COMPANY RESEARCH AND ANALYSIS REPORTNIPPON SYSTEMWARE CO., LTD.
9739
Tokyo Stock Exchange First Section

7-Jul.-2020
FISCO Ltd. Analyst

Nozomu Kunishige

FISCO Ltd.
http://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. Summary of the FY3/20 results....................................................................................................................

01

2. FY3/21 results forecasts..............................................................................................................................

01

3. Medium-term management plan............ ......................................................................................................

01■Company Profile--------------------------------------------------------------------------------------------------------------------------------------------------------- 02
1. Company Profile.................................... ......................................................................................................

02

2. History................................................... ......................................................................................................

03■Business overview---------------------------------------------------------------------------------------------------------------------------------------------------- 04
1. The Company’s strengths............................................................................................................................

04

2. Business Description............................. ......................................................................................................

05■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 08
1. Summary of the FY3/20 results....................................................................................................................

08

2. Segment overview.......................................................................................................................................

09

3. Financial condition and management indicators. .........................................................................................

11■Outlook for the future-------------------------------------------------------------------------------------------------------------------------------------------- 13• FY3/21 results forecasts..............................................................................................................................

13■Medium- to long-term growth strategy------------------------------------------------------------------------------------------------ 13
1. Targets in the medium-term management plan. ...........................................................................................

13

2. The plan by segment.. ..................................................................................................................................

14

3. Initiative examples from the first fiscal year..................................................................................................

18■Shareholder Returns Policy----------------------------------------------------------------------------------------------------------------------------- 20■Information Security Policy------------------------------------------------------------------------------------------------------------------------------ 21

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/█ Summary
Aiming to be a company that guides its customers to realizing DX
NIPPON SYSTEMWARE Co., Ltd., <9739> (hereafter, also “the Company”) is an independent IT solutions provider
founded in 1966, and it is in an engineering group in which engineers account for nearly 90% of all employees.
It conducts three solutions businesses; IT Solutions, Services Solutions, and Product Solutions. The Company’s
biggest strength is its backbone to support the realization of Digital Transformation (DX), which is a business transformation measure to create business models and to change business processes by using new digital technologies.
It does so through utilization of synergy between its three businesses on the axes of AI and the Internet of Things(IoT), which connects items such as home appliances and sensors over a network as a way to undertake not only
data collection, but also remote monitoring and control and use in product development and marketing. Its policy
is to utilize this strength for its growth strategy for the future.
1. Summary of the FY3/20 results
The Company reported sharply higher sales and profits at ¥38.2bn in net sales (+6.0% YoY) and ¥3.86bn inoperating profit (+15.1%) in FY3/20, setting consecutive all-time highs. Both sales and profits continue to steadilyrise. This was an upbeat outcome with upside versus initial forecast of 0.7% in net sales and 10.3% in operating
profit. Operating profit margin climbed from 9.3% in FY3/19 to 10.1% as SG&A expenses only rose 5.9% versus a
10.6% increase in gross profit.
In the IT Solutions business, while net sales increased 6.8% YoY on gains in system equipment sales to retailers andinfrastructure projects for government agencies and organizations, operating profit fell 1.8% because of multiple
unprofitable deals. In the Services Solutions business, net sales were up 7.0% on higher sales in Cloud infrastructureservice and digital solutions, and operating profit expanded 114.3%, significantly beating the forecast, thanks to
improved profitability with growth in business that provides higher value-added services. In the Product Solutions
business, net sales rose 4.6% on stronger business in facilities and communications equipment for embedded
development and also device development, and operating profit increased 10.5% on higher profitability for somedevice development projects. Based on these results, the capital ratio rose to 70.0%, putting it well above theTSE-1 information and communications industry average (40.2% in FY3/19). We think the Company possesses
very strong financial health. The Company paid a ¥30 dividend, on par with the previous fiscal year which worked
out to a 16.8% payout ratio.
2. FY3/21 results forecasts
The Company has not decided FY3/21 forecast yet due to uncertainty about the impact of the COVID-19 outbreakon business activities and overall results and difficulty preparing suitable and rational projections at this point. It
intends to promptly disclose FY/21 forecast once it can make reasonable estimates.
3. Medium-term management plan
In the medium-term management plan (FY3/20 to FY3/22), under the slogan “DX FIRST,” the policy is to transformthe Company itself into “a value-creation company.” The targets for the plan’s final fiscal year are net sales of ¥43bn
and operating profit of ¥4.0bn, within which, DX-related net sales are forecast to grow to ¥10bn. The key to achieving
these ambitious targets will be coordinating the three businesses to respond to DX. In FY3/20, the first fiscal year,
DX-related business had a healthy start at roughly ¥2.8bn in sales aided by manifestation of results in its initiatives.

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01 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.

7-Jul.-20209739 Tokyo Stock Exchange First Section

https://www.nsw.co.jp/english/

Summary

Key Points
Is developing three solutions business, and its strength is that it has a backbone that can support customers’
realization of DX through utilizing the synergies from these businesses, on the axes of IoT and AI• Sustained steady growth in FY3/20 with upbeat results that substantially exceeded its initial forecast withincreases (YoY) of 6.0% in net sales and 15.1% in operating profit• In the medium-term management plan under the slogan of “DX FIRST,” the targets for the plan’s final fiscal year
of FY3/22 are net sales of ¥43bn and operating profit of ¥4bn. DX-related business sales expanded smoothly
in the first fiscal year on manifestation of initiative results•

Results trends
Net sales (left)(¥mn)

Operating profit (right)

40,00036,10729,94330,667

4,000

3,860

33,50230,000(¥mn)
38,273

3,354

3,000

2,940
2,390

20,000

2,000

2,020
10,0001,000

00
FY3/16

FY3/17

FY3/18

FY3/19FY3/20Source: Prepared by FISCO from the Company’s financial
 results█ Company Profile
Aims to create and provide excellent systems to enrich society
1. Company Profile
The Company Group’s basic management policy is to “Realize a highly profitable corporate structure” based on its
corporate philosophy of “Humanware By Systemware,” which expresses its desire to “create and provide excellent
systems to enrich society.”

