-bearing debt will be effective, based on the premise of ensuring financial soundness.

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Page 28 summarizes the growth investments in the medium-term plan.
Our view that aggressive growth investment is essential for sustainable growth and enhancement of corporate
value remains unchanged. We plan to invest approximately JPY100 billion in growth over the next three years.
In addition to internal reinforcement, we will actively consider M&A and other opportunities to review andstrengthen our business portfolio. We would also like to be flexible in revising allocations, etc., depending on
the situation.

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Page 29 is the basic policy for shareholder returns.
As Kawamura explained earlier, in this medium-term plan we intend to increase engagement with ourshareholders by raising the target total payout ratio from 45% to 50%, and by continuously enhancing thedividend per share.

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Page 30 summarizes the main performance targets.
One point I would like to emphasize is that we have set a target of 30% for the gross profit margin, which wehope to achieve as a result of strengthening our business competitiveness.

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49Here, on page 31, is a brief introduction to our efforts to advance ESG in sustainability management.
As you know, the E, S, and G cannot be accomplished overnight, but we would like to continue our efforts
from a long-term perspective and link them to the advancement of management.
As a supplemental note on solving social issues through business activities, we believe that we need tointegrate business and sustainability, and that the promotion of business in line with our strategic domain
itself creates social value. Based on this concept, we have reached the conclusion that we do not need todifferentiate between the service-type business, which directly solves social issues, and the business that willcontribute to customers with SI for solving social issues. As such, we have decided to dissolve the former
category of social problem-solving service business, which we had previously defined as a service businessthat solves social issues.

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Please see page 32. These non-financial management indicators are based on the materiality theme.
I will not go into details here, but I believe that this is an important indicator, and we will continue to work
hard to achieve it.

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In my final explanation, on page 33, I would like to reiterate my thoughts on the medium-term plan and mymessage for the future. Frankly speaking, we recognize that this medium-term plan is a challenging one, andthat it is not possible to achieve its goals by simply extending the previous plan. As you know, the external
environment is changing from moment to moment, and the business conditions of our group are notguaranteed to be as smooth as they have been in the past.
As I mentioned before, the main issues we are currently facing are the further expansion of our service
business and the accompanying realization of high profitability, re-growth after the peak of large financial
projects, leveraging of BPM-related business, and upgrading of the Group's value chain. We are addressing
each of these issues one by one, but we have not yet started the mid-term plan with a clear solution or path
to resolution. However, we have a strong will to achieve even the highest goals by doing our utmost to achievethem, and to continue to grow by breaking through difficult situations. In addition to the various issues thatexist today, there are new issues that will continue to emerge in the future. We would like to grow even moreby facing and overcoming each challenge with sincerity and care, and we believe that we have the power todo so.
We will continue to realize sustainable growth of the Group and further enhancement of corporate value by
strengthening the front line and structural transformation through each employee becoming a pioneer whomoves one step further forward in his/her position, based on the basic policy of the new medium-termbusiness plan, which is to explore the frontier. I hope that you will look forward to our efforts. This concludes
my explanation.
Moderator: Thank you.
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Question & Answer