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02 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Company Profile

In addition to the Company itself, the Company’s Group consists of three wholly-owned consolidated subsidiaries;
NSW TECHNOSERVICES Co., Ltd., which conducts businesses including system development and infrastructure
construction; in China, NSW China Co., Ltd., which conducts businesses including embedded software development; and NSW WITH Co., Ltd., a special subsidiary for the employment of people with disabilities that provides
general agency services and support services. In January 2018, NIHON SOFTWARE ENGINEERING Co., Ltd., which
conducts a systems integration business and other businesses, was made a subsidiary. The Company absorbed
this entity and brought it under the Services Solutions business in April 2020.
The Company’s business base is located to the west of Tokyo, but it has customers throughout the country, including
government offices and public organizations, and also many major companies, such as in the manufacturing anddistribution industries. When it was first establishment, an overwhelming large percentage of transactions werewith the NEC <6701> Group, but alongside the expansion of the customer base in recent years, this percentage
has fallen to just under 20% of net sales, and every year the scope of customers for transactions is widening. The
Chinese subsidiary mainly covers Japanese companies that are entering-into the local Chinese market. Also, in
April 2018, the Company opened an office in Taiwan (representative office), from which it plans to conduct customer
development and field surveys for the market in Taiwan, which is a global base for the manufacture, assembly, andtesting of semiconductors.
The Company Group is an engineering group with a total of 2,218 employees and nearly 90% of its workforce
comprising of engineers as of the end of March 2020. Mr. Shoji Tada has served as the President and Representative
Director since April 2013.
2. History
The Company Group started in 1966 as an independent software house, with a software development business andan outsourced computing business. Subsequently, in 1968 it started an operation management services business,and in 1978, a development business for firmware and logic circuits, which led to its current Product Solutions
business. Alongside the evolution of IT technologies, it started a systems integration business in 1990, a datacenter
business in 1998, a Cloud service business in 2009, and an IoT/M2M business in 2013, and its business areas
have expanded.
During this time, in 1982 the Company changed its name to its current name of NIPPON SYSTEMWARE Co., Ltd.
It began the over-the-counter trading of its shares in 1996 and opened the Yamanashi IT Center with the funds
obtained from the market. In 1999 it was listed on the TSE 2nd Section, in 2000 its listing was upgraded to theTSE 1st Section, and in FY3/16 it celebrated the 50th anniversary of its establishment. The Company is targeting
further advances through its role as a leader in realizing customer DX in the current medium-term management plan.

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03 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Company Profile

History
August 1966

Established the Business Computing Center in Minato Ward, Tokyo. Commenced software development and outsourced
computing activities

October 1968

Commenced operation management service activities

December 1975

Acquired own building (present site of Head Office)February 1976

Became a member of Japan Software Industrial Association (now Japan Information Technology Service Industry Association)

June 1978

Commenced development activities related to firmware and logic circuits

June 1980

Launched a business for the sale of office computers and office-automation equipment

March 1982

Changed the company name to NIPPON SYSTEMWARE CO., LTD.

March 1986

Established the Osaka Branch (now the Osaka Office) in Osaka City. Strengthened regional development.

September 1986
February 1990
August 1990
April 1996

Started construction of the new Head Office building
Started the systems integration business
Established Nippon Technowave Co., Ltd., as a wholly owned subsidiary
Stock registered as over-the-counter with the Securities Dealers Association of Japan

October 1997

Obtained ISO 9001 certification, an international assurance of quality

August 1998

Established the Yamanashi IT Center. Launched the datacenter business

April 1999
March 2000
July 2002
September 2002
February 2005
March 2007
April 2007
October 2007
September 2009

The Company is listed on the TSE 2nd Section.
The Company is designated to the TSE 1st Section.
The outsourcing business to manage and control customers' information systems achieved the requirements to be certified in the
ISMS (Information Security Management Systems) assessment scheme.
Established NSW SALES CO., LTD.
Obtained ISO 14001 certification, an international environmental management standard
Obtained ISO/IEC27001, an international standard for Information Security Management Systems
Certified by the Ministry of Health, Labour and Welfare as a corporation promoting measures to support the development of thenext generation
Obtained ISO/IEC20000, an international standard for IT service management systems
Launched the Cloud service business

October 2009

Established NSW WITH CO., LTD. (currently a wholly-owned consolidated subsidiary)

April 2010

Established NSW China Co., Ltd. (currently, a wholly-owned consolidated subsidiary)

May 2013

Launched the IoT/M2M business

July 2013

Changed the name of NIPPON TECHNOWAVE CO., LTD., to NSW TECHNOSERVICES CO., LTD., after the merger with NSW
SALES CO., LTD.

January 2018

Acquired all the shares of NIHON SOFTWARE ENGINEERING Co., Ltd., and made it a subsidiary

April 2018

Established the Taiwan Office in Taiwan.

April 2020

Absorbed NIHON SOFTWARE ENGINEERING Co., Ltd.

Source: Prepared by FISCO from the Company’s website█ Business overview
Core businesses are IT Solutions, Services Solutions, and Product
Solutions. Is aiming to create an innovative future with IoT and AI
that leverage the technological synergies from these businesses
1. The Company’s strengths
The Company Group conducts three solutions businesses–IT Solutions, Services Solutions, and Product Solutions–and it is aiming to create an innovative future with IoT and AI that leverage the technological synergies from thesebusinesses. Its major strength is that it has technological expertise for both software and for hardware.

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04 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Business overview

The Company’s strengths include its accumulated industry and business expertise and systems-construction
capabilities that it has cultivated in the IT Solutions business in various industrial fields; a foundation for the provisionof infrastructure and platforms, such as service coordination capabilities in the Services Solutions business andfor the Cloud environment; product development capabilities, including for embedded software and LSI design in
the Product Solutions business; and technological development capabilities, such as for image processing. The
Company’s major strength is that it has a backbone that can support the realization of DX (Digital Transformation)that its customers want that leverage these technologies’ synergies on the axes of IoT and AT, and its policy is toutilize all these strengths for growth in the future.
The Company’s strengths

Source: Reprinted from the Company's results briefing materials

2. Business Description
Looking at net sales and operating profit by segment in FY3/20, the IT Solutions business provided 35.1% of net
sales and 31.2% of operating profit, the Services Solutions business 25.7% of net sales and 16.3% of operating
profit, and the Product Solutions business 39.2% of net sales and 52.4% of operating profit. The profit margin in
the Product Solutions business is relatively high, which is considered to be due to its high technological barrier toentry and that there are few companies of a similar size to the Company, which is independent, conducting thisbusiness. On the other hand, the profit margins in the IT Solutions business and the Services Solutions business
are relatively low due to the impact of reducing dependency on designated industries and operations in order tosuppress the effects of economic conditions to a minimum, and the handling of business across different industries
and operations. Nevertheless, profit margin has risen more than previously in the IT Solutions business on improved
profitability mainly in large projects and increased sales in package deals. The Services Solutions business is alsoseeing ramp-up in new businesses and higher profitability.

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05 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Business overview

Net sales and operating profit by segment (FY3/20)

31.2%

39.2%

35.1%

Net sales (outer):¥38,273mn,
52.4% operating profit (inner):¥3,860mn

IT Solutions
Service Solutions
Product Solutions

16.3%

25.7%

Source: Prepared by FISCO from the Company's results
 briefing materials
The IT Solutions business, which provides operations-related solutions, is comprised mainly of business solutions,finance and public sector solutions, and systems equipment sales. Based on the business expertise cultivatedover many years, such as for the manufacturing, distribution, finance and insurance industries, and for government
offices, the Company provides optimized solutions for its customers, from consulting through to systems design,development, maintenance, and operations.
The Services Solutions business was formerly included in the IT Solutions business, but at the start of the current
medium- term management plan, it was made an independent segment. The content of this business is the provisionof IT services, and it is comprised mainly of the digital solutions and Cloud infrastructure service businesses.
The Company delivers common solutions, such as IoT and AI services and Web site and EC construction, andoffers comprehensive management services that cover operational design of customer information systems as well
as system construction and management. It also provides other services, including housing services by its own
datacenters (a service in which the Company is entrusted with a server from the customer, or the computer withwhich to provide the service), hosting services (the Company lends to the customer the server it has prepared) andCloud services (services that provided data and software to users via a network). In such ways, it is supporting
customers’ systems through providing a variety of services.
In the Product Solutions business, the Company develops the embedded systems that are installed in electronic
devices and other equipment, and also develops LSI and FPGA, and this business is comprised of the embedded
development and device development businesses. In embedded systems development, the Company responds
to demand for product diversification, increased efficiency and improved design quality by using embedded technologies it has cultivated for app, middleware and driver development as a result of developing a wide range of
products for the automotive and industrial sectors amongst others. It also provides various solutions for the transition
to smart products. In addition, in LSI and FPGA development, it designs LSI (Large Scale Integration: integrated
circuits into which many electronic components such as transistors, resistors, and capacitors are integrated into
one semiconductor chip), including for image processing and communications-related, and boards (the design ofelectronic circuit boards). It provides high-level designs, logic designs and verification, logic integration, layout design,and solutions according to customer’s requirements, from manufacturing through to testing. It can also respond torequests for low-power designs and advanced processes in every field.

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06 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Business overview

There are high expectations that DX business based on IoT & AI solutions will become the Company’s new pillarof earnings by integrating expertise in the three existing businesses. It is a business to provide IoT & AI services
and edge devices solutions in a new field that only started in 2013. Therefore, it has not yet reached the stage ofrecording earnings as an independent segment, and the current situation is that its earnings are included in theexisting businesses. In IoT & AI services, the Company utilizes its strength of being able to provide total coordination,from devices through to the Cloud, to supports its customers’ creation of new business value, from the accumulationof data through to analysis and utilization, based on Toami, its IoT Cloud platform. Also, in edge device solutions,the Company proposes an IoT environment that is optimized for each customer from a small start that keeps costs
down, using its abundance of designs that are compliant not only with its own embedded applications but also with
LSI, and also its development capabilities and alliances with vendors of various types of sensors and devices. The
Company Group is promoting new services based on these IoT & AI solutions and working to expand DX businessunder the existing medium-term management plan.
The Company’s Toami solution is steadily gaining in market recognition mainly for “realization of IoT-accessible
products.” More than 100 companies cumulatively have adopted this solution, and alliance partners have expanded
to over 30 companies. This solution is available in over 30 countries worldwide. Inquiries for related services, suchas analysis service that makes more effective use of data collected through IoT, have risen too recently. Noritz
Corporation <5943> has been using the Toami solution in its remote monitoring system for commercial gas water
heaters since 2015 and broadened coverage scope to household water heaters in September 2018 with aims of
reducing bathroom accidents and boosting convenience. Through consolidation of water heater remote control
and smartphone app data in real time, the solution monitors conditions in the bathroom and facilitates remotecontrol, such as running a bath, from a remote location. HORIBA, Ltd. <6856> adopted Toami in a comprehensive
maintenance service assistance system for medical equipment and has offered commercial service since 2016. It
provides 24-hour monitoring of medical equipment, shares trouble information, and makes suitable assessments
and support responses. These capabilities resolve troubleshooting issues that had previously relied on skills of
trained personnel and aid product quality control and improvements based on various types of collected data. Other
companies utilizing the Toami solution include Tabuchi Electric Co., Ltd., Panasonic Corporation <6752>, Maintech
Co., Ltd., Choshu Industry Co., Ltd., Okiden System Co., Ltd., Japan Radio Co., Ltd., and RION Co., Ltd. <6823>.
Noritsu’s Toami deployment case