Moderator [M]: We will now have a question-and-answer session. When you are nominated, please give yourcompany name and your name followed by the question you wish to ask.
Please note that up to two questions can be asked per person at a time. Please note that due to time
constraints, we may not be able to answer all questions. If you have a question about a particular slide, please
specify the slide number as well, as the slide will be projected. We will now begin the question-and-answer
session.
Mr. Tanaka from Goldman Sachs Japan Co., Ltd., please ask your question.
Chikai Tanaka [Q]: This is Chikai Tanaka from Goldman Sachs. Thank you. I have two major points, and I would
like to ask you about the medium-term plan and unprofitability. First of all, in confirming the short-term
unprofitability of the project, I would like to know the details of why the project was unprofitable this time,such as whether there were any technical difficulties, or whether you were not familiar with it because it wasa project of another company.
In addition, please tell us what assumptions you are now making about the timing of the cutover. This is thefirst point.
Okamoto [A]: First of all, we were working on a project to replace an existing system that another company
was in charge of, and we had to deal with the high degree of difficulty of the system requirements, but wewere not able to keep up with them and the quality deteriorated. This is the cause.
In response to this, we have also introduced a quality process to deal with the problem, as it occurred in H1
in the regional IT solutions as well. In addition, as I explained in H1, we are now in the process of implementing
concrete measures to properly assign personnel and introduce people from the TIS side to deal with thesituation. That's all.
Chikai Tanaka [Q]: I'm sorry. Can you also tell us when the cutover will take place and whether this is a corerenewal project or something peripheral that is not core to the project?
Okamoto [A]: As for the timing of the cutover, we have settled the account once with the customer and arein the process of discussing with them about what to do from now on, so it is not clear at this point. This is
the first point.
The second point is whether the system is core or not. Some part is the combination of core system andperipheral system and some part is core system.
Chikai Tanaka [Q]: I think the fact that cutover has not been decided yet is that you are in the midst of
discussing it. Does that mean that you are going to reevaluate the contract in some way and it will start
profitably this quarter, or should we look at it as basically just not having a cutover set and running it at zero
revenue for a while? Which is closer to your plan?
Okamoto [A]: We are thinking of a completely separate contract, and then re-signing it again.
Chikai Tanaka [Q]: Understood. Thank you. Second, I would like to ask about the outlook for the Offering
Service part of the medium-term plan. The plan is to grow at an annual rate of more than 20%. Can you give
us some background on this?
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In particular, does this include, for example, the effect of the M&A that we have been doing for the past few
years, and is there an assumption that the credit SaaS renewal project will be somewhere during this mediumterm plan? Please elaborate on this part, as it appears to be a bit of discontinuous growth. That's all.
Kawamura [A]: Your question is about the growth of the Offering Service in the medium-term plan period.
First of all, we are not including new M&A here, so the plan is based on organic growth at this point in time.
In particular, regarding sales, the overseas business contributes to sales as well, which is strong. We are also
looking to improve profitability by expanding our strengths in digital marketing and overall business
management, with a focus on settlements.
Please note that credit SaaS is partially included in the plan, as we are eager to win an order from one company
and start development during this mid-term plan period, but please understand that we are not relying on
this to achieve such growth. That's all.
Chikai Tanaka [Q]: Just to confirm, is this one company based on the assumption of a very large project likebefore? You mentioned that you would be targeting mid-size customers. On what sense of size have you
included that company in the assumption for the plan?
Okamoto [A]: It is safe to say that it is a middle-sized company. I hope you understand that it is not as big as
the first company.
Chikai Tanaka [M]: I understand. Thank you very much for the detailed explanation. That is all from me.
Okamoto [M]: Thank you very much.
Moderator [M]: Thank you. Next, Mr. Kikuchi from SMBC Nikko Securities Inc., please go ahead.
Kikuchi [Q]: This is Satoru Kikuchi. Thank you. I would like to continue what you just said, or rather, I would
like to ask you about the medium-term plan. In the breakdown page of the medium-term plan, President
Okamoto repeatedly mentioned that you will keep your eye level high from the beginning, or it is challenging.
I wonder which parts are particularly challenging and whether we should look at that part by discounting to
70% or 80%. I would like to know how we should understand what President Okamoto said about having eyelevel high and challenging. This is the first question.
Okamoto [A]: Basically, we have been doing the three years that have ended, and, given there was large-scale
project, we have been trying to grow our Offering Services as much as possible during that time. In the next
three years, we recognize that it is very important to put this Offering Service on a solid growth trajectory andon a profitable trajectory, and in some respects, this is a challenging task.
In the case of financial IT, the large-scale project has peaked out, and next we need to acquire more and more
new customers. This is to be acquired through the business of modernization, and I think the main point isthat we must take on the challenge of starting up this business.
Kikuchi [Q]: Do you mean this plan is not a most likely plan, but is a case where the Company is substantiallysuccessful, as the target was set high, although you may not be able to mention the minimum figures here?
If we make our business performance forecasts according to this plan, consensus may become too high. Is it
OK with the Company?
Kawamura [A]: The medium-term management plan that we are putting out this time is a plan that we havebeen making with solid planning, as we have been accomplishing our medium-term management plans wellin the past.

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As Okamoto mentioned earlier, all of the orders have not necessarily been received at this point in time, so
there are some uncertainties in the areas of very strong growth, such as Offering Service and regional IT
solutions. We are determined to achieve this plan by achieving solid organic growth, and we are determined
to do so at this point.
Kikuchi [Q]: Thank you very much. The second point is that the regional IT solutions segment is expected to
grow significantly this time. I think this is due to the effect of eliminating unprofitable projects in the termthat has ended, but I think it's also the case with INTEC Inc. and SorunPure Inc. in regional IT solutions.
I think the Offering Service is an extension of the existing business rather than strategic, but I have theimpression that you are aiming for a very high growth, especially in terms of profit. I would like to know
specific measures, if any. This is the second point.
Kawamura [A]: First of all, we believe that we will be able to increase profits by first firmly controlling theunprofitability of regional IT solutions, which amounted to nearly JPY3 billion in the previous fiscal year. In
addition, in this segment, we would like to capture the strong growth in IT investment demand from Japanese
small- and medium-sized enterprises and regional areas.
In addition, we are oriented toward providing services to municipalities and financial institutions, and I believe
we have a good track record in this area, so we have been making solid progress in increasing productivity.
We have recorded unprofitable results this time, but apart from that, we have achieved solid profit growth.
We now believe that we have a stretchy target view here for 2026, and that we can achieve this by taking firm
action.
Kikuchi [Q]: Thank you very much. I would like to follow up, or add one more. I think you mean that financial
IT will turn around and grow after peaking out. Is it correct to understand in this way?
Kawamura [A]: Yes. For the fiscal year ending March 31, 2025, we are planning a decrease in profits due inlarge part to the negative impact of large credit card-related projects, especially public-sector financial
institutions. We expect that the credit card-related business will be negative until the fiscal year ending March
31, 2026, but based on this, for the fiscal year ending March 31, 2027, we plan to make a turnaround bywinning modernization business, as Okamoto mentioned earlier, and more orders from new clients and coreclients in the existing credit card sector. That's all.
Kikuchi [Q]: I see. Basically, I think modernization actually means renewal of systems for existing large andmajor customers and renewal of core systems. Do you have any specific orders in your sight?
Okamoto [A]: In fact, of course we have modernization business for existing customers, but please understandthat we are using modernization as a weapon to acquire new customers. We have the order from one
company which is already fixed and currently being worked out.
Kikuchi [M]: Thank you. That's all.
Okamoto [M]: Thank you very much.
Moderator [M]: Thank you. Mr. Tanaka from Morgan Stanley MUFG Securities Co., Ltd., please go ahead.
Hideaki Tanaka [Q]: This is Hideaki Tanaka of Morgan Stanley MUFG. Thank you. For the first point, regarding
the overall personnel expenses, please tell us what is the amount and percentage for the fiscal year that has
ended, and what is your assumption including across-the-board pay increase for the new fiscal year?