Source: Reprinted from the Company’s financial results briefing materials

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07 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.

7-Jul.-20209739 Tokyo Stock Exchange First Section

https://www.nsw.co.jp/english/█ Results trends
Upbeat start with the new medium-term management plan as sales
and profits significantly exceed initial forecast
1. Summary of the FY3/20 results
The Japanese economy sustained a moderate recovery trend against a backdrop of improved employment andincome conditions in FY3/20. However, uncertainty has risen about future prospects on concerns about trade friction
between the U.S. and China and heavy impact on domestic and overseas economic activity and social practices
with the COVID-19 outbreak. In the information services industry, meanwhile, corporate IT investments are vibrantand initiatives in DX, work style reforms, and other areas aimed at flexibly altering business processes and work
processes utilizing IoT, AI, 5G, and other digital technologies have picked up.
The Company Group started a new medium-term management plan (April 2019 through March 2022) in FY3/20 amid
these conditions. With a slogan of “DX FIRST,” it hopes to contribute to customer business model transformations
and work process reforms and accelerate business growth as a leader in realizing DX at customers by combining
work process knowhow and technology capabilities and various realization methods cultivated over many years.
Key aims are expansion of DX business based on existing IoT and AI services and business evolution that shifts
from consignment to proposal-style deals and from development to solutions and services in order to further solidify
the earnings foundation.
Thanks to these efforts, the Company reported sharply higher sales and profits at ¥38,273mn in net sales (+6.0%
YoY), ¥3,860mn in operating profit (+15.1%), ¥3,898mn in ordinary profit (+14.4%), and ¥2,668mn in profit attributable to owners of parent (+16.7%) in FY3/20, setting consecutive all-time highs. This was an upbeat outcome
with upside versus initial forecast of 0.7% in net sales and 10.3% in operating profit. Net sales increased in all threesegments, and profit overshot on higher sales and improved profitability with enhanced deal proficiency and shift
to high-margin deals. Operating profit margin climbed from 9.3% in FY3/19 to 10.1% as SG&A expenses only rose
5.9% versus a 10.6% increase in gross profit.
FY3/20 consolidated results(¥mn)
FY3/19FY3/20YoY

Results% of net
sales

Forecast

Results% of net
sales

Increase(decrease)

Net sales

36,107100.0%

38,00038,273100.0%

Gross profit

6,587

18.2%

-

7,285

19.0%

SG&A expenses

3,233

9.0%

-

3,425

Operating profit

3,354

9.3%

3,500

Ordinary profit

3,407

9.4%

Profit attributable toowners of parent

2,286

6.3%

Vs. forecast% change

Increase(decrease)% change

2,166

6.0%

273

0.7%

698

10.6%

-

-

8.9%

192

5.9%

-

-

3,860

10.1%

506

15.1%

360

10.3%

3,540

3,898

10.2%

491

14.4%

358

10.1%

2,400

2,668

7.0%

382

16.7%

268

11.2%

Note: the FY3/20 forecasts are the initial forecasts at the time of the FY3/19 results announcement
Source: Prepared by FISCO from the Company's financial results

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08 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Results trends

The Product Solutions and Services Solutions businesses
contributed to the profit increase
2. Segment overview
IT Solutions business sales reached ¥13,415mn (+6.8% YoY) on gains in system equipment sales to retailers andinfrastructure projects for government agencies and organizations. Operating profit, however, fell 1.8% to ¥1,205mn,
even with boosts from higher sales and improved profitability on some large projects, because of multiple unprofitableprojects (totaling ¥500mn in losses). While sales beat initial forecast by 1.6%, operating profit missed by 3.5% andmargin dropped from 9.8% in the previous fiscal year to 9.0%.
In the sales breakdown, financial and public solutions climbed to ¥6,378mn (+10.6% YoY) on large increases insystem development and infrastructure projects for government agencies and organizations. Additionally, systemequipment rose substantially to ¥2,263mn (+31.1%) mainly on POS system replacement at existing retail industry
customers. This activity reflected rush demand prior to the consumption tax hike in October 2019 and demand
aimed at achieving labor savings and automation to counter manpower shortages, primarily in the retail industry.
Business solutions, meanwhile, eased to ¥4,774mn (-5.7%) on diminished manufacturing and retail industry activity
as backlash to major consignment projects from the previous fiscal year and unprofitable projects in logistics andother system development businesses. The Company already booked provision for loss on construction contracts
for unprofitable projects.

Net sales and operating profit margin trends in the IT Solutions business
Systems equipment sales (left)
Business solutions (left)
Finance and public sector solutions (left)
Operating profit margin (right)(¥mn)
15,000

9,000

2,263

1,726
9.8

9.0

5,065

4,774

6,000

3,000

15.0

1 3 , 415

1 2 , 559
12,000

(%)

12.0

9.0

6.0

5,768

6,378

FY3/19FY3/20

0

3.0

0.0

Source: Prepared by FISCO from the Company's results
 briefing materials
The Services Solutions business posted higher sales and profits with ¥9,853mn in sales (+7.0% YoY), on increases
in Cloud infrastructure service and digital solutions, and ¥630mn in operating profit (+114.3%) thanks to extra profit
from the sales gain and improved profitability with growth in business that provides higher value-added services. Dueto these trends, sales beat initial forecast by 0.5% and operating profit overshot by a hefty 66.0%. Operating margin
hence improved significantly from 3.2% in FY3/19 to 6.4%. While this is a new segment and the large profit growthrate is partially attributable to the small denominator, profitability clearly increased and new businesses have taken off.

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09 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Results trends

In the sales breakdown, Cloud infrastructure service rose to ¥7,509mn (+5.9% YoY) with increase in cloud services
sales mainly on cloud conversions in existing customer projects and also stronger other services sales driven bydata collaboration service and Windows10 upgrades. Cloud infrastructure service profitability improved because ofsavings in data center operating costs and expansion of business that provides higher value-added services. Digitalsolutions strengthened to ¥2,343mn (+11.0%) with healthy increase in IoT and AI activity (particularly provision of
IoT accessibility in products) and Web and EC services. This business also received extensive AI inquiries and had
an increase in PoC (Proof of Concept; verification and demonstration aimed at proving new concepts, theories,
and ideas) projects.

Net sales and operating profit margin trends
in the Services Solutions business
Cloud infrastructure service (left)
Digital solutions (left)
Operating profit margin (right)

(¥mn)

(%)

12,00012.0

10,0009 , 204

8,000

2,112

9 , 853
2,343

6,000
4,000
2,000

7,092

10.0
8.0

6.4

6.0

7,509

4.0

3.2

2.0

0

0.0

FY3/19FY3/20Source: Prepared by FISCO from the Company's results
 briefing materials
The Product Solutions business reported ¥15,004mn in sales (+4.6% YoY) on stronger business in facilities andcommunications equipment for embedded development and also device development and ¥2,023mn in operating
profit (+10.5%) on the boost from increased sales and higher profitability for some projects in device development.
Compared to the initial forecast, sales were on track, while operating profit overshot by 8.2%. Operating margin
improved from 12.8% in FY3/19 to 13.5%. This segment sustained its position of having the highest profitability.
We attribute upbeat profitability to a tough technology entry barrier as explained above and few independent rivals
in this business with the Company’s scale.
In the sales breakdown, embedded development rose to ¥8,753mn (+4.8%), despite decline in automotive andmobile areas, on gains in industrial facilities, medical equipment, and other industrial facility areas as well as communications equipment with 5G-related projects. Device development advanced to ¥6,250mn (+4.3%) mainly onstronger business in image processing, which is the Company’s specialty.

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10 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Results trends

Net sales and operating profit margin trends
in the Product Solutions business
Embedded development (left)
Device development (left)
Operating profit margin (right)(¥mn)
16,00014,00012,00014,342
12.8
5,991

(%)
15,004

16.0

13.5

14.0

6,250

12.0

10,000

10.0

8,000

8.0

6,000
4,000

6.0
8,753

8,351

2,000

4.0

2.0

0

0.0
FY3/19FY3/20Source: Prepared by FISCO from the Company's results
 briefing materials

Is extremely financially sound
3. Financial condition and management indicators
Looking at financial conditions, total assets expanded ¥2,305mn YoY to ¥30,516mn at the end of FY3/20. Thiswas due to an increase in cash and deposits that offset the declines in notes and accounts receivable - trade andproperty, plant and equipment. Total liabilities were up ¥128mn YoY to ¥9,144mn due to higher non-current liabilities
with a rise in retirement benefit liability. Total net assets rose ¥2,176mn to ¥21,372mn primarily due to booking profit.
As a result of the above, the current ratio (current assets / current liabilities) increased by 35.2 percentage points (PP)on the end of the previous fiscal year to 321.3%, and the Company’s short-term solvency is extremely high. Also,
the fixed ratio (fixed assets / equity capital) was 40.7%, down 5.2 PP, and the procurement of fixed assets (suchas equipment investment) is fully covered by shareholders' equity with no repayment deadlines, and the Company
Group does not have any debt and continues to practice debt-free management. Moreover, the equity ratio climbed
to 70.0%, which greatly exceeds the average for issues in the telecommunications industry on the TSE 1st Section(40.2% in FY3/19), and the Company can be evaluated as being extremely financially sound.

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11 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.

7-Jul.-20209739 Tokyo Stock Exchange First Section

https://www.nsw.co.jp/english/

Results trends

Consolidated balance sheets and management indicators(¥mn)
End of FY3/19

End of FY3/20

Increase (decrease)

19,395

21,8152,420

Cash and deposits

8,410

11,488

3,078

Notes and accounts receivable-trade

9,409

8,844

-565

748

837

89

8,816

8,701

-115

6,407

6,241

-166

135

117

-18

2,273

2,341

68

Total assets

28,211

30,5162,305

Current liabilities

6,779

6,789

9

Noncurrent liabilities

2,235

2,354

118

Current assets

Work in process
Fixed assets
Property, plant and equipment
Intangible assets
Investments and other assets

-

-

-

Total liabilities

9,015

9,144

128

Total net assets

19,196

21,372

2,176

Current ratio (current assets/ current liabilities)