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Kawamura [A]: For the fiscal year that ended, we had originally stated and declared a personnel cost increaseof about JPY5 billion, but after the fiscal year ended, the final figure was JPY5.2 billion, so the personnel cost
increase was roughly in line with the assumed plan.
For the fiscal year ending March 31, 2025, which has already started, we have of course factored in the usualcompensation improvements, but basically, we have factored in a little over JPY1 billion in this fiscal year's
forecast. Therefore, we are considering investing in human resources at a cruising speed at this point.
However, in achieving a medium-term management plan, as stated on the page of its material, our policy is
to invest aggressively in human resources, and we intend to invest aggressively in human resources as well as
business growth. That's all.
Hideaki Tanaka [Q]: Thank you. Considering your company's overall labor costs, isn't an increase of a little
over JPY1 billion quite small? When we look at this world.
Kawamura [A]: In that sense, apart from the usual compensation improvement, there were some groupcompanies whose salary level had not been raised last year, which was raised this year. This part is an increaseof JPY1 billion. I'm sorry. In other words, JPY1 billion increase is equivalent to JPY5 billion increase done mainly
for TIS in previous fiscal year. Apart from that, we factored in a salary raise of 2% to 3%.
Hideaki Tanaka [Q]: I see. Average wage increase is expected to be 2% to 3%. How much increase do you
expect in headcount?
Kawamura [A]: We are not making any major changes in the composition of our workforce, so we are planninga slight increase in the number of employees, including those who will be hired and retire.
Hideaki Tanaka [Q]: In terms of total labor costs, do you see them moving in the range of 3% to 5%?
Kawamura [A]: Well, yes.
Hideaki Tanaka [Q]: Is this the same approach during the medium-term plan period?
Kawamura [A]: That is our baseline, but as I mentioned earlier, we would like to invest in compensation andhuman resources when we make aggressive investments, and we will consider this in conjunction withbusiness growth.
Hideaki Tanaka [Q]: Thank you. The second point is the global strategy that President Okamoto mentioned.
I'm not sure if the number of pages in the document I have and the one you have here match, but in theMarket Strategy - Global Strategy section, you say you are aiming for JPY100 billion. Since this figure isexpressed as consolidated net sales, the figure is calculated by adding up the sales of equity method affiliates.
Is it correct to assume that the JPY33.6 billion in FY23 results is overseas sales within the consolidated total?
Kawamura [A]: Yes. To briefly supplement the figures, first of all, the consolidated net sales of JPY33.6 billion
is the actual consolidated net sales at this point in time. As for the target of JPY100 billion in consolidated net
sales in 2026, we are aiming for this scale of business, as it says.
At present, the organic growth of our consolidated subsidiaries is approximately JPY40 billion, and we areaiming for JPY100 billion, including inorganic growth. Let me say that the overseas business sales included in
the plan are approximately JPY40 billion.
Hideaki Tanaka [Q]: So you have included JPY40 billion in your medium-term plan?
Kawamura [A]: Yes.
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Hideaki Tanaka [Q]: What is the main area of growth in this?
Kawamura [A]: First of all, the biggest one is our listed subsidiary, MFEC in Thailand, and we will expand
mainly through this.
Hideaki Tanaka [Q]: Thank you. Sorry, in relation to this, if you have any good stories on the cooperation with
Grab, please share them with us. If you don't, that's fine.
Okamoto [A]: There has been no major change, although we continue to receive referrals, especially fromIndonesian transportation companies.
Hideaki Tanaka [M]: Thank you. That's all.
Moderator [M]: Thank you.
As there are no further questions, this concludes the question-and-answer session.
In closing, President Okamoto would like to offer a few words.
Okamoto [M]: Thank you very much for joining us today at the Financial Results Briefing for the Fiscal Year
Ended March 2024 of TIS Inc. If you have any further questions, please ask them during individual interviews
or by phone to our IR staff.
Thank you very much for your time today.
Moderator [M]: This concludes today's briefing.
Thank you very much for taking time out of your busy schedule to join us today.
[END]______________
Document Notes
1.
2.
3.
4.

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Portions of the document where the audio is obscured by technical difficulty are marked with [TD].
Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides ananswer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.

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