286.1%

321.3%

35.2ptFixed ratio (fixed assets / equity capital)

45.9%

40.7%

-5.2ptEquity ratio

68.0%

70.0%

2.0pt

(Interest-bearing debt)

Stability

Source: Prepared by FISCO from the Company’s financial results

At the end of FY3/20, the balance of cash and deposits had increased ¥3,085mn at the end of the previous fiscal
year to ¥11,488mn. This was because expenditure, such as the payment of dividends and to acquire tangible fixed
assets, was covered by the funds obtained from operating activities.
Looking at cash flow trends, net cash provided by operating activities was ¥3,887 (up ¥1,229mn YoY) largely due
to a decline in provision for bonuses, increase in provision for loss on construction contracts , decline in tradereceivables, and income taxes paid, in spite of recording a profit before income taxes. Net cash used in investing
activities, meanwhile, eased to ¥306mn (down ¥117mn YoY). This mainly reflected purchase of property, plant andequipment and payments of leasehold and guarantee deposits. Net cash used in financing activities totaled ¥492mn(up ¥73mn YoY) with dividend paid as the main item.
Cash flow statements(¥mn)
FY3/19FY3/20

Increase (decrease)

Cash flow from operating activities

2,657

3,887

1,229

Cash flow from investing activities

-424

-306

117

Cash flow from financing activities

-419

-492

-73

Cash and cash equivalents at the end of the fiscal period

8,402

11,4883,085

Source: Prepared by FISCO from the Company's summary financial report

We encourage readers to review our complete legal statement on “Disclaimer” page.

12 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/█ Outlook for the future
FY3/21 forecast undecided because of uncertainty about impact by
the COVID-19 outbreak• FY3/21 results forecasts
The information services industry is headed toward growing demand for DX, which utilizes IT to implement management and business model innovations, promotion of work style reforms, and response to manpower shortages.
Amid these trends, the Company Group is accelerating business growth and innovations as a leader in realizing
customer DX under a “DX FIRST” slogan presented in the new medium-term management plan covering three years
from April 2019 through March 2022.
Meanwhile, companies might be more cautious in IT investments due to the COVID-19 outbreak impact. The
Company Group intends to closely monitor trends at major customers in manufacturing, retail, and other industries
in which it has large sales exposure and flexibly conduct initiatives to address changing conditions. The Company
has not decided FY3/21 forecast yet due to uncertainty about the impact of the COVID-19 outbreak on businessactivities and overall results and difficulty preparing suitable and rational projections at this point. It intends topromptly disclose FY3/21 forecast once it can make reliable estimates.

█ Medium- to long-term growth strategy
Aiming to be a company that guides customers to realizing DX
1. Targets in the medium-term management plan
In terms of the business environment assumed for the medium-term management plan (FY3/20 to FY3/22), there
are increasing concerns about an economic slowdown in Japan, including due to the impact of conditions overseas
and the hike in the consumption tax. Also, against the backdrop of the promotion of workstyle reforms and thedecline in the working age population, measures to improve productivity are urgently needed. With these kindsof environmental changes in the background, customer /companies’ measures for DX have become fully fledged,
and stable growth is forecast for the IT industry. On the other hand, alongside the solid demand, the shortage ofengineers is becoming even more serious, and the Company is aware that it will be necessary to both respond to
DX and to secure human resources.
In this sort of environment, the Company Group is aiming to transform in the future to become strong value-creationcompanies that as much as possible are not affected by economic fluctuations. Toward this, it is first aiming for net
sales of around ¥50bn and to build a solid business foundation. Also, for the time being it is focusing on achieving
business growth, while also working on establishing more autonomous, stock-type businesses that do not rely onhuman resources. In the next three years, under the slogan of “DX FIRST,” the policy is to transform the Company
itself into “a value-creation company” by contributing to its customers’ realization of DX.

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13 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

Based on the above basic policy and the key strategies, the Group’s management targets are first to increase net
sales from ¥36.1bn in FY3/19 to ¥43.0bn in FY3/22, which is the plan’s final fiscal year, and similarly, to increase
operating profit from ¥3.3bn to ¥4.0bn. Within these amounts, DX-related net sales, as the total for the threebusiness segments, are expected to increase to around¥10bn. Overall, net sales are forecast to increase about¥7.0bn over the three years, so it can be said that key to achieving the targets in the medium-term management
plan will be growing the DX-related businesses in the near future.
While the COVID-19 outbreak is likely to adversely affect business conditions for the time being, we think changes inthe business environment related to the outbreak might provide a catalyst that accelerates DX realization promotedby the Company Group as explained below.
Summary of the new medium-term management plan

Source: Reprinted from the Company's results briefing materials

2. The plan by segment
For the DX-related business, which forms the core of this plan, the digital transformation that each company isworking on is understood to be “companies’ measures for business transformation, of creating business models andchanging business process by utilizing new digital technologies.” The policy is to define the DX-related business in
the Company as “providing solutions and service businesses that support the realization of DX based on new digitaltechnologies, such as IoT, AI,” and as a “business involving DX-related product development and technologicaldevelopment, such as edge computing.” It intends to contribute to transforming customers’ business models
and operations processes through combining the operations expertise and technological capabilities that it has
accumulated up to the present time with the various methods of realizing DX.
Specifically, it plans to provide solutions proposals and services through coordinating the three business segments
to integrate its technologies and operations expertise. For this, it will target as customers various manufacturing
companies, and also companies in industries such as distribution, logistics, and construction.

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14 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

Coordinating the three businesses to respond to DX

Source: The Company's results briefing materials

In IT Solutions, the Company provides DX solutions that utilize its operations expertise in various industries, including
manufacturing, logistics, and distribution, and in related technologies, such as IoT, AI, and RPA. In addition, in its
existing businesses, as stable sources of earnings it will work to expand systems-construction projects in the lifeand non-life insurance and social security fields. The numerical targets aim for increases from FY3/19’s net salesof ¥12,559mn and operating profit of ¥1,228mn to net sales of ¥15,000mn and operating profit of ¥1,400mn in
FY3/22, which is the plan’s final fiscal year. Sales steadily expanded, but operating profit fell on setbacks from
unprofitable projects in FY3/20.

IT Solutions business targets(¥mn)
15,0009.8

Net sales (left)
Operating profit (left)
Operating profit margin (right)

（%）

9.0

9.3

10.0

12,000

8.0

9,000

6.0

6,000

3,000

15,00013,415

12,559

1,228

4.0

1,205

1,400

0

2.0

0.0
FY3/19FY3/20FY3/22 target

Source: Prepared by FISCO from the Company's results briefing materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

15 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

As the team to drive DX for the Company as a whole, Services Solutions undertakes initiatives to expand business
related to DX that are centered on IoT and AI, and enhance Cloud services that utilize the Company’s datacenters. In
conjunction with this, in the operations business also, it intends to increase added value, such as from data-linkage
services, and to strengthen the earnings foundations. The numerical targets aim for increases from FY3/19’s net
sales of ¥9,204mn and operating profit of ¥294mn to net sales of ¥11,000mn and operating profit of ¥500mn in
FY3/22. Operating profit increased to ¥630mn in FY3/20 and already surpassed the plan goal.

Services Solutions business targets
Net sales (left)
Operating profit (left)
Operating profit margin (right)

(¥mn)

（%）

15,000

10.0

12,000

8.0
6.4

9,000

6.0

4.5
3.2

6,000
9,204

4.0

11,000

9,853

3,000

2.0
294

630

500

0

0.0

FY3/19FY3/20FY3/22 target

Source: Prepared by FISCO from the Company's results briefing materials

In Product Solutions, the Company intends to accumulate core technologies for which it is taking a long-term
viewpoint for both the fields of embedded development and device development, and to establish technologicalsuperiority in the existing fields. At the same time, for high value-added technologies as well, the policy is to create
products and services to generate new sources of earnings. Numerical targets seek increases from FY3/19’s net
sales of ¥14,342mn and operating profit of ¥1,831mn to net sales of ¥17,000mn and operating profit of ¥2,100mn
in FY3/22. With sales and profit increases in FY3/20, this business is smoothly advancing toward realization of theplan goal.

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16 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

Product Solutions business targets
Net sales (left)
Operating profit (left)
Operating profit margin (right)(¥mn)
20,000

（%）
15.0

13.5

12.8

12.4

16,00012.0

12,000

9.0

8,000

4,000

17,00015,004

14,342

1,831

6.0

2,100

2,023

0

3.0

0.0
FY3/19FY3/20FY3/22 target

Source: Prepared by FISCO from the Company's results briefing materials



In order to maximize the synergies from the above three business segments, the Company has set six priority fields,
which include “developing and utilizing human resources” with a view to securing human resources overseas, forming
business alliances with domestic and overseas companies and “expanding M&A and other business alliances” and“improving the power of the brand.” It intends to work toward realizing “DX FIRST” in these fields.
Promoting DX and maximizing business synergies

Source: Reprinted from the Company’s financial results briefing materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

17 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

3. Initiative examples from the first fiscal year
The Company is promoting DX-related initiatives that are vital to attainment of medium-term management plan goals.
In FY3/20, the first fiscal year of the plan, it focused on expansion of IoT and AI-related services in manufacturing andconstruction industries and enhancement of partner sales. In IoT and AI areas, the Company pursued recruitment of
new customers and large project support leveraging its strength in “IoT-accessibility in products,” and advancementfrom PoC to full-fledged application of AI. In other DX areas, it expanded cloud and data collaboration services,
mainly in existing digital business, reinforced RealWear and other new services (explained below), and bolsteredactivities in automated driving and ADAS (advanced driving assistance system). Thanks to these efforts, DX-related
sales have been steadily rising toward the plan goal with an increase to about ¥2.8bn in FY3/20.
DX-related results in the first fiscal year (FY3/20)

Source: Reprinted from the Company’s financial results briefing materials

One of the Company’s DX initiatives is realizing efficient inspections of building deterioration with drones and image
processing AI. The drone takes photos of the building, analyzes crack images with AI through utilization of the
proprietary CrackVision system for AI crack assessment, and presents three-dimensional images of the building anddamage spots. In March 2020, the Company established the Building Inspection Consortium jointly with Building
Inspection Technology Research Inc. and do Co., Ltd. to promote broader use of building inspection and survey
knowhow and proper methods at a larger number of companies using AI solutions and drones and other advanced
technologies.

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18 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

DX initiative example (1)* Building Inspection Technology Research Inc.’s Representative Yoshikazu Oba led the establishment with the Company as a
joint research firm and do Co., Ltd. as the secretariat for consortium operations
The Company is handling development of the AI engine and construction of the cloud system.
Source: Reprinted from the Company’s financial results briefing materials

In August 2019, the Company announced the conclusion of a sales agent contract with US-based RealWear
and launch of smart glasses RealWear as a Platinum Partner (primary agent). Smart glasses add IT capabilities
to eyeglasses that display information on the eyeglasses and present videos beyond eyeglass lenses. RealWear
contains a voice feature too for realization of completely hands-free operation by voice. This product also provides
applications tailored to customers and dramatically enhances efficiency of front-line activities in manufacturing,
construction, and other industries. Amid restrictions on movement due to the COVID-19 outbreak, the Company has
started remote task assistance service for data center operations using RealWear in which staff members conduct
tasks in accordance with instructions given by remote customers. We expect growing utilization of RealWear atmanufacturing and construction sites and in distribution and logistics task assistance following the catalyst from the
COVID-19 outbreak, and the Company indicates that inquiries and requests are already trending upward.

We encourage readers to review our complete legal statement on “Disclaimer” page.

19 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Medium- to long-term growth strategy

DX initiative example (2)Source: Reprinted from the Company’s financial results briefing materials█ Shareholder Returns Policy
Aiming to realize a financial strategy that combines a growthstrategy with financial soundness
The Company aims to realize a financial strategy that supports the growth strategy while sustaining financial
soundness. It wants to maintain a healthy capital level and achieve sustainable growth with ROE at 12% or above.
It also plans to continue making necessary investments in future growth and to invest in R&D, M&A and alliances,personnel training, and other areas. In shareholder return, meanwhile, the Company’s basic policy is paying stable
and continuous dividends that reflect its financial situation and earnings.
Reflecting the strong results in FY3/19, the Company changed the period-end dividend from the interim dividend of¥12.5 to ¥17.5 and thereby increased the annual dividend to ¥30. In FY3/20, it also maintained an interim dividendof ¥15 and a period-end dividend of ¥15 for an annual dividend of ¥30, for a dividend payout ratio of 16.8%. It isaiming to further expand its business scope toward realizing net sales of around ¥50bn, and in this process, it may
require funds for M&A. Therefore, for the time being it would seem to be prioritizing business expansion with an eye
to the future, while aiming to maintain and improve its competitiveness.
For FY3/21, the Company has not finalized earnings guidance yet due to the COVID-19 outbreak and the dividend
is also undecided. It intends to promptly disclose the dividend target once earnings guidance is available.

We encourage readers to review our complete legal statement on “Disclaimer” page.

20 21

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

NIPPON SYSTEMWARE CO., LTD.
9739 Tokyo Stock Exchange First Section

7-Jul.-2020
https://www.nsw.co.jp/english/

Shareholder Returns Policy

Trends in the dividend and the dividend payout ratio
Period-end dividend (left)
Dividend payout ratio (right)(¥)

Interim dividend (left)

（%）

35.0

42.0

3 0 .030.0

3 0 .036.5

3 0 .036.0

2 5 .0
25.0
15.0

12.5

2 0 .0

20.0

30.0
15.0
24.0

10.0
17.5

15.0
10.0

18.0

16.8

10.0
15.0

5.0

18.0

19.5

15.0

17.5

12.0

15.0

6.0

10.0

0.0

0.0

FY3/16

FY3/17

FY3/18

FY3/19FY3/20Note: FY3/16 includes ¥15.0 as a dividend commemorating the Company’s 50th anniversary (¥7.5 interim, ¥7.5 period-end).

Source: Prepared by FISCO from the Company’s summary financial report█ Information Security Policy
Implements measures based on the Information Security Basic Policy
The Company has defined the Information Security Basic Policy to ensure the confidentiality, completeness, andavailability of the information assets that it holds and maintains in the course of conducting its businesses, and tosatisfy the trust placed in it by society. It is working to construct, maintain and improve a more advanced information
security management system.
In conducting its businesses, the Company Group handles a lot of customer data, so it pays close attention todata management. In particular, its datacenters, which accept systems and other assets from many customers,
have acquired ISMS (Information Security Management Systems) certification and conduct highly reliable andsafe operations. In addition, they are continuously implementing a range of measures such as PC encryption,
unauthorized access monitoring, e-learning education for employees, and targeted training drills. Going forward,
the policy is to further strengthen measures to prevent data from leaking out, should an unauthorized access occur.

We encourage readers to review our complete legal statement on “Disclaimer” page.

21 21

Disclaimer
FISCO Ltd. (“FISCO”) offer stock price and index information for use under the approval of theTokyo Stock Exchange, the Osaka Stock Exchange and Nikkei Inc.
This report is provided solely for the purpose of offering information, and is not a solicitationof investment nor any other act or action.
FISCO prepared and published this report based on information which it considered reliable;
however, FISCO does not warrant the accuracy, completeness, fitness nor reliability of thecontents of this report or the said information.
The issuers’ securities, currencies, commodities, securities and other financial instruments
mentioned in this report may increase or decrease in value or lose their value due to influence
from corporate activities, economic policies, world affairs and other factors. This report does
not make any promises regarding any future outcomes. If you use this report or any information
mentioned herein, regardless of the purpose therefor, such use shall be made based on yourjudgment and responsibility, and FISCO shall not be liable for any damage incurred by you asa result of such use, irrespective of the reason.
This report has been prepared at the request of the company subject hereto based on theprovision of information by such company through telephone interviews and the like. However,
the hypotheses, conclusions and all other contents contained herein are based on analysis
by FISCO. The contents of this report are as of the time of the preparation hereof, and are
subject to change without notice. FISCO is not obligated to update this report.
The intellectual property rights, including the copyrights to the main text hereof, the data
and the like, belong to FISCO, and any revision, reprocessing, reproduction, transmission,
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may currently or in the future trade or hold the financial instruments or the securities of issuersthat are mentioned in this report.
Please use the information in this report upon accepting the above points.

◾ For inquiry, please contact: ◾

FISCO Ltd.
5-11-9 Minami Aoyama, Minato-ku, Tokyo, Japan 107-0062
Phone: 03-5774-2443 (Financial information Dept.)
Email: support@fisco.co.jp